Boy Scouts Dodge Bankruptcy With $2.46B Settlement
Some abuse victims and insurers continued to oppose the settlement, and a group of insurers has said they are likely to appeal.
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The Boy Scouts of America secured approval of a $2.46 billion reorganization plan from a bankruptcy judge on Thursday that will allow the youth organization to exit Chapter 11 and settle decades of claims by more than 80,000 men who say they were abused as children by troop leaders, reports The Guardian. The biggest change in the amended plan was the removal of a $250 millon settlement payment from the Church of Jesus Christ of Latter-day Saints. The reorganization will allow the Boy Scouts to continue its scouting mission free from the threat of costly litigation.
The Boy Scouts lined up support for the settlement plan from 86 percent of claimants who voted on it and from its two largest insurers. Some abuse victims and insurers continued to oppose the settlement, and a group of insurers has said they are likely to appeal. The money individual abuse survivors stand to gain from the bankruptcy plan ranges from $3,500 to $2.7 million, depending on the severity of the alleged abuse, where and when it occurred, and other factors.
