Decades of Sex Abuse Will Cost Boy Scouts $850M

U.S. Bankruptcy Judge Laurie Selber Silverstein approved the Boy Scout of America’s request to sign off on an $850 million settlement to resolve tens of thousands of sex abuse claims, reports Reuters. The ruling enables the Boy Scouts to move ahead with a proposed reorganization plan that would allow the group to exit bankruptcy by the end of the year. The organization must still obtain approval from creditors to move ahead with the deal in a formal plan to exit bankruptcy. The creditors include victims of the abuse, who generally supported the settlement.

The Boy Scouts filed for Chapter 11 bankruptcy protection in February 2020 after being hit with a flood of sexual abuse lawsuits. The settlement is backed by 250 local councils but opposed by insurers, who say representatives of the abuse claimants had too much say in the negotiations. The Boy Scouts’ insurers, which include Century Indemnity Company and Hartford Financial Services Group, had argued throughout the bankruptcy process that some claims may be fraudulent. Unless the Boy Scouts reach a resolution with the insurers, they are likely to fight over the final bankruptcy plan. In addition to the $850 million, the settlement includes the creation of a “child protection committee” designed to ensure safety for Scouts in future. About 82,000 sex abuse claims have been filed against the Boy Scouts.