Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Boy Scouts set to exit bankruptcy after $2.46 billion U.S. sex abuse settlement approved

Stock Markets Sep 08, 2022 12:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Dietrich Knauth

(Reuters) - 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.

U.S. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Delaware signed off on the restructuring plan after the Boy Scouts made changes to address portions of a previous settlement proposal she had rejected.

The biggest change in the amended plan was the removal of a $250 million settlement payment from the Church of Jesus Christ of Latter-day Saints, which Silverstein refused to approve.

Silverstein said that part of that settlement proposal went too far in attempting to protect the Mormon church from abuse claims that were only loosely connected to scouting activities.

The Irving, Texas-based organization, has said the reorganization will allow it to continue its scouting mission free from the threat of costly litigation.

"Today's order means abuse survivors will get the compensation they deserve and millions of youth will benefit from scouting for years to come," said Richard Mason, an attorney representing local Boy Scouts councils that contributed to the settlement.

The Coalition of Abused Scouts for Justice, which represents the majority of abuse claimants in the case, said the bankruptcy ruling would set up the largest sexual abuse settlement fund in history.

Coalition attorney Anne Andrews said she was "overjoyed for survivors.... They wanted Boy Scouts to survive, and they wanted to ensure this never happened to another child."

The Boy Scouts said it was "enormously grateful" to abuse survivors who helped craft the settlement.

The Boy Scouts filed for bankruptcy in February 2020 after being hit by a flood of sexual abuse lawsuits as several U.S. states passed laws allowing accusers to sue over allegations dating back decades.

Those claimants became creditors of the organization, who had to sign off on any plans to restructure and exit bankruptcy.

The Boy Scouts lined up support for the settlement plan from 86% 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 appeals must be addressed in order for the Scouts to emerge from bankruptcy.

The Boy Scouts organization said it will work to resolve the appeals in federal district court to complete the settlement.

The amount of 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.

The money for the settlement comes from the Boy Scouts, local councils, insurers and organizations that have chartered Scouting units and activities, including churches.

Lawyers had warned the 112-year-old organization might not survive without a wide-ranging settlement of abuse litigation. Silverstein voiced concern earlier in the bankruptcy that the litigation had "the potential to end the Boy Scouts as it currently exists."

The organization has apologized and said the organization is committed to fulfilling their "social and moral responsibility to equitably compensate survivors."

Boy Scouts set to exit bankruptcy after $2.46 billion U.S. sex abuse settlement approved

Related Articles

Iranian fans savour victory but wrangle over protests
Iranian fans savour victory but wrangle over protests By Reuters - Nov 25, 2022

By Martin Petty, Maya Gebeily and Charlotte Bruneau AL RAYYAN, Qatar (Reuters) - Iran's national soccer team sang during the playing of their national anthem at their second World...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Phil Ht
Phil Ht Sep 20, 2022 5:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Should always screen out queers and pervs. They create trouble wherever they go.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email