Thousands of people who alleged they were victims of sexual abuse while serving as scouts and who filed a lawsuit against the Boy Scouts of America have reached an $850 million settlement. It is the largest amount in a child sexual abuse case in US history. Over 84,000 people are part of the lawsuit against the 110-year-old organization.
This is a significant step toward addressing a cascade of accusations that sent the organization into bankruptcy. In a filing with the United States Bankruptcy Court in Delaware on Thursday, according to the Boy Scouts (BSA), the settlement with the Coalition of Abused Scouts for Justice and two other groups cover claims by an estimated 60,000 sexual abuse survivors.
The Proposal in the Filing
The proposal gains support from representatives for the victims and proffers a framework for a worldwide resolution of abuse allegations. According to groups representing sexual abuse victims in a joint statement, the accord, which necessitates court approval, reaches consensus among large numbers of claimants, over 250 local councils, and the Boy Scouts, reported Channel News Asia.
The 111-year-old nonprofit organization said in a statement, "Bringing these groups together marks a significant milestone... as the BSA works toward our dual imperatives of equitably compensating survivors of abuse and preserving the mission of scouting," reported US News.
In February last year, the Boy Scouts filed for bankruptcy following mounting legal costs amid multiple sexual abuse lawsuits. In November 2020, ahead of the organization's bankruptcy case's deadline, 90,000 sexual abuse allegations were submitted against the organization, reported Axios.
The organization offered the cash and other assets to victims and is signing over insurance rights to a trust that would disseminate payments and would administer allegations, according to an agreement filed in bankruptcy court on Thursday. The proposed deal affirms they have the overwhelming support of victims to emerge from bankruptcy, as indicated in its statement.
The organization, founded in 1910, filed for Chapter 11 protection from creditors in February last year upon being inundated by sexual abuse claims. The filing arrived following numerous states removing legal hurdles that barred people from suing due to sexual abuses they alleged decades ago.
Ken Rothweiler, a lawyer in Eisenberg Rothweiler in Philadelphia who represents the largest group of claimants -- of over 16,800 people -- remarked that this settlement is a beginning. The insurance rights for the previous four decades will be put into a trust that the survivor's group will manage and that could amount to billions more for the survivors.
Thursday's settlement necessitates a judge's approval. It could face opposition from insurers that would be on the hook for payouts.
In a court filing, affiliates of Chubb Ltd, American International Group Inc (AIG.N), Travelers Cos (TRV.N), and other insurers stated the Boy Scouts removed them from dealings and gave survivors' lawyers too much of a say in developing a settlement.
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