Boy Scouts hoping to reach bankruptcy deal with sex-abuse victims this summer – New York Post

The Boy Scouts of America said Friday its hoping to reach a settlement this summer with lawyers representing the bulk of the 84,000 sexual abuse victims who stepped forward to file claims against the organization.

Overnight, the Boy Scouts filed a new proposal with the bankruptcy court in Wilmington, Delaware.

Under the proposal, the Boy Scouts would pay $250 million in cash, property, and other assets to fund a trust for survivors, while local councils would contribute at least $500 million to the trust, with at least $300 million of that in cash.

Both the national organization and the local councils, which are not themselves in bankruptcy, would also contribute their insurance rights to the trust.

In return, the local councils would be protected from any other allegations, the Boy Scouts said in a statement.

A spokesperson for the Boy Scouts told The Post that it hopes the deal will be confirmed this summer and clear the 111-year-old organization to emerge from bankruptcy this fall.

But any proposed settlement is subject to a vote by survivors and requires approval by the bankruptcy court to take effect.

The spokesperson for the Boy Scouts said the latest proposal is the result of intensive mediation with all stakeholders involved in our Chapter 11 case, including the Coalition of Abused Scouts for Justice, which represents a large majority of claimants and other groups.

Lawyers who represent the Coalition of Abused Scouts for Justice declined to comment. And representatives for another group of victims, the Tort Claimants Committee, did not return The Posts request for comment.

The new proposal comes after the Wall Street Journal reported that the Boy Scouts and the lawyers representing most of the victims are close to agreeing to a victim compensation framework.

This amended Plan marks a significant step toward a global resolution of past abuse claims. It incorporates a number of updates following constructive mediation, which we believe will garner significant support for confirmation, the spokesperson for the Boy Scouts said. Importantly, the BSA is hopeful that this Plan, or one very similar to it, will have the support of a supermajority of survivors.

A deal would clear a path out of bankruptcy for the Boy Scouts, which filed for bankruptcy protection in February 2020 amid mounting legal costs from defending itself against lawsuits alleging sexual abuse of boys.

Its the largest bankruptcy case ever filed over childhood abuse, and dwarfs the number of claims made against other organizations, including the Catholic Church.

Reports of sexual misconduct by employees and volunteers have plagued the Boy Scouts for years, but it wasnt until last year that the scope of the allegations became clear in court.

After learning of allegations in Michigan, state Attorney General Dana Nessel announced the first statewide criminal investigation into the Boy Scouts earlier this month.

Even if the Boy Scouts reach a civil settlement with lawyers representing the abuse victims, the organization could face more criminal probes from other states that follow Michigans lead, some legal experts have said.

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Boy Scouts hoping to reach bankruptcy deal with sex-abuse victims this summer - New York Post