Scouts on the verge of bankruptcy strike deal with largest group of victims
The Boy Scouts of America are on the verge of reaching a settlement with lawyers for victims of sexual abuse, marking a major milestone in the youth group’s efforts to end the largest bankruptcy case on record for child abuse, people familiar with the matter said.
The Boy Scouts are set to agree on a victim compensation framework with a coalition of victim law firms that represent the bulk of the 84,000 men who have filed sexual abuse complaints in the United States. screening programs, people familiar with the matter said. Details are still being worked out and there is no guarantee that a final settlement will materialize, they said.
A deal with the coalition of law firms would mark a breakthrough for the Boy Scouts after an expensive 16 months under legal protection. Any proposed settlement will still be subject to a vote of the survivors and requires the approval of the bankruptcy court to take effect.
The Boy Scouts filed for bankruptcy in February 2020, hoping to resolve a wave of civil litigation brought by victims after several states suspended sexual abuse statutes of limitations, allowing survivors to sue, regardless of when the misconduct occurred.
The tentative deal follows months of closed-door negotiations that also involve an official victims committee and hundreds of affiliated local councils across the country. The Boy Scouts have agreed to pay around $ 250 million in cash and other assets under the Chapter 11 proposal, which also includes at least $ 500 million from local councils, people familiar with the matter said.