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The ruling enabled the Boy Scouts, who were hit by a large number of lawsuits last year, to advance the proposed reorganization plan.

The Boy Scouts of America can reach a key agreement worth $850 million to resolve thousands of child sexual abuse claims, and it has been approved by the U.S. Bankruptcy Court.

Delaware Judge Laurie Selber Silverstein’s ruling on Thursday will enable the Boy Scouts to move forward Proposed reorganization plan This will enable the group to withdraw from bankruptcy proceedings before the end of the year.

The Boy Scouts was founded in 1910 and filed for Chapter 11 bankruptcy protection in February 2020 after encountering a large number of sexual abuse lawsuits.

After three days of testimony and debate, the judge approved BSA’s request to reach an agreement involving 250 local boy scout committees and lawyers representing 70,000 men who said they were sexually abused when they were young.

The agreement requires the Boy Scouts and local councils to donate US$850 million to a fund Abuse the claimant.

The agreement was opposed by insurance companies that issued policies to Boy Scouts and local councils, lawyers representing thousands of other abuse victims, and various church denominations sponsoring local Boy Scout troops.

As many as 90,000 boys have been sexually abused in the Boy Scouts and are now seeking compensation [File: Jonathan Alcorn/Reuters]

The judge refused to approve the request to allow the Boy Scouts to pay millions of dollars in legal fees and the fees of lawyers hired by law firms that represent tens of thousands of abuse claimants.

Silverstein rejected BSA’s request to withdraw from the April agreement under the agreement, in which the insurance company The Hartford will pay US$650 million to the abuse claimant fund in exchange for exemption from any further liability.

According to the agreement, the Boy Scouts will donate up to $250 million in cash and property to the Child Sexual Abuse Victims Fund. The local council responsible for the daily operations of the Boy Scouts will donate 600 million U.S. dollars.

In addition, national organizations and local councils will transfer their rights to the Boy Scout insurance policy to the Victims Fund. In return, they will be relieved of future liability for abuse of claims.

The judge rejected two controversial clauses in the agreement emphasized by opponents.

Unless the Boy Scouts reach a settlement with the insurance company, they are likely to continue to fight for the ultimate bankruptcy plan.



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