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Tort claimants’ committee rejects Boy Scouts’ reorganization plan
Chicago, Sept. 30 – While the Boy Scouts of America’s disclosure statement has been approved by representatives of 60,000 abuse survivors, the tort claimants’ committee has rejected the modified fifth plan of reorganization, the group announced in a press release on Thursday evening.
The committee asserts that the settlements with Hartford Insurance Co., the Church of Jesus Christ of Latter-day Saints and Boy Scouts local councils are “far too low.”
The group has filed a letter with the court urging survivors to vote “no” on the plan.
The committee lays out what it sees as three major flaws in the plan.
First, the plan estimates the total value of the abuse claims to be between $2.4 billion and $7 billion. The committee thinks that estimate is low and that the abuse claims should be valued at closer to $25 billion.
Further, the settlement with the Church of Jesus Christ of Latter-day Saints for $250 million only goes to survivors with claims against the church. Yet, that $250 million figure is being included in the total settlement figure, even though none of the settlement money will go to all of the survivors, only one subgroup of survivors.
Third, the $787 million settlement with Hartford Insurance Co. does not reflect the annual premiums that were paid to the insurance company to cover sexual abuse claims by BSA and local councils. The insurance company is only paying a small fraction of what it contractually obligated to provide. The settlement amount results in an average payment to each survivor of less than $9,600.
Boy Scouts of America is based in Irving, Tex. It filed bankruptcy on Feb. 17, 2020 under Chapter 11 case number 20-10343.
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