Judge Approves $2.46 Billion Boy Scouts Reorganization Plan Amid Abuse Claims

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Judge Approves $2.46 Billion Boy Scouts Reorganization Plan Amid Abuse Claims
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More than 80,000 men have filed claims saying they were abused as children by troop leaders around the country.

Anderson said the settlement has drawn mixed reactions from his clients. Many are proud they stood up and demanded a cleanup of the Irving, Texas-based Boy Scouts, while others feel like they were dismissed because the organization “hid behind the statute of limitations” in some states.

The Boy Scouts said the perspectives and priorities of the survivors ”will be ingrained in the BSA's programming moving forward." The BSA also said that because certain parties have said they plan to appeal the order, the organization will next begin an appeal process in order to emerge from Chapter 11, “which will allow survivors to be equitably compensated and preserve the mission of Scouting for future generations.”When it filed for bankruptcy, the BSA faced about 275 filed lawsuits and was aware of numerous other potential cases. More than 80,000 abuse claims were eventually filed as part of the bankruptcy.

Attorneys for BSA insurers argued early on that the sheer volume of claims was an indication of fraud and the result of aggressive client solicitation by attorneys and for-profit claims aggregators. While some of those insurers later negotiated settlements, other insurers continued to oppose the plan. They argued that the procedures for distributing funds from the compensation trust would violate their contractual rights to contest claims and set a dangerous precedent for mass litigation.

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