The Big Picture:
- The Boy Scouts of America (BSA) filed for Chapter 11 bankruptcy in February 2020 to shield itself from a massive wave of sexual abuse lawsuits filed by former Scouts.
- The bankruptcy plan, approved in March 2023, established a $2.46 billion trust to compensate survivors of abuse.
- The plan also creates a new, non-profit BSA with stricter youth protection measures and limited liability for future abuse claims.
Recent Developments:
- Payouts begin: The Scouting Settlement Trust began making its first payments to survivors on November 19, 2023.
- Lawsuit challenges: Some opponents of the bankruptcy plan continue to fight it in court, arguing that it unfairly shields local scouting councils and insurers from liability.
- Lawyer fees debate: A judge recently ruled that the trust does not have to pay $21 million in legal fees requested by the coalition of attorneys who represented survivors in the bankruptcy case.
What’s Next:
- The legal challenges to the bankruptcy plan could delay the distribution of compensation to some survivors.
- The new BSA will begin operating under the terms of the bankruptcy plan, with a focus on preventing future abuse and ensuring the organization’s financial sustainability.
- Survivors who have not yet filed claims with the trust have until April 2024 to do so.
