A bankruptcy judge on Thursday approved a $2.46 billion reorganization plan proposed by the Boy Scouts of America, which would allow it to keep operating while compensating tens of thousands of men who say they were sexually abused as children while involved in Scouting.
Though legal hurdles remain, the ruling by Judge Laurie Selber Silverstein in Delaware marked an important milestone for the BSA, which sought bankruptcy protection more than two years ago to stave off a flood of lawsuits alleging child sexual abuse by Scout leaders and volunteers.
Lawyers for some of the victims said the amount an individual survivor may receive from the bankruptcy plan depends on multiple factors relating to the alleged abuse. The plan calls for the BSA and its local councils, along with settling insurance companies and troop sponsoring organizations, including Catholic institutions and parishes, to contribute to a fund for survivors. In return, those groups would be shielded from future lawsuits over Scout-related abuse allegations.
More than 80,000 men have filed claims saying they were abused as children by troop leaders around the country.
“Credit to the courageous survivors that this breakthrough in child and scouting safety has been achieved,” said attorney Jeff Anderson, whose firm represented more than 800 Boy Scout abuse survivors.