As many as 82,500 adult men who were once minors in Boy Scouts are poised to receive at least $2.4 billion in the largest ever sex abuse civil settlement, though questions over the final amount remain after a ruling in Delaware’s bankruptcy court.
U.S. Bankruptcy Judge Laurie Selber Silverstein released a 281-page ruling Friday finding Boy Scouts of America, which filed for Chapter 11 bankruptcy in 2020, is likely liable for abuse claims between $2.4 billion and $3.6 billion. Silverstein’s decision approves settlements for initial funding of nearly $2.3 billion to survivors.
However, the Wilmington-based judge said she could not approve all aspects of the plan at this time, writing she could not approve a $250 million settlement between BSA and the Church of Jesus Christ of Latter-day Saints. She also could not make determinations related to Boy Scouts of America’s insurance coverage, according to court records.
More than 50,000 alleged victims voted on the proposed settlement earlier this year, and claimants may receive anywhere from $3,500 to $2.7 million for more severe cases.
A breakdown of the proposed settlement shows that insurance companies would be responsible for more than $1.6 billion of the total cost. Meanwhile, BSA would contribute less than 10% of the proposed settlement and would put up property valued at $80 million, an additional $80 million promissory note, and around $20 million in cash.
The Mormon church would cover $250 million, while the United Methodist Church plans to contribute $30 million. Just last month, North Alabama Methodists agreed to pay $448,216 as part of the church’s total contribution.
BSA has already spent more than $327 million in fees and expenses following its February 2020 bankruptcy, which followed several states changing laws that allowed victims to sue over decades-old allegations.
Attorneys for the claimants said the judge’s decision on Friday would help protect future scouts, a point also underscored by the Coalition of Abused Scouts for Justice.
“The most important thing to them has been ensuring the safety of current and future scouts,” the coalition wrote in a statement, arguing that “it’s not only about the money … because no amount of money in the world will make up for being sexually abused as a child.”
Ricky Mason, who serves as a lawyer for local Boy Scouts councils in the case, lauded the judge’s decision to uphold “the importance of both bringing closure to survivors and preserving the Scouting mission through the global settlement,” despite outstanding questions about the current settlement plan.
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The Boy Scouts organization called the judge’s ruling a “significant milestone” for the case in a statement.
“We are committed to working with all constituents to make the necessary changes required by the ruling to drive this process forward and we remain optimistic about securing approval of a final Plan as soon as possible,” the Boy Scouts of America said.
