Boy scout hat and child's hat

Boy Scouts of America Propose $850 Million Bankruptcy Settlement to Victims of Sexual Abuse

When the Boy Scouts of America filed for Chapter 11 Bankruptcy in February of 2020, they sought to manage the fallout from the 275 lawsuits and 1,400 claims of abuse that the not-for-profit organization faced. Now, there are more than 84,000 claims of abuse within the organization, making it the largest ever child sexual abuse case against a single national organization.

Throughout the bankruptcy process, the Boy Scouts of America’s proposed settlement offers have increased from the disgraceful sum of $300 million to the currently proposed initial settlement of $850 million, which would be the largest settlement of sexual abuse claims in United States history. This historic settlement seeks to compensate survivors for the organization’s historic failure to protect children in their care. The Boy Scouts of America are expected to pay $250 million with the organization’s local councils paying at least $600 million.

Speaking with USA Today, Paul Mones noted that with insurance contributions he expects the amount of the settlement to grow to over $1 billion. Mones remarked on the historic settlement offer, “There was never going to be an agreement that any survivor would be happy about. What we attempted to do in this negotiation was, under the circumstances, and with all of the various competing interests, the best deal possible.”

When divided among expected eligible victims, the proposed initial settlement offers approximately $10,000 to each claimant. In addition to settlement money, the Boy Scouts of America agreed to give the Settlement Trust access to all records related to abuse, as well as offering insurance rights, and protective measures in current programming within the organization. Victims will be able to seek compensation from insurers and former insurers of the organization and local councils.

The next step in this process is for the victims who filed claims to vote on the settlement. Mones believes they will accept this offer.