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Boy Scouts of America’s Proposed Bankruptcy Reorganization Plan a Disappointment to Sex Abuse Survivors

Mar 3, 2021 | Firm News

The Boy Scouts of America bankruptcy reorganization plan, filed on Monday, March 1st details how the organization will settle tens of thousands of sex-abuse claims. While it’s unclear exactly how much Boy Scouts of America will pay, the proposed trust is estimated to be approximately $220 million with an additional $300 million coming from local councils. Putting that figure into perspective, USA Today estimates the organization’s net value could exceed $3.7 billion. PCVA partner Jason Amala expressed shock with the low-ball number the organization put forward. “I hope that this, at least, illustrates to people that [Boy Scouts] are not acting in good faith,” Amala said in an interview with USA Today.

In a Los Angeles Times article, PCVA partner Michael Pfau further explained the proposed plan would require claimants to vacate their rights to sue. “It appears very clear the Boy Scouts are trying to conceal the fact that these councils are not paying a fair amount, and worse, they are trying to force abuse survivors to give up their claims for close to nothing,” he said.

Pfau who represents about 1,000 survivors believes the reorganization plan will not be well-received by tort creditors and advocates for survivors. “It’s clearly them trying to ramp up a plan where they literally feel no pain and move beyond this quickly, leaving the abuse survivors in the dust,” he said in an interview with the Washington Post.

While the Boy Scouts want to emerge from bankruptcy as quickly as possible or risk running out of cash to continue operating, this plan may be too little, too late.

Additional media coverage on the Boy Scouts of America’s bankruptcy plan and claims to abuse survivors.

The Seattle Times, “Seattle lawyers rail against Boy Scouts’ bankruptcy plan to resolve sex abuse claims as unacceptable

New York Post, “Boy Scouts reportedly offer abuse victims $6K each in bankruptcy plan

CNN, “Boy Scouts plan fund with at least $300 million for sex abuse victims, court documents show

The Guardian, “Boy Scouts will sell Norman Rockwell paintings to fund sexual abuse claim payments

WRCB TV, “Boy Scouts plan fund with at least $300 million for sex abuse victims, court documents show

NPR (WBUR Boston), “Boy Scout Bankruptcy Represents ‘Day Of Reckoning’ For Organization, Lawyer Says