Boy Scouts’ Bankruptcy Plan Gets Support of 86% of Abuse Victims

The Boy Scouts of America’s $2.7 billion bankruptcy settlement plan has gained the support of 86% of voting sex abuse claimants just days before a trial to consider plan approval is set to begin.

The plan—the largest sex abuse settlement in U.S. history—received the backing of about 9,000 more people than at a preliminary tally in January, according to a report filed Thursday in the U.S. Bankruptcy Court for the District of Delaware.

Of the 56,536 accepted votes, 48,463 are in favor of the deal, according to professionals the Boy Scouts hired to oversee the vote solicitation and tabulation process.

The latest tally indicates that an additional 4,000 votes were accepted since the preliminary results were released. Thousands of claimants that previously voted to reject the plan also appear to have switched their votes following a watershed agreement in February between the Boy Scouts and the official committee representing abuse victims.

Support for the plan now eclipses a 75% approval mark that the nonprofit had targeted to overcome pushback in court. The threshold usually applies in bankruptcies related to asbestos exposure liability.

The plan features controversial litigation releases for contributors like certain insurers, the Boy Scouts’ nationwide network of local councils, and scouting activity sponsors such as the Church of Jesus Christ of Latter-Day Saints.

“Our hope is that the confirmation of the BSA’s Plan will bring this financial restructuring process to an end, providing survivors with equitable compensation, and the closure they deserve while preserving the mission of Scouting for young people for years to come,” BSA National Chair Dan Ownby said in a statement Friday.

BSA aims to emerge from two years of bankruptcy proceedings that have threatened the organization’s viability and cost well over $100 million.

The proposed deal still faces opposition from thousands of claimants, a subset of insurance providers, and the U.S. Trustee, the Justice Department’s bankruptcy watchdog. A trial on plan confirmation is scheduled to start March 14.

The case is In re Boy Scouts of America, Bankr. D. Del., No. 20-10343, report filed 3/10/22.