Boy Scouts of America Proposed Bankruptcy Plan is Rejected

January, 05, 2022

The Boy Scouts of America faced a setback today in its bid to emerge from bankruptcy amid tens of thousands of claims of sex abuse against the organization.

The vote, which required 75% of those who voted for the plan to vote to pass it, failed by a small margin when only approximately 73% of the claimants voted to approve the plan.

There has been a start contentious divide concerning the adequacy of the plan between the Torts Claimants Committee, a group of sex abuse survivors appointed by the Court to represent the interests of the abuse survivors, and a group of lawyers self-named The Coalition of Abused Scouts for Justice.  The Coalition, as it is referred to, is made up of a group of attorneys who claim to represent about 63,000 former scouts.  The Coalition has been instrumental in negotiating a settlement thus far, but the Torts Claimants Committee argues the proposed $2.7 Billion Dollar settlement is not nearly enough to compensate the 82,000 claimants who filed claims against the Boy Scouts of America.

The Court will weigh in on the vote and on the Plan at a confirmation hearing set for February 22, 2022.