Court Approves $2.5B Boy Scouts Sex Abuse Settlement Fund

Final approval of the Boy Scouts sex abuse settlement fund will allow the organization to move out of bankruptcy.

A federal judge has granted approval of a $2.5 billion settlement fund for Boy Scouts of America child sex abuse victims, paving the way for the organization to emerge from bankruptcy protection and resolve tens of thousands of lawsuits.

Over the past few years, tens of thousands of individuals have stepped forward to pursue Boy Scouts sex abuse lawsuits, each raising similar allegations that the organization engaged in decades of covering up credible reports involving problems with volunteers and employees, maintaining a set of records known as the “perversion files” dating back to 1944.

Facing clear signs of massive liability, Boy Scouts of America filed for bankruptcy in 2020, to manage and resolve the mounting litigation, which has become the largest sex abuse case involving a single national organization in U.S. history.

On Thursday, U.S. Bankruptcy Judge Laurie Silverstein, of the U.S. Bankruptcy Court for the District of Delaware, approved plans to create a $2.46 billion victim’s fund negotiated by abuse survivors, the Boy Scouts, insurers and some of the organization’s main backers.

Following the proposal of the settlement agreement in late July, Judge Silverstein had parties rework some parts of the deal, with the biggest change being Judge Silverstein’s refusal to grant the Church of Jesus Christ of Latter-day Saints extensive legal protection from all future lawsuits.

“The Court, having considered the Confirmation of the Plan, finds and determines that all such provisions are consistent with the provisions of the Bankruptcy Code,” Judge Silverstein wrote in a September 8 Supplemental Findings of Fact and Conclusion of Law (PDF).

Silverstein agreed that the Boy Scouts of America would contribute $78 million, its local councils would contribute another $515 million, the United Methodist Church would contribute $30 million, and major insurers will pay $1.65 billion. However, Silverstein rejected a proposed $250 million settlement agreement with LDS, indicating that the money could not be added to the settlement fund because it required a release of all claims against the church; not just those involving the Boy Scouts. The Church will negotiate a new amount for its part of the deal before the agreement is signed.

However, one more federal approval by another judge is needed before the deal is finalized, which is likely to take several months.

9 Comments

  • WilliamOctober 29, 2023 at 9:54 pm

    This is very sad to know this been going on and so many knew but just act like it was okay to be doing to people. Now this is almost at the end each victims shouldn't get no less then 3.2 millions because it's more then enough for all of them, 3.5 m. Should be the least just for the bandaids not their wounds.

  • ByronFebruary 11, 2023 at 1:08 pm

    It happened to me 3 months before my 13th birthday, I feel the same way as other survivors. Haven't been able to sleep, take a deep breath, or stop shaking since this started, 53 years I've had to live with this terrible memory, it did a 180 degree turn on my life, nothing has been the same since, if it wasn't for my strong family and my dad I wouldn't be here right now!

  • EricOctober 29, 2022 at 9:25 pm

    I am not sure if I care about getting paid or not because in my life I never felt joy or happyness over the inosonce taken from me I hate all the monsters with in and outside the scouts I hated my mother and older brother for letting it happen and think something should of happens to the people that sweept it all under the carpet and protected them I also think they all deserve to suffer and a big[Show More]I am not sure if I care about getting paid or not because in my life I never felt joy or happyness over the inosonce taken from me I hate all the monsters with in and outside the scouts I hated my mother and older brother for letting it happen and think something should of happens to the people that sweept it all under the carpet and protected them I also think they all deserve to suffer and a bigger fine should come for all the rest there lives to pay for children weather by scouts or any other abuse to get help and learn there not the problem and it's not something that needs to controlle them I wanted to go to prison as a kid I joined gangs and learned violence as a life style so no one could ever hurt me again it seemed a rational idea to do so and now ive wasted a whole life afraid to love or be loved and most it jailed so my head is now all fucked up and still they're not fully accountable

  • JoeOctober 29, 2022 at 4:40 pm

    I would love the opportunity to put my scars from this bad behind me and my family and see some funds for my bills asap and soon as we can get paid from these creeps.

  • RonOctober 8, 2022 at 2:20 pm

    At 15 yrs old and raped by older scouts. When going for a merit badge for camping! The rape sullied my reputation of being gay in an era when it was unacceptable! It followed me throughout High School and into my 20’s I was thrown out of the Boy Scouts because I was made a joke of. For years I blamed myself. The scout leader threw me out of his house when I complained. They got me drunk with [Show More]At 15 yrs old and raped by older scouts. When going for a merit badge for camping! The rape sullied my reputation of being gay in an era when it was unacceptable! It followed me throughout High School and into my 20’s I was thrown out of the Boy Scouts because I was made a joke of. For years I blamed myself. The scout leader threw me out of his house when I complained. They got me drunk with screw drivers! I was beat up by them and injured my mouth when I fell on a tent peg. I was abandoned left in the woods and covered with blood from my injuries! At at sunrise, walked out of the woods to a nearby lake and washed off the blood and walked home about 3 miles!

  • HunterOctober 6, 2022 at 1:40 am

    I have felt Shane all my life because of the abuse I suffered. I became a drug addict,, molested my brother's daughter, cheated in school and in the business world. Sold militarily secrets to foreign governments, etc. The abuse really messed with my head and now I fear I have become the monster they created. I am glad we will get closure but it will not change what happened or what I have don[Show More]I have felt Shane all my life because of the abuse I suffered. I became a drug addict,, molested my brother's daughter, cheated in school and in the business world. Sold militarily secrets to foreign governments, etc. The abuse really messed with my head and now I fear I have become the monster they created. I am glad we will get closure but it will not change what happened or what I have done because of it

  • MichaelOctober 5, 2022 at 4:50 pm

    Maybe this will buried all the torment this organization has cause all the victims and families I had just accepted the fact that I've been a victim for so many years because I wanted to hide the embrassment of the abuse these past few years I have lost everything in my life over the Truma and mental this bankruptcies proceedings and bringing up the past sexual abuse has triggered issues I had wh[Show More]Maybe this will buried all the torment this organization has cause all the victims and families I had just accepted the fact that I've been a victim for so many years because I wanted to hide the embrassment of the abuse these past few years I have lost everything in my life over the Truma and mental this bankruptcies proceedings and bringing up the past sexual abuse has triggered issues I had when I was abuse my speech has started back not being able to say certain words as when I was kid after the abuse I have bald spots where I have anxiety and pull my hair out like I did when I was child for years I stuggled with alcohol and drug abuse and haven't touch any in almost 3 years I was going through alcohol treatments at age 12 I hope and pray I have the strength to continue without the substance abuse I have lived in 3 sheds since I contacted covid 19 in March 27 2020 and got put on unemployment never to get hired back after working 15 years for my employer and it seems like I'm going down the drain since all this has came back to the surface I have lost my home my car and dignity with no help to survive out on street I feel like everyone looking down on me for the sexually abuse I indured as a child thank everyone for finally coming forward .

  • RonaldOctober 4, 2022 at 11:11 am

    Finally I think we can have some closure over 60 I have carried this shameful insadent it ruined my life no amount of money can restore what I lost may they rest in HELL

  • Abdullah MusaSeptember 22, 2022 at 3:40 pm

    I feel that it's a long time coming, for something this massive to be just now being discovered, and some actions done. I know that nothing can change that time but it will be forever be in our subconscious mind, . I thank all the attorneys for their hard and diligent work.

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