U.S. Trustee Questions Proposed Boy Scout Sex Abuse Settlement

The trustee expressed concerns about a $20,000 fee for victims who suffered the must severe incidents of Boy Scout sexual abuse to be able to pursue an increased payout

A federal bankruptcy watchdog has raised concerns about a proposed Boy Scouts sexual abuse settlement agreement, which is struggling to gain support from plaintiffs, calling a plan that lets victims of the most severe abuse pursue more money a costly illusion.

U.S. Trustee Andrew Vara, who is part of a Department of Justice program designed to protect the integrity of the bankruptcy system, is raising new misgivings about a proposed $2.7 billion settlement agreement, which has been proposed to resolve thousands of claims involving sexual abuse by Boy Scouts employees and volunteers, which sent the famed organization into Chapter 11 bankruptcy proceedings.

In recent years, decades of claims have emerged that highlighted persistent abuse and coverups within the organization, leading to tens of thousands of lawsuits against the Boys Scouts of America. Each of the complaints raise similar allegations that the organization covered 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.

Late last year, the organization put forward the $2.7 billion settlement agreement, after getting several insurers to sign on. However, many plaintiffs have refused to agree to the plan, with only about 73% indicating they thought the settlement was fair. The Boy Scouts had hoped for at least 75%.

In advance of a hearing held on February 22, a committee representing the victims dropped its objections to the settlement, when the Boy Scouts agreed to add new child-protection procedures to prevent future abuse. In addition, the organization added an option for victims of the most severe cases of abuse to pursue a larger payout.

However, Vara, who has raised questions about the settlement for some time, is doubtful of the new measures, according to a report published last week by Reuters.

The U.S. Trustee reportedly called the option for higher payouts “illusory”, noting that it would cost victims $20,000 to pursue with no guarantee of success. Vara described the fee as excessive, and questioned how it was calculated.

Even before then, Vara filed an official objection over settlement deal on February 7, indicating the plan includes non-consensual third-party releases of information, which Vara says violates Due Process. He has also attacked the agreement on a number of other technical issues.

Another vote on the settlement is slated for March 7, after which U.S. Bankruptcy Judge Laurie Selber Silverstein has scheduled a hearing on March 14.

Any settlement agreements must be approved by Judge Silverstein, and are required in order to get the Boy Scouts of America out of Chapter 11 bankruptcy proceedings.

8 Comments

  • MichaelJuly 25, 2022 at 6:05 pm

    Just a thought now that the Judge can't seem to make a decision. The Lawyers have already taken a Billion Dollars out of the fund. One firm is reported to br billing $2300 an hour. I'm reminded of a saying: "Some of the things the Lawyer tells you will be good for you. All of the things the Lawyer tells you will be good for the Lawyer." These guys are milking this dry and then expect 40% of [Show More]Just a thought now that the Judge can't seem to make a decision. The Lawyers have already taken a Billion Dollars out of the fund. One firm is reported to br billing $2300 an hour. I'm reminded of a saying: "Some of the things the Lawyer tells you will be good for you. All of the things the Lawyer tells you will be good for the Lawyer." These guys are milking this dry and then expect 40% of what each survivor receives as their fair share. Justice, My A-s. I will probably be under the lawn before any compensation is paid. Good Luck Guys!

  • AndrewJuly 17, 2022 at 12:24 pm

    This is crazy,now because what fucked up people did to us, I'm going crazy over it,these sorry no good for nothing mother fuc___s, definitely need what coming to them, I wish you all well, because I will never be the same or anything else because of this,I cry every night until I go to sleep.

  • RobertMay 27, 2022 at 7:36 pm

    I was abused the first 6 months in the BSA when I was 11 years old by a 21 year old leader's son volunteer and then by two Boyscouts age 14 and 12 I should of kept my GD mouth shut like I was told too in 1964 or they would kill me. Well I've have been as good as dead since 1964 My wife and her whole extended family now knows why I rejected her for 18 years and never sleep together,I've never sa[Show More]I was abused the first 6 months in the BSA when I was 11 years old by a 21 year old leader's son volunteer and then by two Boyscouts age 14 and 12 I should of kept my GD mouth shut like I was told too in 1964 or they would kill me. Well I've have been as good as dead since 1964 My wife and her whole extended family now knows why I rejected her for 18 years and never sleep together,I've never said the words Good Night ever. And I told her before when we met if she wants children I' am not the person for her. She and her family hate my guts to this day ! Even more since 2021 After telling her about what happen to me, as they say They know everything ! Lawyer's said I will get $2,250 That's about $330 in 1964 . Just like my whole life and this Bull shite Lawsuit. It's a total Shite Show

  • CharlesApril 3, 2022 at 9:36 am

    So, after the abuse we suffered, that we continue to suffer, we now are told that in order to receive the justice we deserve we now must shell out twenty grand to the very organization which allowed our abusers to rape us? And the so-called advocate group which was appointed to speak for us has approved this travesty? This kind of bullsh!t is what causes people to go "postal". Might as well fuck[Show More]So, after the abuse we suffered, that we continue to suffer, we now are told that in order to receive the justice we deserve we now must shell out twenty grand to the very organization which allowed our abusers to rape us? And the so-called advocate group which was appointed to speak for us has approved this travesty? This kind of bullsh!t is what causes people to go "postal". Might as well fuck me again! And again and again. The abuse from this organization never stops! Why does this country still allow this? Oh, wait. We are males, we don't matter. We are lower than shit on a road. Thanks BSA for putting us all back in our place. And people wonder why suicide in men is up.....

  • EzeeMarch 31, 2022 at 4:35 pm

    Actually us as vitcims are getting the rough end of the deal because no one endured the pain we went through and going through at the end of the day the lawyers are the ones that's winning on both ends they are in a win win situation all the way around because they are wanting 40% of what us victims are getting and still getting paid also

  • KevinMarch 26, 2022 at 5:53 pm

    I think the TCC, and other lawyers have sold all survivors out! I pray the judge rejects this new plan.

  • BMarch 23, 2022 at 12:17 pm

    I agree with you. I have no illusions of this actually making its way to those of us who were abused. My expectations are extremely low.

  • MichaelMarch 18, 2022 at 4:30 pm

    I've just had two surgeries to remove cancer. I'm 74 and am wondering if I will live long enough to see an equitable amount of compensation. I was affected for many years, and now the nightmares are back. Please make and end to this so it can be put behind us. I don't blame the Boy Scouts for what happened, but it DID Happen. Right now with all these delays the Lawyers involved are sucking th[Show More]I've just had two surgeries to remove cancer. I'm 74 and am wondering if I will live long enough to see an equitable amount of compensation. I was affected for many years, and now the nightmares are back. Please make and end to this so it can be put behind us. I don't blame the Boy Scouts for what happened, but it DID Happen. Right now with all these delays the Lawyers involved are sucking the coffers dry. Survivors like me will no doubt see very little, if anything.

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