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Environment
Marie T. Reilly, Professor of Law, Penn State

Boy Scouts of America can now create $2.4 billion fund to pay claims for Scouts who survived abuse – a bankruptcy expert explains what's next

The alleged sexual abuse that led to this settlement occurred from 1944 through 2016. Newsday LLC via Getty Images

On April 19, 2023, the Boy Scouts of America declared that it has exited its bankruptcy case after clearing one of the last legal hurdles in its way. Some insurance companies and sex abuse claimants objected to the Boy Scouts’ plan to pay claimants, but the 3rd U.S. Circuit Court of Appeals held that the plan can go ahead anyway while the insurers’ appeal is pending. It’s now possible to begin the process of paying at least US$2.45 billion to resolve about 82,000 claims against the Boy Scouts and affiliated entities asserted by people who allege that they were sexually abused as children over the past 80 years.

The Boy Scouts operate through the national organization known as the BSA, which includes hundreds of separate but affiliated organizations known as local councils, and faith-based or civic groups called chartered organizations. Because these troop-sponsoring nonprofit organizations across the country are responsible for ensuring the safety of children in scouting, all of them faced child sexual abuse claims.

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