Boy Scouts Abuse Victims Push for New Payout as Vote Falls Short

(Bloomberg) -- Groups representing people abused as Boy Scouts vowed to push for higher compensation from the youth organization after a nearly $2.7 billion payout plan fell short of votes needed to ease court approval.

Under voting results released late Tuesday night, about 73% of direct abuse victims voted in favor of the payout plan, just shy of the 75% that would have made it easier for the group to win bankruptcy court approval.

The official committee of victims “is laser focused on improving the plan to ensure that survivors get the fair and equitable treatment they deserve,” said Doug Kennedy, co-chair of the panel that represents victims in the Boy Scouts bankruptcy.

Law firms representing abuse victims have been fighting each other for months over whether to support the Boy Scouts' proposal, which is funded by insurance companies, local scouting groups and others. 

The Boy Scouts, based in Irving, Texas, filed bankruptcy in 2020 in order to resolve all current and future abuse lawsuits by setting up a victims' trust; since then the youth organization has been negotiating with insurance companies, local scouting councils and lawyers for different victim groups.

The youth group has been in court-ordered mediation trying to increase support for the victim fund.

“We are encouraged by these preliminary results and are actively engaging key parties in our case with the hope of reaching additional agreements, which could potentially garner further support for the Plan before confirmation,” the organization said in a statement Wednesday.

In the coming weeks, U.S. Bankruptcy Judge Laurie Silverstein is scheduled to consider approving the plan; under federal law she must take victim votes into account.

The case is Boy Scouts of America, 20-10343, U.S. Bankruptcy Court, District of Delaware (Wilmington)

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