Boy Scouts of America Bankruptcy Asylum Seekers Committee rejects proposed settlements


LOS ANGELES, September 15, 2021 / PRNewswire / – Enabled September 14, 2021, the Official Tort Claimants’ Committee (TCC) in the Chapter 11 bankruptcy of the Boy Scouts of America (BSA) announced that it did not support the BSA’s proposed settlements with Hartford Insurance Company ($ 787 million) or The Church of Jesus Christ of Latter-day Saints ($ 250 million). The TCC, represented by Pachulski Stang Ziehl & Jones LLP (PSZJ), considers the regulations extremely unfair for the 82,500 survivors who were sexually abused as children. The TCC has been appointed by the United States Office of the Trustee as the official representative of all victims of childhood sexual abuse and it will not sell survivors for quick pay that does not do justice to them. they deserve.

The ICC draws attention to the major flaws contained in the proposed regulations. The Church of Jesus Christ of Latter-day Saints (LDS) does not pay reasonable compensation for the wide disclosure of allegations of sexual abuse that occurred in local councils controlled by LDS. LDS had a direct implication in all aspects of the Scouting program. If approved, the proposed regulation gives an average $ 3,000 payment for each claim. Instead, the TCC maintains that LDS is given a “jail release card” in exchange for an unreasonably small sum.

“As each month goes by in this bankruptcy case, the Boy Scouts bankruptcy is less about the survivors and more about how the Boy Scouts come out of bankruptcy at the expense of the survivors,” added Doug kennedy, vice-president of the CCT. “It will be up to the Asylum Seekers Committee to continue to advocate for the interests of survivors, as Boy Scouts, Local Councils, chartered organizations and their insurers are unwilling to do the work necessary to reach a just resolution to the survivors. ”

Likewise, Hartford Insurance Company does not pay amounts commensurate with its coverage risk. Hartford Insurance Company has increased its inadequate supply of $ 650 million at an equally lower offer of $ 787 million. Hartford new offer brings on average less than $ 9,500 per survivor.

“The Asylum Seekers Committee investigated Hartford and it has the capacity to fairly compensate survivors without jeopardizing its financial situation, ”said John humphrey, president of the CCT. “As chairman of TCC, I cannot in good conscience support the release of a large insurance company for pennies on the dollar.”

The TCC initially supported a restructuring settlement agreement for a consensus plan because the BSA and the Coalition of Abused Scouts for Justice confirmed that the core value for survivors would be recouped from the billions of insurance coverage available. However, in the past two months, the BSA and the Coalition have changed course and are now seeking a quick exit from the bankruptcy case by reaching deals with Hartford and LDS who fail to capture the billions due to survivor sexual abuse claims.

“In a case where half of the abuse includes several cases of child penetration and masturbation, payments of the order of $ 10,000$ 12,000 don’t start compensating survivors fairly, ”said James Stang of the PSZJ. “The Asylum Seekers Committee will oppose the LDS and Hartford settlements and all other settlements that do not fairly compensate survivors, ”Stang added.

You can find more information on the restructuring at

SOURCE Pachulski Stang Ziehl & Jones

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