Boy Scouts Of America To Pay $850M For Settling Abuse Claims

The Boy Scouts of America reached an $850 million settlement with more than 60,000 men who alleged they were sexually abused by scout leaders during their youth.

What Happened: The settlement was announced in a court filing in U.S. Bankruptcy Court for the District of Delaware.

The Boy Scouts of America filed for bankruptcy in February 2020 in the wake of 275 abuse lawsuits and 1,400 potential claims from men who claimed they were molested during their childhood years in the organization. By November 2020, the number of claims increased to nearly 90,000.

The settlement amount can be roughly divided into $10,000 per claimant, and the organization agreed to provide the Settlement Trust with access to its records related to abuse claims and nonmonetary compensation including its insurance rights and protective measures now in place within its programs.

"This initial settlement of $850 million is the largest settlement of sexual abuse claims in United States history," said Ken Rothweiler, a lawyer representing a group of claimants, in a press statement.

Boys Scouts of America is estimated to be worth more than $3.7 billion, including over 250 local councils and various trusts and endowments, according to research published by USA Today in March.

See Also: Benzinga Stock Market Live: Why You Should Own Preferred Stocks

What Else Happened: Scouting appears to have lost much of its appeal. Membership in the Boy Scouts and Cub Scouts programs fell 43% from 1.97 million in 2019 to 1.12 million in 2020, according to an Associated Press report, while participation following the Boy Scouts of America’s bankruptcy filing dropped even further to approximately 762,000 young participants

The Girl Scouts of the USA, which has no affiliation with the Boy Scouts of America, have also experienced a membership decline, with a 30% drop from about 1.4 million in the 2019-2020 period to just over 1 million this year.

Photo: Picpedia.org.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsLegalBoy Scouts of Americasettlementsexual abuse claims
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...