On March 1, 2021, the Boy Scouts of America (BSA) filed a Plan of Reorganization as a first step in the organization’s bankruptcy proceedings. As you read reports of monetary contributions and recoveries for victims, you may notice these amounts are nowhere near the fair amount of compensation for victims. That said, we want you to understand what this plan is proposing and what that means for your BSA claim.
The BSA proposed plan is just the beginning of the bankruptcy filing process. The numbers reported with this plan do not include contributions from sources outside of the BSA such as insurance companies and sponsoring organizations. Both of these sources are expected to contribute a significant amount of money towards the settlement trust, and the insurance company’s contributions alone will greatly surpass those contributed by BSA.
This reorganization plan has only been proposed and is not the final decision. The court would need to approve the plan, but victims nationwide will likely resist this initial proposal. Victims will vote on the plan, and because of the grossly insufficient compensation for victims, this proposal will likely fail.
The voting process has not yet begun, and extensive negotiations about voting procedures still need to occur. When voting procedures are defined, our team of attorneys will give you guidance about voting and can provide clarification on different elements of the proposed plan if needed.
There is no need to worry about the compensation numbers you are hearing at this time. This is just the beginning, and the attorneys at Pintas & Mullins are ready to fight for the compensation our clients deserve.