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Judge signs off on $850 million Boy Scouts sex abuse deal

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A judge has signed off on a pivotal $850 million agreement for the Boy Scouts of America (BSA) to cover the sex abuse claims the organization is facing. 

U.S. Bankruptcy Judge Laurie Selber Silverstein of Delaware signed off on the agreement Thursday, which is supported by the 250 BSA clubs but opposed by the organization’s insurers, The Associated Press reported.

However, the judge did not sign off on two key provisions of the deal, according to the AP.

One provision not approved was the BSA’s request to back out of a deal where they would let an insurance company get away with further liability if they contributed $650 million to a fund for abuse claimants.

The other denied provision would have allowed BSA to pay millions of dollars to attorneys for legal fees and expenses from the Coalition of Abused Scouts for Justice

Under the agreement, the group will be creating a fund for child sex abuse victims, and will give $250 million in cash and property toward it.

BSA has received 82,000 sex abuse claims against volunteers and leaders in the group. It reached the $850 million settlement in July.

In a statement at the time, the group said the settlement “will help local councils make their contributions to the Trust without additional drain on their assets, and will allow them to move forward with the national organization toward emergence from bankruptcy.”

The organization filed for Chapter 11 bankruptcy last year when the thousands of sex abuse claims were hitting the group.

Tags Boy Scouts of America sex abuse cases

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