Boy Scouts Fail to Gain Enough Support From Victims for $2.7B Sex Abuse Settlement

The Boy Scouts of America fell short of winning the support it sought from sex-abuse victims for a near $2.7 billion settlement that could bring the organization out of bankruptcy, the Wall Street Journal reported on Wednesday citing a preliminary vote count.

The proposed settlement of 82,200 claims of childhood sexual abuse earned the support of just over 73% of those who cast votes, falling short of the 75% the Boy Scouts were targeting, the newspaper said.

Nearly 54,000 survivors cast ballots, the report said, citing a Tuesday court filing and added that the current tally is not final and marks the first of several steps along a possible path out of bankruptcy for the Boy Scouts.

The Boy Scouts filed for bankruptcy in February 2020, after being hit by a flood of sexual abuse lawsuits when several U.S. states passed laws allowing accusers to sue over allegations dating back several decades.

Those claimants are now designated creditors of the organization, so must sign off on any plans to restructure and exit bankruptcy. Representatives of some of the victims have previously pushed for larger settlements.

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Boy Scouts and the plaintiff’s law firms did not immediately respond to Reuters’ request for comment.

The Boy Scouts has apologized and says the organization is committed to fulfilling their “social and moral responsibility to equitably compensate survivors.”

As negotiations over a deal have dragged on, the Boy Scouts’ lawyers had warned it would have to begin selling off assets, that would otherwise be used to compensate abuse claimants, to pay legal fees.

(Reporting by Jahnavi Nidumolu in Bengaluru and Maria Chutchian in New York; Editing by Andrew Heavens and Frank Jack Daniel)