Scouts don’t assist abuse decision: WSJ – Enterprise Insurance
(Reuters) – The Boy Scouts of America failed to get the support they sought from victims of sexual abuse for a nearly $ 2.7 billion settlement that could bring the organization out of bankruptcy The Wall Street Journal reported Wednesday, citing a preliminary vote count.
The proposed settlement of 82,200 childhood sexual abuse lawsuits received the support of just over 73% of the electorate, falling short of the 75% that the Boy Scouts sought, the newspaper said.
Almost 54,000 survivors cast their votes, the report said, citing a court file Tuesday, adding that the current record is not final and marks the first of several steps on a possible path out of bankruptcy for the Boy Scouts.
The Boy Scouts filed for bankruptcy in February 2020 after a spate of sexual abuse lawsuits as several U.S. states passed laws that allowed prosecutors to sue allegations dating back decades.
These plaintiffs are now designated as creditors of the organization and are required to sign all restructuring and bankruptcy plans. Representatives of some of the victims have previously pushed for larger settlements.
Boy Scouts and plaintiffs 'law firms did not immediately respond to Reuters' request for comment.
The Boy Scouts have apologized and stated that the organization is fulfilling its "social and moral responsibility for fair compensation of the survivors".
As negotiations about a deal dragged on, the Boy Scouts' attorneys warned they would have to start selling assets that would otherwise be used to compensate abuse prosecutors in order to pay legal fees.