19 Apr 2023 10:36 am
The longest bankruptcy case in history is over. Boy Scouts of America filed for protection under Chapter 11 in February 2020. Today, the last appeal of the approved restructuring plan was dismissed as frivolous.
The plan establishes the largest compensation fund in history...at the time it was agreed upon ($2.4 billion), which was possible after even plaintiff attorneys acknowledged that some 58,000 of the 80,000 new claims probably could not be supported in court for various reasons, so they agreed to a lower settlement amount (and realistically, nobody wanted to be the ones to fight the claims in public). A key point in the plan agreed to by all parties is BSA is free from any and all abuse claims, known or unknown, that occurred prior to the date the plan was approved.
Now the next very difficult phase starts...building back the financial stability and reserves of the organization.
The plan establishes the largest compensation fund in history...at the time it was agreed upon ($2.4 billion), which was possible after even plaintiff attorneys acknowledged that some 58,000 of the 80,000 new claims probably could not be supported in court for various reasons, so they agreed to a lower settlement amount (and realistically, nobody wanted to be the ones to fight the claims in public). A key point in the plan agreed to by all parties is BSA is free from any and all abuse claims, known or unknown, that occurred prior to the date the plan was approved.
Now the next very difficult phase starts...building back the financial stability and reserves of the organization.