Consumer Law

A Judge Moves Forward With the Boy Scouts Bankruptcy Case

A Delaware judge on Tuesday began a key hearing that could determine whether the Boy Scouts of America can emerge from bankruptcy later this year with a reorganization plan that would compensate thousands of men who say they were sexually abused as children.

The Boy Scouts, based in Irving, Texas, sought bankruptcy protection in February 2020, seeking to halt hundreds of individual lawsuits and create a fund for men who say they were molested as children by scoutmasters and others. Although the organization was facing 275 lawsuits at the time, it’s now facing some 82,500 sexual abuse claims in the bankruptcy case.

Judge Laura Selber Silverstein convened the hearing to consider whether a disclosure statement outlining the latest reorganization plan contains sufficient details to ensure that abuse claimants and other creditors can make informed decisions on whether to accept or reject it.

Read the source article at Associated Press News

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