Consumer Law

Judge Upholds Boy Scouts’ $2.4 Billion Bankruptcy Plan

A $2.4 billion bankruptcy plan for the Boy Scouts of America has been upheld by a federal judge, clearing an important hurdle in the legal challenge by certain insurance companies and dissenting sex abuse survivors.

The plan would let the Texas-based organization keep operating while it compensates tens of thousands of men who say they were sexually abused as children while involved in Scouting.

The ruling released Tuesday in U.S. District Court in Delaware rejected arguments that the bankruptcy plan wasn’t proposed in good faith and improperly strips insurers and survivors of their rights.

Read the source article at apnews.com

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