Bankruptcy, US Scouts Complete Rp12.3 Trillion Compensation For Victims Of Sexual Harassment

JAKARTA - The Boy Scouts of America (BSA) or the American Scout Movement has reached a settlement worth US$850 million or approximately Rp. 12,376,722,500,000 million with groups representing tens of thousands of men, with claims of sexual harassment, a move great deal to deal with the flood of accusations that bankrupted the organization.

In a filing on Thursday with the U.S. Bankruptcy Court in Delaware, the Boy Scouts (BSA) said the settlement with the Abused Scouts Coalition for Justice and two other groups covered claims by about 60,000 survivors of abuse.

It said the agreement provides a framework for global resolution of abuse claims, could allow it to emerge from Chapter 11 protection later this year.

"Unifying these groups marks an important milestone, as BSA is working towards our dual imperative to provide fair compensation to survivors of abuse and preserve the scouting mission," the 111-year-old nonprofit said in a statement.

The groups separately described the deal as a significant achievement that reached consensus among most claimants, Scouts and more than 250 local councils.

Thursday's settlement requires a judge's approval and could face opposition from insurance companies who would be prepared to pay.

In court filings, affiliates of American International Group Inc., Chubb Ltd, Travelers Cos and other insurers said the Scouts excluded them from negotiations and gave victims' lawyers too much voice in drafting a settlement.

"With only the fox guarding the chicken coop, the results are completely at odds with what the BSA itself states is necessary for the (bankruptcy) plan to be confirmed," the insurance affiliate described.

Founded in 1910, US Scouts filed for Chapter 11 or filed for bankruptcy in February 2020, after facing hundreds of sexual harassment lawsuits.

The lawsuits were filed after several US states, including New York, began allowing people to sue for alleged sexual harassment that occurred decades earlier.

Bankruptcy filings cover national organizations, not local councils. And, the proceedings were filed in the US Bankruptcy Court, District of Delaware.