Boy Scouts bankruptcy plan fails to win support from victims

The Boy Scouts of America (BSA) has failed to win the 75 percent level of support the group had targeted from men who said they were victims of sexual abuse while in the organization, falling just short with 73 percent, according to the Associated Press and multiple other reports.

The BSA wanted to get to 75 percent support benchmark as part of a $2.7 billion settlement plan with the victims. The plan would pull the BSA out of bankruptcy if approved by the courts. 

The chances of the deal getting such muster increases if a large number of victims back the plan. In the preliminary vote, held among 53,888 claimants who have so far cast votes, 73 percent voted in support of the plan and 27 percent against it. 

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However, the current tally is not final, and a final voting report is due Jan. 17.

The BSA said it was hopeful the plan would garner additional support.

“We are encouraged by these preliminary results and are actively engaging key parties in our case with the hope of reaching additional agreements, which could potentially garner further support for the plan before confirmation,” the organization said in a statement.

The plan calls for the BSA and its local councils to create an $820 million fund in cash and property for abuse claimants, also including certain insurance rights. The organization and councils would then be released from liability for sexual abuse claims.

The plan would be the largest aggregate sexual abuse settlement in U.S. history.

The BSA initially sought bankruptcy protection in February 2020, following a surge in sexual abuse lawsuits after several states passed laws allowing accusers to sue over decades-old allegations.

At the time, the BSA faced 275 lawsuits. In the bankruptcy case, it faces over 82,000 sexual abuse claims.