Boy Scouts’ $2.4 billion bankruptcy plan upheld, keeps org active while resolving sex abuse claims

A federal district court judge upheld a $2.4 billion bankruptcy plan for the Boy Scouts of America on Tuesday.

The ruling reaffirms an approval given in September, for a plan that aims to resolve tens of thousands of child sexual abuse claims against the organization while keeping the BSA active.

The decision rejects arguments from attorneys representing abuse survivors, who claim the proposal was not made in good faith and unjustly strips them of their rights.

U.S. Bankruptcy Judge Laurie Selber Silverstein approved the plan in September, paving the way for the Boy Scouts of America to continue functioning while it settles the more than 80,000 claims alleging child sexual abuse from troop leaders.

Opponents of the plan argue that the staggering number of claims is evidence that the bankruptcy process was manipulated.

U.S. District Court Judge Richard Andrews, however, found no fault with Silverstein’s prior ruling.

“Appellants argue on many fronts that the plan did not meet the requirements for confirmation, and I have carefully considered each of these arguments,” Andrews said. “Based on the record, the appellants have failed to put forth evidence that would demonstrate clear error in the bankruptcy court’s careful findings of facts.”

The Boy Scouts of America released a statement after the ruling, saying it solidified a path forward for “survivors and Scouting.”

“We look forward to the organization’s exit from bankruptcy in the near future and firmly believe that the mission of Scouting will be preserved for future generations,” the organization added.

Some attorneys connected to the case have previously suggested that the decision could be appealed again, taking the case all the way to the Supreme Court.

With News Wire Services