A trial to determine whether the Boy Scouts of America's proposed reorganization plan should be approved is beginning more than 2 years after it sought bankruptcy protection amid an onslaught of child sex abuse allegations.
All told, the compensation fund would total more than $2.6 billion, which would be the largest aggregate sexual abuse settlement in U.S. history. The average recovery per claimant, however, would be significantly less than in other settlements of sex abuse scandals involving large numbers of victims. The University of Southern California, for example, agreed last year to an $852 million settlement with more than 700 women who accused a longtime campus gynecologist of sexual abuse.
Opponents argue, among other things, that the proposed liability releases for non-debtor third parties — including local BSA councils, insurers and troop-sponsoring organizations — violate the due process rights of abuse claimants and are not authorized under the bankruptcy code. The official committee had long maintained that the BSA’s plan to compensate abuse victims was "grossly unfair," but said last month that it had won important concessions in lengthy negotiations with the BSA and other parties.
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