© Reuters. FILE PHOTO: The Cushman Watt Scout Center, home of the Boy Scouts of America for the Los Angeles Area Council, is pictured October 18, 2012 in Los Angeles, California. REUTERS / Fred Prouser
By Maria Chutchian
(Reuters) – The Boy Scouts of America secured more than $ 1 billion in new settlements Tuesday to resolve sexual abuse lawsuits, with $ 787 million from insurance group The Hartford and an additional $ 250 million from of The Church of Jesus Christ of Latter-day Saints. one of its registered organizations.
The agreements announced by Hartford Financial Services Group (NYSE 🙂 Inc. and the Coalition of Abused Scouts for Justice require approval from US bankruptcy judge Laurie Selber Silverstein, who is overseeing the Boy Scouts’ bankruptcy.
In return for paying The Hartford, the Boy Scouts and their local councils will completely exempt the company from all obligations under policies that were primarily issued in the 1970s, the insurer said. The Hartford expects to charge a pre-tax charge of $ 137 million in the third quarter for the higher payout.
Tuesday’s deal replaces the Boy Scouts’ previous contract with The Hartford, under which the insurer said it would deposit $ 650 million into a proposed trust fund for victims of child sexual abuse as part of the Boy Scouts bankruptcy process.
The Church of Jesus Christ of Latter-day Saints is one of many organizations that fund Boy Scouting activities and troops that has also faced allegations of sexual abuse.
Founded in 1910, the Boy Scouts filed for Chapter 11 bankruptcy protection in February 2020 after being hit by a spate of sexual abuse lawsuits. The Boy Scouts face 82,500 sexual abuse lawsuits in the bankruptcy.
Last month, Silverstein cleared the Boy Scouts’ $ 850 million settlement with representatives of around 70,000 abuse claimants. This deal is supported by 250 local councils.
With the two new settlements, the total amount available to sexual abuse complainants in the Boy Scouts bankruptcy is now $ 1.887 billion. Negotiations with other insurers and chartered organizations are ongoing.
The scouts have pledged to meet their “social and moral responsibility for fair compensation for survivors”.
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