Officials with the Boy Scouts of America on Wednesday announced that the organization has emerged from Chapter 11 bankruptcy after gaining court approval for a reorganization plan.
The plan includes the creation of a $2.4 billion fund for sex abuse victims. It gained approval from more than 85% of abuse survivors involved in the case, according to Boy Scouts of America CEO Roger Mosby.
The national organization filed for bankruptcy protection in February 2020 as it faced hundreds of sexual abuse lawsuits from men who said they were abused by troop leaders when they were children. More than 82,000 people have come forward with allegations.
[ Boy Scouts of America files for bankruptcy protection amid sexual abuse lawsuits ]
In an open letter published online Wednesday, Mosby praised the courage of abuse survivors who have spoken out.
“To the thousands of lives that were forever changed when individuals took advantage of Scouting programs to abuse innocent children — we have failed you and we are truly, deeply sorry,” he said. “Survivors, your bravery has moved us beyond words.”
Adam Slater, an attorney representing abuse victims, told Reuters that the settlement would give “some tangible measure of justice” to the victims.
A federal judge upheld the Boy Scouts’ settlement plan in March amid objections from some victims and from insurance companies that argued that the organization was contractually obligated to help investigate, defend and settle the claims, according to The Associated Press.
The settlement was supported by the organization’s two largest insurers, which provided a bulk of the money for the compensation fund, the AP and Reuters reported. Money for the fund will also come from local Boy Scout councils and the national organization, according to Reuters.