Insurance companies challenging the Boy Scouts of America’s bankruptcy plan argued Thursday that it “eviscerates” their defense rights under policies they issued and would mean grossly inflated payments of sexual abuse claims, including tens of thousands otherwise barred by the passage of time.
The arguments came on the second day of closing arguments before a Delaware judge who must decide whether to approve the reorganization plan the BSA has negotiated to compensate tens of thousands of men who say they were sexually abused as children in Scouting, while allowing the Boy Scouts to continue as an ongoing enterprise.
The Boy Scouts, based in Irving, Texas, petitioned for bankruptcy protection in February 2020, seeking to halt hundreds of individual lawsuits and create a settlement trust for abuse victims. Although the organization faced about 275 lawsuits at the time, more than 82,000 sexual abuse claims have been filed in the bankruptcy case.
The…
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