Background
Thousands of Scouts were sexually abused by employees and volunteers of the Boy Scouts of America (BSA). Many survivors bravely came forward, filing cases against the BSA to hold it accountable. As a result, the BSA filed for bankruptcy on February 18, 2020, affecting over 82,000 survivors who had filed abuse claims. Krause & Kinsman proudly represents nearly 7,000 Scouts, guiding them through the litigation to ensure they receive the compensation they deserve.
The Bankruptcy Case
The Bankruptcy Court required the BSA to propose a plan to address the 82,000 claims. After two years of litigation, a plan was created and supported by 70% of Krause & Kinsman’s clients. The confirmation trial, spanning almost four weeks with over 1,000 exhibits, concluded with the plan’s approval by Judge Silverstein on September 8, 2022. The plan establishes a $2.5 billion trust to pay abuse claims, provides a procedure to evaluate each claim, and implements a Youth Protection Program to prevent future abuse.
Current Status
While the plan’s approval was a major milestone, it has been appealed, with the appeals process expected to take time. The trust cannot become active until the District Court affirms the Bankruptcy Court’s decision. Krause & Kinsman remains committed to fighting for its clients throughout this process, hopeful that resolution will occur within 6-18 months.