Boy Scouts Of America Offers Sexual Abuse Survivors Historically Low Ultimate Recoveries

LOS ANGELES, Nov. 8, 2021 /PRNewswire/ -- Survivors of Boy Scouts of America sexual abuse are urging fellow Survivors to REJECT and vote 'NO' on a proposed Modified Fifth Amended Plan of Reorganization (Plan) of the Boy Scouts of America. During Thursday night's Town Hall hosted by the Official Tort Claimants' Committee (TCC), the TCC's bankruptcy counsel and financial advisor began releasing findings from a comprehensive financial and operational review of all 251 of the Boy Scouts Local Councils. The reports show that the Local Councils have the ability to pay at least $1.5 billion, compared to the $500 million and a promissory note of $100 million in the current Plan.

"Survivors need to vote 'NO' on this plan to send a powerful message to Boy Scouts of America and the Local Councils that a fair and equitable settlement for all Survivors is the only answer," said Doug Kennedy, Vice Chairman of the TCC and a Boy Scouts of America sexual abuse Survivor. "These reports illustrate that the current settlement is nowhere near what the Councils where the abuse occurred can contribute. The TCC is making these reports public to provide the transparency that the BSA has not."

"The Western Los Angeles Council is implicated in $100 million of claims but is contributing only $1.25 million towards the trust for a full release of liability,'' said John Lucas of Pachulski Stang Ziehl & Jones, Counsel to the TCC. "The Western Los Angeles Council has the ability to contribute more than twice that amount without endangering its operation and scouting mission. When you add up the amount of contributions that each Local Council has the ability to make, it shows that the Local Councils could collectively contribute over $1.5 billion, as opposed to the current proposal of $500 million plus a promissory note of $100 million."

"82,200 Survivors of sexual abuse in BSA have come forward so far. This is historic," said John Humphrey, Chairman of the TCC and Boy Scouts of America sexual abuse Survivor. "The current plan puts Survivors on a path to receiving historically low ultimate recoveries and releases Local Councils and Chartered Organizations from more than 40 years of sexual abuse claims. A 'NO' vote on the Plan is the best way for Survivors to be heard."

The TCC's bankruptcy counsel and financial advisor analyzed the value of the sexual abuse claims against each council, and evaluated them using the Boy Scouts' trust distribution procedures to value the claims along with discounts for statute of limitation issues. The TCC then analyzed the cash and other assets available to pay Survivors from each Council, the number of Scouts each Council has, and the amount of cash and other assets each Council needs to operate and carry out its scouting mission.

"The TCC's analysis is very conservative and assumes that each Local Council will not have ANY cash or other income for two years," said James Stang of Pachulski Stang Ziehl & Jones, Counsel to the TCC. "If Local Councils contributed the $1.5 billion they have the ability to pay based on these reports, they would still retain sufficient cash and other assets to operate and carry out its scouting mission."

The TCC conducts weekly Town Hall meetings every Thursday to educate Survivors about the Plan and the proposed settlements. Next Thursday, the TCC will be releasing more financial and operational reports from local councils all over the country. You can find the Zoom information about upcoming meetings including next Thursday, November 11 at 8:00 PM (Eastern) at www.tccbsa.com.

A full schedule of future Town Hall meetings and prior Town Hall transcripts, videos and Local Council financial and operational reports can also be found at www.tccbsa.com.

The TCC was appointed by the Office of the U.S. Trustee, which is an arm of the U.S. Dept. of Justice, to represent the interests of all Boy Scouts sexual abuse Survivors. The Survivors that make up the TCC do not receive any extra funds for fighting the Boy Scouts and their allies.

The TCC, led by sexual abuse Survivors, opposes the Plan and the proposed settlements with The Hartford Insurance Company, The Church of Jesus Christ of Latter-day Saints, and Boy Scouts Local Councils because the amounts are historically low. The Local Councils are contributing a smaller fraction of what they have the ability to pay and a smaller fraction of the liability against them. All but one of the Chartered Organizations are contributing nothing towards their release from more than 40 years of sexual abuse claims, granting them complete absolution from their responsibility to compensate 82,200 childhood sexual abuse Survivors.

More information on the restructuring can be found at www.tccbsa.com.

SOURCE Pachulski Stang Ziehl & Jones

Related Links

http://www.tccbsa.com