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Boy Scouts of America Releases the Victims’ Fifth Amended Compensation Plan

September 16, 2021  ·  By HM&M

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As you may have heard, on September 15, 2021, the Boy Scouts of America filed its Fifth Amended Plan. While we are still reading and reviewing the plan, we wanted to highlight some aspects of it that you may hear about on the news and give you our initial thoughts.

Links to the plan, disclosure statement, and proposed order regarding voting methodology are found at the bottom of this post.

You can also read our comments on the plan here.

Overview of the Boy Scouts of America’s Fifth Amended Compensation Plan

  1. The plan contains a settlement of $787 million with The Hartford insurance company. The Hartford is one of the largest insurers in the case with massive exposure for these claims. We do not find this settlement acceptable and did not consent to it on our more than 4,000 clients’ behalf.
  2. The plan contains a settlement of $250 million with TCJC (also known as The Mormon Church and/or LDS). This money will likely only go towards compensating victims abused through the TCJC’s sponsorship of Troops. We do not find this settlement acceptable and did not consent to it on behalf of our TCJC/LDS clients.
  3. Local Councils will contribute $600 million. While we initially supported a resolution with the Local Councils in this range, it was premised on the assumption that the Local Councils and BSA would maximize the pressure exerted on insurers. They have, in our view, failed to do so, as demonstrated by the deal they reached with Hartford. We are now reconsidering our position on whether to support this resolution. You can view your local council’s specific contribution beginning on page 281 of the Amended Disclosure Statement. You can view a summary of your local councils assets beginning on page 311 of the Amended Disclosure Statement.
  4. Approximately $220 million is promised from Boy Scouts of America. For the same reasons we articulated with respect to the Local Councils, we are reconsidering whether to support this resolution with Boy Scouts of America.

Voting has not started. Please understand that, contrary to some reports and statements, voting has not started.

How Much Will Victims Recover?

This is impossible to calculate at this point. The settlements described above still do not include many insurance companies and many chartering organizations.  

You may have heard a figure of $3,500 either through town hall meetings or on various websites. This is what bankruptcy lawyers sometimes refer to as a “quick pay” option. It is basically an option for people to accept $3,500 without further vetting or analysis of their claims. It will be paid promptly, no questions asked. Generally speaking, we would not advise our clients to exercise this option, as we believe it significantly undervalues most claims.

What Our Clients Need to Know

 In the next few days, you will receive an AdobeSign document that you can electronically sign, which authorizes us to use our discretion and vote on your behalf. It specifically rejects your option to accept the $3,500 “quick pay” option. If you believe you would like to elect this “quick pay” option, please call us at 312-553-4900.

  1. In the next few weeks, our clients that a) have not submitted evidence of their participation in scouting and b) were not found on charter rosters will receive an email with a link to a website where such information can be submitted.
  2. We will continue to update you on our ongoing negotiations.

Relevant Links and Resources

Fifth Amended Plan:

Relevant pages: Claims Matrix and Scaling Factors (Page 147)


Amended Disclosure Statement:

Relevant pages: Council Contributions (Page 281); Council Assets (Page 311)


Proposed Order Regarding Voting:

Relevant pages: Proposed Schedule (Page 6); Voting Methodology (Page 7)

Still Have Questions?

If you have any additional questions about your claim, please contact us. We appreciate your patience as we continue to fight on behalf of our clients.

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