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Hurley McKenna & Mertz Statement Regarding the Boy Scouts of America’s Proposed Reorganization Plan

March 2, 2021  ·  By mark


To our clients:

You may have heard recently about a Plan of Reorganization filed by the Boy Scouts of America on March 1, 2021. You may hear about the monetary contributions proposed by BSA and by the Local Councils. You may also hear about “average” recoveries from victims that fall woefully short of fairly compensating you and victims nationwide. We want you to understand what this plan means.

The filing of this plan is a first step in BSA’s bankruptcy. The numbers you hear also fail to take into account contributions from other sources: insurance companies and sponsoring organizations. We expect both of these sources to contribute substantial funds towards the settlement trust and suspect that the insurance contributions will dwarf the contributions of BSA. Additionally, BSA’s “proposed” plan is not the final say in the matter. The Court needs to approve the plan and we expect victims nationwide to vigorously resist the initial proposal by the BSA. Ultimately, victims vote on the plan and a plan that insufficiently compensates victims is likely to fail. The voting process has not yet begun and there will be extensive negotiations about voting procedures. When those procedures are defined, we will give you advice about voting and our analysis of different elements of the proposed plan.

Please have patience and do not take to heart the numbers you are hearing. This is the beginning of a long battle and we have your back.

March 2, 2021

What the Mormon Church's Assets Mean for Sexual Abuse Victims

The Church of Jesus Christ of Latter-day Saints—formerly known as the LDS or Mormon Church–is one of the wealthiest religious organizations in the world. Between donations from its more than 16.5 million members and the practice of tithing, where members are asked to give 10 % of their income to the Church, it usually amasses... Read More

March 2, 2021

The Boy Scouts Proposed Bankruptcy Plan "Grossly Undercompensates Victims."

On Monday, March 1, 2021, the Boy Scouts of America filed its Proposed Reorganization Plan. This is one of the first major steps in BSA’s effort to emerge from bankruptcy. BSA’s bankruptcy was precipitated by the thousands of sexual abuse against it. Through its bankruptcy, BSA seeks a release of liability for itself and all... Read More

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