Boy Scouts Of America Driven To Ch. 11 By Sex Abuse Claims

Law360 (February 18, 2020, 10:21 AM EST) -- Citing a $150 million — and rising — burden of settlements with victims of alleged sexual abuse, the Boy Scouts of America sought Chapter 11 protection in Delaware early Tuesday, proposing a long-term "mass tort" compensation structure similar to that used for asbestos claims.

Brian Whittman, managing director at Alvarez & Marsal North America LLC, restructuring adviser to the organization and its Delaware affiliate, said in a case-opening declaration that BSA had been considering strategic options since 2018 for achieving an "equitable global resolution of abuse claims" with the assistance of legal and financial advisers.

Eventually, the group settled on the...

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