Insurance companies' attorneys urge judge to reverse bankruptcy plan for Boy Scouts of America

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Attorneys for insurance companies are urging a judge to reverse the bankruptcy plan for the Boy Scouts. The companies may be liable for child abuse claims against the organization.

DELAWARE JUDGE APPROVES $2.46 BILLION REORGANIZATION PLAN FOR BOY SCOUTS OF AMERICA TO SETTLE ABUSE CLAIMS

"We know huge swaths of them are not legitimate claims," Boutros said, referring to a statement made by one of the BSA’s own experts. Boutros also noted that a plaintiffs’ attorney acknowledged that some 58,000 claims probably could not be pursued in civil lawsuits because of the passage of time. When it sought bankruptcy protection in February 2020, the BSA had been named in about 275 lawsuits and told insurers it was aware of another 1,400 claims. The huge number of claims filed in the bankruptcy was the result of a nationwide marketing effort by personal injury lawyers working with for-profit claims aggregators to drum up clients, according to plan opponents.

"Frankly, the insurers, neither in their papers or today, have identified a single finding by the court that could support an ultimate conclusion of bad faith," he said.

 

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