Attorneys in the Boy Scouts of America bankruptcy case have reached a tentative settlement below which one of many group’s largest insurers would contribute $800 million right into a fund for victims of kid sexual abuse.
The settlement introduced Monday requires Century Indemnity Co., which is owned by property and casualty large Chubb Ltd., to contribute $800 million into the fund in return for being launched from additional legal responsibility for abuse claims. The cost would carry the sum of money in the proposed belief to greater than $2.6 billion, which might be the biggest sexual abuse settlement in U.S. historical past.
Beneath the deal, all Chubb firms can be broadly launched from Boy Scouts-related authorized claims, Chubb announced Monday.
The Boy Scouts, based mostly in Irving, Texas, sought bankruptcy safety in early 2020 amid an onslaught of lawsuits by males who stated they had been sexually abused as kids. The submitting was a part of an try to attain a world decision of abuse claims and create a compensation fund for victims.
The settlement comes as greater than 82,000 sexual abuse claimants face a Dec. 28 deadline to vote on a beforehand introduced Boy Scouts reorganization plan.
That plan referred to as for the Boys Scouts and its roughly 250 native councils to contribute up to $820 million in money and property right into a fund for victims. In addition they would assign sure insurance coverage rights to the fund. In return, the native councils and nationwide group can be launched from additional legal responsibility for sexual abuse claims.