BG-TCC.jpg

Tort Claimants' Committee Recommends that
Survivors
VOTE TO REJECT
the Boy Scouts Plan

Be sure you know how to fill in your ballot if voting individually. Watch our video "How to Complete & Return Your Ballot" and read more about how to be sure your vote is counted.

 

The next regular Town Hall of the Official Committee of Tort Claimants' (the “TCC”) in the Boy Scouts of America bankruptcy cases will be held on Thursday, December 9, 2021, 8 pm (Eastern).

Zoom link: https://pszjlaw.zoom.us/j/82272826295 (no registration required) 

or by phone: 888-788-0099 (toll free), Webinar ID: 822 7282 6295

The last Town Hall was held on Thursday, December 2, 2021

Important Letter From the TCC Recommending Voting to Reject the Plan

The TCC urges survivors to vote to reject BSA’s Plan. The Plan is grossly unfair to the 82,200 survivors who were sexually abused as children. In the TCC’s opinion, survivors may receive less than 10 cents on the dollar under the current BSA Plan.

 

The key flaws in BSA’s Plan include:

  • BSA’s Plan includes settlements with Local Councils that leave them with over a billion dollars of cash and property in excess of what their current need to fulfill the mission of scouting.

  • Under the terms of BSA’s Plan, Chartered Organizations do not pay a cent for broad releases for more than 40 years of sexual-abuse claims (1976-2020). Instead, Chartered Organizations receive a release of their sexual-abuse liability in exchange for a transfer of their interest in insurance policies purchased by the BSA and Local Councils.

  • BSA’s Plan includes a settlement with the Church of Jesus Christ of Latter-Day Saints (TCJC) that is completely insufficient to pay for claims for which it has liability.

  • The Hartford Insurance Company (Hartford), the only settling insurer to date, is paying a small fraction of the coverage it is contractually obligated to provide.

 

If a sufficient number of survivors vote to reject BSA’s Plan, the possible outcomes include (i) BSA’s case may be dismissed and survivors may be free to pursue claims against BSA, Local Councils, Chartered Organizations, and other parties subject to applicable statutes of limitation; (ii) the Court may appoint a trustee for BSA; (iii) the TCC (or other parties) may submit an alternate plan to reorganize BSA; or the BSA may amend its Plan and seek to resolicit votes to accept or reject such amended plan.

The TCC believes that survivors are likely to enjoy greater recoveries if BSA’s Plan is rejected. For example, if BSA’s Plan is rejected, BSA’s proposed settlements with Hartford and TCJC, described in the plan, are rejected as well. Consequently, Hartford and TCJC will be forced to answer for their respective liabilities and the TCC believes that the recoveries against them will far exceed the amounts of the proposed settlements. Also, the Local Councils have more assets that they could use to pay survivors. 

The TCC urges survivors to join with them

in opposing the Plan and voting to REJECT.

 
 

Important Information on the Plan and Settlement

On September 30, 2021, the Bankruptcy Court approved the Disclosure Statement for the BSA’s Modified Fifth Amended Plan of Reorganization (the “Plan”). The Plan includes proposed settlements with Hartford Insurance Company and the Church of Jesus Christ of Latter-day Saints; the TCC was not a party to the settlements and does not support them. The TCC was appointed by the Office of the United States Trustee as the official advocate for all survivors of childhood sexual abuse and it will not sell out survivors for a quick pay that does not deliver the justice they deserve. View a press release concerning the TCC’s opposition to the Plan.

Now that the Bankruptcy Court has approved the Disclosure Statement, survivors will have the opportunity to vote whether to reject or accept the Plan. Each survivor's decision as to how to vote on the Plan is THEIR OWN DECISION; the decision cannot be made for them by their attorneys. Survivors may receive ballots directly or the ballots may be received by their counsel (if they retained counsel) on their behalf.

 

Important Dates and Upcoming Hearings

The next Bankruptcy Court hearing is Wednesday, November 10th. Links to hearings via Zoom will be listed here as soon as the Bankruptcy Court issues them, which is generally two days before the hearing.

  • November 17, 2021, at 8:00 am (Eastern): Hearing (advance registration required)​

  • December 14, 2021, at 4:00 pm (Eastern): Deadline to Vote on the Plan

  • January 7, 2022, at 4:00 pm (Eastern): Deadline to Object to the Plan

  • January 24, 2022, at 10:00 am (Eastern): Confirmation Hearing Begins

Plan, Disclosure Statement, TCC Presentation on Solicitation and Ballots, and TCC Letter

 

Links to Documents and Websites