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- Judge says she'll rule as soon as possible
- Despite vast support, opponents say Boy Scouts must do more
Reuters - A month-long court hearing for the Boy Scouts of America's proposed reorganization strategy and $2.7 billion settlement of claims made by tens of thousands of men who claimed they were sexually assaulted as children by troop leaders on Thursday.
Judge Laurie Selber Silverstein of the United States Bankruptcy said at the conclusion of the trial that she would rule on the topic as soon as possible.
Lawyers for the youth organization, which has been hit with over 82,000 abuse claims, said they expect the settlement to grant it the freedom to leave Chapter 11 and to continue its Scouting mission.
While the agreement had who approved the plan, hundreds of local councils and the Boy Scouts' two primary insurers, the process of obtaining approval and exiting bankruptcy has been controversial for the Irving, Texas-based company.
The Boy Scouts filed for bankruptcy in February 2020 in order to address sex assault allegations that span decades. Eventually, the plan will establish a $2.7 billion trust to be used to compensate victims who filed charges in the bankruptcy, based on the severity of the alleged abuse, and when and where it occurred.
The bankruptcy regulator at the Federal Government, the United States Trustee, defended the non-debtor release, which protects individuals and entities linked to the debtor who have not filed for bankruptcy themselves, on Wednesday. The attorney for the United States Trustee said the release was being given to an all-time wide group, whom he claims he had no significant contributions to the settlement in exchange.
Buchbinder accused the organization of abandoning survivors "to a lengthy administrative process," which was designed to be "difficult, costly, and confusing."
The release of Jessica Lauria, a lawyer for the Boy Scouts, was defended, claiming that they were necessary to secure financial backing for the trust, and that many other courts have supported the release.
insurers who argue that assessment procedures for abuse claims are. A provision that allows claimants to collect $3,500 if they agree to effectively skip the evaluation process might result in payments for fraudulent claims.
The Boy Scouts argue that this option is cheaper and more effective in the long run than enacting even a "clearly invalid" claim.
Out of compensation, the plan seeks to impose new youth protection measures for current and future Scouts.
The case is in re 'New Boy Scouts of America,' the Federal Bankruptcy Court, and the District of Delaware, no 20-10343.
Jessica Lauria, Mike Andolina, Matt Linder, and Laura Baccash of White and Case; and Derek Abbott, Andrew Remming of Morris, Nichols, Arsht, and Tunnell are some of the most popular children in the country.
David Buchbinder, a Trustee of the United States, is the author of this book.
Richard Doren, Michael Rosenthal, James Hallowell, Keith Martorana, and Matthew Bouslog of Gibson Dunn & Crutcher are all on the line.
Read more about the book "Memory Hill."
Maria Chutchian provides a brief overview of corporate bankruptcies and restructurings. She can be reached at email@example.com.