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Future liability releases at center of Boy Scouts bankruptcy

Boy Scouts Bankruptcy
Posted at 6:02 AM, Apr 13, 2022
and last updated 2022-04-13 09:02:15-04

DOVER, Del. (AP) — Attorneys for the Boy Scouts of America say protecting local BSA councils and troop sponsoring organizations from future liability for child sex abuse claims is critical to the national group’s reorganization plan.

But attorneys opposing the plan told a Delaware bankruptcy judge on Tuesday that liability releases for non-debtor third parties are neither fair nor necessary.

The Boy Scouts sought bankruptcy protection in February 2020 in an effort to halt hundreds of individual lawsuits and create a settlement trust for child sex abuse victims.