The Coalition of Abused Scouts for Justice (the “Coalition”), represented by international law firm Brown Rudnick LLP, announced a settlement in the Boy Scouts of America bankruptcy proceedings, impacting thousands of sexual abuse victims and their families, and representing an historic moment in victims’ rights advocacy.

The Coalition, in concert with the Official Committee of Tort Claimants (“TCC”), and the Future Claims Representative (“FCR”), both appointed in the Boy Scouts of America Chapter 11 cases, as well as law firms representing over 60,000 victims of sexual abuse in the Boy Scouts, executed a Restructuring Support Agreement (the “RSA”) with the Boy Scouts of America and representatives of the Boy Scouts’ over 250 Local Councils.

The RSA enumerates terms of an agreed plan of reorganization that will allow the Boy Scouts to exit bankruptcy proceedings while providing compensation to sexual abuse victims and holding the Boy Scouts’ insurers to the terms of the policies purchased by the Boy Scouts and their affiliates over many decades.

The Coalition is represented by a Brown Rudnick team led by David Molton, Eric Goodman, Sunni Beville, and Tristan Axelrod. Molton is a Partner and Chair of Cross-Border, Mass Tort, and Restructuring Litigation; Goodman is a Partner in the Bankruptcy & Corporate Restructuring Practice Group; Beville is a Partner and Managing Director of Brown Rudnick’s Dispute Resolution & Restructuring Department; and Axelrod is a Bankruptcy & Corporate Restructuring Associate.

David Molton commented, “More than anything, this settlement speaks to the strength of the abuse survivors who suffered in silence for many years. Through our work on this reorganization plan and bankruptcy litigation, we are proud to have been part of helping the victims seek justice.”

The settlement achieves consensus among large numbers of sexual abuse claimants as well as the Boy Scouts of America and its Local Councils. After months of negotiation, the parties arrived upon a plan agreement and architecture that significantly increases and secures the contributions of the Boy Scouts and Local Councils, and articulates a fair and equitable distribution procedure for abuse survivors that can be implemented immediately upon the Boy Scouts’ exit from Chapter 11 proceedings. At the same time, the plan incentivizes further contributions from liable non-debtor parties and provides the survivors’ Settlement Trust sufficient flexibility and authority to obtain further contributions post-exit.

The Coalition, TCC, and FCR believe that the RSA improves outcomes for abuse victims, and shifts the focus of the Boy Scouts’ restructuring efforts thereby providing victims and their advocates a stronger voice in the process. The most important features of the RSA concern the Trust Distribution Procedures and related provisions concerning insurance assets and trust governance.

Brown Rudnick is a nationally recognized leader in bankruptcy and mass-tort litigation. The Firm regularly represents official committees, ad hoc committees, debtors, and other key parties in many of the nation’s largest restructurings. In November 2020, Brown Rudnick won the Law360 Bankruptcy Practice Group of the Year award, one of only five U.S. law firms recognized in the bankruptcy category.

About Brown Rudnick LLP
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