The Hartford announced a new Boy Scouts of America (BSA) bankruptcy deal in which it will pay $ 787 million, for sexual abuse claims under policies primarily issued in the 1970s
The new deal replaces an earlier $ 650 million deal and now includes the BSA, its local councils and representatives of the majority of sexual abuse claimants.
In return for payment from The Hartford, the BSA and its local councils will fully release The Hartford from all obligations under the policies issued by The Hartford to the BSA and its local councils.
In addition, the representatives of the applicants adhering to this agreement in principle will support a reorganization plan that incorporates the settlement.
As announced on April 16, 2021, The Hartford had reached a $ 650 million settlement with BSA; however, this earlier regulation did not include local councils or representatives of the majority of claimants.
Boy scouts delay bankruptcy step after judge questions legal fees and insurer’s agreement
Lawyers for the Boy Scouts of America postponed a key bankruptcy hearing last month after Judge Laura Selber Silverstein questioned the future of the comprehensive bankruptcy settlement case. The judge approved BSA’s proposal to strike a deal that includes an $ 850 million fund to compensate tens of thousands of men who say they were sexually abused as children by Boy Scout leaders and others. However, she rejected two provisions of the agreement, one being the earlier Hartford Agreement and the other regarding legal fees.
The Hartford said the parties now expect to receive court approval for the settlement at the end of 2021.
The Hartford said it expects to record an income charge of about $ 137 million, before tax, in the third quarter of 2021.
Reuters reported that the Boy Scouts of America also announced a separate $ 250 million deal with one of their supporting organizations, The Church of Jesus Christ of Latter-day Saints,
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