(Redo the first sentence with an additional agreement with the Mormon Church, add details)
By Maria Chutchian
September 14 (Reuters) – Boy Scouts of America raised more than $ 1 billion in new settlements on Tuesday to settle sexual abuse claims, with $ 787 million from insurance group The Hartford and another $ 250 million from the Church of Jesus Christ of Latter-day Saints, one of its founding organizations.
The agreements, announced by Hartford Financial Services Group Inc. and the Coalition of Abused Scouts for Justice, will be subject to the approval of U.S. Bankruptcy Judge Laurie Selber Silverstein, who oversees the Boy Scouts’ bankruptcy.
In exchange for payment from The Hartford, the Boy Scouts and their councils will fully release the company from any obligations arising from the policies that were mostly issued in the 1970s, the insurer said. Hartford expects to receive a $ 137 million pre-tax charge in the third quarter to get the highest payment.
Tuesday’s deal replaces the Boy Scouts’ previous deal with The Hartford, which said the insurer said it would provide $ 650 million to a proposed trust fund for child sexual abuse victims as part of the case. of bankruptcy of the Boy Scouts.
The Church of Jesus Christ of Latter-day Saints is one of many organizations that fund exploration activities and troops and have also faced sexual abuse claims.
Founded in 1910, Scouts sought protection from Chapter 11 bankruptcy in February 2020 after being hit by a flood of sexual abuse lawsuits. Boy Scouts face 82,500 claims of sexual abuse in bankruptcy.
Last month, Silverstein approved the Boy Scouts ’$ 850 million deal with representatives of some 70,000 abuse plaintiffs. This agreement is supported by 250 municipalities.
With the two new settlements, the total amount of money available to sexual abuse plaintiffs in the bankruptcy of the Boy Scouts is now $ 1.887 billion. Negotiations with other insurers and contracted organizations continue.
The Boy Scouts have said they are committed to fulfilling their “social and moral responsibility to equitably compensate survivors.” (Report by Uday Sampath in Bengaluru and Maria Chutchian in New York Edition by Anil D’Silva and Matthew Lewis)