The Hartford announced a new agreement in the Boy Scouts of America (BSA) bankruptcy in which it will pay $787 million, for sexual abuse claims under policies mostly issued in the 1970s
The new agreement supersedes a prior $650 million agreement and now includes the BSA, its local councils and the representatives of a majority of the sexual abuse claimants.
In exchange for The Hartford’s payment, the BSA and its local councils will fully release The Hartford from any obligation under policies The Hartford issued to the BSA and its local councils.
In addition, the representatives for the claimants joining this agreement-in-principle will support a plan of reorganization which incorporates the settlement.
As announced on April 16, 2021, The Hartford had entered into a $650 million settlement with BSA; however, that previous settlement did not include the local councils or representatives of a majority of the claimants.
Attorneys for the Boy Scouts of America last month postponed a key bankruptcy hearing after Judge Laura Selber Silverstein cast some doubt on the future of the overall bankruptcy settlement case. The judge approved BSA’s proposal to enter into an agreement that includes an $850 million fund to compensate tens of thousands of men who say they were sexually abused as youngsters by Scout leaders and others. However, she rejected two provisions of the deal, one being the earlier Hartford agreement and the other having to do with legal fees.
The Hartford said the parties now expect to receive court approval of the settlement in late 2021.
The Hartford said it expects to record a charge against earnings of approximately $137 million, before tax, in the third quarter 2021.
Reuters reported that the Boy Scouts of America also announced a separate agreement for $250 million from one of its supporting organizations, the Church of Jesus Christ of Latter-day Saints,
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