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The Wall Street Journal: Boy Scouts Offer Sex-Abuse Settlement, Aiming for End to BankruptcyMarch 02, 2021
The Boy Scouts of America unveiled its plan to exit bankruptcy, one year after it opted for a Chapter 11 fix to the financial and reputational problems confronting the organization following hundreds, and now thousands, of accusations of sexual abuse levied against it, the Wall Street Journal reported. O’Melveny represents Chubb Ltd. subsidiary Century Indemnity Co. in the matter.
Insurers like Century argue that embedded in the 85,000 abuse claims filed against the Boy Scouts are a number of fraudulent accusations made by opportunistic lawyers eyeing a big payday, said the publication. “Allowing invalid and fraudulent claims will hurt valid survivors of sexual abuse by delaying and diluting any compensation they may receive,” commented O’Melveny partner Tancred Schiavoni. “The court needs to first implement a process to root out the bad claims generated by for-profit claims aggregators and misleading advertising campaigns.”
The Wall Street Journal subscribers can read the full article here.