The Boy Scouts of America are nearing a revised deal with Hartford Financial Services Group Inc. for the insurer to compensate survivors of childhood sexual abuse and ease the youth group’s exit from bankruptcy, WSJ Pro Bankruptcy reported. Hartford’s contribution could approach $800 million under the possible deal, though negotiations continue and there is no guarantee of a final agreement. A settlement would clear Hartford of any further obligation under policies it wrote for the Boy Scouts decades ago, while providing compensation for abuse survivors. To take effect, any settlement with Hartford would require bankruptcy-court approval and support from a majority of survivors who have filed claims in the Boy Scouts bankruptcy case. Liability insurers have had “productive” talks with the Boy Scouts over a broader proposed restructuring of the youth group’s liabilities for past sexual abuse, its lawyer Jessica Lauria said in a court hearing yesterday. Abuse survivors in April rejected a previous deal between Hartford and the Boy Scouts valued at up to $650 million. Negotiations continued to find an insurance framework acceptable to survivors. Talks concerning a new agreement have included a coalition of law firms representing most of the roughly 82,500 men who stepped forward after the Boy Scouts filed for bankruptcy.
