The Boy Scouts of America removed a $250 million sex-abuse settlement with the Church of Jesus Christ of Latter-day Saints from the youth group’s chapter 11 plan after a bankruptcy judge rejected the proposed terms, WSJ Pro Bankruptcy reported. The Mormon Church has agreed to be treated as one of the many participating chartered organizations in the Boy Scouts’s chapter 11 bankruptcy, which would compensate roughly 82,200 claims of sexual abuse, according to an updated chapter 11 plan filed late Friday by the Boy Scouts. The Mormon institution will now be treated as any other troop sponsors that didn’t opt out of the chapter 11 plan and also didn’t settle with the Boy Scouts. The church will get legal protection for claims that occurred after 1976 because it was insured under Boy Scouts policies in that period, according to the Boy Scouts. The treatment of claims before 1976 would be less certain for the Mormon Church, which has a long history with the Boy Scouts. For one year after the youth group emerges from bankruptcy, the Mormon Church group can try to negotiate with a settlement trustee charged with overseeing victim compensation, according to the Boy Scouts. If no settlement is reached after a year, then abuse claims can be brought against the church.
