Hartford Cuts $650M Deal To End Boy Scouts Abuse Claims
Dorothy Atkins, 16 April 2021
Hartford Financial Services Group announced Friday that the insurance company has agreed to pay $650 million to resolve sexual abuse claims in Delaware bankruptcy court related to the Boy Scouts of America scandal.
Under the deal, which is subject to a bankruptcy judge’s approval, the Connecticut-based insurance company will make the payment to the Boy Scouts of America and its local councils in exchange for releasing it of any obligation under the insurance policies, most of which were issued in the 1970s, according to the company.
The Hartford is one of multiple entities facing potentially massive liability from allegations that the Boy Scouts of America hid widespread sexual abuse among its ranks for decades.
The Boy Scouts of America filed Chapter 11 protection in February 2020 as the organization faced escalating sexual abuse settlements and sought to establish a long-term “mass tort” compensation structure. In its initial Chapter 11 petition, the Boy Scouts of America estimated total liabilities at $500 million to $1 billion, with $61.5 million in secured debt, another $50 million in trade and unsecured debt, and $183 million in unfunded pension liabilities. But since the Chapter 11 case began, more than 95,000 abuse claims have been filed, according to court documents.
