Boy scout case could change large bankruptcy cases forever
Steven Smith, partner in Herrick's Restructuring & Finance Litigation Department, spoke to Axios about the Chapter 11 bankruptcy case of Boy Scouts of America. The article noted that the organization is "working to settle the largest sex-abuse lawsuit in history" and that Boy Scouts "filed for Chapter 11 bankruptcy in February 2020, after several states changed laws that allowed victims to sue over decades-old allegations."
Steven explained, "If the bankruptcy court rejects this settlement, or it gets rejected on appeal, the global settlement architecture will fail." He added, "These releases are the lynchpin for this type of litigation. Without them, many companies facing tort exposure will have to liquidate, and survivors will have to pursue individual settlements. It'll be a race to the courthouse."
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