SEXUAL ABUSE CLAIMS SETTLEMENT APPROVED IN MADISON SQUARE BOYS & GIRLS CLUB, INC. BANKRUPTCY

NEW YORK, Aug. 11, 2023 /PRNewswire/ -- The Official Creditors' Committee ("OCC"), the fiduciary for all abuse survivors ("Survivors") in the chapter 11 case of Madison Square Boys & Girls Club, Inc. ("MSBGC"), is pleased to announce that the United States Bankruptcy Court for the Southern District of New York approved MSBGC's plan of reorganization (the "Plan"), including a settlement of the sexual abuse claims filed against MSBGC. 

The settlement provides for a projected payment of $22 million to a settlement trust that will be distributed to approximately 149 Survivors in accordance with a Plan and the preservation of insurance rights and claims that may be pursued to increase the payout available to Survivors. The settlement will be funded by the MSBGC only. In exchange for the settlement payment, MSBGC will receive a discharge in bankruptcy. The approved Plan does NOT release any abuse claims against the national Boys & Girls Clubs of America, or its affiliates and insurers. 

"Through the hard work of the seven members of the Official Creditors' Committee, MSBGC has been held accountable to Survivors. The tenacity and courage of these men empowered us to reach a recommended settlement that begins to address the needs of Survivors on a timely basis. The bankruptcy process was hard fought and, at the end of the day, Survivors will receive fair compensation," said George Daniello, Co-Chair of the OCC.

"In the end, the Plan provided a platform for a substantial number of Survivors to reach independent settlements with Rockefeller University Hospital," said Robert Liguori, Co-Chair of the OCC. "The compensation received from MSBGC plus the settlements reached with Rockefeller University Hospital will provide Survivors with meaningful compensation. In addition, Survivors will be free to pursue their claims against the national Boys & Girls Club organization and its insurers, who have yet to take responsibility for their failure to protect a generation of boys against many other sexual predators who shattered young lives," he added. 

"The OCC always has stood for fair compensation and transparency. The seven OCC members devoted themselves to getting the right result for all Survivors. Importantly, the results were achieved in the short span of one year after MSBGC filed for bankruptcy, signifying quick closure and meaningful compensation for Survivors," said John Lucas of Pachulski Stang Ziehl & Jones LLP, bankruptcy counsel to the OCC.

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SOURCE Pachulski Stang Ziehl & Jones