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Eagle pin and merit badge sash on Boy Scouts of America uniform. Credit: Amy Kerkemeyer/Shutterstock.com

Insurance carriers potentially facing staggering losses as a result of the Boy Scouts of America bankruptcy are claiming in court documents that groups of plaintiffs lawyers from across the country have filed thousands of unvetted—and in some cases potentially fraudulent—civil claims against the organization, in part as a way to wield greater bargaining power during the proceedings.

The motions, filed in late January by Century and Hartford insurance carriers, are asking the bankruptcy court in Delaware to allow for additional discovery into the methods attorneys used to process and submit claims into the bankruptcy litigation, including the attorneys’ use of lead generation and litigation funding companies. Several additional insurance companies have since joined the discovery requests.

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Max Mitchell

Max Mitchell is ALM's Pennsylvania Bureau Chief overseeing The Legal Intelligencer, Delaware Law Weekly and Delaware Business Court Insider. Follow him on Twitter @MMitchellTLI. His email is [email protected]

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