A bankruptcy judge approved Thursday the Boy Scouts of America's (BSA) $2.46 billion reorganization plan.

Why it matters: It would enable the BSA to exit Chapter 11 and continue operating while compensating over 80,000 men who allege scout leaders sexually abused them, per Reuters.

• It's the largest sex abuse lawsuit in U.S. history and comes after years of legal battles.

Details: Under the plan, the BSA, its local councils, settling insurance companies and troop-sponsoring groups like religious organizations would contribute to a fund for survivors in exchange for protection from future abuse lawsuits.

• Claimants could receive anywhere from $3,500 to $2.7 million for the most severe cases.
• Some of the money would also go toward a trust set up to fund litigation against those that have not settled, per AP.

What's next: The ruling, issued by Judge Laurie Selber Silverstein in Delaware, now awaits approval from a federal district judge.

• A group of insurers has said they will likely appeal, Reuters notes.

The big picture: The BSA filed for bankruptcy in February 2020 amid mounting legal costs from sex abuse lawsuits as well as declining membership.

• Claimants took on the status of BSA creditors, which meant the organization had to seek their approval on any plans to reorganize and exit bankruptcy.
• More than 50,000 survivors voted on the proposed settlement.