Particle.news
Download on the App Store

Supreme Court Lets Boy Scouts Sex-Abuse Bankruptcy Settlement Stand

Lower courts held the 2024 curb on third‑party releases does not reopen already confirmed plans.

Overview

  • The justices declined to hear an appeal seeking to unwind the Boy Scouts’ bankruptcy deal, preserving a roughly $2.46–$2.5 billion plan confirmed in 2022 for tens of thousands of survivors.
  • Challengers argued the plan improperly blocks lawsuits against churches and other chartering organizations, with reports identifying the group as either 144 plaintiffs or 75 survivors in Guam.
  • The settlement grants immunity to contributing non‑debtors in exchange for payments into the compensation fund.
  • A federal judge and the 3rd U.S. Circuit Court of Appeals upheld the deal, and the Supreme Court had previously allowed distributions to proceed in 2024 during ongoing appeals.
  • Scouting America and supporting survivors warned that unraveling the plan would harm claimants and could force clawbacks of payments that have already begun.