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Supreme Court Lets Boy Scouts Sex-Abuse Settlement Stand

The denial cements a 2022 bankruptcy plan that channels claims to a $2.46 billion trust, shielding contributing organizations from new suits.

Overview

  • The justices declined to hear an appeal that sought to reopen the case, leaving the court‑approved settlement and third‑party releases intact.
  • Challengers said the deal improperly blocked lawsuits against churches and other program operators, but a federal judge and the 3rd Circuit had already upheld the plan.
  • A later Supreme Court ruling narrowed bankruptcy courts’ authority to erase claims against non‑bankrupt contributors, yet it was not applied retroactively to this settlement.
  • Scouting America, insurers and a coalition of survivors warned that undoing the plan could disrupt distributions and require reclaiming payments already sent to claimants.
  • The organization filed for bankruptcy in 2020 after state law changes enabled older abuse claims, resulting in a global resolution totaling about $2.46–$2.5 billion.