Supreme Court Proceeds Boy Scouts’ $2.46 Billion Settlement: A New Chapter In Abuse Case

The United States Supreme Court has given the go-ahead for the Boy Scouts of America’s (BSA) $2.46 billion settlement for victims of sexual abuse. This decision effectively overruled a previous order by Justice Samuel Alito that had temporarily halted the agreement. The ruling is a response to an appeal by a group of 144 former scouts who were against the settlement.

Background of the Case

The BSA, faced with a multitude of sexual abuse claims, declared bankruptcy in 2020. This move came after several states enacted laws allowing victims to file lawsuits over abuse accusations that spanned several decades. Consequently, a court-approved settlement was reached in 2022, promising compensation to victims ranging from $3,500 to $2.7 million.

The settlement impacts over 82,000 men who claimed they were sexually abused as children by troop leaders during their time with the Boy Scouts. The majority also approved the agreement, as over 86% of the affected survivors voted in the bankruptcy court.

Nonetheless, 144 plaintiffs claim that the settlement was not fair. The settlement does not allow individuals to take legal action against non-bankrupt entities, including churches that hosted scouting programs, local Boy Scouts councils, and insurance providers that covered the Boy Scouts.

Legal Opinions and Future Proceedings

Adam Slater, the attorney representing the settlement claimants, favored the Supreme Court’s decision. He claimed that the dying victims should not be left to wait any longer. On the other hand, Gillion Dumas, speaking on behalf of 67 men who appealed, raised the issue of the increasing difficulty of changing the settlement as the legal process takes longer.

These men’s appeal was set for hearing by the 3rd U.S. Circuit Court of Appeals in Philadelphia, scheduled for April 9. In their opinion, the Purdue Pharma case should remain on hold until the U.S. Supreme Court decides whether the bankruptcy courts in the U.S. have the authority to nullify the claims made against non-bankrupt individuals and organizations. This question is currently being debated in the case related to the bankruptcy of the OxyContin manufacturer.

Resumption of Settlement Operations

Following the Supreme Court decision, the retired bankruptcy judge Barbara Houser restarted all operations, including the review and payout of claims. For background information, he was assigned to oversee the settlement between the Boy Scouts and the victims of sexual abuse. The fund trust has already paid $8 million to more than 3,000 individual claimants.

The Boy Scouts expressed relief over the Supreme Court’s decision. It would allow them to compensate survivors and continue scouting to youth nationwide. Yet Douglas Kennedy, a survivor and co-chairman of the official victims’ committee involved in the bankruptcy process, said that the decision was another emotionally draining twist in the survivors’ long struggle for closure.