Supreme Court leaves multibillion-dollar Boy Scouts bankruptcy settlement in place

The Supreme Court on Monday declined to review the $2.4 billion bankruptcy settlement for the Boy Scouts of America, effectively upholding the agreement and disappointing a group of childhood sex-abuse victims. These 75 victims argued the settlement unlawfully prevented them from suing local scouting programs and affiliated organizations like churches and civic groups, seeking to reopen the case based on the Court’s prior ruling in the Purdue Pharma case.

The dispute centers on whether independent councils and third-party organizations that contributed billions to a victim compensation trust should be shielded from future lawsuits. Critics argue courts shouldn’t authorize blocking such suits, while supporters contend that without these protections, large bankruptcy settlements would be impossible. The Boy Scouts filed for bankruptcy in 2020 after significant payouts for abuse lawsuits.

Lower courts had previously upheld the settlement, and the Supreme Court’s decision, though without stated reasoning, reinforces the appeals court finding that the settlement’s structure limited appellate review. This outcome leaves the reorganization plan intact, allowing the Boy Scouts of America to reemerge and a fund to compensate victims to proceed as planned.

(Source：Cnn)