Supreme Court pauses Boy Scouts of America’s $2.46 billion bankruptcy settlement
Justice Samuel A. Alito Jr. grants sex abuse victims' request to pause BSA bankruptcy plan
Earlier this month, a group of sex abuse victims asked the justices to place the billion-dollar settlement on hold while they appeal, noting that the justices are considering a similar matter in a different dispute — the legality of third-party releases in the Purdue Pharma bankruptcy case.
The 144 victims asked the high court to prevent the Boy Scouts of America’s bankruptcy plan from being implemented in the U.S. Bankruptcy Court for the District of Delaware, saying the plan would preclude their lawsuits against other parties. They point to the Supreme Court weighing whether bankruptcy plans can authorize third-party releases without consent in the case involving Purdue Pharma and the family behind the opioid OxyContin.
“Abuse Claimants strongly disagree with the district court’s conclusion that they will be fully compensated for their sexual abuse under the bankruptcy plan.” the victims’ lawyers said in the court filing submitted Feb. 9.
Lawyers for the Boy Scouts of America responded in their court filing, saying the court should not pause the deal because many parties have been relying on it — and that many sex abuse victims are awaiting to be compensated.
“The organization has acknowledged that thousands of young people were sexually abused in Scouting — the vast majority (80%) before 1988. [Boy Scouts of America] cannot understate how deeply it regrets that abuse. It has spent more than four years and expended most of its financial resources to prosecute the bankruptcy case and compensate Scouting-abuse survivors,” the filing read.
Monday, February 19, 2024
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