In the ongoing legal case surrounding the Boy Scouts of America’s (BSA) bankruptcy settlement, US Supreme Court Justice Samuel Alito has issued a stay order, in effect pausing proceedings. The order was provided in response to objections from appellants – 67 victims of sexual abuse – who regard the terms of the $2.46 billion settlement as unlawful.
The BSA found themselves amid a flurry of sexual abuse lawsuits and filed for bankruptcy in 2020. Thousands of cases claimed abuse against Scout Leaders. After being approved by a bankruptcy judge in September 2022, a settlement was also upheld by a federal court in March 2023.
However, the appellants argue that this settlement prevents further claims against third parties involved in the abuse. These include insurers, local Scout councils, and churches running scouting programs, none of which are in bankruptcy, effectively granting them immunity.
This case echoes the ongoing Purdue Pharma lawsuits. The Sackler family, who own Purdue Pharma, were granted immunity from further civil lawsuits after agreeing to a $6 billion settlement for victims of the opioid epidemic, another saga they are accused of having a hand in. The Supreme Court heard arguments on these cases on December 4 but have yet to publish an opinion.
In their official application for a stay, the lawyers representing the BSA victims of sexual abuse expressed concern over ongoing dispensation of funds from the settlement. They claim BSA is attempting to “sweep the matter under the rug” before the Supreme Court can issue its ruling in the Purdue case.
Apart from these dissenting victims, there’s also a population that supports the settlement, as stated by Doug Kennedy, co-leader of the committee representing abuse claimants in the bankruptcy process. He criticized the stay order, emphasizing the years that abuse survivors have already waited for justice and highlighted an overwhelming 86% majority of survivors who voted in favor of the settlement.