Supreme Court Dismisses Appeal Against $2.46 Billion Boy Scouts Sexual Abuse Settlement

On Monday, the U.S. Supreme Court made a significant decision by declining to hear a challenge regarding the Boy Scouts of America’s historic $2.46 billion settlement related to sex abuse claims. This case involved a group of abuse survivors who sought to pursue lawsuits against churches and other organizations that were associated with scouting programs where the abuse took place.

The justices dismissed an appeal from 75 plaintiffs who contested a lower court’s ruling. They argued that the bankruptcy settlement improperly barred them from suing other organizations that bore partial responsibility for the abuse.

In light of this ruling, the Boy Scouts organization, now known as Scouting America, expressed relief. The organization stated that it can now proceed with compensating abuse survivors and enhancing its scouting programs without the ongoing burden of bankruptcy and litigation.

Related: Boy Scouts of America Bankruptcy Plan Upheld Despite Insurers’ Objections

“When you’re in bankruptcy, you don’t do a lot of investment in anything but getting out of bankruptcy,” remarked Scouting America CEO Roger Krone in an interview.

To date, the settlement has already disbursed approximately $300 million to abuse survivors. With the appeals now resolved, Krone indicated that efforts would resume on claims evaluation and payment. Barbara Houser, the settlement trustee for Scouting America, is actively working to increase the total settlement amount by pursuing claims against insurers and liquidating assets owned by the organization, including valuable artworks by Norman Rockwell and Joseph Csatari.

“For the survivors who are worried about there being adequate funds, there are significantly more funds that will be available to the trustee than the $2.46 billion that she has today,” Krone added.

Outside of the bankruptcy proceedings, Scouting America has also focused on modernizing its scouting programs and enhancing safety measures for the digital age. This includes updating training to prevent online predation and implementing modern reporting tools, such as an anonymous text hotline for reporting abuse allegations, according to Krone.

An attorney representing the 75 petitioning abuse survivors did not immediately respond to requests for comment.

The settlement, which was reached in 2022 in a Delaware bankruptcy court, granted immunity from lawsuits to organizations that contributed to the Boy Scouts’ bankruptcy settlement. Although the Supreme Court later ruled that bankruptcy courts lacked the authority to eliminate lawsuits against organizations that contributed to settlements but did not file for bankruptcy themselves, this decision did not apply retroactively to older cases like the Boy Scouts bankruptcy.

After a federal judge ruled against the plaintiffs, the 3rd U.S. Circuit Court of Appeals in Philadelphia upheld that decision.

Scouting America, along with insurers and abuse survivors who support the settlement, urged the Supreme Court not to take the case, arguing that overturning the settlement would have devastating emotional and financial repercussions.

While the appeal was supported by other abuse survivors who did not join the petition to the Supreme Court, a group representing 1,000 former Boy Scouts had advocated for the Supreme Court to hear the case, allowing abuse survivors their day in court.

The Boy Scouts filed for bankruptcy in 2020 after several U.S. states enacted laws permitting accusers to sue over decades-old abuse allegations, resulting in a surge of new lawsuits.

Previously, the Supreme Court declined to halt the settlement in 2024, allowing the deal to proceed while appeals were ongoing in lower courts.

On Monday, the U.S. Supreme Court made a significant decision by declining to hear a challenge regarding the Boy Scouts of America’s historic $2.46 billion settlement related to sex abuse claims. This case involved a group of abuse survivors who sought to pursue lawsuits against churches and other organizations that were associated with scouting programs where the abuse took place.

The justices dismissed an appeal from 75 plaintiffs who contested a lower court’s ruling. They argued that the bankruptcy settlement improperly barred them from suing other organizations that bore partial responsibility for the abuse.

In light of this ruling, the Boy Scouts organization, now known as Scouting America, expressed relief. The organization stated that it can now proceed with compensating abuse survivors and enhancing its scouting programs without the ongoing burden of bankruptcy and litigation.

Related: Boy Scouts of America Bankruptcy Plan Upheld Despite Insurers’ Objections

“When you’re in bankruptcy, you don’t do a lot of investment in anything but getting out of bankruptcy,” remarked Scouting America CEO Roger Krone in an interview.

To date, the settlement has already disbursed approximately $300 million to abuse survivors. With the appeals now resolved, Krone indicated that efforts would resume on claims evaluation and payment. Barbara Houser, the settlement trustee for Scouting America, is actively working to increase the total settlement amount by pursuing claims against insurers and liquidating assets owned by the organization, including valuable artworks by Norman Rockwell and Joseph Csatari.

“For the survivors who are worried about there being adequate funds, there are significantly more funds that will be available to the trustee than the $2.46 billion that she has today,” Krone added.

Outside of the bankruptcy proceedings, Scouting America has also focused on modernizing its scouting programs and enhancing safety measures for the digital age. This includes updating training to prevent online predation and implementing modern reporting tools, such as an anonymous text hotline for reporting abuse allegations, according to Krone.

An attorney representing the 75 petitioning abuse survivors did not immediately respond to requests for comment.

The settlement, which was reached in 2022 in a Delaware bankruptcy court, granted immunity from lawsuits to organizations that contributed to the Boy Scouts’ bankruptcy settlement. Although the Supreme Court later ruled that bankruptcy courts lacked the authority to eliminate lawsuits against organizations that contributed to settlements but did not file for bankruptcy themselves, this decision did not apply retroactively to older cases like the Boy Scouts bankruptcy.

After a federal judge ruled against the plaintiffs, the 3rd U.S. Circuit Court of Appeals in Philadelphia upheld that decision.

Scouting America, along with insurers and abuse survivors who support the settlement, urged the Supreme Court not to take the case, arguing that overturning the settlement would have devastating emotional and financial repercussions.

While the appeal was supported by other abuse survivors who did not join the petition to the Supreme Court, a group representing 1,000 former Boy Scouts had advocated for the Supreme Court to hear the case, allowing abuse survivors their day in court.

The Boy Scouts filed for bankruptcy in 2020 after several U.S. states enacted laws permitting accusers to sue over decades-old abuse allegations, resulting in a surge of new lawsuits.

Previously, the Supreme Court declined to halt the settlement in 2024, allowing the deal to proceed while appeals were ongoing in lower courts.