Supreme Court Declines Boy Scouts Settlement Challenge

The U.S. Supreme Court has declined to hear a challenge against the Boy Scouts of America's $2.46 billion settlement of sex abuse claims. The settlement, reached in 2022, provided immunity to certain organizations. Plaintiffs argued they should still be able to sue these organizations, but the decision was upheld.

The U.S. Supreme Court has opted not to hear a challenge against a monumental $2.46 billion settlement involving the Boy Scouts of America's sex abuse claims. The decision affects a group of survivors seeking lawsuits against churches and other organizations involved in scouting programs where abuse transpired.

A lower court's ruling, which was appealed by 144 plaintiffs, determined that the bankruptcy settlement improperly shielded certain organizations from lawsuits, prompting the appeal. The 2022 Delaware bankruptcy court agreement granted these groups immunity in return for their contributions to the settlement fund, but the Supreme Court previously ruled that bankruptcy courts lack jurisdiction to cancel lawsuits against non-bankrupt parties.

Despite the setback for the plaintiffs, the 3rd U.S. Circuit Court of Appeals supported the lower court's decision, stating that undoing the settlement would be unfair to survivors and the Boy Scouts, now Scouting America. They argued that dismantling the agreement would have profound emotional and financial repercussions. The Boy Scouts filed for bankruptcy in response to numerous lawsuits following law changes that enabled the pursuit of historical abuse claims.

(With inputs from agencies.)