U.S. Supreme Court Rejects Challenge to Boy Scouts’ $2.46 Billion Sex Abuse Settlement

The U.S. Supreme Court on Monday declined to hear an appeal challenging the Boy Scouts of America’s landmark $2.46 billion settlement over decades of sex abuse claims, effectively clearing the way for the compensation process to continue. The case was brought by 75 abuse survivors who argued that the bankruptcy agreement unfairly blocked them from suing churches and other organizations that operated scouting programs where the alleged abuse occurred.

Scouting America, the organization formerly known as the Boy Scouts of America, welcomed the decision, saying it can now move forward without the ongoing uncertainty of bankruptcy-related litigation. CEO Roger Krone said the settlement trust has already paid around $300 million and will resume evaluating and paying additional claims now that the appeals have ended. He added that the settlement trustee, Barbara Houser, is working to increase funds by pursuing insurers and selling assets, including artwork by Norman Rockwell and Joseph Csatari.

Lawyer Joshua Schwartz, co-counsel for more than 9,500 abuse survivors, said the Supreme Court’s action will allow the trust to access $1.65 billion that had been held in escrow during the appeals process. The settlement, finalized in 2022 in Delaware bankruptcy court, granted immunity to contributing organizations, a provision contested by the petitioners. While the Supreme Court has ruled separately that bankruptcy courts generally cannot release non-bankrupt parties from liability, that ruling did not apply retroactively to older cases such as the Boy Scouts’ reorganization.

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