A federal appeals court has delivered a final blow to attempts to reverse the Boy Scouts of America’s landmark $2.46 billion sex abuse settlement. In a ruling that affirms the youth organization’s legal victory, the court emphasized that the appeals came too late, following the Boy Scouts’ emergence from bankruptcy two years ago.
This settlement, reached in 2022 after a lengthy legal battle, had been contested by a small group of abuse survivors who argued that it was flawed due to provisions that shielded non-bankrupt entities—such as local Boy Scouts councils and churches—from lawsuits. These organizations were granted legal immunity in exchange for financial contributions to the settlement fund, despite not filing for bankruptcy themselves.
However, this argument did not sway the Philadelphia-based 3rd U.S. Circuit Court of Appeals. The court found that the Boy Scouts’ case had already been substantially completed, with survivors receiving over $125 million in payments, rendering any attempt to unravel the agreement impractical. The ruling stands in contrast to a recent U.S. Supreme Court decision in the Purdue Pharma bankruptcy, which rejected similar legal protections for non-debtors.
Gilion Dumas, representing the appellants, expressed disappointment over the rejection, calling it a “technicality.” She argued that the settlement would not fully compensate victims, as there was insufficient money to cover all claims. In response, the Boy Scouts, now operating as Scouting America since 2023, celebrated the ruling as a victory for survivors, highlighting the long-overdue justice it would bring to many victims.
Attorney Adam Slater, representing those in favor of the settlement, underscored that the ruling would ensure meaningful compensation for the survivors, many of whom have waited decades for justice.
The Boy Scouts had filed for bankruptcy in 2020, following changes in state laws that allowed victims to file lawsuits for abuse that occurred decades ago. By 2023, the organization had exited bankruptcy, but the case remains a complex and controversial chapter in the ongoing fight for accountability.
While the court recognized the case as unique and acknowledged that a similar settlement plan might face rejection today, it emphasized the importance of delivering some measure of justice to the survivors, even if imperfect. The ruling underscores the difficult balance between legal procedures and the human reality of those affected by the abuse.
