In a twist of legal proceedings, Supreme Court Justice Samuel Alito intervened on Friday, temporarily stalling the Boy Scouts of America’s colossal $2.46 billion settlement over decades of sexual abuse allegations. This move comes amidst an appeal lodged by a group of 144 claimants who argue that the settlement unjustly shields non-bankrupt entities like churches, local scouting councils, and insurers from potential lawsuits.
Alito’s swift action suspends the settlement, providing the court with additional time to deliberate on the appeal filed on February 9. The contention revolves around whether claimants should be barred from pursuing legal action against organizations not mired in bankruptcy.
The settlement, spanning more than 82,000 individuals who allege abuse during their time in the Boy Scouts, is now put on hold. This abrupt delay, described as “horrible” by abuse survivor and committee co-leader Doug Kennedy, dashes the hopes of many who have long awaited resolution. Kennedy lamented the setback, emphasizing the toll it takes on survivors who have already endured decades of anguish.
Meanwhile, trustee Barbara Houser, tasked with overseeing the settlement, confirmed that Alito’s order halts all progress, including the evaluation of claims and disbursement of funds to survivors. Despite dispersing nearly $8 million to over 3,000 claimants, the suspension brings the process to an abrupt standstill.
While the Boy Scouts organization expresses hope for a swift resolution, attorneys representing appellants welcome the temporary halt as a validation of their legal arguments. With the Supreme Court already embroiled in a similar case involving Purdue Pharma’s bankruptcy, the legal intricacies surrounding the Boy Scouts settlement amplify the complexity of the situation.
The bankruptcy filing by the Boy Scouts in 2020, spurred by changing state laws allowing accusers to pursue aged abuse allegations, initiated a protracted legal battle. Despite court approval of the settlement in 2022, dissenting claimants assert the necessity of immediate action, citing a looming deadline for claimants to opt into a more rigorous review process for their claims.
As the legal saga unfolds, the fate of thousands of abuse survivors remains in limbo, awaiting the outcome of the Supreme Court’s deliberations on this pivotal case.
