The Supreme Court on Monday declined to hear an appeal challenging a $2.4 billion bankruptcy settlement for the Boy Scouts of America, leaving the deal intact.
The appeal was brought by 75 abuse victims who argued the settlement improperly blocks lawsuits against local scouting councils and third party groups such as churches that sponsored Scout programs.
Those groups contributed billions to a victim compensation trust and received legal protection from future claims under the agreement, according to CNN.
The US Supreme Court has good reason to review and overturn “unlawful” litigation releases contained in the Boy Scouts of America’s $2.46 billion child abuse settlement and bankruptcy plan, a group of survivors said. https://t.co/OeAnDovBZU
— Bloomberg Law (@BLaw) January 1, 2026
The challengers urged the Court to revisit the deal after its 2024 ruling in the Purdue Pharma case, where justices rejected bankruptcy protections for the Sackler family.
Lower courts, however, said the Boy Scouts settlement was structured differently and largely shielded from appellate review.
The Boy Scouts filed for bankruptcy in 2020 amid a wave of abuse claims. A Delaware bankruptcy court approved the plan in 2022, allowing the organization to exit bankruptcy and compensate victims.
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