A group of sexual abuse victims is asking the Supreme Court to block the Boy Scouts’ $2.46 billion deal pending a decision in two major bankruptcy cases.
On Friday, 144 men who said they were abused as children while in the Boy Scouts filed a petition with the Supreme Court to block surveillance of the youth organization. The people say the deal prevents them from suing non-bankrupt institutions like churches and insurance companies, which is illegal.
The Supreme Court was considering a similar issue (Purdue Pharma bankruptcy) when this petition came up. The pharmaceutical leader has offered to settle thousands of opioid crisis lawsuits in exchange for legal immunity for the Sackler family. The decision is expected in May or June.
“There is a risk that the Third Circuit will dismiss the appeal without addressing the key issue on which the Supreme Court is going to rule in Purdue,” said attorney Gillian Dumas. She represents the 69 men who refused to comply with the Boy Scouts agreement. Let’s challenge.
Scouts Seek Shelter Amid Rising Abuse Claims
In February 2020, the Boy Scouts sought bankruptcy protection as they face mounting state lawsuits over allegations of sexual abuse dating back decades. 82,000 former Scouts ultimately demanded compensation.
Last September, a bankruptcy judge approved a landmark settlement deal worth $2.46 billion. Victims will be paid $3,500 to $2.7 million under the deal. Despite this, the agreement went ahead after receiving support from only 86% of the claimants.
Victims Urge Court to Set Nationwide Precedent
A minority of mistrust says that Stalin should be an example in the country. In particular, what legal freedoms can be given to non-bankrupt churches such as churches?
It is alleged that incompetent leaders are also responsible for the basic establishment of local churches and scouting groups. However, there will be no legal penalty or liability of any kind.
“If the Boy Scouts bankruptcy plan moves forward, there is a risk that the Third Circuit will reject the appeal,” Dumas said.
Top Court Ruling Could Upend Major Bankruptcies
What impact will the Supreme Court’s ruling have on the Boy Scouts agreement? A decision is expected weeks before the Boy Scout victims’ appeal is heard.
The Supreme Court could side with the states if it grants the Sacklers conditional immunity. Similarly, Scout victims want church groups to be held accountable for abuse allegations made against Scout leaders.
A victory for the states and victims would block the Purdue-Boy Scout bankruptcy settlement. Requires alternative disposal or responsibility from external parties.
This decision will set a precedent on the interesting issue of absolving third parties of liability by bankruptcy courts. Struggling between the pursuit of justice for future victims versus final judgment for the influential institutions that enabled the abuse.