In a recent turn of events, a group of claimants in the Boy Scouts of America (BSA) sex abuse case have requested a pause to the organization's bankruptcy settlement plan. This move comes in response to the U.S. Supreme Court's decision to hear a challenge regarding Purdue Pharma LP’s $6 billion opioid deal.

The Supreme Court will be considering whether the U.S. bankruptcy code allows for the release of claims, without consent, against individuals and entities linked to a bankrupt company but not themselves bankrupt. These are known as third-party, nonconsensual discharges, and they are among the most contentious issues in Chapter 11 bankruptcy.

These discharges were a significant point of contention in the BSA's bankruptcy plan, which aimed to settle decades worth of sex abuse claims filed by former Scouts. The claimant group argues that the BSA's $2.64 billion plan should be paused, as a decision in the Purdue case could occur while their own case is still under appeal.

The claimant group suggests that a stay of the plan would conserve funds that might otherwise be spent on implementing a plan that could be invalidated if the Supreme Court rules against non consensual third-party releases.

The claimants also noted that the settlement trust, established to distribute funds to survivors, has not yet disbursed the money. Therefore, a pause wouldn't negatively impact claimants. Tens of thousands of former Boy Scouts stand to receive compensation for alleged childhood sexual abuse.

In addition to these developments, the Trustee, Hon. Barbara J. Houser (Ret.), has announced the opening of the claims processing portal to all claimants, marking a significant step towards delivering compensation and justice to survivors.

Previously, the claims processing portal was launched on August 4 for approximately 7,000 claimants who chose the Expedited Distribution Abuse Claim option. Now, an estimated 75,000 claimants or their counsel will receive credentials to access the portal. This will allow them to complete the Trust Claims Questionnaire and submit supporting documentation for the trustees review.

Despite The Boy Scouts of America announcing in April that the settlement had come into effect, the Third Circuit rejected the claimants' initial request to pause the bankruptcy plan. The Supreme Court has announced it will hear the Purdue case in December which could be a pivotal point for claims distribution in the case against The Boy Scouts of America.

Should you have a case against the Boy Scouts of America and have further questions please reach out to your attorneys office. If you or someone you know has been effected by Childhood Sexual abuse please understand there are resources available such as the National Sexual Assault Hotline (1-800-656-4673).

While this article provides general legal information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer.