Boy Scouts of America Update on Appeals and Trust Payments: What You Need to Know
On May 13, 2025, the U.S. Court of Appeals for the Third Circuit issued a ruling that dismissed several outstanding appeals related to the confirmation of the Boy Scouts of America’s bankruptcy plan. These appeals had been filed by certain abuse survivors and non-settling insurance carriers. As a result of this decision, the Settlement Trust has continued processing claims, issuing eligibility decisions, and making initial payments.
One of the parties to the dismissed appeal subsequently requested that the full panel of judges on the Third Circuit reconsider the ruling, a process known as re-hearing en banc. On June 13, 2025, the Third Circuit denied that request. While the appellate options are narrowing, the party still has the ability to seek review by the United States Supreme Court. Whether that step will be taken remains to be seen and is currently under consideration.
Why This Matters
Roughly $1.6 billion in Trust assets remains in escrow and cannot be distributed until the Plan’s confirmation is considered final under the law. Although the Third Circuit has upheld the Plan, the appeal process is not yet fully closed. With the denial of en banc review on June 13, 2025, the only remaining avenue would be a petition to the United States Supreme Court. Unless and until the deadline to file such a petition passes, or the Supreme Court declines to hear the case, the Trust cannot access these escrowed funds for second payments.
Payments & Claim Review
If you have not yet received a decision on your claim, this appellate activity does not interfere with the Trust’s ability to evaluate and process your file. The Trust continues to actively review submissions and issue decisions. If your claim has already been reviewed and a determination issued, the pending appeals do affect the timing of any second payments. Those distributions cannot occur until the $1.6 billion in escrow is released to the Trust.
Additional Litigation Against Non-Settling Insurers
Beyond the appeals, there are over 80 insurers that have not reached settlement with the Trust. The Trustee has filed suit in federal court in Texas to compel payment on those policies. However, that case is paused until the Plan’s confirmation becomes final. Once the appeals conclude, the Trustee will be in a position to pursue that litigation and any proceeds from those recoveries will go into the Trust for the benefit of all survivors.
We are monitoring all appellate activity closely and will continue to provide updates as developments occur.
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