Today, the U.S. Supreme Court issued a stay on the Boy Scouts of America Chapter 11 bankruptcy case following a group of survivors’ requests to halt the case due to non-consensual, third-party liability releases in the Boy Scouts Bankruptcy plan.
“Our heart aches, and our heart breaks for all the survivors who are now up against more delays. The reorganization and the bankruptcy of the Boy Scouts is emblematic of a bankruptcy system that revictimizes survivors,” said Jeff Anderson. “The years of delays, denials, and deceits by wrongdoers in the Boy Scouts bankruptcy case will not break survivors’ spirits. We will continue to fight and stand with the survivors to make sure there is expedition and accountability.”
This stay provides the Supreme Court with more time to decide on a request by the survivors to block the settlement from moving forward. This issue is whether the Boy Scouts of America bankruptcy plan can stop certain survivors from pursuing lawsuits against Boy Scouts councils and chartered organizations.
In December 2023, the Supreme Court heard arguments over a bankruptcy deal for Purdue Pharma that would provide billions of dollars to those harmed by the opioid epidemic in exchange for shielding members of the wealthy Sackler family. The core issue discussed is whether a bankruptcy plan can give legal releases to third parties who do not declare bankruptcy such as members of the Sackler family, who once controlled Purdue Pharma.
On February 17, 2020, the Boy Scouts of America announced its filing for Chapter 11 Bankruptcy. Over 80,000 survivors who were abused while participating in the Boy Scouts of America filed lawsuits during the bankruptcy.