Overview
The Boy Scouts of America bankruptcy case resolved more than 82,000 claims of childhood sexual abuse through a $2.46 billion settlement trust. The case moved through bankruptcy court, district court, appellate court, and ultimately to the U.S. Supreme Court before the plan became final in January 2026.[6]
The Bankruptcy Filing
In February 2020, the Boy Scouts of America filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. At the time of filing, the organization was facing close to 300 sexual abuse lawsuits.[1]
Chapter 11 bankruptcy is a reorganization process that allows an entity to continue operating while it develops a plan to pay creditors and resolve claims. In this case, survivors of childhood sexual abuse in Scouting were among the claimants whose claims would be addressed through the bankruptcy process.
Plan Approval in Bankruptcy Court
In September 2022, the bankruptcy court approved the Boy Scouts' reorganization plan. The plan included a settlement that had been negotiated for abuse survivors and established a trust to pay their claims.[2]
A reorganization plan in bankruptcy sets out how the debtor will restructure its obligations and how much money will go to different groups of claimants. Court approval of a plan is a major procedural step, but it does not end the case if appeals follow.
District Court Affirmation
On March 28, 2023, the U.S. District Court for the District of Delaware affirmed the bankruptcy court's approval of the reorganization plan.[3]
This ruling came in a case captioned National Union Fire Insurance Co. v. Boy Scouts of America. When a party appeals a bankruptcy court decision, it goes first to the federal district court. The district court's affirmation meant the plan survived its first level of appellate review.
Supreme Court Emergency Application
On February 22, 2024, the U.S. Supreme Court refused an emergency request from 144 claimants to halt the settlement while appeals continued. As a result, the plan stayed in effect.[4]
An emergency application to the Supreme Court is a request for immediate relief before the normal appellate process is complete. The Court's refusal meant that the reorganization plan would continue to be implemented even as other appeals moved forward.
Third Circuit Ruling
On May 13, 2025, the U.S. Court of Appeals for the Third Circuit dismissed the abuse survivors' appeals as statutorily moot and left the plan in place. The court allowed only a minor change sought by certain insurers.[5]
Statutory mootness is a legal doctrine in bankruptcy appeals. When a reorganization plan has been substantially consummated, meaning it has been largely carried out, an appellate court may find that it is too late to undo the plan, even if there were errors below. The Third Circuit's ruling meant that the survivors challenging the plan could not overturn it at that stage.
Final Supreme Court Decision
On January 12, 2026, the U.S. Supreme Court declined to hear the appeal of 75 survivors who challenged the plan. This left the $2.46 billion settlement in place. More than 82,000 people had filed abuse claims in the case.[6]
When the Supreme Court declines to hear an appeal, the lower court's decision stands as final. With this decision, the reorganization plan became final and no further appeals were available.
Also on January 12, 2026, with the Supreme Court declining review, the bulk of the money held in reserve for survivor payments was freed up for the settlement trust.[7]
During the appeals process, funds intended for survivors had been held in reserve because the outcome of the appeals could have affected how the money was distributed. Once the Supreme Court declined review, those funds became available for distribution to claimants through the trust.
Current Status
The Boy Scouts of America reorganization plan is confirmed and final. The Scouting Settlement Trust is now paying claims to survivors who filed in the bankruptcy. The $2.46 billion settlement remains in place following the conclusion of all appeals.[6][7]
The record we track does not show any trial date in this matter. The case was resolved through the bankruptcy process and settlement rather than through trials on the merits of individual claims.
What Is Not Known Yet
It has been reported that the Scouting Settlement Trust began a second round of distributions in March 2026, bringing claimants with allowed awards to a combined 4.7 percent of their determined claim value. This has not been confirmed from a Trust notice.[8]
The record we track does not show how many claims have been evaluated, how many have been paid, or what percentage of claim values survivors are receiving in total. The trust's claim review and payment process is ongoing, but details of that process are not in the court record we follow.
Sources
- In re Boy Scouts of America (Bankr. D. Del.) (2020-02-01). Secondary report: news.bloomberglaw.com
- In re Boy Scouts of America (Bankr. D. Del.) (2022-09-01). Secondary report: gcfa.org
- National Union Fire Ins. Co. v. Boy Scouts of America, 650 B.R. 8 (D. Del.) (2023-03-28). Secondary report: abi.org
- Supreme Court emergency application (2024-02-22). Secondary report: abc7news.com
- In re Boy Scouts of America, No. 23-1664 (3d Cir.) (2025-05-13). Secondary report: jonesday.com
- No. 25-490 (U.S.) (2026-01-12). Secondary report: deseret.com
- No. 25-490 (U.S.) (2026-01-12). Secondary report: news.bloomberglaw.com
- Scouting Settlement Trust (2026-03-03). Secondary report: lawfold.com
Litigation facts on this page come from the TortIntel litigation record and the documents linked above. Last checked against that record on 2026-10-24. If you see an error, tell us and we will correct it.