“The Trust will reach out to Claimants prior to issuing the next distribution and Claimants will be able to provide updated payment information at that time. At this time, no additional payment information is needed.
The Trust does not know how much Claimants will receive on allowed claims, but it almost certainly will not be 100% of the allowed amount. Ultimately, the amount the Trust will be able to pay on each allowed claim will depend on the factors explained in FAQ 16.3. The factors that affect the calculation for future distributions include total available funds and the value of all allowed claims.
As explained in FAQ 16.4, when the appeals from confirmation of the BSA plan are concluded and confirmation of the BSA plan is upheld, additional money will be paid to the Trust in the approximate amount of $1.5 billion. Moreover, the Trust has been in the process of liquidating certain assets it received on the Effective Date of the plan, including interests in hundreds of oil and gas properties and an art collection. The Trust will also collect on notes receivable as those note payments are due.
Finally, the Trustee filed a lawsuit against nearly 100 insurance companies in order to enforce rights assigned to the Trust by BSA and the Local Councils under thousands of insurance policies. The value of the Trust’s rights under those insurance policies could be several billion dollars. This insurance coverage litigation is extraordinarily complex and unless it is able to be settled on reasonable terms, it could take years to litigate to final conclusion.
On May 13, 2025, the U.S. Court of Appeals for the Third Circuit dismissed the widest ranging appeals of the Bankruptcy Court’s plan confirmation order, which had been filed by a small group of dissenting sexual abuse Survivors and holdout insurance companies.
On May 27, 2025 the small group of dissenting sexual abuse Survivors filed a motion for rehearing en banc with the Third Circuit, seeking to have the entire Court review the three-judge panel’s May 13 decision dismissing their appeal. It is unclear if this motion for rehearing en banc will be granted and/or how long it may take for the Court to decide the merits of the issues raised on rehearing. Once the en banc court rules, it is still possible that a losing party may seek to have the decision further reviewed by the United States Supreme Court.
These delays mean that the funds necessary for a second distribution from the Trust to Survivors with allowed claims will remain in escrow until all appeals are exhausted and the plan confirmation order becomes a final order. However, the Third Circuit’s May 13 decision is a crucial step in getting to a final confirmation order.
In the meantime, the Trust’s essential work of determining claims and providing an initial distribution to Survivors of sexual abuse in Scouting with allowed claims will continue without interruption. The Trust will keep Survivors and counsel apprised as further developments occur.
The Trust has now determined more than half of the Matrix claims, so our ability to predict the value of all allowed claims is improving. The Trustee will determine the amount of the second distribution as soon as possible after the Order confirming the BSA plan becomes final and certain monies currently being held in escrow are released to the Trust. Once the percentage available for a second distribution has been determined, the Trust will begin making the second distribution to Survivors with allowed claims.
For additional information regarding distributions, please review FAQ 16.”
