More Questions to the Trust

Question: Has there been any progress by Silverstein on the number of future claimants?

Answers by Perplexity – Current State (April 6, 2026)

Trust Website (scoutingsettlementtrust.com):

  • 59,410 claims determined as of April 1, 2026

  • Second distributions began March 3, 2026 — weekly batches ongoing

  • Distribution amounts: 3.2% supplemental for those who received the initial 1.5%, or 4.7% total for first-time recipients (minus 1.7% lien reserve if using LRA options)

Judge Silverstein / Future Claimants Dispute:

  • The Trust and STAC believe future claims will be substantially lower than the FCR’s estimate. The FCR filed a Motion for Judicial Resolution of Payment Percentage Dispute on Feb 20, 2026, and an order granting that motion was entered the same day.

  • A hearing was held around March 11-12 before Judge Silverstein — no formal ruling has appeared yet on the docket.

  • As of March 13, 2026, all new filings must go under Delaware BSA, LLC, Case No. 20-10342 (the original 20-10343 case received a Final Decree).

    Update on the Boy Scouts of America Bankruptcy Case

    Thursday, March 19, 2026

    Update on the Boy Scouts of America Bankruptcy Case

     Beginning March 13, 2026, all legal documents, requests, and filings connected to the Boy Scouts bankruptcy cases — including anything related to abuse claims or the settlement trust — must be filed in the case of Delaware BSA, LLC, Case No. 20-10342. 

     To view filings made prior to March 13, 2026, please continue to review Case No. 20-10343, Boy Scouts of America.

What the ruling will determine: If Silverstein sides with the FCR’s higher estimate, no additional funds beyond the current 3.2% supplemental. If she sides with the Trust’s lower estimate, further distributions become possible from escrowed funds.

  • Question: Is the 3.2% all that we will likely ever get?
  • What is going on with the bad faith lawsuits in Texas?

Answer by Perplexity – The Core Case: Houser v. Allianz et al.

Trustee Barbara J. Houser filed suit in July 2023 in the U.S. District Court for the Northern District of Texas (Case No. 3:23-CV-1592) against approximately 83 non-settling insurance companies, asserting claims for declaratory judgment, breach of contract, bad faith, and violations of the Texas Insurance Code. The Trust estimates these holdout insurers owe roughly $4.2–4.4 billion in coverage obligations, with demand letters totaling around $6.99 billion sent by mid-2025.

Recent Key Developments

Venue fight decided — insurers lost. In February 2026, Judge Karen Gren Scholer denied a motion by National Surety and Allianz to dismiss or transfer the case to Illinois state court. She found the Illinois case involves only 21 insurers (12 overlapping with the Texas suit) and is not an adequate alternative forum. The private and public interest factors — including BSA’s Texas headquarters and the likelihood Texas law applies — all weighed in favor of keeping the case in Dallas.

Allianz escalated to the Fifth Circuit. In March 2026, Allianz filed a writ of mandamus with the Fifth Circuit, asking it to force a transfer or dismissal. Survivor community observers note the Fifth Circuit’s oral argument calendar is booked through June 2026, with the earliest hearing possibly in September 2026, potentially pushing resolution into 2027.

Mediation is underway. Judge Scholer previously appointed former Chief Judge Barbara Lynn as mediator. Some holdout insurers may settle rather than litigate, which would accelerate Trust cash flow. Attorney updates from mid-March 2026 suggest insurers may have until year-end 2026 to resolve their obligations before bad faith liability crystallizes.

Why Texas Matters

This venue is strategically important for the Trust. Under Texas Insurance Code Chapters 541 and 542 and the Stowers doctrine, insurers found to have acted in bad faith face uncapped damages, treble damages for knowing violations, and 18% annual penalties for prompt-payment violations. Illinois, where the insurers wanted the case heard, does not offer the same exposure.

Impact on Survivor Payouts

The bankruptcy plan is now fully final after the Supreme Court denied certiorari and the Lujan plaintiffs missed their rehearing deadline. The ~$1.65 billion escrow from settling insurers is being released for a second distribution. But the outcome of this Texas litigation against the holdout 83 insurers is the largest variable determining whether the Trust’s total recovery approaches the theoretical $7+ billion or stays closer to the current ~$2.4 billion committed.

The case is still in its early stages procedurally — the amended complaint has been filed, defendants are responding, and trial is likely 18+ months out absent significant settlement activity through mediation.

Question to the Trust: Did you bring up that the insurance comanies policies to NOT report these instances to Law Enforcment when they took place, and instructed Local Area Counsels to send all reports of Abuse to Irving Texas headquarters? Sounds like bad faith to me.

Question to the Trust: And, you testified that the Trust owes over $20,000,000,000 to the victims and your calculations are that there is $6.66 Billion in available cliams and cash, so why did you make us choose where the funds came from if that will never matter as far as assets vs policies?

Question to the Trust: How does it feel to be an Epstein Class lawyer, former Judge?