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As we previously advised, in mid-May the U.S. Court of Appeals for the Third Circuit dismissed the widest ranging appeals of the Bankruptcy Court’s plan confirmation order. The appeal had been filed by a small group of dissenting sexual abuse Survivors and holdout insurance companies.
As a first step in their appeal process, this small number of dissenting 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. The Third Circuit denied the motion for rehearing en banc on June 13, 2025.
The next step in the dissenters’ appeal process was for them to try to have the Third Circuit’s decision reviewed by the United States Supreme Court. On Friday, August 30, 2025, a subset of the dissenting Survivors filed a motion to extend the time for them to seek review by the Supreme Court. This motion to extend time was granted. Then, on October 14, 2025, these Survivors filed a Petition for Writ of Certiorari with the United States Supreme Court. Through the filing of this petition, these Survivors requested that the Supreme Court review the decision of the Third Circuit in connection with their appeal from confirmation of the BSA plan of reorganization (the “BSA Plan”).
On January 12, 2026, the Supreme Court denied the Survivors’ request that it review the decision of the Third Circuit. As a result of the denial of the petition by the Supreme Court, the Order confirming the BSA Plan is now final. And, importantly, now that the Confirmation Order is final, the remaining proceeds paid by the Settling Insurers under the BSA Plan (approximately $1.65 billion) will be released from escrow and paid to the Trust.
As soon as legally possible following the Trust’s receipt of these additional funds, the Trust will begin making a second distribution to Survivors with allowed claims. The amount of the second distribution, which will be a percentage of each Survivor’s allowed claim amount, is being determined by the Trustee in consultation with the Settlement Trust Advisory Committee and the Future Claims Representative. The Trustee must also determine, in consultation with the Trust’s lien administration firm, the amount that the Trust will hold back from the second distribution to ensure that any medical liens that exist against a Survivor’s recovery from the Trust are satisfied. The Trust is required by law to ensure that these medical liens are satisfied.
The Supreme Court’s decision marks the end of the appellate process and ensures that the important work of the Trust will continue. The Trust will keep Survivors and counsel apprised as further developments occur.
Regards,
Scouting Settlement Trust Team
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The Order from the 3rd Circuit is here:
Judgement