SurvivingScouting.org


Purdue Bankruptcy Ruling Casts New Doubt on Boy Scouts Plan for Abuse Victims
Date Shared: June 29th, 2024
Date Released: June 27th, 2024
Source: wsj.com

Excerpt


The youth group’s chapter 11 plan includes the type of nonconsensual releases disallowed by the high court

The Supreme Court’s ruling against Purdue rejected a legal construct that is also central to the Boy Scouts’ chapter 11 plan, which was approved in bankruptcy court in 2022. Photo: Christopher Millette/Associated Press
The Boy Scouts of America’s multibillion-dollar settlement of sex-abuse claims faces a fresh legal threat after the Supreme Court struck down a chapter 11 bankruptcy plan for Purdue Pharma sharing some key features.

The high court’s ruling against Purdue on Thursday rejected a legal construct that is also central to the Boy Scouts’ chapter 11 plan, now under review by a federal appeals court in Philadelphia. The Boy Scouts used bankruptcy to forge a settlement with abuse victims that resolved claims against thousands of other churches and nonprofits tied to scouting.