SCOTUS Leaves Multibillion-Dollar Boy Scouts Bankruptcy Settlement In Place
The U.S. Supreme Court on Monday declined to revisit a $2.4 billion bankruptcy settlement involving the Boy Scouts of America, rejecting an appeal from a group of childhood sexual abuse victims who argued the agreement improperly blocks future lawsuits against organizations that operated local scouting programs.
The appeal was brought by a cohort of 75 victims — a fraction of the more than 82,000 claimants who have accused the Boy Scouts of abuse — who urged the justices to reconsider the settlement in light of the Court’s 2024 decision involving Purdue Pharma, the manufacturer of OxyContin.
In that closely divided ruling, a 5–4 majority struck down a bankruptcy deal that would have shielded members of the Sackler family from future civil liability, despite their personal fortunes being derived from the opioid business.
In the Boy Scouts case, some victims are seeking to pursue litigation against independent local councils and third-party sponsors, including churches and civic organizations, that supported scouting programs over the years. Under the existing settlement, those third parties contributed billions of dollars to a victims’ compensation trust and, in exchange, received broad protection from future lawsuits.
Opponents of such arrangements argue that bankruptcy courts generally lack the authority to extinguish claims against non-bankrupt third parties. Supporters counter that without those legal protections, massive and complex bankruptcy settlements — including those involving Purdue Pharma and the Boy Scouts — would collapse entirely, leaving victims with little or no compensation.
The Boy Scouts of America filed for bankruptcy protection in 2020 after spending more than $150 million between 2017 and 2019 to resolve a wave of abuse lawsuits, according to court records. A federal bankruptcy court in Delaware approved the reorganization plan in 2022, allowing the organization to emerge from bankruptcy while creating a multibillion-dollar fund for abuse survivors.
Lower courts, including the U.S. Court of Appeals for the Third Circuit, upheld the settlement. The Lujan claimants asked the Supreme Court to intervene in October, but the justices had already rejected an emergency appeal from the same group earlier in 2024.
While the Court did not explain its reasoning, the refusal leaves intact an appellate ruling that concluded the Boy Scouts’ organizational structure largely insulated the settlement from further judicial review.
Court Turns to Transgender Sports Dispute
The Supreme Court is wasting no time moving on to another major cultural and legal flashpoint.
On Tuesday, the justices are scheduled to hear oral arguments in a high-profile dispute over transgender athletes in public school sports — a controversy that has ignited legislative battles in nearly 30 states and raised fundamental questions about fairness, federal law, and the future of women’s athletics.
The Court will consider two cases from Idaho and West Virginia challenging state laws that bar transgender and nonbinary students from competing on female-only sports teams in public schools and colleges. Lower courts previously blocked both laws from taking effect.
Idaho became the first state to enact such restrictions in 2020 with the passage of the Fairness in Women’s Sports Act. West Virginia followed in 2021 with its Save Women’s Sports Act. In 2023, the Supreme Court temporarily halted enforcement of West Virginia’s law while litigation continued.
The lawsuits were filed by Lindsay Hecox in Idaho and Becky Pepper-Jackson in West Virginia. Hecox, a 24-year-old senior at Boise State University, has since moved to dismiss her case as she nears graduation in spring 2026 and no longer plans to compete in women’s sports in Idaho.
Pepper-Jackson, a 15-year-old who has identified as female since third grade, continues to pursue her case. She has competed in girls’ athletics, finishing third in the discus and eighth in the shot put at a state track meet.
Both cases have drawn intense public scrutiny. In West Virginia, two students have alleged that Pepper-Jackson harassed them while attempting to join girls’ sports teams, according to reports.
A ruling, expected by late June 2026, could extend far beyond school athletics, potentially shaping national policy on LGBTQ+ issues in employment, public accommodations, and access to government programs.
The Justice Department under President Donald J. Trump’s second-term administration is backing the state laws, arguing they are essential to preserving competitive fairness and protecting the original intent of Title IX.