Sex abuse victims suing the Boy Scouts of America have asked the Supreme Court to put the $2.46 billion bankruptcy settlement on hold while they appeal, noting that the justices are weighing the legality of third-party releases in the Purdue Pharma bankruptcy case.
A group of 144 victims asked the high court this month to prevent the bankruptcy plan from being implemented in the U.S. Bankruptcy Court for the District of Delaware.
They say the plan would preclude their lawsuits against other parties. They point to the Supreme Court weighing whether bankruptcy plans can authorize third-party releases without consent in a case heard this term involving Purdue Pharma and the family behind the opioid OxyContin.
“Abuse Claimants strongly disagree with the district court’s conclusion that they will be fully compensated for their sexual abuse under the bankruptcy plan.” the victims’ lawyers said in the court filing submitted Friday.
A spokesperson for the Boy Scouts of America did not immediately respond to a request for comment.
More than 80,000 sex abuse victims have sued the Boy Scouts of America over alleged abuse they suffered years ago.
Their bankruptcy settlement plan would allow the Scouts to keep operating during its reorganization.
Critics of the settlement say it would release other parties from future liability. They say the plan should be put on hold while the justices decide a case they’ve heard but have not yet ruled on involving Purdue Pharma and whether its settlement plan can release the Sackler family from future lawsuits.
A decision in the Purdue Pharma case is expected to be issued by the end of June.