Boy Scouts Bankruptcy
annual Boy Scouts Parade and Report to State at the Texas capitol, Saturday, Feb. 2, 2013, in Austin, Texas. The Boy Scouts of America announced it is considering a dramatic retreat from its controversial policy of excluding gays as leaders and youth members. (AP Photo/Eric Gay)

Boy Scouts Bankruptcy Abuse Deal Paused by Alito Due to Fund Concern

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BestLawyerTips | News – Judge Samuel Alito of the US Supreme Court temporarily halted the Boy Scouts’ bankruptcy plan at the request of former members who were contesting a settlement fund that sought to recompense victims of sexual assault.

The Chapter 11 case is put on hold until the whole Supreme Court gets a chance to comment, thanks to the administrative stay that was imposed on Friday.

Reimbursing claims of opioid abuse should wait until after the justices rule in another case involving a $6 billion bankruptcy settlement, according to alleged abuse victims trying to undo the bankruptcy.

The clauses that release affiliates who are not technically included in the planned bankruptcy reorganization are at the heart of the Boy Scout settlement controversy. Proponents of the $2.46 billion settlement argue that the releases are necessary for the plans to be implemented.

In the case of Harrington v. Purdue Pharma, the justices are debating whether bankruptcy courts have the authority to authorize these releases in relation to a settlement against the OxyContin manufacturer. The pharmaceutical firm is owned by the Sackler family, and releases against them are part of the lawsuit.

Lujan Claimants v. Boy Scouts of America, U.S., No. 23A741 is the case in question.

Article Source: Bloomberg Law



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