BSA Lawsuit Update (2026), Supreme Court Just Cleared $2.46 Billion For 82,000 Boy Scout Abuse Survivors
The U.S. Supreme Court declined on January 12, 2026 to hear a challenge to the Boy Scouts of America’s $2.46 billion settlement, finally clearing the way for payments to 82,000 sexual abuse survivors after years of delays. The Settlement Trustee cannot yet issue a second payment to claimants because $1.5 billion currently held in escrow will remain there until the appeals of the bankruptcy plan are complete. But with the Supreme Court’s rejection, that money should start flowing soon.
This affects you if you filed a claim as a Boy Scout sexual abuse survivor, if you’re considering filing a claim but haven’t yet, or if you’re monitoring when the second round of payments will arrive. After receiving only 1.5% of your claim value in initial payments, understanding when full compensation arrives matters.
What Is the BSA Lawsuit?
Background on the Boy Scouts Sexual Abuse Case
The Boy Scouts of America (BSA) filed for Chapter 11 bankruptcy on February 18, 2020, in the United States Bankruptcy Court for the District of Delaware (Case No. 20-10343). The organization faced overwhelming financial pressure from thousands of sexual abuse lawsuits filed by former Scouts claiming they were abused by troop leaders and other adults in Scouting programs.
Reports of sexual abuse within the organization date back decades, with internal records known as the “Perversion Files” documenting cases from the mid-20th century. These files, released by court order in 2012, revealed the BSA had knowledge of abuse but often failed to report it to authorities.
Several states enacted “lookback window” laws in the late 2010s, allowing survivors to file lawsuits over decades-old abuse regardless of statutes of limitations. This legal change triggered a flood of litigation the BSA couldn’t financially survive without bankruptcy protection.
The $2.46 Billion Settlement Structure
The settlement fund was proposed as part of the Chapter 11 proceedings, with approximately 82,000 survivors who filed claims. The money comes from multiple sources:
Boy Scouts of America contributions: The national organization sold assets including camps, art, land, and leases to fund the settlement. Local councils were required to contribute at least $515 million and divested numerous properties.
Sponsoring organizations: The United Methodist Church contributed $30 million under a December 2021 agreement. The Church of Jesus Christ of Latter-day Saints initially offered $250 million, though the final contribution was renegotiated. Catholic parishes and Presbyterian churches also participated.
Insurance settlements: Approximately $1.65 billion in escrowed funds from settling insurers awaited release pending a final Confirmation Order.
These organizations received third-party releases in the settlement, shielding them from future lawsuits—a provision that triggered the legal challenges that delayed payments.
What Is the Latest BSA Lawsuit Update as of January 2026?
Supreme Court Rejection Clears Path for Payments
The justices turned away an appeal by 144 plaintiffs of a lower court’s decision rejecting their claim that the bankruptcy deal improperly prevented them from suing other organizations that were partly liable for the abuse.
This small group of survivors argued the settlement unlawfully shielded non-bankrupt entities like local councils and churches from lawsuits. The filing of a high court petition kept on hold a bankruptcy settlement trust’s ability to access and distribute roughly $1.5 billion in funds being held in escrow for scouting abuse survivors, who have so far been limited to 1.5% recoveries on their claims.
The Supreme Court previously declined to halt the settlement in February 2024, allowing the deal to move forward while appeals proceeded.
What This Means for Survivors
The January 12, 2026 Supreme Court decision is final. The 144 objecting survivors cannot pursue further appeals. The settlement, reached in 2022 in bankruptcy court in Delaware, granted immunity from lawsuits to those organizations in exchange for contributions to the Boy Scouts bankruptcy settlement.
With all appeals exhausted, the Settlement Trustee can now access the $1.5 billion in escrow and begin distributing second payments to the 82,000 claimants.
Timeline for Second Payments
The Settlement Trustee will continue to review and make determinations on claims. While no official date has been announced, legal experts expect the second distribution to begin within 2-6 months after the Supreme Court decision.
The Scouting Settlement Trust, administered by Trustee Barbara Houser, manages the claims process and distributions. Survivors can check their claim status at the official settlement website.
Who Is Affected and How Much Compensation Is Available?
Who Qualifies as a Claimant
You’re part of this settlement if you filed a claim during the bankruptcy proceedings alleging you were sexually abused while participating in Boy Scout activities. The deadline to file claims passed years ago—this settlement only covers the approximately 82,000 survivors who already submitted claims.
The class includes survivors from across all 50 states, spanning multiple decades of abuse. The majority of the 82,000 survivors who filed claims voted in favor of the settlement.
Payment Amounts and Distribution
Initial payments: Survivors received approximately 1.5% of their allowed claim amounts in initial distributions. Claims are worth tens or hundreds of thousands of dollars according to claim evaluations.
Total compensation: The $2.46 billion fund will be divided among all allowed claims based on a Trust Distribution Procedures (TDP) framework. The TDP assigns different values to claims based on factors like:
- Type of abuse alleged
- Duration and frequency of abuse
- Age when abuse occurred
- Evidence supporting the claim
- Psychological and physical harm suffered
Estimated individual payments: While exact amounts vary dramatically based on each claim’s severity, survivors with allowed claims should eventually receive their full evaluated amount minus the 1.5% already paid.
Payment timeline: Second payments expected in 2026 once escrowed funds are released. Additional distributions may follow as the Trust resolves litigation against non-settling insurers.
Claims Process Status
The Trust continues reviewing claims and making determinations. Some claims have been challenged as potentially fraudulent. The Trustee has processes in place to identify and remove fraudulent claims before making additional distributions.
If you filed a claim and haven’t heard about your claim status, check the Scouting Settlement Trust website or contact the Claims Administrator.
What You Must Know About Your Rights
Understanding Your Legal Protections
Settlement release: If you’re part of the settlement class, you released claims against the BSA, local councils, sponsoring organizations (churches, schools, etc.), and settling insurers. You cannot sue these entities for abuse covered by your claim.
Third-party releases: The controversial provision that delayed this settlement shields over 100,000 entities including churches and local councils from lawsuits, even though they didn’t file bankruptcy themselves. The Supreme Court’s ruling means this protection is final.
Statute of limitations: Many states have extended or eliminated statutes of limitations for childhood sexual abuse claims. However, the bankruptcy settlement supersedes these state laws for BSA-related abuse.
Right to object: The objection period ended years ago. If you didn’t object during the bankruptcy proceedings, you’re bound by the settlement terms.
How Mass Tort Bankruptcy Settlements Work
Bankruptcy proceedings: When an organization files Chapter 11 bankruptcy, it can propose a reorganization plan that includes settling mass tort claims (claims by many individuals for similar harm).
Creditor voting: Claimants vote on whether to accept the proposed plan. A substantial majority of claimants voted in favor of the plan.
Court approval: Bankruptcy judges review settlements to ensure they’re fair and reasonable. Judge Laurie Selber Silverstein approved the BSA plan despite objections.
Trust administration: After approval, a settlement trust manages claims review, evaluation, and payments. The trust operates independently from the debtor organization.
Appeals process: Unhappy claimants can appeal, which occurred here. A 3rd U.S. Circuit Court of Appeals panel signaled reluctance to overturn the deal, citing the impracticality of undoing a finalized settlement.
Recent Litigation Developments
The Settlement Trustee cannot yet issue a second payment to claimants due to ongoing litigation against non-settling insurers. This separate litigation continues in federal court and is unlikely to reach trial for at least 24 months.
However, the escrowed $1.5 billion from settling insurers is now available for distribution following the Supreme Court’s rejection of appeals.
What to Do Next If You’re a Survivor
Monitor Your Claim Status
Check the official website: Visit the Scouting Settlement Trust website for updates on payment timelines and claim reviews.
Verify your claim was accepted: Ensure your claim received an allowed determination. If you haven’t received notification, contact the Claims Administrator.
Update your contact information: Make sure the Trust has your current mailing address and email. Payments and important notices are sent to the address on file.
Watch for scams: Only trust information from official sources. The Settlement Trust will never ask you to pay fees to receive your compensation.
Understand What to Expect
Second payment timing: Expect announcements in coming months about when second distributions will occur and how much you’ll receive.
Additional distributions: The Trust may make multiple distributions over time as it resolves remaining insurance litigation and collects additional funds.
Tax implications: Settlement payments for personal physical injuries or sickness are generally not taxable under federal law. However, portions allocated to emotional distress unrelated to physical injury might be taxable. Consult a tax professional.
Documentation: Keep all correspondence from the Settlement Trust and Claims Administrator. Save payment records for tax purposes.
Protecting Your Rights and Privacy
Don’t share claim details publicly: Discussing your claim amount or settlement terms on social media could create problems.
Beware of solicitations: Some companies may contact survivors offering to “accelerate” payments or buy claims at a discount. These are often predatory—consult an attorney before agreeing to anything.
Mental health support: Many survivors find the claims process retraumatizing. Resources are available through organizations like RAINN (Rape, Abuse & Incest National Network) at 1-800-656-4673.
Legal assistance: If you have questions about your claim determination or believe errors were made, consult an attorney experienced in abuse claims. Many attorneys who represented survivors during bankruptcy continue offering assistance.
Where to Find Reliable Information
Official Settlement Trust: ScoutingSettlementTrust.com (official website for claim information)
Claims Administrator: Contact information available on the Settlement Trust website for specific claim questions
Court documents: Public filings available through PACER (pacer.gov) for Case No. 20-10343 in Delaware Bankruptcy Court
Legal representation: If you were represented by an attorney during bankruptcy, they remain your best source for claim-specific questions
Support organizations: SNAP (Survivors Network of those Abused by Priests) and other advocacy groups provide support and information
Frequently Asked Questions
What is the BSA lawsuit about?
The Boy Scouts of America lawsuit involves approximately 82,000 survivors who filed claims alleging they were sexually abused by troop leaders and other adults in Scouting programs. The BSA filed bankruptcy in 2020 and created a $2.46 billion settlement fund to compensate survivors.
What is the latest update on the BSA lawsuit in January 2026?
The U.S. Supreme Court rejected an appeal on January 12, 2026, clearing the final obstacle to distributing $1.5 billion in escrowed settlement funds. This decision allows the Settlement Trustee to begin issuing second payments to the 82,000 survivors who have only received 1.5% of their claim values so far.
How much money will I get from the BSA settlement?
Individual payments vary dramatically based on your claim’s evaluation under the Trust Distribution Procedures. Claim values range from thousands to hundreds of thousands of dollars depending on abuse severity, duration, and supporting evidence. After receiving 1.5% initially, you’ll receive additional distributions as funds become available.
When will I receive my BSA settlement payment?
The second payment is expected within 2-6 months after the January 12, 2026 Supreme Court decision. The Settlement Trust must complete administrative processes before distributing the $1.5 billion in escrowed funds. Check the official Scouting Settlement Trust website for announcements.
Can I still file a claim in the BSA lawsuit?
No. The claims filing deadline passed during the bankruptcy proceedings. This settlement only covers the approximately 82,000 survivors who filed claims before the deadline. If you were abused but didn’t file a claim, consult an attorney about whether you have any remaining legal options under state law.
What if I disagree with my claim determination?
The Settlement Trust has procedures for challenging claim determinations. Contact the Claims Administrator or consult with an attorney who represented you during bankruptcy. However, the time to object to the overall settlement has passed—you can only challenge your individual claim evaluation.
Are BSA settlement payments taxable?
Generally, compensation for personal physical injuries or sickness is not taxable under federal law. However, portions allocated to emotional distress unrelated to physical injury might be taxable. The Settlement Trust should provide tax documentation. Consult a tax professional for guidance on your specific situation.
PRO TIP: Update your contact information with the Settlement Trust immediately if you’ve moved since filing your claim. Missing a payment notification because of an outdated address could delay your compensation by months or require lengthy verification processes to reissue payments.
Last Updated: January 14, 2026 — We keep this current with the latest legal developments.
Disclaimer: This article provides information about the BSA lawsuit update based on publicly available court documents, Supreme Court decisions, and official settlement information. It is not legal advice. Details about the BSA settlement and claim determinations may change as the Settlement Trust continues administering the fund. AllAboutLawyer.com does not represent any party to this lawsuit and does not provide legal services. If you have specific questions about your BSA claim or legal rights, consult a qualified attorney experienced in sexual abuse litigation.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah