3rd Circuit Denies Insurers’ Motion To Stay In Dispute Over Boy Scouts’ Plan

Mealey's (November 3, 2023, 1:47 PM EDT) -- PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Nov. 3 denied certain insurers’ and two sets of abuse claimants’ motions to stay further implementation of the Boy Scouts of America’s third modified, fifth amended Chapter 11 reorganization plan, which contemplates the creation of a settlement trust to “assume liability for all Abuse Claims,” rejecting the insurers’ argument that the U.S. Supreme’s Court’s forthcoming ruling in Harrington v. Purdue Pharma, L.P. on the permissibility of nonconsensual releases to nondebtors may overturn Third Circuit precedent and decide whether the bankruptcy plan can move forward....