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At the Krause and Kinsman Law Firm we prioritize keeping our clients informed seriously. We wanted to provide you with the latest update on the Boy Scouts of America (BSA) litigation, based on the recent town hall meeting held on November 21, 2024, by Judge Houser and her team. Our BSA team attended the meeting, and I want to share important information about the status of the case and what it means for you.

Claim Filing and Progress

As of November 21, 2024, there have been 57,920 claims filed with the Settlement Trust. Out of these, 9,256 claims have received final determinations, which represents about 15% of the claims. This means the process is moving forward, but it is taking time.

What does this mean for you?

  • Positive Progress: The settlement process is progressing, but it will take time.
  • Don’t Panic: If you haven’t received a decision on your claim yet, you’re not alone. The vast majority of claims are still in progress, and yours will be reviewed as well.

New Claim Review Process

To keep you informed, the Settlement Trustee introduced some helpful updates to the claim review process on November 26, 2024. Previously, claims were in a “Review in Progress” status with no further details. Now, claims will move through four stages, and you will be notified whenever your claim reaches a new stage.

Here are the four stages of the review process:

  1. Stage 1 – Evaluation Criteria Review:
    The Settlement Trustee checks if your Claims Questionnaire is complete and signed under penalty of perjury.
  2. Stage 2 – Initial Claim Review:
    The Trustee verifies your connection to scouting and the abuser’s connection, while also calculating your proposed claim amount.
  3. Stage 3 – Final Claim Review:
    The Trustee ensures that your claim is complete and undergoes a quality control review.
  4. Stage 4 – Review Complete, Pending Notice:
    Your claim has passed the final review, and a claim notice is being generated. The final determination is pending.

Ongoing Communication

We understand that staying informed is crucial, so we’ve made updates to our internal processes as well. Here’s what you can expect moving forward:

  • Automated Text Updates: You will receive a text whenever your claim moves to a new stage or if a claim determination is made.
  • Requests for Additional Information: If the Settlement Trustee needs more information from you, we’ll notify you via text. You’ll have 30 days to respond, and our team will help you gather and submit any required documents.

Distribution of Compensation

The Settlement Trustee is currently distributing 1.5% of the total proposed allowable claim amounts. Why is this happening? The Settlement Trust isn’t fully funded yet, and the amount available will depend on the outcome of several key legal developments:

  1. Third Circuit Court of Appeals Ruling:
    A ruling on the Trust Distribution Plan is expected in Spring 2025. If affirmed, this could add approximately $1.5 billion to the Trust.
  2. Litigation with Insurance Companies:
    The Trustee has sued 91 insurance companies to recover additional funds for the Trust. However, this litigation will not progress until the Third Circuit makes its ruling.
  3. Sale of BSA Art:
    The Trustee is auctioning off BSA-owned art, with proceeds going into the Settlement Trust.

What does this mean for your payment?

The Trustee cannot calculate the final percentage of your claim until the Trust’s total funding is known. This will depend on the appeals process, the outcome of the litigation, and the sale of art. Once these matters are resolved, additional distributions can be made.

What You Can Count On?

While the litigation process may feel slow and uncertain at times, there are several things we can guarantee:

  1. Diligent, Professional Handling of Your Claim:
    Our team is dedicated to ensuring your claim is handled properly. If we need anything from you, we will reach out.
  2. Ongoing Updates:
    We will keep you updated on your claim’s progress. Whenever your claim moves to a new stage or a decision is made, you’ll be notified.
  3. Efficiency and Fairness:
    The Trustee is continuing to work hard to review claims, and the process is becoming more efficient over time. Everyone will receive the same percentage of their total claim amount, once the Trust’s total funding is known.
  4. You’re Not Alone:
    You are not going through this process by yourself. We are with you every step of the way, working alongside you until you receive the justice and compensation you deserve.

Thank you for your patience, and we’ll continue to keep you informed as the process moves forward. If you have any questions or need assistance, please don’t hesitate to reach out to our team.

Stay safe, and we’ll be in touch soon!