Update:
The Lujan plaintiffs did not file a Petition for Rehearing with the Supreme Court by the February 6 deadline. That means the Order confirming the BSA Bankruptcy Plan is now final as all appeals from confirmation have been exhausted. This is the outcome most of us thought was likely, but now it’s final—no more big legal roadblocks. What this means for you and the other survivors:
- The whole bankruptcy plan is now locked in and final. The rules are set, and no one can undo them through more appeals. This gives everyone a solid foundation to keep moving toward real compensation.
- That big pot of money—about $1.65 billion from insurance companies—that’s been held back in a safe account (called escrow) can finally be released to the Trust. This cash was always set aside for survivors like you; it was just frozen while the courts finished their work. Now the path is clear to bring it in.
- The Trust (the group in charge of paying people out) can start planning the next round of payments (the second distribution). They’ve said all along they couldn’t schedule this until the plan was fully final—and now it is. They’ll still need to do some important inside work first: double-checking numbers, setting aside money for reserves, handling any medical liens, and things like that. But the biggest legal hold-up is gone.
- If you got your first small payment (that initial 1.5%) before April 19, 2025, you’re also entitled to an extra amount to help make up for inflation (called CPI-U adjustment). The Trust has said these should come along with the next round of checks.
I want to be straight with you: this doesn’t mean a check arrives tomorrow or even next week. The Trust needs time to safely move the money, figure out the exact percentages for this next round, and get organized so everything is done right. But today removes the single largest delay that’s been holding things up for a long time—over a year in some ways. Looking ahead, the steps should go like this:
- The Trust gets the escrow money released.
- They set the percentage for the second distribution (building on what’s already been paid).
- More payments go out in batches, the same way the first ones did.
- Down the road, even more could come from selling assets, winning insurance cases, and other sources—but the momentum is finally picking up again.
Lastly, we do not know when the second distribution will be released from the Trust and what percentage it will be for. Two things may delay the release of the second payment:
- The Settlement Trustee, Judge Houser, is required to work with the Settlement Trust Advisory Committee and the Future Claims Representative to determine the amount of the second payment. Judge Houser has proposed an amount for the second payment. The Advisory Committee agrees with her, but, she and the Future Claims Representative disagree on the amount that should be reserved for future claims. So, Judge Silverstein may have to weigh in on that.
- Also, the Trust was planning to holdback a set amount from each Claimant’s second payment to resolve healthcare liens. Some lawyers have said they want to resolve the liens for their clients. The TDP allows for that, so now the Trust is going to create new forms and require each Claimant to indicate whether they want the Trust to resolve any healthcare liens or if they would prefer for the Trust to resolve the lien.
My staff will not have any more information than what is on this email correspondence, so please do not rush to the phones to call us to get more information—this is really what we have for now. But again, we will keep you informed!
Most importantly: This doesn’t cut anyone’s award, take away future possibilities, or stop the fights against insurance companies. It just opens the door wider so the Trust can actually start using more of the money already promised to help heal and support survivors. You’ve been incredibly strong through all of this, and I know words can’t fix the hurt. But today is a step closer to getting you what you’ve waited for, and I’m grateful for that.
-Adam Krause
