u/Ornery-Street2286

So one allstate insurance branch settled. About $100,000. Someone posted about it previously exclaiming how it was a huge deal. I checked the docket and found nothing. I commented telling people to disreguard the verifiable lie.

Now I can't find the post to clarify. Now it has been discovered that they did settle, but it is an insignificant ammount. It is not every allstate group.

To set things straight, one small allstate insurer settled.

If you have pacer access please download docket item 653 and show it to us. This case is more important than the FCR issue. Please share this so our priorities can be in the correct order.

Example: If your attorney exposed client identities/contact information in a mass email, do not treat that as ordinary billing frustration. That may be a serious confidentiality issue. Get independent advice. AI can at least give you some ideas for free if you can't get a lawyer.

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re:

BOY SCOUTS OF AMERICA and
DELAWARE BSA, LLC,

Debtors.

Case No. 20-10343 (LSS)
Jointly Administered

MOTION OF TRUST BENEFICIARIES FOR ORDER REQUIRING THE SCOUTING SETTLEMENT TRUST TO FILE A CURRENT ACCOUNTING, CASH-BURN REPORT, AND FINANCIAL STATUS REPORT

[Name(s) of Movant(s)], beneficiaries of the Scouting Settlement Trust, respectfully move for entry of an order requiring the Scouting Settlement Trust and Trustee Hon. Barbara J. Houser (Ret.) to file a current accounting and financial status report sufficient to permit beneficiaries to evaluate the administration of Trust assets, reserves, professional fees, expenses, settlement proceeds, receivables, and insurance-litigation recoveries.

I. PRELIMINARY STATEMENT

1. The Scouting Settlement Trust exists for the benefit of survivors holding allowed abuse claims. The Trust controls billions of dollars in cash, receivables, settlement rights, insurance rights, asset-sale proceeds, and other Trust assets. Beneficiaries are entitled to sufficient financial information to evaluate whether those assets are being preserved, monetized, spent, reserved, or distributed in accordance with the Trust’s fiduciary obligations.
2. Beneficiaries currently lack a complete, current, and intelligible financial accounting showing: cash on hand; cash received; receivables; insurer settlements; asset-sale proceeds; professional fees; trustee compensation; contractor costs; lien-resolution reserves; future-claim reserves; litigation expenses; administrative reserves; and net distributable value.
3. This lack of information materially impairs beneficiaries’ ability to protect their interests. Beneficiaries cannot determine whether Trust assets are being maximized for survivors or diverted through avoidable administrative overhead, professional fees, excessive reserves, undisclosed settlements, or other expenditures.
4. The need for transparency is especially urgent because the Trust is pursuing and potentially compromising insurance rights that may represent tens of billions of dollars in survivor-owned recovery value. Beneficiaries cannot meaningfully evaluate any proposed compromise, reserve, distribution percentage, or litigation strategy without a current accounting.
5. The relief requested is modest. Movants do not seek privileged litigation strategy. Movants seek a financial accounting and cash-burn report. To the extent the Trust contends that certain details are confidential, the Court can require aggregate public disclosure and permit more detailed information to be filed under seal, provided beneficiaries receive enough information to evaluate whether the Trust is being administered in their interests.

II. JURISDICTION AND BASIS FOR RELIEF

1. This Court has continuing jurisdiction over matters concerning the implementation, administration, enforcement, and interpretation of the confirmed plan, the Trust Agreement, and the Scouting Settlement Trust created under the plan.
2. Movants are Trust beneficiaries and parties in interest whose recoveries are directly affected by the Trust’s administration, expenses, reserves, settlements, receivables, and distributions.
3. The Court has authority under its retained jurisdiction, the confirmed plan, the Trust Agreement, 11 U.S.C. § 105(a), and applicable fiduciary principles to require a trustee administering plan-created assets for the benefit of claimants to provide information necessary to protect beneficiaries’ interests.
4. The United States Trustee also has oversight authority and may appear and be heard on issues affecting the integrity and administration of the bankruptcy process. Movants request that the United States Trustee be served with this Motion and be invited to participate.

III. FACTUAL BACKGROUND

1. The Scouting Settlement Trust was created to administer and distribute assets for the benefit of survivors with allowed abuse claims.
2. Survivors supported or were bound by an extraordinary bankruptcy structure that centralized abuse claims, granted broad releases, and assigned substantial insurance rights and other assets to the Trust.
3. Beneficiary recoveries are currently being paid as small percentages of allowed claim value. The Trust’s lien materials describe supplemental distributions as a percentage of each claimant’s Allowed Claim Amount, with a 1.7% lien reserve held from a 3.2% supplemental distribution example.
4. Beneficiaries are also subject to lien-resolution delays, reserves, and deductions. The Trust’s lien materials state that additional payments cannot proceed until governmental healthcare lien obligations are addressed.
5. Public reporting indicates that the cost of fully compensating abuse survivors has grown dramatically, with insurers receiving bills for at least $12 billion and thousands of abuse claims still under review. That public reporting also states that the bankruptcy court originally found claimants were likely to be paid in full.
6. Despite the scale of the Trust assets and insurer recoveries at issue, beneficiaries have not received a current, comprehensive accounting showing what the Trust holds, what it has collected, what it is owed, what it has spent, what it has reserved, and what remains available for distribution.
7. Beneficiaries also lack clear disclosure regarding post-confirmation insurer settlements, including gross settlement amounts, payment schedules, cash received, receivables, confidentiality limitations, and expected net impact on claimant recovery percentages.
8. Beneficiaries further lack sufficient detail regarding Trust expenses, including trustee compensation, employee compensation, contractor payments, law firm fees, coverage-litigation counsel fees, expert fees, lien administrator fees, claims administrator fees, distribution administrator fees, and other professional or administrative expenses.
9. Without this information, beneficiaries cannot evaluate whether Trust assets are being administered efficiently or whether administrative overhead, professional fees, reserves, or undisclosed settlements are materially reducing survivor recoveries.

IV. RELIEF REQUESTED

Movants request that the Court enter an order requiring the Trustee and Scouting Settlement Trust to file, within fourteen days, a current financial accounting and report including the following categories:

A. Cash and Liquid Assets

1. Current cash on hand, by account or institution if appropriate, or by aggregate category if account-level disclosure is deemed unnecessary.
2. Cash received since the effective date of the plan, separated by source.
3. Cash received from escrow releases, insurer settlements, asset sales, local council contributions, chartered organization contributions, notes, oil and gas interests, investment income, or other Trust sources.
4. Cash paid to survivors to date, separated by distribution type.
5. Net cash currently available for distribution after reserves.

B. Receivables and Asset Values

1. Promissory notes outstanding, including obligor, principal amount, payment schedule, amounts paid to date, and amounts remaining.
2. Property-sale receivables, art-sale receivables, oil and gas receivables, and other non-insurance receivables.
3. Insurance settlement receivables, including any post-confirmation insurer settlements, at least in aggregate if individual settlement terms are confidential.
4. Contingent insurance claims, pending insurer litigation, and estimated gross and net recovery ranges, to the extent disclosure can be made without revealing privileged litigation strategy.

C. Insurer Settlements and Insurance Litigation

1. All insurer settlements entered into after confirmation or after the last public accounting, including gross amount, cash received, receivable amount, payment schedule, and whether any portion is restricted or reserved.
2. Total insurer billings issued by the Trust to date.
3. Total insurer billings expected after completion of remaining claim review.
4. Total insurance-litigation expenses paid to date.
5. Total projected insurance-litigation expenses through trial, appeal, or settlement.
6. Any proposed or anticipated procedure for beneficiary notice and objection before any material compromise or release of insurance rights.

D. Administrative Expenses and Professional Fees

1. Trustee compensation paid to date and projected future compensation.
2. Compensation paid to Trust employees, officers, consultants, and contractors.
3. Compensation paid to law firms retained by the Trust, separated by firm and matter category.
4. Compensation paid to coverage counsel, bankruptcy counsel, appellate counsel, experts, consultants, financial advisors, claims administrators, lien administrators, distribution administrators, and other professionals.
5. Any compensation framework, bonus framework, retention framework, or administrative budget that could materially affect beneficiary recoveries.
6. Monthly cash-burn rate for the prior twelve months and projected monthly cash-burn rate for the next twelve months.

E. Reserves and Holdbacks

1. Current amount held for governmental healthcare lien reserves.
2. Current amount held for future claims reserve.
3. Current amount held for administrative reserve.
4. Current amount held for litigation reserve.
5. Current amount held for disputed, deficient, or delayed claims.
6. Explanation of how each reserve amount was calculated and when each reserve is expected to be released, reduced, increased, or reviewed.

F. Claimant Status Reconciliation

1. Original number of abuse claims filed.
2. Number of expedited distribution claims.
3. Number of Matrix claims.
4. Number of IRO claims.
5. Number of claims allowed, denied, withdrawn, inactive, deficient, duplicate, unresolved, or under review.
6. Number of claims delayed due to lien resolution.
7. Number of claims delayed due to fraud review, missing documentation, estate issues, or other administrative reasons.

G. Distribution Projection

1. Current estimated gross recovery percentage based on cash and verified receivables only.
2. Current estimated gross recovery percentage including expected but uncollected receivables.
3. Current estimated gross recovery percentage under low, medium, and high insurance-recovery scenarios.
4. Expected timing and amount of next distributions.
5. Effect of each major reserve on claimant recovery percentage.

V. REQUEST FOR PROTECTIVE PROCEDURE

1. If the Trust contends that specific settlement terms, insurer strategy, or litigation analysis cannot be publicly disclosed, Movants request that the Court order the Trust to provide:

a. a public aggregate accounting sufficient for beneficiaries to understand the Trust’s financial position; and

b. a sealed or in camera supplemental report containing more detailed settlement, receivable, and litigation information for Court review and, where appropriate, review by the United States Trustee or a beneficiary representative subject to confidentiality protections.

1. Confidentiality should not be used as a basis to deny beneficiaries any meaningful financial information. Aggregate reporting can protect sensitive insurer negotiations while still allowing beneficiaries to evaluate Trust administration.

VI. REQUEST FOR PROCEDURAL PROTECTION BEFORE MATERIAL INSURANCE COMPROMISE

1. Movants further request that no material compromise, settlement, sale, release, or disposition of insurance rights be approved or finalized without reasonable notice to beneficiaries and an opportunity to object.
2. At minimum, before any material insurer compromise, the Trust should disclose the gross amount, net amount, rights released, effect on projected claimant recovery, professional fees and costs associated with the compromise, and the basis for concluding that the compromise is in beneficiaries’ best interests.

VII. CONCLUSION

WHEREFORE, Movants respectfully request that the Court enter an order:

A. requiring the Scouting Settlement Trust and Trustee to file a current accounting and financial status report within fourteen days;

B. requiring disclosure of cash, receivables, reserves, expenses, professional fees, insurer settlements, and projected distributions;

C. requiring disclosure of post-confirmation insurer settlements at least in aggregate;

D. requiring a twelve-month historical and projected cash-burn report;

E. requiring a claimant-status reconciliation;

F. requiring notice and an opportunity to object before any material compromise or release of insurance rights;

G. authorizing sealed or in camera disclosure only where truly necessary, while requiring meaningful public aggregate reporting; and

H. granting such other and further relief as the Court deems just and proper.

Dated: _____________

Respectfully submitted,

[Name]
Trust Beneficiary / Allowed Abuse Claimant
[Address]
[Email]
[Phone]

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re:

BOY SCOUTS OF AMERICA and
DELAWARE BSA, LLC,

Debtors.

Case No. 20-10343 (LSS)
Jointly Administered

MOTION OF TRUST BENEFICIARIES FOR ORDER REQUIRING THE SCOUTING SETTLEMENT TRUST TO FILE A CURRENT ACCOUNTING, CASH-BURN REPORT, AND FINANCIAL STATUS REPORT

[Name(s) of Movant(s)], beneficiaries of the Scouting Settlement Trust, respectfully move for entry of an order requiring the Scouting Settlement Trust and Trustee Hon. Barbara J. Houser (Ret.) to file a current accounting and financial status report sufficient to permit beneficiaries to evaluate the administration of Trust assets, reserves, professional fees, expenses, settlement proceeds, receivables, and insurance-litigation recoveries.

I. PRELIMINARY STATEMENT

1. The Scouting Settlement Trust exists for the benefit of survivors holding allowed abuse claims. The Trust controls billions of dollars in cash, receivables, settlement rights, insurance rights, asset-sale proceeds, and other Trust assets. Beneficiaries are entitled to sufficient financial information to evaluate whether those assets are being preserved, monetized, spent, reserved, or distributed in accordance with the Trust’s fiduciary obligations.
2. Beneficiaries currently lack a complete, current, and intelligible financial accounting showing: cash on hand; cash received; receivables; insurer settlements; asset-sale proceeds; professional fees; trustee compensation; contractor costs; lien-resolution reserves; future-claim reserves; litigation expenses; administrative reserves; and net distributable value.
3. This lack of information materially impairs beneficiaries’ ability to protect their interests. Beneficiaries cannot determine whether Trust assets are being maximized for survivors or diverted through avoidable administrative overhead, professional fees, excessive reserves, undisclosed settlements, or other expenditures.
4. The need for transparency is especially urgent because the Trust is pursuing and potentially compromising insurance rights that may represent tens of billions of dollars in survivor-owned recovery value. Beneficiaries cannot meaningfully evaluate any proposed compromise, reserve, distribution percentage, or litigation strategy without a current accounting.
5. The relief requested is modest. Movants do not seek privileged litigation strategy. Movants seek a financial accounting and cash-burn report. To the extent the Trust contends that certain details are confidential, the Court can require aggregate public disclosure and permit more detailed information to be filed under seal, provided beneficiaries receive enough information to evaluate whether the Trust is being administered in their interests.

II. JURISDICTION AND BASIS FOR RELIEF

1. This Court has continuing jurisdiction over matters concerning the implementation, administration, enforcement, and interpretation of the confirmed plan, the Trust Agreement, and the Scouting Settlement Trust created under the plan.
2. Movants are Trust beneficiaries and parties in interest whose recoveries are directly affected by the Trust’s administration, expenses, reserves, settlements, receivables, and distributions.
3. The Court has authority under its retained jurisdiction, the confirmed plan, the Trust Agreement, 11 U.S.C. § 105(a), and applicable fiduciary principles to require a trustee administering plan-created assets for the benefit of claimants to provide information necessary to protect beneficiaries’ interests.
4. The United States Trustee also has oversight authority and may appear and be heard on issues affecting the integrity and administration of the bankruptcy process. Movants request that the United States Trustee be served with this Motion and be invited to participate.

III. FACTUAL BACKGROUND

1. The Scouting Settlement Trust was created to administer and distribute assets for the benefit of survivors with allowed abuse claims.
2. Survivors supported or were bound by an extraordinary bankruptcy structure that centralized abuse claims, granted broad releases, and assigned substantial insurance rights and other assets to the Trust.
3. Beneficiary recoveries are currently being paid as small percentages of allowed claim value. The Trust’s lien materials describe supplemental distributions as a percentage of each claimant’s Allowed Claim Amount, with a 1.7% lien reserve held from a 3.2% supplemental distribution example.
4. Beneficiaries are also subject to lien-resolution delays, reserves, and deductions. The Trust’s lien materials state that additional payments cannot proceed until governmental healthcare lien obligations are addressed.
5. Public reporting indicates that the cost of fully compensating abuse survivors has grown dramatically, with insurers receiving bills for at least $12 billion and thousands of abuse claims still under review. That public reporting also states that the bankruptcy court originally found claimants were likely to be paid in full.
6. Despite the scale of the Trust assets and insurer recoveries at issue, beneficiaries have not received a current, comprehensive accounting showing what the Trust holds, what it has collected, what it is owed, what it has spent, what it has reserved, and what remains available for distribution.
7. Beneficiaries also lack clear disclosure regarding post-confirmation insurer settlements, including gross settlement amounts, payment schedules, cash received, receivables, confidentiality limitations, and expected net impact on claimant recovery percentages.
8. Beneficiaries further lack sufficient detail regarding Trust expenses, including trustee compensation, employee compensation, contractor payments, law firm fees, coverage-litigation counsel fees, expert fees, lien administrator fees, claims administrator fees, distribution administrator fees, and other professional or administrative expenses.
9. Without this information, beneficiaries cannot evaluate whether Trust assets are being administered efficiently or whether administrative overhead, professional fees, reserves, or undisclosed settlements are materially reducing survivor recoveries.

IV. RELIEF REQUESTED

Movants request that the Court enter an order requiring the Trustee and Scouting Settlement Trust to file, within fourteen days, a current financial accounting and report including the following categories:

A. Cash and Liquid Assets

1. Current cash on hand, by account or institution if appropriate, or by aggregate category if account-level disclosure is deemed unnecessary.
2. Cash received since the effective date of the plan, separated by source.
3. Cash received from escrow releases, insurer settlements, asset sales, local council contributions, chartered organization contributions, notes, oil and gas interests, investment income, or other Trust sources.
4. Cash paid to survivors to date, separated by distribution type.
5. Net cash currently available for distribution after reserves.

B. Receivables and Asset Values

1. Promissory notes outstanding, including obligor, principal amount, payment schedule, amounts paid to date, and amounts remaining.
2. Property-sale receivables, art-sale receivables, oil and gas receivables, and other non-insurance receivables.
3. Insurance settlement receivables, including any post-confirmation insurer settlements, at least in aggregate if individual settlement terms are confidential.
4. Contingent insurance claims, pending insurer litigation, and estimated gross and net recovery ranges, to the extent disclosure can be made without revealing privileged litigation strategy.

C. Insurer Settlements and Insurance Litigation

1. All insurer settlements entered into after confirmation or after the last public accounting, including gross amount, cash received, receivable amount, payment schedule, and whether any portion is restricted or reserved.
2. Total insurer billings issued by the Trust to date.
3. Total insurer billings expected after completion of remaining claim review.
4. Total insurance-litigation expenses paid to date.
5. Total projected insurance-litigation expenses through trial, appeal, or settlement.
6. Any proposed or anticipated procedure for beneficiary notice and objection before any material compromise or release of insurance rights.

D. Administrative Expenses and Professional Fees

1. Trustee compensation paid to date and projected future compensation.
2. Compensation paid to Trust employees, officers, consultants, and contractors.
3. Compensation paid to law firms retained by the Trust, separated by firm and matter category.
4. Compensation paid to coverage counsel, bankruptcy counsel, appellate counsel, experts, consultants, financial advisors, claims administrators, lien administrators, distribution administrators, and other professionals.
5. Any compensation framework, bonus framework, retention framework, or administrative budget that could materially affect beneficiary recoveries.
6. Monthly cash-burn rate for the prior twelve months and projected monthly cash-burn rate for the next twelve months.

E. Reserves and Holdbacks

1. Current amount held for governmental healthcare lien reserves.
2. Current amount held for future claims reserve.
3. Current amount held for administrative reserve.
4. Current amount held for litigation reserve.
5. Current amount held for disputed, deficient, or delayed claims.
6. Explanation of how each reserve amount was calculated and when each reserve is expected to be released, reduced, increased, or reviewed.

F. Claimant Status Reconciliation

1. Original number of abuse claims filed.
2. Number of expedited distribution claims.
3. Number of Matrix claims.
4. Number of IRO claims.
5. Number of claims allowed, denied, withdrawn, inactive, deficient, duplicate, unresolved, or under review.
6. Number of claims delayed due to lien resolution.
7. Number of claims delayed due to fraud review, missing documentation, estate issues, or other administrative reasons.

G. Distribution Projection

1. Current estimated gross recovery percentage based on cash and verified receivables only.
2. Current estimated gross recovery percentage including expected but uncollected receivables.
3. Current estimated gross recovery percentage under low, medium, and high insurance-recovery scenarios.
4. Expected timing and amount of next distributions.
5. Effect of each major reserve on claimant recovery percentage.

V. REQUEST FOR PROTECTIVE PROCEDURE

1. If the Trust contends that specific settlement terms, insurer strategy, or litigation analysis cannot be publicly disclosed, Movants request that the Court order the Trust to provide:

a. a public aggregate accounting sufficient for beneficiaries to understand the Trust’s financial position; and

b. a sealed or in camera supplemental report containing more detailed settlement, receivable, and litigation information for Court review and, where appropriate, review by the United States Trustee or a beneficiary representative subject to confidentiality protections.

1. Confidentiality should not be used as a basis to deny beneficiaries any meaningful financial information. Aggregate reporting can protect sensitive insurer negotiations while still allowing beneficiaries to evaluate Trust administration.

VI. REQUEST FOR PROCEDURAL PROTECTION BEFORE MATERIAL INSURANCE COMPROMISE

1. Movants further request that no material compromise, settlement, sale, release, or disposition of insurance rights be approved or finalized without reasonable notice to beneficiaries and an opportunity to object.
2. At minimum, before any material insurer compromise, the Trust should disclose the gross amount, net amount, rights released, effect on projected claimant recovery, professional fees and costs associated with the compromise, and the basis for concluding that the compromise is in beneficiaries’ best interests.

VII. CONCLUSION

WHEREFORE, Movants respectfully request that the Court enter an order:

A. requiring the Scouting Settlement Trust and Trustee to file a current accounting and financial status report within fourteen days;

B. requiring disclosure of cash, receivables, reserves, expenses, professional fees, insurer settlements, and projected distributions;

C. requiring disclosure of post-confirmation insurer settlements at least in aggregate;

D. requiring a twelve-month historical and projected cash-burn report;

E. requiring a claimant-status reconciliation;

F. requiring notice and an opportunity to object before any material compromise or release of insurance rights;

G. authorizing sealed or in camera disclosure only where truly necessary, while requiring meaningful public aggregate reporting; and

H. granting such other and further relief as the Court deems just and proper.

Dated: _____________

Respectfully submitted,

[Name]
Trust Beneficiary / Allowed Abuse Claimant
[Address]
[Email]
[Phone]

At minimum, the Trust should disclose:

Total cash currently held. Total verified receivables. New insurer settlements since confirmation. Whether those settlements are cash received or payable later. Total professional fees paid. Trustee compensation. Law firm fees paid by the Trust. Lien-resolution vendor fees. Administrative/contractor costs. Amounts held in reserve. Net distributable cash. Contingent insurance claims still being pursued.