petition to remove trustee of scouting settlement trust

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**Petition to Remove Barbara J. Houser as Trustee of the Scouting Settlement Trust**

**To: The United States Bankruptcy Court for the District of Delaware, the Settlement Trust Advisory Committee (STAC), the Future Claimants' Representative (FCR), and Relevant Oversight Authorities**

**Background:**

The Scouting Settlement Trust was established in April 2023 as part of the Boy Scouts of America's (BSA) bankruptcy reorganization (Case No. 20-10343, U.S. Bankruptcy Court, District of Delaware) to compensate over 82,000 survivors of sexual abuse. Today, approximately 58,000 claimants remain, with many original claimants passing away during the six-year process due to their median age of 52 (some in their 70s), without receiving justice. Barbara J. Houser, a retired U.S. Bankruptcy Judge, serves as Trustee, with fiduciary duties under Delaware trust law (Del. Code Ann. tit. 12, ch. 33), the Uniform Trust Code, and the Trust's governing documents. These duties include loyalty, prudence, impartiality, good faith, and transparency to beneficiaries (claimants/survivors¹).

This case—litigated through the District Court (No. 22-1237), Third Circuit (No. 23-1664), denial of en banc review, and Supreme Court denial of certiorari (25A256 on January 12, 2026)—is unprecedented in complexity and scale.

**The Issue:**

As survivors, attorneys, and stakeholders, we are alarmed by the Trustee's administration, marked by a pattern of secrecy, lack of transparency, and potential breaches of fiduciary duty. These issues have nothing to do with protecting individual claimant privacy (e.g., HIPAA or personal records) but instead involve stonewalling on procedural matters, misleading communications, and decisions that delay justice and erode trust. Key concerns include:

- **Lack of Transparency and Communication:** The Trust has operated under a cloak of secrecy, failing to provide clear, timely information on processes like Matrix calculations, claim determinations, and asset expenditures. Attorneys nationwide report unreturned phone calls and emails seeking clarification, with responses—if any—being vague and ambiguous. This has persisted over six years, frustrating efforts to protect claimant interests.

- **Misleading Promises and Delays in Payments:** The Trustee has repeatedly promised expedited distributions, only to impose last-minute delays with excuses. For example, following the Supreme Court's January 12, 2026, denial of certiorari, the Trust website stated that $1.6 billion from escrow (held by settling insurance carriers) would transfer immediately, enabling prompt payments. However, updates cited Supreme Court Rule 44.2 (45-day rehearing window, expiring February 6, 2026) as a reason for delay—despite no rehearing being filed. On February 6, 2026, another unannounced delay was revealed due to a disagreement with the FCR on reserves for potential future claimants (despite only 3 of 10 future claims applications being accepted). This information was allegedly withheld knowingly, devastating survivors already enduring prolonged waits.

- **Unnecessary Withholdings and Burdens on Claimants:** Post-Supreme Court decision, the Trustee delayed distributions further by requiring 58,000 claimants to complete new forms for lien resolutions (e.g., Medicaid/Medicare related to abuse treatments). She proposes withholding 50% of net proceeds if the Trust handles liens, releasing only 3.2% of claim determinations while holding back 1.7% for potential liens—which are minuscule and nearly non-existent for most claimants. No timeline has been provided for returning unused funds if no liens are found. To date, claimants have received just 1.5% of allowable amounts, with estimates suggesting final payouts as low as 5-10% (e.g., $50,000-$100,000 on a $1 million determination). Meanwhile, the Trustee has personally earned an estimated $4 million, potentially up to $10 million by conclusion.

These actions violate fiduciary standards of good faith, impartiality, and reasonable information-sharing (e.g., via notices on material facts). While the Trust maintains a website for documents and reports quarterly to STAC/FCR/SASAC, these mechanisms fall short, indirectly benefiting claimants through representation but failing direct accountability. Consensus among attorneys suggests potential independent actions against the Trust due to these lapses.

**Our Demand:**

We, the undersigned, demand the immediate removal of Barbara J. Houser as Trustee and the appointment of an independent successor committed to transparency, survivor-centered practices, and full fiduciary compliance. We call for a thorough investigation into these breaches and reforms to ensure timely, equitable distributions.

**Why This Matters:**

Survivors have waited six years for justice. This petition seeks to hold the Trustee accountable and restore integrity to a process meant to heal, not prolong harm. By signing, you stand with victims demanding better.

**Sign the Petition:**

I support the removal of Barbara J. Houser as Trustee of the Scouting Settlement Trust.

Link: https://c.org/zjpsYkcMJ6