Boy Scouts, Insurers Lose Preliminary Bid to Dismiss Appeal (1)

An appeal of the Boy Scouts of America’s bankruptcy plan will proceed, the Third Circuit said, rejecting preliminary arguments from the organization and its settling insurers that transactions underlying the plan can’t be undone.

“The Appellees’ arguments leave us unpersuaded at this preliminary stage that equitable or statutory mootness apply in the particular circumstances of this case,” Judge Kent A. Jordan of the US Court of Appeals for the US Court of Appeals for the Third Circuit said in a Thursday ruling. “Therefore, the motion to dismiss is hereby referred to the merits panel.”

A separate group of insurers, ...