September 19, 2025

Judge denies preliminary injunction in our class-action lawsuit to stop the changes to the YDC Settlement Fund

To Our Clients—

Despite our best efforts to stop the state from implementing problematic changes to the Settlement Fund, Judge St. Hilaire denied our request for a preliminary injunction. That preliminary injunction would have temporarily postponed the law from taking effect until the court reached a decision on our class action lawsuit, which aims to permanently reverse the Settlement Fund changes. As you likely recall, these changes allow the governor to appoint a Settlement Fund administrator, and the attorney general to veto award amounts the state deems too high. Both of these changes threaten the fair and neutral process you were promised.

We are still moving forward with our class action lawsuit to challenge these changes. Nonetheless, we are disappointed with the judge’s decision to deny our preliminary injunction while the court process plays out. We plan to appeal the decision to the New Hampshire Supreme Court.

What did the judge say?

Although the judge acknowledged the state’s last-minute amendments to the Settlement Fund "breach[ed] the trust" of the claimants and caused harm, he concluded that he could not enter an injunction.

First, the judge found that the state had not entered into enforceable contracts with the claimants. He relied on the general rule that a law created by elected representatives is usually not intended to be permanent and can, in most cases, be changed if a new law is later passed.

Second, while the judge acknowledged that claimants had been harmed by the state’s changes to the Settlement Fund, he ruled that the harm had already happened. He said he could not "unring the bell" of the trauma already caused by the state’s breach of trust.

Where do we go from here?

The judge got it wrong. We plan to appeal the ruling to the New Hampshire Supreme Court. We will argue that the legislature did intend to enter into a permanent settlement agreement with the YDC claimants. This is clear from the text of the law and from public statements made by several state officials, including the senate president and the attorney general himself. And while it is true that some harm has already occurred, all claimants are harmed and continue to be harmed because the state has taken from them the fair and trauma-informed process they bargained for.

What does this mean for my case?

The superior court’s decision only denied our motion for a preliminary injunction, which was a request that the new law be temporarily postponed until the court could reach a final decision in our class action lawsuit. Our class action lawsuit is still pending and will continue. Additionally, we have multiple options for appealing the judge’s decision to the New Hampshire Supreme Court. We are currently strategizing the most effective way to get the issues before the supreme court. But the bottom line is this: there is no need for you to take any action now.

The Settlement Fund is effectively in limbo for the time being. Currently, there is no administrator to run the Settlement Fund, and very little money in the Settlement Fund to pay claims. We expect the state to move toward appointing a new administrator this fall, but the Settlement Fund will likely not resume until sometime next year. In the meantime, we will continue to push our class action forward, including taking our appeal to the state supreme court.

As always, we are happy to talk individually with you to discuss the specifics of your case and next steps. For the time being, our general advice to everyone is to remain patient while we continue to pressure the state to make good on its obligations.

We have known all along that we are in a war with the state. Unfortunately, wars like this can often wage on for years and years and can be tiring and frustrating. Rest assured that your lawyers and professional staff at Nixon Peabody LLP and Rilee & Associates, PLLC will not give up. We will continue to fight until the state is held accountable.

We will update you as the case progresses. As always, be sure to check Case Status for updates. You can also contact us as noted below.

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