About 530 sex abuse survivors, who claimed that priests assaulted them while they were youngsters, would get over $323 million as part of a new bankruptcy deal announced on Thursday by a Roman Catholic diocese in Long Island, New York.
After abuse survivors turned down a $200 million settlement offer, the diocese of Rockville Centre—which represents over 1.2 million Catholics in Nassau and Suffolk counties—stated earlier this year that it did not believe a bankruptcy deal could be viable.
According to Manhattan US bankruptcy judge Martin Glenn, who is supervising the case, the settlement was described as “enormous progress” following the bankruptcy’s near-death experience.
A settlement fund will get $234.8 million from Rockville Centre and $85.3 million from four insurers. In addition to attorneys representing abuse survivors, the settlement will also get funds from another insurer that is being liquidated in a separate insolvency action.
“The equitable compensation of survivors of abuse while allowing the church to continue her essential mission” would be guaranteed by the deal, according to Diocese spokesperson Eric Fasano.
Clergy sexual abuse claims brought by minors were a contributing factor in the diocese’s October 2020 Chapter 11 bankruptcy filing in New York.
Following the passage of legislation in places like New York that temporarily granted victims of child sexual abuse the right to sue for crimes that occurred decades ago, over twenty Catholic dioceses have recently declared bankruptcy.
Dozens of Catholic dioceses have declared bankruptcy in response to allegations of sexual abuse; Thursday’s settlement may offer a fresh start.
