Historic $323M Bankruptcy Settlement Reached by Roman Catholic Diocese in Long Island

The Roman Catholic Diocese of Rockville Centre in Long Island has reached a historic $323 million bankruptcy settlement to compensate 530 sex abuse survivors. This settlement, marking significant progress after earlier refusal of a $200 million offer, involves major contributions from the diocese and its insurers.

The Roman Catholic Diocese of Rockville Centre in Long Island has announced a landmark bankruptcy settlement of over $323 million to be paid to approximately 530 individuals who allege they were sexually abused by priests during their childhood. The unprecedented agreement marks significant progress, especially after survivors previously rejected a $200 million settlement offer earlier this year.

U.S. Bankruptcy Judge Martin Glenn, presiding over the case in Manhattan, commended the agreement as 'enormous progress,' acknowledging that the bankruptcy process had nearly derailed. The diocese will contribute $234.8 million to the settlement fund, while four insurers will add $85.3 million. Additional funds will come from another insurer currently in liquidation and attorneys representing the abuse survivors.

The settlement comes after the diocese filed for Chapter 11 bankruptcy in October 2020, citing the high costs of lawsuits filed by childhood victims of clergy sexual abuse. Rev. Eric Fasano, a spokesman for the diocese, emphasized that the settlement ensures equitable compensation for the survivors while allowing the Church to continue its mission. This case could serve as a framework for other Catholic dioceses facing similar bankruptcy situations.

(With inputs from agencies.)