New York Archdiocese reaches $800 million settlement with sexual abuse survivors

The Catholic Archdiocese of New York is finalizing an agreement to pay more than $800 million to approximately 1,300 people who reported sexual abuse by clergy members and lay officials, according to The New York Times.

Lawyers representing the claimants informed their clients on Friday that all survivors had accepted a revised proposal, the newspaper reported. However, archdiocese spokesperson Joseph Zwilling said the parties were still working to finalize the agreement.

Under the proposed settlement, claimants could choose a lump-sum payment of at least $250,000 or seek a larger amount based on an assessment of the abuse alleged in each case.

Attorneys warned that without an agreement, the archdiocese would likely file for bankruptcy, potentially reducing compensation and prolonging legal proceedings.

The settlement framework was initially announced on May 1 by the law firm Jeff Anderson & Associates. The proposal called for an $800 million fund for approximately 1,300 survivors who filed claims under New York’s Child Victims Act.

The initial plan included a payment of about $615 million, followed by another $185 million approximately 15 months later. It also allowed claimants to pursue additional compensation from insurance companies.

The proposal further called for maintaining an updated public list of clergy members facing credible allegations of abuse and transferring related documentation to Iona University, according to the law firm.

Archbishop Ronald Hicks previously acknowledged that the institution had sold most of its real estate holdings and reduced staffing and other expenses to raise funds for victim compensation.

Church officials said the goal was to provide compensation without subjecting survivors to prolonged and painful litigation or forcing the archdiocese into bankruptcy. The agreement had not yet been finalized at the time of the report.