Judge approves $320m fund for Rockville Centre Diocese abuse victims

A federal bankruptcy judge has approved a $320 million settlement plan for the Roman Catholic Diocese of Rockville Centre, marking a significant step in addressing hundreds of clergy sexual abuse claims.

The Chapter 11 plan, approved by Judge Martin Glenn, establishes a trust fund to compensate survivors and resolves disputes with insurers.

Under the agreement, the diocese, its parishes, and related entities will contribute $234.8 million, while insurance companies will pay $85.5 million. The settlement was reached after contentious mediation, with survivors agreeing to the terms.

“The trust will provide immediate funds to claimants who have waited far too long for compensation,” Judge Glenn stated.

Among the settling insurers are Allianz, contributing $59 million, and London Market insurers, contributing $25 million. The settlement resolves what the court described as “highly contentious and costly” litigation over policies covering abuse claims between 1976 and 1986. However, Arrowood Indemnity, another insurer, remains in liquidation proceedings and is not part of the settlement.

The diocese sought bankruptcy protection in October 2020, facing over 600 lawsuits filed under New York’s Child Victims Act. This 2019 law eliminated the statute of limitations for childhood sexual abuse claims, allowing survivors to seek justice retroactively.

The diocese’s bankruptcy filing paused state court litigation, requiring a court-approved plan to resolve claims. A $200 million settlement proposal in April 2024 was rejected by survivors, prompting renewed negotiations. The approved plan avoids the risk of returning lawsuits to state court, where the first trial was set to begin within weeks.

With 132 parishes in its jurisdiction, the diocese has faced widespread allegations of clergy sexual abuse spanning decades. The settlement marks a pivotal moment for survivors and the Catholic Church’s accountability efforts.