New Orleans Archdiocese Settles $230m with Sex Abuse Victims
In a near-unanimous vote, hundreds of victims of childhood sexual abuse by clergy have approved a $230 million bankruptcy settlement with the Roman Catholic Archdiocese of New Orleans. The deal, which was accepted by 99.63% of creditors excluding a small group of bond investors who voted against it while suing the church for securities fraud, will provide payments to victims based on points assigned for the severity and effects of the abuse.
The settlement includes agreements to release files on abusive priests and deacons, as well as stronger protections for children and vulnerable adults. However, not all abuse survivors voted on the final settlement plan, with only two individuals opposing it - a rare occurrence in such cases.
Initially, attorneys representing many abuse survivors had planned to vote against a plan that did not guarantee $50 million of the total amount tied to the sale of church-owned apartment complexes. However, after negotiations were amended to include this amount, their lawyers supported the deal.
The judge overseeing the archdiocese's bankruptcy, Meredith Grabill, has yet to approve the settlement. A hearing on whether to confirm it is scheduled for November 12.
New Orleans' archdiocese filed for bankruptcy in 2020 amid the fallout from a worldwide clergy molestation scandal, with many US Catholic dioceses or religious orders having followed suit. This is one of over 40 cases that have been completed, according to Penn State University's law school.
In contrast, New Orleans Archbishop Gregory Aymond initially estimated his administration could resolve the proceedings for about $7 million, including compensation for abuse victims. However, the archdiocese has since spent significantly more - around $50 million on legal fees alone.
The settlement amount materialized after Louisiana state lawmakers removed a ban in 2021 on allowing survivors of decades-old abuse to pursue civil damages in court. The state supreme court upheld this law as constitutional in June 2024.
Critics have pointed out that the archdiocese's actions, such as the expulsion of four abuse survivor clients from a committee negotiating a settlement, have been acrimonious and at times secretive. A lawyer for survivors' attorney Richard Trahant stated that his clients played a significant role in approving the deal but acknowledged that "no amount of money could ever make these survivors whole."
Meanwhile, an ongoing investigation has exposed how the archdiocese shielded admitted serial child abuser Lawrence Hecker from law enforcement for decades.
In a near-unanimous vote, hundreds of victims of childhood sexual abuse by clergy have approved a $230 million bankruptcy settlement with the Roman Catholic Archdiocese of New Orleans. The deal, which was accepted by 99.63% of creditors excluding a small group of bond investors who voted against it while suing the church for securities fraud, will provide payments to victims based on points assigned for the severity and effects of the abuse.
The settlement includes agreements to release files on abusive priests and deacons, as well as stronger protections for children and vulnerable adults. However, not all abuse survivors voted on the final settlement plan, with only two individuals opposing it - a rare occurrence in such cases.
Initially, attorneys representing many abuse survivors had planned to vote against a plan that did not guarantee $50 million of the total amount tied to the sale of church-owned apartment complexes. However, after negotiations were amended to include this amount, their lawyers supported the deal.
The judge overseeing the archdiocese's bankruptcy, Meredith Grabill, has yet to approve the settlement. A hearing on whether to confirm it is scheduled for November 12.
New Orleans' archdiocese filed for bankruptcy in 2020 amid the fallout from a worldwide clergy molestation scandal, with many US Catholic dioceses or religious orders having followed suit. This is one of over 40 cases that have been completed, according to Penn State University's law school.
In contrast, New Orleans Archbishop Gregory Aymond initially estimated his administration could resolve the proceedings for about $7 million, including compensation for abuse victims. However, the archdiocese has since spent significantly more - around $50 million on legal fees alone.
The settlement amount materialized after Louisiana state lawmakers removed a ban in 2021 on allowing survivors of decades-old abuse to pursue civil damages in court. The state supreme court upheld this law as constitutional in June 2024.
Critics have pointed out that the archdiocese's actions, such as the expulsion of four abuse survivor clients from a committee negotiating a settlement, have been acrimonious and at times secretive. A lawyer for survivors' attorney Richard Trahant stated that his clients played a significant role in approving the deal but acknowledged that "no amount of money could ever make these survivors whole."
Meanwhile, an ongoing investigation has exposed how the archdiocese shielded admitted serial child abuser Lawrence Hecker from law enforcement for decades.
. I mean, imagine having to live with the trauma of being abused by clergy for years and then finding out they're getting a fraction of what they deserve. It's like the system is designed to keep them down. And don't even get me started on the archdiocese trying to play both sides - negotiating with lawyers and then expelling survivors from their own committee 
. The whole thing just reeks of corruption. I'm glad some victims were able to come together and fight for justice, but there are still so many more who haven't been able to access the help they need 
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. I don't trust that all the files on abusive priests are gonna be released either, there's gotta be some skeletons left buried in that archdiocese 
. And $50 million from apartment sales? It's just a drop in the bucket considering how much more they've wasted on lawyers 
. The fact that only two people voted against it is pretty underwhelming too 
The settlement is like a drop in the ocean right? I mean 230 million bucks might seem like alot but its still just peanuts compared to all the damage that was done... i feel bad for those victims who went through this and werent even given the chance to have their say. It's crazy how they had to fight for the ability to sue in court, i wish it wasnt so hard for them to get justice. 
. But let's get real, it's not about the money - it's about the principle 
. The fact that they had to shell out $230 million just to keep from going to court is a huge win for victims and their families 
. And what's even more telling is that they only had to put up this kind of cash after Louisiana state lawmakers stepped in with some much-needed common sense 
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Like, come on guys, own up to your mistakes! Be honest and transparent about what you've done wrong.
. Like, what were they thinking? Did they really think that was enough to sweep everything under the rug? Newsflash: it's not. And yeah, I know some people might say "at least they're paying out now", but no, it's about time they admitted their wrongdoing and took responsibility for it.
. And don't even get me started on them bond investors who voted against it... like, come on guys 
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. But at the same time, I feel bad for the lawyers and advocates who had to fight so hard to get this deal done 
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. And let's be real, $50 million on legal fees alone? That's just outrageous