Abuse settlement in Diocese of Ogdensburg will total $83 million with insurance contributions

The Diocese of Ogdensburg, New York, is moving to settle its long-running bankruptcy proceedings with an $83 million fund for abuse victims, Bishop Terry LaValley has announced, with a significant portion of that amount coming from insurance providers.

The bishop announced the proposed settlement in an Aug. 25 letter to the diocese . The diocese had earlier announced a $45 million agreement in May.

A diocesan spokeswoman confirmed that the additional roughly $38 million would come from insurance contributions.

In his August letter, LaValley said the diocese was hoping to have the plan approved by the bankruptcy court “in the next few months.” The Ogdensburg Diocese filed for bankruptcy in July 2023 , the sixth diocese in New York state to do so.

The bishop urged Catholics to pray for both abuse victims as well as the diocese itself. He described the reparation payments as a “moral obligation” on the part of the diocese.

‘Rapid pre-pack’ bankruptcy In his letter, LaValley said the parishes in the diocese will undergo a notable bankruptcy proceeding called “rapid pre-pack Chapter 11,” one that will settle current abuse allegations while protecting parishes from future…