Diocese of Rochester Parishes and all Insurance Companies Contribute to Settlement
(Rochester, NY) – The Committee of Unsecured Creditors, representing all survivors of sexual abuse who submitted claims in the Diocese of Rochester bankruptcy case, reached a settlement with the last holdout insurer, Continental Insurance Company (CNA), for $120 Million.
“This is a testament to the courage and persistence of the survivors who stood strong and united against the insurance industry’s efforts to oppress and delay. Reckoning.”
– Jeff Anderson
The Diocese of Rochester was the first Diocese in New York to file for Chapter 11 Bankruptcy shortly after the Child Victims Act Window opened in 2019. In 2023, the Committee of Unsecured Creditors reached a partial settlement with the Diocese and parishes and other insurers for approximately $126.35 Million. But CNA refused to settle and dragged the case on for another two years.
Over the last few months, Survivors voted on a Plan of Reorganization that would have allowed the partial settlement to be distributed to the survivors and for litigation to proceed against the recalcitrant insurer, CNA. The voting tabulation came back this week with unanimous support for the Plan. The settlement with CNA comes on the heels of the vote and a week before the parties were going to ask the Court to approve the Plan.
“This is a momentous day for survivors,” said Mike Finnegan. “This settlement represents the culmination of years of hard-fought negotiation with the insurers, and this result is a tremendous victory for survivors in Rochester.”
The $120 Million settlement with CNA comes after the survivors voted down a $75 Million offer CNA made in a competing Plan last year. This momentous settlement was only accomplished because the survivors stood strong in the face of an intractable insurance industry.
“This is a testament to the courageous survivors who stood strong over these many years. We are in awe of them.” – Steve Boyd