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Judge Approves $230 Million New Orleans Clergy Abuse Settlement as Insurer Deal Could Lift Total to $305 Million

The decision caps a five-year bankruptcy case by imposing binding child-protection safeguards alongside new transparency measures.

Overview

  • U.S. Bankruptcy Judge Meredith Grabill confirmed a plan to compensate roughly 600 survivors, with payments allocated through a court‑appointed, points‑based claims process.
  • Attorneys for victims said Travelers agreed in principle to contribute $75 million, subject to separate court approval, after previously refusing to join the deal covering abuse from 1973 to 1989.
  • The $230 million trust will be funded by $130 million in cash from the archdiocese and affiliates, a $70 million sale of Christopher Homes to Tredway that keeps the properties affordable, and about $30 million from settled insurers plus parish and charity contributions.
  • Court‑mandated reforms include overhauled reporting to law enforcement, outside monitoring with a survivor seat on the review board, a Survivors Bill of Rights, and a public archive of records to be housed at LSU.
  • Archdiocesan counsel pledged to deposit funds by late December to enable payouts in early 2026, while some survivors criticized more than $50 million in legal fees and the points system as dehumanizing.