The Roman Catholic Diocese of Syracuse has secured final approval for its $176 million Chapter 11 plan, bringing a pivotal resolution to years of legal battles over sexual abuse claims. U.S. Bankruptcy Judge Wendy A. Kinsella granted confirmation on Wednesday, overruling objections from federal watchdogs and concluding that recent insurance settlements did not upend the fundamental deal offered to survivors.
“They get paid in exchange for the release of claims,” Judge Kinsella declared, emphasizing the plan’s core premise.
Years in the Making
The diocese filed for Chapter 11 protection in 2020, overwhelmed by hundreds of abuse allegations. Its first restructuring blueprint, submitted in May 2024, was rewritten after the U.S. Supreme Court’s Purdue Pharma decision barred bankruptcy plans from imposing nonconsensual third-party releases.
By December 2024, a revised plan was sent to creditors, fortified by agreements with seven insurance carriers that returned $75.7 million in value to the bankruptcy estate. The combined payout pool now totals $176.1 million—one of the largest settlements of its kind.
