ST. CLOUD, Minn. (AP) - The Diocese of St. Cloud has filed for bankruptcy after reaching a $22.5 million settlement with clergy abuse survivors.
The diocese announced its plans to file for bankruptcy in 2018 to pay for claims dating back to the 1950s filed by 70 people against 42 priests. After lengthy negotiations with attorneys, the diocese filed for Chapter 11 in U.S. Bankruptcy Court Monday.
“It’s been a long haul, a long process, for survivors,” added survivors’ attorney Mike Finnegan. “We’re glad that they’re on the path to resolution and putting the lawsuits behind them.”
The $22.5 million settlement will be administered by an independent trustee appointed by the bankruptcy court, with input from a committee representing the survivors, the Star Tribune reported.
The settlement funding includes insurance and benefits coverage, cash and property from the diocese and contributions from parishes.
St. Cloud is the fifth diocese in Minnesota to file for bankruptcy following lawsuits accusing priests of sexual misconduct with minors.
The New Ulm Diocese, Duluth Diocese and Archdiocese of St. Paul and Minneapolis have emerged from bankruptcy, said Finnegan. Winona Diocese has not reached a resolution, he said.
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