The Roman Catholic Diocese of Buffalo lawsuit settlement is a proposed $326 million agreement that would resolve roughly 900 clergy sexual abuse claims filed against the diocese under New York’s Child Victims Act. Survivors are expected to vote on the settlement in late 2026 after a disclosure statement hearing scheduled for August 2026, with payouts anticipated to begin in late 2026 or early 2027.1BTPM. Catholic Diocese of Buffalo Abuse Survivors Committee Speaks for First Time on $326M Settlement
Where the $326 Million Comes From
The settlement fund breaks down into two large pieces: $150 million from Catholic entities and $176 million from insurance carriers.1BTPM. Catholic Diocese of Buffalo Abuse Survivors Committee Speaks for First Time on $326M Settlement
The Catholic side started as a $150 million commitment announced in April 2025 from the diocese itself, its parishes, and affiliated Catholic organizations. Insurance was not included in that figure and was still under negotiation at the time.2Diocese of Buffalo. Monetary Settlement Reached in Diocese of Buffalo Bankruptcy Case Of that $150 million, $80 million is expected to come from individual parishes. Each parish’s share was calculated using a progressive percentage from 10% to 75% applied to unrestricted cash assets as of August 31, 2024, with parishes slated for closure or merger assessed at 80%.3OSV News. Parishes Will Pay $80 Million in Buffalo Diocese’s $150 Million Bankruptcy Settlement The remainder comes from unrestricted diocesan funds, affiliated Catholic organizations, and real estate sale proceeds.
Insurance contributions grew in stages. When the diocese filed its formal Chapter 11 reorganization plan on October 1, 2025, three major insurers — CNA, Wausau, and AIG — had committed a combined $123.9 million.4Diocese of Buffalo. Diocese of Buffalo Fulfills Chapter 11 Reorganization Plan Filing Thirteen carriers ultimately participated, including Selective Insurance, Continental Insurance, Nationwide, Hartford, and National Union Fire Insurance.5Burns Bair LLP. Insurance Funding for Buffalo Catholic Diocese Sex Abuse Survivors Exceeds $160 Million
How the Case Got Here
New York’s Child Victims Act, passed in 2019, created a lookback window allowing survivors of childhood sexual abuse to sue regardless of the statute of limitations. The window opened August 13, 2019, was extended during the pandemic, and closed August 14, 2021. Statewide, 10,857 claims were filed. Buffalo alone received 924, nearly one-tenth of the state total.6EWTN News. More Than 900 Abuse Claims Filed Against Buffalo Diocese Under Child Victims Act
Facing that volume, the diocese filed for Chapter 11 bankruptcy on February 28, 2020, in the U.S. Bankruptcy Court for the Western District of New York, Case No. 20-10322, before Chief Bankruptcy Judge Carl L. Bucki.7Stretto. Diocese of Buffalo Case Portal It became one of four New York Catholic dioceses to declare bankruptcy in the wake of the Child Victims Act.6EWTN News. More Than 900 Abuse Claims Filed Against Buffalo Diocese Under Child Victims Act The diocese today lists more than 80 diocesan priests with substantiated abuse claims.8Diocese of Buffalo. Substantiated List
The Opt-In Ruling That Delayed Confirmation
In February 2026, the bankruptcy hit a serious legal snag. The diocese’s plan proposed releasing parishes and other affiliated entities from future abuse claims through third-party releases, using an “opt-out” mechanism: survivors who did not respond would be treated as consenting. Judge Bucki rejected that structure, relying on the U.S. Supreme Court’s June 2024 decision in Harrington v. Purdue Pharma L.P., which held that a bankruptcy court cannot discharge a non-debtor’s liability without the affected creditors’ actual consent.9FindLaw. Diocese of Buffalo, Case No. BK 20-10322
Judge Bucki called the opt-out approach “consent by ambush” and ordered the diocese and the Official Committee of Unsecured Creditors to redesign the plan so survivors must affirmatively opt in to grant third-party releases.10U.S. Bankruptcy Court, WDNY. Diocese of Buffalo Opinion, February 2026 For deceased victims, consent must come from a legally appointed executor or administrator, not silence.9FindLaw. Diocese of Buffalo, Case No. BK 20-10322 The original deadline for an amended plan was March 31, 2026, then extended to June 1, 2026, while the matter was certified for expedited appeal to the Second Circuit.11U.S. Bankruptcy Court, WDNY. Diocese of Buffalo Opinion, April 2026
What Happens Next and When Survivors Will Vote
As of June 2026, the case is still pre-confirmation. The amended reorganization plan reflecting the opt-in mechanism was expected to be filed, followed by a disclosure statement hearing in August 2026. After that hearing, the approximately 900 abuse claimants will vote on whether to accept the $326 million settlement. If enough votes are received, a confirmation hearing follows. Payouts are expected to begin in late 2026 or early 2027.1BTPM. Catholic Diocese of Buffalo Abuse Survivors Committee Speaks for First Time on $326M Settlement
Stretto continues to serve as claims administrator and maintains a case portal where survivors and creditors can access reorganization documents.7Stretto. Diocese of Buffalo Case Portal Several threads could still shift the terms or the timing: the diocese’s Second Circuit appeal of the opt-in ruling, unresolved child protection provisions being negotiated by attorneys, and Vatican decisions on parish closures and assessments that affect where parish contributions come from.
What Survivors Are Asking For
In June 2026, members of the six-person Unsecured Creditors’ Committee spoke publicly for the first time after years under a judicial gag order. Peter Starks described the settlement as “a relief from the pain that you carried for decades.” Ruth MacAlister called for a direct apology from diocesan leadership. Richard Brownell said the church was “remiss and not standing up completely and apologizing to all these victims.”1BTPM. Catholic Diocese of Buffalo Abuse Survivors Committee Speaks for First Time on $326M Settlement
Committee member Anne Marie Dempsey said the group had worked to secure both financial compensation and “change to the way sex abuse is handled within the diocese.” MacAlister said the settlement should include “child protection reforms, transparency requirements, and other actions” beyond money. Attorney Steve Boyd, representing the committee, said both survivors and the diocese were “ready for the end.”12WIVB. Ready for the End: Abuse Survivors to Vote on Buffalo Diocese Settlement
A Separate Case: The Attorney General’s Oversight Settlement
The $326 million bankruptcy settlement should not be confused with the earlier lawsuit filed by New York Attorney General Letitia James in November 2020 against the diocese, Bishop Emeritus Richard Malone, and former Auxiliary Bishop Edward Grosz. That case was resolved by an October 2022 settlement that permanently banned Malone and Grosz from holding fiduciary roles in New York charities and imposed a five-year compliance program on the diocese, including annual independent audits and a Priest Supervision Program to monitor credibly accused clergy.13New York Attorney General. Attorney General James Reaches Landmark Settlement With Catholic Diocese of Buffalo As of May 2026, an independent auditor determined the diocese had achieved full compliance for the third consecutive year.14Diocese of Buffalo. AG Settlement The AG settlement addresses governance and does not affect individual damage claims by abuse survivors, which run through the bankruptcy.