ALBANY (NY)
MSN [Redmond WA ]
March 28, 2026
By Brendan J. Lyons, Times-Union
ALBANY – The Roman Catholic Diocese of Albany has agreed to pay $148 million to settle claims filed by more than 400 people who allege they were sexually abused as children by priests and other diocesan employees during assaults that date back decades.
The proposed settlement, which follows years of grueling negotiations, became public in a release from a law firm that represents almost 200 of the plaintiffs who have alleged sexual abuse and are also claimants in the diocese’s ongoing bankruptcy case.
The agreement must still be approved by the victims as well as a federal bankruptcy judge. It does not include the diocese’s insurance carriers, some of whom have asserted they are not responsible to pay for what they allege was criminal behavior that went on for years with the knowledge of church leaders.
“The survivors on the Official Committee of Tort Claimants in this case stood firm, fighting tirelessly for all survivors,” said attorney Jeff Anderson in a news release. “Despite the emotional cost, they never wavered. This historic outcome is the result of their courage, resilience, and commitment to justice.”
[PHOTO: Incoming Albany Bishop Edward Scharfenberger, right, and former Bishop Howard J. Hubbard in February 2014. Hubbard’s mishandling of sexual abuse allegations made against priests and others in the Roman Catholic Diocese of Albany ultimately forced Scharfenberger to declare bankruptcy as the result of lawsuits filed under New York’s Child Victims Act. (Times Union file) (SKIP DICKSTEIN)]
The litigation with the insurance companies will continue, including potential civil trials. The result could be millions of dollars in additional compensation for the alleged victims. But as it stands, the agreement announced Friday would mark one of the largest payments on record involving the multiple New York Catholic dioceses that have sought bankruptcy protection before reaching similar global settlements of sexual abuse claims. And while other settlements were larger, including those approved in Rockville Centre on Long Island and Rochester, they were funded primarily by insurers.