Bankruptcy

Bishop Checchio to join troubled Archdiocese of New Orleans as coadjutor
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Bishop Checchio to join troubled Archdiocese of New Orleans as coadjutor

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Bishop James Checchio of Metuchen, New Jersey, on Sept. 24, 2025, was named coadjutor bishop of the Archdiocese of New Orleans. / Credit: Leo Song, Seminarian, Pontifical North American College

Rome Newsroom, Sep 24, 2025 / 06:25 am (CNA).

Pope Leo XIV on Wednesday named Bishop James Checchio coadjutor archbishop of New Orleans, positioning him to head an archdiocese facing bankruptcy and a costly clergy abuse settlement.

The 59-year-old Checchio — bishop of Metuchen, New Jersey, since 2016 — will assist Archbishop Gregory Aymond in the leadership of over half a million Catholics in southeastern Louisiana. Prior to becoming a bishop, Checchio was rector of the Pontifical North American College in Rome from 2006 to 2016. He has a doctorate in canon law.

As coadjutor, Checchio will automatically succeed Aymond, who turned 75, the age when bishops are required to submit their resignation to the pope, last year. Aymond, a New Orleans native, has led the archdiocese since 2009.

Checchio joins the leadership of New Orleans as the archdiocese moves to resolve yearslong bankruptcy negotiations with a settlement for over 600 clergy sexual abuse claimants. Earlier this month, the archdiocese announced a $230 million settlement offer to clergy sexual abuse claimants, up from a previous offer of $180 million.

The settlement offer follows five years of negotiations in the U.S. Bankruptcy Court for the Eastern District of Louisiana, where the nation’s second-oldest Catholic archdiocese filed for bankruptcy in May 2020.

Aymond, who has served as chairman of the child protection commission for the U.S. Conference of Catholic Bishops, said in May that the settlement gave him “great hope.”

The agreement “protects our parishes and begins to bring the proceedings to a close,” he said, adding: “I am grateful to God for all who have worked to reach this agreement and that we may look to the future towards a path to healing for survivors and for our local Church.”

Archbishop Gregory Aymond of New Orleans in Rome on Jan. 26, 2012. Credit: Alan Holdren/CNA
Archbishop Gregory Aymond of New Orleans in Rome on Jan. 26, 2012. Credit: Alan Holdren/CNA

The settlement represents one of the largest sums in the U.S. paid out to victims of clergy sexual abuse. 

Aymond was ordained a priest for the Archdiocese of New Orleans in 1975. His priestly ministry focused on education — including serving as the president-rector of Notre Dame Seminary in New Orleans from 1986 to 2000 — and missionary work in Mexico and Nicaragua.

In 1996, he was appointed auxiliary bishop of the archdiocese and given oversight over its Catholic schools. 

Aymond came under fire in the late 1990s for allowing the coach at Sacred Heart of Jesus School in Norco, Brian Matherne, to remain in his role for several months after Aymond received information about alleged abuse of a minor boy by Matherne.

Matherne was later arrested and is now serving a 30-year sentence after pleading guilty to the molestation of 17 children over a 15-year period ending in 1999.

Aymond later admitted his mistake in keeping Matherne in his post and called the case a “painful experience — I will never forget it. It helped me to understand the complexity of pedophilia better.”

He was appointed coadjutor bishop of Austin, Texas, in June 2000 and succeeded Bishop John E. McCarthy as bishop of Austin in January 2021.

In that position, Aymond strengthened the diocese’s sex abuse policies, though clerical abuse activists from the Survivors Network of those Abused by Priests (SNAP) have criticized the archbishop’s record, claiming he only “postures as someone who takes clergy sex crimes seriously.”

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Archdiocese of New Orleans offers 0 million to settle abuse claims
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Archdiocese of New Orleans offers $230 million to settle abuse claims

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St. Louis Cathedral in New Orleans. / Credit: travelview/Shutterstock

CNA Staff, Sep 9, 2025 / 14:53 pm (CNA).

After the Archdiocese of New Orleans increased its settlement offer to clergy sexual abuse claimants from $180 million to $230 million on Sept. 8, attorneys of the victims urged their clients to accept the deal.

The archdiocese was able to increase its initial offer, announced in May, after securing a buyer for the $50 million sale of Christopher Homes, a property that has provided affordable housing and assisted living to low-income and senior citizens in the Gulf Coast area for the last 50 years.

“We knew we could do better, and we have,” said attorneys Richard Trahant, Soren Gisleson, John Denenea, and several other attorneys who represent about 200 of the 660 claimants.

The attorneys, who said the initial settlement was “dead on arrival,” urged their clients to hold out for a better offer, saying that they deserved closer to $300 million, a figure similar to the $323 million paid out to about 600 claimants by the Diocese of Rockville Centre in New York in 2024. 

In the Diocese of Rockville Centre bankruptcy settlement, attorneys reportedly collected about 30% of the $323 million, or approximately $96.9 million. Similarly, the Los Angeles Archdiocese’s $660 million settlement in 2007 saw attorneys receiving an estimated $165-$217.8 million, or 25%-33% of the payout.

Payout amounts to individual claimants in the New Orleans case will be determined by a point system negotiated by a committee of victims. 

Administered by a trustee and an independent claims administrator appointed by the court, the point system is based on the type and nature of the alleged abuse. Additional points can be awarded for factors like participation in criminal prosecutions, pre-bankruptcy lawsuits, or leadership in victim efforts, while points may be reduced if the claimant was over 18 and consented to the contact. The impact of the alleged abuse on the victim’s behavior, academic achievement, mental health, faith, and family relationships can also adjust the score.

The settlement offer follows five years of negotiations in the U.S. Bankruptcy Court for the Eastern District of Louisiana, where the nation’s second-oldest Catholic archdiocese filed for bankruptcy in May 2020.

New Orleans Archbishop Gregory Aymond said in a statement Monday that he is “very hopeful and committed to bringing this bankruptcy to a conclusion that benefits the survivors of abuse,” he said. 

“I know there remains much work to be done, and I continue to hold this work in prayer. Please know that I pray for the survivors of abuse every day and look forward to the opportunity to meet with them to hear their stories firsthand.”

Two-thirds of the victims in the lawsuit will have to accept the offer by Oct. 29. If they do not, the case could be thrown out of bankruptcy, giving alleged victims a chance to pursue lawsuits individually.

A New Orleans man who filed a lawsuit in 2021 against a Catholic religious order unrelated to the New Orleans bankruptcy case recently won a $2.4 million jury verdict. 

In 2021, the Louisiana Legislature eliminated the statute of limitations for civil actions related to the sexual abuse of minors. The new law allows victims to pursue civil damages indefinitely for abuse occurring on or after June 14, 1992, or where the victim was a minor as of June 14, 2021, with a three-year filing window (which ended June 14, 2024) for older cases. 

The Diocese of Lafayette, along with the Archdiocese of New Orleans, the Diocese of Baton Rouge, the Diocese of Houma-Thibodaux, Catholic Charities, the Diocese of Lake Charles, and several other entities challenged the law’s constitutionality, arguing it violated due process, but the Louisiana Supreme Court upheld it in June 2024 in a 4-3 decision.

Critics argued the retroactive nature of the law risks unfairness to defendants unable to defend against decades-old abuse claims due to lost evidence and highlighted the potentially devastating financial impact.

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Federal court approves settlement between sex abuse survivors and Diocese of Rochester
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Federal court approves settlement between sex abuse survivors and Diocese of Rochester

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Cathedral of the Sacred Heart, Rochester, New York. / Credit: DanielPenfield via Wikimedia (CC BY-SA 3.0)

CNA Staff, Sep 8, 2025 / 12:37 pm (CNA).

One of the nation’s largest sexual abuse settlements unfolded in a federal bankruptcy court in Rochester, New York, on Friday, bringing about resolution for the nearly 500 survivors of child sex abuse by clergy within the Diocese of Rochester.

After a six-year legal battle, the U.S. Bankruptcy Court for the Western District of New York approved a $246 million settlement, which will average approximately $500,000 per survivor.

The settlement concludes a process that began when the diocese filed for Chapter 11 bankruptcy in 2019 following the passage of the New York Child Victims Act, which allows abuse victims to file civil lawsuits until they are 55 years old. The law temporarily lifted the statute of limitations, enabling survivors to pursue claims against their abusers.

Bankruptcy attorney Ilan Scharf described the day as a “milestone for survivors in the Rochester area after being the first bankruptcy filed in New York” after the passage of the Child Victims Act.

Survivors expressed a mix of emotions, with many ready to move forward.

Gregory Stanley noted: “The healing can start now, which is more important than the money. I’m just glad it’s over.” Merle Sweet echoed this sentiment, saying: “Relief. It’s all finally over,” while John McHugh added: “I am actually, for the first time, excited for the future.”

Attorney Mitchell Garabedian, representing 97 victims, emphasized the survivors’ resilience, stating in a press release that the process validated their experiences and contributed to a safer world for children, setting an example of determination for others globally.

Survivor Carol Dupre shared the profound impact on her community. “This was a real wounding of a lot of people and their families. There’s literally thousands upon thousands of people that have been negatively affected by what happened to us,” she said.

Bishop Salvatore Matano of the Diocese of Rochester addressed the media after the settlement, offering a message of hope and regret. “I pray that this is certainly a step toward their healing,” he said of the victims. “I apologize to them. I deeply regret what transpired in their lives, which, as the judge said, never should have happened.”

He continued: “While this process legally concludes today, I take them in my heart every day of my life, and every time I approach the altar, they will be in my memory, asking the good Lord to give them the strength and the courage to continue on, and that they be blessed in the years ahead.”

Matano issued a letter the same day in which he said the “settlement provisions can be effectuated” in the next several weeks. Of the $246 million settlement, $55 million will be paid by the diocese and affiliated entities, according to the letter, and the rest by the diocese’s insurers.

The bishop concluded the letter addressing abusers, saying he entrusts “them to Jesus, the final judge, and I pray they have acknowledged their offenses and used their remaining years to seek his mercy and have prayed fervently for those they have hurt.”

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Bankruptcy court accepts Diocese of Syracuse’s 6 million abuse settlement
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Bankruptcy court accepts Diocese of Syracuse’s $176 million abuse settlement

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The Cathedral of the Immaculate Conception in Syracuse, New York, where a federal court accepted the diocese’s $176 million settlement plan. / Credit: debra millet/Shutterstock

CNA Staff, Aug 28, 2025 / 12:00 pm (CNA).

A federal bankruptcy court has accepted the Diocese of Syracuse, New York’s massive $176 million abuse settlement plan, Bishop Douglas Lucia said this week.

The decision comes after a yearslong negotiation process between the diocese and victims of clergy abuse as well as between the diocese and insurers that will pay into the settlement fund.

Lucia said in an Aug. 27 letter that the diocese will contribute $100 million to the fund, as diocesan leaders first announced in 2023.

Fifty million dollars will come from the diocese itself, with $45 million from parishes and $5 million from “other Catholic entities” associated with the Syracuse Diocese.

The remaining $76 million will be contributed by diocesan insurance companies, the bishop said.

Further “nonmonetary items” in the agreement include provisions such as strengthening diocesan safe environment policies.

The diocese initiated the bankruptcy process in 2020. In his letter, Lucia thanked his fellow Catholics “who throughout these five years have prayed for this resolution and for those whose hearts were broken by the betrayal that came at the hands of Church members.”

“Together I now pray we will grow ever more as the body of Christ in this part of the world community,” he said.

The Syracuse decision comes amid a wave of high-value abuse settlement payouts from U.S. dioceses, including throughout New York.

Abuse victims in New York last month agreed to a massive settlement from the Diocese of Rochester, which is set to pay $246 million to survivors of clergy abuse there.

The Diocese of Buffalo, New York, earlier this year agreed to pay out a $150 million sum as part of its own abuse settlement.

The largest diocesan-level bankruptcy settlement in U.S. history thus far has been from the Diocese of Rockville Centre — also in New York — which last year agreed to pay $323 million to abuse victims.

The largest Church abuse payout total in U.S. history thus far has been at the Archdiocese of Los Angeles, which last year agreed to a near-$1 billion payment to abuse victims.

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