The Archdiocese of New York has agreed to a proposed settlement exceeding $800 million with 1,300 individuals who allege they were sexually abused by Catholic clergy members and lay leaders.
Lawyers for the plaintiffs informed archdiocesan priests about the proposed agreement in an email sent late Friday, according to The New York Times.
The settlement cannot take effect unless all alleged victims approve its terms.
Archbishop Ronald A. Hicks told The Times on Saturday that the agreement will not be finalized until it has been signed by the plaintiffs, their attorneys and the archdiocese.
“We are on the verge of being able to, please God, bring some measure of healing and reconciliation to all victim-survivors,” he told the outlet.
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Under the proposed terms, every plaintiff could receive at least $250,000 in a lump-sum payment. Some claimants may be eligible for larger amounts, based on an assessment of the severity of the abuse they say they suffered, The Times reported.
Attorneys for the alleged victims warned that rejecting the deal could lead the archdiocese to file for bankruptcy protection.
Such a move would likely mean substantially lower payouts and could extend litigation that has already lasted for years, according to The Times.
Lawyers said plaintiffs who reject the offer would still be covered by a separate arrangement between the archdiocese—which serves Manhattan, the Bronx, Staten Island and parts of the Hudson Valley—and an insurer. Under that agreement, $20 million would be reserved for those who decline the main settlement and divided equally among them.