November 24, 2009 in Region

Alaska diocese agrees to $10M abuse settlement

Associated Press

ANCHORAGE, Alaska — The Catholic Diocese of Fairbanks and representatives of almost 300 alleged victims of clergy abuse have agreed on a settlement of almost $10 million.

The agreement was discussed Tuesday at a status hearing in federal bankruptcy court and will need to be finalized.

Plaintiffs’ attorney Ken Roosa says some of the payoff would be put aside to pursue as much as another $100 million from two of four insurance companies for the diocese that have balked at paying. The rest would be divided among alleged victims, depending on the severity of abuse.

Complaints of sexual abuse of a minor have been filed in recent years against the diocese, with some allegations dating back 50 years.

The diocese filed for bankruptcy protection last year and all proceedings are overseen in bankruptcy court in Anchorage.

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