The Archdiocese of New Orleans declined to comment on Monday after the settlement figure was released, but has in the past denied any wrongdoing.
Katrina, which hit New Orleans during August 2005, killed at least 1,800 people and devastated much of the city. In the years since Katrina and Rita, which hit the region the month after, the Federal Emergency Management Agency has paid out nearly $20 billion in relief.
“FEMA offers critical financial support when natural disasters strike,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division in a statement released by the department Monday.
“The Department of Justice is committed to ensuring that these taxpayer funds are properly spent to help disaster victims rebuild their communities,” he said. The release noted that the claims alleged in the lawsuit “are allegations only, and there has been no determination of liability.”
During the 2007-13 period, the archdiocese was led by Archbishop Alfred Hughes and Archbishop Gregory Aymond. Aymond, the current archbishop, succeeded Hughes in Aug. 2009.
The settlement, which is based on the Archdiocese of New Orleans’ financial condition, required final approval of the U.S. Bankruptcy Court for the Eastern District of Louisiana, which approved the settlement on Oct. 26. The Archdiocese of New Orleans filed for Chapter 11 bankruptcy on May 1, 2020 amid a number of lawsuits related to historical sexual abuse of minors.
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