Home / Business and Economy / Pension Stolen: Jury Awards $54M to Hospital Staff
Pension Stolen: Jury Awards $54M to Hospital Staff
13 Dec
Summary
- Jury awarded over $54 million to 1,100 ex-St. Clare's employees.
- Former bishops and hospital leaders were found liable for pension mismanagement.
- The pension fund had a $50 million shortfall when shut down in 2018.
A Schenectady County jury has delivered a significant verdict, awarding over $54 million in damages to more than 1,100 former employees of the defunct St. Clare's Hospital. The jury found that two former bishops of the Roman Catholic Diocese of Albany and former hospital leadership breached their fiduciary duties, leading to the pension plan's collapse in 2018 with a $50 million deficit.
This ruling represents a major triumph for the former hospital staff who dedicated years of service and were subsequently denied their rightful pensions. State Attorney General Letitia James hailed the verdict, emphasizing that no one should be deprived of promised retirement funds and vowing to pursue justice against those who violate trust.
The case's next steps include a trial to determine punitive damages, with any awarded amounts subject to approval in the diocese's ongoing bankruptcy case. The verdict also impacts hundreds of child sex abuse victims with claims against the diocese, who are also unsecured creditors in the bankruptcy proceedings.
