Terms of the settlement, reached in mid-December after two years of negotiations, remained confidential at the plaintiffs' request, according to Bishop Curtis J. Guillory of Beaumont.
In a letter to Catholics of the diocese announcing the settlement, the bishop said that as the agreement was being reached, the court was considering motions on behalf of the diocese that could have resulted in dismissal of the suit.
"The attorney for the diocese continues to advise that we had valid defenses to all the plaintiffs' claims," said the bishop.
"However, from the beginning, all the parties recognized that it would be in the best interest for all involved if the case could be resolved outside of the legal system. I believe we have acted in a responsible and amicable manner in the disposition of these allegations. My decision to settle this lawsuit at this time has been the result of much prayer, consultation and reflection," Bishop Guillory said.
"I am deeply saddened by the sexual abuse scandals that have affected the church and now our own diocese and the southeast Texas community," he said. "These global scandals have profoundly impacted many lives and have grieved our priests including myself."