Clergy Abuse Victims Sue Bankrupt Oakland Diocese Over Assets

A committee of sex abuse survivors involved in the bankruptcy proceedings for the Roman Catholic Bishop of Oakland sued the California diocese, saying it was improperly “shielding” hundreds of millions of dollars that should be used for settlements.

The official committee of unsecured creditors in the Oakland diocese’s Chapter 11 case filed suit Wednesday in the US Bankruptcy Court for the Northern District of California. The group, which represents more than 300 clergy abuse claimants, alleges that the diocese is artificially undervaluing the assets at its disposal for funding a bankruptcy plan and paying creditors.

Prior to filing for bankruptcy ...