San Francisco Archdiocese Creditors Sue Over Millions in Assets

A bankrupt California archdiocese was accused of hiding assets that creditors say could be worth hundreds of millions of dollars and used to increase potential payouts for more than 500 clergy sex abuse claimants.

The Roman Catholic Archbishop of San Francisco “concocted a fiction” that its parishes, cemeteries, high schools, retreat center, and clergy house aren’t part of its bankruptcy estate, a committee of unsecured creditors said in a new suit filed Tuesday in the US Bankruptcy Court for the Northern District of California.

“These operating divisions are not legally separate from the archdiocese, and there is no basis for ...