The lawsuit follows an announcement from the diocese that 'the staggering legal costs' of hundreds of sex abuse lawsuits it faces could force it to file for bankruptcy.
McElroy's letter states,"Bankruptcy would provide a pathway for ensuring that the assets of the diocese will be used equitably to compensate all victims of sexual abuse, while continuing the ministries of the church for faith formation, pastoral life and outreach to the poor and the marginalized."
"This diocese and its parishes have engaged in a conspiratorial enterprise to defraud child abuse victims and to deny them the justice they deserve," Zalkin said. The lawsuit also alleges Assembly Bill 218's passage prompted the diocese to enter into an"Independent Compensation Fund," which provides settlements to victims whose claims first must be approved by a claim evaluator. The suit alleges those victims would have been eligible to file lawsuits due to AB 218, but instead were coaxed into submitting claims through the Independent Compensation Fund and settled"for pennies on the dollar.
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