Hundreds of recently filed sexual abuse lawsuits could lead to the bankruptcy of the Catholic Diocese of Sacramento, its bishop says.
Los Angeles County agrees to pay the Bryant family $28.5 million in a settlement over photos of the crash in which Kobe Bryant, the Lakers star’s daughter and seven others were killed.
“Given the number of claims that have been presented ... resolving them may overwhelm the diocese’s finances available to satisfy such claims,” he wrote. The lawsuits filed against the Diocese of Sacramento and other dioceses in Northern California are being overseen by a judge in Alameda County, and the claims process is still in its early stages, Soto said.
“Very little insurance coverage remains to cover abuse that occurred in past decades,” the diocese said on its website, and financial help from the Vatican “is not an option.”One option, Soto said, would be for the diocese to file Chapter 11 bankruptcy, which would allow it to operate while attempting to pay out the rest of lawsuits.
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