(Trends Wide) — The Diocese of Oakland in California is considering Chapter 11 bankruptcy after more than 300 lawsuits were filed alleging sexual abuse, Oakland Bishop the Rev. Michael C. Barber said in a statement Thursday.
The lawsuits came after a 2019 California law allowed sexual assault victims of any age to file a lawsuit between January 2020 and December 2022.
Now that the window is closed, the Oakland diocese faces approximately 330 lawsuits, but “the full magnitude will become clear” as the court processes the lawsuits, the statement said.
“After much prayer and thoughtful counseling, I believe that bankruptcy can provide a way to support all survivors in their journey to healing in an equitable and comprehensive manner,” Barber said. “It will also allow the diocese to reorganize our financial affairs so that we can continue to fulfill the sacred mission entrusted to us by Christ and the Church.”
The Oakland diocese is not alone in its bankruptcy considerations. Of the 12 Catholic dioceses in the state of California, at least seven have filed for bankruptcy since January 2023.
On March 13, the diocese of Santa Rosa, in northern California, filed for Chapter 11 bankruptcy after receiving notification of 160 lawsuits against it, according to a statement.
The dioceses of Sacramento, San Diego and San Bernardino also publicly announced that they are also considering Chapter 11 bankruptcy on the night of lawsuits filed under California state law.
Trends Wide is contacting the other seven dioceses to see if this is a move they are considering.
In 2017, the Stockton diocese reorganized after filing for Chapter 11 bankruptcy due to sexual abuse lawsuits, they said in a statement. The court-approved plan included $15 million for the victims, as well as “non-monetary commitments that are important aspects of any healing process,” they said.
