A new lawsuit claims the Roman Catholic Diocese of San Diego attempted to hide real estate holdings valued at more than $450 million to avoid paying out legal settlements to hundreds of victims of childhood sexual abuse.
The lawsuit follows a February announcement from the diocese that “staggering” legal costs from hundreds of new sex abuse lawsuits could force it to file for bankruptcy.
Cardinal Robert McElroy wrote in a letter to parishioners that most of the assets were “depleted” due to settling earlier abuse claims. Facing new lawsuit filings, the diocese may consider bankruptcy to compensate victims, he wrote.