Albany Diocese files for bankruptcy as hundreds of sex abuse suits pile up

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Albany Diocese files for bankruptcy as hundreds of sex abuse suits pile up
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The Roman Catholic Diocese in Albany has filed for bankruptcy to help address the financial fallout from the droves of child sexual abuse lawsuits it faces.

during the Child Victims Act window allowing survivors to sue regardless of whether the claims were outside of the statute of limitations.

“It had come to the point where actually our financials were showing that we were going to have a shortfall in our ability to maintain our pension and also to pay our employees,” Scharfengerger said. “It was now or never, basically.” The cleric said the church’s self-insurance funds were nearly depleted after paying out dozens of individual settlements.Scharfenberger said bankruptcy would ensure all the plaintiffs with open cases would receive compensation.

Lawyers for victims with pending sex abuse cases claim bankruptcy is a legal move with the diocese claiming it has far less assets than in actuality.A group of lawyers representing 190 of the victims in cases against the Albany Diocese have accused the church of understating their assets and filing for Chapter 11 bankruptcy as a legal tactic.

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