Diocese of Oakland proposes $117 million-plus fund in clergy sex abuse deal; victims’ attorneys call it ‘a scam and a sham’
OAKLAND — The Diocese of Oakland this week proposed creating a trust worth at least $117 million to help settle hundreds of lawsuits alleging decades of sexual abuse by its priests, in a deal that victims’ attorneys immediately labeled “pathetic.” The diocese’s proposed payout highlighted a reorganization plan it filed late Friday to emerge from Chapter 11 bankruptcy and settle roughly 350 lawsuits from people claiming to have been abused by the Catholic church’s leaders. The trust would be funded over the course of several years and include the title to a Livermore property the church says could add tens of millions of dollars in value to the victims’ trust. Attorneys for the sexual assault victims called the plan “a scam and a sham” on Saturday, alleging the diocese undervalued its assets as a means to avoid paying more. If approved, the payout would be less than an $880 million settlement reached last month between the Archdiocese of Los Angeles and more than 1,350 people who sued church leaders in Southern California. “It’s what we call a cram-down plan,” said Rick Simons, an attorney for numerous