Covington, Ky., Jul 8, 2004 / 22:00 pm
An attorney for the Diocese of Covington announced Wednesday that the diocese is considering filing for bankruptcy in order to remain financially solvent.
The Covington Diocese has already paid out $14 million to settle claims of sexual abuse. But it is currently facing a class-action lawsuit, alleging a widespread cover-up of abuse by diocesan officials, which could cost it tens of millions of dollars. The plaintiffs' attorneys claim to have hundreds of victims, involving more than 50 priests over the past half century.
Earlier this week, the Archdiocese of Portland, Ore., filed for bankruptcy for the same reason.
"There is a popular myth that Catholic dioceses have unlimited funds and an unlimited ability to generate contributions from the faithful,” said attorney Carrie Huff of Chicago, who is defending the Covington Diocese in the lawsuit. “Portland, and probably several other dioceses, are about to demonstrate that this assumption is at odds with reality."