CALIFORNIA
Lodi News-Sentinel
By Ross Farrow/News-Sentinel Staff Writer
This week’s $1.75 million settlement with a former parishioner who says he was sexually abused by defrocked priest Oliver O’Grady has Stockton Diocese officials seriously considering bankruptcy.
“No decision has been made,” Sister Terry Davis said on Thursday. “But our reserve funds have been virtually depleted, and we have four more cases coming at us.”
It will be three to five months before Bishop Stephen Blaire and other diocese leaders decide whether to file for bankruptcy, Davis said. The diocese’s reserves are now less than $1 million, she added.
The diocese and a man who was reportedly sexually abused by O’Grady in the 1980s agreed to the settlement on Monday, according to a press release from the diocese. The diocese will pay the victim $875,000 of the settlement amount, with the remainder to come from the diocese’s insurance, Davis said.
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