On November 6, 2025, New York Attorney General Letitia James issued a statement as the trial began against the Roman Catholic Diocese of Albany and leaders associated with the former St. Clare’s Hospital. The case centers on allegations that hospital leadership failed to properly fund and manage pension plans for employees.
“No one should ever endure the financial and emotional burden of losing their retirement. St. Clare’s Hospital’s leadership deprived hundreds of nurses, social workers, lab technicians, and other employees of their pensions after they spent years working tirelessly to care for the sick. These workers deserve the pensions they worked hard for, and we are fighting to recover those funds and hold St. Clare’s leadership accountable,” said Attorney General James.
The lawsuit was filed in May 2022 by Attorney General James against the Diocese, its bishops, senior executives who managed St. Clare’s Hospital, and St. Clare’s Corporation. The complaint claims that these parties violated fiduciary duties under New York law by not securing employee pensions, failing to make regular annual contributions from 2000 to 2019 except for two years, and concealing information about the pension plan’s collapse from vested employees.
In May 2025, a judge rejected efforts by the Diocese and other defendants to dismiss the case before trial. The current trial is taking place before Judge Vincent Versaci at the Supreme Court of the State of New York in Schenectady County.
