More than two years after La Reina High School and Middle School closed its doors, a Ventura County Superior Court judge has ruled that the lawsuit challenging the closure can move forward. The decision allows former students, parents and donors to pursue claims that La Reina and its parent organization, SND National Ministry Corporation, concealed plans to shut the Thousand Oaks Catholic school while continuing to recruit students and solicit donations.
Key legal findings
The judge did not find La Reina or SND National Ministry Corporation liable at this stage. Instead, the court determined that the plaintiffs’ latest complaint contains enough specific allegations about what school officials allegedly knew, and when they knew it, for three causes of action—fraudulent concealment, fraudulent misrepresentation, and violation of California’s Unfair Competition Law—to proceed. The plaintiffs may also continue seeking punitive damages.
Alleged timeline of the closure decision
According to the complaint, the school and its national organization decided by June 2023, at the latest, to close at the end of the 2023‑24 school year, but did not inform the school community until Jan. 24, 2024. During the intervening months, La Reina allegedly continued recruiting students, held entrance exams on Jan. 13 and Jan. 20, 2024, and ran a “Freshman For A Day” event in November 2023, a Giving Tuesday fundraiser, and a Dec. 15, 2023 email urging families to recruit for the 2024‑25 school year.
Specific allegations against former president
Former La Reina President Guevara is accused of knowing about the planned closure while encouraging continued enrollment activities. The complaint cites a statement that Guevara told at least one administrator the exams should proceed “so as not to give anything away.” The court found these allegations sufficient for a fraudulent‑concealment claim to proceed, though it dismissed a separate fraud claim based on false statements because the complaint did not identify a specific false statement made directly to any plaintiff.
Financial pressures cited by the school
Guevara told the school community that enrollment had fallen 53 % over eight years, dropping from 575 students to 268, and that dwindling financial reserves made continued operation unsustainable. The plaintiffs argue that the school continued to solicit donations, including a five‑figure stock donation from donor Francine Bradley on Dec. 27, 2023, without disclosing the impending closure.
Governance and alter‑ego claims
The lawsuit also alleges that La Reina and the national organization functioned as alter egos, pointing to alleged commingling of funds, overlapping officers, lack of independent governance, and undercapitalization. While these allegations remain unproven, the court found them detailed enough to allow the related claims to proceed.
Board vote controversy
Plaintiffs contend that the national organization directed the La Reina board to vote on the closure in January 2024. They claim four board members who believed the school remained financially viable were removed and replaced, leading to a five‑member board voting on Jan. 22 to close the school. The plaintiffs argue the vote violated bylaws requiring 13 directors, while defendants say an amendment on Jan. 19 allowed a board of three or more directors. The court declined to take judicial notice of the amendment document, leaving the validity of the amendment unresolved.
Next steps
The case, originally filed on Feb. 27, 2024, has undergone multiple revisions and a brief detour into federal court before returning to Ventura County Superior Court. With the latest ruling, the plaintiffs can continue pursuing their claims, including punitive damages, while the court will ultimately decide whether the alleged fraud and concealment can be proven.
Community impact
The closure of La Reina, an all‑girls Catholic college‑preparatory school founded in 1964, sparked significant community backlash. About 250 people attended a rally on Feb. 4, 2024, and a “Save La Reina” group formed to keep the school open. While the lawsuit proceeds, the case remains a focal point for parents and alumni concerned about transparency and stewardship of Catholic education in the Conejo Valley.
Original reporting: Thousand Oaks Acorn — read the source article.
