LA County Reaches $828 Million Settlement in Abuse Claims

Los Angeles County announced a tentative $828 million settlement Friday with more than 400 plaintiffs who claim they were victims of childhood sexual abuse by county workers, adding to financial pressures already straining the county’s budget.

The agreement follows an earlier $4 billion settlement reached with approximately 11,000 claimants, bringing the total financial commitment to nearly $5 billion. The massive payouts have already forced the county to implement spending cuts, with many departments operating under 3% budget reductions during the current fiscal year.

Both settlement packages stem from claims made possible by California’s Assembly Bill 218, which temporarily suspended the statute of limitations for childhood sexual abuse allegations. Some claims date back more than six decades to 1959, creating a sprawling legal challenge for the county.

Before taking effect, the new $828 million settlement requires approval from the county Claims Board and Board of Supervisors. The approval process comes amid heightened scrutiny over potential fraud in the claims system.

“The system created by AB 218 is inherently vulnerable to fraud, but the county established fraud protections from the beginning of the settlement discussions and has now strengthened the review process to further ensure that money goes only to the true victims of abuse,” said Board of Supervisors Chair Kathryn Barger in a statement.

County officials emphasized that every individual abuse claim will undergo careful review. Claimants must provide a “detailed, multi-page written factual summary, under penalty of perjury, of the alleged misconduct and resulting harms” before receiving any settlement funds.

The enhanced vetting process follows recent allegations of potential fraud that have cast a shadow over the massive settlement. Last week, the Board of Supervisors directed its legal team to investigate claims that some individuals were paid to file lawsuits and become plaintiffs in the litigation.

These allegations emerged following an investigation by the Los Angeles Times, which reported that some plaintiffs in the settlement were allegedly paid by vendors to sue the county. In at least two cases, according to the Times report, claims were fabricated entirely.

The Times investigation identified seven plaintiffs who said they were paid by “recruiters” for a law firm to join the litigation. The plaintiffs in question were reportedly all represented by Downtown LA Law Group (DTLA), a firm handling more than 2,700 cases involved in the abuse settlement.

DTLA has denied any wrongdoing, stating they never authorized payments to potential plaintiffs. “The allegations in this story are extremely concerning and describe conduct that is contrary to our firm’s values,” the firm told the Times. “While we do not believe they are accurate, we are taking them seriously.” The firm has reportedly hired an external company to investigate whether any false claims were submitted.

In response to these allegations, Los Angeles County has intensified its verification process. Plaintiffs suspected of submitting fraudulent claims will face additional scrutiny from an independent allocator who may require supplementary evidence. Those found to have filed fraudulent claims will be excluded from the settlement process and receive no compensation.

County Counsel Dawyn R. Harrison expressed strong concerns about the alleged misconduct. “The conduct alleged to have occurred by the DTLA firm is absolutely outrageous and must be investigated by the appropriate authorities,” Harrison said. “Not only does it undermine our justice system, it also deprives legitimate claimants of just compensation.”

Harrison called for legislative protections to prevent similar situations in the future, ensuring that “unscrupulous lawyers don’t get windfalls at the expense of survivors of abuse.”

The settlements represent one of the largest financial commitments by a local government entity to address historical claims of child sexual abuse. As the county works to balance its moral and financial obligations, the impact on county services and taxpayers continues to grow, with the full ramifications likely to be felt for years to come.