Los Angeles County Reaches $828 Million Settlement for Abuse Claims Following Earlier $4 Billion Agreement

Los Angeles County announced a tentative $828 million settlement Friday with more than 400 plaintiffs who claim they suffered childhood sexual abuse at the hands of county employees, adding to the financial strain already facing the county after a previous $4 billion settlement.

The new agreement comes as the county deals with the fallout from an earlier settlement involving approximately 11,000 claimants, which has resulted in 3% budget cuts across numerous county departments and reductions in various public services during the current fiscal year.

Both settlements stem from claims made possible by Assembly Bill 218, which temporarily lifted the statute of limitations for childhood sexual abuse allegations. The cases in both settlements involve accusations dating as far back as 1959.

The proposed $828 million settlement still requires approval from the county Claims Board and Board of Supervisors before becoming final. County officials emphasized that every individual claim will undergo rigorous review, particularly in light of recent fraud allegations.

“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.

Barger noted that the settlements aim to balance compensating genuine victims while implementing strong protections for taxpayers against fraudulent claims. Each plaintiff must provide a “detailed, multi-page written factual summary, under penalty of perjury, of the alleged misconduct and resulting harms.”

The heightened scrutiny follows a Los Angeles Times investigation that uncovered troubling allegations that some individuals included in the $4 billion settlement may have been paid to file lawsuits against the county. The Board of Supervisors directed its attorneys last week to investigate these claims.

According to The Times report, vendors allegedly paid some plaintiffs to sue the county, with at least two cases involving fabricated claims. 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 strongly denied the allegations, stating that it never authorized anyone to offer payments for litigation participation. “The allegations in this story are extremely concerning and describe conduct that is contrary to our firm’s values,” the firm told The Times. The law firm has reportedly hired an outside company to investigate whether any false claims were submitted.

The Times investigation identified seven plaintiffs who claimed they received payments from “recruiters” working for a law firm to participate in litigation against the county.

In Friday’s announcement, county officials outlined enhanced verification measures, stating that plaintiffs suspected of submitting fraudulent claims “will be required to make a substantiated showing before an independent allocator, who may require additional proof of claims.” Any plaintiff found to have submitted fraudulent information will be removed from the settlement process and receive no compensation.

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

Harrison also called for legislative protections “to ensure unscrupulous lawyers don’t get windfalls at the expense of survivors of abuse,” acknowledging that while both settlements include provisions to prevent fraudulent claims from succeeding, stronger systemic safeguards are needed.

The settlements represent one of the largest financial obligations Los Angeles County has ever faced, raising questions about long-term fiscal stability and the delivery of essential services to residents as the county attempts to meet these massive financial commitments while maintaining daily operations.