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Los Angeles County has announced a tentative $828 million settlement with over 400 plaintiffs who claim they suffered childhood sexual abuse by county workers, adding to an earlier $4 billion settlement that addressed claims from approximately 11,000 individuals.
The massive financial burden has already forced the county to implement significant budget measures, including 3% cuts across many departments in the current fiscal year and reductions in certain county services.
Both settlements stem from claims enabled by Assembly Bill 218 (AB 218), which temporarily lifted the statute of limitations on childhood sexual abuse allegations. The cases involved in these settlements include accusations dating back to 1959.
Before becoming final, the proposed $828 million settlement requires approval from both the county Claims Board and the Board of Supervisors. County officials emphasized that every individual abuse claim will undergo rigorous scrutiny, 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 Los Angeles County Board of Supervisors Chair Kathryn Barger.
Last week, the Board of Supervisors directed county attorneys to investigate allegations that some claimants included in the $4 billion settlement were reportedly paid to file lawsuits against the county. This investigation follows a Los Angeles Times investigation that uncovered evidence suggesting some plaintiffs were compensated by vendors to sue the county, with at least two cases involving allegedly fabricated claims.
According to The Times’ reporting, the plaintiffs in question were all represented by Downtown LA Law Group (DTLA), a firm responsible for over 2,700 cases within the abuse settlement. The law firm has strongly denied paying anyone to file lawsuits and stated that no representatives were authorized to offer financial incentives. DTLA told The Times it has hired an outside company to investigate the possibility of fraudulent claims.
“The allegations in this story are extremely concerning and describe conduct that is contrary to our firm’s values,” the firm said in a statement to The Times. “While we do not believe they are accurate, we are taking them seriously.”
The Times investigation identified seven plaintiffs who claimed they were paid by “recruiters” working for a law firm to participate in litigation against the county.
County officials announced that plaintiffs suspected of submitting fraudulent claims will face additional scrutiny, requiring them to provide substantial evidence before an independent allocator, who may demand further proof. Any claim determined to be fraudulent will result in the plaintiff’s removal from the settlement process, disqualifying them from receiving compensation.
County Counsel Dawyn R. Harrison condemned the alleged conduct by the DTLA firm as “absolutely outrageous” and called for investigations by appropriate authorities. “Not only does it undermine our justice system, it also deprives legitimate claimants of just compensation,” Harrison stated.
Harrison further noted that while both settlements include safeguards against fraudulent claims, legislative protections must be established to prevent “unscrupulous lawyers” from profiting at the expense of genuine abuse survivors.
The settlements represent one of the largest payouts by a public entity for sexual abuse claims in U.S. history. The financial impact on Los Angeles County’s budget will likely be felt for years to come, as the massive settlement amounts must be paid while maintaining essential public services for the county’s approximately 10 million residents.
The controversy highlights the delicate balance between providing just compensation to victims of abuse while protecting taxpayer resources from potential fraud—a challenge that has become increasingly complex in the wake of laws like AB 218 that expand the timeframe for filing historical abuse claims.
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7 Comments
It’s concerning to see the county having to make significant budget cuts to accommodate these settlements. I hope the funds are allocated as effectively as possible to support the victims.
With the potential for fraud, the county’s fraud protection measures will be put to the test. Thorough investigation of each claim is critical to ensure the settlements reach the intended beneficiaries.
The scale of these settlements highlights the devastating impact of childhood abuse. While the financial burden is substantial, providing justice and support for victims should be the priority.
Absolutely, the wellbeing of the victims must come first. Hopefully this settlement can bring some measure of closure and healing for those who suffered.
This is certainly a significant settlement, though the details around the claims and abuse allegations will be critical. Rigorous scrutiny is essential to ensure that legitimate victims receive justice while protecting against potential fraud.
Agreed, the fraud protection measures will be key here. Careful review of each case is important given the large sums involved and the historical nature of the claims.
The fact that these claims date back to 1959 shows how important it is to have laws like AB 218 that empower victims to come forward, even decades later. Transparency will be crucial going forward.