LOS ANGELES — Los Angeles County on Friday, Oct. 18, announced a tentative $828 million settlement with more than 400 plaintiffs who claim they were the victims of childhood sexual abuse at the hands of county workers.
The settlement is on top of an earlier $4 billion settlement reached on behalf of roughly 11,000 claimants. That settlement has already led to financial consequences for the county, including curtailments in spending and many county departments coping with 3% budget cuts during the current fiscal year. Some county services are also undergoing reductions.
The various claims involved in the settlements were the result of AB 218, which temporarily lifted the statute of limitations on allegations of childhood sexual abuse. The claims included in the two settlements involve allegations dating back as far as 1959.
The latest $828 million proposed settlement still needs to be approved by the county Claims Board and the Board of Supervisors.
County officials said that in light of recent allegations that some plaintiffs may have made fraudulent damages claims, every individual abuse claim will be carefully reviewed. Every claim involved in both settlements will be vetted, individual plaintiffs being required to provide a “detailed, multi-page written factual summary, under penalty of perjury, of the alleged misconduct and resulting harms.”
“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,” Board of Supervisors Chair Kathryn Barger said in a statement. “Our settlements balance our obligation to compensate victims and treat their experiences with compassion with the need to put strong protections in place to protect taxpayers from fraud.”
The Board of Supervisors last week directed its attorneys to investigate allegations that some people included in the $4 billion settlement of sex abuse claims were paid to file lawsuits and become plaintiffs in the litigation.
In a statement Friday announcing the latest proposed settlement, county officials said any plaintiffs suspected of submitting fraudulent damages claims “will be required to make a substantiated showing before an independent allocator, who may require additional proof of claims.”
Any claim found to be fraudulent will result in the plaintiff being removed from the settlement process, meaning they will not receive any money.
“The conduct alleged to have occurred by the DTLA firm is absolutely outrageous and must be investigated by the appropriate authorities,” County Counsel Dawyn R. Harrison said in a statement. “Not only does it undermine our justice system, it also deprives legitimate claimants of just compensation.
“While both settlements have protections to ensure that this is not a windfall for fraudulent plaintiffs, legislative protections must be put in place to ensure unscrupulous lawyers don’t get windfalls at the expense of survivors of abuse.”