Los Angeles County’s Board of Supervisors has initiated an investigation into alarming allegations surrounding a historic $4 billion settlement that resolved sex abuse claims against county workers.
On Tuesday, the board unanimously directed its legal team to look into claims that some individuals included in the settlement may have been compensated to file lawsuits, with some even allegedly fabricating claims to participate as plaintiffs.
Supervisor Kathryn Barger emphasized the serious implications of fraudulent claims, stating, “Fraudulent claims do a grave disservice to survivors of childhood sexual abuse and to taxpayers.”
She continued, stating that the motion aims to hold wrongdoers accountable and preserve the integrity of a legal process that should focus on delivering justice and healing to genuine survivors.
This inquiry follows a detailed report by the Los Angeles Times highlighting instances where certain plaintiffs reportedly received payments from vendors to pursue litigation against the county.
Notably, it was mentioned that many of these plaintiffs were represented by the Downtown LA Law Group, which participated in over 2,700 cases connected to the settlement.
In response to the allegations, the Downtown LA Law Group firmly denied any wrongdoing, asserting that they never authorized anyone to pay individuals to sue.
They further informed The Times that they were engaging an outside firm to examine the authenticity of the claims made by these plaintiffs.
In a statement, the law firm expressed deep concern over the allegations, describing the reported conduct as contrary to their values, while maintaining their belief that the accusations were inaccurate.
The Times’ investigation revealed seven individuals who claimed they were financially incentivized by “recruiters” from the law firm to join the litigation against the county.
During the Board of Supervisors meeting, several members expressed their deep dismay regarding the findings from The Times, highlighting that the monumental settlement was intended to provide justice for actual abuse victims.
Supervisor Lindsey Horvath stressed that the settlement funds should genuinely benefit those harmed, rather than individuals seeking to exploit the situation for financial gain.
Similarly, Supervisor Hilda Solis conveyed her disappointment, stating, “I can’t stand for fraud and criminality.”
Barger’s motion specifically instructs county attorneys to investigate the misconduct allegations related to sex-abuse claims filed under AB 218, the legislation that had extended the statute of limitations for such claims.
The board is also considering referring any misconduct findings to the California State Bar, as well as exploring enhanced oversight for abuse settlement agreements and the establishment of a hotline for individuals to report unethical or fraudulent practices.
County attorneys are required to report back to the board within two weeks with updates on both the claims review process and the implementation of the fraud hotline.
The $4 billion settlement, approved earlier this year, encompasses approximately 11,000 plaintiffs and has already necessitated budget cuts across various county departments, with many facing reductions of up to 3% during the current fiscal year alongside cuts to service provisions.
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