The Los Angeles County Board of Supervisors has unanimously initiated an investigation into allegations that individuals were compensated to file fraudulent claims in the county’s historic $4 billion sexual abuse settlement. This decision follows reports suggesting that some plaintiffs were paid by vendors to sue the county, with at least two individuals allegedly fabricating claims to become part of the litigation.
Supervisor Kathryn Barger emphasized the gravity of these allegations, stating, “Fraudulent claims do a grave disservice to survivors of childhood sexual abuse and to taxpayers.” She underscored the board’s commitment to protecting both by holding accountable those responsible and maintaining the integrity of the process designed to deliver justice and healing.
The investigation was prompted by findings that some plaintiffs in the extensive sex abuse settlement were paid by vendors to initiate lawsuits against the county. Notably, all the individuals in question were represented by Downtown L.A. Law Group (DTLA), which had over 2,700 cases involved in the settlement. DTLA has denied any involvement in such practices, asserting that they do not pay clients to file lawsuits and strongly oppose such actions. The firm has initiated an internal investigation to determine if any false claims were made.
In response to these developments, the Board of Supervisors has directed county attorneys to investigate the allegations of misconduct in sex abuse claims filed under Assembly Bill 218, the state legislation that extended the statute of limitations for childhood sexual abuse allegations. The attorneys are also tasked with exploring the possibility of referring misconduct allegations to the California State Bar and outlining ways to enhance oversight of abuse settlement agreements. Additionally, the board has called for the establishment of a hotline for reporting unethical or fraudulent behavior.
The $4 billion settlement, approved earlier this year, involves approximately 11,000 plaintiffs and is the largest of its kind in U.S. history. The financial implications have already led to budget cuts across various county departments, with many facing 3% reductions during the current fiscal year, along with reductions in some county services.
As the investigation unfolds, the county aims to ensure that the settlement process remains just and transparent, providing rightful compensation to legitimate survivors while safeguarding public resources from fraudulent claims.