LOS ANGELES – The county Board of Supervisors Tuesday directed its attorneys to investigate allegations that some people included in a landmark $4 billion settlement of sex abuse claims against county workers were paid to file lawsuits and become plaintiffs in the litigation.
“Fraudulent claims do a grave disservice to survivors of childhood sexual abuse and to taxpayers,” Supervisor Kathryn Barger said in a statement after the unanimous board vote. “This motion ensures we are protecting both by holding bad actors accountable while maintaining the integrity of a process designed to deliver justice and healing.”
The investigation follows a Los Angeles Times report earlier this month that some plaintiffs in the sweeping sex abuse settlement were paid by vendors to sue the county, and in at least two cases, fabricate claims so they could become plaintiffs.
According to The Times, the plaintiffs in question were all represented by Downtown LA Law Group, or DTLA, which had more than 2,700 cases involved in the abuse settlement.
The law firm categorically denied paying anyone to sue, saying no representatives of the firm were ever authorized to offer people money. The firm told The Times it has hired an outside company to investigate if any false claims were made.
“The allegations in this story are extremely concerning and describe conduct that is contrary to our firm’s values,” the firm told The Times in a statement. “While we do not believe they are accurate, we are taking them seriously.”
According to The Times, its investigation found seven plaintiffs who said they were paid by “recruiters” for a law firm to become involved in litigation against the county.
Several board members said during Tuesday’s meeting they were highly disturbed by The Times’ report, noting that the $4 billion settlement was designed to provide justice for legitimate abuse victims.
Supervisor Lindsey Horvath said the settlement money “must truly reach those were harmed,” not people “looking to profit from someone else’s suffering.”
Supervisor Hilda Solis said the report of alleged fraud “really upset me.”
“I can’t stand for fraud and criminality,” Solis said.
Barger’s motion calls on county attorneys to investigate the allegations of misconduct in sex-abuse claims filed against the county under AB 218, the state legislation that extended the statute of limitations for childhood sex abuse allegations. Attorneys were also directed to explore the possibility of referring misconduct allegations to the California State Bar, while outlining ways of boosting oversight of abuse settlement agreements and establishing a hotline for people to report unethical or fraudulent behavior.
Attorneys were instructed to report back to the board within 14 days with updates on the claims review process and the implementation of establishing the fraud hotline.
The $4 billion settlement approved earlier this year involves roughly 11,000 plaintiffs, and its cost has already forced curtailments in spending, with many county departments facing 3% budget cuts during the current fiscal year, along with reductions in some county services.
