Los Angeles County reaches new $828M deal with abuse victims

Bloomberg News

Los Angeles County reached a tentative agreement to pay an additional $828 million to victims of childhood sexual abuse who filed lawsuits under a 2019 state law that raised the statute of limitations for such cases.

The settlement addresses 400 lawsuits involving victims who said they were abused in county facilities at various points between 1959 and 2023. 

The deal, which has not yet been finalized, follows a record $4 billion agreement in April covering about 6,800 claims opened up by the law. Since April another 4,200 or so victims have been added to the settlement. 

Assembly Bill 218, gave victims 22 years from the time they become adults to sue public entities for decades-old abuse, rather than eight years previously. It also lowered the burden of proof required in such cases. 

Municipal governments and school districts across California have said they may see sizable ongoing costs from AB 218 at a time when the region is still reeling from historic wildfires, immigration raids and budget cutbacks.

California's Fiscal Crisis and Management Assistance Team warned in a January report that the law will have a substantial and ongoing financial impact on public agencies across the state, likely forcing cuts to programs and services.

The settlements have already strained Los Angeles County's finances, forcing cuts to public services and prompting officials to consider borrowing to cover the ballooning costs. Chief Executive Officer Fesia Davenport said in July that debt repayments tied to AB 218 could total hundreds of millions of dollars over two decades.

The county is also facing roughly 2,500 additional cases beyond those covered by the two settlements, according to county officials. 

Acting county chief executive officer Joe Nicchitta said on Friday, in a public announcement of the settlement, that without legislative reform, the mounting liabilities could undermine key safety-net programs. 

If the new settlement is approved by the County Claims Board and the Board of Supervisors, an independent group of retired judges will review each claim to determine compensation and screen for fraud. County officials said they have strengthened vetting measures amid allegations that some attorneys induced clients to file false claims in exchange for cash.

"The system created by AB 218 is inherently vulnerable to fraud," Board of Supervisors Chair Kathryn Barger said in a statement. "We've reinforced safeguards to ensure taxpayer dollars go only to true victims."

The county is also implementing new measures to prevent future abuse, including a countywide hotline, mandatory training, and stricter zero-tolerance policies.