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LA County Told to Pause $4B in Abuse Payouts as DA Probes Fraud Claims
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News Archives - Claims Journal
Los Angeles County District Attorney Nathan Hochman asked the county to hold off on making initial payments for a landmark $4 billion sexual abuse settlement while his office conducts a criminal investigation of potentially fraudulent claims.
The county struck the agreement with thousands of claimants last April after a 2019 California law, known as AB 218, lifted the statute of limitations on bringing abuse lawsuits against government agencies in the state.
Later in the year, the county struck an additional $828 million settlement with thousands more victims.
Hochman announced in November that he had launched a wide-ranging probe into fraudulent abuse claims, investigating whether some individuals were paid to file bogus suits.
The investigation could have financial implications for the county — and other agencies in the state — because there are still many pending abuse lawsuits.