Los Angeles County Friday announced a tentative $828 million settlement with more than 400 plaintiffs who claim they were the victims of childhood sexual abuse at the hands of county workers.
The settlement is on top of an earlier $4 billion settlement reached on behalf of roughly 11,000 claimants. That settlement has already led to financial consequences for the county, including curtailments in spending and many county departments coping with 3% budget cuts during the current fiscal year. Some county services are also undergoing reductions.
The various claims involved in the settlements were the result of AB 218, which temporarily lifted the statute of limitations on allegations of childhood sexual abuse. The claims included in the two settlements involve allegations dating back as far as 1959.
The latest $828 million proposed settlement still needs to be approved by the county Claims Board and the Board of Supervisors.
County officials said that in light of recent allegations that some plaintiffs may have made fraudulent damages claims, every individual abuse claim will be carefully reviewed. Every claim involved in both settlements will be vetted, individual plaintiffs being required to provide a “detailed, multi-page written factual summary, under penalty of perjury, of the alleged misconduct and resulting harms.”
“The system created by AB 218 is inherently vulnerable to fraud, but the county established fraud protections from the beginning of the settlement...
Banking stocks across the globe sold off on Friday, as fears about bad U.S. loans spilled over into equity markets beyond the United States. U.S. stock markets were rattled on Thursday amid mounti...