L.A. County Appoints Retired Judge to Oversee $4 Billion Sex Abuse Settlement amid Fraud Concerns
Los Angeles County is taking unprecedented steps to ensure that compensation from its landmark $4 billion sex abuse settlement reaches genuine victims, not individuals who falsely claimed abuse. The county has enlisted the expertise of retired Judge Daniel Buckley to meticulously vet claims originating from the Downtown LA Law Group (DTLA) following reports of potential fraud.
Growing Scrutiny of Claims Process
The move comes after a recent investigation by The Los angeles Times revealed that at least nine individuals represented by DTLA admitted to being incentivized to file lawsuits against the county. Disturbingly,four of those plaintiffs alleged they were explicitly instructed to fabricate their claims. while DTLA has vehemently denied compensating clients for filing suit, the firm has agreed to cover the costs associated with Judge Buckley’s independent review of the roughly 2,700 cases it represents.
In a statement released Monday, Andrew Morrow, lead attorney for DTLA’s sex abuse cases, acknowledged the implementation of “additional safeguards” and “vetting protocols” in response to the allegations. Though, he did not specifically mention Judge Buckley’s appointment. “While we categorically deny this ever occurred, we take these matters seriously and welcome the implementation of additional review procedures to ensure false claims do not move forward in the process,” Morrow, chairman of the firm’s mass torts department, wrote.
County Demands State Bar Investigation
The allegations have prompted a formal request for investigation from Dawyn Harrison, the county’s top attorney. On October 17th, Harrison sent a letter to the state Bar of California, expressing concern that settlement funds coudl be diverted to the legal depiction rather than reaching actual victims. “The actions described in the article,if true,are despicable and run afoul of ethical duties of attorneys and criminal law in California,” Harrison stated in her letter to Erika Doherty,the bar’s interim executive director. She formally requested a thorough investigation into potential fraudulent and illegal activities.
DTLA declined to provide comment last week, but previously asserted its commitment to presenting “only meritorious claims” and maintaining systems to identify false or exaggerated allegations.
Independent Review and Potential Outcomes
The bulk of the claims will undergo review by retired Superior Court Judge Louis Meisinger, who will determine individual awards ranging from $100,000 to $3 million.Award amounts will be based on the severity of the abuse, its impact on the victim’s life, and the strength of the supporting evidence, according to the established allocation protocol. Victims can choose to receive payouts over five years or opt for a one-time payment of $150,000.
The county has outlined two potential paths for handling potentially fraudulent claims. They can offer a $50,000 settlement or pursue removal of the claim from the settlement entirely.While removing fraudulent claims saves the county money, it risks the plaintiff pursuing litigation independently and potentially securing a larger payout through a jury trial.
Precedent in Similar Cases
The appointment of a neutral arbiter to investigate claims from a specific firm is not unprecedented, though it is indeed unusual in a settlement of this magnitude. Retired U.S. Bankruptcy Judge Barbara Houser, overseeing the $2.4 billion trust for victims of the Boy Scouts of America sex abuse cases, recently requested an “independent third party” to review claims submitted by Slater Slater Schulman after identifying “irregularities” and “procedural and factual problems.”
Concerns Extend to Slater Slater Schulman
Slater Slater Schulman,representing approximately 14,000 claimants,also faced scrutiny. Two individuals represented by the firm, Beagle and Ramirez, were asked to sign a declaration affirming they were not paid to file their claims. Both refused to sign, stating the declaration was untrue.Beagle stated the firm followed up with two phone calls that morning, but they reiterated their request for dismissal.
The ongoing scrutiny and independent review underscore the complexities of administering a settlement of this scale and the critical importance of ensuring that justice is served for genuine victims of abuse.
