Los Angeles County faces immense financial pressure. Billions in payouts stem from sex abuse claims. A 2019 law is at the center of this crisis. It’s known as Assembly Bill 218. This law extended the statute of limitations. It allows claims for past abuse. Thousands of new claims flood in. L.A. County has already paid nearly $5 billion. More costs are expected. Supervisor Kathryn Barger calls for change. She wants lawmakers in Sacramento to act. The law opened the floodgates. It allows cases for abuse decades old. Barger sees this as a major fiscal strain. She believes many claims may be fraudulent.
A Flood of Claims and Settlements
AB 218 became law in 2020. It gave survivors more time to sue. This includes abuse in government facilities. Claims can go back to the 1950s. The county’s largest settlement is $4 billion. It covers over 11,000 victims. This amount is historic. It is the largest sex abuse payout in U.S. history. Another settlement reached $828 million. It involved over 400 victims. These large sums strain county budgets. In fact, some reports say the financial impact will last decades.
Fraud Allegations Surface
Concerns about fraud are rising. L.A. County’s District Attorney is investigating. Nathan Hochman leads this probe. His office reviews thousands of claims. They look for fraudulent submissions. Hochman anticipates significant savings. He expects hundreds of millions, perhaps billions. The Los Angeles Times reported allegations. Recruiters allegedly paid people to sue. Some clients claimed they fabricated abuse stories. This news spurred the investigation. The State Bar is also involved.
Key Players in the Spotlight
The Downtown L.A. Law Group is central. This firm handles many of these cases. The State Bar is investigating its role. Allegations suggest misconduct occurred. The firm denies wrongdoing. It states it does not pay for clients. Supervisor Kathryn Barger is a key advocate for change. She represents L.A. County. She urges legislators to reform AB 218. Lorena Gonzalez authored the original bill. She is now with the California Labor Federation.
Legislative Scrutiny and Calls for Reform
Lawmakers in Sacramento are reviewing AB 218. Critics argue it drives governments toward bankruptcy. Supporters say it allows survivors justice. Supervisor Barger wants the law fixed. She believes L.A. County is just the “tip of the iceberg.” Assembly Speaker Robert Rivas has asked for legislative consideration of changes. The financial burden is undeniable. Some unions noted budget cuts impacted raises. These cuts were linked to settlement costs.
The Investigation Deepens
District Attorney Hochman’s office is aggressive. They investigate claimants, lawyers, and recruiters. A fraud hotline exists for reporting. Claimants who come forward may see leniency. However, this offer excludes lawyers. The investigation aims to protect taxpayer dollars. It also seeks to honor true survivors. The county agreed to pause some settlement payouts. This pause allows time for investigation. A court filing mentioned suspending payments. This avoids irreparable loss of public funds.
Future Outlook
The situation remains dynamic. Legislative changes to AB 218 are possible. The goal is balancing survivor justice. It also aims to prevent fraud and financial ruin. The investigations are ongoing. The outcomes will shape future payouts. This news highlights a critical issue. It involves legal reform and public finance. The Los Angeles news spotlight remains.
