Los Angeles County agrees to historic $4 billion settlement for abuse victims

In March 2023, Los Angeles County, located in the United States, announced a tentative agreement to settle nearly 7,000 sexual abuse claims stemming from incidents that occurred in juvenile facilities and children's homes since 1959. The proposed $4 billion settlement is viewed as a historic resolution for victims who have suffered long-term trauma as a result of sexual abuse while in the care of the county. Notably, the claims are tied to actions that predominantly occurred in the 1980s, 1990s, and 2000s, following a California law enacted in 2020 that extended the statute of limitations for childhood sexual abuse cases, allowing many victims an opportunity to seek justice. The agreement includes provisions for establishing systematic reforms within the county to prevent future occurrences of abuse, reflecting a commitment to accountability and victim recovery. The financial ramifications of this settlement are expected to be significant, as county officials are planning to allocate funds from reserve budgets, issue judgment obligation bonds, and implement cuts to various department budgets, leading to hundreds of millions in annual payments through 2030 and continuing obligations up until fiscal year 2051. This settlement, if approved by the county's Board of Supervisors, would surpass the previous largest settlements in U.S history, including the Boy Scouts of America's $2.6 billion settlement in 2022 for abuse claims. The ramifications of this financial burden could influence the county's budget significantly, creating a tight fiscal environment against the backdrop of existing financial challenges, including natural disaster responses and addressing homelessness.