UMVA has learned that Los Angeles County District Attorney Nathan Hochman has moved to freeze payments from the historic $4 billion sexual‑abuse settlement, alleging that up to eighty percent of the claimants may be fraudulent.
The settlement, announced in April 2025, was designed to compensate more than 11,000 survivors of abuse in county‑run juvenile halls and foster homes, marking the largest such agreement in U.S. history.
Following a startling investigation that uncovered nine plaintiffs allegedly paid by recruiters to join the class action, Hochman launched his own probe, declaring the scheme “one of the most greedy and heinous conduct” he has ever seen.
He now argues that the nine identified cases represent only a fraction of a “significant number of fraudsters” embedded in the claims, and he is asking the overseeing judge to pause all disbursements for six months while his office continues the inquiry.
The request targets the bulk of the lawsuit—claims stemming from the county’s juvenile detention facilities—where the majority of the alleged fraud is believed to reside.
Since the investigation’s findings surfaced, the county has tightened scrutiny of claimants, focusing especially on those represented by Downtown LA Law Group, the firm that handled the nine contested plaintiffs.
Downtown LA Law Group vehemently denies any recruitment, insisting it rejected over 70 % of the cases presented to it and that the fraud allegations are baseless.
The firm also highlighted that it alone has endured an exhaustive independent audit of more than 1,000 cases, each client interviewed by a neutral auditor at the firm’s expense, demanding comparable scrutiny for other counsel.
Hochman’s filing emphasizes that prior reviews by other agencies were “insufficient to determine whether the claims are fraudulent,” insisting that his office’s intervention is essential to protect the integrity of the settlement.
Victim advocates push back fiercely, warning that the freeze would further punish survivors who have already endured unimaginable trauma, describing the move as another layer of victimization.
Lawyers for the plaintiffs are set to appear before Superior Court Judge Lawrence Riff on Monday, where they will argue that the district attorney’s actions jeopardize timely compensation for genuine victims.
Downtown LA Law Group has pledged full cooperation with Hochman’s investigation, stating its commitment to verify every claim’s authenticity and ensure that those truly harmed receive the restitution they deserve.
