Court Rejects Request to Halt Billion Dollar Payout in Abuse Case
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Court Rejects Request to Halt Billion Dollar Payout in Abuse Case

Soren Ashford
Jun 27, 2026 7:14 PM
Updated: Jun 27, 2026 7:15 PM
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LOS ANGELES — A California judge has denied a request by Los Angeles County District Attorney Nathan Hochman to halt payments under the county’s landmark sexual abuse settlement, allowing the distribution of compensation to move forward despite an ongoing criminal investigation into alleged fraudulent claims, according to court proceedings and statements from the parties.

The request sought to pause payouts under a settlement valued at about $4 billion that resolves thousands of claims alleging sexual abuse at county-run juvenile halls, foster homes and children's facilities. Hochman argued that his office was investigating what it described as widespread fraud and asked the court to delay payments while that inquiry continued.

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Los Angeles Superior Court Judge Lawrence P. Riff rejected the request following hearings this month in which attorneys representing abuse survivors and lawyers for the county opposed a broad suspension of payments. Court filings from plaintiffs' attorneys argued that settlement agreements had already been finalized and that further delays would harm claimants who had waited years for compensation.

Hochman's office has said it believes a significant share of claims may be fraudulent. The district attorney previously cited investigative findings and alleged that some claimants were never in county custody. The office has said its investigation remains active.

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Lawyers representing abuse survivors disputed the allegations, saying legitimate claims had undergone extensive review before the settlement process. They argued that delaying payments would unfairly affect victims, many of whom have experienced financial hardship.

"I believe some of my clients will die before they get paid if this is delayed," attorney Raymond Boucher told the court during an earlier hearing, according to reports.

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According to court filings, attorneys opposing the stay argued that the district attorney is not a party to the settlement agreements and has no direct legal interest in the contractual payment obligations established between the county and claimants.

Los Angeles County approved the settlement in 2025 to resolve more than 11,000 claims involving alleged abuse dating back decades. The claims became possible after changes to California law temporarily expanded the period during which survivors of childhood sexual abuse could file lawsuits.

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The district attorney has said the criminal investigation into potential fraud will continue. The court's ruling allows the settlement payment process to proceed, while details regarding any future legal action arising from the investigation remain unclear.

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