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Investor-Backed Rush Follows L.A. County’s $4 Billion Abuse Settlement, Triggering DA Probe

Opaque financing fuels aggressive recruiting, raising concerns about exploitation and taxpayer costs.

Overview

  • Los Angeles County’s April agreement resolved nearly 7,000 claims, and related filings have since grown to more than 11,000.
  • Law firms have saturated Los Angeles TV and social media with campaigns to recruit new clients tied to past abuse in county-run facilities.
  • Investigative reporting finds some plaintiff firms are financed by out-of-state funders, sometimes routed through Delaware entities, in exchange for a share of potential payouts.
  • The Sheldon Law Group is among the firms reportedly backed by such financing and has identified roughly 2,500 potential clients.
  • District Attorney Nathan Hochman has opened a criminal investigation into alleged fraud, including reports of paid plaintiffs, as county leaders condemn the investor-driven push as predatory.