The State Bar of California has opened an investigation into a prominent Los Angeles law firm that represents thousands of sex abuse victims in a record $4-billion settlement, according to court filings made public Wednesday.<\/p>\n
The investigation into Downtown LA Law Group, which is also the subject<\/a> of a criminal probe into allegations plaintiffs were paid to sue, was detailed in a Jan. 20 court motion filed by attorneys for L.A. County. The county agreed this spring<\/a> to the historic payout to settle thousands of claims of sex abuse inside juvenile halls and foster homes.<\/p>\n The latest court filing<\/a> by the county asks Superior Court Judge Lawrence Riff for permission to give the State Bar confidential case documents related to sex abuse clients represented by Downtown LA Law Group, or DTLA. The county said the State Bar had subpoenaed the documents as part of its ongoing probe into the firm.<\/p>\n The county included a series of Times investigations<\/a> as exhibits, citing reporting that found nine clients represented by the firm who said they were paid by recruiters to sue the county. Four said they were told to make up their claims of abuse. The firm has denied all wrongdoing and said it \u201ccategorically does not engage in, nor has it ever condoned, the exchange of money for client retention.\u201d<\/p>\n DTLA did not directly address an inquiry into whether it planned to fight the request.<\/p>\n \u201cWe are unable to comment on matters pending before the court,\u201d the firm said. \u201cWhile we are cooperating with the Bar, we are also taking whatever steps necessary to protect the legitimate privacy rights of the plaintiffs who are victims of sexual assault.\u201d<\/p>\n The motion asks for a Feb. 26 hearing for arguments on allowing the State Bar to review DTLA\u2019s filings.<\/p>\n \u201cThe LA Times articles raise serious allegations of fraudulent and unlawful practices by attorneys that pose a risk of harm to the public,\u201d the county\u2019s motion said. \u201cThe State Bar cannot fulfill its duty to protect the public if it is not able to obtain all necessary materials to conduct a thorough investigation of these allegations, particularly where the allegations concern potentially systemic fraudulent practices by licensed attorneys.\u201d<\/p>\n The State Bar served a subpoena on the county Nov. 4, requesting thousands of documents related to the roughly 2,700 sex abuse victims represented by DTLA, according to a declaration from Alex Binder, an attorney with the investigative arm<\/a> of the State Bar. The firm represents nearly a quarter of the total victims in the settlement. <\/p>\n The bar asked for three batches of documents \u2014 lawsuits, detailed descriptions of the abuse and certificates from mental health professionals, which is a requirement for older victims under state law<\/a>.<\/p>\n The county turned over the lawsuits but said the other documents were covered by a protective order.<\/p>\n \u201cThe County is placed in an untenable position,\u201d the motion stated. \u201cIt possesses confidential materials that are sought by the State Bar in order to investigate serious allegations of potential attorney misconduct, but cannot produce them.\u201d<\/p>\n State lawmakers and an attorney trade group first called<\/a> on the bar to investigate in October, after The Times published its first investigation on potential fraud in the county\u2019s settlement. <\/p>\n The State Bar declined to comment on whether it would investigate the claims at the time, but noted, generally speaking, that California law prohibits attorneys from making payments, or causing others to make payments, to solicit clients.<\/p>\n According to the motion, the bar is looking into allegations surfaced by The Times that DTLA \u201cmay have engaged in fraudulent and unlawful practices\u201d representing sex abuse clients, \u201cincluding potential misuse of third-party recruiters, misleading filings, and conduct that may constitute moral turpitude.\u201d<\/p>\n \u201cIf true, these allegations could undermine the legitimacy of thousands of claims and distort settlement intended to compensate survivors of childhood sexual abuse,\u201d the motion said.<\/p>\n Payments to sex abuse victims in the settlement are expected to range from $150,000 to $3 million. The payments were initially anticipated to start in January, but have been delayed in part due to new scrutiny of DTLA\u2019s caseload. The county appointed a judge<\/a> to conduct an extra level of vetting of the firm\u2019s cases, which must be completed before any money goes out the door.<\/p>\n In a letter sent to clients last week, DTLA said it was told in a recent court hearing that delays were due, in part, to \u201ca higher-than-expected false claim potential\u201d across the more than 10,000 plaintiffs. The letter reminded clients that false claims could be flagged for \u201cpotential criminal prosecution\u201d and said they could withdraw their lawsuit at any time. <\/p>\n The State Bar investigation comes as the L.A. County district attorney\u2019s office continues its own probe into the firm as part of a larger investigation into fraud within the sex abuse litigation. <\/p>\n