Splitting From the Pack Led to an $828 Million Settlement--and a $2 Million Average Recovery

Sexual abuse litigation

Mike Arias, Sahar Malek, Arias Sanguinetti Wang & Team LLP; Spencer Lucas, Erika Vasquez, Panish Shea Ravipudi LLP; Courtney Thom, John Manly, Manly, Stewart & Finaldi; Greg Yates, Gregory A. Yates, PC.

As the sprawling sexual abuse cases developed for victims who were held in Los Angeles County juvenile halls and probation camps, a key moment came when veteran plaintiff litigator Mike Arias and colleagues decided to separate their group of clients from the initial "Group A" that was entering settlement discussions.

Their separate group of cases achieved approval of an $828 million settlement resolving more than 400 claims. Jane BP1-B Doe et al. v. Doe 1 et al., 22STCV25961 (L.A. Super. Ct., filed: Aug. 11, 2022).

Arias said he and lawyers at Panish Shea Ravipudi LLP and Manly, Stewart & Finaldi were alarmed at what looked like a rush to settle. "We saw car crash attorneys advertising and cases being filed by the thousands," Arias said. "We were concerned about fraud. We do cases with lots of plaintiffs, but we're not a mass tort firm. Trial is always our first goal. Settlement is on the second track."

They chose to pursue a separate trial path, one they believed would result in a more just resolution for their clients and provide the appropriate compensation for the horrific experiences they suffered. This approach meant moving forward outside the structure of the larger settlement while remaining independent of the broader group process.

"They were talking settlement while we were litigating and getting ready for trial," Arias said.

Their decision ultimately led to a very different and more appropriate result. The $828 million settlement resolved claims on behalf of approximately 414 survivors and resulted in one of the highest average-per-plaintiff recoveries -- $2 million each -- ever achieved in a sexual abuse case against a government entity.

"The lesson for lawyers is to stay in your own lane," said Courtney M. Thom of Manly, Stewart & Finaldi, a former Orange County sex crimes prosecutor. "Sex abuse law is highly nuanced. The other group achieved a settlement, but whether it holds up remains to be seen as it undergoes a fraud review."

While clients in the Arias group will obtain their average $2 million payout over two-and-a-half years, the others will get an average of $300,000 over five years.

Working closely with survivors, Arias, Thom and the team helped develop and prosecute a coordinated civil action that revealed systemic failures in supervision, reporting and discipline across multiple juvenile facilities. Through discovery, they helped demonstrate that the abuse was not the result of isolated misconduct, but reflected longstanding failures within the system that placed children at risk.

In addition to the financial recovery, the case has had a significant impact on both law practice and public policy. It demonstrated how survivor-centered legislation like AB 218 can be effectively used to hold institutions accountable for systemic issues of sexual abuse.