E.P.E. et al v. United States of America

1 24-cv-0312-AGS-MSB
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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA
E.P.E., et al.,
Plaintiffs,
v.
UNITED STATES OF AMERICA,
Defendant.
Case No.: 24-cv-0312-AGS-MSB
ORDER ADOPTING REPORT AND
RECOMMENDATION (ECF 57) AND
GRANTING PLAINTIFFS’
MOTIONS FOR APPROVAL OF
(1) TERMS OF TRUST FOR MINOR
PLAINTIFFS (ECF 52) AND
(2) SETTLEMENT OF MINORS’
CLAIMS (ECF 53)
Earlier this year, the magistrate judge issued a report and recommendation urging
this Court to grant plaintiffs’ motions for approval of the (1) terms of trust for the minor
plaintiffs and (2) settlement of the minors’ claims. (See ECF 57 (recommending that the
Court grant ECF 52 & 53).) District judges “must review the magistrate judge’s findings
and recommendations de novo if objection is made, but not otherwise.” United States v.
Reyna-Tapia, 328 F.3d 1114, 1121 (9th Cir. 2003) (cleaned up); see also 18 U.S.C.
§ 636(b)). Objections were due “February 6, 2026” (ECF 57, at 9), and, to date, no party
has objected. This Court reviewed the report and recommendation and finds that it is well
reasoned and without any clear error. So, the Court ADOPTS the magistrate judge’s report
and recommendation. Plaintiffs’ motions for approval of the minor plaintiffs’ terms of trust
and the settlement of the minors’ claims are GRANTED. Specifically, the Court orders as
follows:
1. The settlement funds for minor plaintiffs E.E.B.P., E.M.M., B.Y.C.G., and
A.L.T.J.P. must be placed in a pooled minor’s trust administered by the nonprofit
Legacy Enhancement Trust, the primary purpose of which is to protect each minor
plaintiff from the loss of trust assets due to undue influence, misuse, or exploitation
by others;
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2 24-cv-0312-AGS-MSB
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2. Distribution of trust funds must be overseen by a fiduciary trustee at Legacy
Enhancement Trust;
3. The trust terminates when each minor plaintiff reaches the age of 18;
4. While the trust is in place, the trustee will make distributions for the use and benefit
of the minor plaintiffs for expenses that are not provided by or available from
another source;
5. No distribution of trust funds will discharge the plaintiff mothers’ legal obligation
to support minor plaintiffs in accordance with state law;
6. Permissible distributions include, but are not limited to, expenses related to
education, health care, and technology;
7. Absent extraordinary circumstances, such as those involving imminent health or
safety risks, the trustee will not distribute trust funds for items categorized as
parental support (e.g., rent, mortgage, or utility payments), or for alcohol,
cigarettes, bail, or bank overdrafts;
8. Any funds remaining when the trust terminates must be released in full to each
minor plaintiff;
9. The cost to administer the trust will consist of only an initial enrollment fee of
$1,500.00 and an annual administrative fee of 1.95% of the amount in the trust at
the previous year’s end;
10. No bond shall be required given that the full amount of each minor plaintiff’s
settlement proceeds, less attorneys’ fees, will be placed in the trust and
administered by Legacy Enhancement Trust.
Dated: March 10, 2026
___________________________
Andrew G. Schopler
United States District Judge
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