Lawyers Claim New Hampshire AG Coerced YDC Victims, Blocked Settlements

New Allegations Against New Hampshire Attorney General

New allegations have emerged against New Hampshire Attorney General John Formella, who is accused of “bullying” and “coercing” victims of the Youth Development Center (YDC) settlement fund. According to new court documents filed on Thursday, Formella allegedly rejected 20% of decisions for claimants represented by Nixon & Peabody and Rilee & Associates, which had been previously approved by former fund administrator John Broderick.

The documents, submitted on behalf of 1,500 victims, state that the claimants were told their decisions were “final” after Broderick recognized their credible testimony and the need for compensation from the state. However, Formella reportedly rejected these decisions without explanation.

  • The affected victims are now forced to restart the process, which is described as “grueling and retraumatizing.”
  • Another 20% of claimants with pending awards were allegedly coerced into resolving unrelated claims as a condition for the attorney general’s acceptance of Broderick’s awards.

The victims’ legal team is now requesting a judge to reconsider his decision to deny the plaintiffs’ lawsuit, which aims to stop the state from changing the administrator position of the YDC settlement fund from an independent role to a political appointee.

Financial Implications and Legal Challenges

Many victims had previously been approved by Broderick for awards of up to $250,000 for sexual abuse by state employees, with two individuals receiving more than $750,000 for multiple instances of abuse, according to the filings.

News 9 has reached out to the attorney general’s office, which denied the allegations. A representative stated, “Allegations of bullying or coercion are categorically false. The Department has negotiated in good faith at every step, with survivors and their counsel always free to accept or decline proposed terms.”

  • The YDC Settlement Fund records, including claims administration and award decisions, are exempt from public disclosure under specific state laws.
  • The confidentiality is meant to protect survivors’ privacy while allowing the department to administer the fund effectively.
  • The department emphasized its commitment to a confidential, trauma-informed process that safeguards survivors’ dignity while managing public resources responsibly.

Legislative Changes and Funding Concerns

The YDC settlement fund was established by Formella in 2022 to compensate victims of abuse spanning five decades. Earlier this spring, Governor Kelly Ayotte signed legislation making the administrator a governor-appointed political appointee, giving the state more control over the fund.

  • The legislature had agreed to allocate $75 million annually to the fund, but no money was included in Ayotte’s budget this year.
  • Ayotte defended the decision, stating that the law allows the legislature to make such decisions.
  • She mentioned that the state is looking to sell the YDC property, which could provide financing for the fund.

  • The Department of Administrative Services is exploring how to sell the YDC property, with the proceeds intended to go into the settlement fund.

  • Ayotte deferred questions about the attorney general’s vetoes of settlement fund agreements to Formella.

Impact on Victims and Legal Proceedings

Lawyers for the victims argue that the changes have essentially defunct the fund. They claim that many of their clients will never receive justice, with 50 of their clients having passed away since the consolidated litigation began in 2021. The document states that additional delays caused by the dismantling of the fund will lead to more deaths and further savings to the state.

  • Based on the average settlement amounts in the fund, the deaths of 50 victims yielded a savings to the state of approximately $20 million.
  • Additional delays will mean more deaths and further savings to the state of funds that should be directed to victims.

The filings also come alongside a motion asking whether a judge who presided over the YDC settlement fund case is being considered for the New Hampshire Supreme Court, raising a potential conflict of interest.

Ongoing Legal and Political Developments

The ongoing legal battles highlight the complex interplay between the state’s administration, the victims, and the legislative process. As the situation unfolds, the focus remains on ensuring that victims receive the justice and compensation they deserve.

  • The legal team continues to push for transparency and accountability.
  • The victims’ advocates emphasize the need for a fair and efficient process to address the grievances of those affected by the YDC’s past actions.
  • The outcome of these legal challenges could set a precedent for future cases involving similar issues.

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