Former Laguna Honda Hospital residents do not have to file anything to be paid from the $5.75 million settlement with the City and County of San Francisco — but the one choice they do get, cash or a special needs trust, matters most to the people least likely to make it. Anyone who does not return an election by November 10, 2026 is paid in cash, and for a resident on SSI or Medi-Cal a lump sum can count against the program’s asset limits.
Status: Pending final approval — automatic payment | Election, opt-out and objection deadline November 10, 2026 | $750 privacy award; $1,000 base plus a residency share
The Case Against San Francisco
Tommy O. Johnson, et al. v. City and County of San Francisco, et al., Case No. CPF-20-517064, was filed in 2020 in the Superior Court of California, County of San Francisco, on behalf of residents of Laguna Honda Hospital and Rehabilitation Center. The court certified two classes on July 26, 2024. The parties agreed to settle in May 2025, and the court has since authorized notice to class members.
The named plaintiffs allege that the city and the hospital followed a pattern and practice of not complying with the nursing home regulations that protect patients’ rights. They say that harmed residents and contributed to the hospital’s decertification and the termination of its Medicare and Medicaid provider agreements in April 2022. The suit also alleges violations of residents’ rights to privacy and confidentiality in their personal and medical information, under California Health and Safety Code section 1430(b) and the Confidentiality of Medical Information Act.
The city denies wrongdoing, and the court has not decided the case for either side.
Two Classes, and You Can Be in Both
| Patients’ Rights Class | Every patient of Laguna Honda Hospital from April 14, 2022 through August 16, 2023. |
| Confidentiality Class | Every patient from March 23, 2017 to February 17, 2026 (or the patient’s responsible party) to whom the San Francisco Department of Public Health sent written notice that the patient’s private medical and health information was acquired and disseminated, without consent, to people not entitled to receive it. |
Membership is drawn from the city’s records. Anyone who received a notice from the Notice Administrator, CPT Group, is in one or both classes. A resident who lived at the hospital during the 2022–2023 window and also received a privacy violation letter is paid under both.
How the Money Is Split
The settlement fund is $5,750,000. After administration costs, attorneys’ fees and expenses and a service award, the net fund is estimated at approximately $3,907,500. It is divided in two steps:
- Confidentiality Class: a fixed $750 to each member.
- Patients’ Rights Class: a $1,000 base payment to each member, plus a Residency Days Payment. Whatever remains in the fund is shared in proportion to the number of days each member lived at the hospital between April 14, 2022 and August 16, 2023. A longer stay means a larger payment.
The Patients’ Rights amount is therefore not fixed. It depends on each person’s days of residence, on how many people opt out, and on the fees and costs the court approves. Class counsel will ask for up to $1,437,500 in fees, which is 25 percent of the fund, up to $150,000 in expenses, and a $5,000 service award for the class representative.
None of the money goes back to the city. If enough remains unclaimed 90 days after the settlement takes effect, a second distribution is made to class members; otherwise the remainder goes to a court-approved nonprofit.
The Decision: Cash or a Pooled Special Needs Trust
Every notice came with a Distribution Election Postcard and a CPT ID and Passcode. The postcard does not decide whether a class member is paid — everyone who stays in is paid. It decides how.
Option 1, cash. A direct payment. The notice spells out what that means for benefits: a recipient of SSI or Medi-Cal is responsible for reporting a lump sum to the Social Security Administration and to their county Medi-Cal office by the 10th day of the following month. SSI counts assets above $2,000 for an individual, or $3,000 for a couple, and any excess has to be spent down within the calendar month to keep benefits.
Option 2, a pooled special needs trust. The payment goes into an individual account in a pooled trust run by the nonprofit CPT Institute. The trust pays vendors directly for qualified expenses — medical and therapeutic care, support services, phones, clothing, travel and entertainment — without affecting SSI or Medi-Cal eligibility.
The notice lays out the trade-off without recommending either option. CPT Institute will be available to answer questions about both once the court approves the settlement. Doing nothing selects cash. For a class member who depends on SSI or Medi-Cal, or for the family member or conservator handling their affairs, that default is the part of this settlement worth acting on before November 10.
Dates and Deadlines
| November 10, 2026 | End of the 60-day Election Period: postcard or online election due. Also the deadline to opt out (postmarked) and to object. |
| January 29, 2027, 9:30 a.m. | Final approval hearing, Civic Center Courthouse, San Francisco. The date can change without further notice. |
| 90 days after November 10, 2026 | Last day for an unpaid class member, or the legal successor of a class member who has died, to submit a Distribution Request. Payment then depends on funds being available. |
Opting out requires a signed letter, postmarked by November 10, 2026, sent to the Notice Administrator at the address in the notice and on the settlement website. A person who opts out receives nothing from the settlement and keeps the right to sue on their own. Objecting is only for class members who stay in; a written objection must reach the Notice Administrator by the same date, and class members may also object by appearing at the hearing.
How to Make the Election
Mark Option 1 or Option 2 on the postcard that came with the notice and return it, or make the election online at the official settlement website, LHHSettlement.com, using the CPT ID and Passcode printed on the notice. No documentation is required. A class member who has lost the CPT ID and Passcode, or whose address has changed, should contact CPT Group through the settlement website.
No payment is sent until the court grants final approval and any appeals are resolved. If the court does not approve the settlement, the lawsuit continues. Staying in releases the claims raised in this case against the City and County of San Francisco, as described in the settlement agreement posted on the official website. Our sister site tracks the Laguna Honda Hospital settlement on OpenClassActions.com as the court acts.
Frequently Asked Questions
Do Laguna Honda residents have to file a claim to be paid?
No. Payment is automatic for every class member who does not opt out. The Distribution Election Postcard only asks how the class member wants to be paid, in cash or through an account in a pooled special needs trust. Anyone who sends nothing back by November 10, 2026 is paid in cash.
How much will each class member receive?
Confidentiality Class members receive a fixed $750. Patients’ Rights Class members receive a $1,000 base payment plus a Residency Days Payment based on how many days they lived at the hospital between April 14, 2022 and August 16, 2023. A person in both classes receives both. The net fund is estimated at about $3,907,500.
Can one person be paid from both classes?
Yes. A patient who lived at Laguna Honda Hospital between April 14, 2022 and August 16, 2023 and who was also sent a written privacy violation notice for a stay after March 23, 2017 is in both classes and receives both the $750 award and the Patients’ Rights payment.
What should an SSI or Medi-Cal recipient consider?
The notice explains that a cash payment must be reported to the Social Security Administration and the county Medi-Cal office by the 10th day of the following month, and that SSI counts assets above $2,000 for an individual or $3,000 for a couple. The pooled special needs trust pays for qualified expenses directly without affecting eligibility. The notice does not recommend either option; CPT Institute will answer questions once the court approves the settlement.
What if a class member has died?
A legal successor can submit a Distribution Request to the Notice Administrator, CPT Group, up to 90 days after the Election Period ends on November 10, 2026. The administrator verifies class membership before paying, and payment depends on funds being available.
When will payments be made?
Only after the court grants final approval and any appeals are resolved. The final approval hearing is scheduled for January 29, 2027 at 9:30 a.m. in San Francisco Superior Court.
Sources
- Official settlement website and online election portal — LHHSettlement.com, CPT Group, Notice Administrator.
- Court-authorized class action settlement notice, Tommy O. Johnson, et al. v. City and County of San Francisco, et al., Case No. CPF-20-517064, Superior Court of California, County of San Francisco.
- OpenClassActions.com — Laguna Honda Hospital $5.75M Patients’ Rights Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Laguna Honda Hospital $5.75M Patients’ Rights Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.