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$2.5 million settlement set in Pa. 'kids for cash' scandal

Sides must ask judge to OK deal

SCRANTON — Three firms behind private juvenile detention and treatment facilities at the heart of a “kids for cash” juvenile justice scandal in northeastern Pennsylvania have settled a civil lawsuit for $2.5 million.

The settlement granted preliminary approval in federal court involves claims brought by thousands of juveniles against PA Child Care, Western PA Child Care and Mid-Atlantic Youth Services Corp.

Western PA Child Care built a juvenile detention facility in northern Butler County.

Two former Luzerne County judges are serving lengthy prison terms in connection with the scandal, in which prosecutors said juveniles were locked away in the facilities, often for minor offenses, by judges who they said took illegal payments from the facilities’ builder and co-owner.

The two sides will now ask U.S. District Judge A. Richard Caputo to approve the settlement.

The judges and the facilities’ former co-owner remain defendants in the lawsuit.

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