TAOS, N.M. — The New Mexico Children, Youth and Families Department has agreed to pay $1.4 million to settle a lawsuit filed on behalf of two children who were abused by their adoptive parents in Taos County.
The lawsuit alleged CYFD failed to protect the children despite receiving reports of abuse before and after the adoption was finalized.
The case centered on Cory and Stephanie Valdez, a Taos couple who were later convicted and sentenced to prison for abusing the two adopted children.
According to the lawsuit, CYFD received reports from the children alleging physical abuse and inappropriate discipline before the adoption process was completed. The suit also claimed the agency later closed an investigation despite additional allegations involving the children’s treatment.
The abuse came to light in December 2020 when one of the children fled the home and sought help from a neighbor. Investigators later found evidence of severe abuse, leading to criminal charges against the couple.
Under the settlement agreement, the two victims will each receive $700,000.
In a statement, CYFD said it evaluates each lawsuit on its individual circumstances and determined that settling the case before trial was the appropriate course of action. The department emphasized that the settlement does not constitute an admission of fault.








