Lawyers representing the plaintiffs held a news conference in the Westlake District Thursday morning.
The federal lawsuit claims the city unlawfully seized and destroyed the plaintiffs' belongings, including tents, medications, vital records and identifications.
The lawsuit challenges the constitutionality of the municipal code which the city uses to justify the practice.
A spokesman for the Los Angeles City Attorney's Office told the Los Angeles Times the office will review the lawsuit but had no further comment at the time.