L.A. Confidential - Ending Explained

The ultimate twist reveals that Captain Dudley Smith is the true mastermind behind the heroin trafficking and the Nite Owl massacre. He orchestrated the murders to eliminate his former partners in crime and frame innocent people to maintain public order. Jack Vincennes is murdered by Smith when he gets too close to the truth, using his final words 'Rollo Tomasi' to ensure Exley would eventually identify the killer. The film ends with a brutal shootout at the Victory Motel, where Exley kills Smith. However, to prevent a total loss of public trust in the police, the department covers up Smith's crimes, awarding him a hero's funeral while promoting Exley to Lieutenant. Bud White survives his wounds and leaves the city with Lynn Bracken, opting for a quiet life over a corrupt badge.

Critics have often debated the ending's cynicism. While it appears to be a 'happy ending' with the villain dead and Bud surviving, many interpret it as deeply dark: Exley only 'wins' by participating in a massive cover-up that paints the villain as a hero, thus perpetuating the cycle of institutional lies. Another reading suggests Exley is the real antagonist of the piece—a man who lacks the soul of Bud or the late-blooming conscience of Jack, and who ends the film having successfully used every tragedy to further his own career. Some audience members also point to the final glances between Lynn and Exley as evidence of a transactional, cold attraction that supersedes Lynn's 'love' for Bud.