Advocate Seeks to Revive Suit Over Migrant Child Abuse (5)

March 12, 2025, 4:52 PM UTCUpdated: March 13, 2025, 12:59 AM UTC

A youth advocacy group is launching an eleventh-hour bid to revive a Biden-era case over the sexual abuse of unaccompanied migrant children, hours after the Trump Justice Department moved to drop the lawsuit.

The National Center for Youth Law told a Texas federal judge Wednesday it wants to join the litigation against major housing provider Southwest Key Programs and represent the interests of migrant children abused by its employees, now that the US government is no longer doing so.

“Until today, the United States has faithfully sought to uphold the rule of law by prosecuting claims and seeking relief that would help both protect unaccompanied children and compensate them for their damages,” David Hinojosa, litigation director for NCYL, wrote in a letter to Judge Alan Albright of the US District Court for the Western District of Texas. “Countless children now risk being denied any recourse for the terrible harms suffered while in the care of Southwest Key.”

The organization asked the judge for a minimum 30-day pause so the group can identify potential intervenors and prepare those requests to join the litigation.

The civil rights organization’s letter was sent hours after the Justice Department filed a stipulation to dismiss the 2024 suit, which had accused Southwest Key of failing to act on pervasive sexual abuse by its employees and requested money damages for victims.

Bloomberg Law reported on the plan March 9 to pull the case, which followed a direct plea by noted Supreme Court litigator Lisa Blatt to leaders in the Trump Justice Department. Blatt, a Williams & Connolly partner representing Southwest Key, argued the case threatened to hobble the new administration’s immigration policies.

A ruling allowing migrant children to be awarded damages “would actually incentivize illegal crossings at the southern border,” Blatt wrote in a Feb. 11 email to the Justice Department viewed by Bloomberg Law.

Hinojosa argued the dismissal of the case was a political decision.

“Putting aside the absurd notion that this litigation would encourage children to cross the border and risk rape and sexual assault in shelter homes, it appears that it is not the rule of law and the merits of the claims, but rather the politicization of the Department of Justice, that is driving the stipulated motion,” Hinojosa wrote.

Hinojosa also argued there is a legal right to intervention in these types of suits, despite the government’s claim in its Wednesday filing that the dismissal is “effective when filed and does not require an order of the Court.”

Johnathan Smith, NCYL’s chief of staff and general counsel, also wrote Sen. Chuck Grassley (R-Iowa), who’s previously advocated for the safety of migrant children, to ask the Justice Department “to provide a clear explanation of its reasons for abandoning this lawsuit and who ultimately made that decision.”

The acts alleged in the lawsuit by Southwest Key employees “shock the conscience and warrant nothing less than full accountability,” wrote Smith, previously of the Justice Department’s civil rights division, wrote.

Clare Slattery, a spokesperson for Grassley, said Wednesday the senator “has contacted the DOJ seeking clarity regarding its dismissal of the Southwest Key lawsuit, and looks forward to a follow-up conversation soon.”

Shelters Closed

The Department of Health and Human Services announced Wednesday that it would stop placing migrant children in Southwest Key shelters and would move all children currently there to other shelters. The agency said it is also reviewing the company’s federal grants.

“In view of HHS’ action, the Department of Justice has dismissed its lawsuit against Southwest Key,” HHS said in a statement.

The dismissal marks the latest instance of new DOJ leadership trying to undo legal actions pursued by the Biden administration. It also comes as President Donald Trump and Attorney General Pam Bondi have said they intend to ramp up immigration enforcement and redirect more resources to prosecuting cartels and transnational criminal organizations.

“Under the border policies of the previous administration, bad actors were incentivized to exploit children and break our laws: this ends now,” Bondi said in a separate statement.

A spokesperson for Southwest Key said the company furloughed approximately 5,000 employees as a result of the “unforeseen” funding freeze order to stop placing children in its shelters.

“We are beyond grateful for the efforts and dedication of our employees who made it their mission to care for the unaccompanied children we served, and we found it difficult to take these necessary steps,” the spokesperson said.

Biden-era Lawsuit

The Justice Department in July 2024 brought a civil rights complaint against Southwest Key, which operates shelters to hold unaccompanied migrant children taken into federal custody after they cross the border without parents or legal guardians.

The lawsuit claimed that multiple employees subjected children between the ages of five and 17 to repeated sexual abuse and harassment, and that in some cases they threatened children to remain silent.

“Despite knowledge of these severe and pervasive harms, Southwest Key failed to take appropriate action to protect the children in its care,” the lawsuit said, citing more than 100 reports from children and employees.

Southwest Key, which houses unaccompanied migrant children until they can be placed with family members or other sponsors, denied the claims.

Southwest Key received over $3 billion in funding through the HHS refugee office from 2015 to 2023 and operated 29 shelters that could accommodate 6,350 children in Texas, Arizona, and California, according to the DOJ lawsuit.

It was not immediately clear where the children housed in Southwest Key shelters are being moved to.

The case is United States v. Sw. Key Programs Inc., W.D. Tex., 1:24-cv-00798-ADA, 3/12/25.

To contact the reporter on this story: Justin Wise in Washington at jwise@bloombergindustry.com; Suzanne Monyak in Washington at smonyak@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloombergindustry.com; Seth Stern at sstern@bloomberglaw.com

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