• Santa Monica has paid nearly $230 million to 229 plaintiffs in child sexual abuse cases involving Eric Uller.
• The city's budget reserves are critically low, leading to a lowered bond rating by S&P Global.
• Santa Monica is considering selling a library to replenish funds depleted by lawsuit settlements, raising concerns about potential bankruptcy.

The city of Santa Monica is facing a significant financial crisis as a result of numerous lawsuits related to child sexual abuse committed by Eric Uller, a former volunteer at an after-school program. Allegations emerged in 2018, revealing decades of abuse. The resulting lawsuits have cost the city nearly $230 million so far, with over 150 cases still pending. This financial burden has severely strained the city's budget, impacting its credit rating and forcing consideration of drastic measures like selling public assets.

• What: Santa Monica is facing a financial crisis due to settlements and legal costs arising from child sexual abuse lawsuits related to Eric Uller.
• Who: Key individuals include Eric Uller (the perpetrator), the plaintiffs (victims of abuse), Dan Hall (a city councilman), and S&P Global (credit rating agency). Organizations involved are the Santa Monica Police Department and the Santa Monica City Council.
• When: The abuse occurred primarily in the 1980s and 1990s. The investigation began in 2018. The financial crisis is ongoing as of 2025 (article publication date).
• Where: The events took place in Santa Monica, California, particularly at an after-school program associated with the Santa Monica Police Department.

The Eric Uller case has had a devastating financial impact on Santa Monica. The sheer scale of the settlements has depleted the city's budget reserves and negatively impacted its credit rating. The consideration of selling a library, a vital public asset, highlights the severity of the situation and raises concerns about the city's long-term financial stability. The case also underscores the long-lasting consequences of child sexual abuse and the significant financial burdens faced by institutions responsible for protecting children.

I’m afraid that we’re careening toward bankruptcy.

Santa Monica faces a continued financial crisis stemming from the Eric Uller child sexual abuse cases, despite settling all known claims as of April 2023 for $229.8 million. The city's initial efforts to resolve the lawsuits included a $42.6 million settlement in 2020 with 24 individuals. However, in April 2024, the City Council addressed 38 additional plaintiffs, indicating the potential for further legal action and financial strain. These settlements, while aiming to provide justice and closure to the victims, have placed immense pressure on the city's finances, potentially impacting municipal services and necessitating difficult decisions like the possible sale of assets. The city has also spent over $1.7 million in legal fees related to the Uller cases. Furthermore, the city is attempting to recoup settlement funds by suing its insurers for breach of contract and bad faith. The long-term consequences remain uncertain, and the city's ability to fully recover its financial stability is still in question.