SF DA Releases Interactive Map Of Businesses Targeted In Alleged Fraudulent ADA Lawsuits
SAN FRANCISCO (CBS SF) -- District Attorney Chesa Boudin released an interactive map Friday showing the hundreds of San Francisco small businesses that have been targeted in a series of allegedly fraudulent Americans with Disabilities Act lawsuits.
Boudin estimated more than 250 businesses in San Francisco, many of them in Chinatown, have been hit with these ADA lawsuits.
"These lawsuits seek damages and coerce cash settlements from vulnerable small business owners, regardless of whether there are actual ADA violations at the businesses or whether compliance is 'readily achievable' under the ADA," the DA office said in a news release.
Boudin has joined with Los Angeles District Attorney George Gascón in filing a joint lawsuit against the law firm -- Potter Handy LLP -- that has filed thousands of the lawsuits.
The DA's office says Potter Handy LLP has collected millions, and possibly more than $10 million in settlements.
According to the complaint, Potter Handy files the fraudulent lawsuits regardless of whether there are actual ADA violations at the businesses or whether compliance is "readily achievable" under the ADA.
The complaint alleges that after filing these fraudulent suits in federal court, Potter Handy pressures its targets to pay it settlements of upwards of $10,000 each — often from small businesses who cannot afford to hire attorneys to litigate in federal court. Potter Handy's business model is designed to shake down small businesses into paying cash settlements rather than ensure ADA accessibility; indeed, the serial filers that the law firm uses almost never return to the businesses after the settlements to monitor compliance.
The District Attorney's lawsuit requests that Potter Handy return all settlements and other fees back to the small business owners. It also seeks a permanent restraint on future misconduct as well as civil penalties against Potter Handy for each violation.
"We will hold accountable those who exploit vulnerable business owners, hurt immigrant communities, and subvert the intent of laws designed to promote accessibility," said Boudin in a prepared statement.