Atty. Gen. Rob Bonta and the Redondo Beach-based company reached a $3.5 million settlement over illegal eviction allegations, which the company denies
Under the proposed settlement, Wedgewood would pay $2.75 million to wrongfully evicted tenants, with the remaining $750,000 going toward civil penalties and programs that fight homelessness or broadly support tenants.
In a news release announcing Wednesday’s settlement, Bonta’s office said that although Wedgewood may be entitled to sometimes evict tenants, the company’s business model — purchasing, renovating and reselling properties — required it to remove tenants faster than the law allowed. The attorney general’s office also alleged that Wedgewood failed to comply with some laws that require a “just cause” for eviction even after a lease expires.
According to the complaint, to remove tenants when the law gave them the right to stay, Wedgewood typically filed an eviction lawsuit against the absentee homeowner who lost the property to foreclosure, not the tenants the homeowner rented to.
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