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Santa Monica, long a beacon of economic strength in Southern California, has endured its share of struggles in recent years.

Its once-bustling downtown shopping district has taken a post-pandemic hit, with the Third Street Promenade in need of reinvention and the upscale Santa Monica Place mall about to lose its anchor Nordstrom. Other factors include post-pandemic shifts in the entertainment industry and new tariffs.

But Santa Monica finds itself on the brink of a financial crisis for another, less expected reason as well: Hundreds of millions of dollars in sex abuse settlements.

The city still faces 180 claims of sexual abuse by a former Santa Monica police dispatcher, a s

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