The spokesperson added Southwest Key was furloughing about 5,000 programme employees, citing a federal funding freeze.
The plans to dismiss the case were first reported by Bloomberg. The news outlet reported an attorney for Southwest Key had reached out to the justice department and asked it to dismiss the matter, saying the case could hinder the crackdown on illegal immigration by President Donald Trump's administration.
The abrupt reversal by the justice department comes at a time when attorney-general Pam Bondi has made combating illegal immigration a priority over other initiatives that were pursued during former president Joe Biden's administration.
In response to the justice department's decision, the National Centre for Youth Law sent a letter to US district court judge Alan D Albright seeking to intervene in the case, in a bid to keep the case alive.
The centre asked Albright to delay a ruling on the justice department's motion to dismiss by 30 days and allow it to file an intervening motion “on behalf of interveners whose interests are no longer protected by the US”, according to the letter written by the centre's co-director of litigation David Hinojosa.
“Until today, the US has faithfully sought to uphold the rule of law by prosecuting claims and seeking relief that would help protect unaccompanied children and compensate them for their damages,” Hinojosa wrote.
“Countless children now risk being denied any recourse for the terrible harms suffered while in the care of Southwest Key.”
The court record shows Albright accepted the joint motion to dismiss and ordered the case closed.
The National Centre for Youth Law also wrote a letter to Republican Senator Chuck Grassley urging him to call on the justice department to explain its reasons for dropping the lawsuit and identify who made the decision.
“Given your history of advocating for the safety of unaccompanied children, we respectfully request your office’s continued leadership to protect these children and hold accountable all entities — public or private — that jeopardise their welfare,” wrote Johnathan Smith, the centre's chief of staff and general counsel.
Grassley's spokesperson Clare Slattery said the senator has contacted the justice department seeking clarity about the lawsuit's dismissal and “looks forward to a follow-up conversation soon”.
**Reuters**