ALAMEDA, Calif. — An Alameda County Superior Court judge has allowed a legal challenge to proceed against the California Department of Corrections and Rehabilitation (CDCR) over its decades-long practice of withholding “gate money” from people released from prison, according to an article by Salahi.

The ruling, issued April 1, 2026, held that CDCR cannot dismiss or discard the main claims against it, keeping alive a case that alleges the agency has systematically shortchanged tens of thousands of people leaving prison.

The lawsuit, brought by plaintiffs represented by UC Berkeley Law’s Criminal Law & Justice Center and Salahi PC, argues that refunds should be made under California Penal Code section 2713.1, which requires the agency to provide funds to individuals upon release.

At the center of the case is CDCR’s practice of deducting money for transportation and clothing from the $200 that people are supposed to receive when they leave prison.

The UC Berkeley Law Criminal Law & Justice Center is described as a hub for research, education and advocacy, whose work includes impact litigation, empirical research, policy analysis and teaching.

Salahi PC is described as a San Francisco-based law firm dedicated to advancing social and economic justice through class actions and other impact litigation, including antitrust, civil rights and liberties, consumer protection and employment matters.

According to the lawsuit, since 1994 CDCR has reduced the funds allocated for transportation and clothing for nearly 30,000 people it releases each year, and “the agency has shortchanged tens of thousands of people during that period.”

Although CDCR has changed its regulations following the lawsuit, the court found the case is not resolved because the agency could revert to its previous rules, has allegedly violated the law for decades and continues to maintain that its past deduction practices were lawful.

In its April 1 ruling, the court allowed the plaintiffs’ writ of mandate claim to proceed, enabling them to seek recovery of the withheld funds and ensure CDCR complies with the law going forward.

The court also rejected CDCR’s argument that the case is moot, noting the agency could reinstate its prior practices at any time.

Additionally, the ruling denied CDCR’s motion to strike class allegations, meaning the case may proceed on behalf of all individuals affected by the policy.

The court further rejected CDCR’s claim that its 30-year deduction practice was lawful, stating that the plaintiffs had presented “a plausible claim that the deduction regulation exceeded statutory authority.”

Chesa Boudin said the ruling prevents CDCR from avoiding accountability after decades of reducing funds for people leaving prison by changing its rules in response to litigation.

“The court saw through CDCR’s attempts to moot this case and dismiss the claims of over a million people who were shortchanged in ways that undermined justice and public safety,” Boudin said. “We look forward to pursuing justice for our clients and the class.”

Yaman Salahi, founder of Salahi PC, said the decision marks a significant step for those affected.

“The court’s decision to preserve the class allegations means that this case can seek relief not just for our four clients, who bravely stepped forward, but also for the hundreds of thousands of people affected by CDCR’s unlawful conduct stretching back more than three decades,” Salahi said.

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Categories: Breaking News Everyday Injustice Tags: California courts CDCR class action litigation Criminal Justice Reform prison release policy reentry justice