The university legal department will ALWAYS make the administration (including admission officers) choose the university over the student.
That’s why in case of sexual assault you must first immediately go to a hospital, not the university clinic, and get your statement to a police officer, not a university security officer. Only after these steps do you bring the university into it.
Read MISSOULA, by John Krakauer, for instance. (Eye opening, documented, often depressingly riveting account. Would be a thought provoking summer read for all college students and people working in universities. )
All institutions work like this.
That’s why you mustn’t impugn the other university even if they’re in legal trouble. You can explain it’s related to local or national culture, which proved too much of a culture shock, police culture which allows x or z, student culture, a deaf administration.
If there’s a lawsuit, it’s separate from your application - even a HINT that you come with a lawsuit against your previous university and they will NOT take the risk of admitting you.
(Lower ranked universities may overlook this when the student admits guilt but in your case since it’s not your fault it doesn’t apply.)
Also “the university is well known for its poor handling of…” If you’re talking about a foreign university, assume ZERO is known about their issues. Only their ranking would be known, and what type of environment they’re in (ie., non democratic countries or democratic ones, economically developing, etc.). If you want to bring up colleges like, say, Imperial, EPFL, TMU, Waterloo, and have a legal case against one of those (or similar), US Admissions won’t care. They are not a court. They aren’t in the business of vindicating you. They don’t want to hear it.
If “US” in the above answer meant the university is an American university and the university is currently publicly in legal trouble or has been in official, public trouble (think: Baylor) then you can mention that you were one of the victims vindicated in the (2019 ywx case) and the facts described therein should suffice in explaining how the situation would impact anyone’s results.
So, your strategy can mention the issue as an additional comment, framed in terms of local culture or police culture etc and/or, if judged, by referring them to the case and indicating you’re one of the victims. But your main reason for transfering should be the culture shock, unexpected lack of resources, large lecture halls, the difference between your expectations and reality, student culture, etc.
“University A wronged me so I must transfer” is a good motivation but not a good transfer strategy. You seem to move back and forth between the temptation to explain your grades by blaming the way the university mishandled your case and not doing so.
The above advice of finding a free legal clinic for advice is also excellent.
Btw, I’m aware it sucks. You were wronged. You need to transfer because of it. It’s not right. But first, transfer. Find your fit and safety. Then, figure out the rest.