LOS ANGELES (CN) - City of Los Angeles on Friday filed predatory lending clams against four major banks in state court.
Los Angeles City Attorney Mike Feuer last year sued Bank of America, JPMorgan Chase, Wells Fargo and Citigroup. http://www.courthousenews.com/2013/12/09/63550.htm His federal lawsuit claimed that predatory lending in poor, minority communities reduced city property tax revenue and left taxpayers on the hook for maintenance of foreclosed homes. Estimated damages to the city totaled $1 billion, the filings claimed.
On Feb. 26, the city dismissed its federal claims against Wells Fargo. The city did not immediately respond to a request for comment on what prompted the move.
A jury trial for L.A.'s case in federal court had been scheduled for Nov. 3 this year.
The move follows U.S. District Judge Otis Wright order earlier this month that granted JPMorgan Chase, Wells Fargo and Citigroup's motions to dismiss similar claims by the Los Angeles Unified School District. http://www.courthousenews.com/2015/02/10/judge-rejects-los-angeles-schools-predatory-lending-allegations-against-banks.htm
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.