Sunday, September 24, 2023
Courthouse News Service
Sunday, September 24, 2023 | Back issues
Courthouse News Service Courthouse News Service

Lending Bias Claims|Moved to State Court

LOS ANGELES (CN) - Los Angeles on Friday moved its predatory lending claims against four major banks from federal to state court.

City Attorney Mike Feuer sued Bank of America, JPMorgan Chase, Wells Fargo and Citigroup in December 2013.

The federal lawsuits claimed that predatory lending in poor, minority communities reduced city property tax revenue and left taxpayers on the hook for maintenance of foreclosed homes. Feuer estimated damages to the city at $1 billion.

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's order in February that granted JPMorgan Chase, Wells Fargo and Citigroup's motions to dismiss similar claims by the Los Angeles Unified School District.

Categories / Uncategorized

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.