Respite for Citigroup: City of Los Angeles Lawsuit Dismissed

The city of Los Angeles has reportedly dropped the discriminatory lending charge against Citigroup Inc..Interestingly, Citigroup’s earlier plea to dismiss the same lawsuit had been rescinded by the U.S District Judge – Otis Wright II – in Jun 2014.

While Wednesday’s court filing did not clarify the reason behind the dismissal of lawsuit, earlier filings state that lawyers of Citigroup had raised questions over the limited relevance of the U.S. Fair Housing Act (the lawsuit claimed violation of FHA) in this matter, since the act was aimed at providing fair housing only.

Notably, Los Angeles had filed a lawsuit against Citigroup in 2013, accusing the bank of engaging in biased lending practices since 2004. The city claimed that the bank provided restricted as well as overcharged (higher fees and interest rates) loan offerings to targeted minority borrowers. – See more at:

http://www.zacks.com/stock/news/193137/respite-for-citigroup-los-angeles-lawsuit-dismissed#sthash.P0GiIqGR.dpuf

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s