Court of Appeals hands Wells Fargo victory over Los Angeles in fair housing lawsuit

Wells Fargo may be facing a lawsuit from the city of Philadelphia over alleged discriminatory lending practices against minority borrowers, but a federal Court of Appeals just handed the bank a victory in a similar lawsuit brought by the city of Los Angeles back in 2013.

Four years ago, the city of Los Angeles sued Wells Fargo, Citigroup and Bank of America for discriminatory lending, saying that the banks violated the Fair Housing Act and were to blame for a wave of foreclosures that blighted the city.

But a district judge threw out the city’s lawsuit against Wells Fargo in 2015, stating that the city is did not prove its case that the bank’s policies led to minority borrowers ending up in higher cost loans.

The Los Angeles city attorney appealed the ruling, but the Court of Appeals for the Ninth Circuit ruled last week in Wells Fargo’s favor and upheld the lower court’s ruling.

In the four-page ruling, three of the court’s judges ruled unanimously that that lower court ruled appropriately because Los Angeles “did not show a discriminatory loan” during the time period in question.

Read on.

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