Baltimore's lawsuit against Wells Fargo tossed

Court dismisses city's discriminatory lending lawsuit against Wells Fargo

Excerpt:

A federal court judge on Wednesday dismissed Baltimore's landmark lawsuit against Wells Fargo, saying it was "not plausible" that the mortgage giant triggered millions of dollars in damages, as the city claimed, by causing increased foreclosures through racially based, discriminatory lending.

"The alleged connection is even more implausible when considered against the background of other factors leading to the deterioration of the inner city," U.S. District Court Judge J. Frederick Motz explained in an six-page memorandum opinion accompanying the dismissal order. He pointed specifically to Baltimore's "extensive unemployment, lack of educational opportunity and choice, irresponsible parenting, disrespect for the law, widespread drug use, and violence."

Motz left the door open for the city to file an amended complaint, however, narrowing the scope of its claims.

"He's asking the city to paint with a less-broad brush if it wishes to do that," said City Solicitor George Nilson. Counselors plan to discuss their options, which include appealing or filing a reduced lawsuit, as early as Thursday, he said.

Baltimore's original lawsuit was touted as the first of its kind when it was filed in January 2008. It claimed Wells Fargo targeted the city's minority communities for bad loans, through an illegal practice known as "reverse redlining," which allegedly led to defaults and a disproportionately high rate of foreclosures and vacancies in Baltimore's black neighborhoods.

Comment: Didn't surprise me!