City of Los Angeles v. Bank of America Corporation

Los Angeles (plaintiff) sued Bank of America (defendant) under the Fair Housing Act, alleging the bank engaged in redlining and reverse redlining by charging minority borrowers unjustifiably high interest rates, disproportionately using teaser rates on minorities, and misleading minority borrowers about refinancing. The city presented statistical evidence linking the bank's practices to a disproportionate rate of foreclosures in minority neighborhoods, and sought damages for reduced property tax revenue and increased city service costs from resulting blight, plus unjust enrichment. The bank moved to dismiss for lack of standing and failure to state a claim.