VOL. 126 | NO. 87 | Wednesday, May 4, 2011
Judge Denies Motion to Dismiss City-County Suit Against Wells Fargo
By Andy Meek
U.S. District Court Judge S. Thomas Anderson has denied a motion by Wells Fargo to dismiss the mortgage discrimination lawsuit filed against the lender in late 2009 by Memphis and Shelby County.
In a 32-page decision issued Wednesday, Anderson said the city and county have “pled sufficient facts to establish standing to pursue claims for violations of the Fair Housing Act and the Tennessee Consumer Protection Act.
“Additionally, plaintiffs have adequately pled their claim that Wells Fargo’s lending practices had a disparate impact on African-Americans in Memphis and Shelby County in violation of the FHA.”
The city-county suit alleges black borrowers were steered toward high-cost loans by Wells.