The Real Deal Miami

Miami’s lawsuits against Bank of America, Citigroup tossed

City claimed lenders targeted minorities, caused tax base to plunge
July 11, 2014 09:45AM

Gavel-new315-304A federal judge tossed lawsuits filed by the City of Miami against Bank of America and Citigroup over alleged predatory lending practices.

The city claimed the banks essentially caused a foreclosure crisis by targeting minorities and led to its tax base plunging. But Judge William Dimitrouleas ruled Wednesday that Miami did not have grounds to sue Citigroup for economic losses. The judge made a similar determination Tuesday in the Bank of America case.

Miami’s “complaints of decreased tax revenue and increased municipal services are so marginally related to” the 1968 U.S. Fair Housing Act that the city’s claims could not be enforced, Dimitrouleas wrote, as cited by the Miami Herald.

The rulings are bad news for the City of Miami Gardens, which filed a similar federal lawsuit last month. The same law firm that represented Miami is backing Miami Gardens. [Miami Herald]Eric Kalis