This landmark lawsuit was filed in the federal court in the Southern District of New York on behalf of Michigan Legal Services and African American homeowners in the Detroit, Michigan area. The suit claims that the Defendent violated federal and state housing and anti-discrimination laws by adopting mortgage securitization policies that caused predatory lending and adversely impacted African Americans. It is the first case where a prospective class of affected homeowners victimized by subprime lending abuses has directly sued an investment bank by linking civil rights and consumer laws. It is also the first lawsuit to connect racial discrimination to the securitization of mortgage-backed securities.
Rubbie McCoy, Detroit homeowner and plaintiff
(Photo courtesy of ACLU)
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Related Webinar: Holding Wall Street Accountable for the Subprime Mortgage Crisis in Urban Communities. Attorneys from NCLC and ACLU as well as a senior staff person from the National Fair Housing Alliance discuss this lawsuit and racially discriminatory lending practices.
10/16/12 The Atlantic (Cities blog) Did big banks violate civil rights law in the housing crisis? by Emily Badger, including interview with Stuart Rossman.
10/15/12 WBAI 99.5FM (New York, NY) 7 min, 25 sec. A civil rights lawsuit is filed against Morgan Stanley for discriminatory mortgage lending. Reporter Andrea Sears interviews NCLC Director of Litigation Stuart Rossman about Adkins et al. v Morgan Stanley.
Attorneys: Credit Discrimination || Consumer Class Actions
Consumers: Surviving Debt