Judge Slams $68M DOJ Deal As He Ends Colony Ridge Suit
· WOWERI
A Texas federal judge has formally closed a lawsuit alleging reverse redlining. The DOJ reached a $68M deal, which the judge says is untethered to the complaint and risks harm to those affected.
Judge Slams $68M DOJ Deal
A Texas federal judge has formally closed a lawsuit alleging reverse redlining in a Houston-area development after the U.S. Department of Justice reached a $68 million deal. The judge says the deal is untethered to the complaint and risks harm to those affected. The DOJ had accused the developer of reverse redlining, alleging that it provided mortgages to residents of certain neighborhoods. The judge ruled that the deal does not meet the requirements of the law and does not address the issues raised in the complaint.
Implications for Those Affected
The judge emphasized that the deal may harm those affected, as it does not provide them with sufficient compensation. He also noted that the deal does not meet the requirements of the law and does not address the issues raised in the complaint.
Conclusion
The judge's decision to close the case may have implications for future reverse redlining cases. Those affected may appeal the judge's decision and seek more fair compensation.
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Source: law360.com