LOS ANGELES—The City of Los Angeles has filed a civil lawsuit against Deuthsche Bank claiming it has failed to maintain properties in foreclosure and has also illegally evicted several hundred low-income renters.
In its complaint, filed in Los Angeles Superior Court, the city is asking for up to several hundred-million dollars in restitution for both itself and current and former tenants. Deutsche Bank, however, has issued a statement in response saying it should not be the defendant in the action, as it serves only as the trustee for the securitizations holding the mortgages and does not have authority to force any evictions.
The city said the bank and its subsidiaries have acquired more than 2,200 properties in Los Angeles through foreclosure.
