Last January Red Lion Reports reported that the City of Baltimore filed a complaint against Wells Fargo Bank for damages to the city caused by foreclosures arising from WF's alleged predatory mortgage lending practices. Lawyers for WF filed a motion to dismiss the complaint. The motion (no link yet) argues that WF is not to blame for Baltimore's foreclosure woes. Baltimore is.
Skadden, Arps, Slate, Meagher & Flom LLP, on behalf of WF, argued that Baltimore lacks constitutional standing to bring the suit. The chain of events linking WF to Baltimore's pain is too long and too weak to confer subject matter jurisdiction on the court.
WF notes that Baltimore caused its own foreclosure problems based on conditions brewing for years. WF's brief notes: "This is an unprecedented lawsuit in which the City seeks to use a single financial services company as a scapegoat for broad social problems that have plagued Baltimore for decades . . . ."
The City of Cleveland has brought a similar suit against 21 investment banks in Cuyahoga County.