The U.S. Court of Appeals for the Third Circuit has upheld the rejection of a $7 million class settlement with Ballard Spahr client National City Bank for alleged discriminatory lending practices, agreeing with a lower court's ruling that the putative class lacked commonality under Rule 23.

The class action suit stemmed from allegations by black and Hispanic plaintiffs that they were charged more for mortgages than similarly situated white people.

David H. Pittinsky of Ballard Spahr represented the bank and said he was "gratified" with the Third Circuit's affirmation of the lower court's opinion, thereby affirming that a settlement doesn't diminish the requirements of Rule 23.

Related Practices

Consumer Financial Services
Litigation
Mortgage Banking