City of LA settles lawsuit with Deutsche Bank for $10 million

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Los Angeles city officials say they've settled a lawsuit they brought against Deutsche Bank over foreclosures for $10 million.

RELATED: City of LA sues Deutsche Bank over foreclosed properties

The Los Angeles Times reports the city had accused the Germany-based bank of neglecting foreclosed properties in a 2011 suit seeking hundreds of millions of dollars in penalties and restitution.

About 2,000 foreclosed homes in the San Fernando Valley, South Los Angeles and other areas fell into squalor, with many becoming graffiti-scarred dens for squatters and criminals.

The bank admitted no wrongdoing in the settlement and has maintained that prosecutors were going after the wrong party. They said loan servicers are contractually responsible for maintenance of foreclosed homes.

City officials say the bank will, however, ensure foreclosed properties are well-maintained in Los Angeles as part of the settlement. 

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