U.S. Bank has agreed to pay $13.5 million to settle a lawsuit by the city of Los Angeles alleging the bank failed to properly maintain hundreds of foreclosed properties, City Attorney Mike Feuer announced today.
The settlement -- which stems from a 2012 lawsuit filed by Feuer's predecessor Carmen Trutanich -- includes $11.9 million that will be split by city and county prosecutors to pursue consumer protection cases.
Feuer said he will recommend the remaining $1.6 million be used for building inspectors to address municipal code violations.
"Banks must be accountable for the condition of the properties they hold," Feuer said. "This significant settlement underscores my commitment that all foreclosed and vacant properties be...