Citibank asks judge to toss racial bias lawsuit

Citibank lawsuit overview: 

• Who: Citibank asked a Florida federal court to toss a class action lawsuit filed against it by plaintiffs Werner Jack Becker and Dana Guida. 
• Why: Becker and Guida claims Citibank racially discriminates against consumers with its ATM Community Network program. Citibank argues the pair of consumers lack standing for the claims and that the program is not discriminatory. 
• Where: The class action lawsuit was filed in Florida federal court.

Citibank has asked a Florida federal court to throw out a proposed class action lawsuit accusing the bank of racially discriminating against consumers with its ATM Community Network program by allegedly charging different ATM fees based on race. 

Plaintiffs Werner Jack Becker and Dana Guida argue Citibank does not charge out-of-network ATM fees to consumers who bank at financial institutions that are “minority owned,” but does to consumers who bank at “other financial institutions.” 

“This policy was no secret. Citi has advertised its race-based pricing scheme, maintained it without interruption, and often boasted about it,” the Citibank class action says. 

Citibank, meanwhile, argues Becker and Guida lack Article III standing to pursue the claims under Section 1981, which prohibits discrimination in the making or enforcement of contracts. 

“Plaintiffs (and the class they seek to represent) are individuals of all races who do not claim they face any discrimination on account of their own race,” Citibank says in its motion to dismiss, filed earlier this month. 

Citibank argues ATM Community Network program not discriminatory

Citibank argues Becker and Guida are simply trying to challenge its ATM Community Network program, which it says is a partnership with other financial institutions in which Citibank agrees to waive out-of-network ATM fees for their customers. 

“Participating institutions may not join the program without signing the contract and undertaking such reciprocal contractual obligations to Citibank,” the bank says. “And the program offers no such fee waiver on a customer-by-customer basis, regardless of race.” 

Becker and Guida claim, however, that Citibank “intentionally discriminated” against themselves and others for banking with financial institutions “owned by people of the wrong race.” 

The pair want to represent a nationwide class and California subclass of consumers who have paid an ATM fee at a Citibank location during the last four or three years, respectively. 

Citibank recently agreed to a settlement to resolve a separate class action lawsuit filed against the bank over claims it contacted consumers with robocalls without their consent. 

Have you paid an ATM fee at a Citibank location within the last four years? Let us know in the comments.

The plaintiffs are represented by Daniel J. Shapiro, Bryan Weir and Brandon M. Haase of Consovoy McCarthy PLLC. 

The Citibank racial bias class action lawsuit is Becker, et al. v. Citibank Inc., et al., Case No. 0:24-cv-60834, in the U.S. District Court for the Southern District of Florida.

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