Redfin Redlining Discrimination Lawsuit Settlement Overview:
- Who: Redfin will pay $4 million to settle a fair housing lawsuit with The National Fair Housing Alliance and others.
- Why: The plaintiffs alleged that the real estate brokerage’s policies perpetuated housing redlining.
- Where: The settlement was filed in a Seattle federal court.
Redfin, one of the nation’s largest real estate brokerages, will pay $4 million and change its policies to settle a redlining discrimination lawsuit filed against it.
On Apr. 29, The National Fair Housing Alliance (NFHA) announced in a court filing that it had reached a settlement with Redfin to resolve its fair housing lawsuit against the real estate giant.
The lawsuit was originally brought against Redfin in October 2020 by NFHA and nine other fair housing organizations alleging redlining in certain ZIP codes.
The lawsuit alleged that Redfin’s minimum home price policy violated the Fair Housing Act (FHA) by discriminating against sellers and buyers of homes in communities of color.
NFHA and the other plaintiffs alleged that policies that limit or deny services for homes priced under certain values can perpetuate racial segregation and contribute to the racial wealth gap.
Redfin Settlement Includes Changes To Minimum Housing Price Policy, According To Agreement
To settle the claims, Redfin will change its minimum housing price policy, alter other practices and pay $4 million, the agreement states.
The changes will increase access to the Seattle-based company’s real estate services across the country and help counter redlining.
The settlement proceeds will be used to conduct monitoring and compliance programs that expand homeownership opportunities in the cities covered by the lawsuit and cover litigation and investigation expenses, according to court filings.
The complaint alleged that Redfin offered no services in non-white ZIP codes at a disproportionately higher rate than in white ZIP codes in Baltimore; Chicago; Detroit; Kansas City, Missouri; Kansas City, Kansas; Long Island; Louisville; Memphis; Milwaukee; Newark; and Philadelphia.
The news comes after Facebook was hit with a class action lawsuit in 2019 from users alleging that the company violates the FHA by discriminating against them in advertisements placed on the platform. The case was dismissed in 2021.
What do you think of the allegations made in this case? Let us know in the comments!
The plaintiffs were represented by Emery Celli Brinckerhoff Abady Ward & Maazel, LLP, and Seattle-based firm MacDonald Hoague & Bayless.
The Redfin Redlining Settlement is National Fair Housing Alliance et al., v. Redfin Corporation, Case No. 2:20-cv-01586-JLR-TLF, in the U.S. District Court Western District of Washington at Seattle.
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