A Judge Worried a Proposed Settlement Doesn’t Do Enough to Help Victims. The DOJ Is Still Moving Forward.
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The Bottom Line
A judge is concerned a proposed settlement for victims is inadequate, but the DOJ is proceeding.
AI Summary
The Justice Department announced it will proceed with a proposed $68 million settlement with Texas land developer Colony Ridge, despite U.S. District Judge Alfred H. Bennett's concerns that it lacks compensation for victims. Judge Bennett questioned the allocation of $20 million for police and immigration enforcement, a provision not related to the original lawsuit's allegations of predatory lending and high-interest loans. The settlement resolves a three-year legal dispute where the Justice Department accused Colony Ridge of deceiving tens of thousands of Hispanic consumers. Justice Department senior prosecutor Varda Hussain stated the federal government stands by the provision, citing resident concerns about crime after the lawsuit was filed. The Justice Department will pursue the settlement without judicial approval, meaning the court will not supervise Colony Ridge's adherence to the terms.
What's Being Done
The Department of Justice (DOJ) is still moving forward with the proposed settlement despite judicial concerns.
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