Judge approves $16.5 million for blacks in settlement of Milwaukee redlining lawsuit

Jet, August 14, 1995

A Milwaukee, WI, judge recently approved a settlement of an insurance redlining lawsuit that will bring $16.5 million in new housing to predominantly Black neighborhoods.

Eight Black homeowners sued in 1990, claiming American Family Insurance Co. of Madison discriminated against them, and the suit was given class action status, meaning it was brought on behalf of all Black homeowners in Milwaukee.

Redlining is a practice of discriminating against customers by refusing to mortgage or insure properties in certain neighborhoods, especially those that are predominantly Black.

The company, in agreeing to the settlement, did not confirm or deny it had practiced redlining, or denying homeowners insurance to residents of Black neighborhoods.

The settlement, approved by U.S. District Judge Rudolph Randa, commits the company to increased sales of homeowner's policies in the Black community, hiring of more agents to maintain inner-city offices and training agents in urban marketing.