The City of Annapolis and plaintiffs in two federal lawsuits alleging racial discrimination and unsafe conditions in public housing are moving toward settlement negotiations, according to court filings Friday.

One suit is a class action of more than 1,500 people; the other covers the same arguments, but concerning a public housing resident who died. In filings Friday, U.S. District Court Judge Matthew Maddox acknowledged that both parties in the cases wanted to mediate, and ordered them to schedule a settlement conference.

They argue that the Housing Authority of the City of Annapolis, or HACA, discriminated against residents in the past because it did not inspect all units as it did other licensed rentals.

The move toward mediation came just days after Mayor Jared Littmann announced the departure of D. Michael Lyles, the city attorney, with immediate effect after a six-year tenure.

Annapolis had been accused of inserting “hallucinated” quotes and legal arguments, generated by artificial intelligence, in one of the housing cases. Littmann said that dismissing Lyles was not about any one legal case.

Reached last week, Lyles said he did not know “anything” about the potential use of artificial intelligence in filings.

“We’re pleased that under a new mayor and new leadership the city finally is willing to sit down in good faith and try to reach a resolution for these more than 1,500 HACA resident class members,” said Peter Holland, an attorney for the plaintiffs.

During his campaign for mayor, Littmann, who once worked as a lawyer, said he’d prefer the housing suits move toward a mediated settlement. A city spokesperson said Monday they would not offer comment on pending litigation.

This article may be updated.