Wis. City, RBC Capital Hit With Investor Fraud Suit

Law360, New York (July 1, 2010, 4:02 PM EDT) -- Investors who forked over $24 million to the city of Menasha, Wis., to help finance a useless power plant project have accused the city and underwriter RBC Capital Markets Corp. of fraud now that the city is unable to make its repayments.

Freshly appointed lead plaintiffs filed an amended complaint Wednesday in the U.S. District Court for the Northern District of Indiana, alleging Menasha and RBC gulled investors into buying millions of dollars in bond anticipation promissory notes by deceiving them about the power plant’s prospects...
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