Allstate Can Sue Over $35M Arena Bonds: Judge

Law360, New York (October 21, 2011, 7:16 PM EDT) -- An Arizona federal judge on Friday refused to toss claims by Allstate Life Insurance Co. and a putative investor class accusing Robert W. Baird & Co. and others of making key omissions in peddling $35 million of bonds for an events center.

The investors say those offering the bonds inflated event and attendance projections and sales tax revenue for the 5,000-seat arena in Prescott Valley, Ariz. The bonds were downgraded to junk status in 2008 after the arena failed to generate any net income and the...
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