L.A. Sues Wall Street Banks, Bond Insurers

Law360, New York (July 24, 2008, 12:00 AM EDT) -- Add Los Angeles to the growing list of states and municipalities suing major Wall Street investment banks, including Bank of America Inc. and UBS AG, on claims of bid-rigging and price-fixing in the municipal derivatives industry. The city has also filed suit against several bond insurers, claiming that they charged municipalities fraudulently high premiums.

L.A. City Attorney Rocky Delgadillo filed two separate lawsuits in the Superior Court of California for the County of Los Angeles against financial institutions and bond insurers for “engaging in fraudulent, unlawful...
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