Fraud Claim Stays In Suit Over Telecom Notes

Law360, New York (August 14, 2009, 1:57 PM EDT) -- A judge has allowed an investor to proceed with a securities fraud claim against Alameda, Calif., over $33 million in municipal notes that were issued to help shore up a struggling telecommunications venture, despite the city’s contention that it should be immune from such claims.

Judge Susan Illston issued the ruling Tuesday in the U.S. District Court for the Northern District of California, declining to dismiss the securities fraud claim asserted by Bernard Osher Trust DTD in its case alleging the city misrepresented the risks involved...
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