Ciena Settles Fraud Suit Over SBA Loans For $26M

Law360, New York (December 17, 2010, 5:31 PM EST) -- The federal government has asked a judge to dismiss a False Claims Act suit accusing bankrupt commercial real estate company Ciena Capital LLC and its parent Allied Capital Corp. of fraudulently issuing to borrowers loans that were backed by the U.S. Small Business Administration, following a settlement of more than $26 million.

The dismissal is predicated on a guarantee that the government won't have to return any of the money to Ciena's creditors, which are now battling over the company's Chapter 11 reorganization plan, according to a Wednesday...
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