Stifel Pays $22.5M To Settle School Districts' CDO Suit

Law360, New York (March 19, 2012, 10:29 PM EDT) -- Stifel Financial Corp. agreed Monday to pay $22.5 million to resolve claims brought by five Wisconsin school districts who say the company sold unsuitable investments without warning them of the risks associated with the complex financial products.

Stifel agreed to pay $13 million to the school districts and to provide a standby letter of credit for an additional $9.5 million to be paid when Stifel resolves a related case brought by the U.S. Securities and Exchange Commission in Wisconsin federal court in August.

The settlement also...
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