Ala. Residents, Pols File $1.6B Claim In County's Bankruptcy

Law360, New York (June 5, 2012, 1:18 PM EDT) -- Elected officials and residents from bankrupt Jefferson County, Ala., on Monday filed a $1.6 billion claim in the county's bankruptcy, alleging county employees and financial institutions conspired to profit from debt refinancing involving complex securities, but lost money and stuck ratepayers with the tab.

The members of the group, who said they represent 130,000 Jefferson County sewer system ratepayers, alleged their claims are based on published financial data and other evidence.

County employees, private employees and others colluded to convert $2.6 billion in fixed interest rate...
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