Insurers' Claims Trimmed In $35M Arena Bond Row

Law360, New York (March 1, 2013, 10:46 PM EST) -- A Canadian entrepreneur scored a partial victory Friday as an Arizona federal judge sliced half the claims from a consolidated suit led by Allstate Life Insurance Co. and Wells Fargo Bank NA over losses from a $35 million bond offering to finance a 5,000-seat arena.

Investors in the Prescott Valley Event Center allege the town of Prescott Valley, Ariz., and underwriters involved with the November 2005 bond issue failed to disclose in offering documents that reports showed the arena wasn't an economically feasible project, and seek...
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