Cuyahoga County Vs. The Street
WALL STREET IS FEELING more legal heat, this time from Cuyahoga County, Ohio, which wants to win back some of the approximately $115 million in trading losses it suffered last year. In a suit filed Aug. 15, Cuyahoga accused McDonald & Co. Securities and National City Bank of fraud for allegedly leading the county to borrow against future taxes, using the proceeds for speculative investments. It charged those two and PaineWebber, Dean Witter, Kemper Securities, Tucker Anthony, and Smith Barney with negligence and violating fiduciary duties. McDonald says the claims against it are meritless; the others declined to comment.
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