Muni-Price Fixing Suit Inches Closer to Settlement With Wall Street
- Municipalities seek $6.5 billion in pre-trebled damages
- Illinois settled False Claims Act suit in July for $68 million
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An almost decade long dispute over price-fixing in the municipal bond market is one-step closer to a settlement after three municipalities secured a small win Thursday.
Judge Jesse M. Furman of the US District Court for the Southern District of New York granted the request for class certification from two cities and one transportation commission suing eight banks — including Bank of America Corp. and Goldman Sachs — for conspiring to fix the rates on variable rate demand obligation bonds.