BRADENTON, Fla. — The ­Louisiana Citizens Property Insurance Corp. is seeking more than $10 million in damages in a federal suit against JPMorgan and Bear, Stearns & Co. over failed auction-rate securities that the state-run, nonprofit insurer was forced to refinance.

The eight-count suit, filed in U. S. District Court in the Eastern District of Louisiana Dec. 22, claims JPMorgan and Bear Stearns manipulated the ARS market until it collapsed. When the underwriters failed to support the market, Citizens sustained “tens of millions of dollars of damages in increased interest charges and other funding costs,” the suit said.

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