CHICAGO - Five southeastern Wisconsin school districts are weighing litigation against financial firms they believe misrepresented the safety of a complex investment transaction that involved collateralized debt obligations and a credit default swap to help fund a portion of their other post-employment benefit liabilities.

The districts' boards - who believe their $200 million investment has lost as much as $120 million of its value - are expected to vote at upcoming meetings on whether to file a lawsuit in connection with the transaction from two years ago, according to a joint statement from the group of districts that joined together to commission a legal review of the deal and determine whether the five were defrauded.

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