Law and legal issues

Atlantic City Mayor Donald Guardian said he is optimistic that the city's turnaround efforts will be accepted and a state takeover averted.

In a sign of the challenges the federal board overseeing Puerto Rico’s debt workout may face, the island’s power authority’s deal to restructure more than $8.3 billion remains mired in litigation.

The tax supporting a $38 million bond deal for a rural Alabama hospital faces a legal challenge, though supporters say a state constitutional amendment on the Nov. 8 ballot should cure the problem for Chilton County and other localities, including Jefferson County.

Atlantic City officials unveiled a five year financial rescue plan Monday night that they hope will be enough to prevent a state takeover.

The Puerto Rico Oversight Board urged the judge in four key Puerto Rico debt cases to continue a freeze on the litigation.

Princeton University’s settlement to end litigation claiming it should pay property taxes on certain Princeton, N.J. properties is a credit positive for both the school and the local government, according to Moody’s Investors Service.

Underwriters’ counsel should be more proactive in keeping up to date with regulators’ concerns and then communicating those to their underwriter clients, a dealer official said here.

Nassau County Executive Ed Mangano and Oyster Bay Town Supervisor John Venditto were arrested on federal corruption and bribery charges.

Wayne County, Michigan was released from state oversight but expensive challenges remain, said county executive Warren Evans .

The Los Angeles school board refused to renew three charters for a charter school system with outstanding bonds that has faced financial problems and questions about connections to Turkey’s coup.

The Puerto Rico Oversight Board is considering filing briefs in four Puerto Rico bond suits.

Miami agreed to pay $1 million to settle securities fraud charges after the city was found guilty by a local jury of playing a shell game to hide its deteriorating financial condition from bondholders.

Puerto Rico bondholders have reason to be optimistic about overturning the island's debt payment moratorium in court, based on rulings by the judge handling most of the litigation.

The Kentucky Court of Appeals ruled that the city of Fort Wright can proceed with its lawsuit alleging that the Kentucky Retirement Systems made millions in improper investments in alternative asset classes.

A judge has agreed to put Peter Cannava back into a Securities and Exchange Commission lawsuit that alleges the Wells Fargo banker aided and abetted the defrauding of investors in connection with a private placement by 38 Studios.

Holders of $113 million of defaulted bonds issued for a Branson, Missouri Airport will get an update on airport operations and an amended forbearance agreement on Oct. 13.

Three former Puerto Rican officials and another defendant were found guilty of various charges of government corruption Friday.

Wayne County, Michigan says it’s made sufficient gains in balancing its books and is ready to exit a state consent agreement.

Though Atlantic City has violated a term in a $73 million state bridge loan, New Jersey’s Local Finance Board won’t require the struggling city to immediately repay the debt.

A group of Detroit retirees may ask the full appellate court to consider its failed appeal aimed at restoring pension cuts imposed as part of Detroit’s Chapter 9 restructuring.