Law and legal issues

The Illinois Supreme Court denied requests by Chicago, other issuers, several civic groups, and a municipal lawyers group to file briefs supporting Illinois Attorney General Lisa Madigan's defense of state pension reforms.

Assured Guaranty will provide Kentucky's Paducah Power System with surety bonds to free up some debt service reserves at the cash-strapped utility, according to PPS officials.

Moody's Investors Service raised the Harris County Houston Sports Authority's subordinate debt to investment grade after settlement of a lawsuit with its bond insurer and financial restructuring.

The arrival of an emergency manager in Atlantic City, N.J. triggered a six-notch downgrade by Moody's Investors Service Friday, drawing criticism from the city's top financial official.

New Jersey Gov. Chris Christie put his state government in control of struggling Atlantic City Thursday, hiring an emergency manager and naming a key figure in Detroit's bankruptcy case as a consultant.

Opponents of North Carolina's plan to toll portions of Interstate 77 north of Charlotte have filed a lawsuit in an attempt to block the express-lane project.

Chicago and its south suburban neighbor Harvey have struck a $20 million settlement that resolves a dispute over the suburb’s delinquent payments for city-supplied water.

Jones Day, the law firm that oversaw Detroit's bankruptcy, said it cut its fee by $18 million, leaving a $58 million final tab that it defended as reasonable given the "cutting-edge" nature of the Chapter 9 case.

U.S. Bankruptcy Judge Christopher Klein has denied a request by Franklin Templeton Investments to stay Stockton's Chapter 9 bankruptcy exit.

Newly inaugurated Texas Gov. Greg Abbott, who sued President Obama 31 times as attorney general, promised to continue fighting the federal government in his first speech as chief executive of the Lone Star State.

Chicago's lawyers warn that the fiscal well-being of the city and its sister governments hangs in the balance as the Illinois Supreme Court considers whether the state's sovereign police powers trump constitutional protections against cutting pensions.

Oppenheimer Funds is looking over a judge's dismissal of its challenge to Rhode Island's plan to sell nearly $600 million in tobacco-settlement bonds.

A Rhode Island Superior Court judge dismissed a challenge by Oppenheimer Funds to the state's plan to sell nearly $600 million in tobacco revenue bonds.

Lazard Freres, which represented retirees in the Detroit bankruptcy, said it agreed to a 37% fee reduction as part of court-ordered mediation.

The pension lawsuit brought against New Jersey Gov. Chris Christie last year is now in the hands of a judge following a five-hour hearing on Jan. 15.

Menasha, Wisconsin, which fell into junk bond status after defaulting on notes tied to a power plant conversion project that went awry, has won back its investment grade rating from Moody's Investors Service.

Bondholders will learn later this month how much they stand to recoup from a settlement that ended a trial accusing Morgan Keegan & Co. Inc. of misleading them on a bond deal that soured after the failure of an artificial sweetener plant project in Moberly, Mo.

A settlement was announced Wednesday to end a federal civil trial stemming from a bond default triggered by the collapse of an artificial sweetener plant project in Moberly, Mo; the former Morgan Keegan & Co. Inc. was among the defendants.

The Illinois attorney general has made her pitch to the state Supreme Court on behalf of legislation designed to restructure the state employee pension system.

A lawsuit brought against New Jersey Gov. Chris Christie over lack of payments to the state's pension system is headed to a key court date.