Law and legal issues

The judge in Stockton's bankruptcy case has approved the city's plan to exit bankruptcy, without impairing the California Public Employees Retirement System.

Claims against UBS from Puerto Rican investors have surged to $900 million, the group said Tuesday in its third-quarter earnings report.

Convicted bid-riggers Peter Ghavami, Michael Welty, and Gary Heinz are urging a federal appeals court to overturn a lower court's decision on the basis of an expired statute of limitations, improper testimony, and other alleged errors in their earlier trial, but the federal government is arguing the lower court was correct to punish the former UBS AG executives.

The Virginia Tobacco Settlement Financing Corp. won't have to dip into reserves this year thanks to a settlement with bankrupt Lehman Brothers.

The Harris County-Houston Sports Authority plans to refinance more than half of its outstanding debt after settling legal disputes with bond insurer National Public Finance Guarantee. The authority plans to issue $579 million.

Members of Detroit's two pension systems and Wayne County's retirement system have the systems' actuarial firm, alleging that consultants used faulty assumptions that contributed to underfunding that some say helped drive the city into bankruptcy.

An ruling from a Superior Court judge during a hearing scheduled for Oct. 31 could bring the end to a lawsuit brought by Ontario, California seeking the return of its local airport from the control of Los Angeles.

The operator of the Indiana Toll Road won federal court approval for a bankruptcy plan that will either sell its 75-year lease of the highway or restructure the company with $2.75 billion of new debt.

Harrisburg, Pa., has a balanced budget after City Council members passed a resolution to add savings from a months-long hiring freeze to offset expenses.

Michigan should enact protection of general obligation bonds to help the state's local governments in the wake of Detroit's treatment of its GOs as unsecured, says bankruptcy expert James Spiotto.

Harrisburg has petitioned a Pennsylvania court to incorporate a nonprofit that will focus on long-term economic development and infrastructure improvements.

The trial to decide if Detroit's bankruptcy confirmation plan will be approved closed with attorneys for the city defending its debt-adjustment plan as fair to creditors and capable of setting the city on a path to revitalization.

On the closing day of Detroit's bankruptcy trial, municipal research firm Municipal Market Advisors warned that the city may have just set itself up for another Chapter 9.

West Hazleton Borough exited Pennsylvania's Act 47 program for distressed municipalities, according to Gov. Tom Corbett

The Government of the U.S. Virgin Islands and the Virgin Islands Public Finance Authority filed a lawsuit this week against their former bond counsel and financial advisor, alleging they were negligent when they advised that $219.49 million of bonds issued in 2006 would be tax exempt.

Charges were dropped against one person after former Orlando-Orange County Expressway Authority board member Scott Batterson gets prison.

The trial on Detroit's debt-adjustment plan adjourned after court-appointed finance expert Martha Kopacz testified that its plan to exit Chapter 9 bankruptcy is feasible.

Harrisburg, Pa., will start the clock again for yet another city treasurer after Timothy East resigned following revelations of his personal bankruptcy. He had been named to the position in September after predecessor John Campbell was charged with theft from two nonprofit groups.

Timothy East became the second Harrisburg, Pa., treasurer to resign in two months, a city official confirmed late Tuesday.

More details on Detroit's crucial settlement with bond insurer Financial Guaranty Insurance Co. emerged Tuesday, while testimony on the feasibility of the city's bankruptcy exit plan is expected to come Wednesday, the final day of the historic trial.