Law and legal issues

A federal judge has ordered seven defendants to disgorge millions in ill-gotten gains and imposed other administrative penalties stemming from a pay-to-play case involving the New York State Common Retirement Fund.

The bankruptcy litigation surrounding Detroit's general obligation bonds is unlikely to have a broad legal impact on the meaning of the GO pledges in bonds nationwide, says Moody's Investors Service in a report.

Arizona's police and firefighters pension fund has been ordered to submit documents as part of a criminal investigation, according to the Arizona Republic.

The attorney representing a Rhode Island agency in the lawsuit against failed video-game company 38 Studios denied a state senator's request for exhibits.

The SEC and former JPMorgan bankers asked a federal court not to exclude experts in the pay-to-play suit involving Jefferson County, Ala.'s sewer deals.

The Kansas Supreme Court upheld a lower court ruling that the state's funding for public schools violates the state constitution.

Market observers say no Detroit scenarios are on the Northeast municipal finance horizon and some situations have improved, notably in Pennsylvania and Rhode Island

The sentencing of municipal bond bid-rigger David Rubin has been postponed to 3:30 p.m. March 12.

U.S. Bankruptcy Judge Steven Rhodes pushed back by one month a trial date on the city's plan of debt adjustment after bond insurers and other creditors asked for more time to respond to the controversial plan.

Detroit in a court filing Thursday said it has reached agreement with Barclays Inc. for a $120 million debtor-in-possession financing.

Detroit Wednesday asked the bankruptcy court to set a March 20 date for a hearing on its latest settlement with its interest-rate swap counterparties, calling it key to the city's overall plan of debt adjustment.

Colorado approves a $490 million public-private partnership to redevelop U.S. 36, but a Boulder group renews its threat of a lawsuit.

Georgia Gov. Nathan Deal applauded Monday's U.S. Supreme Court decision to have the Department of Justice file a brief in the water wars case with Florida.

Cranston, R.I., Mayor Allan Fung, who cemented a pension overhaul package for his city, said the proposed state-level settlement burdens communities.

Puerto Rico Gov. García Padilla on Tuesday authorized Puerto Rico to sell up to $3.5 billion in general obligation bonds with possible New York court oversight.

Two ratings agencies have downgraded the Beaumont Independent School District, Texas in the midst of state and federal criminal investigations.

Detroit has reached a new settlement with its interest-rate swap counterparties that could significantly boost its efforts to pursue a cramdown plan of adjustment if necessary.

The Illinois Supreme Court ordered that four pending lawsuits challenging the legality of the state's pension overhaul be consolidated and handled by the Sangamon County Circuit Court.

A recent decision by Port St. Lucie, Fla., to postpone refinancing bonds issued for the now-bankrupt Digital Domain is a credit negative, according to Moody's.

Detroit is treating the bonds issued by the Downtown Development Authority as secured, though the DDA itself is expected to take a 80% haircut on an outstanding loan, Fitch Ratings noted in a comment.