Law and legal issues

A federal judge has ruled that the Securities and Exchange Commission's fraud case against Miami, Fla. and its former budget director can continue in civil court, denying both defendants' motions to dismiss.

Former Bear Stearns banker Chol-Su "Chris" Pak was sentenced to three years of probation and a $20,000 fine for his part in a massive El Paso County corruption scandal.

A group of retired teachers and school officials launched the first legal challenge to Illinois' controversial pension reform law, claiming it is unconstitutional.

Detroit emergency manager Kevyn Orr filed an order with the bankruptcy court outlining and defending the city's revised settlement with its interest-rate swap counterparties.

Detroit's pension funds Thursday asked a federal circuit court to allow an expedited appeal of the bankruptcy court's recent ruling that the city is eligible for Chapter 9 and that its pensions can be cut, saying the case has national implications that warrant a speedy review.

Mark Schwartz, who represented the Harrisburg City Council in its failed bankruptcy filing, is suing Pennsylvania's capital city for nonpayment.

Providence, R.I., fire and police unions have sued Rhode Island's capital city, saying the city didn't factor longevity payments in calculating overtime pay.

Attorneys for Detroit's pension funds said they will challenge a new settlement between the city and its interest-rate swap counterparties.

The closing of Harrisburg, Pa.'s financial recovery plan "is not the end of anything," according to state-appointed receiver William Lynch.

As Fresno, Calif. continues to struggle with a weak economy, rising labor costs, and falling bond ratings, market participants express concerns of bankruptcy risk.

Bankrupt Detroit will shave about $65 million off its costs to terminate interest-rate swaps under a new settlement agreement reached with its bank counterparties the day of Christmas Eve.

The five-day trial to settle a rate dispute between the San Diego County Water Authority and its wholesale water supplier ended without the judge making a ruling.

San Jose, Calif. cannot make voter approved pension cuts, but it can reduce pay to help fund higher retirement costs, a judge ruled on Monday.

A bond insurer and Detroit's two pension funds are among five appointees to the committee named to represent the interests of unsecured creditors as the city proceeds through Chapter 9.

Proceeds from two bond deals designed to keep Harrisburg, Pa., out of bankruptcy fell "well within the range" of projected revenues, said receiver William Lynch.

Former Ohio Deputy Treasurer Amer Ahmad, recently Chicago's comptroller, pleaded guilty in federal court to charges he orchestrated a kickback scheme involving state investment business.

Nine days after downgrading them, Standard & Poor's upgraded six series of Jefferson County, Ala. limited obligation school warrants to investment-grade BBB from D.

Detroit's federal bankruptcy judge urged the appellate court to reject an appeal of his recent rulings on the city's eligibility for Chapter 9 and declined to recommend an expedited appeal process.

When Standard & Poor's downgraded Jefferson County, Ala.'s school warrants to D, some people said the action was misleading and others were confused.

CHICAGO - Detroit told the bankruptcy court Friday it may sue its interest-rate swap counterparties without a revised settlement to terminate the swaps under more favorable terms. The warning raises the stakes on mediation.