Law and legal issues

A bankruptcy judge's ruling in Detroit that pensions aren't a distinct class from other creditors could bolster movement in that direction in the San Bernardino bankruptcy.

American Airlines emergence from Chapter 11 and merger with US Airways Group Inc. officially took off Monday as trading on the new company began.

Massachusetts Treasurer Steven Grossman announced a $265 million settlement related to a class action against the former Massey Energy, which now does business as Alpha Appalachia Holdings.

The Federal Transit Administration said it would give Cincinnati until Dec. 19 to reverse a recent decision to halt a controversial streetcar project or it would pull federal funding.

The federal judge overseeing Detroit's bankruptcy approved a plan for the city to issue $60 million of bonds to finance repairs to its public lighting system.

Standard & Poor's lowered Hillview, Ky.'s GO bond ratings to A-minus from A partly because the city of 7,700 residents is appealing an $11.4 million jury award.

Illinois Gov. Pat Quinn signed the sweeping overhaul of the state's pension system into law on Thursday, calling it a "serious solution to address the most dire fiscal challenge of our time." The legislation will soon face a legal challenge from unions.

U.S. Bankruptcy Judge Stephen Rhodes has released the written opinion supporting his determination that Detroit is eligible to enter Chapter 9 bankruptcy.

Bank of America Corp. has agreed to settle a federal lawsuit accusing it of rigging bids for municipal bonds, according to a published report.

An internet road show next week will precede pricing for Harrisburg, Pa., parking-lease bonds, say bankers behind a deal pivotal to the city's recovery plan.

A state agency has cleared a 40-year parking lease deal that is one of two centerpiece transactions to the Harrisburg, Pa., financial recovery plan.

Jefferson County, Ala., says its bankruptcy adjustment plan was implemented at 1:20 p.m. eastern time Tuesday, though objectors filed notices of appeal.

Auction house Christie's said a slice of Detroit's art collection could be worth between up to $846 million, far less than creditor speculations.

Detroit is eligible for bankruptcy protection, the federal judge overseeing the case ruled Tuesday.

Two groups of Jefferson County, Ala., sewer system customers appealed the county's Chapter 9 exit plan, and the county announced close of the sale of sewer warrants to pay creditors for the plan.

The Missouri Association for Social Welfare last week filed a lawsuit contesting the summary language of a proposed ballot measure seeking approval for a one cent sale tax increase to fund transportation-related projects.

Three former bankers at GE Funding Capital Market Services, Inc., convicted of fraud and conspiracy for rigging municipal bond investment bids are out of prison following a Nov. 26 decision by the U.S. Court of Appeals for the Second Circuit overturning their guilty verdicts.

The bankruptcy judge overseeing Detroit's Chapter 9 case delayed a ruling on a $160 million borrowing plan to finance the city's lighting system due to possible conflict of interest by public finance firm Miller Canfield Paddock and Stone PLC.

The merger of American Airlines and US Airways Group can proceed as scheduled after a federal bankruptcy judge's clearance of the airlines' federal anti-trust settlement.

A state board delayed a vote on an estimated $270 million parking lease deal for Harrisburg, Pa., one of two transactions essential to the city's recovery plan.