Law and legal issues

JPMorgan Chase & Co. and Wells Fargo will pay municipal bond issuers a total of nearly $78 million to settle a civil class-action lawsuit claiming the banks manipulated bidding for guaranteed investment contracts.

The leader of Harrisburg, Pa.'s regional chamber of commerce resigned from the city's municipal financial recovery advisory committee amid backlash over a video lampooning Harrisburg's debt crisis.

Pennsylvania Education Commissioner Ron Tomalis named Gene Veno chief recovery officer for Harrisburg's schools in what could be a prelude to receivership.

Despite ongoing federal scrutiny related to past bond deals, Miami closed on the sale of $45 million of revenue bonds Thursday for an all-in, true-interest cost of 3.82%.

A lawsuit challenging the legality of the Dulles Rail project's toll-powered funding mechanism will have to head to yet another venue after the federal court weighing the case decided it did not have jurisdiction to rule on the matter.

Bondholders impacted by the San Bernardino bankruptcy are fighting an attempt by the California Public Employees' Retirement System to be given precedence over other creditors.

The $3 billion bond-funded Cancer Prevention Research Institute of Texas faces a criminal investigation over an $11 million grant to a company backed by a major campaign contributor to Gov. Rick Perry and Lt. Gov. David Dewhurst, according to the Travis County District Attorney's public integrity unit.

Two days of testimony on distressed Scranton, Pa.'s request for a commuter tax ended in Lackawanna County, with a three-member panel of judges yet to rule.

National Public Finance Guarantee Corp. asked the judge overseeing the Jefferson County bankruptcy to order an examination of the county's budget and financial condition.

The Detroit City Council Tuesday reversed an earlier vote and narrowly approved a controversial three-year legal contract with public finance firm Miller, Canfield that state officials said is necessary for the release of bond proceeds.

The recently appointed administrator of an insolvent Southern California school district, resigned after state officials learned he overstepped his authority by making tentative agreements with the teacher's union.

Court officials have rescheduled the sentencing date for the former mayor of Central Falls, R.I., who pleaded guilty last month to corruption charges.

Whether Rhode Island's pension law withstands a legal challenge is still uncertain, but one thing's clear: Judge Sarah Taft-Carter intends to hear the case.

Jefferson County officials have proposed a restructuring plan for a small piece of the bankrupt county's municipal debt that financed a courthouse. It's not clear what if anything that means for the county's more than $3 billion in sewer debt.

In response to a spate of municipal bankruptcies and ongoing fiscal challenges at the local level, the California Treasurer's office has embarked on a project aimed at predicting cities' likelihood of defaulting on bonds.

Gov. Lincoln Chafee suggests settlement talks with unions over the landmark pension overhaul law, while Treasurer Gina Raimondo wants the state to stand firm.

The California Supreme Court refused to hear an appeal from Costa Mesa, Calif. officials in a union lawsuit challenging the city's plan to outsource city jobs.

Michigan is expected to launch a fresh review into Detroit's finances next week, paving the way for the possible appointment of state takeover of the nearly bankrupt city.

The 11th Circuit Court of Appeals has accepted an amicus brief from the Securities Industry and Financial Markets Association in appeals of various municipal bond rulings in Jefferson County, Ala.'s Chapter 9 bankruptcy case.

If CalPERS prevails in having courts define San Bernardino's obligations to the pension fund as immutable in the city's bankruptcy, ramifications could include sweeping bond downgrades, a report said.