Law and legal issues

Moody's Investors Service is considering across-the-board and targeted downgrades in California in the aftermath of the state's recent municipal bankruptcies.

Creditors of San Bernardino, California, have until Oct. 24 to decide whether they will try to have the city's bankruptcy petition thrown out, a judge said in the city's first day in court.

Defense lawyers for three ex-UBS AG municipal bond traders sought in cross-examination of a government witness to undermine prosecutors' claims that their clients broke the law.

Lloyds TSB sold its defaulted Jefferson County, Ala., sewer warrants, and is the second creditor to drop an appeal in the nation's largest municipal bankruptcy.

The Financial Industry Regulatory Authority has ordered four firms to pay more than $53,000 in fines and restitution to customers for violations of municipal securities fair-dealing, pricing and other rules.

A South Carolina judge has allowed the Georgia Ports Authority to intervene in a lawsuit challenging the deepening project in Savannah Harbor.

Attorney Michael Washo will run the troubled Parking Authority in Scranton, Pa., a judge has ruled after indenture trustee Wells Fargo sued.

JPMorgan wants California's Peralta Community College District to make good on a type of refinancing that may now be illegal, according to a complaint filed Monday.

A federal judge has denied Tampa Bay Water's motion for a new trial to seek repair costs for Florida’s largest reservoir. The agency will now press on with an appeal.

The Flint, Mich., City Council last week voted to file a lawsuit to prevent the new emergency financial manager from taking office, saying the city's financial position has significantly improved since the state took it over last December.

Piper Jaffray & Co., Foster Pepper PLLC and K&L Gates LLP may reduce fees to settle over legal claims tied to Wenatchee $42 million note default.

To prevent further siphoning of revenues from bankrupt Jefferson County's general fund, commissioners will decide whether to close the county's indigent-care hospital.

A federal judge is allowing a lawsuit against the $2.6 billion Ohio River Bridges Project to proceed. Judge John Heyburn ordered briefs filed by the end of February.

Stockton, Calif.'s bond insurers are contesting the city's bankruptcy filing, saying it is unfairly targeting bondholders while asking nothing from its largest unsecured creditor, the California Public Employees' Retirement System.

Ohio officials question the constitutionality of a plan to privatize the state's lucrative liquor system in an effort to advance a $1.5 billion liquor-profit backed bond sale that would finance the deal.

Harrisburg, Pa.'s City Council may allocate $7,500 to defend a lawsuit the city's receiver has filed to force it to triple its earned-income tax, a court ruled.

Attorneys for Miami have proposed a settlement to head off federal civil charges proposed by Securities and Exchange Commission, which filed a similar case against the city in the 1990s.

The bankruptcy case of video game company 38 Studios will move to Rhode Island, after that state's Economic Development Commission and trustee Bank of New York Mellon got Delaware court approval to seize its assets.

The New Mexico Finance Authority board held another emergency meeting Thursday after its chief operating officer and former controller were arrested in connection with a fake audit that brought agency debt issuance to a halt.

Standard & Poor's said Wednesday it has downgraded San Bernardino Joint Powers Financing Authority housing tax allocation bonds to BBB from A-minus due to the city declaring bankruptcy.