Law and legal issues

Central Falls, R.I., which is on the verge of exiting bankruptcy, would experience modest gains under its five-year budget plan.

JPMorgan Chase & Co. has agreed to pay $44.6 million to settle a 2008 class-action lawsuit in which municipal bond issuers accused the firm of bid-rigging of muni contracts.

Pennsylvania's Department of Community and Economic Development on Monday named law firm Stevens & Lee the recovery plan coordinator for Altoona.

WASHINGTON — A federal judge has delayed sentencing of CDR Financial Services and its founder David Rubin for several months, granting the Department of Justice additional time to complete complex calculations of restitution.

Deloitte LLP will work with Braver PC in a forensic audit of 38 Studios LLC, the struggling video-game company owned by former Boston Red Sox pitcher Curt Schilling, Rhode Island Gov. Lincoln Chafee announced.

While still opposing any bankruptcy filing by her own city, Harrisburg Mayor Linda Thompson said she would object to any extension of the Pennsylvania law that limits cities of Harrisburg’s size from a Chapter 9 filing.

Municipal bond expert Robert Doty says the risk of default for municipal bonds is concentrated in those that are dependent on private profit or nonprofit institutions’ performance.

The Scranton, Pa., Parking Authority went officially into default on Friday after the City Council Thursday turned down a request to pay $940,000 from a contingency account for a loan payment.

As California lawmakers dither over legislation to clean up the messy and sudden dissolution of the state's redevelopment agencies, cities are turning to the courts for clarity.

The Stockton City Council will decide next week whether to give its city manager the power to declare bankruptcy if it is unable to get enough concessions from creditors before the end of June.

DALLAS — Testimony is expected to get under way Monday in a lawsuit by a consortium of 54 Kansas school districts seeking more state aid for education.

Scranton, Pa.'s City Council is willing to allocate $940,000 from a contingency fund to the Scranton Parking Authority to avoid the agency’s default, but wants its officials to answer questions at a public caucus Thursday night.

Providence, R.I., Mayor Angel Taveras late Wednesday afternoon announced an agreement with municipal workers and retirees that city officials say will enable Rhode Island's capital to avoid bankruptcy through cuts in pension and health care benefits.

Troubles at 38 Studios, the video-game company founded by former Boston Red Sox pitcher Curt Schilling, could leave Rhode Island taxpayers with a $75 million bill through a loan guarantee — and emphasizes the risk economic development deals pose for issuers.

BRADENTON, Fla. — Bond insurer Syncora Guarantee Inc. warned prospective buyers of some of Jefferson County, Ala.'s defaulted auction-rate sewer warrants that the insurer may seek to subordinate that debt to its own claims if the warrants are sold to investors by JPMorgan.

Bond insurer MBIA Inc.'s chief attorney told a judge Thursday that the process the New York State Insurance Department and MBIA took to split the company was long and public.

Residential Capital LLC's bankruptcy filing on May 14 is a credit negative for two major bond insurers, Moody’s Investors Service said.

The Commonwealth Court of Pennsylvania on Thursday approved Gov. Tom Corbett’s nomination of retired Major General William Lynch as receiver for distressed capital Harrisburg.

After the Alabama Legislature adjourned May 16 without providing Jefferson County fiscal relief, the federal judge overseeing the bankruptcy case will be asked Thursday to give the county additional time to decide whether to reject a lease securing $82.5 million of revenue warrants, the county said in a court filing last week.

The Commonwealth Court of Pennsylvania will hold a confirmation hearing Thursday morning on Gov. Tom Corbett's nominee for Harrisburg receiver, retired Air Force Major Gen. William Lynch.