Litigation

Austin Transit Partnership's ability under Texas law to seek expedited court validation for bonds to finance light rail is the subject of an April 25 hearing.

Under the proposed deal, the city would sell $650 million of judgment bonds to fund back pay for firefighters, whose wages would increase by up to 34% over the life of a new five-year contract.

The extraordinary redemptions being used to call Build America Bonds "are based on a creative but flawed legal argument driven by the current change in interest rates," said Kramer Levin partner Amy Caton.

The payout represents the maximum percentage a whistleblower can receive under the False Claims Act in Illinois.

The $650 million settlement will fund back pay for firefighters, who will also get future wage hikes.

The denied motion will give Rochester MAs Richard Ganci and Richard Tortora of Capital Markets Advisors the opportunity to motion for summary judgment, giving the judge a chance to consider all of the evidence present in the case.

A power struggle over the governance of the Oklahoma Turnpike Authority and a Houston mayor ending a legal dispute with firefighters that could improve the city's Fitch rating are among the legal stories bond market professionals are watching.

Oklahoma Attorney General Gentner Drummond released opinions that disallowed the holding of multiple government roles by Turnpike Authority Executive Director Tim Gatz and upheld the constitutionality of a 2023 law that altered the turnpike's governance structure.

Legal challenges to congestion pricing tolls may delay much-needed repairs to the city's transit system, the Metropolitan Transportation Authority said. 

Austin Transit Partnership, which was created by the city and its mass transit agency to develop and finance Project Connect, approved an initial bond sale of up to $150 million.