MDL-1950 - IN RE: Municipal Derivatives Antitrust Litigation

  • MDL-1950 - LC - IN RE: Municipal Derivatives Antitrust Litigation  ---   [BonkNote]
    • MBIA, AIGFP 
  • 1:08-md-1950 03/19/2008 06/16/2008 08/24/2018, Marrero, Victor NYS
    • MDL-1950 - LC - Joint Second Amended Class Action Complaint, AIGFP - 104p
      • 2007 0726 - SEC / COX - Disclosure and Accounting Practices in the Municipal Securities Market, Securities and Exchange Commission - 12p
  • MBIA has received subpoenas or informal inquiries from a variety of regulators, regarding a variety of subjects. 
  • ............
  • On July 23, 2008, the City of Los Angeles filed a separate complaint in the Superior Court, County of Los Angeles, naming as defendants MBIA and other financial institutions, and alleging fraud and violations of California’s antitrust laws through bid-rigging in the sale of guaranteed investment contracts and what plaintiffs call “municipal derivatives” to municipal bond issuers.
    • The case was removed to federal court and transferred by order dated November 26, 2008 to the Southern District of New York for inclusion in the multidistrict litigation, In re Municipal Derivatives Antitrust Litigation, M.D.L. No. 1950.
  • Complaints making the same allegations against MBIA and nearly all of the same co-defendants were then, or subsequently, filed by municipal entities and quasi-municipal entities, mostly in California, and three not-for-profit retirement community operators.
    • These cases have all been added to the multidistrict litigation.
  • The plaintiffs in all of the cases assert federal and either California or New York state antitrust claims.
  • As of May 31, 2011, MBIA has answered all of the existing complaints.

2012 - SEC - Note 20: Commitments and Contingencies - [link]

  • Joint Second Amended Class Action Complaint - 104p
    • THIS DOCUMENT RELATES TO:
      • City of Oakland v. AIG Finan. Prods. Corp., et aI., 08 Civ. 6340 (VM);
      • County of Alameda v. AIG Finan. Prods. Corp., et al., 08 Civ. 7034 (VM);
      • City of Fresno v. AIG Finan. Prods. Corp., et al., 08 Civ. 7355 (VM);
      • Fresno County Financing Authority v. AIG Finan. Prods. Corp., et aI., 09 Civ. 1199 (VM)
    • (p25) - 75. The Municipal Derivatives industry has been variously described by market participants as opaque, intertwined and interconnected, all characteristics which facilitate the type of illegal collusion alleged herein.
      • The Municipal Derivatives market lacks transparency, and regulatory and private efforts to impose transparency have not been successful.
      • On July 26, 2007, the Chairman of the Securities and Exchange Commission delivered a white paper to Congress calling for improved oversight of the municipal securities market.
        • [Bonk: White Paper - 2007 0726 - SEC / COX - Disclosure and Accounting Practices in the Municipal Securities Market, Securities and Exchange Commission - 12p]