The Firm serves as court appointed Co-Lead Counsel in an action pending in the Southern District of New York in which the cities of Philadelphia and Baltimore claim that certain financial institutions, including Bank of America Corp., Barclays Bank PLC, and Goldman Sachs & Co. LLC, artificially inflated interest rates on securities known as variable-rate demand obligation bonds (“VRDOs”), which are tax exempt bonds used to fund major municipal projects. VRDO interest rates are reset daily or weekly, and the banks serving as remarketing agents are obligated to keep the cities’ rates as low as possible. In March 2019 the Defendant financial institutions moved to dismiss the Amended Complaint in its entirety. Briefing on Defendants’ motion to dismiss was completed in November 2019. On November 2, 2020, the Court (Judge Jesse Furman) denied Defendants’ motion and ruled that the claims asserted in the Amended Complaint, if proved at trial, would constitute a Per Se violation of the antitrust laws. The Court also denied Defendants’ efforts to limit the claims to four years, based upon the statute of limitations, because Plaintiffs had sufficiently alleged fraudulent concealment.
The case is The City of Philadelphia et al. v. Bank of America Corp. et al., 1:19-cv-1608 (S.D.N.Y.).