Eight banks including JPMorgan Chase & Co. and Citigroup Inc. must face a lawsuit in Illinois seeking $1 billion in damages for allegedly fixing prices on variable-rate municipal bonds and charging states and local governments for services they didn’t receive.
Cook County Circuit Court Judge Diane M. Shelley refused Feb. 1 to dismiss the False Claims Act suit, brought by Edelweiss Fund LLC in 2014 and unsealed last year.
“The plaintiff has stated a cause of action sufficient to go forward,” Shelley said from the bench. Whether the plaintiff will prove the price-fixing scheme, Shelley said, “is another issue.”
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