Global financial institution defends claims in VRDO matters

Client(s) Global financial institution

Jones Day is defending a global financial institution in several matters related to its activities as remarketing agent for variable rate demand obligations (“VRDOs”) issued by agencies or units of state and local government. First, in state court actions unsealed in California and New York, numerous financial institutions face claims that they violated each state’s False Claims Act. Second, in a class action brought in federal court, the City of Philadelphia asserts claims against numerous financial institutions for antitrust violations and breach of contract. These lawsuits are based on allegations that the defendants conspired to set VRDO interest rates at artificially high levels at the issuers’ expense.