According to Attorney General Patrick Morrisey, the state of West Virginia will receive $950,000 through a settlement with three of the 22 institutions charged with allegedly rigging bids, fixing prices and manipulating the markets for municipal derivatives. This officially brings the total number of banks the state has settled with in the multi-district litigation to seven.
“We are pleased our office could reach this settlement with the three financial institutions,” Morrisey said. “Our office worked diligently on this case, and it is good to see the work pay off.”
The deal, which was announced on July 28th, will close claims against GE Funding Capital Market Services, Trinity Plus Funding Co., and Trinity Funding Co. who were sued as part of the 2009 lawsuit filed by previous Attorney General Darrell McGraw. These institutions, who denied allegations at the time the complaint was filed, also denied any wrongdoing in Monday’s settlement.
Morrisey’s office has already reached antitrust settlements with JPMorgan Chase, Morgan Stanley, Bank of American, and Royal Bank of Canada in the past 18 months.
Lawsuits against the remaining banks remain ongoing.
The majority of the settlement money, except for attorney fees and costs, will benefit state agencies that had invested in municipal derivatives, including the West Virginia Higher Education Policy Commission, the West Virginia Water Development Authority, West Virginia University’s Board of Governors, the West Virginia Economic Development Authority, the West Virginia Hospital Finance Authority, Shepherd University, the West Virginia School Building Authority, the West Virginia Department of Highways, West Virginia Housing Development Fund, and Fairmont State University’s Board of Governors.
The Attorney General’s Office was represented in the case by the Berthold Law Firm.