McGrane Greenfield LLP Files Class Action on Behalf of Holders of 2007 Copia Bonds; Announces Upcoming Class Deadline
SAN FRANCISCO, June 30 /PRNewswire/ -- The law firms of McGrane Greenfield, LLP and Kershaw, Cutter & Ratinoff, LLP have filed a class action lawsuit on behalf of a class of persons or entities that hold a derivative interest as of June 10, 2009 in bonds issued by the California Infrastructure and Economic Development Bank, referred to as Refunding Revenue Bonds, Series 2007A and Series 2007B (COPIA: The American Center for Wine, Food & The Arts Project), issued pursuant to a certain Indenture dated May 1, 2007, between the California Infrastructure and Economic Development Bank and The Bank of New York Trust Company, N.A. (the "2007 Copia Bonds").
The complaint alleges that the Prospectus for the 2007 Copia Bonds was false and misleading in that it was affirmatively represented in the Prospectus that the 2007 Copia Bonds had been issued for the express purpose of defeasance of a prior 1999 bond issue (the "1999 Bonds") on or before September 7, 2007. The Complaint alleges that the representation was false in that, in order for the prior 1999 Bonds to have been defeased, a written opinion of counsel was required by Section 10.03(4) of the 1999 Bonds Indenture, which was not provided as required. Therefore, the 1999 Bonds have never been made the subject of any proper or legal defeasance and could never have been made the subject of any proper or legal defeasance. The Complaint alleges that the misrepresentation and failure to disclose the lack of any proper or legal defeasance respecting the prior 1999 Bonds and the 2007 Copia Bonds allowed what would have been otherwise unmarketable bonds to be issued and sold. The Complaint alleges that the holders of a derivative interest in the 2007 Copia Bonds suffered substantial losses as a result.
The class action, entitled Copia Claims, LLC v. California Infrastructure and Economic Development Bank, was filed on June 10, 2009, and amended on June 16, 2009. The action is pending in the United States District Court for the Eastern District of California. The Case Number is 2:09-CV-01610. It names as defendants Infrastructure and Economic Development Bank; The Bank of New York Mellon Trust Company, N.A., ACA Financial Guaranty Corporation ("ACA"), and Orrick, Herrington & Sutcliffe, LLP. Defendants are charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and ACA also is charged with insurance bad faith.
If you would like more information or a copy of the complaint you can visit the court's website at www.caeb.uscourts.gov and view the docket through the PACER system or contact the attorney for McGrane Greenfield listed below.
If you would like to serve as lead plaintiff in this action, you must move the court no later than August 31, 2009. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may choose to do nothing and remain an absent class member. If you hold, or believe you may hold, a derivative interest in the 2007 Copia Bonds and would like more information please contact McGrane Greenfield by e-mailing or calling to speak with the following attorney:
Christopher D. Sullivan (csullivan@mcgranegreenfield.com)
Phone number: (415) 283-1776
