Federal Judge: California Cities Can Sue Wall Street

A group of California cities and counties can proceed with a lawsuit alleging shenanigans by some of the world's largest financial institutions, a federal judge ruled today.

In a decision delivered in federal court for the Southern District of New York, Judge Victor Marrero denied a motion to dismiss a lawsuit brought by municipalities including Los Angeles, Sacramento, Contra Costa County, San Mateo County, Stockton, and San Diego County.

The lawsuit — filed against companies including Goldman Sachs, Wells Fargo, Citibank, and JPMorgan Chase — asserts that these banks illegally manipulated the market for derivatives of municipal bonds, which public agencies use to fund capital projects such as roads and schools.

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