New Jersey top court revives VRDO rate-rigging lawsuit - Bond Buyer

Key points

• New Jersey Supreme Court revived a VRDO rate-rigging lawsuit that had been previously dismissed or challenged
• Variable rate demand obligations are a type of municipal bond used for public financing
• The case involves allegations of anticompetitive conduct in the VRDO market
• The court's decision allows the litigation to proceed rather than remain dismissed
• This affects New Jersey's municipal finance and bondholder interests

FAQ

What are VRDOs and why are they significant?

Variable rate demand obligations are a type of municipal bond with interest rates that adjust periodically. They are widely used for public financing but have been the subject of allegations regarding rate manipulation and anticompetitive practices in the financial markets.

What does the court's decision mean for the case?

The New Jersey Supreme Court's decision to revive the lawsuit means the rate-rigging allegations can proceed through the legal system rather than being dismissed. This allows plaintiffs to continue pursuing their claims against the defendants named in the suit.