Taking it to court. California hospital sues Citigroup, insurer over auction-rate bonds, saying it wasn't told of the market's risks.
In the fallout from the financial crisis, one California hospital is seeking a legal remedy. Tri-City Medical Center is suing its bank, insurer and financial adviser over bonds the public hospital issued in the auction-rate market. The market prior to 2006 "had a risk that was being ignored by the underwriters and was unknown by the issuers and the investors," says James Cox, a professor at Duke University Law School.
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D002140:California; D005381:Financing, Organized / Q000331:legislation & jurisprudence*; D006761:Hospitals; D007449:Investments / Q000191:economics / Q000331:legislation & jurisprudence*