WASHINGTON — A federal judge in Manhattan has ruled that a group of 11 California localities, including Los Angeles, may go forward with their civil cases against Goldman, Sachs & Co., Citigroup, and several other high-profile firms because they may have participated in an alleged conspiracy to rig bids for municipal investment contracts and derivatives.
At the same time, however, Judge Victor Marrero of the U.S. District Court for the Southern District Court of New York dismissed other firms named in the suits, including AIG Financial Products Corp. and a group of related firms referred to as “GE Trinity.” Marrero said that either there is not yet any plausible evidence to link these firms to the alleged conspiracy or the firms’ bids for guaranteed investment contracts fell outside a range cited by a former Internal Revenue Service official as a means of detecting sham or collusive bidding for the contracts.
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