Bates White expert testifies in two variable rate demand obligation cases, one with favorable settlement, one ongoing
Ilan Guedj was retained to provide testimony for the plaintiffs in matters brought on behalf of the state of Illinois and the state of New York. At issue in the cases were allegations of widespread fraud and collusion by several financial institutions in the fees they charged and the interest rate they set for state tax-exempt municipal bonds known as variable rate demand obligations (VRDOs).
In the Illinois case, Dr. Guedj submitted several reports and provided deposition testimony in which he proposed methodologies for quantifying damages. The case ultimately settled, with the defendants agreeing to pay approximately $70 million, the largest reported settlement under the Illinois False Claims Act.
Dr. Guedj also provided written and deposition testimony in the New York case. In that case, which has gained media attention (Bond Buyer magazine), settlement talks are ongoing.