"The conspiracy operated to deny West Virginia municipal bond issuers competition in the services provided by brokers of municipal derivatives, and to compel West Virginia issuers to pay excessive fees for such services."
The alleged illegal actions by many of the different companies involved include skirting competitive bid practices by agreeing on bidding amounts, not submitting bids or submitting very low bids so another company could win the contract.
The original West Virginia lawsuit alleges RBC participated in a "kickback" scheme involving revenue bonds from the West Virginia Infrastructure and Jobs Development Council. RBC allegedly worked with other companies in "swap" of contracts for bonds.
"RBC knowingly participated in the swap for the purpose of paying a kickback to (another company) in the furtherance of the conspiracy to fix bids, and allocate markets and consumers," the complaint states.
The complaint also alleges RBC won bids for municipal derivatives on other West Virginia bonds because other companies deliberately did not bid.
As part of the May settlement to which the attorney general agreed, RBC denies any wrongdoing. Other state bonds involved come from the state Water Development Authority, the Economic Development Authority, the School Building Authority and the Lottery Capital Improvement Revenue Bonds Fund, according to the Charleston Newspaper archives.
There is potentially still millions of dollars at stake in the lawsuit.
Following investigations by the U.S. Department of Justice, UBS AG and JP paid the department a combined $388 million in restitution, according to Law360. In November 2011, Wells Fargo agreed to settle its part of the lawsuit for $37 million, according to Law360.
Ryan emphasized West Virginia is still engaged in lawsuits with the remaining 21 companies.
Members of Charleston-based law firm DiTrapano, Barrett, DiPiero McGinley & Simmons LLP are working as private attorneys on the case. They will receive $58,327.50 from the settlement for "fees," Ryan said. The firm will not be paid for their costs, she said.
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