WASHINGTON - A U.S. District Court judge in California has dismissed a lawsuit brought by the Riverside County Housing Authority, clearing the way for the Internal Revenue Service to tax holders of bonds sold in conjunction with the $17.5 million Whitewater Gardens black box deal.

Judge Consuelo B. Marshall of the U.S. District Court for the Central District of California in Los Angeles ruled last week that the court does not have jurisdiction in the case, because the authority can use other avenues to block the IRS from collecting $2.25 million in arbitrage profits earned by the authority in the deal.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.