CHICAGO - Representatives for the Iowa Trust late Wednesday took legal action against Marshalltown, Iowa, claiming that its former city treasurer failed to adequately monitor the activities of the trust's investment adviser.

David Lyons, receiver for the Iowa Trust, said he filed a petition in Polk County District Court to add Marshalltown to a lawsuit originally filed in December 1991 against former trustees and the trust's legal counsel. Those named in the original suit included former Marshalltown Treasurer Elaine Gundacker and the trust's legal counsel, Davis, Hockenberg, Wine, Brown, Koehn & Shors of Des Moines.

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