In a move that could have sweeping repercussions, a group of Oklahoma taxpayers and their attorney are demanding that the Oklahoma City school district file a multi-million dollar lawsuit against the state's largest bond underwriter and others who profited from an alleged arbitrage scheme.

The group contends that the district's bond underwriter and financial adviser -- Stifel, Nicolaus & Co. -- bond counsel, and others involved in a questionable cash-management program in 1990 and 1991 should pay the Internal Revenue Service bill for appearing to violate federal arbitrage restrictions. It is not the responsibility of the taxpayers, they say. to fork over the money for a bill that could exceed $1 million.

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