CHICAGO -- Three class action lawsuits have been filed against Hennepin County, Minn., alleging that the county defrauded bondholders by failing to adequately disclose that the county could redeem $124.5 million of outstanding revenue bonds before a 1996 optional call date.

The suits were filed earlier this month after the county allowed a letter of credit on the bonds to expire, causing a mandatory redemption. The action saved the county about $41 million in bond premiums and interest payments, according to Jim Ufer, the county's investment/debt manager. The proceeds from the original $129 million of bonds, issued in 1986, financed the construction of an incinerator.

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.