According to the Complaint, this action arises from the offering and sale on June 19, 2008 of $26,445,000 in face value of Telecommunications Revenue Bonds (FiberNet Monticello Project) Series 2008 (the "Bonds") issued by the City. The Bonds were issued by the City to provide funds to finance the development, acquisition, construction and installation of a "fiber to the premises" broadband communications network (the "FTTP Project"), which provides cable television services, internet access and telephone services. The FTTP Project is owned, developed and constructed by the City.
The Complaint alleges that the City, in connection with the offering and sale of these Bonds, failed to disclose material facts that indicated that the FTTP Project could not generate sufficient net revenues to make the project economically feasible. Plaintiff and the Class purchased the Bonds upon review, and in reliance upon: a Preliminary Official Statement issued by the City on May 5, 2008 (the "Original POS"), and by a Supplement to the POS, dated June 3, 2008 (the "Supplement" and, together with the Original POS, the "Final POS"). As required by the rules of the Municipal Securities Rulemaking Board (the "MSRB") and Rule 15c2-12 of the Securities and Exchange Commission ("Rule 15c2-12"), the "Final POS" was the "deemed final" offering document. As also required by Rule 15c2-12, the Final POS, with additional information added, became the Official Statement dated June 10, 2008 (the "Official Statement," and, together with the Final POS, the
"Offering Documents"), which failed to disclose material facts.
On April 11, 2014, a Settlement Agreement between the parties was entered into the Court's docket. This Settlement was given final approval by the Court on September 12, and this case was dismissed with prejudice. The Court also awarded attorneys' fees and expenses.