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September 20, 2013

Court Affirms Complete Dismissal of Securities Lawsuit Against City of Alameda

Following five years of federal court litigation brought against the City of Alameda by a major national securities firm, the United States Court of Appeal for the Ninth Circuit affirmed in full the decision of the United States District Court for the Northern District of California granting summary judgment in favor of the City on all claims brought against it.  
Filed in 2008, the suit arose from $33 million in Notes issued by Alameda in 2004 to finance the completion of its cable TV and Internet system. Plaintiffs – Nuveen Asset Management and related entities – brought federal and state securities law claims against the City of Alameda, seeking over $10 million. 
In a 32-page decision filed September 19, authored by Circuit Judge M. Margaret McKeown, the Ninth Circuit affirmed the District Court’s summary judgment and dismissal of Nuveen’s claims as lacking in merit. Barring rehearing or a further appeal, the Ninth Circuit’s decision ends Alameda’s involvement in the securities litigation arising from the construction and operation of its telecom system, which it sold to Comcast in 2008.  
In response to the decision, Alameda Mayor Marie Gilmore said, “We appreciate the Ninth Circuit’s thoughtful and well-reasoned opinion, which we see as further vindication of the hard work and integrity of Alameda Municipal Power (AMP) staff, the Council, and the Public Utilities Board, our city manager, our city attorney and outside counsel, Wulfsberg Reese & Colvig.”
AMP General Manager Girish Balachandran joined in the Mayor’s reaction, commenting, “We look forward to putting the distraction and expense of these meritless claims behind us and continuing AMP’s 127-year tradition of providing superior service and value to AMP’s customers and stakeholders.”