October 21, 2014
RENO, Nev. (AP) - The city of Reno has claimed an early victory in its legal battled aimed at retrieving millions of dollars from Goldman Sachs.
U.S. District Judge Robert Jones agreed this week the city can go forward in its effort to start private arbitration over $210 million in bonds the city first issued in 2005 to pay for projects like the downtown events center.
City officials say Goldman Sachs misled them about the risk of issuing the bonds on a specialized market. The move ended up costing the city millions in unexpected higher-than-normal interest rates and fees.
Goldman Sachs had tried to block Reno from taking the case to the Financial Industry Regulatory Authority in New York. But the judge rejected the giant investment banker's request for a preliminary injunction on Monday.
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