Moberly settles Mamtek lawsuit

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A northeast Missouri community has agreed to pay $95,000 to end its involvement in a lawsuit filed by investors in a failed artificial sweetener plant.

The Columbia Daily Tribune reports Moberly and the Moberly Industrial Development Authority have settled a lawsuit filed by Shelter Insurance Cos. and other Mamtek investors.

The city filed notice of the deal with the Missouri Supreme Court this week and asked it to dismiss a pending case to determine whether the city could be forced to take part in the suit.

Mamtek defaulted in August 2011, a year after persuading Moberly leaders to issue $39 million in bonds with the promise of more than 600 jobs. Mamtek's claims also prompted state leaders to authorize up to $17.6 million in tax credits and incentives.

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