Missouri Lawsuit over Failed Sweetener Plant Settled for $8M
An investment banker and a St. Louis law firm are settling for up to $8.25 million in a lawsuit over bonding for a failed Missouri sweetener factory.
The Columbia Daily Tribune reports a settlement deal filed earlier this week will give investors back more than 80 percent of losses on the plant that never was built.
A class-action lawsuit claimed banker Morgan Keegan and law firm Armstrong Teasdale misled investors, who bought $39 million in bonds to construct a Mamtek artificial sweetener plant in Moberly.
The plant was touted as an economic boon for the north-central Missouri town until Mamtek defaulted on bond payments in 2011.
Morgan Keegan and Armstrong Teasdale denied wrongdoing in the settlement filing.