Monorail bondholder sues for fraud
State of Nevada, monorail board members,
casino execs could face liability lawsuits
By Steven Miller
LAS VEGAS — Critics of the selling of the Las Vegas Monorail project and the State of Nevada's role in it have long predicted that someday the whole affair would end up in court, the subject of fraud litigation.
That day has come.
Citigroup — which the State of Nevada hired to be lead underwriter for the issuance of the monorail's state-approved bonds — is being sued for fraud.
According to the complaint, Citigroup's official prospectus for the $600 million-plus bond offering in 2000 failed to disclose a highly material report — one that "seriously undermined the reliability of" ridership projections that Citigroup and monorail backers were using to convince investors that the monorail was a sound investment.
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