The Daily Caller covers CEI’s letter to the Securities Exchange Commision (SEC) notifying them of potential municipal bond fraud.
A libertarian think tank has notified the Securities Exchange Commission (SEC) that California cities and counties may have inadvertently admitted to securities fraud in their global warming lawsuits against oil companies.
The Competitive Enterprise Institute (CEI) attorneys pointed out that localities’ suing a group of oil companies for current and future damages allegedly caused by global warming may have misled municipal bond investors.
“A number of California cities and counties have recently filed lawsuits against several oil and gas companies, claiming that these companies failed to disclose the alleged risks of climate change,” CEI attorneys Sam Kazman and Devin Watkins wrote to the SEC.
“However, in these lawsuits the plaintiff cities and counties apparently describe these climate risks in ways that are far different than how they described them in their own bond offerings. In our view, this inconsistency raises serious questions of municipal bond fraud,” the attorneys added.
Read the full article at The Daily Caller.