Class Certification In A Multi-Billion Dollar Antitrust Class Action

Quinn Emanuel recently secured class certification in City of Philadelphia v. Bank of America Corp., a case that addresses alleged collusion in the variable rate demand obligation (“VRDO”) market. The class seeks over $4 billion in damages, before trebling, from the alleged collusion. 

The class consists of VRDO issuers, which are typically municipalities that use VRDO instruments to raise funds for critical infrastructure projects like building hospitals or airports. The key distinction between VRDOs and traditional municipal bonds is that the interest rate is variable, with the bank intermediary—the “remarketing agent”—setting the rate periodically based on the level the bank believes would clear the market, the rate where VRDO supply from the VRDO issuers meets demand of the VRDO investors. The largest remarketing agents in the industry are the Defendants in the class action.