Wis. school districts settle over investments - WAOW - Newsline 9, Wausau News, Weather, Sports

Wis. school districts settle over investments

MILWAUKEE (AP) -- Five Wisconsin school districts have settled with a St. Louis-based financial firm they sued over investments that tanked in the global economic collapse.

Attorneys for the districts say Stifel Nicolaus & Co. Inc. on Monday paid $13 million to the districts.

The Milwaukee Journal Sentinel (http://bit.ly/FS12ol) reports Stifel also provided a standby letter of credit for an additional $9.5 million.

The five districts are Waukesha, West Allis-West Milwaukee, Whitefish Bay, Kenosha and Kimberly. They invested in $200 million worth of investments that lost nearly all their value.

The school districts sued Stifel and the Royal Bank of Canada, claiming the deals were fraudulently sold as safe investments.

The districts had intended to use money from the investments to pay for health and pension benefits promised to retirees.

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