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Office of the
Illinois Attorney General
Kwame Raoul

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June 28, 2024

Settlement is One of the Largest Reached Under Illinois False Claims Act

 Chicago – Attorney General Kwame Raoul today announced his office will begin the process to distribute funds resulting from a $70 million settlement approved in October 2023 with Bank of America, Barclays Capital Inc., BMO Financial Corp., Citigroup Inc., Fifth Third Bancorp, JPMorgan Chase & Co., Morgan Stanley, William Blair & Co, and Edelweiss Fund LLC (Edelweiss). 

 The settlement is one of the largest reached under the state’s False Claims Act in recent years and resolves allegations that the defendants rigged interest rates on bonds known as variable rate demand obligations. The False Claims Act is an enforcement tool that allows the state to hold bad actors accountable for knowingly defrauding the state.

 “This historic settlement is the result of extensive negotiations,” Raoul said. “I am pleased that the state and local governments across Illinois will soon see these funds restored to the benefit of taxpayers.”

Following today’s court approval of Raoul’s motion to authorize the distribution of settlement funds, $33.6 million will be distributed to bond issuers in Illinois, including the state and several municipal governments. More information on the distribution of settlement funds can be found in the order.

 Edelweiss initiated the original complaint as a whistleblower under Illinois’ False Claims Act and is entitled to the remainder of the settlement amount as compensation and for its legal costs.

 Division Chief Chris Wells and Deputy Division Chief David Buysse of Raoul’s Public Interest Division, Bureau Chief Harpreet Khera and Complex Litigation Counsel Isaac Freilich Jones of Raoul’s Special Litigation Bureau handled the litigation for Attorney General Raoul’s office.