A Milwaukee County Circuit Court judge ruled yesterday that a lawsuit filed by five southeastern Wisconsin school districts against several financial firms over the safety of an investment involving synthetic CDOs can proceed.

The ruling comes as the districts’ $200 million investment — partially financed with bond proceeds in an effort to bring down the districts’ unfunded liabilities for their other post-employment benefits, or OPEBs — has lost about $190 million of its value, according to court documents.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.