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Bates White expert testifies for plaintiffs in two variable rate demand obligation cases with favorable outcomes

Ilan Guedj was retained to provide testimony for the plaintiffs in matters brought on behalf of the state of Illinois and the state of New York. At issue in the cases were allegations of widespread fraud and collusion by several financial institutions in the fees they charged and the interest rate they set for state tax-exempt municipal bonds known as variable rate demand obligations (VRDOs).

In the Illinois case, Dr. Guedj submitted several reports and provided deposition testimony in which he proposed methodologies for quantifying damages. The case ultimately settled, with the defendants agreeing to pay approximately $70 million, the largest reported settlement under the Illinois False Claims Act.

Dr. Guedj also provided written and deposition testimony in the New York case, which has gained media attention (Bond Buyer magazine).

On April 4, 2025, the NY Supreme Court granted the relator’s motion for summary judgment on the issue of materiality of the alleged misrepresentations concerning the defendants’ judgment in setting rates as low as possible. The order cited Dr. Guedj’s expert report multiple times as evidence for inflated rate damages.

Dr. Guedj was supported by teams that included Amit Bubna, Julian Chan, and Katelyn Roache.

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