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The staff of the Tampa Bay Times

Jury trial nears as St. Petersburg tries to recoup blown $15.8 million



ST. PETERSBURG -- After mediation failed this week in federal court, a jury trial appears all but likely for a case the city filed last year in an attempt to recoup all or part of $15.8 million in blown Lehman Brothers stock.

The City Council will meet to discuss strategy with attorneys on Monday behind closed doors.

It's a big case. The city's legal tab is nearly $1 million. The city claims that its former financial advisor, Wachovia Global Securities, which is now part of Wells Fargo, didn't inform officials about how Lehman Brothers stock was tanking in 2008. Attorneys for Wells Fargo argue that the city was adequately notified.

During a mediation session on Tuesday, the two sides reached an impasse. If the city remains at impasse, the trial the next step.

Currently, such a trial is expected to begin in March, said City Attorney John Wolfe.


-- Michael Van Sickler, Times Staff Writer

[Last modified: Friday, November 11, 2011 7:17pm]


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