A judge denied a defense motion to move a lawsuit filed by bondholders who invested $16.3 million in bankrupt Greater Southeast Community Hospital, Washington, to the Maryland courts; a trial is expected to be scheduled for early 2003. The suit was filed in Washington against a law firm that worked on the hospital's bond issue. Bondholders claim that a clerical error by the firm, Piper Marbury Rudnick & Wolfe, Washington, compromised the bonds' security and cost bondholders millions of dollars in losses. An attorney for the firm said it did not commit malpractice. "We take the investment risk of the transaction with the bonds we buy, but we're not assuming the risk that professionals will make mistakes," said investor Tom Weyl, manager of the municipal research group at Eaton Vance Management, Boston. Greater Southeast filed for bankruptcy in May 1999. -- by Mary Chris Jaklevic
Investor suit over bankrupt hospital to stay in D.C.
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