Posted: May 4, 2013 12:06 PM by Associated Press
Updated: May 4, 2013 1:22 PM
MOBERLY, Mo.- The city of Moberly and its industrial development agency have been dismissed from a civil lawsuit filed by spurned investors in the failed Mamtek artificial sweetener factory.
The Columbia Daily Tribune reports that a Cole County judge on April 25 dismissed the city and the Moberly Industrial Development Authority from a 2012 suit filed by Shelter Insurance Cos. and the Waddell & Reed investment brokerage.
The companies are suing investment broker Morgan Keegan and the Armstrong Teasdale law firm. Morgan Keegan wanted Moberly added to the suit since the bonds were issued on behalf of the city.
Former Mamtek CEO Bruce Cole still faces criminal fraud charges connected to the company's collapse. He's also a defendant in a civil lawsuit by the federal Securities and Exchange Commission.
Information from: Columbia Daily Tribune, http://www.columbiatribune.com