Lawsuit Seeks $30 Million In Failed Mamtek Plant

By: AP (posted by Greg Palmer)
By: AP (posted by Greg Palmer)

COLUMBIA, Mo. (AP) A new lawsuit is seeking $30 million from an investment banking firm and 10 employees because of a failed factory project in central Missouri.

Morgan Keegan, which has merged with Raymond James Financial Inc., was the underwriter in 2010 for a $39 million bond issue for a failed artificial sweetener factory for Mamtek US Inc. in Moberly. Construction on the factory stopped in August 2011 when Mamtek failed to make a required bond payment.

The Columbia Daily Tribune reports (http://bit.ly/IwgDPP ) the new lawsuit was filed Wednesday in Boone County because $5.6 million worth of the bonds, in default since 2011, were sold there.

A Raymond James spokesman says the company denies wrongdoing, and the state reviewed the project before the city agreed to issue bonds before Morgan Keegan was hired.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
631 SW Commerce Pl. Topeka, Kansas 66615 phone: 785-272-6397 fax: 785-272-1363 email: feedback@wibw.com
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 233835591 - wibw.com/a?a=233835591
Gray Television, Inc.