Class Action Challenges Huge Sewer Debt

BIRMINGHAM, ALA. (CN) - Fraudulent bond deals left Jefferson County sewer customers owing $11,491 apiece, the highest debt in the nation, according to a class action against JP Morgan Chase and other banks, the Jefferson County Commission and the mayor of Birmingham.

Sewer bills have risen more than threefold since 1997, the plaintiffs claim in Jefferson County Court.

Here are the defendants: JP Morgan Chase & Co.; Morgan Keegan & Company Inc.; Regions Bank; Charles LeCroy; Douglas McFaddin; Goldman Sachs Specialty Lending Group LP; Bear Stearns Funding Inc.; Blount Parrish & Roton Inc; William Blount; Bank of America, National Association; Lehman Brothers Inc.; Gardner-Michael Capital Inc.; Larry Langford; Gary White; Steve Small; Bettye Fine Collins; Jeff Germany; Mary Buckalew; Sheila Smoot; Steve Saylor; CDR Financial Services Inc.; Financial Guaranty Insurance Co.; and XL Capital Assurance Inc.

Plaintiffs are represented by Kathryn Harrington, with Hollis, Wright & Harrington.

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