Quote:
Originally Posted by dissentowner
No, it really doesn't. The GWI did not have to win nothing, they stated what the law stated was illegal and threatened to sue Glendale over it. If the city really believed that their claim was legit they would have got the deal done right? My claim is accurate because that is what is written as a law, what part are you not understanding here?
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Goldwater claimed
the law stated it was illegal. That is a far cry from being able to state as fact that
the law considers this illegal. The city can only offer the bond and hope they sell. Goldwater chilled the market, however, by threatening potential buyers with the lawsuit. Their actions were such, actually, that the city threatened to sue them over it.
The facts, as we know them, are that Goldwater's threats of a lawsuit chilled the market on the bonds. Given the threat drove up the risk, investors naturally went elsewhere with their money. That is not tantamount to an admission that the offering was illegal in the first place. Such a statement can only be definitively made once a court has ruled on the matter.