$39 million Mamtek lawsuit settled

A settlement was reached Wednesday in the class action lawsuit filed against investment banking firm Morgan Keegan regarding the failed Mamtek sweetener plant in Moberly.

The settlement brings an end to allegations that Morgan Keegan misrepresented to bondholders the chances of Mamtek's success. The company allegedly bilked investors out of $39 million in bonds, according to the St. Louis Business Journal.

Mamtek received $39 million in industrial development bonds from the city of Moberly to help finance an artificial sweetener facility. The plant was never built, and Mamtek defaulted on the debt in August 2011 and the city of Moberly defaulted on its bonds.

Terms of the settlement were not disclosed.

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