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S&L; Bondholders File Claim: Attorneys for 23,000...

S&L; Bondholders File Claim: Attorneys for 23,000 people who lost money after buying high-risk bonds at Lincoln Savings & Loan in Orange County have filed a $250-million claim against the state Department of Corporations for approving the controversial sale of the uninsured securities. The bondholders accuse the department of “reckless disregard of warnings” about the sale of bonds for American Continental Corp. through its Lincoln unit. Lincoln was seized by federal regulators in April, one day after American Continental filed for bankruptcy protection in Arizona. The claim is the first step needed to include the state in a $250-million class-action lawsuit by the bondholders.


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