2 More Firms Settle Claims With O.C.

Two more investment firms agreed to pay $17.9 million to settle legal disputes with Orange County stemming from the county’s bankruptcy four years ago, bringing the total amount recovered to more than $800 million. Dain Rauscher Corp., a bond advisor accused of failing to warn the county and four schools of the risks the treasury was running, will pay $10 million. Fuji Securities Inc., a broker accused of providing illegal investments and cheating the county out of proceeds from the sale of securities being held as collateral, agreed to pay $7.9 million now and up to $8.6 million later if certain legal rulings go against it on appeal. Both defendants denied contributing to the county treasury’s 1994 loss of more than $1.6 billion but said they wished to avoid further litigation expense. The agreements leave Standard & Poor’s, a bond-rating service owned by McGraw Hill Cos., as the only major defendant in the case. The county contends that the rating agency should have warned about the dangers of former county Treasurer Robert L. Citron’s investment strategies. S&P; contends it was misled by Citron.