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Calif. hospital sues Citigroup, advisers
Modern Healthcare

Tri-City Medical Center, Oceanside, Calif., has sued Citigroup, New York, alleging the bank misled hospital executives or falsely marketed tax-exempt bonds sold in auctions with claims that the debt was relatively low risk. The hospital refinanced $68 million of long-term debt to auction-rate bonds roughly nine months before the nation’s emerging credit crisis paralyzed the $330 billion auction market. When the $330 billion market collapsed in February 2008, interest on the auction bonds spiked.