Judge Dismisses $7-Billion Suit by A-Plant Investors
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SEATTLE — A judge today tossed out a $7.25-billion lawsuit filed by bondholders of the Washington Public Power Supply System against the state and several top officials over the default of two nuclear plants.
King County Superior Court Judge Terrence Carroll abruptly rejected the suit before a trial was held, ruling that if the utilities that backed the bonds could not be held liable, neither could the state.
The case was filed in 1983 on behalf of 12,000 investors who bought bonds in terminated WPPSS plants 4 and 5. The suit sought to recover both principal and interest on bonds floated to finance the two nuclear plants, whose termination caused the nation’s largest municipal default.
Charles S. Webb III, a New York attorney who represented the plaintiffs, said he was surprised by the ruling and would have to review it with his clients before deciding whether to file an appeal.
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