Lawsuit for failed Missouri sweetener plant settled

JEFFERSON CITY, Mo. -- Attorneys have announced a settlement in a class-action lawsuit against an investment banking firm for its role in a failed attempt to construct an artificial sweetener plant in central Missouri.

U.S. District Judge Nanette Laughrey said details of the settlement reached Wednesday with investment banking firm Morgan Keegan are confidential.

The suit sought returns of investments from 133 people who bought $39 million in bonds for the plant between July 2010 and September 2011.

The Moberly Industrial Development Authority issued the bonds to pay for construction of a Mamtek artificial sweetener plant, which was expected to bring 600 jobs to Moberly.

Morgan Keegan purchased the bonds as the underwriter and sold them to investors.

The company later defaulted on bond payments and the factory never was built.