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RAMIRL4 <br />i. On July 24, 2019, the Puerto Rico Federal Financial Oversight Management Board ("PROMESA") filed <br />an adversary complaint against a dozen municipal underwriters including Ramirez, in connection with <br />Puerto Rico bond offering(s). In response to the allegations, the underwriters' defense counsel filed a <br />motion of dismissal, joined with an insurance claim under our professional indemnity policy. The case <br />is re: The Financial Oversight and Management Board for Puerto Rico, Case No. 17-BK-3283 (LTS) <br />(Jointly Administered). This case has been stayed by the court and is in the process of being briefed. <br />Litigation counsel has not yet formed an opinion on the merits of the allegations. Ramirez shall advise <br />on material developments, if any_ <br />ii. On February 19, 2020, Ambac Insurance Co. ("AMBAC") served the Underwriters including Ramirez and <br />several other firms. Plaintiffs allege misconduct in debt offerings issued by the Puerto Rico <br />Infrastructure Financing Authority ("PRIFA") and the Puerto Rico Convention Center District Authority <br />("PRCCDA") in the mid-2000s. The case is called Ambac Complaint & Summons; Re: CV No: <br />SJ2020CV01SOS (906) Breach of Duty vs. Samuel A. Ramirez & Co., Inc. et al. The Underwriters have <br />filed for removal, pending scheduling by the court. Litigation counsel has not yet formed an opinion on <br />the merits of the allegations. Ramirez shall advise on material developments, if any and; <br />iii. On November 2S, 2020, Financial Guaranty Insurance Company ("FGIC") like the predecessor case <br />(AMBAC, referenced above) served all thirteen underwriters of certain municipal bond offerings issued <br />by Puerto Rico and its instrumentalities. As in the AMBAC pleadings, the company alleges that the <br />underwriters of Lhose bonds failed Lo conduct appropriaLe due diligence and should have alerLed iL Lo <br />certain misstatements or omissions in the official statements for the bonds. Their complaint alleges <br />that the underwriters are liable to it under the Puerto Rico equitable doctrines of octos propios and <br />unilateral declaration of will. The case was filed in Puerto Rico Court of First Instance No. <br />SJ2020CV06383. The Underwriters are in the process of filing a motion for removal, pending scheduling <br />by the court. Litigation counsel has not yet formed an opinion on the merits of the allegations. Ramirez <br />shall advise on material developments, it any. <br />City Council <br />23 — 272 5/18/2021 <br />