{"id":6809,"date":"2019-02-05T19:55:55","date_gmt":"2019-02-06T01:55:55","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6809"},"modified":"2022-05-19T13:23:28","modified_gmt":"2022-05-19T18:23:28","slug":"u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/","title":{"rendered":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets"},"content":{"rendered":"<p>\t\t\t\t<a href=\"https:\/\/www.ca1.uscourts.gov\" target=\"_blank\" rel=\"noopener noreferrer\">The First Circuit Court of Appeals<\/a> has reversed a district court ruling from the lower court over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets. The pension fund is designated for the island\u2019s public employees.<\/p>\n<p>In 2008, the ERS issued roughly $3 billion in bonds that were sold as having a first lien on all assets of the ERS system, including future governmental deposit. These types of bonds are issued by many pension funds to cover pension shortfalls and are commonly known as Pension Obligation Bonds, or POBs.<\/p>\n<p>The original pension fund lawsuit was brought after the island\u2019s government passed legislation that would allow the government to pay retirees the pension obligation they were owed from Puerto Rico\u2019s general fund, rather than through payments to the ERS. The territory\u2019s pension system, confronted with an almost 100% funding shortfall, had liquidated all cash assets.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/\"  title=\"Continue Reading U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The First Circuit Court of Appeals has reversed a district court ruling from the lower court over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets. The pension fund is designated for the island\u2019s public employees. In 2008, the ERS [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6287,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922,4039,4056],"tags":[3276],"class_list":["post-6809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-municipal-bonds","category-puerto-rico-bond-funds","category-puerto-rico-ubs-bond","tag-puerto-ricos-employees-retirement-system"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets &#8212; Investor Lawyers Blog &#8212; February 5, 2019<\/title>\n<meta name=\"description\" content=\"The First Circuit Court of Appeals has reversed a district court ruling over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets &#8212; Investor Lawyers Blog &#8212; February 5, 2019\" \/>\n<meta name=\"twitter:description\" content=\"The First Circuit Court of Appeals has reversed a district court ruling over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets &#8212; Investor Lawyers Blog &#8212; February 5, 2019","description":"The First Circuit Court of Appeals has reversed a district court ruling over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/","twitter_card":"summary_large_image","twitter_title":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets &#8212; Investor Lawyers Blog &#8212; February 5, 2019","twitter_description":"The First Circuit Court of Appeals has reversed a district court ruling over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets","datePublished":"2019-02-06T01:55:55+00:00","dateModified":"2022-05-19T18:23:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/"},"wordCount":738,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","keywords":["Puerto Rico\u2019s Employees Retirement System"],"articleSection":["Municipal Bonds","Puerto Rico Bond Funds","Puerto Rico UBS Bond"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/","url":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/","name":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets &#8212; Investor Lawyers Blog &#8212; February 5, 2019","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","datePublished":"2019-02-06T01:55:55+00:00","dateModified":"2022-05-19T18:23:28+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The First Circuit Court of Appeals has reversed a district court ruling over whether bondholders of nearly $3 billion of debt issued by Puerto Rico\u2019s Employees Retirement System (ERS) have a claim on the pension fund\u2019s assets.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","width":230,"height":230,"caption":""},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-court-of-appeals-reverses-lower-court-and-rules-that-puerto-rico-bondholders-have-a-valid-claim-on-pension-fund-assets\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"U.S. First Court of Appeals Reverses Lower Court and Rules that Puerto Rico Bondholders Have a Valid Claim on Pension Fund Assets"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/07\/ssek-facebook-share-logo.jpg","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1LP","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=6809"}],"version-history":[{"count":1,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6809\/revisions"}],"predecessor-version":[{"id":28163,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6809\/revisions\/28163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media\/6287"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=6809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=6809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=6809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}