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Investors take settlement in failed Mamtek plant

Investors approved a confidential agreement Wednesday after fighting in court to get their money back from the failed Mamtek scandal.

On Wednesday morning, lawyers met behind closed doors for about 30 minutes. The judge came back and thanked the jurors for their service.

On Tuesday the courtroom was standing room only. The judge asked questions of more than 50 jurors, specifically if they were involved directly with the failed Mamtek development or had any knowledge of it. The jury was chosen for the class-action lawsuit Tuesday shortly before 5 p.m.

The $39 million development was funded by bonds bought by individual investors who are now out their money after the development failed to open. Mamtek CEO Bruce Cole was already sentenced to seven years in prison for his part in the failed development.

Armstrong Teasdale, a law firm in St. Louis, and investment banking firm Morgan Keagon are the focus of this trial.

The two are being accused of breaking Missouri security laws by skirting the truth to market the bonds to potential investors.

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