William Blair sued over Chicago meter privatization

William Blair & Co. was sued by a Chicago resident who accused the investment firm of failing to properly assess the value of a $1.15 billion, 75-year parking meter privatization contract.

Jennifer Bunting of Chicago filed the lawsuit against the firm today at the Illinois state courthouse in the city. She's seeking group status on behalf of the city's 2.8 million residents.

Chicago, the third-largest U.S. city, leased its meters to a partnership led by Morgan Stanley in December 2008. Last July, the group estimated its revenue over the lifetime of the agreement at $11.6 billion. The Blair firm, based in Chicago, was the city's outside financial adviser on the plan.

"The city was paid, conservatively, $974 million less for this 75-year lease than the city would have received" from the revenue generated by its 36,000 meters during that time, Bunting said, citing a 2009 report by the city's inspector general.

Bunting accused the firm of negligence, alleging its valuation "shortchanged" the city of millions or billions of dollars for which she's seeking unspecified money damages.

Tony Zimmer, a spokesman for William Blair, didn't immediately return a voice-mail message seeking comment.