City officials Monday joined eight other agencies forming an alliance to sue the investment firm of Merrill Lynch and the County of Orange for losses suffered in the bankruptcy.
The group, called the Option B Participants Alliance and also known as the Killer Bees, has hired two law firms to pursue the litigation.
The agencies in the alliance have from $40 million to $44 million outstanding, said City Atty. James L. Markman.
Buena Park has received 76 cents for each of the $28 million it had in the investment pool, and has $6.7 million owed.
If successful, the city would recover 96 cents on the dollar after legal fees, Markman said.