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Goldman wages PR fight to clear its name
Legal Business |
2010/04/27 09:36
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Goldman Sachs Group Inc. is fighting to clear its name, but not in a court of law. Goldman has hit back hard against civil fraud charges with a public relations blitz aimed at poking holes in the Securities and Exchange Commission's case and repairing the bank's reputation. Every time the SEC has punched, Goldman has quickly counterpunched. Public relations consultants say it's too early to know if the strategy is working for Wall Street's most powerful bank. Some big Goldman clients are publicly backing the firm, yet its stock has yet to recover from the double-digit nosedive that followed the SEC lawsuit on April 16. To help its cause, Goldman has hired Mark Fabiani, a big player in the PR world with strong ties to top Democrats. Fabiani earned the nickname "Master of Disaster" for his handling of crises during the Clinton administration. He now works as a media consultant specializing in corporate crisis management. Goldman has also brought in top corporate attorneys. And its executives, including CEO Lloyd Blankfein, have been out in public, not hunkering down. The damage control efforts will be on display Tuesday when Blankfein and Fabrice Tourre, the employee named in the SEC fraud charges, are questioned by a Senate subcommittee probing the bank's role in the financial crisis. Goldman's PR campaign, which runs counter to its long history of secrecy, is a bold yet risky move. Some analysts say a poor performance on Capitol Hill could worsen the bank's image problems and make it harder for it to attract and retain lucrative clients. If the strategy fails, analysts say, it could cost Blankfein and other Goldman executives their jobs. But the company got a boost last week when several big clients including the investment firm Blackstone Group and Ford Motor Co. said they're sticking by the bank. More support came from Warren Buffett, whose company, Berkshire Hathaway, has a big Goldman stake. Berkshire Hathaway has said Buffett isn't concerned about his investment in the bank.
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Capitol & K roundup: Lanny Davis starting own law firm
Law Firm News |
2010/04/27 06:38
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Lanny J. Davis, former special counsel to President Clinton, said last week that he is organizing his own law firm, Lanny J. Davis & Associates, to market his services to other law firms and to do work for communications and political strategists on either side of the political aisle. In a release, Davis said he will remain closely associated with his former law firm, McDermott Will & Emery, continuing to service its clients and working with its attorneys. He said the new arrangement would allow him to pursue media crisis and public policy work with a variety of firms, including prominent Republican firms. He noted that he once served as a member of President George W. Bush's privacy and civil liberties oversight board. "In today's Washington, there is usually no clear 'red' solution or 'blue' solution -- almost always, the best solution is a 'purple' or bipartisan solution," Davis said in a statement. "Similarly, there are often no purely legal solutions to legal problems either." Davis is well known around town, and said he will continue to contribute to the "Legal Crisis Strategies" blog that he started in 2009 with his former colleague at McDermott, attorney Eileen M. O'Connor. |
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Law firm bringing 187 jobs to southwest Ohio
Law Firm News |
2010/04/27 06:36
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An international law firm says it will bring 187 jobs to a business services center it's establishing in southwest Ohio. Wilmer Cutler Pickering Hale and Dorr LLP made the announcement Monday at the Miami Valley Research Park in Kettering. The law firm with headquarters in Washington, D.C., and Boston has 1,000 lawyers in 12 cities in the United States, Europe and Asia. The company will renovate a building to house current and new staff in finance, human resources, information technology and other areas to support the company's offices worldwide. A grant application says the site is expected to have an annual payroll of $9.1 million. The city anticipates about $103,000 in annual income tax revenue in the half of a 10-year-lease and $206,000 thereafter.
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Court says Vioxx lawsuits can proceed
Biotech |
2010/04/27 05:35
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The Supreme Court says investors who lost millions when Merck & Co. pulled its blockbuster drug Vioxx off the market can go ahead with a lawsuit against the pharmaceutical giant. The high court on Tuesday agreed with a federal appeals court's decision to allow a class-action securities lawsuit. The lawsuit was related to the tens of billions of dollars in shareholder value lost overnight after Merck pulled Vioxx off the market.
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Supreme Court Stays out of Asian Carp Dispute
Breaking Legal News |
2010/04/26 08:49
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The U.S. Supreme Court decided Monday not to get involved in a dispute over how to prevent invasive Asian carp from making their way into the Great Lakes. The justices turned down a new request from Michigan to consider ordering closure of Chicago-area shipping locks to prevent the fish from threatening the Great Lakes. The locks could provide a pathway to Lake Michigan for the unwanted carp. The court had previously declined twice to order the locks closed on an emergency basis while it considered whether to hear the case. This time, the court rejected a proposal by Michigan and six other states to use a long-standing case involving water diversion from Lake Michigan as a vehicle for seeking to permanently sever a man-made linkage between the Great Lakes and the Mississippi River basin. Michigan has led the legal fight to close the locks, arguing that the ravenous carp, weighing up to 100 pounds, could decimate the lakes' $7 billion fishing industry by starving out competitors such as salmon and walleye.
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U.S. top court to rule on California video game law
Court Watch |
2010/04/26 08:47
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The U.S. Supreme Court said on Monday it would decide whether a California law banning the sale and rental of violent video games to minors violated constitutional free-speech rights, the first time it will consider a video game case. The justices agreed to hear an appeal by the state after a U.S. appeals court based in California struck down the law, which also imposes strict video game labeling requirements, as unconstitutional. The high court is expected to hear arguments in the case and then issue a ruling during its upcoming term, which begins in October. It will be one of the most important cases so far for the upcoming term. In appealing to the Supreme Court, the state argued that the free-speech guarantees of the First Amendment do not bar a state from prohibiting the sale of violent video games to minors under 18. The law, which was adopted in 2005, has never taken effect because of the legal challenge. The law prohibits the sale of an interactive video game to anyone under 18 if the game was so violent it was "patently offensive," according to prevailing community standards and lacked serious literary, artistic, political or scientific value. Michael Gallagher, president and chief executive of the Entertainment Software Association, which represents U.S. computer and video game publishers, said the group looks forward to presenting its arguments and defending the industry's works. |
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Lorillard 1Q profit up, excise tax helps revenue
Business |
2010/04/26 04:49
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Lorillard, the maker of Newport, Maverick and True cigarettes, says its first-quarter profit climbed 26 percent as domestic wholesale shipments and average prices grew. The nation's third-biggest cigarette maker said higher federal excise taxes on smokes helped boost its revenue. Lorillard said Monday its earnings rose to $232 million, or $1.50 per share, in the three months ended March 31. That's up from earnings of $184 million, or $1.09 a share, a year ago. It says revenue climbed to $1.36 billion from $917 million as domestic wholesale shipments of discount brand Maverick grew 48.7 percent. Excluding federal excise taxes, revenue was $923 million partly on higher average prices. Wall Street predicted revenue of $802.7 million. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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