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Hexcel Pays US $15M for Defective Bullet-Proof Vests
Breaking Legal News | 2007/10/30 12:03
Hexcel Corporation of Stamford, Conn., has agreed to pay the United States $15 million to resolve allegations it violated the False Claims Act in connection with its role in the manufacture and sale of defective Zylon bullet-proof vests to federal, state, local and tribal law enforcement agencies, the Justice Department announced today. As part of the agreement with the government, the manufacturer has pledged their cooperation in the government’s on-going investigation of other participants involved in the fraudulent conduct.

The United States alleges that Hexcel wove Zylon fiber supplied by Toyobo Corporation into ballistic fabric used in bullet-proof vests sold by Second Chance Body Armor; DHB Inc. and its subsidiaries, Point Blank Body Armor and Protective Apparel Corp. of America; Armor Holdings and its subsidiaries, American Body Armor and Safariland; and Gator Hawk Armor. These vests were purchased by the United States directly and by various state, local and tribal law enforcement agencies, who were reimbursed with federal funds.

The United States alleged that Hexcel knew the Zylon manufactured by Toyobo was defective and degraded quickly when exposed to heat, light, and humidity. Additionally, the government alleged the company knew Toyobo provided Hexcel with “Red Thread” Zylon, which was weaker than standard Zylon.

“These defective vests were worn by federal officers, who side by side with the Department of Justice, enforce the laws of this nation, and by state, local and tribal officers, who are on the streets every day, contributing to a safer America,” said Peter D. Keisler, Assistant Attorney General for the Civil Division and Acting Attorney General. “We will never tolerate fraud that places our first responders at risk.”

In July 2005, the Justice Department filed a complaint against Second Chance Body Armor and the Toyobo Company, seeking to recover damages relating to the sale of defective Zylon bulletproof vests to the United States. In June of this year, the government filed a lawsuit against Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo America Inc., for their roles in the manufacture and sale of defective Zylon bullet-proof vests to U.S., state, local and tribal law enforcement agencies.


AT&T to Pay Divestitures to Justice Department
Breaking Legal News | 2007/10/30 11:52
The Department of Justice announced today that it has reached a settlement requiring AT&T Inc. (AT&T) to divest assets to address competition concerns in seven markets in Kentucky, Oklahoma, Missouri, Pennsylvania and Texas, including rights to the “Cellular One” brand in order to proceed with its $2.8 billion acquisition of Dobson Communications Corporation (Dobson). The Department said that in certain areas the transaction, as originally proposed, would have resulted in higher prices, lower quality, and diminished investment in network improvements, and would have substantially lessened competition to the detriment of consumers of mobile wireless telecommunications services.

The Department’s Antitrust Division filed a civil lawsuit today in U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Department filed a proposed consent decree that, if approved by the court, would resolve the Department’s competitive concerns and the lawsuit.

“The required divestitures will preserve competition for residents in rural areas in Kentucky, Oklahoma, Missouri, Pennsylvania and Texas and ensure that these consumers continue to enjoy the benefits of competition, such as lower prices, and higher quality,” said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division.

The transaction is also subject to review by the Federal Communications Commission (FCC). The Department has coordinated with the FCC throughout its investigation.

The divestitures are required to assure continued competition in markets where the merger would otherwise result in a significant loss of competition. In three rural service areas (RSAs) in Kentucky and Oklahoma, AT&T and Dobson each hold one of the two cellular licenses and are the most significant competitors. In two RSAs in Missouri and Texas, AT&T has a minority equity interest in, and important control rights over, the primary wireless competitor to Dobson. According to the complaint, the proposed transaction would substantially reduce competition for mobile wireless telecommunications services in these five markets where the businesses wholly or partially owned by Dobson and AT&T collectively serve more than 60 percent of subscribers. The proposed divestitures remedy the competitive problem caused by the otherwise overlapping ownership.

Similarly, the divestiture of the Cellular One brand and associated rights will ensure continued competition in two markets in Pennsylvania and Texas where a Cellular One licensee is the primary wireless competitor to AT&T. Without the divestiture, AT&T would have had the incentive and ability to harm competition by limiting and eliminating the Cellular One licensee’s ability to use the brand effectively.

AT&T is the largest mobile wireless telecommunications services provider in the United States, measured by subscribers, offering service to more than 63 million subscribers in 50 states. In 2006, AT&T earned revenues of approximately $37.5 billion in revenues from its mobile wireless telecommunication services. Dobson is the ninth largest mobile wireless telecommunications services provider to approximately 1.7 million subscribers in the United States, offering service in 17 states. In 2006, Dobson earned approximately $1.3 billion in revenues. Dobson also owns Cellular One Properties LLC, which licenses the Cellular One brand and promotes the Cellular One service market and related trademarks, service marks and designs.


Dianon Systems Agrees to Pay U.S. $1.5 Million
Health Care | 2007/10/30 11:50
Dianon Systems Inc. has agreed to pay the United States $1.5 million to resolve claims under the False Claims Act that the company mischarged Medicare and TRICARE for certain tests it performed, the Justice Department announced today.

Dianon, a reference lab located in Stratford, Conn., specializes in conducting tests to detect and stage various types of cancer. Doctors obtain tissue or liquid specimens from patients and refer the specimens to Dianon to determine whether they contain cancer cells, and if so, the stage of the disease.

The original suit against Dianon was filed by Dr. James Tiesinga, a pathologist formerly employed by the company. He filed the complaint against the company on behalf of the United States under the qui tam or whistleblower provisions of the False Claims Act. Dr. Tiesinga will receive $300,000 as his share of the proceeds of the settlement.

The complaint alleged that Dianon billed for medically unnecessary tests in that it performed 26 flow cytometry tests on every sample sent to the company for diagnosis regardless of whether all 26 were medically necessary for a particular patient. Flow cytometry tests can be used to measure the amount of DNA in cells.

The investigation and settlement were jointly handled by the Office of the United States Attorney for the District of Connecticut and the Justice Department’s Civil Division, with the assistance of the Office of Inspector General for the Department of Health and Human Services, the U.S. Defense Criminal Investigative Service, and the Federal Bureau of Investigation.


Helms Mulliss & Wicker Receives Top Ranking
Law Firm News | 2007/10/30 10:20
Helms Mulliss Wicker, PLLC, (HMW) announced today that it won the top ranking, “Highly Recommended,” in the debut issue of Benchmark: Litigation, The Definitive Guide to America’s Leading Litigation Firms and Attorneys.

HMW received the top ranking as a result of the firm’s success in several recent engagements in which it represented clients including Bank of America, BASF, and SAS Software in commercial or trade secrets litigation. The litigation group’s work on the Lowe’s Motor Speedway pedestrian bridge collapse litigation and Duke University Health System’s surgical sterilization litigation was also recognized.

Benchmark: Litigation also cited five members of the firm’s litigation group for excellence. Peter J. Covington, firm chairman, Douglas W. Ey, Jr., litigation practice area leader, members Jonathan E. Buchan, Jr. and L.D. Simmons II and E. Osborne “Ozzie” Ayscue Jr., the firm’s senior trial lawyer, were highlighted in the review.

“We are honored that a respected publisher of international legal journals highly recommends our firm,” said Covington. “This recognizes our litigation group’s experience and excellence, which allow us to address critical client needs and exceed client expectations.”

Benchmark: Litigation drew on Legal Media Group’s extensive database of contacts, conducting extensive face-to-face interviews with leading legal professionals, in-house counsel, judges and business owners. To be listed in Benchmark: Litigation, a firm needed to be consistently mentioned by peers and clients. To achieve the ranking of “Highly Recommended,” a firm needed to be mentioned most often and defined as being definitively dominant in their particular jurisdiction.

For more information on HMW’s litigation practice, visit www.hmw.com.

About Helms Mulliss & Wicker:
HMW is recognized as one of America’s Best Law Firms by Corporate Board Member magazine, ranked as a Top Ten Bond Counsel by The Bond Buyer, ranked Highly Recommended in Benchmark :Litigation, The Definitive Guide to America’s Leading Litigation Firms and Attorneysand is named a Go-To Law Firm by Corporate Counsel magazine. The firm is comprised of 145 lawyers, 20 who are designated Super Lawyers in the 2007 North Carolina Super Lawyers magazine and 21 who are recognized as Best Lawyers in America. HMW focuses on three practice areas: commercial litigation, complex finance and corporate law. Within these practices, specialty areas include: government relations, securities, mergers & acquisitions, employer services, private equity and others. The firm represents Fortune 100 companies and the nation’s largest financial institutions as well as many high-growth and start-up companies. Helms Mulliss & Wicker maintains offices in Charlotte, Raleigh and Wilmington, NC. For additional information, visit www.hmw.com.


Ulmer & Berne LLP Adds Three New Associates
Law Firm News | 2007/10/30 10:14
Ulmer & Berne LLP announced today the addition of three new associates to the Firm. LaDavia Hatcher and Reem Shalodi joined the Firm’s Cleveland office while Dacia Crum joined the Firm’s Cincinnati office.

“We are pleased to be adding these very talented individuals to Ulmer & Berne,” stated Larry Pollack, the Firm’s recruiting partner. “They all previously were summer associates for the Firm, and we know they are hardworking, bright individuals.”

Dacia Crum earned her J.D. from the University of Cincinnati (2007) while being heavily involved in the Black Law Students Association. She earned her B.A., with honors, from the University of Michigan (2004).

LaDavia S. Hatcher earned her J.D. from Cleveland-Marshall College of Law (2007) while being heavily involved with the Midwest Region Executive Board of the Black Law Student Association. She earned her B.S. from Miami University (2004).

Reem Shalodi earned her J.D., summa cum laude, from Cleveland-Marshall College of Law (2007). She was the senior editor of the Cleveland State Law Review. Ms. Shalodi received her B.A. from Ohio University (2002).

Ulmer & Berne LLP, established in 1908, is one of Ohio’s largest law firms. The Firm was recently recognized in The BTI Consulting Group’s most recent survey of corporate counsel as one of only 85 firms nationally that “delivers the best value for the dollar.” Also, in a survey of Fortune 500 companies by Corporate Counsel magazine, Ulmer & Berne has been chosen as a Go-To Law Firm® for both 2007 and 2008. Less than one-half of one percent of all the law firms in the US and abroad received this distinction.

A full-service Firm with 180 attorneys in Cleveland, Columbus, Cincinnati and Chicago, Ulmer & Berne represents publicly traded and privately held companies, financial institutions, pharmaceutical companies, family businesses, international joint ventures and affiliations, investor groups, start-ups and emerging businesses, public bodies and nonprofit organizations. For more information, visit www.ulmer.com.


Judge Refuses To Block Moment Of Silence, For Now
Breaking Legal News | 2007/10/29 11:54
An atheist who's challenging a new state law that mandates a moment of silence in Illinois schools before the start of each school day has lost his first battle but,is still waging his war. The latest on the story from WBBM's Regine Schlesinger.
        
Atheist Rob Sherman and his daughter Dawn, 14, went before U.S. District Judge Robert Gettleman asking the judge to bar Buffalo Grove high school from implementing the new law tomorrow.  Judge Gettleman denied the motion but, held out the possibility he might still issue a statewide injunction at some future point. 

Sherman argues the law is intended to inject religion in the public schools even though it's worded as a time for prayer or reflection.  He says his daughter is being robbed of valuable time.

While denying the injunction Judge Gettleman indicated he has serious reservations about the law. The next hearing is scheduled for November 14th.


Black Lawyers Rare at Supreme Court
Law Center | 2007/10/29 11:47
Coming soon to the Supreme Court: a rare appearance by a black lawyer. More than a year has passed since a black lawyer in private practice stood at the lectern in the elegant courtroom and spoke the traditional opening line, "Mr. Chief Justice and may it please the court." Drew Days III, solicitor general in the Clinton administration, planned on Monday to argue a case on behalf of a shuttered brokerage firm that is seeking to recover $4.5 million in losses. Days, who splits his time between the Morrison & Foerster firm and Yale Law School, is one of the few black lawyers who regularly represent clients at the high court.

"Not many lawyers of color end up in the Supreme Court and most of those who do are in the area of civil rights litigation," said Robert Harris, who argued once before the court in his career as a lawyer for Pacific Gas and Electric Co.

"We don't have as many of those cases as we used to so clearly that opportunity is not there for many African-American lawyers," said Harris, who is black.

Although the Supreme Court does not keep racial breakdowns of lawyers who argue before the justices, records indicate that the first black to appear before the justices was J. Alexander Chiles in 1910.

Long before he became a judge, Thurgood Marshall regularly argued civil rights cases at the Supreme Court in the 1940s and 1950s. Marshall was a rarity in those years of segregation, a black lawyer in an otherwise white world.

Under President Lyndon Johnson, he was the first black to be solicitor general, the Justice Department's top Supreme Court lawyer. Since then, two other black men — Days and Wade McCree — have held that job.

Two black men, Marshall and Clarence Thomas, have been Supreme Court justices.

Several factors account for the dearth of minorities at the court: continuing problems in recruiting and retaining blacks and other minorities at the top law firms; the rise of a small group of lawyers who focus on Supreme Court cases; the decline in civil rights cases that make it to the high court; and the court's dwindling caseload.

"It breaks my heart. It's the minority pipeline, the dwindling caseload, all of these things," Days told The Associated Press.

Days said he, too, has trouble attracting black lawyers to his firm. He recounted how he lost out to a philanthropic foundation over the services of a former clerk for a Supreme Court justice.

Two recent studies point up the trends. Of 46 Washington law offices with more than 100 attorneys, 28 reported that less than 3 percent of their partners are black. Seven firms had no black partners, according to a report by Building a Better Legal Profession, a group of law students who compiled data provided by the firms.

Morrison & Foerster's Washington office, where Days works, has just two black partners, although that placed the firm fourth in the Washington rankings at 5.6 percent. Blacks are better represented among associates at these firms.

Two-thirds of minority lawyers leave their firms within the first four years of practice, generally too short a period in which to make partner, the American Bar Association has said.

Nationally, about 5 percent of law firm partners are black, a number that has crept higher over the past 30 years. Partners typically share in firms' profits or losses, while associates are employees.

At the same time, a fairly small circle of lawyers controls more and more of the court's caseload even as the number of cases the justices accept is going down, Georgetown University law professor Richard Lazarus argues in a study.

This "increasing domination is evidenced by the rising percentage of oral advocates appearing more than once within a single term, a feat most typically accomplished only by attorneys within the Solicitor General's Office," Lazarus said. The study will be published soon in the Georgetown University Law Journal.

A case in point is Carter Phillips, managing partner of the Sidley Austin firm's Washington office. Phillips has argued 54 cases at the court in his career, more than all but three lawyers who continue to practice. Next month he will argue two cases in one week.

With his 24th oral argument approaching, Days seems to be the only active black lawyer with a high number of cases before the Supreme Court, Lazarus said.

The rise of an elite corps of Supreme Court lawyers rankles others in the profession who say the court regulars solicit their clients once the justices decide to hear a case.

"It perpetuates a little club and denies a lot of lawyers the opportunity to present their case, and it is their case, to the highest court in the land," said Gary LaFayette, a black lawyer from San Francisco who won his only argument in 2002 on behalf of the Oakland Housing Authority.

Harris, who recently retired as a PG&E vice president, said his moment of glory at the court was "highly unusual and not likely to be repeated." He won the case in which the utility argued that it should not be forced to allow consumer groups to put messages in monthly billing envelopes.

Even more than 20 years ago, he said, "You can imagine that it was not a foregone conclusion that I, a young African-American lawyer, would argue the case."



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