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Stull, Stull & Brody Announces Class Action
Class Action | 2007/10/26 01:05

Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of Aetna Inc. ("Aetna" or the "Company") (NYSE: AET) between October 27, 2005 and April 27, 2006, inclusive (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Aetna securities through your Aetna retirement account and have information or would like to learn more about these claims, please contact us.

The Complaint charges Aetna and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that during the second half of 2005 Aetna touted its expanding membership rolls as a primary reason for an increase in operating income.

During the Class Period, defendants misrepresented or failed to disclose the rise in Aetna's medical cost ratio ("MCR"), which is the percentage of dollars a company spends on healthcare, including physician reimbursement, and is the key number for health plans in terms of their level of profitability. Unbeknownst to investors, however, from at least as early as September 2005 defendants had in their possession information that contradicted, or rendered false, statements made by the defendants throughout the Class Period.

On April 27, 2006, the Company shocked the market when it disclosed a rise in its MCR relative to the prior year. This higher MCR coupled with large membership growth meant that the Company was under-pricing its health plans in order to speed up enrollment. This fact, which the defendants knew by September 2005, was conspicuously absent from defendants' public disclosures between October 27, 2005 and April 27, 2006. From April 26, 2006 to April 27, 2006, Aetna's shares fell from $46.43 per share to $37.00 per share, a decline of $9.43 per share, or more than 20 percent, representing a loss in market capitalization of $5.4 billion.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Aetna securities during the Class Period, which is between October 27, 2005 and April 26, 2007, inclusive. If you purchased or otherwise acquired Aetna securities during the Class Period, and either lost money on the transactions or continue to hold the securities, you may wish to serve as a lead plaintiff. If you purchased Aetna securities during the Class Period, you may request that the Court appoint you as lead plaintiff by no later than December 24, 2007.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the proposed lead plaintiff's claims are typical of the claims of the other class members, and that the proposed lead plaintiff will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.



Vonage settles patent dispute with Verizon
Patent Law | 2007/10/25 16:25



Vonage Holdings said late Thursday it has settled its patent dispute with Verizon Communications.

Vonage said the terms of the resolution depend on how the Court of Appeals decides its pending petition for rehearing regarding two of the Verizon patents.

If Vonage wins rehearing on either patent or if the injunction is vacated, Vonage said it will pay Verizon $80 million.

If Vonage does not win a rehearing, or if the stay is lifted reinstating the injunction, Vonage will pay Verizon $117.5 million.

In March 2007, a jury found that Vonage was infringing three valid Verizon patents and awarded $58 million in damages.

The trial judge subsequently issued an injunction which was stayed pending Vonage's appeal.

In September, the U.S. Court of Appeals for the Federal Circuit upheld the trial court's decisions on infringement, validity and injunction as to two of the Verizon patents and remanded as to the third patent.

Vonage said it filed a petition for rehearing which is pending in the Court of Appeals.



House Fails to Overcome Veto on Health Bill Vote
Labor & Employment | 2007/10/25 16:24

Once again defying a veto threat from President Bush, the House this afternoon passed a new bill to provide health insurance for 10 million children, but not by a margin large enough to override a promised veto. The vote was 265 to 142, or 7 votes short of the two-thirds needed to override a veto. Forty-three Republicans joined 222 Democrats in voting for the bill. Speaker Nancy Pelosi of California implored members to vote for the bill, declaring that it "has the support of the American people."

But the Republican minority leader, John A. Boehner of Ohio, said late revisions to the bill were "window-dressing rather than substantive changes."

Throughout hours of debate, several Republican opponents of the legislation said its supporters were trying to ram it through while much of the California delegation was back home because of the wildfires in their state. Ten of the 26 members who did not vote today are from California, and 8 of the 10 are Republicans.

A week ago, President Bush's veto of the original bill was sustained, as the 273-to-156 vote in support of the bill was 13 short of the toll needed to overturn the veto. Forty-four Republicans voted then to override the veto, and the suspense before today's vote was whether the bill's supporters would convert any Republicans. But only 43 Republicans voted for the bill today.

"It's unfortunate that even after a week of meetings and adjustments to the bill at the Republicans' request, they would still apparently prefer to play politics instead of reauthorizing a program the vast majority of the country supports," Representative Rahm Emanuel of Illinois, chairman of the House Democratic Caucus, said after today's vote. "Once again, Republicans have chosen partisanship over pediatrics."

The Senate will probably approve the revised bill next week. There is a veto-proof majority in favor of the bill in the Senate, but today's vote in the House, as well as last week's, signal that it will sustain Mr. Bush's veto again.

If that happens, Democrats said, they may extend the existing insurance program for children through next summer. They would then schedule another vote on the issue in September or October, in the hope of inflicting maximum political damage on Republicans just before the 2008 elections.

Two prominent Republican senators who generally side with the White House, Orrin G. Hatch of Utah and Charles E. Grassley of Iowa, expressed disappointment after this afternoon's vote, underscoring how the children's insurance issue cuts across party politics.

"It's a shame that this legislation, which is even stronger than the compromise legislation passed earlier this month, did not secure a veto-proof majority of support from members of the House of Representatives," Mr. Grassley said.

Mr. Hatch called today's outcome "a lost opportunity for America's low-income, uninsured children" and said he was dismayed that the issue had become such a political battle. "As a result, low-income children will continue to be uninsured," he said. "That is a shame."

The new bill, like the one vetoed by Mr. Bush on Oct. 3, would cost $60 billion over five years, an increase of $35 billion over the current level of spending.

Supporters of the new bill said it addressed all the major concerns that prompted Republicans to oppose an earlier version. The new bill, they said, would end coverage of adults, ban coverage of illegal immigrants and generally prohibit states from covering children in families with incomes above three times the poverty level, or $61,950 for a family of four.

Speaker Pelosi said the restrictions on adults, immigrants and high-income families were clear in the first bill, and "they are even clearer in the second bill."

For the cost of just 41 days of the Iraq war, Democrats said, the government could finance a full year of health care for 10 million children.

But President Bush said his concerns had not been addressed "in a meaningful way," and many Republican lawmakers said the changes were illusory.

"The bill puts lipstick on a sow," said Representative Thomas M. Reynolds, Republican of New York. "Today is raw politics — trotting out a vote just for the sake of a vote."

Representative Ginny Brown-Waite, Republican of Florida, said the State Children's Health Insurance Program would still be a "magnet for illegal aliens." Representative Mike Rogers, Republican of Michigan, said that rich children could still qualify for benefits because states, in determining eligibility, could ignore or disregard part of a family's income.

Representative Tom Price, Republican of Georgia, said the bill still called for a "a massive tax increase" The federal excise tax on cigarettes would be increased to $1 a pack, up 61 cents from the current level.

And Representative Pete Sessions, Republican of Texas, said that under the new bill, as under the original, two million people would lose private health insurance coverage and enroll in the expanded government program.



Radian Group Says It Has a Strong Capital Position
Insurance | 2007/10/25 16:20

Radian Group Inc. (NYSE: RDN) issued a statment following recent volatility in the financial markets, which has affected its stock price.

The company said, "the company has a strong capital position and balance sheet. We believe actions taken during the third quarter, including the sale of the Sherman interest for approximately $278 million and the draw down of $200 million of the $400 million revolving credit facility, provide the company with financial flexibility and adequate liquidity for the long term."

Radian Group will report third quarter results on November 1st.

Shares of Radian Group sank 23.6% today to a new 52-week low. The stock closed at $9.99 today. A dividend cut from competitor MGIC Investment Corp. (NYSE: MTG) expanding the decline.



Court grants reprieve to Alabama death-row inmate
Breaking Legal News | 2007/10/25 10:12
A U.S. court granted a stay of execution to a convicted killer set to be put to death in Alabama on Thursday, the latest such move since the U.S. Supreme Court agreed to hear a challenge to lethal injection. The U.S. 11th Circuit Court of Appeals on Wednesday overturned a decision by a lower court to proceed with the execution of Daniel Lee Siebert, 53.

"We stay his execution pending the Supreme Court's resolution of Baze vs Rees," the court said, referring to the high court's decision last month to review whether lethal injections cause unacceptable pain.

Siebert's lawyers had argued that the drug combination used for lethal injection might interact with his medication for pancreatic cancer and hepatitis C and cause undue pain.

Siebert was convicted of the 1986 strangling deaths of Sherri Weathers, her two young sons and Weathers' friend Linda Jarman. Also convicted of murdering another woman, Siebert claims to have murdered others in various U.S. states.

Bryan Stevenson, director of the Equal Justice Initiative, which helped bring the suit on Siebert's behalf, said: "It would grossly inappropriate to carry out executions that may soon be declared unconstitutional by the Supreme Court."

Louella Kelley, Jarman's sister, lamented the ruling. "He's beaten the system again," she said in an interview. "He got himself educated in law while he's been in prison and his lawyers are very, very good. But all along he's been smarter than our justice system."

Alabama Gov. Bob Riley had said on Monday the execution would go ahead. It would have been the first since the beginning of a "creeping moratorium" that has halted executions in at least six U.S. states. 



Court Denies Ex-Gov. Ryan a New Hearing
Breaking Legal News | 2007/10/25 07:05
A federal appeals court refused Thursday to grant former Gov. George Ryan a fresh hearing on his racketeering and fraud conviction. "We agree that the evidence of the defendant's guilt was overwhelming," the 7th U.S. Circuit Court of Appeals said in a 15-page opinion. Ryan already had lost his bid to have his April 2006 conviction reversed by a three-judge panel of the appeals court. But he had sought to have the case considered again by all the sitting appeals judges.

In a 6-3 split decision, the court refused to grant Ryan or co-defendant Larry Warner the so-called "en banc" hearing.

Ryan, a Republican who gained national prominence as governor for his opposition to the death penalty, was sentenced to 6 1/2 years in federal prison after his conviction. But the sentence had been put on hold and he remained free while the request for another hearing was pending.

It was not clear from Thursday's ruling whether Ryan would now be required to report to prison. Ryan did not return a message left on his cell phone, and the office of his attorney James R. Thompson said it had had no immediate comment. Thompson, himself a former governor, had said earlier that the case would be fought to the U.S. Supreme Court if necessary.

Ryan was convicted of taking payoffs from political insiders in exchange for state business while he was secretary of state from 1991 to 1999 and governor from 1999 to 2003.

In 2000, Ryan declared a moratorium on executions after 13 Illinois death row inmates were found to have been wrongly convicted. Then, days before he left office, he emptied out the state's death row, commuting the sentences of all 167 inmates to life in prison.

But the federal investigation of the secretary of state's office under Ryan eventually ensnared him. It had been speeded up after six children died in 1994 in a fiery accident involving a truck driver who got his license illegally.

Authorities eventually found that unqualified truck drivers had obtained licenses through bribes. Federal prosecutors began convicting his employees and friends, moving closer and closer to Ryan.

Thursday's order from the six majority judges was just one paragraph long and gave no explanation for their refusal to hold a hearing.

Ryan's request for a new trial cited problems that had surfaced during the jury's lengthy deliberations, including the dismissal of a juror who had allegedly snored and another who failed to disclose her arrest record. His lawyers argued that the questioning of jury panel members about the problems had intimidated them and affected their impartiality. Prosecutors scoffed at the notion.



America's Cup challenge hits court
Court Watch | 2007/10/25 06:07

A New York Supreme Court judge has heard arguments about whether Alinghi, the Swiss team that holds the America's Cup, must meet America's BMW-Oracle 10 months from now in a race between giant catamarans or trimarans. Tom Ehman, an international sailing rules expert from the Detroit area who works for Oracle and has been involved with the America's Cup for 27 years, said that the Swiss are taking that possibility seriously.

"Within hours of the time we issued our challenge, they were on the telephone to the same multihull experts we've been talking to. In fact, for a while there was a kind of bidding war going on," said Ehman, who was one of the people arguing Oracle's case in New York City on Monday. The judge is expected to issue a ruling in two to three weeks.

The Swiss successfully defended the America's Cup off Valencia, Spain, in July and immediately accepted a Spanish yacht club as the challenger of record for a 33rd Cup in 2009.

While other countries can enter, the challenger of record runs the sail-off series to select the boat that will meet the defender in the America's Cup finals and negotiates the ground rules with the defender.

BMW-Oracle has challenged the validity of the Spanish club, saying it doesn't meet the requirements of the 1887 Deed of Gift that sets the basic rules for the America's Cup.

BMW-Oracle's challenge specifies a race in boats with a maximum waterline length and beam (width) of 90 feet. That could only be a huge catamaran or trimaran, which would approach the 50 m.p.h. mark.

Most sailing experts agree that BMW-Oracle is right. The Spanish club was formed only two weeks before the last cup ended, giving it a shaky hold on the requirement that it be an established yacht club. Nor has it held an "annual regatta," as the deed requires.

It's clear that the Spanish club was set up as Alinghi's puppet, in return for which the Swiss agreed to keep the America's Cup -- and the massive tourism dollars it earns -- in Valencia.

The Spanish club is so pliant that it has allowed Alinghi to design a new, 90-foot-waterline boat that would be used in the 33rd Cup in secret. So far, Alinghi has refused to reveal the design parameters to potential challengers, giving the Swiss a head start of several months in the crucial technological challenge of building the fastest boat.

"This is not the best time I've ever had in 27 years with the America's Cup," said Ehman, who is the spokesman for San Francisco's Golden Gate Yacht Club (the official challenging organization) and negotiates with other syndicates as the head of external affairs for BMW-Oracle Racing.

Ehman may have more history with America's Cup controversies than any living sailor. In 1983, when America lost the cup for the first time in 132 years, he was involved with Dennis Conner's Liberty syndicate in the battle over the legality of Australia II's radical wing keel. (The Aussies won.)

And closer to this case, in 1987, he warned the San Diego Yacht Club early on that an unexpected challenge by New Zealand with a 135-foot monohull was probably going to be upheld in court.

He was right, and the Americans met the challenge with a 60-foot catamaran in an event that saw San Diego retain the America's Cup but lose support from sailors in the United States and worldwide over what those sailors viewed as cheating.

"Just about every lawyer I talked to who has read the deed thinks (Alinghi) is wrong. But will they lose in court? You don't know. It's up to a judge, one guy," Ehman said. "After listening to the arguments in court and the judge's questions, I came away even more confident, but you can't be 100% sure."

If the Swiss lose, they can negotiate with the Americans. Ehman said that rather than have two syndicates race giant catamarans, BMW-Oracle would prefer to involve all of the challengers and the defender in selecting a new monohull design for a Cup off Valencia in 2010.

"But if they lose and won't negotiate, then we are ready to build the multihull and race next September. We have a design team and a build facility, and we are ready to push the button," Ehman said. He added, "That wouldn't necessarily be a bad thing for the America's Cup. I think a lot of people would love to watch giant multihulls" dicing around the turn marks at 30-40 miles per hour."

If it comes to a multihull event this time around, the atmosphere toward BMW-Oracle should be much different than it was toward Dennis Conner's San Diego entry in the 1987 debacle.

That's because both Oracle and Alinghi will have equal chances to build the fastest racing yacht ever designed, which could be the key to making the America's Cup a big television draw among non-sailors.



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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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