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Ex-Goldman Sachs Worker Pleads Guilty
Breaking Legal News | 2007/08/29 08:35

A former Goldman Sachs analyst pleaded guilty Tuesday to conspiracy to commit securities fraud and insider trading, admitting he participated in a scheme that helped earn more than $6.7 million. Eugene Plotkin, 28, entered the plea in federal court in Manhattan and apologized for his actions.

"Words can't express how sorry I am for the harm I have caused to others, especially my family," Plotkin said.

Plotkin was charged in 2006 in a scheme that involved David Pajcin, another Goldman Sachs analyst, and Stanislav Shpigelman, who met Plotkin in college and worked as an analyst at Merrill Lynch & Co. Inc.'s mergers and acquisitions division.

Assistant U.S. Attorney Helen Cantwell said the trio conspired on some of the most innovative and complicated insider-trading schemes since those of the 1980s.

In one instance, a New Jersey grand juror leaked information so Plotkin and Pajcin could learn details of an investigation of accounting fraud accusations against Bristol-Myers and several of its executives.

In a second plot, Pajcin and Plotkin arranged for a man to become a forklift operator at a printing plant so he could steal early copies of a market-moving column in BusinessWeek magazine.

Prosecutors say Shpigelman provided Plotkin and Pajcin with information on deals to give them an advantage in their trading.

In exchange for information on six different pending mergers or acquisitions, Shpigelman received cash and promises of future payments based on a percentage of profits, authorities said.

Although the charges carry a potential maximum prison term of 165 years, Plotkin signed a plea agreement in which he promised not to appeal any sentence between four years and nine months and five years and 11 months in prison.



Amgen says court backs one patent claim vs. Roche
Patent Law | 2007/08/29 08:33

Amgen Inc said on Tuesday a federal court has ruled that a Roche Holding AG product infringes on an Amgen anemia drug patent, and its shares rose 2.5 percent. A trial on other Amgen claims that Roche infringed patents covering its anemia products is set to begin in U.S. Federal District Court in Boston on Sept. 4.

Amgen's anemia franchise, which brought in $6.6 billion in sales last year, has been under siege due to safety concerns and a pullback in coverage by the U.S. agency that oversees Medicare and Medicaid.

Tuesday's ruling was good news for Amgen, but Roche said there was still a long way to go in their dispute.

"While we disagree with the Judge on the matter of infringement, the ruling does not determine the ultimate validity of any Amgen patents," Roche said.

If approved, Roche's Mircera would compete with Amgen's blockbusters Epogen and Aranesp and Johnson & Johnson's (JNJ.N: Quote, Profile, Research) Procrit.

The drugs belong to a class known as erythropoiesis-stimulating agents, which are used to boost red blood cells in anemia patients to help avoid the need for blood transfusions.

Thousand Oaks, California-based Amgen has been fighting the Roche drug on several legal and regulatory fronts, alleging it infringes Amgen patents.

Roche has argued its drug is different, claiming Mircera is longer lasting than other available anemia drugs.



Census : 47 Million Americans Without Health Insurance
Health Care | 2007/08/29 08:32
A report by the US Census Bureau this week shows that household income is up, the poverty rate is slightly down for the first time this decade, but the number of people without health insurance went up by 0.5 per cent to reach 47 million in 2006.
The Income, Poverty, and Health Insurance Coverage in the United States: 2006 report draws on information collected in two surveys: the 2007 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC).

There has been a strong reaction to the report, with the presidential elections coming up next year, the New York Times describes it as a "presidential candidate's gold mine", with the main focus being on the fact that 47 million Americans still have no health insurance and the proportion of children with no health insurance has risen, with the poorest children the most likely to be uninsured.

This has boosted calls by many candidates to bring more people into the government scheme. Recently the government based schemes have received wide support in Congress even though President Bush has promised to veto any legislation that expands them.

Bush chose to highlight the fact the report shows American household income is rising and poverty is going down albeit only slightly and only for the first time this decade. He conceded however that there remains a challenge to reduce the number of Americans without health insurance, choosing to stress that the best route to this is to make it more affordable rather than bring more into the government scheme.

According to the report, real household income in the US rose by 0.7 per cent from 47,845 dollars in 2005 to 48,201 dollars in 2006 (based on the median figure, a kind of average that pinpoints the middle of the range from the highest to the lowest). This is the second consecutive year the figure has gone up.

This is in contrast to the decrease in real median earnings of both men and women who work full time all year round. This went down in 2006 compared to 2005 by 1.1 and 1.2 per cent respectively. The downward trend in real median earnings for this group has now gone down three years in a row.

Women are still earning less that men on average and the ratio of female to male earnings stayed at 0.77 between 2005 and 2006. This figure hovered at around 0.6 from 1960 to 1980 and climbed steadily in the 25 or so years since.

In terms of income per head of the population, this went up between 2005 and 2006 for all race groups and Hispanics, with Asians showing the largest increase.

The official poverty rate has fallen from 12.6 per cent in 2005 (37.4 million people) to 12.3 per cent in 2006 (36.5 million). This is the first time it has fallen this decade.

More recently, in 2000 the poverty rate stood at 11.3 per cent, then rose to 12.1 and 12.5 per cent in 2002 and 2003.

The poverty rate and numbers in poverty for the under 18s have remained statistically unchanged between 2005 and 2006 (17.4 per cent and 12.8 million), as they have for the 18 to 64 year olds (10.8 per cent and 20.2 million). However there is better news for seniors, both the poverty rate and the number in poverty have gone down for the over 64 year olds, from 10.1 per cent (3.6 million) in 2005 to 9.4 per cent (3.4 million) in 2006.

The income and poverty estimates do not include the value of non cash benefits such as food stamps, Medicare and Medicaid, public housing and fringe benefits from employers. Alternative measures of income and poverty that show the effect of taxes and certain non cash benefits will be published later said the report.

Both the percentage and number of people without health insurance coverage went up from 15.3 per cent in 2005 (44.8 million) to 15.8 per cent (47 million) in 2006. This figure has been rising gradually by one or two tenths of a per cent for the last 20 years according to the graph shown in the report.

Within these figures, the proportion covered by employment based schemes went down from 60.2 per cent in 2005 to 59.7 per cent in 2006, as did the proportion covered by government schemes which decreased from 27.3 per cent in 2005 to 27.0 per cent in 2006.

The percentage and number of children under 18 who are not insured has gone up from 10.9 per cent (8.0 million) in 2005 to 11.7 per cent (8.7 million) in 2006. With 19.3 per cent of children in poverty having no insurance, this puts the chances of a child in poverty of having no health insurance at a higher rate than all children in the population.

However, the number of people with health insurance also went up from 249.0 million in 2005 to 249.8 million in 2006, which is possible at the same time as the rise in numbers without health insurance because the US population is expanding.

Within these figures there are variations across demographic groups. For instance, the median incomes of white households went up in 2006 compared to 2005, but stayed the same for other races and Hispanics. The poverty rate went down for Hispanics, but remained the same for non-Hispanic Whites, Blacks and Asians. The proportion of people with no health insurance went up for Hispanics, down for Asians and stayed the same for non-Hispanic Whites and Blacks.

Also published this week is the 2006 American Community Survey (ACS), which covers states and metropolitan areas, counties, cities and American Indian/Alaska Native areas with populations of 65,000 or higher, and all congressional districts. And for the first time the report covers groups such as prisoners, students living in college dorms, serving men and women living in military barracks and residents of nursing homes.


Lerach to Leave Law Firm Aug. 31.
Legal Careers News | 2007/08/29 07:37
Pioneering class-action attorney William S. Lerach said Tuesday that Aug. 31 will be his last day at the firm that bears his name. Lerach has been dogged by a seven-year investigation by federal prosecutors in Los Angeles into allegations that his former law firm in New York paid people to sign on as plaintiffs. In June, Lerach Coughlin Stoia Geller Rudman & Robbins LLP said that Lerach would leave the San Diego-based firm by the end of this year to focus on fighting the allegations and to allow the new firm to move out of the shadow of the investigation.

"We decided this was going to happen some time ago, and Labor Day seemed like a good time to do it," Lerach, 61, said in an interview. "I've worked a lifetime and a half and achieved what I wanted to achieve."

The famously mop-haired attorney declined to comment on the investigation.

Lerach's previous firm, Milberg Weiss Bershad & Schulman, was indicted in May 2006 by a federal grand jury in Los Angeles. Prosecutors allege the firm secretly paid more than $11 million in kickbacks to get people to take part in shareholder lawsuits, allowing its lawyers to be among the first to file lawsuits on behalf of shareholders and secure the lucrative position as lead plaintiffs' counsel.

The firm now known as Milberg Weiss and a former partner, Stephen Schulman, have pleaded not guilty to fraud and conspiracy charges and are scheduled to be tried in January 2008.

Another former partner, David Bershad, pleaded guilty to conspiracy in July and will be sentenced early next year. Former physician Steven G. Cooperman also pleaded to a federal conspiracy charge for his role in the alleged kickback scheme.

Lerach has not been charged.



Storm builds around Idaho senator's arrest
Breaking Legal News | 2007/08/29 06:30

Idaho Sen. Larry Craig isn't sticking to the script about how sex scandals play out in the nation's capital. In fact, he's following it backward. The rich history of powerful figures accused of misbehavior shows they tend to deny it indignantly, try to ride out the storm with tortured explanations, then give in to contrition if cornered. Not Craig. First, an admission of guilt; now, a defiant protestation of innocence.

Seeking to salvage his reputation and quell a media storm stirred by his guilty plea to disorderly conduct charges, the Republican senator Tuesday denied making a sexual advance to an undercover officer in a Minneapolis airport men's room two months ago.

"I am not gay and never have been," Craig declared at a Boise news conference with his wife, Suzanne, at his side.

But even as he denied making an advance, the case sent shock waves through Republican circles. Senate Republican leaders called for an ethics investigation and vowed to consider other sanctions.

Former Massachusetts Gov. Mitt Romney, whose Idaho presidential campaign was headed by Craig until the charges came to light, compared the senator's behavior to former President Clinton's encounter with a White House intern and to former Rep. Mark Foley, R-Fla., who resigned last year in a scandal involving male House pages.

The charge grew out of a June 11 incident at Minneapolis-St. Paul International Airport in which an officer investigating lewd-conduct complaints about activity in the restroom arrested Craig for allegedly making a sexual advance. The arrest and the senator's Aug. 1 guilty plea became public Monday, when they were reported by the Capitol Hill newspaper Roll Call.

Craig, 62, was ordered to pay $575 in fines and fees and given one year's probation. A sentence of 10 days in the county workhouse was stayed.

At the news conference, Craig, a leading voice on issues affecting the West and a consistent opponent of gay-rights legislation, apologized for his handling of the incident, saying he regretted his guilty plea.

He said he had retained a lawyer to review the plea, although he signed court papers declaring he had read the police report and understood the nature of the crime and paid the fine — which defense experts said would make a challenge difficult.

Craig said he pleaded guilty because his hometown newspaper, The Idaho Statesman, had been conducting an eight-month investigation into his sexual orientation. He said he hoped that resolving the case quietly — without telling his family, friends, staff or colleagues — would settle the matter without bringing it to light for what he called the newspaper's "witch hunt."

"I overreacted in Minneapolis, because of the stress of The Idaho Statesman investigation and the rumors it has fueled around Idaho," said Craig, who took no questions.

Craig has confronted sexually related accusations before. In 1982, he denied involvement in a congressional-page sex scandal.

The Statesman on Tuesday reported on rumors that Craig had engaged in restroom sexual encounters with other men. The newspaper began its inquiry after a gay activist blogger, Mike Rogers, published a claim that Craig had sex with men. Rogers cited anonymous sources.

The Statesman quoted an anonymous man who claimed he had sex with Craig in a restroom at Union Station in Washington, D.C. The newspaper, which interviewed 300 people, described other allegations but did not name those who made them.

In a May interview that the newspaper published Tuesday, Craig denied having had gay sexual encounters and specifically denied restroom encounters.

"I'm going to have to leave it up to other people to weigh the care we took. I'm a bit disappointed" with Craig's complaints, said Vicki Gowler, the newspaper's top editor. "We were quite responsible, and we took great care with the story."

Craig already was under pressure from Republicans to give up the seat he has held since 1991 rather than risk handing Democrats what has been a safe seat. He said he'll announce next month whether he will seek re-election.

Pressure accelerated Tuesday. The mug shot from Craig's arrest was broadcast on CNN accompanied by a headline: "Senator's Bathroom Bust." The Drudge Report went with the headline "Brokeback Bathroom." And the detailed arrest report was available on the Internet.

Greg Smith, an Idaho pollster who has worked for Craig, said it was "almost certain" the senator would not seek re-election.

David Adler, a political-science professor at Idaho State University, noted that GOP leaders would be unlikely to support any interest Craig might have in trying to hold his seat "since they would fear losing a seat that has been safe for so long."

Adler said Craig's swift resignation as co-chair of Romney's presidential campaign in Idaho provides a "good measure of the fever that has been inflicted."

Patrick Sammon, president of the Log Cabin Republicans, the largest organization for gays in the GOP, said Craig's ability to continue serving is "in serious doubt."

If Craig resigns, Republican Gov. C.L. "Butch" Otter will appoint a successor, most likely a Republican, to serve the remainder of the term.

A former Democratic congressman, Larry LaRocco, is campaigning to replace Craig. LaRocco was elected to the House in 1990 but lost the seat in the 1994 GOP takeover.

LaRocco said he believes a Democrat can win even though none has been elected to the Senate from Idaho since Frank Church, who lost the seat in 1980. "People are in a plate-throwing mood out here, regardless of what happened with Larry Craig," LaRocco said.

Craig now is fighting a multifront battle, first and foremost a longshot bid to undo his guilty plea and the likely ethics probe, while also trying to shore up support among constituents should he decide to seek a fourth six-year term.

In his guilty plea, according to court records, Craig acknowledged engaging in physical "conduct which I knew or should have known tended to arouse alarm or resentment of others." Criminal-defense lawyers said it would be difficult for the senator to have the case reopened.

Successful motions to withdraw guilty pleas usually meet a high threshold, such as showing the person was misled into entering the plea, his constitutional rights were violated or there was wrongdoing by prosecutors, Minneapolis criminal-defense lawyer Peter Wold said.

But Craig's written plea specified the charges related to the airport incident, that he knew the judge couldn't accept a guilty plea from a person who felt he was innocent and that he was making no claim of innocence.

If he's successful in overturning his plea, Craig likely will have to face a public trial, Wold said.



McGraw Hill's Bahash Faces Purported Suit
Legal Business | 2007/08/29 05:42

O'Rourke Katten & Moody said it filed a lawsuit against McGraw-Hill Cos.'s chief financial officer Robert J. Bahash on behalf of shareholders who bought the company's common stock between July 25, 2006 and Aug. 15. The law firm alleged that Bahash violated federal securities laws and that his misleading statements or omissions concerning the company's business and operations, particularly that its Standard & Poor's unit assigned "excessively high" ratings to bonds backed by subprime mortgages, artificially inflated its stock.

McGraw-Hill is a New York-based financial and education information services company. McGraw-Hill had no immediate comment because it said it wasn't aware of the suit.



Teacher pleads guilty to having sex with student
Criminal Law | 2007/08/29 05:36
A former Cyprus High School teacher admitted Tuesday to having sex with one of her students. Christy Brown, 33, pleaded guilty as charged to three counts of forcible sexual abuse, all second-degree felonies. Brown faces up to 30 years in prison when she is sentenced Oct. 19 by 3rd District Judge Stephen Henriod. She had sexual relations with the boy - who was 17 and one of her English students - on at least three occasions between April 8 and July 8, according to charging documents.

Brown was arrested early on July 8 after a West Valley City police officer found her and the student parked near 2900 South and 5600 West.

Brown, who taught for two years at the school, quit her job on June 1 because she planned on moving to Houston for a new teaching job, according to school officials.


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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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