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Ex-teacher pleads guilty in sex case
Court Watch | 2007/04/25 02:06

The former Brighton Charter Academy teacher accused of fondling one of her students and providing him with alcohol during an overnight trip to Estes Park pleaded guilty Tuesday to three charges.

Carrie McCandless, 29, pleaded to tampering with physical evidence, contributing to the delinquency of a minor and unlawful sexual contact.

Under the plea agreement, McCandless avoids prison, but will serve 45 days in the Larimer County jail. She also will serve a 5 year deferred sentence and will spend time in a sex offender program with intensive supervised probation. A sentencing hearing for McCandless is scheduled for June 8.

"Due to the possible consequences of going to trial and being unsuccessful, Ms. McCandless felt like she was in a position that she had to accept the plea bargain," defense attorney Trent Trani said.

McCandless was charged with sexual assault on a child by one in a position of trust and contributing to the delinquency of a minor.

"There was never any kind of sexual intercourse or anything other than Mr. Clay fondling her," Trani said. "It's ridiculous to assert that she subjected him to this contact and I think that's what should have been heard by a jury."

The victim, Tommy Clay, appeared on national TV last month. Clay said he and McCandless became friends during a summer school session because he found it easy to talk with her.

Clay said when another teacher discovered the relationship, "I told Mrs. McCandless that I would take the fall for it. I didn't want her ending up losing her job and I figured I had a lot less to lose than she did."

She was 29 and Clay was 17 at the time, authorities said. McCandless was fired. Her husband, Chris, is principal of the school in Brighton, on the northeast edge of the Denver area.



Yahoo music hits a new chord with lyric library
Venture Business News | 2007/04/25 01:17

Yahoo! is expanding its online music section by adding lyrics of nearly 400,000 songs.

The company says that with this move, it is hoping to cater to Web surfers looking for a more reliable alternative to Internet sites that publish lyrics without express permission from copyright owners.

Yahoo! says the free service, being unveiled today, is the Web's largest legally licensed database of lyrics.

Apparently, song lyrics available on other Web sites break the law by posting words without approval from publishers and writers.

Yahoo! says by contrast, it is offering the song lyrics in a legal manner. Under the licensing agreement, Yahoo! will share with copyright holders, revenue from the ads that will be displayed alongside the lyrics.

Moreover, the 400,000 song lyrics included in the database of Yahoo! will cover about 9,000 different artists, ranging from golden oldies, 'The Beatles' and 'Bob Dylan' to contemporary song artists like 'Radiohead' and 'Beyonce'. Besides, the songs will come from around 100 music publishers including: BMG Music, EMI Music, Sony/ATV Music, Universal Music, and Warner/Chappell Music.

While other sites claim to have more songs than Yahoo!'s database, Yahoo! is confident its lyrics library will become a hit mainly because there are no pop-ups and other hindrances typically found in the sites that offer lyrics without permission from copyright holders.

In a related development, Yahoo! and Gracenote, a digital media company, have launched an online lyrics service in an effort to combat unauthorized, rogue Web sites.

Craig Palmer, Chief Executive Officer of Gracenote, said that publishers embraced his company's plan to create a lyrics database because they felt lyrics are an untapped resource at a time when consumers are increasingly getting them through various rogue sites.

Ian Rogers, General Manager of Yahoo! Music, said they think they can build a really healthy business for lyrics, and that publishers stand to gain significantly from this new revenue stream. With the popularity of lyrics on the Internet, advertisers want to be there too.



McCullough quits County Council race, leaves law firm
Legal Business | 2007/04/25 00:17

Upper St. Clair attorney Charles McCullough, under scrutiny for his management of a widow’s trust fund, has dropped out of the race for an at-large Republican seat on Allegheny County Council, his former campaign coordinator said today.

McCullough also no longer works for Downtown law firm Eckert, the firm’s CEO, Tim Ryan, confirmed this afternoon.

"He is not employed by, nor associated with, Eckert Seamans," said Ryan, who declined further comment.

Ryan said the firm is still examining how McCullough helped manage a fund for Shirley H. Jordan, 90, of Upper St. Clair, that donated $10,000 each to a judicial candidate, three council members and a Catholic charity headed by McCullough's wife. The money was returned after the recipients learned that Jordan suffers from dementia.

McCullough was running against Republican Kevin Acklin for the council seat.



Barrett Prettyman Jr. honored by Legal Aid Society
Law Firm News | 2007/04/24 16:36





Hogan & Hartson LLP lawyer E. Barrett Prettyman Jr. was honored by the Legal Aid Society of Washington, D.C. with its Servant of Justice Award. The Servant of Justice award recognizes individuals who have demonstrated a daily commitment to ensuring the provision of legal services and equal justice to all District of Columbia residents. The award was presented to Prettyman by Senator John Warner at Legal Aid Society's 18th Annual Award Dinner on April 17 in Washington, D.C. The event also celebrated the organization’s 75th anniversary.

Prettyman was recognized for his life-long dedication to increasing availability and access to pro bono services. As the first president of the D.C. Bar, Prettyman was an early advocate for pro bono legal assistance, establishing such services as a priority to which every successive D.C. Bar president has since adhered. He has personally devoted extensive time and effort to pro bono legal representations. Prettyman has represented clients in appellate litigation matters throughout his career, including arguing 19 cases before the Supreme Court.

S. White Rhyne, former president of the Legal Aid Society, also was honored at this event.


Sidley Austin LLP to Open Office in Australia
Law Firm News | 2007/04/24 11:50






Sidley Austin LLP announced that it will open an office in Sydney, New South Wales, Australia in May 2007.  At that time Bob Meyers, currently the managing partner of the Sydney office of Pillsbury Winthrop Shaw Pittman, will join the firm as partner, resident in Sydney. With existing offices in Tokyo, Hong Kong, Beijing, Shanghai and Singapore, the Sydney office will be the sixth Sidley office in the Asia Pacific region.

Mr. Meyers is one of the leading US legal advisers to Australian companies and Australian and international investment banks on US and international capital raisings and stock exchange listings, cross-border mergers and acquisitions, structured finance and M&A transactions.

Tom Cole, Chair of the firm’s Executive Committee, noted “Our decision to open an office in Sydney and the recruitment of Mr. Meyers demonstrates our commitment to serving our clients throughout the world.”

Tom Albrecht, a member of the firm’s Executive and Management Committees with responsibility for International operations, noted “For over twenty years, our firm has represented investment banks and financial institutions based in the Australian and New Zealand markets on US and European capital markets, structured finance and related transactions.  Given the increased sophistication and number of transactions that have been originated in the Australian market,  we believe that it is now time for us to establish a local presence, and we are very fortunate to have a lawyer with Bob’s skills and reputation join us. The US-qualified lawyers to be based in our Sydney office will also provide additional depth and breadth to our existing international legal practices based in the other Sidley offices in the Asia Pacific time zone.”

Mr. Meyers expressed his delight at joining Sidley, commenting, “Sidley’s longstanding experience in the Australian and New Zealand markets, its strength in the Asia Pacific region, its world class corporate, capital markets and litigation practices and its reputation as one of the world’s leading international law firms is the perfect platform for my practice and my clients.”

Mr. Meyers will join Sidley’s global corporate finance and capital markets practice, which numbers several hundred lawyers practicing in 11 offices around the world.  Sidley has long maintained one of the world’s leading capital markets’ practices.  For the third consecutive year, Sidley was ranked top issuer counsel for U.S. debt, equity and equity-related deals by Thomson Financial in its 2006 U.S. law firm league tables.  The firm advised on 548 deals worth $374.1 billion in deal value representing a market share of 10.7 percent. Sidley also ranked number three as underwriter’s counsel in the same category with $257.3 billion in deal value from 429 offerings representing a market share of 7.2 percent.  In the 2007 American Lawyer Corporate Scorecard, Sidley ranked third (tied) for top law firm transactional practice in the United States.

Sidley Austin LLP is one of the world's largest full-service law firms, with more than 1,700 lawyers practicing in 15 U.S. and international cities including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London, Shanghai, Singapore and Tokyo.  Sydney will be Sidley’s sixteenth office.  In 2006, Sidley was named to Legal Business’ Global Elite, their designation for "the 15 finest law firms in the world."  Sidley was again named the number one law firm for overall client service by BTI, a Boston-based consulting and research firm, in 2007.  BTI has also named Sidley to their Client Service Hall of Fame as one of only two law firms to rank in the Client Service Top 10 for six years in a row.

www.sidley.com



Near Full Recovery in Adelphia's Bankruptcy Case
Law Firm News | 2007/04/24 11:17




Adelphia Communications Corporation and its affiliated debtor subsidiaries completed distributions to creditors pursuant to its Modified Fifth Amended Joint Chapter 11 Plan this February, after what has been described as one of the most complex Chapter 11 bankruptcy proceedings in United States history.

White & Case was retained by the Ad Hoc Committee of Arahova Noteholders, one of the principal unsecured creditor constituencies in the case, in the spring of 2005, after various positions taken by the debtors and other creditor constituencies threatened to materially reduce Arahova creditor recoveries from full par plus accrued interest to mere cents on the dollar.

"The case involved potential shifting of billions of dollars of value around the corporate enterprise," said Miami-based partner Thomas E Lauria, chairman of the Firm's Global Financial Restructuring and Insolvency Group. "More than $2 billion of creditor recoveries were at stake for Arahova creditors. Together with the Ad Hoc Committee, our work was instrumental in negotiating a global settlement between and among a majority of all creditor constituencies fragmented throughout the entire Adelphia capital structure."

What ensued was nearly two years of intense, contentious litigation over the bona fides of Adelphia's general ledgers. With billions of dollars of creditor recoveries at stake, certain major parties finally agreed on a term sheet resolving the inter-debtor disputes and, importantly, providing for near payment in full for Arahova creditors. Under the prior plans of reorganization proposed by the Debtors and pursuant to the May 2005 schedules, the default distribution for Arahova creditors had been in the low 20 cents on the dollar. Instead, as a direct result of White & Case's efforts, Arahova stakeholders were positioned to receive a nearly full recovery — an approximate $2 billion improvement in recoveries on a class basis.

White & Case then took the lead role in developing the plan and structuring the Ad Hoc Committee's recovery, which included cash, stock and certificated litigation trust interests, freely tradable on a national exchange, in one of the largest litigation trust vehicles ever created in a Chapter 11 case.

Capping off more than 21 months of White & Case's involvement on behalf of the Ad Hoc Committee — including 11 weeks of trial in the winter of 2006 and weekly court-ordered settlement negotiations throughout the summer of 2006, the bankruptcy court confirmed the plan and endorsed the settlement, granting a nearly full recovery to the Arahova Noteholders.

Along with partner Thomas E Lauria, the White & Case team was led by New York partners J. Christopher Shore and Gerard Uzzi. In New York, the team comprised partners Wayne Cross, Robert Milne, Michael Gallagher, Jack Pace, James Hayden and Colin Diamond, and associates Meghan McCurdy, David Ernst, John Chung, Douglas Baumstein, Averie Hason, Victoria Kennedy, Raj Gandesha, Victoria Oswald, Kendra Goldenberg and Jessica Marchand. In Miami, associates Richard Kebrdle, Kevin McGill, Fernando Menendez and Lane Begy also advised the committee.

White & Case has taken a lead role in a number of major US bankruptcy proceedings, including the completion of a three-year restructuring of one of the world's largest energy trading companies, Mirant Corporation, in which the Firm acted as debtors' counsel; advising on the cross-border restructuring of Corporación Durango, the largest papermaker in Mexico; representing hedge fund Appaloosa Management in connection with being the principal equity investor for the proposed restructuring of Delphi, one of the largest manufacturing restructurings in US history; and representing French governmental agency CDR Creances as mortgagee and judgment creditor, in the successful prosecution of an involuntary bankruptcy petition against the owner of the Flatotel building in Manhattan.

About White & Case
White & Case LLP is a leading global law firm with more than 2,000 lawyers in 35 offices in 23 countries. Our clients value the breadth and depth of our US, English and local law capabilities and rely on us for their complex cross-border commercial and financial transactions and for international arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients.



Scrushy Settles SEC Lawsuit for $81M
Securities | 2007/04/24 09:09

The US Securities and Exchange Commission has settled accounting fraud charges against HealthSouth founder and former CEO Richard Scrushy under an agreement announced Monday "that permanently bars Scrushy from serving as an officer or director of a public company, permanently enjoins Scrushy from committing future violations of the antifraud and other provisions of the federal securities laws, and requires Scrushy to pay $81 million in disgorgement and civil penalties." According to the SEC's press release:

The Commission's complaint in this action charges Scrushy with directing a $2.6 billion financial fraud at the HealthSouth Corporation during the years 1996 through 2002....

The Complaint alleges that, at Scrushy's direction, HealthSouth's overstated its revenue by more than $2.6 billion from the second quarter of 1996 through the third quarter of 2002. This overstatement led directly to quarterly and annual overstatements of net income and retained earnings. The Commission's complaint charges that, by the end of 2002, HealthSouth was claiming to have over $1.5 billion in accumulated retained earnings, when in fact the Company had operated at a significant loss over its entire corporate history. The HealthSouth fraud resulted in one of the largest accounting restatements in American corporate history.

Scrushy was acquitted in 2005 on criminal charges of wire and mail fraud, money laundering, conspiracy, and violations of the Sarbanes-Oxley Act for his role in overstating HealthSouth's earnings.

He was, however, convicted last year on federal bribery and fraud charges for paying campaign debts of former Alabama Governor Don Siegelman in exchange for a seat on a state-operated review board that regulates Alabama hospitals. Siegelman was also convicted in that case and both could face up to 30 years in prison.



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