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Poor Smokers Would Pay for Health Bill
Health Care | 2007/09/30 11:15
Congressional Democrats have chosen an unlikely source to pay for the bulk of their proposed $35 billion increase in children's health coverage: people with relatively little money and education. The program expansion passed by the House and Senate last week would be financed with a 156 percent increase in the federal cigarette tax, taking it to $1 per pack from the current 39 cents. Low-income people smoke more heavily than do wealthier people in the United States, making cigarette taxes a regressive form of revenue.

Democrats, who wrote the legislation and provided most of its votes, generally portray themselves as champions of the poor. They do not dispute that the tax plan would hit poor communities disproportionately, but they say it is worth it to provide health insurance to millions of modest-income children.

All the better, they say, if higher cigarette taxes discourage smoking.

"I'm very happy that we're paying for this," Senate Majority Leader Harry Reid, D-Nev., said in an interview Friday, noting that the plan would not add to the deficit. "The health of the children is extremely important," he said. "In the long run, maybe it'll stop people from smoking."

Congress probably will revisit the cigarette tax issue soon because President Bush has pledged to veto the proposed $35 billion expansion of the State Children's Health Insurance Program. The decade-old program helps families buy medical coverage if their income is too high to qualify for Medicaid.

Bush has proposed a more modest growth for the program, and both political parties seem inclined to pay for it through a tax on an unpopular group, cigarette smokers.

By most measures, the average smoker is less privileged than the average nonsmoker. Nearly one-third of all U.S. adults living in poverty are smokers, compared with 23.5 percent of those above the poverty level, according to government statistics.

The American Heart Association reports that 35 percent of people with no more than 11 years of schooling are smokers. Those with 16 or more years of formal education smoke at a 12 percent rate.

Non-Hispanic black men smoke at slightly higher rates than do non-Hispanic white men. But the reverse is true among women.

The demographics of smoking and taxation received scant attention during last week's House and Senate debates, perhaps because many Democrats and Republicans agree that cigarettes are the best target for tax increase if the insurance program were to grow. A few lawmakers, however, took a swing.

"I know there is very little sympathy for smokers these days," Rep. Jack Kingston, R-Ga., said during the House debate. "But it is still a tax increase on the backs of the smokers. And in order to get enough money to pay for this, it would require 22 million new smokers."

Rep. Frank Pallone, D-N.J., defended putting the burden of expanded medical care on smokers.

"The tobacco tax is a great way to pay for it," he said, "because if you tax people who are smoking and they smoke less, then we have less health problems."

Rep. Jim McCrery, R-La., did not buy that logic. "To propose funding a growing program with a declining revenue source is, I would submit, irresponsible fiscal policy," he said.

If the federal cigarette tax nears $1 per pack, smokers in many states will pay hefty sums into government coffers unless they kick their habit. On top of the federal tax, New Jersey levies a $2.57 per pack tax on cigarettes, followed by Rhode Island at $2.46.

California is near the middle, at 87 cents a pack. Three states tax cigarettes at less than 30 cents per pack. South Carolina is the lowest at 7 cents.

Bill Phelps, spokesman for Philip Morris USA, based in Richmond, Va., said a steep federal tax increase could accelerate the national decline in smoking to the point that the insurance would have to find other revenue sources.

The average U.S. price of a pack of cigarettes has risen by 80 cents since 1999, Phelps said, largely because of state tax increases. State and federal governments received more than $21 billion in cigarette excise taxes in the 2006 budget year, he said, "so we think this trend is unfair to adults who smoke and to retailers who sell tobacco products."

In Congress, these groups receive little sympathy. But some lawmakers say voters should know the details of the insurance program's proposed funding structure.

Rep. Mike Pence, R-Ind., who spoke against the bill in last week's debate, said: "The headline ought to read, 'Smokers in America to pay for middle-class welfare.'"



Obama stuck in 2nd place; hasn't risen in polls
Politics | 2007/09/30 08:27

Barack Obama is the campaign rock star. But Hillary Clinton is still the woman to beat. Despite leading all of his rivals in the race for money, and boasting the largest grass-roots organization in modern political history, Obama is still far back in second place in most national polls. He's closer in Iowa but losing ground in New Hampshire. With 106 days to go before the Iowa caucuses, it's nearing now-or-never time for Obama to make his move.

"It's kind of like horse racing. If you're a horse that does well in the last sprint, you wait. But if you wait too long, there's going to be too much distance for you to catch up and you're not going to make it," said Steffen Schmidt, professor of political science at Iowa State University.

While supporters are impressed with Obama's signs of strength - his fund-raising prowess, the huge crowds at rallies, the Internet following - some are getting anxious that he hasn't risen in the polls.

"I am worried that he hasn't done more to close the gap," said a New York lawyer who has donated the maximum $2,300 to Obama's campaign and spoke on condition of anonymity. "It's positive that he hasn't fallen farther behind."

Preeta Bansal, a New York supporter, said she's not concerned.

"It's going to be a long fall. The race is just beginning and he's on fire," said Bansal, referring to recent stump speeches where she said he's been "superb."

New York City Councilman James Sanders, a Queens Democrat who supports Obama, conceded that supporters are "always concerned" and looking for the candidate to shine. But he said there's tremendous excitement for Obama, and real optimism that he can knock out Clinton.

"On the ground, the people, the groundswell is growing," Sanders said.

To overtake Clinton, the Obama campaign plans to drive home the message that the battle comes down to the following question: "Who do people think is most likely to bring about the change we need?"

David Axelrod, a top Obama adviser, said the Illinois senator won't hesitate to draw sharp contrasts with Clinton where contrasts are "germane and real." But don't expect a smackdown any time soon.

"I know there's a rooting interest, a kind of blood lust in the political community to see a kind of steel-cage match between Obama and Hillary," Axelrod said. "I don't think that's either politically smart or consistent with who he is."

The campaign has pinned much of its strategy on winning Iowa. Polls show Obama is in a close three-way race there with Clinton and John Edwards.

The campaign also has begun to deploy staff and build up ground operations in the states holding primaries on Feb. 5. And in the coming months, star supporter Oprah Winfrey "will do some things for us," Axelrod said.



Google Defends the DoubleClick Deal
Practice Focuses | 2007/09/30 05:29


Google is watching you. But you already knew that. Every time you conduct a search using its search engine, Google keeps tabs—and uses the information to send you ads tailored to the interests and tastes suggested by your searches.

Here's something you probably didn't know: The company may let you close the blinds, digitally speaking. Google Chief Executive Eric Schmidt told legislators on Sept. 27 that the company is exploring whether to let users keep Google from tracking the sites they're visiting. To do so, the company would enable Web surfers to shut off so-called cookies, the bits of code used to track the sites visited by individual computers and deliver ads related to those sites. Schmidt outlined that and other steps in an e-mail to Senator Charles Schumer read during a Senate hearing concerning Google's proposed purchase of DoubleClick. Google also is investigating technology that would keep user data collected from different sources from being concentrated in one place, and ways to better notify customers of Google's data-collection practices.

Government Influence

The proposals demonstrate the lengths to which Google may go in exchange for government approval of its planned $3.1 billion acquisition of online ad outfit DoubleClick, which specializes in ad placements across the Web. Senators on the Judiciary Committee also heard from Google opponents, including Microsoft, that would like to see the deal blocked. Marc Rotenberg, executive director of the Electronic Privacy Information Center, told senators that they should not let the deal go forward without rules governing how information can be collected and used, and how long it can be kept.

Senators can't block the deal, but they can influence the thinking of the Federal Trade Commission, which will ultimately decide whether to let it go forward. The most likely scenario is that the FTC will propose restrictions on how Google and DoubleClick can combine the information they collect—if it decides to do anything at all. In July, the FTC approved a similar $6 billion acquisition by Microsoft of aQuantive, a DoubleClick competitor. The government agency also approved Yahoo!'s  $680 million acquisition of the 80% of online ad exchange Right Media that it did not yet own.

An Industry Issue

Opponents say owning DoubleClick will give Google too much control over online advertising, and in particular the user data collected and stored on Google's massive computers. Google counters by saying the whole online advertising industry is in the midst of consolidation. As the number of Web sites where people spend their time has grown, online ad giants have acquired ad networks to expand the number of users they can monitor and the number of sites on which they can place ads. In testimony before the committee, Google Chief Legal Officer David Drummond argued that despite the search leader's success (more than 60% of searches are performed on the company's site and it brings in roughly 75% of all search ad revenue) it's no different from competing online advertising players, particularly Microsoft. "This is an industry issue," said Drummond. "That is how these issues should be worked out, not in the context of one company."

Google said it would welcome global privacy laws governing how Web companies obtain, combine, retain, and use the massive amounts of data collected on the Web surfing and searching habits on individual computers. But it doesn't want those rules to apply solely to its deal with DoubleClick. Through its general counsel, Brad Smith, Microsoft also said it would support privacy legislation.

Pipeline or Choice?

However, Smith and Scott Cleland, president of Precursor, a telecom research and consulting firm, also argued vehemently for rules that would treat Google differently from its main search competitors. According to Smith and Cleland, Google's dominance of search and access to the advertisers and sites that work with DoubleClick would enable the company to become a "pipeline" through which most of the Web's relevant data would flow. The reason, they argued, is that Google's ability to reach the majority of U.S. Web surfers on the most highly trafficked Web sites would be so great that advertisers would be forced to work with the company.

And, with Google's access to advertisers, any publishers not working with Google would also feel they had to work with the company, further increasing Google's reach. As a result, Google would be able to potentially collect Web surfing data on most Internet users, which would also lead to increased advertiser reliance on the company. "In a lot of ways it would be like combining the New York Stock Exchange and the NASDAQ," Microsoft's Smith said. "Somebody could build an alternative exchange, but would anybody go there to take their company public?…this merger is about creating a single pipeline."

Drummond argued that Google—whose main business is selling ads based on search keywords and then displaying those ads on its search pages, as well as the partner sites those same searchers visit—is not in the same business as DoubleClick, which delivers ads that an advertiser and Web publisher have contracted for outside of DoubleClick's site. "There is no pipe," said Drummond. "A user, at a moment's notice, can go use another and they do all the time…there are all kinds of choices."

Whether the government will single out Google at all is an open question. The hearing was the first round of what Senator Herb Kohl  called a "heavyweight fight." In the next round, Google, Microsoft, and others plan to speak about privacy issues before the FTC at a two-day "town hall" meeting, starting Nov. 1.



Law firms inspired by YouTube
Legal Business | 2007/09/29 11:32

U.S. law firms are using recruiting Web sites with YouTube-inspired layouts and videos to appeal to the younger crowd of prospective summer associates. The videos range from professional-looking ads featuring actors to videos that feature company employees speaking about the firm's expertise or its diversity, The New York Times reported Friday. "The videos are still kind of in the early days," said Brian Dalton, the senior law editor at Vault Reports, which ranks law firms. "A lot of them come off seeming like hostage videos."

A series of videos created by Boston law firm Choate Hall & Stewart echoes the "Mac vs. PC" ads created by Apple. The video series, called "Choate vs. Megafirm," features a frustrated Megafirm employee complaining about his firm, while a self-assured Choate employee sings her employer's praises.

However, sometimes law firms recognize when their attempts to be hip go too far. Los Angeles firm Quinn Emanuel Urquhart Oliver & Hedges pulled a video from their Web site before it even went live. The video, titled "A Day in the Life of an Associate," followed a jeans-wearing associate named Ivey who plays Ultimate Frisbee in between meetings with partners.

"Some of the associates, some of the partners, thought it was too contrived; maybe corny was probably a better word," said A. William Urquhart, the firm’s hiring partner.



Bloomberg LP the Target of Many Lawsuits
Court Watch | 2007/09/29 11:22
The three women at the center of a lawsuit filed by the federal government against Bloomberg LP are not the first to accuse the financial information company founded by Mayor Michael Bloomberg of discrimination. A separate suit was recently filed in Manhattan federal court by another woman who said she also experienced discrimination based on her pregnancy and maternity leave, like the three women in the suit filed by the Equal Employment Opportunity Commission Thursday.

Monica Prestia, who began working for Bloomberg LP as a sales representative in 1997, filed a suit in June claiming the company discriminated against her after she became pregnant in February of 2005.

The company treated her differently than similarly employed male workers and subjected her to "harassment, hostile work environment and other forms of discrimination," the complaint said.

The suit seeks unspecified damages and is pending in court.

On Thursday, the EEOC accused the New York-based company of similar discrimination, saying it engaged in a pattern of demoting women, diminishing their duties and excluding them from job opportunities after they disclosed they were pregnant.

Bloomberg LP spokeswoman Judith Czelusniak did not respond to a request for comment on the Prestia case; in court papers the company denied the allegations. About the EEOC suit on Thursday, Czelusniak said: "We believe strongly that the allegations are without merit and we intend to defend the case vigorously."

The agency brought the suit on behalf of three senior employees who had filed complaints with the EEOC regarding Bloomberg LP, saying the activities occurred with malice or reckless indifference to federal anti-discrimination laws. The EEOC is the federal agency charged with interpreting and enforcing laws passed to prevent discrimination in the workplace.

The women were expected to bring their own motion in court next week that further details their claims. They were identified by the EEOC as Tanys Lancaster, Jill Patricot and Janet Loures.

Lancaster was said to be earning close to $300,000 in a senior position in the company's Transaction Products Department when she announced her pregnancy.

"Almost immediately I began to suffer demotions, decreases in compensation as well as retaliation after I complained to Human Resources," she said in a statement.

Lancaster is no longer employed with Bloomberg. Patricot and Loures are still working there.

Patricot, who worked as a manager in the Global Data Division, claims that after returning to her job following maternity leave, she was demoted to an entry level position because her schedule had changed due to child care demands.

Loures was also a manager in the Global Data Division, and said her duties and staff were reduced starting with her first maternity leave and continuing through a second one. She is now employed in an entry-level clerical position, the EEOC said.

The EEOC said the women's claims of discrimination due to gender and pregnancy "were echoed by a number of other female current and former employees who have taken maternity leave."

Richard Roth, an attorney for the woman in the separate suit filed in June, said in an interview Friday that the EEOC complaint "helps expose what's really going on behind the scenes at Bloomberg."

It is a culture that Michael Bloomberg, who is a potential presidential candidate, was accused of fostering while he headed the company. Bloomberg stepped down as CEO to run for mayor in 2001 but retains a 68 percent stake in the company. A spokesman for Bloomberg declined to comment on the cases Friday.

While Bloomberg was CEO, a female sales executive accused him in a lawsuit of sexual harassment and other claims similar to these new allegations.

The suit, filed by Sekiko Sakai Garrison in 1997, claimed that he and other male managers displayed a discriminatory attitude toward pregnant women and new mothers.

It said that when he found out Garrison was pregnant, he told her "Kill it!" and said "Great! Number 16!" -- an apparent reference to the number of women in the company who were pregnant or had maternity-related status at the time.

It also claimed Bloomberg and other men at the company made "repeated and unwelcome" sexual comments, overtures and gestures, contributing to an offensive, locker-room environment.

Bloomberg adamantly denied the accusations; the suit was settled in 2000. Terms were not disclosed.



Jets Fan Sues Pats, Seeks $184 Million
Legal Business | 2007/09/29 11:21
New York Jets season-ticket holder filed a class-action lawsuit Friday against the New England Patriots and coach Bill Belichick for "deceiving customers." The lawsuit filed in U.S. District Court in Newark, N.J., by Carl Mayer of Princeton Township, N.J., stems from the Patriots being caught illegally videotaping signals from Jets coaches in New England's 38-14 season-opening win Sept. 9.

"They violated the integrity of the game," Mayer's attorney, Bruce Afran, told The Associated Press. "This is a way of punishing Belichick and the Patriots."

Mayer is seeking more than $184 million in damages for Jets ticket holders.

Belichick was fined $500,000 by NFL commissioner Roger Goodell, and the team was fined $250,000 for violating a league rule that prohibits clubs from using a video camera on the sidelines for any purpose -- including recording signals relayed to opposing players on the field. New England also must forfeit a first-round draft pick next year if it makes the playoffs or a second- and third-rounder if it doesn't.

"They were deceiving customers," said the 48-year-old Mayer. "You can't deceive customers."

The lawsuit maintained that because other teams found illegal videotaping by the defendants, Jets ticket holders should be compensated for all games played in Giants Stadium between the Jets and Patriots since Belichick became head coach in 2000.

The two calculated that because customers paid $61.6 million to watch eight "fraudulent" games, they're entitled to triple that amount -- or $184.8 million -- in compensation under the federal Racketeer Influenced and Corrupt Organization Act and the New Jersey Consumer Fraud Act.

"How many times have the Patriots done this? We find it hard to believe they did it just once," Mayer said. "We just want to get to the truth of the matter of what the Patriots did to the Jets. I think the ticket holders are genuinely concerned about it. This is a type of misrepresentation."

Patriots spokesman Stacey James declined to comment on the lawsuit.

Mayer and Afran, who consider themselves public interest lawyers, have been thorns in the side of New Jersey politicians for years, filing lawsuits and demanding investigations to advance their grievances. They are well known in the state but generally have had little success in their causes.

Both have lost bids for elected offices, and Mayer once served as a presidential campaign adviser to Ralph Nader.

Their demand in March for a probe of Gov. Jon S. Corzine's gifts to a former girlfriend was rejected by a federal prosecutor. In 2006, a judge vetoed their effort to block Corzine's appointment of Rep. Robert Menendez, D-N.J., to fill the governor's seat in the U.S. Senate.

They also failed to get a court to order a special election to replace Gov. James E. McGreevey when he resigned in 2004.

Now, they're taking on the Patriots.

Their latest lawsuit asserted that the secret videotaping violated the contractual "expectations and rights" of Jets ticket holders "to observe an honest match played in compliance with all laws and regulations."

The actions of Belichick and the Patriots violated federal and state racketeering laws, as well as the New Jersey Consumer Fraud Act and New Jersey Deceptive Business Practices Act, according to the lawsuit.

"Having been a lifelong Jets fan, as soon as I heard this, I was completely outraged," Mayer said. "The NFL just slapped them on the wrist. I'm a consumer lawyer, and this is consumer fraud."



Italy Approves Tax Cuts for Businesses
International | 2007/09/29 11:20
Italy's Cabinet approved lower taxes for businesses and tax breaks for homeowners and renters Saturday, a reflection of Premier Romano Prodi's efforts to pacify disgruntled centrists and far-left parties in his fractious coalition.

The measures, part of the government's proposed package of spending and taxes for 2008, were debated at a Cabinet meeting that stretched over about 12 hours, beginning late Friday afternoon and ending early Saturday.

Prodi's center-left coalition has been struggling to stay intact virtually since it began governing in May 2006, and some of his allies have been predicting that if his coalition unravels, early elections, eagerly sought by conservative opposition leader Silvio Berlusconi, would be the consequence.

The government's popularity has been sagging in opinion polls, and Berlusconi, the media mogul and former premier who Prodi defeated in 2006 elections, has been pressing for a return to the ballot box.

Prodi's description of the proposed national budget for next year sounded both like a pep talk to keep his coalition partners enthusiastic and a campaign rally in case elections are near.

"We are proud of this outcome of team play which will help families, businesses and citizens and the weakest members" of society, Prodi told a news conference at the premier's office.

The premier boasted that the overall euro11 billion (US$15.6 billion) budget was nearly one-third less than the current year's budget.

The budget must be passed by Parliament by the end of 2007, and if past years are any guide, many of the measures approved by the Cabinet could be revised several times before becoming law.

With his often rebellious, far-left coalition partners, including Communists, balking over Prodi's aim to reform Italy's generous pension system, the Cabinet decided to put off a decision on that thorny issue until Oct. 12.

The far-left had gone into the Cabinet session threatening not to approve the budget unless welfare spending took priority over tax cuts.

Prodi told the news conference that reforms to the pension system and hiring rules would be approved at the Oct. 12 session.

Economy Minister Tommaso Padoa-Schioppa said Italy's economic growth rate was declining, "but the drop is not dramatic."

He also sounded an optimistic note, saying that mortgage crises that have hit financial institutions and consumers hard in the United States, does not seem to be hitting Italy.

The government "is keeping all its promises" and "we are operating in a context of healing" Italy's finances, Padoa-Schioppa said.

Far-left parties already have forced Prodi to briefly resign over Italy's military mission in Afghanistan, and their opposition to economic reforms has stifled or watered down attempts to liberalize the country's economy and reduce public spending.



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