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WSU student pleads not guilty to sorority attack
Court Watch | 2007/09/22 03:45
A Washington State University student accused of attacking a woman in a sorority pleaded not guilty to rape and burglary charges.

Twenty-three-year-old Kyle Schott of Renton had been charged with first-degree rape, but the charge was reduced to second-degree.

Whitman County Superior Court documents say Schott and another man broke into the Kappa Alpha Theta sorority September 13th and attacked a woman as she slept.

Prosecutors say Schott watched while Christopher Reid performed sex acts on the woman. The two fled when she awoke. They are also accused of breaking into two other WSU sororities the same night.

Reid pleaded not guilty Wednesday to burglary and rape charges. The 25-year-old Los Angeles man performs in porno films under the name Jack Venice.



Defense lawyer in deadly Metrolink crash is dismissed
Court Watch | 2007/09/22 02:41
A judge dismissed one of the lawyers for the man accused of triggering a deadly Metrolink disaster nearly three years ago, citing the defense's insistence that it was not ready to go to trial. "The public is interested in knowing, hundreds of people want to know," Los Angeles County Superior Court Judge William R. Pounders said of the January 2005 train accident near Glendale, in which 11 people died. "I've reached the end of my rope."

The Los Angeles County district attorney is seeking the death penalty against Juan Manuel Alvarez, who allegedly left his vehicle on the railroad tracks, where a commuter train crashed into it. The train derailed, causing a second crash with an oncoming train.

Alvarez allegedly has contended he was trying to commit suicide and didn't mean to hurt anyone. Witnesses reportedly said he poured gasoline on the vehicle, suggesting he was trying to ensure that it would catch fire or explode.

Pounders said lawyer Norman Kallen was already committed to two other death penalty defenses and could not devote enough time to the Alvarez case. The judge told defense lawyers that he didn't think it would be fair to "sit and wait until you're ready."

Neither side asked for the change, and Pounders noted that Alvarez had not expressed dissatisfaction with Kallen. The judge told the remaining defense lawyer, Michael R. Belter, to press ahead. A second lawyer will be appointed to help Belter.

Belter declined to say whether his client would plead not guilty by reason of insanity. Previous defense lawyers suggested that such a plea might by justified.



NEC can't meet SEC standards, ADRs may be delisted
Securities | 2007/09/21 23:15
Japan's NEC Corp said on Friday its ADRs would likely be delisted from the Nasdaq exchange as it could not file a report or restate results to standards required by the U.S. Securities and Exchange Commission.

Outstanding American depository receipts account for around 2.9 percent of NEC's total issued shares. This is the only latest development in a slew of accounting troubles for the electronics conglomerate.

Last year, NEC unnerved investors by restating its earnings three times. It had to correct past earnings after it discovered an employee had inflated sales figures, and then suddenly switched to Japanese accounting rules from U.S. rules. It later had to correct its figures due to human error.

NEC, whose businesses include IT systems consulting, said it was not able complete a report at the request of independent auditor Ernst & Young ShinNihon to demonstrate pricing of maintenance services was fair.

Its deadline of September 25 had already been extended twice.

NEC senior vice president Takao Ono said he did not know why only NEC appeared to have a problem with filing such a report in contrast with other computer firms.

"U.S. firms may be more used to U.S. commercial customs ... we're not sure why," he told a news conference.

U.S. auditors have been scrutinizing software contracts, demanding companies prove with statistical evidence that they are not posting profits early from bulk contracts comprising hardware, software and maintenance.

Ono also acknowledged there was a risk of lawsuits relating to a delisting.

"These accounting issues raise doubts about NEC's corporate governance," said Kei Oikawa, an electronics analyst at Yasuda Asset Management.

"This has been largely factored into its share price but overall the company is not an attractive stock," he said, adding that while some parts of its businesses were doing better, earnings woes at its semiconductor unit had yet to be resolved.

NEC said its consolidated financial statements under Japanese accounting rules are current and are not affected by the announcement.

NEC's shares have fallen 20 percent since it said it would switch to Japanese accounting rules in October last year, which compares with a 2.8 percent decline for benchmark Nikkei average in the same period. On Friday, NEC ended down 1.8 percent at 547 yen in Tokyo prior to the announcement.



SEC subpoenas Apple's Jobs in backdating probe
Securities | 2007/09/21 10:48
Apple CEO Steve Jobs' legal involvement in a stock-options backdating case isn't quite finished. According to Bloomberg News, the Securities and Exchange Commission has sent a subpoena to the technology visionary, asking him to give a deposition in its civil case against former Apple general counsel Nancy Heinen. Bloomberg cited two people familiar with the matter who wanted to remain anonymous because deposition subpoenas aren't public. Mark Fagel, associate regional director of the SEC's San Francisco office, wouldn't comment on whether Jobs had been issued a subpoena, but said the discovery process in the case against Heinen had begun. He expects that the SEC will start taking depositions in the case in November.

Last year, Apple joined about 200 public companies in admitting that some of the stock options granted to senior executives had been backdated to capture an immediate profit. Backdating stock options does not violate SEC rules, provided the company doing the backdating takes an appropriate accounting charge for the extra profit reaped by executives. In Apple's case, no such disclosures were made.

In late December, the company issued a carefully worded statement explaining that an investigation by an outside law firm into the matter found that while Jobs was aware of the backdating at Apple, he didn't understand the accounting significance of the practice.

Instead, the investigation's findings raised "serious questions" about the role of two former executives in the backdating. Although Apple didn't name the individuals, they were former CFO Fred Anderson and Heinen. In April, the SEC charged the two with violations of securities laws. At issue were two large grants of stock options to Jobs, both of which were backdated to maximize the profit for the CEO. The SEC says Anderson should have known that the backdating required special accounting treatment. As for Heinen, the SEC accused her of falsifying Apple's books and records, fabricating a board meeting that never took place to justify the backdating of the options.



IMergent Agrees to Settle Class Action
Class Action | 2007/09/21 10:46

E-commerce software provider iMergent Inc. said Friday it has entered into a memorandum of understanding to settle a class action lawsuit against the company for $2.8 million. IMergent expects to pay the $2.8 million settlement to the class plaintiffs through the directors and officers insurance policy maintained by the company. As a result, iMergent said the settlement is not expected to affect the company's operating results.

According to Securities and Exchange Commission filings, the complaint alleges that the defendants violated federal securities laws by making material misleading statements and omissions, providing inaccurate financial information, and failing to make proper disclosures.

The initial class action suit was filed in 2005. The company denies liability.

The memorandum of understanding is subject to certain contingencies that require court approval, including a provision that prevents its former independent auditors Grant Thornton LLP from prosecuting any claims against the company related to the litigation.



Vegas Priest Pleads Guilty to Battery
Criminal Law | 2007/09/21 07:44
A Roman Catholic priest who smashed a wine bottle over the head of a woman in church pleaded guilty to felony battery with a deadly weapon. The Rev. George Chaanine admitted Thursday in Clark County District Court that he smashed the bottle over the 54-year-old woman's head at Our Lady of Las Vegas Catholic Church in January. Prosecutors dropped other charges, including attempted murder and sexual assault.

"Our prosecutors analyzed the case, they spoke with the victim, and she thought it was best to resolve this case short of trial," District Attorney David Roger said.

Neither the woman nor her lawyer could be reached for comment.

Chaanine, 53, remained in jail on $1 million bail pending sentencing Nov. 1. The battery charge carries a maximum prison term of six to 15 years, but Chaanine could be eligible for probation, officials said.

He remains suspended by the Diocese of Las Vegas. The district attorney said that as a convicted felon, Chaanine would "probably never be a priest again."

Deputy Public Defender Scott Coffee said Chaanine took responsibility for the attack, but "vehemently denies there was any sexual assault."

The woman sang at the church and was hired by Chaanine in October as the parish events coordinator. She accused Chaanine of hitting her in the head with a wine bottle on Jan. 26, stomping on her hand, groping her and choking her until she began praying. She said he suddenly stopped and fled.

Chaanine was arrested almost a week later near Phoenix. The woman was treated for a broken hand and a gash on the head, authorities said.

Both sides characterized Chaanine's relationship with his accuser as more than priest and parishioner, but they did not say the two were romantically involved.

Bishop Joseph Pepe, the head of the Las Vegas Diocese, issued the a statement Thursday characterizing the church community as saddened and saying he prayed for "unity and strength" in the congregation.



Law Firm Co-Founder Accused Of Conspiracy
Legal Careers News | 2007/09/21 07:39
Federal prosecutors are expected to indict trend-setting, class-action lawyer Melvyn Weiss on Thursday as part of a long-running legal action charging his law firm paid plaintiffs, Milberg Weis s said. Weiss, who made millions suing U.S. corporations on behalf of shareholders, is no longer working in the firm's management but concentrating on defending himself, Milberg Weiss said in a statement posted on its Web site.

"Milberg Weiss understands that a second superseding indictment will be issued tomorrow that will include new charges against the firm and also Melvyn Weiss," the statement said.

Weiss, 72, long reigned as the king of U.S. class-action litigation, casting himself as the protector of the common investor and creating enemies throughout corporate America. Weiss' lawyer was not immediately available for comment.

Milberg Weiss said it remained proud of its and Weiss' accomplishments and did not anticipate the indictment would interrupt its work.

News of Weiss' pending indictment came a day after another of the firm's former partners, William Lerach, agreed to plead guilty to criminal conspiracy and go to prison for his involvement in the scheme.

On its Web site, the Wall Street Journal said another former partner at Milberg Weiss, Steven Schulman, is on the verge of reaching a plea deal with the government that will likely be clinched this week. The report cited two people familiar with the situation, who said Schulman's deal may include jail time.

Schulman, who was indicted along with the law firm, which has pleaded not guilty to participating in a scheme in which several individuals were secretly paid to serve as plaintiffs in more than 150 lawsuits.

A spokesman for the U.S. Attorney's office in Los Angeles declined to comment on media reports regarding Schulman and the statement issued by Milberg Weiss.



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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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