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Former TX Supreme Court Chief Justice John Hill dies
Attorneys in the News | 2007/07/10 08:01
John Hill, the only person in state history to serve as secretary of state, attorney general and chief justice of the Texas Supreme Court, died Monday. He was 83. He died of a heart condition around 9:45 a.m. at a Houston hospital, said a spokeswoman for his law firm. "He was a man of enormous integrity, great moral courag, and deep commitment to law and justice," President Bush said. "Laura and I join John's family and friends and all Texans in mourning the loss of a devoted statesman."

In 1978, Hill ran for governor and defeated incumbent Gov. Dolph Briscoe for the Democratic nomination. But Hill became the first Democrat in 100 years to lose the gubernatorial election, falling to Dallas millionaire Bill Clements, a Republican.

The loss was not the end of Hill's career in public service. After several years as a behind-the-scenes player in state politics, Hill was elected to a four-year term as chief justice of the Texas Supreme Court in 1984.

He resigned before his term ended to begin an unsuccessful crusade to reduce political pressure on the judicial branch by ending the system in which voters elect judges in Texas. Hill continued to push for reforms even after he no longer held public office.

"His retirement from public service was no retirement at all, because he continued to advocate for a method of judicial selection that would assure trust and confidence in our judiciary," Chief Justice Wallace B. Jefferson said.

The setbacks never seemed to discourage Hill, said former Texas Supreme Court Justice Craig T. Enoch.

"He fits the mold of legendary lawyers in Texas," he said.

"I never saw something that would eat at him anyway," Enoch added. "It illustrates a depth to this person far beyond whether he won or lost a particular election."

Hill was born Oct. 9, 1923, in Breckenridge. He later said he "could have outdone Abe Lincoln in terms of the smallness of the house in which I was born."

He spent a year at Kilgore Junior College, where he won a national debate championship, and then went on to the University of Texas at Austin, where he graduated from law school and met his wife, Elizabeth "Bitsy" Graham.

After serving in the Navy during World War II, Hill became a lawyer. He built his reputation by winning large awards for the families of passengers who died in plane crashes in Texas.

He was secretary of state from 1966-68, after helping Gov. John Connally get elected. In 1972, he won an election for attorney general by 100,000 votes.

After the failed gubernatorial run and his stint on the state Supreme Court, Hill returned to private practice. Gov. George W. Bush appointed Hill to the three-member Texas Lottery Commission in 1997.

Since 2005, Hill had been a partner in the Houston office of the law firm Winstead PC.

Gov. Rick Perry ordered flags flown at half-staff through Saturday.

"John Hill represented all that is good about politics and public service," former U.S. Secretary of State James A. Baker III said. "I have been privileged to have been involved in political efforts both with John Hill and against him, and believe me, it was better to be with him."

Texas' two senators also released statements acknowledging Hill's impact on state politics and the judicial system.

"He was dynamic, witty, compassionate and always a gentleman," said Sen. John Cornyn, a former state attorney general and Texas Supreme Court justice. "He generated respect and admiration among his fellow Texans that transcended partisan politics."

Sen. Kay Bailey Hutchison said, "The state of Texas owes him and his family a debt of gratitude."

Hill is survived by his wife; three children, Melinda Elizabeth Hill Perrin, John Graham Hill and Judge Martha Hill Jamison; 10 grandchildren; and two great-grandchildren.

Services are scheduled for 1 p.m. Friday at St. Luke's United Methodist Church in Houston.



Ex-partner at US law firm pleads guilty to conspiracy
Court Watch | 2007/07/10 07:13

A former partner of Milberg Weiss & Bershad, one of the first law firms in America to bring class actions against large companies, yesterday agreed to plead guilty to hiding payments made by the legal firm to clients in exchange for them taking part in lawsuits. The case highlights concerns in the US about the rising cost of litigation, boosted by class actions and the substantial settlements that some of the cases attract.

Milberg Weiss is one of the best-known law firms that bring class actions on behalf of shareholders and customers against large companies. The firm boasts that it has recovered more than $45 billion (£22.3 billion) on behalf of clients in cases connected with financial fraud.

David Bershad, a 67-year-old former managing partner at the law firm, yesterday agreed to plead guilty to conspiracy to obstruct justice and make false statements under oath. Those charges could attract a sentence of up to five years in prison. Mr Bershad has agreed to return $7.75 million, pay a $250,000 fine and cooperate with the US Attorney’s office in Los Angeles.

For the past seven years, federal prosecutors have been investigating whether Milberg Weiss, the firm, Mr Bershad and his former partner Steven Schulman took part in a scheme to pay millions of dollars in illegal kickbacks to shareholders so that they would serve as lead plaintiffs in class action fraud cases.

The prosecutors were trying to ascertain whether, once a case was settled, some of the legal fees due to the firm were paid to the lead plaintiffs. Such payments are illegal because lead plaintiffs have to represent other members of the class action and have to declare that their interests are in line with the others’.

Mr Bershad was indicted last year by a Los Angeles grand jury along with Mr Schulman for making such payments in cases where the firm was paid $216 million. Milberg Weiss and Mr Schulman, who has since retired, pleaded not guilty. The trial is to due to start in January.

In a statement, Milberg Weiss & Bershad said: “We understand David Bershad will plead guilty today to conspiracy to obstruct justice. Mr Bershad had been on a leave of absence since May 2006 and his relationship with Milberg Weiss LLP has been terminated. We remain confident that his actions will have no effect on the firm’s commitment to its clients and its ongoing work to protect public shareholders and consumers.”

Federal investigators finally got lucky in the long-running inquiry in May last year. Los Angeles prosecutors secured a guilty plea from Howard Vogel, who admitted that he and his family had received $2.5 million in illegal payments from the law firm in return for becoming lead plaintiffs in a number of class actions. Mr Vogel named four partners at Milberg Weiss and also agreed to cooperate with the investigation.

Mr Bershad had responsibility for overseeing the finances and accounting processes of Milberg Weiss, according to court papers.



Big Tort Lawyer Turns State's Evidence
Legal Business | 2007/07/10 07:07

Federal prosecutors are closing in on two titans of the class action bar, Melvyn Weiss and William Lerach, after one of their former law partners pleaded guilty to scheming to make secret payments to plaintiffs in securities lawsuits. David Bershad, 67, entered a guilty plea to one felony count of conspiracy before Judge John Walter yesterday afternoon. During the 40-minute hearing, Bershad told the judge that prosecutors were correct when they charged that the firm where he worked for nearly four decades, Milberg Weiss & Bershad, paid investors to serve as named plaintiffs. Bershad, the longtime financial chief for the firm, also implicated Messrs. Weiss and Lerach by agreeing that they were aware of and participated in the payments.

"Of course, this is the worst possible development," a law professor at New York University, Stephen Gillers, said. "It bodes ill for Partners A & B," the professor said, using the pseudonyms prosecutors have adopted to refer to Messrs. Weiss and Lerach in court proceedings. "Each of them is clearly in the prosecutors' sights," Mr. Gillers said. With Bershad's testimony, prosecutors "may now have the ability to pull the trigger" and obtain an indictment of the two men, Mr. Gillers said.

"It seems pretty damning to me," another professor who has been following the case, Larry Ribstein of the University of Illinois, said. "They are facing a trial or pretty hard time, if all this pans out."

Messrs. Weiss and Lerach have not been charged with any crime. However, in recent weeks, the pair has been in plea discussions with federal prosecutors, a lawyer involved in the case said, speaking on condition of anonymity.

Mr. Weiss's attorney, Benjamin Brafman, declined to comment on the development. Mr. Lerach's lawyer, John Keker, did not respond to a message seeking comment for this article.

Bershad could receive up to five years in prison on the conspiracy count. Prosecutors and Bershad's lawyers agreed that sentencing guidelines call for 18 months to two years in his case, though Judge Walter is not obligated to follow that recommendation. Bershad also agreed to forfeit $7.75 million of his receipts from the various lawsuits and to pay a $250,000 fine.

At yesterday's hearing, Bershad and one of his lawyers, Cristina Arguedas, stood at a lectern as a prosecutor, Richard Robinson, outlined the facts the government would seek to prove if Bershad went to trial. For 15 minutes, the prosecutor described the scheme by which Milberg Weiss used secretly paid plaintiffs to win the race to be first to file securities lawsuits.

"Generally, these individuals were promised that they would be paid approximately 10% of the net attorneys' fees that Milberg Weiss obtained," Mr. Robinson said. This gave Milberg Weiss an advantage because plaintiffs' firms that filed first were likely to be named as lead counsel and to enjoy a larger share of attorneys fees when cases were settled, he said. In 1995, Congress changed the laws related to class actions, and first-to-file status became less critical.

In one of the case's most eye-catching allegations, Mr. Robinson said Bershad kept in his office a stash of cash contributed by Milberg Weiss partners. The prosecutor said this became a "secret payment fund" used to make off-the-books distributions to plaintiffs, who were expected to take less than the customary 10% if they were paid in cash.

Mr. Robinson said Partner A, Mr. Weiss, made at least one payment from the fund, and Partner B, Mr. Lerach, sought reimbursement for a cash payment to a plaintiff. The prosecutor said Partner A also used a "phony option," which court papers indicate related to an artwork, to pay $175,000 owed to one plaintiff involved in the scheme.



China executes former chief of food and drug agency
International | 2007/07/10 05:58

The former official, Zheng Xiaoyu, who had been sentenced to death on May 29, was executed Tuesday, the Xinhua News Agency reported. Zheng was found guilty of taking 6.49 million yuan, or about $850,000, in bribes, including cash and gifts, and dereliction of duty, Xinhua reported. Zheng "sought benefits" for eight pharmaceutical companies by approving their drugs and medical devices during his tenure as China's chief drug and food official from June 1997 to December 2006, according to the media report.

During Zheng's tenure, six types of medicine were approved that turned out to be fake and some pharmaceutical companies used false documents to apply for approvals.

In comments on Zheng's case, a spokeswoman for the State Food and Drug Administration, Yan Jiangying, said Tuesday that corrupt officials have shamed the country's food and drug supervision system, Xinhua reported.

"We should seriously reflect and learn from these cases," Yan said. "We should fully protect public food and drug safety. The new drug registration regulation, which will come out soon, will ensure the transparency of the drug approval procedure."

In late June, China shut down 180 food producers that were found to be using improper industrial chemicals and additives.

Also last month, the U.S. Food and Drug Administration said it is imposing stricter controls on farm-raised Chinese seafood because of long-term health concerns about contamination with drugs and unsafe food additives, but that there is no immediate danger to consumers.

The action, which was effective immediately, covers farm-raised shrimp, eel, catfish, and two other kinds of fish, basa and dace, from China, the world's largest producer of farmed fish and the third-largest exporter of seafood to the United States.



Anti-smoking drug Chantix works for alcohol too
Biotech | 2007/07/10 05:57

The drug varenicline is already on the market under the brand name Chantix to help smokers kick the habit but new preliminary research now suggests it could also be useful in helping heavy drinkers quit.

The research which was carried out on rats provided the rodents with intermittent access to 40 proof alcohol for four months and by varying the access to the liquor supply the rats were made to crave it.

The researchers say every time the rodents had access to booze, they upped their intake and drank all day and withdrawing the alcohol made them want to drink even more.

After months of this behaviour and a total of 37 binge-drinking sessions, all the rats cut their drinking in half when given varenicline.

When taken off the drug, the rats did not immediately imbibe more, a rebound effect that has affected other treatments.

Varenicline has been available as a smoking cessation aid for nearly a year in the U.S. and the European Union, and as well as being safe it does not suppress the appetite and is not metabolized in the liver.

Bartlett says this is a major plus because long term drinkers often have liver damage.

According to the researchers the drug targets a pleasure center in the brain and has the potential to be considered as a treatment for addictions such as gambling and painkillers.

Varenicline works by latching onto the same receptors in the brain that nicotine binds to when inhaled in cigarette smoke, an action that leads to the release of dopamine in the brain's pleasure centers; the drug blocks any inhaled nicotine from reinforcing that effect.

The new study suggests alcohol also acts on the same locations in the brain and varenicline, might be equally as effective for curbing drinking.

Selena Bartlett, a University of California neuroscientist who led the study says the drug has already proven itself safe for people trying to stop smoking and is now a potential drug to fight alcohol dependence.

Experts say smoking and drinking often go together and a single drug able to tackle both addictions is not surprising.

The researchers at the University of California along with the National Institute on Alcohol Abuse and Alcoholism, plan to conduct clinical trials in humans of the drug's effectiveness in curbing alcohol cravings and dependence.

The drug is already approved by Food and Drug Administration and this should speed the process up.

But skeptics warn that varenicline does not work for all smokers and it's highly unlikely it will work for all drinkers and some experts insist there is a common biological basis for addictions to both alcohol and tobacco.

Although drug company Pfizer provided the drug for the study it was not involved in the research and is apparently undecided whether to seek broader FDA approval for the drug.



Pozen settles class-action lawsuit against company
Class Action | 2007/07/10 05:11

Pozen Inc. (POZN.O: Quote, Profile, Research), which develops drugs to treat acute and chronic pain, said on Tuesday it has settled a class-action lawsuit filed against the company and its chief executive officer, Dr. John Plachetka.

Pozen said all claims against the company and Plachetka will be dropped without admission of wrongdoing by any party.

The settlement agreement, which remains subject to court approval, will be funded with proceeds from the company's directors and officers' liability insurance.

About POZEN

POZEN is a pharmaceutical company committed to developing therapeutic advancements for diseases with unmet medical needs where it can improve efficacy, safety, and/or patient convenience. POZEN's efforts are focused primarily on the development of pharmaceutical products for the treatment of acute and chronic pain and other pain-related conditions. POZEN has development and commercialization alliances with GlaxoSmithKline for the proposed product candidate Trexima combining sumatriptan, formulated with RT Technology, and naproxen sodium in a single tablet for the acute treatment of migraine, which is currently under review by the United States Food and Drug Administration, and with AstraZeneca for proprietary fixed dose combinations of naproxen with the proton pump inhibitor esomeprazole magnesium in a single tablet for conditions such as osteoarthritis and rheumatoid arthritis in patients who are at risk for developing NSAID-associated gastric ulcers. The company's common stock is traded on The Nasdaq Stock Market under the symbol "POZN". For detailed company information, including copies of this and other press releases, see POZEN's website: www.pozen.com.



Law Firm Hires Rella:Cowan for Branding Work
Law Firm News | 2007/07/09 08:18



Pulley Watson King & Lischer (PWKL), a long-established firm in Durham, has hired Rella:Cowan, a marketing and advertising agency, to rebrand the law firm which specializes in medical malpractice and personal injury cases. Rella:Cowan will work with PWKL to research and develop the firm’s brand positioning and create a new corporate identity and website, as well as other marketing tactics.

“We talked to a number of marketing and branding agencies, and Rella:Cowan was the one who truly understood what we need to do for this firm,” said Stephanie Jester, Firm Administrator for PWKL. “We were impressed with their proven experience and their guidance in helping this firm become even more competitive in the complex realm of medical malpractice and personal injury law.”

The agency is conducting a competitive analysis and executive interviews to develop the firm’s new brand positioning. The research phase will be followed by the development of a full corporate identity package with a new logo and website that will include public service information about specific medical conditions and preventing them.

About Pulley Watson King & Lischer
Pulley Watson King & Lischer (PWKL) is one of North Carolina's leading plaintiff's personal injury firms, with an excellent reputation for handling catastrophic cases while providing outstanding client care. PWKL’s practice includes wrongful death, medical negligence, personal injury, environmental claims, estate planning, corporate law, and commercial litigation. The firm’s attorneys are members of a variety of professional associations and are active in many community service efforts. Richard Watson and Guy Crabtree, both partners with the firm, were recently named to 2007 The Best Lawyers in America list. Malvern King, Managing Partner, was inducted into the General Practice Hall of Fame by the North Carolina Bar Association in June.

About Rella:Cowan

Rella:Cowan is a full-service strategic marketing and advertising agency. With award-winning work and diverse experience, Rella:Cowan helps clients effectively communicate their brands. The agency’s current clients include companies in financial services, technology, retail and professional services. For more information, visit http://rellacowan.com.



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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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