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Law firm sees no US govt support in fraud aid case
Breaking Legal News | 2007/06/11 16:35

The Bush administration is unlikely to support shareholders in a U.S. Supreme Court appeal that aims to hold other companies and investment banks accountable when their actions aid corporations in fraud, a class action law firm said on Monday. Dan Newman, a spokesman for the firm representing Enron shareholders, Lerach Coughlin, said the Securities and Exchange Commission wrote a draft legal brief supporting shareholder plaintiffs in the appeal that is relevant to Enron's 2001 collapse. However, Newman said Solicitor General Paul Clement, who acts as the U.S. government's chief lawyer in Supreme Court appeals, was unlikely to support the regulator's view.

A spokesman for the Justice Department said he could not comment on matters of pending litigation.

In the appeal case before the Supreme Court, shareholders of Charter Communications Inc. (CHTR.O: Quote, Profile, Research sued Scientific Atlanta and Motorola Inc. (MOT.N: Quote, Profile, Research, accusing them of aiding a scheme to inflate Charter revenues in 2000. A lower court dismissed the case, saying that companies were not liable because they were not primary players in the alleged fraud.

Enron shareholders are closely watching the case because it could affect their own attempt to sue banks, including Merrill Lynch & Co. (MER.N: Quote, Profile, Research, for helping put together financing transactions for Enron before its collapse.

Legal briefs supporting the plaintiffs in the Charter case are due at the Supreme Court by midnight on Monday.

Newman said he and other investor advocates started hearing late last week that the solicitor general would not support the SEC's position.



10-year sentence for teen sex thrown out
Breaking Legal News | 2007/06/11 13:36

A former high school football star who became a national symbol for the extremes of getting tough on sex offenders was ordered released from prison Monday by a judge who called his mandatory 10-year sentence for consensual teen sex "a grave miscarriage of justice." But the joy felt by Genarlow Wilson's family rapidly turned to disappointment as Georgia's attorney general announced he would appeal, a move that will keep the honor student behind bars for now.

Wilson's sentence was widely criticized as being too severe, even by members of the jury that convicted him and the author of the 1995 law that put him behind bars.

His case became a cause celebre that grew from local blogs and TV stations to national news shows and editorial pages. Some supporters, including former President Jimmy Carter, have said it raised questions about race and the criminal justice system. Wilson and five other males charged in the case are black, as are the two teenage girls involved.

"As far as I'm concerned, this case is a throwback to Southern justice," said state Sen. Vincent Fort, an Atlanta Democrat.

Wilson, homecoming king of his school who was being recruited to play football at Vanderbilt University, has served more than two years of a mandatory 10-year sentence for aggravated child molestation. He was captured on videotape having consensual oral sex with a 15-year-old girl in 2003 when he was 17.

If the sentence stands, he would also be placed on Georgia's sex offender registry.

At the time of his crime, Wilson would have faced just one year in prison if he had sexual intercourse with the girl. The "Romeo and Juliet" exception in Georgia law also would have allowed him to avoid the sex offender registry.

Lawmakers last year voted to close that loophole. But the state's top court said the new law could not be applied retroactively to Wilson, now 21.

Opponents of Wilson's release said it could open a floodgate for other cases. Georgia prisons currently hold 189 inmates who were sentenced for aggravated child molestation when they were 21 or younger.

Of those, 56 percent were white and 44 percent black, state figures show.

Black community leaders planned a protest outside Attorney General Thurbert Baker's office late Monday. Baker, who is black, is now pushing to keep Wilson in prison, arguing that his sentence is valid.

In his notice of appeal, Baker argued that Georgia law does not give a judge authority to reduce or modify the sentence imposed by the trial court. He said he would seek an expedited ruling from the Georgia Supreme Court. And he noted that a plea deal is on the table that would release Wilson in a maximum of five years and also remove him from the sex offender registry.

Not good enough, said Wilson's lawyer, B.J. Bernstein.

"It is really ridiculous when you consider that we had a judge that just said it is a misdemeanor that carries no sex offender registration," she said.

"It is extremely, extremely disturbing that the attorney general would take this action now."

Bernstein said her office was seeking bond for Wilson, which would allow him to leave prison while the appeal is pending.

The judge's ruling Monday threw out Wilson's 10-year sentence and amended it to misdemeanor aggravated child molestation with a 12-month term, plus credit for time served, and he would not be required to register as a sex offender.

"The fact that Genarlow Wilson has spent two years in prison for what is now classified as a misdemeanor, and without assistance from this court, will spend eight more years in prison, is a grave miscarriage of justice," wrote Judge Thomas H. Wilson, who is no relation to Genarlow Wilson.

"If this court or any court cannot recognize the injustice of what has occurred here, then our court system has lost sight of the goal our judicial system has always strived to accomplish ... justice being served in a fair and equal manner," the judge wrote.

When the judge's order arrived Monday morning, Wilson's lawyers applauded and hugged his mother, Juannessa Bennett, who wiped away tears.

"I just feel like a miracle happened," Bennett said.

After the notice of appeal she looked stricken.

"It's heartbreaking," Bennett said.

Wilson's prominent supporters included Dallas Mavericks owner Mark Cuban, who declared he would boycott Georgia until Wilson was free, and Carter, who wrote a letter in support of Wilson to the state attorney general.

The court battle over Wilson's fate also drew comparisons to the rape charges leveled against Duke University lacrosse players last year, with critics saying prosecutors in both cases overreached.

Wilson was also charged with rape for being one of several male partygoers at a hotel to have sex with another 17-year-old girl, but was acquitted. The party was captured on a videotape that was played for the jury.

The five other male partygoers took plea deals in the case. One of them has been released from prison and is now in college.



Bush Heads Home to Contentious Congress
Politics | 2007/06/11 08:31

President Bush says Monday's debate over a vote of no confidence in Attorney General Alberto Gonzales will have no bearing on whether the long-time legal adviser stays in office."I guess it reflects the political atmosphere of Washington," he said. "They can try to have their votes of no confidence, but it is not going to make the determination of who serves in my government." The president told reporters in Bulgaria that he will decide whether Gonzales is effective or not, not legislators who he says are using a meaningless resolution to play politics.

"This process has been drug-out a long time, which says to me it is political," he said. "There is no wrong doing."

Opposition Democrats are calling for the Attorney General's ouster over what they say is the politically-motivated firing of eight federal prosecutors. The Justice Department says those dismissals were based on poor performance.

During this trip to Europe, President Bush also suffered a set-back to his top legislative priority of the year: comprehensive immigration reform.

A bipartisan bill fell short of the votes it needed in the Senate because some members of the president's own party object to its provisions giving illegal immigrants a path to citizenship.

The president says he knows it is a tough debate, but he is still optimistic about getting the bill through.


At dusk, illegal immigrants prepare to use an inner-tube to cross the Rio Grande River at the U.S-Mexico border in Nuevo Laredo, Mexico, 02 June 2007
"I believe we can get an immigration bill," he said. "Now it is going to require leadership from the Democrat leaders in the Senate, and it is going to require me to stay engaged and work with Republicans who want a bill."

While in Europe, the president telephoned three Republican Senators to lobby for the immigration bill. He will go to Capitol Hill Tuesday to press them further.

"It is important that we address this issue now and I believe we can get it done," he said. "Listen, a lot of progress was made between people in both parties making hard decisions necessary to move a comprehensive plan."

Mr. Bush says the legislative process often takes two steps forward and one step back. He says he will start Tuesday to work toward taking some steps forward again, telling a reporter on the trip, "I will see you at the bill signing."



Democrats seek Gonzales no confidence vote
Legal Business | 2007/06/11 08:20

While Attorney General Alberto Gonzales is in Florida Monday addressing a terrorism law enforcement conference in Miami, Senate Democrats in Washington, D.C., are forcing a vote by their Republican colleagues on a resolution expressing no confidence in America's top law-enforcement official. The resolution itself is only one sentence: "It is the sense of the Senate that Attorney General Alberto Gonzales no longer holds the confidence of the Senate and of the American people."

No one is predicting that a symbolic resolution expressing no confidence in Gonzales will survive even the test vote Monday. Most Republicans are likely to vote no, dismissing the whole exercise as a ploy to embarrass President Bush.

"I'm not going to comment on the kind of job" Gonzales has done, Sen. Jon Kyl, R-Ariz., said Sunday on CNN's "Late Edition." "The vote is whether we should take a vote to express a lack of confidence by the Senate. That's wrong."

At the same time, not many of the Senate's 100 members have been supportive of Gonzales after the attorney general told a Senate committee dozens of times that he could not recall key details about the firing of eight federal prosecutors.

White House spokesman Tony Snow brushed off the impending vote.

"There's an attempt to sort of pull this thing like a piece of taffy and looking if there's any political advantage in it. There's not," Snow said on "Fox News Sunday."

Democrats say it's only right for senators to go on record, since five Republicans have called outright for Gonzales' dismissal and many more of the president's party have said in public comments that they have lost confidence in him.



Court to focus on vaccine, autism Monday
Breaking Legal News | 2007/06/11 07:34

Thousands of families that allege vaccines caused their children's autism are preparing for their day in court, which could bring them vindication and compensation. Since 1999, more than 4,800 families have filed claims with the government alleging their children developed autism as a result of routine vaccinations. Most contend that a preservative called thimerosal is to blame for the impaired social interaction typical of the disorder.

Previously, large scientific studies have found no association between autism and vaccines containing thimerosal.

But many parents say their children's symptoms did not show up until after their children received the vaccines, required by many states for admission to school. If they prevail in the courts, the families are entitled to compensation from a multibillion-dollar trust fund.

The first of what eventually could be nine test cases from those claims is the subject of the hearing opening Monday in the U.S. Court of Federal Claims. Three special masters appointed by the court will preside over the hearing, expected to last through June 29.

The court is being asked to decide whether there is a link between autism and childhood vaccines. If it finds one exists, the families could be eligible for compensation under the Vaccine Injury Compensation Fund, a program established by Congress to ensure an adequate supply of vaccines by safeguarding manufacturers from lawsuits. Under the program, people injured by vaccines receive compensation through a special trust fund.

Autism is characterized by impaired social interaction. Those affected often have trouble communicating, and they exhibit unusual or severely limited activities and interests. Classic symptoms of mercury poisoning include anxiety, fatigue and abnormal irritation, as well as cognitive and motor dysfunction.

Monday's case addresses the theory that the cause of autism is the measles, mumps and rubella vaccine in combination with other vaccines containing thimerosal. The preservative, about 50 percent mercury by weight, is no longer found in routine childhood vaccines but is used in some flu shots.

In July 1999, the U.S. government asked vaccine manufacturers to eliminate or reduce, as expeditiously as possible, the mercury content of their vaccines to avoid any possibility of infants who receive vaccines being exposed to more mercury than is recommended by federal guidelines.



Court Rules Against Home Care Workers
Breaking Legal News | 2007/06/11 06:35

The Supreme Court ruled Monday that home care workers are not entitled to overtime pay under federal law. The unanimous decision upheld a 1975 Labor Department regulation exempting the nation's 1 million home care workers from the protections of the Fair Labor Standards Act. Justice Stephen Breyer wrote that leaving home care workers without overtime protection under the act does not exceed the agency's authority and "courts should defer to the department's rule."

The case was brought by lawyers for Evelyn Coke, a 73-year-old retiree who spent more than two decades in the home care industry helping the ill and the elderly.

Now in failing health, Coke said her employer never paid her time and a half for all her extra hours on the job.

Lawyers for Coke challenged the Labor Department regulation, and the 2nd U.S. Circuit Court of Appeals in New York City ruled in the workers' favor.

The appeals court said it was "implausible" that Congress would have wanted the Labor Department to wipe out protection for an entire category of workers.

The Labor Department wrote the restrictive regulation after Congress expanded the law's coverage.

Paying overtime would cost billions, the home care industry says.

In New York City, the annual cost of the Medicaid-funded Personal Care Services Program would rise by at least a quarter of a billion dollars if the appeals court decision is allowed to stand, the city says. The Personal Care Services program pays 90 private companies to send 60,000 home attendants to the homes of low-income elderly and disabled.

Coke's former employer, Long Island Care at Home Ltd., says it would experience "tremendous and unsustainable losses" if it had to comply with federal overtime requirements.

The Bush administration and the company that employed Coke opposed her lawsuit.

If Congress had wanted to apply the law's wage and overtime provisions to such workers, "it easily could have done so," the Bush administration said in papers filed in the case. Instead, Congress assigned the secretary of labor the task of deciding the issue, the administration said.



Top court rules against Philip Morris
Law Center | 2007/06/11 06:33

The U.S. Supreme Court ruled on Monday that a class-action lawsuit against Philip Morris USA, a unit of Altria Group Inc. (MO.N: Quote, Profile , Research), should not be decided in federal court, handing a defeat to the tobacco company. The justices unanimously reversed a ruling that allowed Philip Morris to transfer the lawsuit to federal court from the Arkansas state court where it initially was filed.

At issue is a suit filed against Philip Morris by two Arkansas women alleging that the company engaged in unfair business practices in marketing its low-tar Cambridge Lights and Marlboro Lights cigarette brands.

Companies facing class-action lawsuits typically prefer to have those cases litigated in federal courts, where they usually fare better than in state courts.

Philip Morris succeeded in having the case moved to federal court, saying it was appropriate because cigarette advertisements had been regulated by a U.S. agency -- the Federal Trade Commission.

The move was subsequently upheld by a federal appeals court in St. Louis. The U.S. Justice Department told the Supreme Court that the appeals court's ruling should be overturned.

The Supreme Court agreed and reversed the ruling in an opinion written by Justice Stephen Breyer.

Breyer said the fact that a federal regulatory agency directs, supervises and monitors a company's activities in considerable detail does not bring that company under the scope of the law that permits removal to federal court.



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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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