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U.S. judge approves $3.2 bln in Tyco settlements
Breaking Legal News |
2007/12/20 07:03
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A federal judge on Wednesday approved settlements worth $3.2 billion for investors who sued Tyco International Ltd following an accounting scandal that led to the imprisonment of ex-chief Dennis Kozlowski. Also approved was about $464 million in legal fees and $28.9 million in expense reimbursement for the plaintiffs' lawyers. It is believed to be the biggest-ever fee award for attorneys in a securities class-action settlement. The lawyers' payments, which when proposed had attracted criticism from some institutional investors as being too hefty, will be drawn from the settlement fund. "In summary, I find that the settlement is fair, reasonable and adequate," U.S. District Judge Paul Barbadoro wrote in the ruling. Tyco agreed in May to pay $2.975 billion to settle several long-running class-action lawsuits. Another defendant, former Tyco auditor PricewaterhouseCoopers LLP, said in July it would pay $225 million to resolve the litigation. Kozlowski and former Tyco finance chief Mark Swartz were found guilty in June 2005 of stealing millions from the conglomerate, a case that became infamous amid revelations that Kozlowski had used company funds to pay for a $15,000 umbrella stand and a $6,000 shower curtain. Kozlowski and Swartz are now serving sentences of up to 25 years apiece in New York state prison. Plaintiffs in the shareholder lawsuit contended that from December 1999 through June 2002, Tyco and others misrepresented the value of acquisitions and misled investors about Tyco's financial health. The settlements were reached before the case ever went to trial. |
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Chicago Lawyer Is Indicted On Refco-Related Charges
Breaking Legal News |
2007/12/19 06:12
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In a rare case of a lawyer being charged in connection with the alleged wrongs of a client, Chicago lawyer Joseph Collins was indicted today on fraud and other charges in connection with the 2005 collapse of commodities and derivatives firm Refco Inc. Federal prosecutors in Manhattan on Tuesday announced 11 counts against Mr. Collins, of the law firm Mayer Brown LLP, in connection with legal work he did for Refco, including documenting a series of "round trip loans" between related entities and outside investors that Refco completed to shift bad debt off its books from the late 1990s to 2005. The discovery of the transactions led to one of the swiftest collapses in Wall Street history. Phillip Bennett, the former chief executive of Refco, and others have been indicted in connection with the Refco collapse. "Acting hand-in-hand with Bennett, Collins made affirmative misrepresentations, material omissions, and told deceptive half-truths, all to assist Bennett's scheme to steal more than $2.4 billion from potential investors," the indictment said. Lawyers are rarely charged criminally in connection with a client's alleged fraud. In the collapse of Enron Corp., no outside lawyers were charged. "There tends to be gray in legal transactions, but to show intent in a white collar prosecution, it needs to be black and white," says Andrew Weissmann, the former head of the Department of Justice's Enron Task Force and now a partner at Jenner & Block LLP. "It's difficult to develop that kind of evidence against lawyers." The Securities and Exchange Commission also filed a civil complaint Tuesday against Mr. Collins, alleging that he aided and abetted securities fraud at Refco. Mr. Collins, who has been the head of Mayer Brown's derivatives group, is now on leave from the firm while the charges are pending, the firm said Tuesday. "Mayer Brown has cooperated fully with authorities investigating activities related to the collapse of Refco," the firm said in a statement. "Our review of the evidence available to us shows that the firm acted in a professional, competent and ethical manner in its work on behalf of Refco." Mr. Collins's lawyer, William Schwartz, said his client intended to fight the charges and called him "an innocent victim of the Refco fraud. This indictment should send a chill down the spine of every transactional lawyer who believes he or she is representing an honest client." Michael Garcia, the U.S. Attorney for the Southern District of New York, took a different view, saying it is "not a crime to have a client who commits a crime. No lawyer will be prosecuted unless that lawyer knows about the client's fraud and agrees to join in it understanding its unlawful nature." The charges are a blow to a law firm that has weathered several of late. In July, buyout firm Thomas H. Lee Partners LP, which purchased a stake in Refco in 2004, sued Mayer Brown for allegedly failing to inform Lee about the bogus loan transactions. Also this year, an independent examiner filed a report in Refco's bankruptcy, concluding that there was significant evidence that the law firm "knew or should have known" the loans were fraudulent. Beyond Refco, the law firm has struggled with recent defections by high-profile partners, and it suffered negative publicity this year when it fired or demoted 45 partners in an effort to boost its profitability. |
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Judge orders hearing on destroyed CIA videotapes
Breaking Legal News |
2007/12/19 05:05
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A U.S. judge on Tuesday ordered the Bush administration to explain whether the CIA violated a court order by destroying videotapes of the harsh interrogations of two terrorism suspects. U.S. District Court Judge Henry Kennedy, who in 2005 had ordered the government to preserve information on prisoner mistreatment at the U.S. naval base at Guantanamo Bay, Cuba, scheduled a court hearing on the tapes for Friday, overriding government objections. Lawyers for a group of Guantanamo Bay inmates contesting their detention had requested the hearing to learn whether the government had complied with the preservation order. They cited reports that information obtained from the interrogations implicated five unnamed Guantanamo detainees. "We hope to establish a procedure to review the government's handling of evidence in our case ... and generally to require an accounting from a government that has admitted that it destroyed evidence," said David Remes, an attorney for the group of inmates. He declined to comment on whether he believed any of his clients were implicated during the interrogations. The CIA on December 6 disclosed that it had destroyed hundreds of hours of interrogation tapes, prompting an outcry from congressional Democrats and human rights activists. The sessions recorded on the tapes were believed to have included a form of simulated drowning known as waterboarding, which has been condemned internationally as torture. The CIA said it destroyed the tapes lawfully and did so out of concern for the safety of agents involved if the recordings were ever made public. The White House has repeatedly denied the United States tortures terrorism suspects. The Justice Department declined to comment on the judge's hearing order but the department last week urged Kennedy not to investigate the videotapes. |
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S. Korean Pleads Guilty to Lying to FBI
Breaking Legal News |
2007/12/18 05:36
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A South Korean man suspected of spying on North Korea for his government has pleaded guilty to charges that he repeatedly lied about his activities to the FBI. Park Il Woo pleaded guilty in federal court on Friday to lying about his role as a South Korean agent, the U.S. attorney's office in Manhattan said. Park, who also goes by the name Steve Park, was never charged with espionage. Prosecutors have said that Park made 50 trips to China and the Korean peninsula over the last several years and had appeared to be engaged in espionage type activities for at least five years. Park is a South Korean citizen living in the United States. U.S. law requires anyone acting as an agent of a foreign government to register with the attorney general and disclose the nature of the activity. An FBI agent said in court papers that Park had not registered, though he had admitted meeting with South Korean intelligence officers and agreeing to be paid to travel to North Korea to gather information for South Korea. According to court papers, Park met with the FBI once in 2005 and twice this year, each time lying about his contacts with or knowledge of certain South Korean officials. Park's lawyer has said her client is a law-abiding resident, and this case was an instance in which "what appears to be quite bad turns out to be much less." |
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Court throws out publisher/freelancer settlement
Breaking Legal News |
2007/12/17 06:08
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An appeals court has thrown out a settlement between freelance writers and publishers such as the New York Times and Dow Jones & Co. The writers had sued these publishers, and others including ProQuest and Knight Ridder, asserting that they had not granted the publishers the right to reproduce their work on the internet or in databases. A panel of Court of Appeals judges voted two to one to conclude that the district court lacked the power to approve the settlement that had previously been reached. This was worth up to $18 million.
Circuit judge Chester Straub said: "The overwhelming majority of claims within the certified class arise from the infringement of unregistered copyrights.
"We have held, albeit outside the class-action context, that district courts lack statutory subject matter jurisdiction over infringement claims arising from unregistered copyrights." |
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2 plead guilty of plotting to engage in terrorism
Breaking Legal News |
2007/12/16 01:27
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Two men accused of plotting behind prison walls to launch jihad-style attacks on military sites, synagogues and other targets in 2005 pleaded guilty Friday to conspiring to levy war against the United States. Kevin James, 31, and Levar Haley Washington, 28, entered their pleas in separate appearances before U.S. District Court Judge Cormac J. Carney. Washington also pleaded guilty to using a firearm to further the conspiracy. Prosecutors said he used a shotgun to rob a Torrance gas station on July 4, 2005. James faces up to 20 years in prison when he is sentenced March 31. Washington faces up to 20 years in prison on the conspiracy charge and five years to life for the firearms offense when he is sentenced April 28. Authorities say James, Washington and two others were part of a California prison gang cell of radical Muslims that planned the attacks in the Los Angeles area. "Homegrown terrorism remains a grave concern to the security of our country, and this cell was closer to going operational at the time than anyone since 9/11," Los Angeles Deputy Police Chief Michael Downing told reporters at a news conference after the two men entered their pleas. Police uncovered the plot in July 2005 while investigating a string of gas station robberies that authorities say were committed to finance the attacks. Torrance Police Chief John Neu told reporters at the news conference that authorities linked about 10 holdups to the plot.
The plotters were within weeks of being able to carry out an attack, officials said, when they were discovered about two months before the Jewish holiday Yom Kippur. Washington and James, who arrived in court in chains and prison jumpsuits, said little during their separate hearings. Both men wore goatees and Washington's face was covered in tattoos. Washington's attorney, Ellen Barry, said outside court that her client decided it was "in his best interests" to plead guilty. James' attorney, Robert Carlin, declined to comment. Also indicted in the case were Gregory Vernon Patterson and Hammad Riaz Samana. All but Samana, a Pakistani national, are American-born Muslim converts. Patterson and Samana are charged with conspiracy to levy war against the U.S. government through terrorism, conspiracy to possess and discharge firearms in a violent crime, conspiracy to kill members of the U.S. government uniformed services and conspiracy to kill foreign officials. Patterson is also charged with a robbery count and using a firearm in a violent crime. U.S. Attorney Thomas O'Brien said Samana has been declared mentally unfit to stand trial and is undergoing psychiatric care at a federal prison facility. Patterson is expected to plead guilty to a terrorism conspiracy charge on Monday. Prosecutors say the plot was orchestrated by Washington, Patterson and Samana at the behest of James, a California State Prison, Sacramento, inmate who founded the radical group Jamiyyat Ul-Islam Is-Saheeh, or JIS. |
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Guilty Pleas in Fake N.Y. College Grades
Breaking Legal News |
2007/12/14 07:42
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Two former college students avoided jail when they pleaded guilty Thursday to a charge related to paying school officials to falsify their grades and transcripts. Uzi Azizov, 22, and Boris Yakubov, 25, pleaded guilty to a misdemeanor state charge of falsifying business records. Each was sentenced to seven days of community service and fined $1,000. The two former Touro College undergraduates were among 10 people indicted by a grand jury in July in a scheme to use the city college's computer system to change grades and create fake degrees in exchange for money. Azizov admitted during his plea that in January he paid a Touro official to change his grades. Prosecutors said when Azizov was arrested his grade point average had jumped to 3.63 from 1.23 because of the transcript changes. Yakubov admitted he paid a college official in February to falsify his records. Prosecutors said when Yakubov was arrested that he bought a fake transcript showing he had earned a master's degree from Touro's Graduate School of Education and Psychology. District Attorney Robert Morgenthau said in announcing the indictments that the defendants included Touro's former director of admissions, the former director of the school's computer center and three public school teachers. The indicted school officials created or altered records for at least 50 people since January 2007, Morgenthau said, charging fees of $3,000 to $25,000 for better or deleted grades and for bachelor's and master's degrees. Cases involving those defendants are pending. Lawyers for Azizov and Yakubov said that they had no comment as they left court Thursday. |
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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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