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Court weighs securities fraud class-action cases
Legal News |
2014/03/05 22:50
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The Supreme Court is considering whether to abandon a quarter-century of precedent and make it tougher for investors to band together to sue corporations for securities fraud.
The justices hear arguments Wednesday in an appeal by Halliburton Co. that seeks to block a class-action lawsuit claiming the energy services company inflated its stock price.
A group of investors says it lost money when Halliburton's stock price dropped after revelations the company misrepresented revenues, understated its liability in asbestos litigation and overstated the benefits of a merger.
Justices threw out the company's first attempt to block the lawsuit in 2011. But Halliburton is now urging the court to overturn a 25-year-old decision that sparked a tidal wave of securities-related, class-action lawsuits against publicly traded companies and has led to billions in settlements.
The court's 1988 decision in Basic v. Levinson says shareholders who claim they were defrauded by false statements in securities filings don't have to prove they actually relied on the statements. Rather, the court reasoned that any misrepresentation would be reflected in the current stock price. Even if investors are not aware of the misstatements, they are presumed to be aware of them because they affect the stock price.
This presumption, known as the "fraud-on-the-market theory," has become the driving force for modern class-action securities cases. But some economists have questioned whether this theory makes sense anymore, saying it doesn't account for the sometimes random and arbitrary nature of stock trading. |
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Ohio courts must report mental health info
Legal News |
2014/01/06 19:41
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Courts in Ohio must now report certain mental health information about people convicted of violent crimes for inclusion in a law enforcement database.
A rule approved by the Ohio Supreme Court requiring that notification took effect Jan. 1. The court devised the form to be submitted to law enforcement after legislation was approved last year.
The law requires judges to report ordering mental-health evaluations or treatment for people convicted of a violent crime or approving conditional release for people found incompetent to stand trial or not guilty by reason of insanity.
The legislation was introduced after a Clark County sheriff's deputy was fatally shot in 2011 by a man with a criminal history who was conditionally released from a mental health institution. |
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Gay couples wed in Utah after judge overturns ban
Legal News |
2013/12/23 20:38
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Elisa Noel rushed to the county clerk's office with her partner immediately after learning that a federal judge overturned Utah's ban on gay marriage. They waited in line for a wedding license and were married in an impromptu ceremony punctuated with Noel giving the officiant a high-five.
"I can't believe this is Utah," Noel said moments after a ceremony that took place about 3 miles from the headquarters of the Mormon church.
Others had a similar reaction after a ruling by U.S. District Judge Robert J. Shelby that declared Utah's voter-approved ban on gay marriage unconstitutional. The recent appointee by President Obama said the ban violates the constitutional rights of gay couples and ruled Utah failed to show that allowing same-sex marriages would affect opposite-sex marriages in any way.
The ruling prompted a frenzy of activity by lawyers and gay couples. The Republican governor blasted the ruling as going against the will of the people. Gay couples rushed to the Salt Lake County Clerk's office en masse to secure marriage licenses, waiting in line by the dozens and getting married on the spot by the mayor and ministers. |
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Canadian court strikes down anti-prostitution laws
Legal News |
2013/12/23 20:33
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Canada's highest court struck down the country's anti-prostitution laws Friday, a victory for sex workers who had argued that a ban on brothels and other measures made their profession more dangerous. The ruling drew criticism from the conservative government and religious leaders.
The court, ruling in a case brought by three women in the sex trade, struck down all three of Canada's prostitution-related laws: bans on keeping a brothel, making a living from prostitution, and street soliciting. The ruling won't take effect immediately, however, because the court gave Parliament a year to respond with new legislation, and said the existing laws would remain in place until then.
The decision threw the door open for a wide and complex debate on how Canada should regulate prostitution, which isn't in itself illegal in the country.
Robert Leckey, a law professor at McGill University, said the court found that the law did nothing to increase safety, but suggested in its ruling that more finely tailored rules might pass constitutional scrutiny in the future. |
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Dutch Supreme Court: Fortis was mismanaged
Legal News |
2013/12/09 22:30
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The Netherlands' Supreme Court has upheld rulings that the now-defunct Belgian bank Fortis NV was mismanaged from September 2007 to September 2008, and its then-management board can be held accountable.
Friday's ruling opens the door for investor claims against former CEO Jean-Paul Votron, among others, though not former supervisory Chairman Count Maurice Lippens, whom lower courts found was too far removed from decision making to be held liable.
Fortis, Royal Bank of Scotland and Spain's Santander bought Dutch bank ABN Amro in a hostile takeover in 2007, nominally the largest in banking history.
Fortis agreed to buy ABN's Dutch operations for 24 billion euros in its part of the deal but was unable to finance the buy — which represented around half of its own total size — and eventually spiraled toward bankruptcy. The Dutch state ultimately nationalized all Fortis-ABN operations in the Netherlands in 2008 to avoid a meltdown of the country's financial system. The rescue has cost taxpayers at least 32 billion euros.
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Amanda Knox appeals slander case to European court
Legal News |
2013/11/29 18:34
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Lawyers for Amanda Knox filed an appeal of her slander conviction in Italy with the European Court of Human Rights, as her third murder trial was underway in Florence.
The slander conviction was based on statements Knox made to police in November 2007 when she was being questioned about the slaying of her British roommate, Meredith Kercher, in the house they shared in Perugia.
Knox says she was coerced into making false statements blaming the slaying on bar owner Patrick Lumumba.
"The interrogation took place in a language I barely spoke, without a lawyer present, and without the police informing me that I was a suspect in Meredith's murder, which was a violation of my human rights," Knox said in a statement released Monday as the appeal was filed.
Knox was convicted of slander at her first trial in December 2009. That conviction was upheld during the appeal that resulted in her 2011 murder acquittal.
Knox has returned to Seattle, where she is a student at the University of Washington. She is not attending the third trial being held in an appeals court in Florence.
The European Court for Human Rights is an international court in Strasbourg, France, that oversees the European Convention on Human Rights. |
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Once notable NJ lawyer given life sentence
Legal News |
2013/09/25 18:53
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A defense attorney who once had a roster of celebrity clients and boasted of having tried hundreds of cases in federal court was sentenced there on Monday to life in prison without parole after his conviction on nearly two dozen counts including murder conspiracy and racketeering.
Paul Bergrin, in custody since his 2009 arrest, wore khaki prison scrubs and showed little reaction as a judge read what amounted to several life sentences Monday afternoon in a federal courtroom in Newark.
The 57-year-old former federal prosecutor once represented an Army reservist charged in the Abu Ghraib prison scandal in Iraq and celebrities such as Queen Latifah, the rapper Lil' Kim and the group Naughty By Nature. He also represented reputed gang members and alleged drug kingpins from his offices in Newark.
Bergrin, formerly of Nutley, and several associates were arrested and charged in May 2009 with running his law business as a criminal enterprise. The U.S. attorney's office charged Bergrin with more than 30 counts including racketeering, setting up the murder of a witness, money laundering and drug offenses. His first trial, in which Bergrin represented himself, ended in a hung jury two years ago.
A second trial resulted in his conviction in March on 23 counts related to operating what prosecutors said was a racketeering enterprise that engaged in drug trafficking, prostitution, bribery, plotting to murder witnesses and money laundering. |
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