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Paxil Teen Suicide Case Trumped by Michigan Law
Headline News | 2008/04/01 14:53

The parents of a Michigan teenager who killed herself while on the antidepressant Paxil cannot sue the drug's manufacturer because a state law grants immunity to the maker of any drug approved by the Food and Drug Administration.

U.S. District Judge Paul L. Maloney of the Western District of Michigan said FDA approval of Paxil use by adults was enough to shield manufacturer SmithKline Beecham Corp., even though the agency never approved the drug's use by teens.


He therefore dismissed Nadine White and David B. McCullough's lawsuit against SKB over their 16-year-old daughter Moriah's 2001 suicide after taking Paxil for three months.

Michigan is the only state with a law providing drugmakers immunity from state tort suits if the FDA has certified their products as safe and effective. The only exceptions to the statute are for fraud on the FDA or bribery of an agency official.

In this case, White and McCullough filed a negligence and strict-liability suit against SKB in a Pennsylvania federal court because the company is located in that state.

The drugmaker won a change of venue to the Western District of Michigan because the plaintiffs are residents of that state. It then filed a motion to dismiss.

In their opposition to the motion the plaintiffs argued that their suit is a failure-to-warn case because SKB never warned doctors not to prescribe Paxil to teens or children and, in fact, conducted a secret campaign to promote such "off-label" use.

Moreover, since the company never applied to the FDA for marketing approval to prescribe the drug to teens and children, it cannot argue that it has immunity under the Michigan statute, they said.

Judge Maloney rejected that argument, saying the Michigan Legislature provided immunity to drug manufacturers for FDA-approved products and that it is uncontested that Paxil was approved by the agency for use in adults.

"The statute does not limit the protection to situations when the drug is used for approved purposes," he said. "Should the Legislature wish to limit the protection available to "off-label" uses of the drug, it may do so."



Former Latham Partner Pleads Guilty
Attorneys News | 2008/03/31 14:53

A former partner at Latham & Watkins pleaded guilty Friday to defrauding both clients and his own firm by charging them more than $300,000 in personal or false expenses.

Samuel A. Fishman, a mergers and acquisition specialist in Latham's New York office from 1993 to 2005, was designated billing partner for a number of firm clients. According to prosecutors at the Southern District of New York U.S. Attorney's Office, Fishman, 51, used his position to carry out a fraudulent scheme over the course of several years.

Responsible for supervising and approving invoices sent to clients, Fishman added to the bills a number of inappropriate items, mischaracterizing them as charges for photocopying or express mail. He also fraudulently sought reimbursement from his firm for a number of personal expenses he claimed were for business.

The U.S. Attorney's Office did not identify Latham as Fishman's firm in a criminal information filed with the guilty plea, nor was the firm's name mentioned in court Friday afternoon when Fishman entered his plea to one count of mail fraud. But in a statement Friday, the firm acknowledged Fishman as a former partner and said his misconduct had come to light in 2005.

Latham "immediately acted to protect our clients fully, and disclosed the matter to appropriate law enforcement authorities," said David Gordon, Latham's New York managing partner. "Mr. Fishman resigned from the firm at the time the issues were discovered. Since that time, we have cooperated fully with the investigation."

In announcing Fishman's guilty plea, prosecutors noted that the firm had reimbursed its clients hundreds of thousands of dollars that had been fraudulently charged. A firm spokesman Friday declined to identify the clients defrauded by Fishman.

The criminal information said Fishman's clients were in the banking, utilities, telecommunications and entertainment industries. He has previously acted as lead counsel for companies including movie theater chain AMC Entertainment Inc. and JPMorgan Partners, the private equity arm of JPMorgan Chase & Co.

Accompanied at Friday's hearing by defense lawyer Jack Litman of Litman, Asche & Goiella, Fishman expressed remorse to Southern District Judge Victor Marrero.

"I am very sorry for what I did," he told the judge.

Fishman's sentencing is scheduled for June 27. The mail fraud charge carries a maximum sentence of 20 years in prison. Fishman also has agreed to forfeit $350,000 in ill-gotten wealth. He also faces likely disbarment.

A number of major firms have had to deal in recent years with fraud by partners, though most instances have resulted in disbarment or other disciplinary sanction as opposed to criminal prosecution.

In 2006, former WilmerHale intellectual property partner William P. DiSalvatore resigned from the bar after admitting to a litany of misconduct, including falsifying expense reports and assigning associates to perform "pro bono" work for friends and family. He claimed more than $109,000 in false personal expense.

Willkie Farr & Gallagher and the former Kronish Lieb Weiner & Hellman are two other firms that have also terminated partners for fraudulently seeking reimbursement for personal expenses.

In most such cases, including that of Fishman, the defrauded amounts have been small compared to what the perpetrators earn as partners. Last month, Latham said it had profits per partner of $2.3 million in 2007.

Steven Lubet, a legal ethics professor at Northwestern University School of Law, said he always found it "incredible" that highly paid partners would resort to fraud. He said he could only imagine that such people were overspending trying to emulate the lifestyles of those they represented.

"The clients have that kind of money, the lawyers don't," said Lubet. "Sometimes, lawyers decide they want to live like their clients and that extra money has to come from somewhere."

Perhaps the most well-known case of a lawyer bilking his clients and firm was Webster Hubbell, the former associate attorney general under President Bill Clinton.

Hubbell was forced to resign his position in 1994 after his former partners at Arkansas' Rose Law Firm discovered billing irregularities. He later pleaded guilty to fraudulently charging almost $500,000 for personal expenses and legal work never actually performed. He served 16 months in prison.



23 Districts Improperly Report Attorneys
Attorneys News | 2008/03/31 14:38

Twenty-three school districts - nearly one-fifth of all the school districts on Long Island - improperly reported private attorneys as employees, which helped the attorneys earn public pensions totaling more than $342,082 a year, plus health benefits worth thousands more, a Newsday review of records has found.

In some cases, a town, village, library, special district or county also reported the attorneys as employees, often as full time, even though records show they did not always work full time. By being reported as employees at these other agencies while also working in private practice, they were able to enhance the size of their state pensions.

The employment arrangements - some of which started in the early 1970s and continue to this day - enabled a select group of 10 attorneys to garner generous public benefits, even as they earned millions in legal fees as well, state and school district records show. Three of the 10 have not yet begun receiving their pension.

Among the attorneys is one currently collecting a six-figure public pension; another is a Nassau County legislator. Although most of the attorneys declined to comment, those who did speak with a reporter said they were following previous practice when they got onto the public and school district payrolls. Two recently changed their status from employee to independent contractor.

The issue of independent contractors being treated as employees so they could obtain public benefits has been called into question after Newsday reported on the case of Centerport attorney Lawrence Reich. Five school districts falsely reported him as a full-time employee, enabling him to collect a pension of nearly $62,000 and health benefits for life.

About three weeks ago, the state comptroller's office found that Reich did not meet the standards used by the Internal Revenue Service to determine whether someone is an employee. As a result, he must pay back the pension he has been collecting since September 2006.

The FBI, IRS and New York attorney general's office all have launched investigations of lawyers being carried as employees by school districts.



DOJ to Continue Crackdown on Political Corruption
Top Legal News | 2008/03/28 15:53

US Attorney General Michael Mukasey said Thursday he would personally ensure that the US Department of Justice does not bow to political pressure as it prosecutes government officials for corruption. In a speech to the Commonwealth Club in San Francisco, Mukasey said:

Public corruption can inflict damage that is not only costly but also profound. When a public servant at any level of government exploits his or her office for improper purposes, the damage is measured not just in dollars and cents but also in erosion of the public trust upon which depends the survival of our system of government.

We fight, investigate and prosecute public corruption to ensure that those who hold public office live up to the public's trust, and to build the public's confidence in the very idea of government, without which the government cannot function.

The investigation and prosecution of public corruption is therefore among the highest obligations of law enforcement, and it should come as no surprise that I consider it to be one of the top priorities of the Department of Justice. In recent years, the Department's career prosecutors and criminal investigators have been engaged in a renewed effort to pursue corruption at all levels and in all branches of government.

Mukasey emphasized that the joint efforts of the DOJ and US Attorney's offices had resulted in the convictions of 1,093 individuals for corruption in 2006, including former congressmen Randy "Duke" Cunningham and Bob Ney.

Mukasey's speech came only hours after a federal grand jury in San Juan, Puerto Rico charged Puerto Rican Governor Anibal Acevedo Vila and 12 associates with 27 counts of conspiracy, false statements, wire fraud, federal program fraud and tax crimes related to campaign financing.



Herbies Promotes Record Number of Partners
Attorneys News | 2008/03/28 15:45
Herbert Smith has made up a record 18 associates to the partnership and a third of them are women.

The bulk of the promotions were made around the firm's international network with just eight of the 18 based in the London office. As last year, when the firm made up a total of 10, the corporate practice gained the highest number of new partners at seven. Litigation and arbitration has gained five new partners while finance and real estate will receive two new partners apiece and employment and competition each gain one.

Senior partner David Gold said the geographic and departmental splits had been very deliberate. "This year's promotions will support two of our key strategic priorities, namely strengthening our international capability and further developing the distinctive breadth and balance of our practice," he added. "Both are pivotal to our ability to support clients and maintain high activity levels across the range of economic cycles."

In terms of offices, after London, Paris has gained four new partners while Hong Kong and Tokyo have each gained two and Beijing and Brussels have gained one each. This is a big shift in strategy from last year's promotions when Hong Kong received one internal promotion with the remaining nine going to the London office.



Hollinger settles civil fraud lawsuit with SEC for $21.3M
Headline News | 2008/03/27 16:09

Hollinger Inc., the Canadian holding company with an interest in former newspaper publisher Hollinger International has agreed to pay the US Securities and Exchange Commission (SEC) $21.3 million to settle claims that from 1999 to 2003 it violated securities law by failing to disclose to investors payments and other transactions that benefited the executives to the detriment of the company. The settlement stems from a lawsuit filed by the SEC in November 2004 against former Hollinger International chairman Conrad Black, former Hollinger president David Radler, and Hollinger Inc. Under the terms of the settlement, Hollinger Inc. has agreed to be permanently enjoined from committing future securities laws violations. The settlement must still be approved by US District Judge William T. Hart before it becomes final.

Radler was sentenced in December to 29 months in prison for one count of mail fraud, after pleading guilty and agreeing to serve as a witness against Black. Black was convicted in July of mail fraud and obstruction of justice and sentenced to 78 months in prison; he began serving his sentence earlier this month after a federal appeals court rejected his request to remain free on bail while his appeal is pending. Radler, Black and other Hollinger executives were prosecuted in the United States in connection to allegations that they diverted more than $80 million from Hollinger International, now Sun-Times Media Group, and its shareholders during the company's $2.1 billion sale of several hundred Canadian newspapers.



Diana Sen Selected as Regional Finalist
Attorneys News | 2008/03/27 15:45

The White House yesterday announced that Diana Sen (NY Litigation) has been selected as one of 97 Regional Finalists across the country for the White House Fellows Program. Founded in 1964 by President Lyndon B. Johnson, the program offers exceptional men and women first-hand experience working at the highest levels of the Federal government. Selection as a White House Fellow is highly competitive and based on a record of remarkable professional achievement early in one’s career, evidence of leadership potential, a proven commitment to public service, and the knowledge and skills necessary to contribute successfully at the highest levels of the Federal government.

During March and April 2008, Regional Finalists participate in a rigorous interview process. Based on the results of the interviews, approximately thirty candidates will be named National Finalists. The President’s Commission on White House Fellowships will interview the National Finalists in June 2008 and then recommend candidates to President George W. Bush for a one year appointment as White House Fellows.

Throughout its history, the program has fostered leaders in many fields including Secretary of Labor Elaine Chao, Former Secretary of State Colin Powell, United Nations Foundation President and Former U.S. Senator Timothy Wirth, Pulitzer Prize-winning author and historian Doris Kearns Goodwin, U.S. Army General Wesley Clark, U.S. Senator Samuel Brownback and Marshall Carter, Chairman, New York Stock Exchange.




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