- Microsoft co-founder Paul Allen’s firm suing Apple, Google and many others over common web features [Atlantic Wire, Groklaw ("Allen v. World and Dog"]
- Probably not a good idea to give local authorities cash incentive to snatch kids from homes [Bader, CEI]
- Hyperlink liability case: “If I lose there won’t BE an Internet in Canada” [Ars Technica]
- Shooting spree at Denny’s results in suit charging eatery with negligent security [PNWLocalNews.com]
- More links: “Do securities lawsuits help shareholders?” [Point of Law, Bainbridge]
- Fourth Circuit revives CSX fraud suit against asbestos lawyers [Dan Fisher, Forbes] “Asbestos defendants want automatic access to info in bankruptcy trusts” [Chamber-backed LNL]
- Creation of noncompliant consumer financial product is a criminal offense under Dodd-Frank [Josh Wright, TotM]
- Man sues over seeing contestants eat rats on NBC reality show “Fear Factor” [six years ago on Overlawyered]
Tagged as:
asbestos,
Canada,
Child Protective Services,
libel slander and defamation,
online speech,
patent trolls,
restaurants,
securities litigation,
third party liability for crime,
Washington state
“A new study in the Financial Analysts Journal casts serious doubt on the premise [of litigation social efficiency], at least when it comes to shareholder class actions. In most cases, the authors found, the litigation mainly serves to punish shareholders who have already suffered from a downturn in their stock. Only suits targeting illegal insider trading, and to a lesser extent, accounting fraud were associated with subsequent higher long-term returns.” [Dan Fisher, Forbes; Rob Bauer and Robin Braun, “Misdeeds Matter: Long-Term Stock Performance after the Filing of Class-Action Lawsuits”] More: Coyote.
Tagged as:
securities litigation
In New Haven, federal judge Janet Bond Arterton has granted sanctions against two leading plaintiff’s securities firms, Labaton Sucharow and Barroway Topaz Kessler Meltzer & Check, in an unsuccessful class action against Star Gas. “Arterton agreed with Star’s counsel from Skadden, Arps, Slate, Meagher & Flom that the class’ claims were almost entirely without merit, and that Labaton and Barroway knew as much early in the litigation. She ordered the plaintiffs firms to pay all of Star’s attorney fees and costs.” [Frankel, American Lawyer, ruling, PDF, courtesy American Lawyer]
Tagged as:
class actions,
Connecticut,
sanctions,
securities litigation
Larry Ribstein is not impressed with the $550 million settlement: “the SEC got a big payday in what would have been seen as a strike suit had it been a private securities class action lawyer.” [Truth on the Market]
Tagged as:
securities litigation
“While there is no reason to believe that the United States has become the Barbary Coast for those perpetrating frauds on foreign securities markets,” wrote Justice Scalia for the Court, “some fear that it has become the Shangri-La of class-action litigators for lawyers representing those allegedly cheated in foreign securities markets.” [Mauro/NLJ] And hurray for the presumption against extraterritoriality [Ku/Opinio Juris]
Tagged as:
extraterritoriality,
securities litigation
- Happy Father’s Day! Wayne County Prosecutor Kym Worthy proposes criminal penalties for parents who skip parent-teacher conferences [WJBK via Welch, Reason]
- Plaintiff’s bar takes to online marketing in big way, Boston’s Sokolove firm has 20-employee team [WSJ Law Blog]
- Stuart Taylor, Jr., “The Myth of the Conservative Court” [The Atlantic]
- Happy Father’s Day, cont’d: that “sex offender” neighbor could turn out to be this poor guy [Stephen Mason, Psychology Today via Alkon]
- Libertarians debate anti-discrimination law [David Bernstein and others, Cato Unbound]
- Despite trial lawyer lobbying push, Congress declines for now to create “aid and abet” securities-fraud liability [Bainbridge] “Overcriminalization in the Financial Reform Legislation” [David Rittgers, Cato]
- As international “human rights” proliferate, they’re being applied for businesses’ benefit too, to some advocates’ displeasure [Bader, Examiner]
- Happy Father’s Day, cont’d: Virginia Supreme Court rules child can sue dad after traffic collision for not strapping her properly into car seat [OnPoint News]
Tagged as:
chasing clients,
crime and punishment,
Detroit,
discrimination law,
family law,
international human rights,
schools,
securities litigation,
Virginia
The Boston Globe reports that plaintiff’s securities law firms have become cash cows for Massachusetts Attorney General Martha Coakley and Treasurer Timothy Cahill, who oversee the pension funds that strike representation deals with the lawyers. “Spokeswomen for Cahill and Coakley said the contributions played no part in the selection of the law firms, which were chosen in a competitive process five years ago.”
Tagged as:
Massachusetts,
politics,
securities litigation
“Given recent volatility in BP share price, I’m told that information related to top kill is now considered stock-market sensitive, which means it has to be managed under disclosure rules for the London and N.Y. stock exchanges,” the BP media official said in an e-mail message. “In a nutshell, that means all investors must be provided information on an equal basis. That precludes me from sending you updates as various aspects of the operation unfold.” — today’s New York Times. Readers can correct me if I’m wrong, but I believe securities law itself, and not merely private exchange rules, currently constrains companies’ release of stock-market-sensitive information.
P.S.: Ira Stoll, better informed than I about the background, makes the same point: “I agree with Mr. Carr that this is a problem, but his quarrel should be with the SEC and Reg FD, not with BP.”
Tagged as:
BP Transocean oil spill,
newspapers,
securities litigation
It seems the Senate-passed financial reform bill includes whistleblower bounties and other legal goodies. [Whistleblower Law Blog] On tax informants, see our post of Wednesday.
Bonus: Amy Kolz at American Lawyer (“Serial whistle-blower Joseph Piacentile makes millions helping the government uncover fraud. That’s how the False Claims Act is supposed to work. Or is it?”). And David Walk at Drug and Device Law assails as “dumb,” credulous, and based upon a biased sample a New England Journal of Medicine feature on whistleblowing in the pharmaceutical industry:
The New England Journal of Medicine bills itself as “the world’s most influential medical journal,” and it unquestionably publishes groundbreaking articles about medicine. But all too often in recent years the NEJM has strayed from what it knows — medicine – into what it doesn’t – law and public policy, particularly tort policy. No longer content with editorials encouraging litigation against anyone but doctors, the NEJM now publishes public policy advocacy pieces dressed up as scientific studies, with the implicit suggestion that those studies should get the benefit of the NEJM’s good name in public policy debates.
Tagged as:
pharmaceuticals,
qui tam,
securities litigation,
whistleblowers
Amid wall-to-wall reporting on the SEC’s action against Goldman Sachs over an aromatic mortgage-securities deal, this bit of NYT coverage of one of the central figures in the investigation, hedge funder John Paulson, should not pass without notice:
Amid criticism of investment strategies that profited from mortgage defaults, home foreclosures and other miseries, Mr. Paulson has also given $15 million to the Center for Responsible Lending for a center devoted to providing foreclosure assistance to troubled borrowers.
At the time of the donation, Mr. Paulson said of the center and its work, “We are pleased to help them provide legal services to distressed homeowners, many of whom have been victimized by predatory lenders.”
More on Paulson and the CRL in a March paper by Sean Higgins for the Capital Research Center. Background: Eric Gerding, The Conglomerate.
P.S. Pattern here? Ira Stoll at Future of Capitalism notes later news developments involving the contributor of a Financial Times op-ed piece that ran under the headline, “Obama Must Act to Curb Executive Greed.”
P.P.S.: And more: At Pajamas Media, Stoll takes a closer look at Paulson’s public policy involvements. And yet more. To summarize the modus operandi: Place huge bets that mortgage portfolios will suffer losses in value. Then plow millions into advocacy efforts whose effect is to worsen those losses. Maybe this is business as usual in some sense, but it’s curious to imagine lauding Paulson for his public-spiritedness.
Tagged as:
mortgages,
securities litigation
“When forced to defend their conduct and leadership role, original plaintiffs’ counsel approached the concept of candor to the tribunal as if attempting to sell me a used car,” wrote Vice Chancellor Travis Laster, ordering the replacement of shareholder lawyers in a case against Revlon Inc. “The lawsuit was consolidated from several complaints brought by law firms that Laster describes as ‘frequent filers’ — firms which often file cases on behalf of shareholders, sometimes within in minutes of a deal being announced.” [Reuters] More: Dave Hoffman, Concurring Opinions.
Tagged as:
class actions,
Delaware,
securities litigation
- “Toyota Recall: Scandal, Media Circus, and Stupid Drivers” [Dushane, Car & Driver via Prof. Bainbridge] Some parallels with Audi sudden-acceleration panic [Michael Fumento, who also questions recent numbers] More: Mike Allen, Popular Mechanics via Instapundit (“why widespread theories about electrical throttle problems and electromagnetic interference are misguided”); and Fumento on braking capacity.
- Overly hot sandwich caused $2 million worth of damages, he says, though it’s true he didn’t seek immediate medical attention [Lowering the Bar, earlier]
- Rick Esenberg on judicial recusal wars in Wisconsin and nationally [Point of Law first and second posts] In Circle of Greed, lawyer/felon Lerach flings recusal issue against late father of Carly Fiorina [Gerstein, Politico; our earlier Lerach coverage]
- And more: Notwithstanding earlier denials, Lerach did lobby President Clinton to veto securities litigation reform act [Gerstein, Politico]
- Claim by Connecticut AG and Senate candidate Richard Blumenthal: lawsuits he files “actually create jobs” [Wood, PoL]
- Setback for prolific patent litigant Bender [Zura via Joe Mullin, related]
- Following complaints by traditional video store competitors, prosecutor threatens criminal charges unless DVD rental kiosks remove R- and even PG-rated films [Indianapolis Star via Indiana Law Blog]
- Lawyers send clients to chiropractor, he sends clients to lawyers, circle of life continues [Louisville Courier-Journal via Legal Blog Watch]
Tagged as:
Connecticut,
food safety,
judges,
patent litigation,
prosecution,
Richard Blumenthal,
securities litigation,
Toyota,
Wisconsin
