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 Legal news from Thursday, June 03, 2004 |
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Thursday, June 03, 2004 |
Enron witness clouds government's case on the eve of trial
Winston G. at 11:49 PM ET
The first trial against former Enron executives, scheduled to begin Monday, may have hit a snag, the New York Times reports. Attorneys for the government have notified defense lawyers that certain statements from former Enron CFO Andrew Fastow, who previously had pled guilty to fraud and was expected to be a key witness for the prosecution, may cast doubt on whether defendants believed they were acting fraudulently during a transaction critical to the case. The controversy revolves around whether Merrill Lynch assumed the risk of ownership in a $28 million purchase of power barges from Enron. The sale came at a particularly sensitive time for Enron when the company wanted to show a $12 million profit from the sale. The government contends that Enron provided Merrill Lynch with assurances that LJM2, a partnership run by Fastow, would buy back the barges after Enron reported the profit from their sale. Fastow's recent comments have suggested, however, that he made no explicit guarantee that LJM2 would purchase the barges and that Merrill Lynch defendants may have believed that LJM2 was a separate entity. The comments cast some doubt over what was thought to be the most straightforward of the Enron prosecutions. The Houston Chronicle has more. See also this history of LJM2 [PDF].
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Iraqi foreign minister demands full sovereignty for interim government
Chris Buell at 4:54 PM ET
Following up on an earlier report on JURIST's Paper Chase, the Iraqi Foreign Minister Hoshyar Zebari today said the Iraqi interim government should have complete sovereignty when it assumes power at the end of June, including a say on whether US-led forces remain. Zebari made the demand in a speech before the UN Security Council, which today debated a draft resolution proposed by the US and UK for the transition of control in Iraq. However, US Secretary of State Colin Powell has said that the US will not cede control over security forces to the interim government. Control over US-led troops has been a stumbling block for the proposed resolution. BBC News has more.
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Venezuelan president to face recall election
Chris Buell at 4:44 PM ET
Opponents of Venezuelan President Hugo Chavez obtained enough signatures to hold a referendum on whether Chavez should finish his term, which will expire in 2006. Results of procedings to recount signatures in favor of a referendum showed over 2.5 million signatures. Only 2.44 million are needed to trigger the recall vote. Officials said no date had been set yet for a referendum. BBC News has more.
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Jury finds former Ukrainian PM guilty on 29 counts
Chris Buell at 3:34 PM ET
Former Ukrainian Prime Minister Pavlo Lazarenko was convicted today by a federal jury on charges of money laundering, wire fraud and extortion. Lazarenko sought political asylum in the US during the 1999 presidential elections in Ukraine because of several assasination attempts against him. Lazarenko was convicted of 29 charges, which his attorneys said could result in a 5-year prison sentence. Many of the initial charges against Lazarenko were dismissed by the judge. AP has more.
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Missouri Supreme Court says gay marriage vote should be in August
Chris Buell at 3:22 PM ET
The Missouri Supreme Court ruled today that a referendum on a state constitutional amendment to ban gay marriage should be put on the August ballot. The court's 6-1 ruling, which only advises but does not require an August vote, is seen as a victory for Democrats who hoped to keep the issue from November ballots and possibly bolstering Republican turnout in that election. Democratic Gov. Bob Holden supported the August vote, while Republican Secretary of State Matt Blunt, who is running against Holden in November, pushed for the later date. Legislators approved the proposed amendment last month. The court's opinion can be found here. AP has more.
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Wisconsin AG files suit against drug makers over wholesale pricing
Chris Buell at 2:28 PM ET
Wisconsin Attorney General Peg Lautenschlager filed suit today against 20 drug manufacturers alleging that the companies inflated prices and violated state wholesale pricing laws beginning in 1992. The suit seeks to force the manufactuers, which include Pfizer, Johnson & Johnson and Bayer Corp., to set up a restitution program for state residents and health programs. Attorneys general in 13 other states have already filed similar pricing suits which are still pending. The Wisconsin Department of Justice offers a press release. AP has more.
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Human rights group urges US to conduct independent investigation into abuse
Chris Buell at 2:12 PM ET
New York-based Human Rights Watch has called on the US to create an independent investigation into which officials authorized the use of coercive tactics against detainees in Iraq, Afghanistan and Guatanamo Bay. The group said the investigation should be bipartisan and should have the power to appoint a special prosecutor. Executive Director Kenneth Roth said he has already made the proposal to national security advisor Condoleezza Rice, who did not say whether such an investigation would be opened. Human Rights Watch claims that the US has violated the Geneva Conventions and the UN Convention against Torture through the use of coercive tactics. Reuters has more.
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LIVE WEBCAST ~ UN Security Council debate on Iraq resolution
Chris Buell at 1:55 PM ET
The UN is webcasting today's Security Council debate on the US-UK's proposed resolution for the Iraqi interim government. The debate will begin at 3 PM ET and will be carried on Channel 3 of the UN's Webcast feed, which can be accessed here. AP offers an overview of the different nations' positions.
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Sierra Leone war crimes trial adjourned until Tuesday
Chris Buell at 1:37 PM ET
The first trials for war crimes in the Special Court for Sierra Leone began today, but were later adjourned until next Tuesday after one of the defendants fired his defense counsel. Sam Hinga Norman, one of the three militia leaders on trial, dismissed his attorneys, saying he wanted to represent himself. The opening statement of prosecutor David M. Crane can be found here [PDF]. BBC News has more.
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Two US Marines plead guilty to shocking Iraqi captive
Chris Buell at 12:54 PM ET
Two US Marines pleaded guilty to giving an Iraqi prisoner electric shocks while they were on guard at Al Mahmudiya prison south of Baghdad in early April, a military spokesman announced today. The two men, Pfc. Andrew J. Sting and Pfc. Jeremiah J. Trefney, entered their pleas at a May 14 court-martial in Iraq. Both Trefney and Sting were sentenced, while two other men involved in the shocking are still awaiting court action. The incident occurred several months after the prison abuses at Abu Ghraib. The information was released by the 1st Marine Expeditionary Force. AP has more.
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Seven former Symbol Technologies executives indicted
Chris Buell at 12:18 PM ET
Seven former executives for Symbol Technologies have been indicted for their role in inflating the company's reported earnings by more than $200 million, according to the US Attorney's office in the Eastern District of New York. A press conference is scheduled for later today to announce the details of the indictment. The New York Times reported earlier today that Symbol was expected to announce a settlement with the SEC as well. AP has more.
UPDATE: Business Wire is reporting the details of Symbol's settlement with the SEC and the US Attorney's Office.
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Jury orders Ford to pay $122 million in SUV rollover case
Chris Buell at 11:31 AM ET
A San Diego jury has awarded a woman paralyzed when her Ford Explorer overturned $122.6 million in compensatory damages in the first jury finding that SUVs are defective due to their rollover rate. The jury award exceeded that sought by the plaintiff, and Ford said it would appeal the verdict, which was issued Tuesday. The jury began its deliberations on punitive damages on Wednesday and continues today. The Los Angeles Times has more.
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Judge rules medical marijuana ads may not be blocked
Chris Buell at 10:52 AM ET
A federal judge has ruled that a law restricting advertising on transit systems in support of the medical use of marijuana is unconstitutional. The law, which was passed earlier this year by Congress, pulls federal funding for Metro and other transit agencies if the ads are allowed. Judge Paul L. Friedman, of the US District Court for the District of Columbia, said the law violates free speech. The suit was brought by the ACLU and several other drug advocacy groups after ads they submitted were rejected by Metro. An ACLU press release on the case can be found here. The court opinion can be found here. AP has more.
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BREAKING NEWS ~ CIA Director George Tenet resigns
Chris Buell at 10:40 AM ET
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Chalabi probe to include polygraph testing at Pentagon
Chris Buell at 10:01 AM ET
Following up on a story reported Wednesday on JURIST's Paper Chase, federal investigators seeking information on who may have disclosed classified information about Iran to Ahmad Chalabi are conducting polygraph examinations of top-level Pentagon officials. Access to the classified information, which allegedly detailed how the US had cracked a code used by Iranian intelligence, was limited to a small number of officials. The investigation is being conducted by the FBI. The New York Times has more.
UPDATE: The Christian Science Monitor has an overview of news coverage surrounding the investigation into Ahmad Chalabi.
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Iraqi interim leaders demand say on UN resolution
Chris Buell at 9:31 AM ET
Top leaders in Iraq's interim government are seeking input into a UN draft resolution that determines how much control the interim government will actually have. Iraqi Foreign Minister Hoshyar Zebari said he expected to play a role in drafting the resolution. The UN Security Council is scheduled to discuss the proposed plan by the US and UK today. Meanwhile, Grand Ayatollah Ali al-Sistani, the most powerful of Iraq's Shiite clerics, backed the UN-appointed interim government set to take control of Iraq at the end of the month, though Sistani expressed some reservations. Sistani emphasized the need for a new UN resolution to restore Iraqi sovereignty and legitimate elections. BBC News has more.
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Bush consults outside counsel in CIA name leak investigation
Chris Buell at 8:50 AM ET
President Bush has met with a Washington attorney about an ongoing grand jury investigation to determine who in the administration leaked the name of an undercover CIA agent to the media, according to the White House. Bush is not the subject of the investigation, but he may be interviewed by special prosecutor Patrick Fitzgerald or may need to testify in the investigation. Fitzgerald was appointed to investigate six months ago, and has been bringing witnesses before the grand jury since January. Bush may have sought outside counsel because discussions with White House counsel Alberto Gonzales are not covered by the attorney-client privilege. Bush has called on members of the administration to cooperate in the investigation into who leaked information that Valerie Plame, wife of former ambassador Joseph Wilson, was an undercover CIA operative. Newsday has more.
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Law in the major papers ~ Thursday, June 3
Rebecca at 8:23 AM ET
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Law in the foreign press ~ Thursday, June 3
Zak at 8:23 AM ET
Here are some of the legal stories featured in Thursday's foreign press.... In South Africa, the Independent Online covers the new Biodiversity Act. The Act requires the filing of thorough environmental impact statements prior to introducing genetically modified organisms and provides for community profit sharing when indigenous knowledge is used. South Africa is ranked the third most biologically important nation in the world.... Israel's Jerusalem Post follows changes in regulations ordered by the High Court to reduce the number of stray cats killed. The regulations, drafted by the Field Veterinarian Services Authority, delegated the decisions about extermination to a private company whose financial interests lay in destroying as many cats as possible. The Court noted that short of a health threat to humans, great weight must be given to the rights and protection of animals. click for the previous foreign press review
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US law and business press review ~ Thursday, June 3
Maryam at 8:00 AM ET
In Thursday's US law and business press, the New York Law Journal reports that a panel of the Second US Circuit Court of Appeals has overturned 81 of 84 guilty counts in an insider trading case.... The Fulton County Daily Report reports on how a rare mediation tool, a summary jury trial, has been used in an effort to settle a misrepresentation suit against PricewaterhouseCoopers.... According to the Minneapolis-St. Paul Business Journal, the MN Court of Appeals has upheld a $32 million damages award against Lone Star Technologies Inc. in its dispute with Cargill Inc.... The ABA Journal reports on a NY federal court's ruling that an attorney may sue a former client for allegedly rejecting a large settlement offer merely to prevent the attorney from collecting a contingency fee.... FindLaw's Writ features Cardozo law professor Marci Hamilton's analysis of the US Supreme Court's recent federalism cases, as well as Columbia law professor Catherine Sharkey's guest commentary on CA Governor Arnold Schwarzenegger's proposal that 75% of all punitive damage awards go to the state.click for the previous US law and business press review
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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.
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