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$40 Billion Class Action Enron Suit Blocked
Breaking Legal News | 2007/03/20 17:28

The US Fifth Circuit Court of Appeals withdrew class action status Tuesday from Enron shareholders who filed a shareholder derivative lawsuit in October 2001. US District Judge Melinda Harmon certified the class in June 2006, but defendants Merrill Lynch and Credit Suisse Group appealed to the Fifth Circuit, alleging the certification should be thrown out because it allows Merrill Lynch and Credit Suisse to be held liable for actions taken by other defendants even though they had no actual knowledge of those actions.

The Fifth Circuit held that a class action lawsuit was not the appropriate vehicle to sue the banks, thereby forcing investors to file individual lawsuits. Although this effectively ends the shareholder's ability to allege that Merrill Lynch and Credit Suisse were primary participants in fraud, the lead plaintiff in the case, the University of California Board of Regents, has already negotiated settlements with Lehman Brothers, Bank of America, Citigroup, JP Morgan Chase, and CIBC, for a total of over $7 billion in recovery.

Harmon denied a motion in February, filed by defendants Merrill Lynch and Credit Suisse, to delay the trial pending the outcome of the certification appeal to the Fifth Circuit. The case is still scheduled to resume on April 16. In January, Harmon dismissed seven defendants from the class action suit, including late ex-Enron CEO Ken Lay. Lay, convicted in May of fraud and conspiracy charges for providing investors with false and misleading financial information from 1999 up until Enron filed bankruptcy in late 2001, died suddenly of a heart attack in July.



Tribunal transcript has Cole confession
Breaking Legal News | 2007/03/20 01:20
A Yemeni portrayed as an al-Qaida operative and a member of a terrorist family confessed to plotting the bombings of the USS Cole and two U.S. embassies in Africa, killing hundreds, according to a Pentagon transcript of a Guantanamo Bay hearing.

The transcript released Monday was the fourth from the hearings the military is holding in private for 14 "high-value" terror suspects who were kept in secret CIA prisons before they were sent to the U.S. facility in Cuba last fall.

Last week, Waleed bin Attash said he helped plan the 1998 embassy bombings in Kenya and Tanzania that killed more than 200, according to the transcript. He also said he helped organize the 2000 attack on the USS Cole in which suicide bombers steered an explosives-laden boat into the guided-missile destroyer, killing 17 sailors.



Hicks seeks injunction to delay Guantanamo trial
Breaking Legal News | 2007/03/19 14:13

Australian Guantanamo Bay detainee David Hicks has filed for an injunction to delay his military trial currently scheduled to start March 20. Maj. Michael Mori, Hicks' Pentagon-appointed lawyer, said Saturday that Hicks' defense team asked the US District Court in Washington last week to order the suspension of Hicks' military commission, even though he admitted the bid will likely be unsuccessful.

The injunction bid was made in parallel with an appeal by other Guantanamo inmates to the US Supreme Court, asking for the right to challenge their detention in US courts.

US military prosecutors have charged Hicks with providing material support to terrorists. He is expected to plead not guilty.



Bush administration reinterprets species law
Breaking Legal News | 2007/03/19 02:27
Tired of losing lawsuits brought by conservation groups, the Bush administration issued a new interpretation of the Endangered Species Act that would allow it to protect plants and animals only in areas where they are struggling to survive, while ignoring places they are healthy or have already died out.

The opinion by U.S. Department of Interior Solicitor David Bernhardt was posted with no formal announcement on the department's Web site on Friday.

U.S. Fish and Wildlife Service Director Dale Hall, contacted in Washington, D.C., said the new policy would allow them to focus on protecting species in areas where they are in trouble, rather than having to list a species over its entire range.



Lawyer to Appeal Pearl Case Conviction
Breaking Legal News | 2007/03/18 11:41

The lawyer for a man convicted of killing Wall Street Journal reporter Daniel Pearl said Sunday he will file an appeal using an al-Qaida lieutenant's recent confession that he beheaded the reporter.

Khalid Sheikh Mohammed, who has claimed that he planned the Sept. 11, 2001, attacks, claimed at a U.S. military hearing at Guantanamo Bay, Cuba, that he personally beheaded Pearl for being an Israeli intelligence agent.


"I decapitated with my blessed right hand the head of the American Jew, Daniel Pearl, in the city of Karachi, Pakistan," Mohammed told a military panel, according to a Pentagon transcript released Thursday. "For those who would like to confirm, there are pictures of me on the Internet holding his head."

In 2002, an anti-terrorism court in Karachi sentenced Ahmed Omar Saeed Sheikh, a British-born militant, to death and gave three other men life in prison for involvement in Pearl's killing.

Rai Bashir a lawyer for Sheikh and the other three men said on Sunday that he will study the Pentagon documents on Mohammed's claim and file his confession as evidence to prove Sheikh's innocence.

"He has not abducted Daniel Pearl, and he, along with his co-accused, is innocent ... But now we are happy that this version has been verified by the Pentagon after the arrest of Khalid Sheikh Mohammed," Bashir told AP Television News in a separate interview on Saturday.

Pearl was abducted in January 2002 in Karachi while he was researching a story on Islamic militancy. Months after his abduction, the journalist's body, his throat slit, was found in a shallow ditch in a compound on the outskirts of the city.

Sheikh and the three others _ Salman Saqib, Fahad Naseem and Sheikh Adil _ are in jail and have appealed their convictions.

"What we were saying for so many years in our trial, in the appeal, (is) that Ahmed Omar Saeed Sheikh is innocent and he has not committed that murder," Bashir said in the interview from the eastern city of Lahore.



AT&T files lawsuit against NASCAR
Breaking Legal News | 2007/03/17 11:05

AT&T planned to file suit against NASCAR today in U.S. District Court in Atlanta in an effort to place its logo on the No. 31 Richard Childress Racing Nextel Cup car driven by Jeff Burton, AT&T spokesman Clay Owen said this afternoon.

A press release later in the day confirmed the suit had been filed and that the company wanted its logos to appear on the rear quarter panel of the team's car.

Cingular and AT&T merged earlier this year and the Cingular name currently is being phased out, but NASCAR will not allow the newly merged company to put the AT&T logos on the car because of NASCAR's contract with Nextel to sponsor its premier series.

Cingular was grandfathered in as an existing sponsor when the NASCAR-Nextel contract was negotiated in 2003. The 10-year deal began in 2004, but NASCAR has said that it does not allow grandfathered sponsors to change their name.



13 SoCal nursing homes accused of elder abuse
Breaking Legal News | 2007/03/17 10:03

More than a dozen nursing homes run by one of the largest elder care providers in the country were accused of elder abuse and fraud in a class-action lawsuit filed in Orange County Superior Court. The lawsuit accuses 13 Southern California care centers operated by Life Care Centers of America Inc. of having a long history of substandard care. The complaint was filed Thursday by attorney Stephen Garcia on behalf of thousands of California residents who lived in one of the centers between 2003 to 2007.

Garcia accused the company of seeking out "the sickest of the sick who require the most attention" because these patients would bring in higher Medicare payments. The company would then give these patients little attention, Garcia claimed.

He hopes the lawsuit will force the court to order an independent monitor to oversee the company's centers.

"These nursing homes are supposed to be examined every 15 months, but sometimes it's two or three years between investigations," he said. "So basically these places operate unpoliced even though they're supposed to be policed."

A spokeswoman for Life Care in Cleveland, Tenn., could not be reached Friday.




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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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