Thursday, November 8, 2012

Limits on class-action lawsuits at Supreme Court

The Supreme Court appeared divided Monday in two cases in which businesses are trying to make it harder for customers or investors to band together to sue them.

The justices heard arguments in appeals from biotech company Amgen Inc. and cable provider Comcast Corp. that seek to shut down class-action lawsuits against the businesses.

Amgen is fighting securities fraud claims that misstatements about two of its drugs used to treat anemia artificially inflated its stock price. Comcast is facing a lawsuit from customers who say the company's monopoly in parts of the Philadelphia area allowed it to raise prices unfairly.

Last year, the Supreme Court raised the bar for some class-action suits when it sided with Wal-Mart against up to 1.6 million of its female employees who complained of sex discrimination. In the Wal-Mart case, the court said there were too many women in too many jobs at the nation's largest private employer to wrap into one lawsuit.

Class actions increase pressure on businesses to settle suits because of the cost of defending them and the potential for very large judgments.

Connecticut pension funds that sued Amgen said lower courts correctly ruled that the case could move forward as a class action. The issue at the Supreme Court is whether the pension funds have to show at an early stage of the lawsuit that Amgen's claims about the safety and effectiveness of the drugs Aranesp and Epogen affected the stock price.

Several justices indicated they had no problem with the idea that, unlike in the Wal-Mart case, all the Amgen investors were in the same boat and could clear an early hurdle that tripped up the Wal-Mart employees.

Thursday, August 23, 2012

Kansas Supreme Court to hear coal lawsuit

The Kansas Supreme Court this month will consider a challenge by environmental groups to a state permit for construction of a $1.5 billion coal-fired power plant in southwest Kansas.
The high court will hear oral arguments Aug. 31 in Topeka on the validity of the state permit issued in 2010 to start construction of the 895-megawatt plant near Holcomb, according to The Topeka Capital-Journal.
Sierra Club and Earthjustice contend in the lawsuit that the Kansas Department of Health and Environment improperly granted regulatory approval to the project, which they say is unnecessarily damaging to the environment. The organizations want the permit overturned.
Development partners Sunflower Electric Power Corp., of Hays, and Colorado-based Tri-State Generation and Transmission Association maintain that the state's permit is sound.
The Sunflower project has been on indefinite hold. In January, a federal judge delayed the project until a federal environmental impact study could be completed.
Sunflower spokeswoman Cindy Hertel said the cooperative's management would not comment before the state Supreme Court's review. Sunflower serves 400,000 people in Kansas, but most of the new electricity would be transferred to other states.

Tuesday, August 7, 2012

Tech titans face off in court over iPhone, iPad

Two tech titans will square off in federal court Monday in a closely watched trial over control of the U.S. smartphone and computer tablet markets.
Apple Inc. filed a lawsuit against Samsung Electronics Co. last year alleging the world's largest technology company's smartphones and computer tablets are illegal knockoffs of its popular iPhone and iPad products. The Cupertino-based company is demanding $2.5 billion in damages, an award that would dwarf the largest patent-related verdict to date.
Samsung counters that Apple is doing the stealing and that some of the technology at issue — such as the rounded rectangular designs of smartphones and tablets — has been industry standards for years.
The U.S. trial is just the latest skirmish between the two over product designs. A similar trial began last week, and the two companies have been fighting in courts in the United Kingdom and Germany. The case is one of some 50 lawsuits among myriad telecommunications companies jockeying for position in the burgeoning $219 billion market for smartphones and computer tablets.
In the United States, U.S. District Judge Lucy Koh in San Jose last month ordered Samsung to pull its Galaxy 10.1 computer tablet from the U.S. market pending the outcome of the trial, though the judge barred Apple attorneys from telling the jurors about the ban.

Wednesday, June 13, 2012

Ohio man found guilty in septic tank body case

A jury has convicted a man of aggravated murder and other charges in the death of his estranged wife, who was found strangled in a septic tank in southeast Ohio last year.

Hocking County jurors in Logan deliberated for about four hours before returning a verdict Tuesday in the trial of 27-year-old William Inman II. He could face the death penalty when he's sentenced.

His parents also are charged. They are being tried separately in the slaying of his 25-year-old wife, Summer.

Authorities say she was abducted in Logan, strangled with a zip tie and dumped in an underground septic tank behind a church in March of last year.

Inman's parents have pleaded not guilty. They'll be tried later this year.

Friday, May 25, 2012

Court won't consider giving man new trial

The Supreme Court won't consider giving a man convicted in the death of a Texas toddler a new trial because the medical examiner changed her opinion on the cause of death.

The high court on Monday refused to hear an appeal from Neil Hampton Robbins, convicted in the death of 17-month-old Tristen Skye Rivet, who died on May 12, 1998.

At the trial, Dr. Patricia Moore testified that Tristen's death was a homicide caused by asphyxia. But Moore later changed her opinion and said the cause of death was undetermined. Robbins asked for a new trial but the Texas Court of Criminal Appeal refused, saying there is no conclusive evidence of Robbins' innocence and that it wasn't proven that the state purposefully used false testimony.

Wednesday, April 11, 2012

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Thursday, March 22, 2012

Vegas woman skips court in scissors death case

A mother accused of killing her 6-year-old daughter with scissors refused to leave her jail bed for her first court appearance Wednesday, drawing angry words from a Las Vegas judge and concern from her lawyer about her mental state.

Las Vegas Justice of the Peace Joe M. Bonaventure reset Danielle Yvonne Slaughter's arraignment on a murder with a weapon charge for Friday, telling a jail supervisor by closed-circuit video that he wants Slaughter brought forcibly to court if necessary.

"I have concerns with delaying a case with such a serious charge," the judge said.

Slaughter was being held in supervised isolation at the Clark County jail, and Deputy Public Defender Andrea Luem told the judge she was worried about Slaughter's mental condition. Luem said she hoped to obtain a psychological evaluation.

"My concern is whether she's able to understand the charges," Luem said.

Several friends and supporters of Slaughter attended the brief court hearing and accompanied Luem back to her office afterward. They refused to speak with reporters or identify themselves.

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NY appeals court gives SEC-Citigroup deal new life

A federal appeals court says a judge may have overstepped his authority when he blocked a $285 million settlement over toxic mortgage securities.

The 2nd U.S. Circuit Court of Appeals in Manhattan issued a written ruling Thursday. It suspends the lower court order until it can fully study the case.

Judge Jed Rakoff last year found the deal between the Securities and Exchange Commission and Citigroup to be inadequate. Both the SEC and Citigroup appealed.

The settlement came after the SEC had accused Citigroup of betting against a complex mortgage investment in 2007. It said the firm made $160 million in the process while investors lost millions.

Rakoff criticized the deal because it did not require Citigroup to admit wrongdoing.

Florida CVS stores' suspension put on hold

A federal appeals court has put on hold the suspension of two Florida CVS pharmacies that would have prevented them from selling controlled substances.

The court on Wednesday stopped the suspension while it considers an appeal from the stores. The Drug Enforcement Administration had issued the suspension because of alleged lax enforcement of restrictions on a powerful painkiller.

The DEA says the pharmacies were dispensing the painkiller oxycodone far in excess of legitimate needs. CVS says it has taken steps to reduce the prescriptions.

On Tuesday, a federal judge denied the CVS stores' request for a preliminary injunction in the case, but the stores immediately appealed.

The appeals court has already put on hold DEA's suspension of Cardinal Health's Lakeland, Fla.-based center that supplied the stores.

US court looks at possible Edwards lawyer conflict

A federal judge planned to hear Thursday whether former North Carolina Sen. John Edwards would create problems for his upcoming trial by hiring lawyers who represented his mistress in a lawsuit over the couple's alleged sex tape.

The hearing scheduled in Greensboro aims to air whether lawyers Alan Duncan and Allison Van Laningham could use insider knowledge of Edwards' mistress Rielle Hunter at the former presidential candidate's trial beginning next month.

Duncan and Van Laningham represented Hunter in a lawsuit that ended last month with a settlement that ordered all copies of the tape destroyed.

Federal prosecutors have said they'll likely call Hunter as a witness at Edwards' trial on campaign finance charges that he used nearly $1 million from two wealthy donors to hide the pregnant Hunter as he sought the White House in 2008. He has pleaded not guilty.

"To whom would Mr. Duncan's and Ms. Van Laningham's allegiance lie? Their new client or the one they represented as recently as two weeks ago in a lawsuit seeking to enforce those very privacy rights?" federal prosecutors said in a court filing last week.

Because of their previous attorney-client relationship with Hunter, Duncan and Van Laningham might take it easy on her if they were questioning Hunter under oath, prosecutors said.