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US Supreme Court imposes limits on class actions
Headline Legal News |
2011/04/28 09:32
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The Supreme Court on Wednesday limited the ability of people to combine forces and fight corporations together when they want to dispute contracts for cell phones, cable television and other services, a move consumer advocates called a crushing blow.
In a 5-4 ideological split, the high court's conservatives said businesses can block their customers from using class actions. The court said the federal arbitration law trumps state laws that invalidate contracts banning class actions.
The decision came in a dispute between AT&T Mobility and a California couple who objected to being charged around $30 in sales tax for what they were told was a free cell phone.
Businesses commonly require arbitration clauses in consumer contracts to protect them from facing their customers in court. The Supreme Court's decision means that corporations now won't need to worry about consumers, shareholders or even employees banding together and fighting them using lawsuits or arbitration, consumer groups said.
"Now, whenever you sign a contract to get a cell phone, open a bank account or take a job, you may be giving up your right to hold companies accountable for fraud, discrimination or other illegal practices," said Deepak Gupta, a Public Citizen lawyer who argued the case.
Sen. Patrick Leahy, D-Vt., chairman of the Senate Judiciary Committee, said the decision would hamper the rights of consumers to be protected by state laws.
"Class actions are an effective way to ensure consumer protection, but today's opinion by the Roberts court continued to move in a direction that undermines this access to justice for hard-working Americans," Leahy said.
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$30M award in lawsuit against Neb. broker
Court Watch |
2011/04/28 03:32
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A federal judge awarded $30 million Monday to more than 200 investors who claim they were defrauded by a pair of Nebraska City brokers.
The decision came in a class-action lawsuit filed in 2007 by former clients of Rebecca Engle and Brian Schuster in U.S. District Court in Omaha. It accuses them of improperly selling risky investments.
The $30 million judgment was against Schuster, a former Nebraska football player, and some of his investment firms. It does not include Engle.
J.L. Spray, an attorney for the investors, said Tuesday that he was pleased with the judge's decision but "it leaves the question of how much of this we'll be able to collect."
Schuster, who has since moved to Vermillion, S.D., is representing himself in court. A number listed for him rang unanswered Tuesday.
Spray said the case against Engle has been put on hold pending her bankruptcy case in Arizona.
Schuster, 37, is scheduled to stand trial next month in state court on eight counts of security fraud. Engle, 57, has pleaded guilty to two counts and awaits sentencing. Several lawsuits and arbitration claims have been filed against them.
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Court close to seating Blagojevich jury
Court News |
2011/04/28 03:31
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Jury selection in the retrial of former Illinois Gov. Rod Blagojevich is entering the home stretch after dragging on for longer than expected.
Thursday should be the last day of questioning of would-be jurors by U.S. District Judge James Zagel. He told attorneys Wednesday that opening arguments would take place Monday.
After a week of jury selection, 42 people are in the pool of potential jurors. Zagel says he only needs a few more before picking the final 12 jurors and six alternates.
One person the judge agreed to dismiss was a woman who had tickets to "The Oprah Winfrey Show." She had worried jury duty would force her to miss it.
Another person bumped was a school teacher who the judge said displayed "terrible grammar" in his questionnaire. |
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Court hears arguments in new global warming case
Court News |
2011/04/19 08:40
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The Obama administration and leading power companies are going before the Supreme Court in an effort to block a global warming lawsuit aimed at forcing cuts in greenhouse gas emissions.
The justices are hearing arguments Tuesday in the court's second climate change case in four years. A half-dozen states, New York City and three land trusts sued four private utilities and the Tennessee Valley Authority over emissions of carbon dioxide from plants in 20 states. The lawsuit says carbon dioxide, which is produced when coal, gasoline and other fossil fuels burn, is one of the chief causes of global warming.
The administration and the companies say federal courts should not set environmental policy. The administration says the Environmental Protection Agency is developing regulations that would accomplish what the states are seeking.
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Stocks open higher on earnings, housing starts
Stock Market News |
2011/04/19 08:40
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Stocks opened higher Tuesday after strong earnings reports from Johnson & Johnson, Zions Bancorporation and other companies. Housing starts increased more than expected in March. Zions rose 6 percent, the most of any company in the Standard & Poor's 500 index. The Utah bank reported a first-quarter profit after posting a loss a year ago. It also said customers were getting better at paying back loans, allowing the bank to set aside less money to cover defaults. The Dow Jones industrial average rose 41 points, or 0.3 percent, to 12,242. The Standard & Poor's 500 rose 4 points, or 0.3 percent, to 1,309. The Nasdaq composite rose 5, or 0.2 percent, to 2,740. Health care heavyweight Johnson & Johnson rose 3 percent. The company beat Wall Street's earnings expectations and raised its full-year earnings forecast. The Commerce Department reported that builders broke ground in March on the highest number of new homes in six months. Home construction rose 7.2 percent from February, more than analysts had expected. Trucking company Paccar Inc. rose 5 percent after its income and revenues beat analysts' expectations. |
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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The content contained on the web site has been prepared by Securities Law News as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case. | Affordable Law Firm Website Design by Law Promo |
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