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Supreme Court allows Stanford Ponzi scheme suits
Legal Focuses |
2014/02/28 16:11
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The Supreme Court ruled Wednesday that victims of former Texas tycoon R. Allen Stanford's massive Ponzi scheme can go forward with class-action lawsuits against the law firms, accountants and investment companies that allegedly aided the $7.2 billion fraud.
The decision is a loss for firms that claimed federal securities law insulated them from state class-action lawsuits and sought to have the cases thrown out. But it offers another avenue for more than 21,000 of Stanford's bilked investors to try to recover their lost savings.
Federal law says class-action lawsuits related to securities fraud cannot be filed under state law, as these cases were. But a federal appeals court said the cases could move forward because the main part of the fraud involved certificates of deposit, not stocks and other securities.
The high court agreed in a 7-2 decision, with the two dissenting justices warning that the ruling would lead to an explosion of state class-action lawsuits.
Stanford was sentenced to 110 years in prison after being convicted of bilking investors in a $7.2 billion scheme that involved the sale of fraudulent certificates of deposits from the Stanford International Bank. They supposedly were backed by safe investments in securities issued by governments, multinational companies and international banks, but those investments did not exist. |
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Pakistan court dismisses Musharraf medical request
Legal Focuses |
2014/02/03 16:21
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A Pakistani court hearing the case against former military ruler Pervez Musharraf on charges of high treason rejected Friday a request that he be allowed to go abroad for treatment, his lawyer and a court official said.
Instead, they said, it issued an arrest warrant for the retired general. But the warrant is "bailable" — meaning he can avoid jail by applying for bail and depositing a bond of 2.5 million rupees (about $20,000). The court said it didn't have the authority to remove his name from the exit control list which restricts him from going abroad.
While Musharraf can't leave the country, it's unlikely he would actually end up in handcuffs immediately and still unclear whether he will ever appear in court — a scene that could be humiliating not just to Musharraf, but to the country's politically powerful military.
The judges' decision is the latest in the legal battles that Musharraf has faced ever since returning to his homeland in March 2013 to take part in the country's elections. Instead of returning to a hero's welcome, he was almost immediately hit with a barrage of cases, threats from the Pakistani Taliban and was disbarred from running in the election.
A lawyer for Musharraf, Mohammed Ali Saif, said the judges ruled that Musharraf must appear in court on Feb. 7.
"We are of the view that no reasonable excuse has been offered to justify the failure of the accused to appear before the court, there is no alternate except to issue a bailable warrant of arrest for the accused," said the court registrar Abdul Ghani Soomro, reading from the court's decision.
Musharraf seized power in a 1999 coup, but became deeply unpopular and was forced to step down in 2008. He later left the country. The high treason case stems from his 2007 decision to impose a state of emergency and detain judges. |
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Viacom, Fox want to run anti-smoking ads too
Legal Focuses |
2014/01/30 15:49
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More TV networks want to gain from tobacco companies' mandate to run anti-smoking ads that will cost tens of millions of dollars.
Fox Broadcasting and the company behind MTV, Comedy Central and BET argue that a court-ordered plan to air anti-tobacco ads on ABC, CBS and NBC won't do a good job reaching young adult and black viewers. Those populations were aggressively targeted by the tobacco industry and are areas of concern for the public health community.
Fox, which is owned by Rupert Murdoch's Twenty-First Century Fox Inc., and Viacom Inc. are asking the U.S. District Court in Washington, D.C., to include its channels in the anti-smoking ad purchase.
The required ads stem from a 2006 ruling that the nation's largest cigarette makers concealed the dangers of smoking for decades. A judge ordered the tobacco companies to pay for corrective statements related to issues such as the adverse health effects of smoking, the addictiveness of smoking and nicotine and the negative health effects of secondhand smoke. The companies involved in the case include Richmond, Va.-based Altria Group Inc., owner of the biggest U.S. tobacco company, Philip Morris USA; No. 2 cigarette maker, R.J. Reynolds Tobacco Co., owned by Winston-Salem, N.C.-based Reynolds American Inc.; and No. 3 cigarette maker Lorillard Inc., based in Greensboro, N.C.
Along with the TV ads, the tobacco companies are also meant to publish statements in newspapers, websites and on cigarette packs.
The tobacco companies and the federal government last month agreed on how to publish the statements. The court must still approve the deal.
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High court rejects Ohio killer's last-minute plea
Legal Focuses |
2014/01/16 15:16
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The state made preparations on Wednesday to use a never-tried lethal drug combination to put a man to death for the slaying of a pregnant woman that went unsolved until he inadvertently helped authorities, and the U.S. Supreme Court refused to block the execution.
Dennis McGuire, jailed on an unrelated assault charge, told investigators he had information about the woman's Feb. 12, 1989, death. His attempts to blame the crime on his brother-in-law quickly unraveled, and soon he was accused of being Joy Stewart's killer, prosecutors said. More than a decade later, DNA evidence confirmed McGuire's guilt, and he acknowledged that he was responsible in a letter to Gov. John Kasich last month.
The state planned to execute McGuire on Thursday with a new process adopted after supplies of its previous drug dried up when the manufacturer put it off limits for capital punishment. The two-drug combination has never been used in a U.S. execution.
The state opposed McGuire's last-minute appeal, in which he claimed a jury never heard the full extent of his chaotic and abusive childhood. |
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Court order needed to stop Pa. center utilities
Legal Focuses |
2014/01/02 15:01
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A judge says a court order is needed to shut off lights and other utilities at Pittsburgh's struggling August Wilson Center for African American Culture.
Allegheny County Judge Lawrence O'Toole on Monday approved an order sought by the center's court-appointed conservator to keep the downtown facility running.
The ruling covers water and electricity as well as sewage treatment, telephone and Internet services.
An attorney for Duquesne Light said the center owes the electric company $38,000 and is running bills of $10,000 a month.
The center, which opened in 2009, is named after late Pulitzer prize-winning playwright August Wilson, who was born in Pittsburgh.
Dollar Bank began foreclosure proceedings in September after the center defaulted on its $7 million mortgage. |
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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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