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Andrew Bleiman Joins Cheng Cohen LLC in Chicago
Law Firm News | 2007/08/13 18:09

Cheng Cohen LLC, a Chicago-based firm focusing in corporate, franchise, technology and business litigation today announced that Andrew Bleiman will join the firm as counsel.
"Andrew is a smart, tough and experienced litigator," said Fredric "Ric" Cohen, partner of Cheng Cohen LLC. "His addition to the Cheng Cohen firm is an important step toward our goal of building the finest full service boutique law firm around."
   With nearly a decade of commercial and civil litigation experience, Bleiman was most recently an associate attorney with DLA Piper US in Chicago where his practice concentrated on commercial and civil litigation.
   Bleiman attended Chicago-Kent College of Law at the Illinois Institute of Technology where he received his J.D. with Honors. He received his Bachelor of Arts in English from The University of Texas at Austin.
   Founded in 2007, Cheng Cohen LLC provides experience in a wide range of
legal matters including corporate, litigation and franchising. The firm innovatively tailors legal services to meet each of their clients' specific needs effectively and efficiently.
   Cheng Cohen LLC is located l101 West Fulton Market, Suite 200 Chicago,
IL 60607. The Firm's phone number is (312) 243-1701.

For more information,
please visit the corporate Web site at http://www.chengcohen.com.


Reyes Verdict Impacts Valley Executives
Court Feed News | 2007/08/13 17:55
In the cubicles and offices of Silicon Valley, some executives and company officials are quietly worrying about the impact of a jury's decision convicting former Brocade Communications Chief Executive Greg Reyes of securities fraud, according to several attorneys involved in other backdating cases.

Tuesday, Reyes was found guilty of 10 criminal charges, including conspiracy and securities fraud, in the first criminal case associated with stock-option backdating. Many local attorneys following the case had predicted the prosecution would have a tough time proving that Reyes intended to defraud investors in part because he did not personally benefit.

"Before, people were waiting and holding their breath," said Darren Robbins, an attorney at Lerach Coughlin Stoia Geller Rudman & Robbins in San Diego who is involved in several cases against companies still under investigation by regulators and the Department of Justice. "Many defendants are, at least what we are hearing, is they are trying to pick themselves back up from the surprise."

Since the first disclosures of stock-option backdating in early 2005, more than 200 investigations have been launched nationwide. In the valley, where the biggest number of internal and outside probes are being conducted, there have been two indictments. In addition to Reyes, who plans to appeal, prosecutors earlier this year filed a criminal case against Kent Roberts, the former general counsel at McAfee.

Backdating refers to the practice of going back in time, typically to when a stock's price was lower, to pick the date for option grants, increasing the odds that the recipient could sell the stock at a profit. While the practice is not illegal, prosecutors said failing to disclose the change and the impact on a company's financial statements is fraudulent.

Some executives who already have participated in a company's internal investigation may be especially nervous, said Christopher Cooke, a partner with Cooke, Kobrick & Wu in San Mateo and a former enforcement attorney with the Securities and Exchange Commission.

That's because one of the key pieces of testimony in the Reyes case came from Craig Martin, an attorney who conducted Brocade's internal investigation. Martin testified that Reyes told him the company did not engage in backdating, contradicting a key part of the defense argument.

During the trial, Reyes' attorneys acknowledged that Brocade had engaged in periodic backdating to hire the best talent. But they said the company's finance department believed it had properly accounted for the option grants, that Reyes relied on their expertise and that he had no intent to deceive or defraud investors and regulators.

"It would make CEOs who were asked to provide information to their audit committee pretty nervous about doing that," Cooke said. "If the clients say anything that can be shown to be inconsistent," he said, that could later come back to haunt them as evidence of intent.

Matt Jacobs, an attorney with McDermott Will & Emery in Palo Alto and a former assistant U.S. attorney for the Northern District, said, "Certainly, everyone involved in these cases has taken note of the jury's verdict, and the government will probably be emboldened to bring more criminal cases."

He noted that there are still many cases in which the Justice Department hasn't made a decision about whether to pursue criminal charges.

But many other attorneys say every case is different and that Reyes' conviction may not spawn more criminal charges. Prosecutors in Reyes' case, in an interview with the Mercury News on Wednesday, gave no indication that they plan to unleash new criminal charges anytime soon.

"It does depend on the facts of a particular case," said Assistant U.S. Attorney Tim Crudo. "I don't know if it's helpful to lump them all together."


Former Corrections Officer Sentenced to 21 Months
Lawyer Blog News | 2007/08/13 17:44
Ricky Bernard, a former Bureau of Prisons corrections officer at the Federal Prison Camp in Bryan, Texas, was sentenced today to 21 months in prison for engaging in sexual misconduct with three inmates. Bernard previously pleaded guilty in federal court in Houston to federal civil rights charges.

At his guilty plea on Oct. 20, 2006, Bernard admitted that on numerous occasions he had sexual contact with inmates under his supervision while on duty as a Bureau of Prisons officer in 2003 and 2004. Bernard also admitted that he subsequently lied about the sexual misconduct with inmates to federal law enforcement officers, including by sworn affidavit.

“Sexual misconduct by an officer is very disturbing,” said Wan J. Kim, Assistant Attorney General for the Civil Rights Division of the United States Department of Justice. “When law enforcement officials violate the law and the public trust, we will not hesitate to prosecute them.”

The Civil Rights Division is committed to the vigorous enforcement of every federal criminal civil rights statute, such as those laws that prohibit the willful use of excessive force or other acts of misconduct by law enforcement officials. The Division has compiled a significant record on criminal civil rights prosecutions. In the past six fiscal years, as compared to the previous six years, the Criminal Section filed 25 percent more color of law cases, charged 15 percent more defendants, and obtained convictions of 50 percent more defendants.

The investigation was spearheaded by Special Agent Monte Carson of the Justice Department’s Office of Inspector General. Civil Rights Division Trial Attorneys Karima Maloney and Jennifer Dominguez prosecuted this case.


The Brauldi Law Firm Announces Class Action Suit
Class Action News | 2007/08/13 17:22
The Brualdi Law Firm announces that a securities class actionlawsuit has been commenced in the United States District Court for theNorthern District of Illinois on behalf of purchasers of Motorola, Inc.("Motorola") (NYSE:MOT) publicly traded securities during the periodbetween July 19, 2006 and January 4, 2007 (the "Class Period").

No class has yet been certified in the above action. Until aclass is certified, you are not represented by counsel unless youretain one. If you purchased Motorola common stock during the perioddescribed above, you have certain rights, and have until no later than60 days, in which to move for Lead Plaintiff status. Any member of thepurported class may move the Court to serve as lead plaintiff throughcounsel of their choice, or may choose to do nothing and remain anabsent class member.

To be a member of the class you need not take any action atthis time, and you may retain counsel of your choice. If you wish todiscuss this action or have any questions concerning this Notice oryour rights or interests with respect to these matters, please contactTali Leger, Director of Shareholder Relations at The Brualdi Law Firm,29 Broadway, Suite 2400, New York, New York 10006, by telephone tollfree at (877) 495-1877 or (212) 952-0602, by email totleger@brualdilawfirm.com or visit our website athttp://www.brualdilawfirm.com/

The complaint charges Motorola and certain of its officers anddirectors with violations of the Securities Exchange Act of 1934.Motorola builds, markets and sells products, services and applicationsthat make connections to people, information and entertainment throughbroadband, embedded systems and wireless networks.

The complaint alleges that in the summer of 2006, Motorola'spoor financial performance had depressed its stock price to below $19per share. In order to artificially inflate the price of Motorolastock, defendants began a series of false and misleading statementsregarding the Company's business and prospects. Specifically,defendants repeatedly told investors to expect strong growth in salesand revenues. On October 17, 2006, defendants announced that Motorolahad failed to meet its revenue and sales projections. As a result ofthis announcement, Motorola's stock price declined over 7% in twotrading days. Then on January 4, 2007, defendants announced thatMotorola's fourth quarter 2006 results also failed to meetexpectations. This time, the Company's stock price declined almost 8%.

CONTACT:  The Brualdi Law Firm
Tali Leger, Director of Shareholder Relations
(877) 495-1877
(212) 952-0602
tleger@brualdilawfirm.com
http://www.brualdilawfirm.com/


U.S. court upholds ban on some DirecTV ads
Lawyer Blog News | 2007/08/10 16:24

A U.S. appeals court on Thursday upheld a lower court's decision that prohibits satellite television operator DirecTV Group Inc from airing TV advertisements that claimed superior service in markets where Time Warner Cable Inc operates. But the U.S. Court of Appeals for the Second Circuit ruled that the lower court erred in preliminarily blocking DirecTV's Internet advertisements, saying the ads were "not even remotely realistic."

The appeals court also set aside a part of the lower court's order, saying the way it was worded "could be construed to prohibit the unfavorable comparison of even Time Warner Cable's analog programming."

Analog programming refers to basic cable packages, as opposed to digital packages that allow expanded programming and additional features such as high definition (HD) or video on demand.

The television ads, which featured ex-Star Trek actor William Shatner and pop star Jessica Simpson, aired last December and in January. They ended with the tag line: "For an HD picture that can't be beat, get DirecTV."

Time Warner Cable filed the lawsuit in December, accusing DirecTV of false advertising and deceptive business practices.

In February, Judge Laura Taylor Swain of the U.S. District Court in the Southern District of New York granted a preliminary injunction against DirecTV preventing it from running ads in Time Warner Cable's markets that disparaged the quality of Time Warner's high-definition programming.

DirecTV was also ordered then to take down any similar advertisements on its Web site, or other sites.

The Internet ads include one in which the picture quality of DirecTV is compared with that of "other TV," which the ad later identifies as representing basic cable, according to the appellate court ruling.

The DirecTV side of the screen shows a clear image of football player Kevin Dyson making a touchdown at the Super Bowl, while the image on the "other TV" side is blurry, according to the ruling.

"It is difficult to imagine that any consumer, whatever the level of sophistication, would actually be fooled by the Internet advertisements into thinking that cable's picture quality is so poor that the image is 'nearly entirely obscured,'" the court ruled.



Candidates stop short on same-sex marriage
U.S. Legal News | 2007/08/10 16:19

Melissa Etheridge confronted Hillary Rodham Clinton about her husband's gay rights record, accusing Bill Clinton of throwing gay and lesbian supporters "under the bus" by pushing for the "Don't Ask, Don't Tell" policy and the Defense of Marriage Act. The Democrats' top three candidates, including Clinton, pledged support for gay rights at the first-ever nationally televised same-sex issues presidential forum - but they and other Democratic candidates attending refused to back gay and lesbian marriages.

Facing successive 15-minute interviews by gay rights advocates in Los Angeles last night, Clinton, Barack Obama and John Edwards all vowed to battle for gay, lesbian and transgender rights. But they stopped short of endorsing gay marriage - a hot-button culture-war issue that could alienate millions of independents and religious conservatives.

Etheridge, who announced she was a lesbian shortly after Bill Clinton was inaugurated in 1993, expressed bitterness at his inability to pass gay rights measures he promised during the campaign.

"It was a very hopeful time," she said. "But in the years that followed, our hearts were broken, we were thrown under the bus, we were pushed aside. All of those great promises ... were broken."

Clinton, who had been warmly received by the studio audience, seemed surprised by Etheridge's comments.

"Obviously, Melissa, I didn't see it quite the way you describe it," she said. " ... We didn't get as much done as I would have liked, but I believe there was a lot of honest effort going on."

The candidates appeared in the order they accepted the invitation from the LOGO cable network and Human Rights Campaign, with Obama first - and Clinton last.

"This forum is a real measure of how far we've come as a community, but there are many of us in our community who'd like to see the candidates come farther on gay marriage," said Fred Hochberg, dean of the Milano urban policy institute at New School University, one of Clinton's highest-profile gay supporters.

Suffolk Legis. Jon Cooper, a supporter of Obama who attended the forum, echoed those sentiments, saying, "Although I would love them to come out in support of same sex civil marriage, it's not going to happen right now ... "

The forum underscored the gay paradox in the Democratic Party: The candidates support gay rights but are wary of alienating party conservatives and religious blacks in the South.

Earlier this year, Clinton and Obama angered Human Rights Campaign leaders by refusing to immediately and forcefully rebuke a general's claim that homosexuality was "immoral." They later released statements indicating their disagreement.

Ohio Rep. Dennis Kucinich and former Alaska Sen. Mike Gravel were the only Democrats who have expressed support for gay marriage. Sens. Joseph Biden and Christopher Dodd, who oppose same-sex marriage, declined the invitation, as did all Republican candidates, including Rudy Giuliani, who supports some gay rights.

All the Democrats in attendance pledged to back broad new anti-discrimination statutes, want to scrap Bill Clinton's "Don't Ask, Don't Tell" policy for the military, and believe in civil unions that allow same-sex couples the same rights as heterosexual couples.

"I'm going to be more sympathetic not because I'm black, I'm going to be more sympathetic because this is the cause of my life," Obama said.

Panelist Jonathan Capehart challenged Obama on his opposition to gay marriage, saying his position was "old school." Obama used the remark to point out he'd been the first candidate to accept LOGO's invitation. "There's a reason why I was here first," he said.

Etheridge challenged John Edwards on his recent comments suggesting he was opposed to same-sex marriage based on his religious convictions.

"I have heard in the past that you felt uncomfortable among gay people," she said. Edwards denied her assertion but offered an apology for linking gay issues and Christianity.

"I shouldn't have said that," he said. "I believe to my core in equality ... I will not impose my faith belief on the American people."

Gay activists react

"I was thinking 'When will they get it that equal means equal?' Senator Obama was talking about how he wanted to extend all rights of marriage to people through civil union. But laws are defined by marriage. Laws are not defined by civil union. We've learned that through New Jersey."

- David Kilmnick, executive director of Long Island Gay and Lesbian Youth

"I appreciated John Edwards speaking about the homeless teenagers in the L.A. community center. That was something that people didn't talk about yet and it's very important - people getting thrown out of the house because they're gay."

- Lauren Van Kirk, treasurer of the Stonewall Democrats of Suffolk County

"My family comes from the South, so I understand where he's [Obama's] coming from. But between him and Edwards, both of them fall short. They still fall short of calling it marriage. ... Civil union: it's second-class citizenship."

- Sheila Marino-Thomas, data entry worker for Marriage Equality New York, who has been with her partner for 14 years

"It sounded like she [Clinton] was handing the responsibility for moving the ball forward - fighting - and she said 'well, you guys in the human rights campaign are doing the right thing,' as if to say we can't be doing that in the political realm. It's an easier thing to say, rather than saying I'm going to take up that struggle."



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