Michael Hayward and Michael Stern were convicted in July 2006 after they were accused of stealing $1 million apiece. Prosecutors said they had skimmed small amounts of money from stocks they were entrusted to oversee.

The 2nd U.S. Circuit Court of Appeals notes that the government had already conceded that the conduct of the men was not manipulative. The court says their conduct was not deceptive either.

Hayward and Stern had worked for Van der Moolen Specialists USA LLC.

Hold those giant catamarans just a minute, you bickering billionaires.

The America's Cup appears to be headed away from a rare one-on-one showdown between American and Swiss crews and back to its traditional multichallenger format following a ruling by a New York appeals court Tuesday that went against a San Francisco yacht club that backs Silicon Valley maverick Larry Ellison.

In the latest 180-degree turn in a yearlong court fight, the New York Supreme Court's Appellate Division ruled 3-2 that Spain's Club Nautico Espanol de Vela should be the Challenger of Record, giving it the right to negotiate terms of the next competition with the current America's Cup holder, Alinghi of Switzerland.

The decision, based on what the court said was "ambiguous" language in the Deed of Gift, the century-old document that governs the America's Cup, reversed a lower-court ruling that made the Golden Gate Yacht Club the Challenger of Record.

Although Golden Gate Yacht Club can file a last-chance appeal to the New York State Court of Appeals in Albany, Tuesday's ruling leads the way for a return to the traditional format in which the winner of a challenger elimination series races the defending champion for the oldest trophy in international sports.

BMW Oracle Racing, backed by the GGYC, and Alinghi have been preparing for an expected one-on-one match in 90-foot multihull boats, the result of a lower-court ruling that GGYC was the Challenger of Record.

GGYC said it will consider the implications of Tuesday's ruling before deciding its next step.

Most German state smoking laws permit larger venues to provide smoking rooms for their patrons, but the Federal Constitutional Court in Karlsruhe ruled this is unconstitutional.

Ruling on appeals brought by owners of one-room pubs in the states of Baden Wuerttemberg and Berlin, the court said smoking bans with exceptions discriminate against the smaller venues.

The court ordered states to review their laws, giving parliaments until the end of next year either to ban smoking in all establishments entirely or to revise the exceptions allowed in their laws.

Germany has banned smoking nationwide in government buildings but leaves jurisdiction of bars, restaurants and other public places to the nation's 16 states — all of which have enacted their own varying restrictions.

Ramiro Vanoy Murillo, 60, and Javier Lindo, 38, are among 14 paramilitary members who were extradited to the U.S. in May. Authorities say they men, who entered their pleas Tuesday, were wanted for their alleged roles in a large-scale cocaine smuggling operation dating to the late 1990s.

Sentencing is set for October. Vanoy Murillo faces up to 19 years and Lindo over 17 years behind bars.

Colombian officials said they decided to extradite the men because they were still committing crimes from Colombian prisons and had failed to pay restitution to victims of atrocities blamed on the paramilitary group.

Alston & Bird LLP is putting its mark on California, with plans to absorb in September the Los Angeles law firm Weston Benshoof Rochefort Rubalcava & MacCuish LLP and its 83 attorneys. Weston Benshoof is known for its environmental and land use practices, but it also litigates in real estate, construction, and water resources issues.

Atlanta-based Alston & Bird also said Wednesday it has opened a 12-attorney office in Palo Alto. The addition of the new lawyers in California will bring the total number of attorneys at Alston & Bird to more than 900.

"Alston & Bird's continued growth is the result of our increasing national and international client base for whom our strategic approach is simple -- We will be where our clients are and need us to be," said Richard R. Hays, Alston & Bird's managing partner, in a prepared statement. "While Alston & Bird has been representing clients on the West Coast for years, teaming up with some of the best talent in Los Angeles and Silicon Valley gives us stronger footing in a number of key practice areas that will benefit our clients and better serve their needs."

Twenty-seven years later, Morton Grove has repealed its law, bowing to a U.S. Supreme Court decision in June that affirmed homeowners' right to keep guns for self-defense.

It's one of several Illinois communities — reluctant to spend money on legal fights — rushing to repeal their gun bans after the court struck down a Washington, D.C., ban, even as cities such as Chicago and San Francisco stand firm.

Mayor Richard Krier acknowledges Morton Grove's place in history, but said that didn't affect the village board's 5-1 decision Monday to amend its ordinance to allow the possession of handguns. The village still bans the sale of guns.

"There hasn't been any pressure" to keep the ban, Krier said, noting that the village's ordinance has been under scrutiny since the Supreme Court agreed to hear the Washington case. He also pointed out that the mostly residential village has never had a big problem with gun crime.

Though Morton Grove's gun ban is five years younger than Washington's, it's considered the first in the country because the village is a municipality, whereas D.C. is a federal district.

Gun rights advocates hailed the Supreme Court's 5-4 decision affirming that individuals have a right to own guns and keep them in their homes for self-defense.