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Shareholder Class Action Filed Against ValueClick
Class Action News | 2007/09/06 11:35
The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of securities of ValueClick, Inc. ("ValueClick" or the "Company") from November 1, 2006 through July 27, 2007, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.

The Complaint charges ValueClick and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ValueClick provides online advertising campaigns and programs for advertisers and advertising agency customers in the United States and Europe. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that certain of the Company's lead-generation practices violated the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 ("CAN-SPAM") and Federal Trade Commission ("FTC") Guidelines; (2) that the Company's use of long surveys to generate email addresses for resale violated industry standards; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

On May 18, 2007, the Company disclosed that the FTC was conducting an inquiry to determine whether the Company's "lead generation" activities violated the FTC Act or the CAN-SPAM Act. Specifically, the FTC was investigating certain of ValueClick's websites which promised consumers a free gift of substantial value, and the manner in which the Company diverted traffic to such websites, in particular through their use of email. On May 22, 2007, the Company disclosed that its lead generation activities accounted for more than 60 percent of the Company's quarterly Media segment revenue, and that the promotion-based sub-category of lead generation, the subject of the FTC inquiry, accounted for approximately 30 percent of its quarterly Media segment revenue.

Then on July 30, 2007, the Company announced disappointing quarterly financial results. The Company stated that its revenue results were negatively impacted by the Company's promotion-based business, which "suffered a downturn that began in late May and became more pronounced in June." As a result, the Company was forced to lower its yearly revenue guidance from $655 million to $665 million down to $645 million to $660 million. Additionally, the Company was forced to lower its earnings-per-share guidance for the year, from $0.79 to $0.81 down to $0.74 to $0.76. Upon the release of this news, the Company's shares declined $5.00 per share, or 19.2 percent, to close on July 30, 2007 at $21.01 per share, on unusually heavy trading.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit www.sbtklaw.com



D.C. Asks Supreme Court to Back Gun Ban
Lawyer Blog News | 2007/09/05 15:32

The District today asked the Supreme Court to uphold the city's ban on private ownership of handguns, saying the appeals court decision that overturned the law "drastically departs from the mainstream of American jurisprudence." Most legal experts believe the court will accept the case, which could lead to a historic decision next year on whether the ambiguously worded Second Amendment to the Constitution protects private gun ownership or only imparts a civic right related to maintaining state militias.

The District argues in its petition for review that its law--one of the toughest handgun bans in the nation--should be upheld regardless of whether the court sides with the so-called "individualist" or "collective" legal theories.

"It is eminently reasonable to permit private ownership of other types of weapons, including shotguns and rifles, but ban the easily concealed and uniquely dangerous modern handgun," states the petition, filed by District Attorney General Linda Singer. It adds: "Whatever right the Second Amendment guarantees, it does not require the District to stand by while its citizens die."

"We're going to fight to uphold a law that . . . has public support," Mayor Adrian M. Fenty (D) said at a news conference outside D.C. police headquarters. "The only possible outcome of more handguns in the home is more violence. Our appeal will help the District of Columbia be able to continue to reduce gun violence."

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit split 2-1 last March in throwing out the District's law, which prohibits handgun ownership except by active and retired law enforcement officers. It also struck down a law requiring that rifles and shotguns kept in private homes be unloaded and disassembled or bound by trigger locks.

The court ruled that the Second Amendment "protects an individual right to keep and bear arms" and that "once it is determined--as we have done--that handguns are 'Arms' referred to in the Second Amendment, it is not open to the District to ban them."

The appeals court acknowledged that its decision was groundbreaking; only one other appeals court--the Fifth Circuit based in New Orleans--has recognized an individual's right to gun ownership, and it nevertheless upheld the federal gun-control law at issue. Nine other circuits around the country have endorsed the "collective" right.

That split is what makes it likely the justices will accept the case, and the lawyers who brought the case on behalf of six District residents who wanted to overturn the gun ban also want the court to take the case.

"We support the court granting [review] and plan on responding very quickly," said attorney Alan Gura, one of the lawyers who brought the case.

Singer said the city expects to hear by November whether the high court will hear the case. The District would be represented in court arguments by Alan B. Morrison, special counsel to Singer's office.

"This is more than an intellectual or ideological argument. It's real," Singer said. "For the residents of the District of Columbia, it's a matter of life and death."

The Supreme Court has not specifically addressed the gun rights guarantees of the Second Amendment since 1939, when it upheld a federal gun control law and seemed to side with the "collective" right argument.

The Second Amendment provides: "A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms shall not be infringed."

The appeals court's decision to focus on "the right of the people to keep and bear Arms shall not be infringed"rather than "A well regulated Militia, being necessary to the security of a free State'' reflects a growing trend in the legal and academic community.

So while the District argues in its petition that the appeals court decision ignored the "obvious military character" of the Second Amendment's language, it spends more time making the case that its law should be upheld even if a majority of the justices embrace the individual rights theory.

Its legal filing contends that the Second Amendment was meant to protect the states from federal intervention, not to restrict their legislative decisions. "States remain free to regulate arms within their boundaries so long as they do not thereby deprive the United States of the ability to obtain the assistance of an armed citizenry in time of need," the petition states.

And the petition says the high court should recognize that banning handguns, which it calls the criminal's "weapon of choice," was a reasonable response in an urban area marked by high crime rates.

District lawyers argue that the ability to own shotguns and rifles satisfied the desire of the law's challengers for a means of self-protection. The appeals court found that argument "frivolous."

The petition also includes a long list of statistics it says bolsters its claims that the availability of handguns increases the number of suicides and endangers children and police officers. "No other provision of the Bill of Rights even arguably requires a government to tolerate serious physical harm on anything like the scale of the devastation worked by handguns," it states.

Although the case decided by the appeals court was called Parker v. District of Columbia, District lawyers have filed their petition as District of Columbia v. Dick Anthony Heller. That is because the appeals court found that Heller, a security guard, was the only one of the six plaintiffs who had legal standing to challenge the law. His application for a handgun permit was denied by the government.



Tennessee court rejects Winkler custody case
Court Feed News | 2007/09/05 14:32
Mary Winkler's efforts to regain custody of her three daughters suffered another blow Tuesday. The Tennessee Supreme Court, in an order issued in Jackson, denied Winkler's request for a hearing on an Appeals Court decision that will not allow her custody petition in juvenile court to proceed. Mary Winkler was convicted in April and sentenced in May on a conviction of voluntary manslaughter in the death of her husband, Matthew Winkler, a Church of Christ minister in Selmer.

After the conviction, Matthew Winkler's parents filed a suit to terminate Mary Winkler's parental rights and to adopt the girls - Patricia, 9, Allie, 7, and Brianna, 2.

Dan and Diane Winkler have cared for the girls since Mary Winkler was arrested in March 2006, after Matthew Winkler's death.

Tennessee law places adoption petitions, which are heard in chancery court, ahead of custody petitions heard in juvenile court. The Court of Appeals decision allowed Dan and Diane Winkler to continue pursuing permanent custody of the girls, and this week's Tennessee Supreme Court ruling lets this decision stand.

The Supreme Court's order further assessed all court costs in the matter to Mary Winkler, who received donated legal services during her murder trial.


Court allows Morrison to intervene in abortion case
Legal Career News | 2007/09/05 13:33
Attorney General Paul Morrison is now a party to a lawsuit filed against his predecessor by an abortion clinic's operator. The Kansas Supreme Court has allowed Morrison to intervene in the case. It was filed with the court in June by Planned Parenthood of Kansas and Mid-Missouri.

The group is targeting former Attorney General Phill Kline, now the Johnson County District Attorney. Its clinic in Overland Park falls within Kline's jurisdiction, and he investigated it while attorney general.

The court's order was filed under seal, like all other documents in the case. There has been no public explanation of why Planned Parenthood is suing Kline or why Morrison wants to intervene.



Sen. Craig reconsiders quitting over sex sting
Law & Politics | 2007/09/05 12:28
One of Sen. Larry Craig's lawyers said today the Senate has no business looking into the conduct of one of its own following Craig's guilty plea in connection with an airport men's room sex sting.

An unbroken line of precedents dating back 220 years makes clear the Senate does not consider misdemeanor private conduct to be a fit subject of inquiry, asserted Washington attorney Stan Brand.

"We ought to seek to have the committee dismiss this outright," Brand said of a Senate ethics panel's investigation. "The Republican leadership called for an ethics investigation that had nothing to do with his office," said Brand on NBC's "Today" show.

Craig says he may still fight for his Senate seat, a spokesman says — if the lawmaker can clear his name with the Senate ethics panel and a Minnesota court.

The Republican lawmaker, who has represented Idaho for 27 years, announced Saturday that he intended to resign.

"It's not such a foregone conclusion anymore that the only thing he could do was resign," Sidney Smith, Craig's spokesman in Idaho's capital, told The Associated Press on Tuesday.



CNET says SEC ends stock investigation
Business Law Info | 2007/09/05 09:34

CNET Networks said Tuesday that the Securities and Exchange Commission ended an inquiry into the company's stock option grants.

Regulators won't take any action against San Francisco-based CNET, which is a media company.

CNET's founder Shelby Bonnie quit as chairman and CEO last October -- on the same day the company said it had back dated some stock options grants between its 1996 IPO and 2003.

The costs of the ensuing stock options investigation and related litigation cost CNET Networks $2.9 million in the second quarter, ended June 30, and pushed it to a $76,000 loss.

CNET's loss would have been greater but for a $1.6 million gain on private investments, which partially offset the costs of its stock options investigation.

Neil Ashe, Bonnie's replacement as CEO, said it was a "transition year" for his company.



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