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Today's Date: U.S. Attorney News Feed
California Class-Action Lawsuit Filed against Microsoft
Class Action News | 2007/07/23 18:58

Christine Moskowitz and Dan Wood found themselves the apparent victim of poorly crafted Xbox 360s, or so according to the complaint they filed in Federal Court in California. The class-action lawsuit they filed seeks $5 million in damages for Xbox 360 buyers affected by the console which apparently damages game discs, making them unstable and impossible to play. According to the Gamasutra post, Moskowitz lost Gears of War, Crackdown and Saints Row to the console’s scratching. Wood lost Tom Clancy’s Splinter Cell.

After both of the parties contacted Microsoft and reported the problem, they were refused reimbursement or replacement discs. That’s when they decided to take legal action.

Microsoft has acknowledged the obvious defects in its consoles with the red rings of death, but they have yet to acknowledge any defects in their console which scratches discs. Perhaps they will have to add on to the $1 billion they’ve already set aside to deal with the red rings.



Former Officer Pleads Guilty to Civil Rights Charge
Court Feed News | 2007/07/23 18:29

Shannon Houchin, a former police officer with the Crittenden County Sheriff’s Office in West Memphis, Ark., pleaded guilty today in federal court in Little Rock to a felony civil rights charge.

During his guilty plea, Houchin admitted that he abused his authority as a police officer when, in May 2006, he unnecessarily assaulted an arrestee while at the Crittenden County Detention Facility.

Houchin faces a maximum sentence of 10 years in prison and a maximum fine of $250,000.

“It is unacceptable for law enforcement officials to willfully abuse those committed to their custody,” said Wan J. Kim, Assistant Attorney General for the Civil Rights Division. “The overwhelming majority of correctional officers dispatch their difficult duties with honor and professionalism. The Justice Department will aggressively prosecute those who cross the line and violate federal law.”

The Civil Rights Division is committed to the vigorous enforcement of every federal criminal civil rights statute, such as laws that prohibit the willful use of excessive force or other acts of misconduct by law enforcement officials. In fiscal year 2006, nearly 50 percent of the cases brought by the Criminal Section of the Civil Rights Division involved such prosecutions. Since fiscal year 2001, the Division has convicted 50 percent more defendants for excessive force and official misconduct than in the preceding six years.

Today’s plea resulted from the investigative work of the Federal Bureau of Investigation and the Civil Rights Division of the U.S. Department of Justice. Civil Rights Division attorneys Christine Dunn and Karen Ruckert handled the case for the Justice Department.



Judge criticizes fees in Sears case
Headline News | 2007/07/23 17:57

A North Carolina judge has harshly criticized the settlement of a class-action lawsuit in which a Wilmington lawyer and colleagues received $950,000 in fees while consumers who Sears overcharged across the country were reimbursed a total of $2,402. Superior Court Judge Ben Tennille decried the excessive fees and the lack of effort made to reach customers who had paid too much for wheel alignments at Sears automotive centers. Tennille, who specializes in complex business cases, criticized Sears and the lawyers for trying to hide the settlement results from him.

"Their efforts to keep the results secret are understandable," Tennille wrote in his May decision. "The shocking incongruity between class benefit and the fees ... leave the appearance of collusion and cannot help but to tarnish the public perception of the legal profession."

Sears is appealing Tennille's decision and declined to discuss the case.

Gary Shipman, a Wilmington lawyer who led the class action lawsuit, attacked Tennille's order as wrong on the law and filled with factual errors. Shipman complained that Tennille issued his ruling out of the blue, two years after the last hearing in the case. And Shipman said the judge did not have jurisdiction and therefore did not have the power to make decisions in the case.

"Do you think Judge Tennille's word is the Gospel?" Shipman asked. "There is so much in that order that is wrong."

But a top consumer advocate said Tennille's objections had merit.

"Good for the judge," said Ira Rheingold, the executive director of the National Association of Consumer Advocates, which advises and lobbies for lawyers who bring class action lawsuits.

"Cases like this make it look like a get-rich scheme for attorneys," Rheingold said. "The attorneys collect all the fees, and the consumers get no benefits."

Inflated charges

In 2002, Shipman filed one lawsuit in Wilmington and another lawsuit in Chicago, where Sears has its headquarters.

The lawsuits alleged that Sears charged clients for pricier four-wheel alignments on cars which can only be serviced with less expensive two-wheel alignments. Although the inflated charge is a few dollars for each customer, Sears stood to make millions of dollars from the alleged scheme, given the retail giant's nationwide presence.

Shipman said his lawsuit was inspired by one filed in New Jersey. In that case, the New Jersey attorney general combed through Sears records and identified 12,544 New Jersey residents who had paid too much for alignments. Sears agreed to give $10 cash to each person and to give $500,000 to the Attorney General's Office for consumer protection and expenses.

No notices posted

Tennille criticized the method Shipman used to locate the estimated 1.5 million customers who had been overcharged. Tennille faulted Shipman and his fellow lawyers for not insisting that Sears post notices and place claim forms on the counters of Sears' 843 automotive centers around the country. Sears' billing records were not used, nor were lists of Sears credit card holders.

Rather, Sears advertised in newspapers, which courts have recognized as the least effective way of finding class members -- "an essentially futile gesture," the judge wrote. Sears put notices in newspapers in 25 of the country's largest wheel alignment markets and in Parade magazine and USA Weekend, which are inserted in weekend newspapers across the country.

The newspaper notice produced 317 valid claims nationwide.

"Doing the math in this case is easy," the judge wrote. "For each class member who received a $10 check or $4 coupon, plaintiffs' counsel received just shy of $3,000."

According to Shipman, an expert witness estimated that the newspaper advertisements reached 79.24 percent of the claimants in Sears' top 25 markets for alignment sales.

"We certainly believed more people would take advantage of a 100 percent refund," he said. "We don't know if they found out about it. Many times people just don't want to fill out a claim form."

Defending the fees

Shipman said the legal fees were not excessive because they were based on how much time he and his colleagues from six other law firms had spent on the case.

"Sears had paid their attorneys more than what we had been paid," Shipman said.

Shipman said he never hid results from Tennille. He said that the judge in the Chicago lawsuit had jurisdiction in the case and that Tennille had no authority to issue orders. Shipman said he would have given an accounting of the lawsuit had Tennille asked, and did supply the figures in May 2005.

Though Tennille's order was strongly worded, the judge conceded he cannot undo the settlement approved by the Illinois court in 2005.

Shipman and his fellow lawyers have "been more than adequately compensated by the Illinois court," Tennille wrote. "There is nothing this court can do about that."



Greenberg Traurig news
Law Firm News | 2007/07/23 17:01


The international law firm Greenberg Traurig, LLP is pleased to announce that its Trademarks and Global Brand Strategies Group has been recognized as the top ranking practice among law firms in three publications:

IP Law360 gave the firm top rankings in its survey of the 250+ largest law firms most frequently hired for trademark litigation in 2006.

Intellectual Property Today ranked the firm first in its annual listing of Top Trademark Firms. The ranking is a result of having the highest number of trademark applications issued in 2006.

NameProtect Trademark Insider ranked the firm first for three consecutive years for the number of USPTO trademark applications submitted. The ranking is a result of NameProtect’s annual reports from 2004, 2005 and 2006.


Between January 1, 2006 and December 31, 2006 Greenberg Traurig’s Trademark and Global Brand Strategies Group handled 148 federal trademark lawsuits; more than triple that of the firm’s closest competitor and an 18 percent increase from the previous year.

“Every member of our team is diligent at keeping current with the issues that regularly face our clients,” said Rick Harris, Shareholder and National Co-Chair of Greenberg Traurig’s Intellectual Property Litigation Practice. “It’s great to receive this kind of positive feedback and reinforcement for our work.”

In addition to these prestigious rankings, Greenberg Traurig’s trademark and global brand strategy attorneys have a significant international presence as they seek to position and protect clients’ valuable brands throughout the world.

Greenberg Traurig brings together a vast network of resources to obtain, monitor, enforce and leverage trademarks and trade dress worldwide. The firm offers a wide range of services in this area of intellectual property, including trademark clearance, licensing or acquisition, registration worldwide, and licensing of rights of publicity (using a name or persona for commercial purposes). Trademark attorneys also work with clients to develop trademark watch services and monitoring programs for their valuable brands, and counsel the clients on global anti-counterfeiting/anti-infringement, anti-parallel trade and other brand enforcement strategies.

Olswang, a London-based law firm with whom Greenberg Traurig has a strategic alliance, has also received similar praise for its trademark team, which is part of its leading Intellectual Property practice. Olswang was recently recognized as "the UK's most active law firm for UK trademark registry filings" by the Institute of Trademark Attorneys. In 2006 the firm increased its filings by 40 percent from the previous year.

Joel Barry, head of the trademark team and partner at Olswang, said, "Our team is going from strength to strength and making a serious impression on the UK legal market. In the last three years the team's size and turnover has more than quadrupled, and in 2006 we filed more UK registry trade mark filings than any other UK firm. Our achievements mirror the success of Greenberg Traurig. Working closely together we offer a truly unique integrated IP offering which appeals to clients and keeps us both ahead of the market."

“While it’s been exciting for us to receive this praise, the feeling has been magnified by the success of our business partners in London,” said Roxanne Elings, a New York Shareholder and Chair of the Trademark Practice in New York. “Our alliance with Olswang has further strengthened our abilities to provide our clients with the resources and counsel they need.”

“We’re delighted that both our trademark group and Olswang’s have received these well-deserved accolades,” said Richard Rosenbaum, National Operating Shareholder. “Their extensive knowledge of trademark matters is unparalleled and we wish the groups continued success.”

About Greenberg Traurig

Greenberg Traurig, LLP is an international, full-service law firm with more than 1700 attorneys and governmental affairs professionals in the U.S., Europe and Asia. The firm is ranked seventh on The American Lawyer's Am Law 100 listing of the largest law firms in the U.S., based on number of lawyers.

Greenberg Traurig serves clients from offices in: Albany, NY; Amsterdam, The Netherlands; Atlanta, GA; Boca Raton, FL; Boston, MA; Chicago, IL; Dallas, TX; Denver, CO; Fort Lauderdale, FL; Houston, TX; Las Vegas, NV; Los Angeles, CA; Miami, FL; Morristown, NJ; New York, NY; Orange County, CA; Orlando, FL; Philadelphia, PA; Phoenix, AZ; Sacramento, CA; Silicon Valley, CA; Tallahassee, FL; Tampa Bay, FL; Tokyo, Japan; Tysons Corner, VA; Washington, D.C.; West Palm Beach, FL; Wilmington, DE; and Zurich, Switzerland. Additionally, the firm has strategic alliances with the following independent law firms: Olswang, London, Berlin and Brussels; Studio Santa Maria, Milan and Rome; and Hayabusa Asuka Law Offices in Tokyo.

www.gtlaw.com


Cold-fX maker sued for $110-million lawsuit
Legal World News | 2007/07/23 14:58
CV Technologies, the Edmonton-based makers of flu and cold remedy Cold-fX, has been hit with a $110-million consumer class-action lawsuit.

Marking the latest setback for the besieged biotech company, the lawsuit was filed in Ontario Superior Court in Toronto by two law firms, Siskinds LLP of London, Ont. and Sutt Strosberg LLP of Windsor.

The action, based on Ontario's new investor legislation, arose from CV Tech's June restatement of finances, after it was discovered earlier this year that U.S. sales of lead product Cold-fX were vastly inflated.

The suit was filed by two investors on behalf of any Canadians who acquired CV Technologies (TSX:CVT) shares between Dec. 11, 2006 and June 2007.

Also named in the action are CV Tech president Jacqueline Shan, directors Gordon Tallman and Harry Buddle, who signed the company's financial statements, and the corporation's auditors, Grant Thornton LLP of Edmonton.

Lawyer Jay Strosberg said it is alleged that CV Tech's financial statements were misleading. Strosberg, who specializes in class-action litigation, said his firm received a number of calls from shareholders. "They were concerned at the decrease in share price. We decided to investigate."

The two legal firms have set up a website with information for shareholders who may want to join the action, www.coldfxclassaction.com.

"Investors and members of the public expect that a company's financial statements can be relied upon at all times. Our goal is to prosecute this class action and seek meaningful compensation for the class members."

CV Technologies and the other named defendants have not yet been served with copies of the action and no court date has been set.

"It's going to be an interesting road," Strosberg said.

Dimitri Lascaris, a lawyer with Siskinds', said investors deserve relief when they suffer losses due to inaccurate information.

"Our securities laws must have teeth if the investments of Canada's working families are to be protected."

Officials with CV Technologies did not immediately return a phone call seeking comment today.

Typically, such actions can take years to wind their way through the legal system or reach settlement.

This is the second time that Ontario's investor protection legislation has been used in a court case. The first proposed class action, currently before the courts, was brought against Imax Corp., also filed jointly by Siskinds LLP and Sutts Strosberg LLP.

CV Technologies has had a rough ride in recent months. On June 12, the company resumed trading on the TSX for the first time since April, when regulators in Alberta, B.C. and Ontario slapped cease-trade orders against the company.

On June 14, the company filed restatements of previously reported financial statements for the year ended Sept. 30, 2006, and the quarters ended Dec. 31, 2006, and March 31, 2007. The company restated 2006 sales at $41.4 million, compared to the originally reported revenue of $47 million.

The company is restructuring and has hired a new COO. Following the disappointing launch of Cold-fX in the U.S. market, the company's vice president of sales resigned.

CV Technologies shares closed Friday's session up a penny to $1.02. Its 52-week trading range has been between 60 cents and $1.15.



U.S. District Court Final Approval of Settlement of Class Action
Class Action News | 2007/07/23 14:00

Copernic Inc., (the "Company"), (NASDAQ: CNIC), formerly Mamma.com Inc., previously announced on March 8, 2007, that an order by the U.S. District Court for the Southern District of New York in the consolidated securities class action was filed preliminarily approving the proposed settlement of the class action.

The court has approved the settlement following a hearing on July 9, 2007, at which time the Court heard from all parties before concluding that the settlement is fair and all procedural requisites were met.

As a result, all claims asserted in the class actions against the Company and the individual officer defendants have been resolved, with the exception of three shareholders who have indicated they will exclude themselves from the settlement so as to preserve rights to maintain separate actions should they elect to do so. The amount paid into escrow, along with any interest earned, will be distributed as provided under the settlement to pay class members, plaintiffs' attorney fee, and the costs of claims administration.



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