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Consumers Allowed Class Action from Next Year
Legal World News | 2007/12/26 19:55
Come 2008, consumers in Korea will be able to take class action to curb illegal activities by corporations.

The government has designated 13 organizations, including nine consumer groups and four economic institutes, such as the Federation of Korean Industries, to handle the job.

Non-profit private organizations with requests for a lawsuit from more than 50 people can also file if they meet certain conditions.

To that end the Fair Trade Commission and the Korea Consumer Agency are looking to hire lawyers to support legal procedures related to filing a lawsuit.

The Ministry of Finance and Economy says the new law will urge companies not to infringe on consumer rights so as not to hurt their image.



Class-Action Cases Rise, Fueled by Subprime Troubles
Attorney Blogs | 2007/12/24 17:23

The subprime mess is turning out to be a boon for class-action lawyers. Litigation stemming from the housing crisis is driving an increase in class-action filings, according to a study to be released Friday by the NERA Economic Consulting company. Through Dec. 15, filings were up 58 percent from 2006, according to the study. A total of 198 class actions were filed this year through Dec. 15, and 38 of them were securities class actions related to subprime mortgages. No shareholder class actions related to subprime loans were filed in 2006, according to the report.

“There is no question,” said Gerald H. Silk, of Bernstein Litowitz Berger & Grossmann, that the subprime market has led to an increase in litigation. His New York firm has class actions pending against the subprime lenders Fremont General, Accredited Home Lenders and American Home Mortgage Investment.

Stuart M. Grant of Grant & Eisenhofer, a firm in Wilmington, Del., said, “All you are seeing now is the low-hanging fruit.” His firm has a shareholders’ derivative lawsuit pending against Countrywide Financial, the mortgage giant.

Class-action filings, excluding subprime cases and those stemming from the backdating of stock options, have increased almost 40 percent from 2006. Average settlements have also jumped, to $33.2 million from $22.7 million.



US DOJ won't appeal Stolt-Nielsen decision
Business Law Info | 2007/12/24 16:25

The U.S. Justice Department said on Friday it will not appeal the dismissal of its indictment of Norwegian shipping group Stolt-Nielsen in a price fixing case.

Earlier this month, a Pennsylvania court threw out a criminal indictment against the company and two of its executives.

Judge Bruce Kauffman of the U.S. District Court for the Eastern District of Pennsylvania, who tossed out the indictment, said Stolt-Nielsen had cooperated with the Justice Department to dismantle illegal collusion among three long-haul carriers in exchange for a promised amnesty for prosecution.



NY Man Guilty in Death of White Teen
Criminal Law Updates | 2007/12/24 12:06
A jury on Saturday convicted a black man of killing a white teenager during a racially charged encounter outside the man's home.

Jurors found John White, 54, guilty of second-degree manslaughter in the death of Daniel Cicciaro despite the man's claims that he feared a "lynch mob" had come to attack his family.

The ruling came on the fourth day of deliberations following an emotional three-week trial in which defense attorneys invoked the nation's violent racist past in arguing the shooting was justified.

Jurors also found White guilty of criminal possession of a weapon.

White testified during the trial that he was trying to protect his family in 2006 when he brandished a gun after a group of angry white teenagers turned up at his house late at night to fight his son.

White claimed the gun went off accidentally, killing Cicciaro, 17.

Jurors had asked on Saturday to hear readbacks of testimony from White's wife and son.



3 Plead Not Guilty in Malibu Fire Case
Court Feed News | 2007/12/24 09:04
Three men pleaded not guilty Friday to causing a wildfire that destroyed 50 homes in Malibu, and their lawyers said outside court they were being made scapegoats by an outraged community.

Attorneys entered not guilty pleas for Brian David Franks, 27; William Thomas Coppock, 23; and Brian Alan Anderson, 22, all of Los Angeles.

They are among five men who have been charged with recklessly causing a Nov. 24 fire that swept through 4,000 acres of Malibu canyon land. Six firefighters were hurt battling the blaze, and 50 homes and 35 other buildings were destroyed.

Dean Allen Lavorante, 19, and Eric Matthew Ullman, 18, face arraignment in February. They and Anderson are free on bail.

The five are charged with recklessly causing a fire with great bodily injury and recklessly causing fire to inhabited structures. They could face more than a decade each in prison if convicted.

Superior Court Judge Michael K. Kellogg, who works in the San Fernando Valley but lives in Malibu, took the unusual step of denying from the bench that his Malibu neighbors had pressured him.

"Nobody's putting pressure on me," he said. "No one ... has come down from Malibu and knocked on my door and said, 'Hey Judge, we know where you live!"

Kellogg scheduled a preliminary hearing for Jan. 7 to determine whether there is enough evidence to hold the three for trial.

After the hearing, defense attorneys said their clients were being scapegoated.

"The Malibu community and the political pressure by the governor and other factors," led to charges being filed, said Andrew Reed Flier, who represents Coppock.

Arson investigators said food wrappers and precut logs led them to determine the blaze started with an illegal campfire in a cave-like depression on state park land in Corral Canyon that was known as a favorite partying spot for young people.



Shoppers rush to stores before Christmas
Business Law Info | 2007/12/24 08:20

The nation's shoppers -- taking advantage of deep discounts and expanded hours -- jammed stores over the last weekend before Christmas to try to grab a hard-to-find Wii or scoop up bargains on other items. But the spending surge may not be enough to offset what is shaping up to be a mediocre December for some retailers.

Based on early reports on Sunday, mall operators including Macerich Co. said they were pleased with the spending spree over the weekend, but they were still counting on Christmas Eve and post-Christmas business to meet holiday sales goals in what has turned out to be a nail biter of a season.

Meanwhile, even as shoppers continued to snap up flat-screen TVs, video game software and other gadgets, benefiting stores like Best Buy Co., the apparel business remains challenging, analysts said.

Ed Schmults, chief executive of toy merchant FAO Schwarz, which operates stores in Chicago and New York, said Sunday that pre-Christmas business is below expectations despite a sales surge this weekend.

"It's almost kind of worth waiting and shifting through the hustle and bustle," said Carly Moore, of Chicago, who was heading to Macy's on the city's State Street shopping corridor to scoop up some discounted clothing. But she was still frustrated that she couldn't find Nintendo's Wii game console, after trying at least five stores.

Valerie Glodowski of Stevens Point, Wis., who was with her boyfriend at Wisconsin's Wausau Center Mall, said she started holiday shopping two weeks ago and waited until the last weekend to finish out of sheer laziness.

"I am just winging it," she said.

Many merchants, which had struggled through a sluggish December after a strong start to the season, are counting even more on the final days before Christmas to make their holiday goals. With the three days prior to Christmas accounting for as much as 15 percent of holiday sales, there's a lot of business left on the table.

Macy's Inc. is keeping several of its stores in the New York metropolitan area, including its flagship store in Herald Square, open until 6 p.m. on Christmas Eve. About 1,000 of Sears Holdings Corp.'s 1,387 Kmart stores are open for 64 hours straight, beginning at 6 a.m. Saturday and ending at 10 p.m. on Dec. 24, for the first time since 2002.

With Christmas falling on a Tuesday, shoppers were enticed to wait even longer this season to finish their holiday shopping. A challenging economy -- higher gas prices and a housing slump -- also made some shoppers hold off until the final days before the holiday. Retailers routinely discount items deeper as Christmas draws nearer.

"The gas prices and car insurance ... is up. I would say I'm spending less and worrying more about it," said Sondra Newton, of Warren, Mich., who was at Oakland Mall in Troy, Mich., a suburb outside of Detroit on Friday. "I used to just take their (her children's) list and get the top ones on it. Now I have to think about 'what can I get at the best deal.'"

Nevertheless, Michael P. Niemira, chief economist at International Council of Shopping Centers, is sticking with his December forecast for a 1.5 percent gain in same-store sales, or sales at stores opened at least a year. That would mean same-stores sales for the November-December period would be up 2.5 percent from a year ago.

"I think when the dust settles, stores will have met expectations, though they are modest," said Bill Martin, co-founder of ShopperTrak RCT Corp., which tracks total sales at more than 50,000 retail outlets. He said he is still sticking with his 3.6 percent forecast for the November and December period, though he added, "some retailers will do OK, and others won't."

ShopperTrak is expected to release total sales for the week ended Saturday late on Monday.



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