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Apps cost too much? Court allows suit adding to Apple’s woes
Business Law Info | 2019/05/14 22:53
Consumers can pursue a lawsuit complaining that iPhone apps cost too much, the Supreme Court ruled on Monday, adding to Apple’s woes that already include falling iPhone sales and a European investigation.

The lawsuit could have major implications for the tech giant’s handling of the more than 2 million apps in Apple’s App Store, where users get much of the software for their smartphones. While most of those apps are free to download, some impose fees for people to use the software and subscribe to the services.

In those cases, Apple charges a commission of 30%, a practice that the lawsuit contends unfairly drives up the price for the apps. Justice Brett Kavanaugh wrote the majority opinion that agreed the antitrust lawsuit can move forward in a lower court.

The court’s four liberal justices joined Kavanaugh, one of President Donald Trump’s two high court appointees, to reject a plea from Apple to end the lawsuit at this early stage. The decision did not involve the merits of the suit.

Apple argues it’s merely a pipeline between app developers and consumers, and that iPhone users have no claims against Apple under antitrust law and a 1977 Supreme Court decision. Tens of thousands of developers create the software and set the price, Apple says.

“We’re confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric,” Apple said in statement issued in response to Monday’s ruling. The lawsuit could take years to wind to its conclusion.


A loophole could keep young terror suspects out of US courts
Business Law Info | 2019/05/07 17:14
The Justice Department's ability to charge minors for supporting terrorist groups has been hampered by a 2018 Supreme Court decision, forcing prosecutors to hand off at least one such case to local authorities in a state without anti-terrorism laws.

The court's decision in a case unrelated to terrorism opened a loophole that could allow young supporters of groups like the Islamic State to skate on charges from the federal government.

The legal gap was highlighted by the case of Matin Azizi-Yarand , who was sentenced in a Texas state court last month after plotting to shoot police officers and civilians at a suburban shopping mall in an Islamic State-inspired rampage planned to coincide with the Muslim holiday of Ramadan.

In most cases like this, federal prosecutors would have brought terrorism charges. But U.S. prosecutors in Texas didn't charge Azizi-Yarand because he was 17 at the time and considered a minor under federal law.

Federal law allows prosecutors to charge anyone supporting or working with a State Department-designated terror group, even if the person was not in contact with the group. But to charge a juvenile with providing material support to a foreign terrorist organization, the attorney general would have to determine that the suspect committed what's known as a "crime of violence" under federal law.

The Supreme Court struck down part of that law last year, finding it too vague to be enforced in the case of a Philippine man who was facing deportation over burglary convictions. Justice Neil Gorsuch joined the court's more liberal judges, finding that the law crossed constitutional boundaries and that the law was not specific enough because it failed to adequately define what would be a violent crime.


News attorneys: Opioid distribution data should be public
Business Law Info | 2019/05/06 00:13
Attorneys for news organizations argued Thursday that the U.S. public should be allowed to see federal data about how prescription opioids were distributed as the nation’s overdose crisis was worsening.

They urged a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati to overturn a lower court judge’s denial of access to the information. The judges will rule later.

“The value of transparency here is great,” said Karen C. Lefton, an Akron, Ohio, attorney representing The Washington Post. The data concerns “a public health crisis” that affects many more people than a typical case, she said.

The data is a key piece of evidence in hundreds of lawsuits filed by state and local governments against companies that make and distribute the drugs. The U.S. Drug Enforcement Administration database details the flow of prescription painkillers to pharmacies, showing the number and doses of pills.

A Justice Department attorney told the judges releasing the data would compromise investigations.

“This is an issue of really critical importance to the United States and DEA,” said government attorney Sarah Carroll. Making the information public, she said, “would tip defendants off to the scope of DEA investigations.”

Cleveland-based U.S. District Judge Dan Polster, who is overseeing more than 1,500 of the lawsuits, had ruled in July 2018 that the information cannot be made public. He said that doing so would reveal trade secrets. The Post and the HD Media newspaper chain, which had asked the court for the data, then appealed to the federal circuit.

The appellate judges raised a number of questions about Polster’s orders keeping the data secret and hundreds of filings in the case that are under seal.

Judge Eric Clay said it seemed that the secrecy in the case had “just gone overboard.” He told Carroll, of the Justice Department, that “just saying” cases would be compromised seems inadequate.


Arkansas faces new court fight over sedative for executions
Business Law Info | 2019/04/20 23:01
A federal lawsuit filed by death row inmates has renewed a court fight over whether the sedative Arkansas uses for lethal injections causes torturous executions, two years after the state raced to put eight convicted killers to death in 11 days before a previous batch of the drug expired.

Arkansas recently expanded the secrecy surrounding its lethal injection drug sources, and the case heading to trial Tuesday could impact its efforts to restart executions that have been on hold due to a lack of the drugs. It’ll also be the latest in a series of legal battles over midazolam, a sedative that other states have moved away from using amid claims it doesn’t render inmates fully unconscious during lethal injections.

States that want to avoid unnecessarily inhumane executions will be watching closely, said Robert Dunham, executive director of the Death Penalty Information Center, which has criticized the way states carry out the death penalty.

But, Dunham added, “states that are watching because they want to figure out how to just execute people will be looking to see what Arkansas is able to get away with.”

Only four of the eight executions scheduled in Arkansas over 11 days in 2017 actually happened, with courts halting the others. The state currently doesn’t have any executions scheduled, and Arkansas’ supply of the three drugs used in its lethal injection process has expired. Another round of multiple executions is unlikely if Arkansas finds more drugs, since only one death row inmate has exhausted all his appeals.

This time, Arkansas isn’t racing against the clock to execute inmates before a drug expires. The state currently doesn’t have any execution drugs available, but officials believe they’ll be able to get more once the secrecy law takes effect this summer.

State Attorney General Leslie Rutledge says the inmates in the case have a very high burden to meet and cites a U.S. Supreme Court ruling last month against a Missouri death row inmate. Justice Neil Gorsuch, writing for the majority in that case, wrote that the U.S. Constitution “does not guarantee a prisoner a painless death.” Rutledge called the federal case in Arkansas the latest attempt by death row inmates to delay their sentences from being carried out.


Accuracy at core of Supreme Court case over census question
Business Law Info | 2019/04/18 22:59
Justice Elena Kagan’s father was 3 years old when the census taker came to the family’s apartment on Ocean Parkway in Brooklyn, New York, on April 10, 1930.

Robert Kagan was initially wrongly listed as an “alien,” though he was a native-born New Yorker. The entry about his citizenship status appears to have been crossed out on the census form.

Vast changes in America and technology have dramatically altered the way the census is conducted. But the accuracy of the once-a-decade population count is at the heart of the Supreme Court case over the Trump administration’s effort to add a citizenship question to the 2020 census.

The justices are hearing arguments in the case on Tuesday, with a decision due by late June that will allow for printing forms in time for the count in April 2020.

The fight over the census question is the latest over immigration-related issues between Democratic-led states and advocates for immigrants, on one side, and the administration, on the other. The Supreme Court last year upheld President Donald Trump’s ban on visitors to the U.S. from several mostly Muslim countries. The court also has temporarily blocked administration plans to make it harder for people to claim asylum and is considering an administration appeal that would allow Trump to end protections for immigrants who were brought to this country as children.

The citizenship question has not been asked on the census form sent to every American household since 1950, and the administration’s desire to add it is now rife with political implications and partisan division.


Supreme Court tosses $315 million award in USS Cole lawsuit
Business Law Info | 2019/03/24 07:11
The Supreme Court on Tuesday threw out a nearly $315 million judgment against Sudan stemming from the USS Cole bombing, saying Sudan hadn't properly been notified of the lawsuit.

The justices ruled 8-1 that notice of the lawsuit should have been mailed to Sudan's foreign ministry in the country's capital, Khartoum. The notice was instead mailed to Sudan's embassy in Washington.

The lawsuit in which the justices ruled involves sailors who were injured in the 2000 bombing of the Cole in Yemen. Sailors and their spouses sued Sudan in a U.S. court, arguing that Sudan had provided support to al-Qaida, which claimed responsibility for the Cole attack. Seventeen sailors died when the ship was struck by a bomb-laden boat. Dozens of others were injured.

In order to alert Sudan to the lawsuit, the group mailed the required notice to Sudan's embassy in Washington. Sudan didn't initially respond to the lawsuit in court, and a judge entered an approximately $315 million judgment against the country. Sudan then tried to get the judgment thrown out.

Sudan and the sailors who were suing disagreed about the requirements of a 1976 law, the Foreign Sovereign Immunities Act. The statute lays out how to properly notify another country of a lawsuit filed in a U.S. court. If other agreements between the countries don't exist, the law says that notice should be "addressed and dispatched ... to the head of the ministry of foreign affairs of the foreign state concerned."

Lawyers for Sudan and for the U.S. government had argued that the best reading of that phrase is that it requires the notice to be sent to the foreign minister in the foreign country. The Supreme Court agreed.


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