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A Supreme Court pharma case deals consumers a big loss
Business Law Info | 2017/08/12 23:43
In the war being waged by large corporations against individual rights — and, yes, it is a war — a potentially decisive battle was recently fought. It will come as little surprise to any informed observer of American society that it was not the little guy who won.

The U.S. Supreme Court case of Bristol-Myers Squibb Co. vs. Superior Court of California, which was decided in favor of BMS in June, may seem like an arcane question of legal jurisdiction. It’s anything but.

The case centered on a drug called Plavix that BMS developed. Plavix, also known by its generic name, clopidogrel, is an anti-platelet used to prevent blood from clotting inside blood vessels. Ever since the drug was approved by the FDA in 1997, thousands of people have claimed that it caused them gastrointestinal bleeding, severe bleeding from relatively minor cuts, and even brain damage.

Even though the company had significant business activities in California, as well as sales of Plavix and other drugs, a contract with a California distributor to distribute Plavix nationally, and employed hundreds of people in the state, BMS argued that California state courts could not exercise “personal jurisdiction” over the company for claims brought on behalf of people who lived, used Plavix, and were allegedly injured by the drug outside of California.

The Supreme Court’s ruling in favor of BMS is a staggering blow for millions of Americans harmed each year by the reckless and abusive behavior of pharmaceutical companies. The decision raises an almost insurmountably high hurdle between victims and their hopes for obtaining justice in state courts throughout the country.

By foreclosing to plaintiffs’ state court venues other than those where these companies are “at home” — generally meaning where they are headquartered or incorporated — the Supreme Court has placed an almost impossible burden on state court litigants. They will now be forced to sue in far-off courts, convince experts to travel out of state to testify, and shuttle between their home states and wherever the drug company is at home. Their alternative will be pursing claims in federal court — but still also likely in a different state — where they will be subject to different laws, rules, and standards to prove their claims.



British cybersecurity expert pleads not guilty to US charges
Business Law Info | 2017/08/10 23:43
A British cybersecurity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking information three years ago.

Marcus Hutchins entered his plea in Wisconsin federal court, where prosecutors charged him and an unnamed co-defendant with conspiring to commit computer fraud in the state and elsewhere. Authorities arrested the 23-year-old man on Aug. 2 at McCarran International Airport in Las Vegas, where he was going to board a flight to his home in Ilfracombe, England. He had been in Las Vegas for a cybersecurity convention.

Hutchins is free on $30,000 bail, but with strict conditions. His bond has been modified so that he can stay in Los Angeles near his attorney and travel anywhere in the U.S., but Hutchins is not allowed to leave the country. He is currently staying at a hotel in Milwaukee.

He was also granted access to use a computer for work, a change from an earlier judge's order barring him from using any device with access to the internet. Hutchins' current work wasn't detailed at Monday's hearing. The next hearing in the case was set for Oct. 17.

Hutchins' attorney, Adrian Lobo, hasn't responded to several phone messages left by The Associated Press over the last week.

The legal troubles Hutchins faces are a dramatic turnaround from the status of cybercrime-fighting hero he enjoyed four months ago when he found a "kill switch" to slow the outbreak of the WannaCry virus. It crippled computers worldwide, encrypting files and making them inaccessible unless people paid a ransom ranging from $300 to $600.

Prosecutors allege that before Hutchins won acclaim he created and distributed a malicious software called Kronos to steal banking passwords from unsuspecting computer users. In addition to computer fraud, the indictment lists five other charges, including attempting to intercept electronic communications and trying to access a computer without authorization.

The indictment says the crimes happened between July 2014 and July 2015, but the court document doesn't offer any details about the number of victims. Prosecutors have not said why the case was filed in Wisconsin. The name of Hutchins' co-defendant is redacted from the indictment.


Federal court's agenda has topics that draw Trump's ire
Business Law Info | 2017/07/19 03:14
The nation’s largest federal court circuit has clashed repeatedly with President Trump over the past six months, and the agenda for its annual meeting is not shying away from topics that have stoked the president’s ire.

Immigration, fake news and meddling in the U.S. election are among the subjects to be discussed or touched on at the four-day conference of the 9th Circuit courts in San Francisco starting Monday.

Judges in the circuit have blocked both of Trump’s bans on travelers from a group of mostly Muslim countries and halted his attempt to strip funding from so-called sanctuary cities.

Trump has fired back, referring to a judge who blocked his first travel ban as a “so-called judge” and calling the ruling that upheld the decision disgraceful. Republicans have accused the 9th Circuit appeals court of a liberal slant and renewed efforts to break it up — a move Trump supports.

The 9th Circuit’s spokesman, David Madden, acknowledged that someone could see a connection between the conference agenda and the administration, but he said there was no intention to link the two.



Appeals court backs Jimmy John's franchisee in labor dispute
Business Law Info | 2017/07/08 00:17
A company that owns 10 Jimmy John's sandwich shops in the Twin Cities was within its rights to fire six union workers who circulated posters critical of the company's sick-leave policy, a federal appeals court ruled Monday.

The full 8th U.S. Circuit Court of Appeals reversed a three-judge appeals panel, which had affirmed a National Labor Relations Board ruling in favor of the workers, who were part of a unionization drive by the Industrial Workers of the World at shops owned by MikLin Enterprises.

The full appeals court concluded that the poster attack was "so disloyal" that it wasn't protected by federal labor law.

The posters were timed to the flu season in early 2011. They protested the company's policy against workers calling in sick without finding replacements to take their shifts, and accused the company of putting the health of its customers at risk. The poster features two identical photos of Jimmy John's sandwiches but said one was made by a healthy worker and one was made by a sick worker.

"Can't tell the difference?" the poster read. "That's too bad because Jimmy John's workers don't get paid sick days. Shoot, we can't even call in sick. We hope your immune system is ready because you're about to take the sandwich test."

The poster and a press release were distributed to more than 100 local and national news organizations, and the IWW threatened wider distribution if its demands were not met.

The NLRB concluded that MikLin violated protections for employee communications to the public that are part of an ongoing labor dispute. The three-judge appeals panel agreed. But the full appeals court said the board misapplied a controlling precedent set in a 1953 U.S. Supreme Court case that permits firings for disloyalty when the quality of a company's product is attacked, as opposed to communications targeting the employer's labor practices.


EU Court: Vaccines Can Be Blamed for Illnesses Without Proof
Business Law Info | 2017/06/23 03:20
The highest court of the European Union ruled Wednesday that courts can consider whether a vaccination led to someone developing an illness even when there is no scientific proof.

The decision was issued on Wednesday in relation to the case of a Frenchman known as Mr. J.W., who was immunized against hepatitis B in late 1998-99. About a year later, Mr. J.W. was diagnosed with multiple sclerosis. In 2006, he and his family sued vaccine-maker Sanofi Pasteur in an attempt to be compensated for the damage they claim he suffered due to the vaccine. Mr. J.W. died in 2011.

France's Court of Appeal ruled there was no causal link between the hepatitis B vaccine and multiple sclerosis, and dismissed the case. Numerous studies have found no relationship between the hepatitis B shot and multiple sclerosis.

After the case went to France's Court of Cassation, it was brought to the European Union. On Wednesday, the EU's top court said that despite the lack of scientific consensus on the issue, a vaccine could be considered defective if there is "specific and consistent evidence," including the time between a vaccine's administration and the occurrence of a disease, the individual's previous state of health, the lack of any family history of the disease and a significant number of reported cases of the disease occurring following vaccination.

In a statement, the court said that such factors could lead a national court to conclude that "the administering of the vaccine is the most plausible explanation" for the disease and that "the vaccine therefore does not offer the safety that one is entitled to expect." It did not rule on the specific French case.



Ronaldo summoned to court, Mourinho accused of tax fraud
Business Law Info | 2017/06/20 17:08
Cristiano Ronaldo has been summoned to appear before a Spanish judge, and Jose Mourinho could be next.

Ronaldo and Mourinho are the latest members of the soccer elite to be accused of tax fraud in Spain. Lionel Messi and Javier Mascherano, among others, have already been convicted.

On Tuesday, Ronaldo was told to appear in court on July 31, while Mourinho was accused by a state prosecutor of defrauding Spain's Tax Office of 3.3 million euros ($3.7 million).

Ronaldo, who is in Russia at the Confederations Cup with Portugal's national soccer team, has played in Spain for Real Madrid since 2009. The 54-year-old Mourinho was Real Madrid coach from 2010-13. He now is the coach of English club Manchester United.

The cases are about the profits made from image rights, not salaries from their clubs. Real Madrid and Man United are not directly involved.

Both Ronaldo and Mourinho are represented by Portuguese agent Jorge Mendes. Atletico Madrid striker Radamel Falcao and Real Madrid defender Fabio Coentrao, who have also been accused of tax fraud in Spain, are also clients of Mendes.

A request for comment from Mendes' agency, Gestifute, was not immediately answered.

Last week, Ronaldo was accused by a state prosecutor of four counts of tax fraud totaling 14.7 million euros ($16.5 million). The Portugal forward is now under official investigation and will have to appear in the Pozuelo de Alarcon court No. 1 on July 31. A judge will then decide if they are grounds to charge him with a crime.

The prosecutor said last Tuesday that there was evidence that Ronaldo used a shell company in the Virgin Islands to hide the money he had made from image rights. Ronaldo has denied any wrongdoing.

The accusations against Ronaldo have caused speculation in Portugal and Spain that he is now considering leaving the country to play elsewhere.

The summoning of Ronaldo coincided with the same Madrid-based prosecutor's office accusing Mourinho of two counts of tax fraud.






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