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Law Firm to Investigate MN Bridge Collapse
Lawyer Blog News |
2007/12/21 17:23
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The state legislature has hired a Minneapolis law firm to help in an investigation of the 35W bridge collapse, according to media reports.
The members of a joint bipartisan bridge investigation committee retained Minneapolis-based Gray Plant Mooty to serve as special counsel. The firm, which is being paid $500,000 to conduct its review, plans to issue a report of its finding in March.
Sen. Dick Cohen, DFL-St. Paul, told Minnesota Pulic Radio Wednesday that the investigation aims to uncover why the bridge collapsed, and also how to prevent future transportation problems.
In addition to this and the official investigation from the The National Transportation Safety Board, a private firm is also examining the state's bridge inspection program, and the Minnesota Office of the Legislative Auditor is scrutinizing MnDOT and its expenses. There are also several law firms that have launched similar investigations, MPR reported.
MnDOT is paying a Chicago-based firm that is working with the NTSB's probe $2 million to look into the collapse. Gov. Pawlenty has said that the firm would provide another set of eyes on the investigation.
However, the Star Tribune quoted state Sen. Dave Senjem, R-Rochester, who serves as Minority Leader, as saying the legislature's move would duplicate other investigations. |
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U.S. judge approves $3.2 bln in Tyco settlements
Lawyer Blog News |
2007/12/20 15:03
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A federal judge on Wednesday approved settlements worth $3.2 billion for investors who sued Tyco International Ltd following an accounting scandal that led to the imprisonment of ex-chief Dennis Kozlowski. Also approved was about $464 million in legal fees and $28.9 million in expense reimbursement for the plaintiffs' lawyers. It is believed to be the biggest-ever fee award for attorneys in a securities class-action settlement. The lawyers' payments, which when proposed had attracted criticism from some institutional investors as being too hefty, will be drawn from the settlement fund. "In summary, I find that the settlement is fair, reasonable and adequate," U.S. District Judge Paul Barbadoro wrote in the ruling. Tyco agreed in May to pay $2.975 billion to settle several long-running class-action lawsuits. Another defendant, former Tyco auditor PricewaterhouseCoopers LLP, said in July it would pay $225 million to resolve the litigation. Kozlowski and former Tyco finance chief Mark Swartz were found guilty in June 2005 of stealing millions from the conglomerate, a case that became infamous amid revelations that Kozlowski had used company funds to pay for a $15,000 umbrella stand and a $6,000 shower curtain. Kozlowski and Swartz are now serving sentences of up to 25 years apiece in New York state prison. Plaintiffs in the shareholder lawsuit contended that from December 1999 through June 2002, Tyco and others misrepresented the value of acquisitions and misled investors about Tyco's financial health. The settlements were reached before the case ever went to trial. |
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Chicago Lawyer Is Indicted On Refco-Related Charges
Lawyer Blog News |
2007/12/19 14:12
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In a rare case of a lawyer being charged in connection with the alleged wrongs of a client, Chicago lawyer Joseph Collins was indicted today on fraud and other charges in connection with the 2005 collapse of commodities and derivatives firm Refco Inc. Federal prosecutors in Manhattan on Tuesday announced 11 counts against Mr. Collins, of the law firm Mayer Brown LLP, in connection with legal work he did for Refco, including documenting a series of "round trip loans" between related entities and outside investors that Refco completed to shift bad debt off its books from the late 1990s to 2005. The discovery of the transactions led to one of the swiftest collapses in Wall Street history. Phillip Bennett, the former chief executive of Refco, and others have been indicted in connection with the Refco collapse. "Acting hand-in-hand with Bennett, Collins made affirmative misrepresentations, material omissions, and told deceptive half-truths, all to assist Bennett's scheme to steal more than $2.4 billion from potential investors," the indictment said. Lawyers are rarely charged criminally in connection with a client's alleged fraud. In the collapse of Enron Corp., no outside lawyers were charged. "There tends to be gray in legal transactions, but to show intent in a white collar prosecution, it needs to be black and white," says Andrew Weissmann, the former head of the Department of Justice's Enron Task Force and now a partner at Jenner & Block LLP. "It's difficult to develop that kind of evidence against lawyers." The Securities and Exchange Commission also filed a civil complaint Tuesday against Mr. Collins, alleging that he aided and abetted securities fraud at Refco. Mr. Collins, who has been the head of Mayer Brown's derivatives group, is now on leave from the firm while the charges are pending, the firm said Tuesday. "Mayer Brown has cooperated fully with authorities investigating activities related to the collapse of Refco," the firm said in a statement. "Our review of the evidence available to us shows that the firm acted in a professional, competent and ethical manner in its work on behalf of Refco." Mr. Collins's lawyer, William Schwartz, said his client intended to fight the charges and called him "an innocent victim of the Refco fraud. This indictment should send a chill down the spine of every transactional lawyer who believes he or she is representing an honest client." Michael Garcia, the U.S. Attorney for the Southern District of New York, took a different view, saying it is "not a crime to have a client who commits a crime. No lawyer will be prosecuted unless that lawyer knows about the client's fraud and agrees to join in it understanding its unlawful nature." The charges are a blow to a law firm that has weathered several of late. In July, buyout firm Thomas H. Lee Partners LP, which purchased a stake in Refco in 2004, sued Mayer Brown for allegedly failing to inform Lee about the bogus loan transactions. Also this year, an independent examiner filed a report in Refco's bankruptcy, concluding that there was significant evidence that the law firm "knew or should have known" the loans were fraudulent. Beyond Refco, the law firm has struggled with recent defections by high-profile partners, and it suffered negative publicity this year when it fired or demoted 45 partners in an effort to boost its profitability. |
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Judge orders hearing on destroyed CIA videotapes
Lawyer Blog News |
2007/12/19 13:05
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A U.S. judge on Tuesday ordered the Bush administration to explain whether the CIA violated a court order by destroying videotapes of the harsh interrogations of two terrorism suspects. U.S. District Court Judge Henry Kennedy, who in 2005 had ordered the government to preserve information on prisoner mistreatment at the U.S. naval base at Guantanamo Bay, Cuba, scheduled a court hearing on the tapes for Friday, overriding government objections. Lawyers for a group of Guantanamo Bay inmates contesting their detention had requested the hearing to learn whether the government had complied with the preservation order. They cited reports that information obtained from the interrogations implicated five unnamed Guantanamo detainees. "We hope to establish a procedure to review the government's handling of evidence in our case ... and generally to require an accounting from a government that has admitted that it destroyed evidence," said David Remes, an attorney for the group of inmates. He declined to comment on whether he believed any of his clients were implicated during the interrogations. The CIA on December 6 disclosed that it had destroyed hundreds of hours of interrogation tapes, prompting an outcry from congressional Democrats and human rights activists. The sessions recorded on the tapes were believed to have included a form of simulated drowning known as waterboarding, which has been condemned internationally as torture. The CIA said it destroyed the tapes lawfully and did so out of concern for the safety of agents involved if the recordings were ever made public. The White House has repeatedly denied the United States tortures terrorism suspects. The Justice Department declined to comment on the judge's hearing order but the department last week urged Kennedy not to investigate the videotapes. |
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S. Korean Pleads Guilty to Lying to FBI
Lawyer Blog News |
2007/12/18 13:36
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A South Korean man suspected of spying on North Korea for his government has pleaded guilty to charges that he repeatedly lied about his activities to the FBI. Park Il Woo pleaded guilty in federal court on Friday to lying about his role as a South Korean agent, the U.S. attorney's office in Manhattan said. Park, who also goes by the name Steve Park, was never charged with espionage. Prosecutors have said that Park made 50 trips to China and the Korean peninsula over the last several years and had appeared to be engaged in espionage type activities for at least five years. Park is a South Korean citizen living in the United States. U.S. law requires anyone acting as an agent of a foreign government to register with the attorney general and disclose the nature of the activity. An FBI agent said in court papers that Park had not registered, though he had admitted meeting with South Korean intelligence officers and agreeing to be paid to travel to North Korea to gather information for South Korea. According to court papers, Park met with the FBI once in 2005 and twice this year, each time lying about his contacts with or knowledge of certain South Korean officials. Park's lawyer has said her client is a law-abiding resident, and this case was an instance in which "what appears to be quite bad turns out to be much less." |
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Court throws out publisher/freelancer settlement
Lawyer Blog News |
2007/12/17 14:08
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An appeals court has thrown out a settlement between freelance writers and publishers such as the New York Times and Dow Jones & Co. The writers had sued these publishers, and others including ProQuest and Knight Ridder, asserting that they had not granted the publishers the right to reproduce their work on the internet or in databases. A panel of Court of Appeals judges voted two to one to conclude that the district court lacked the power to approve the settlement that had previously been reached. This was worth up to $18 million.
Circuit judge Chester Straub said: "The overwhelming majority of claims within the certified class arise from the infringement of unregistered copyrights.
"We have held, albeit outside the class-action context, that district courts lack statutory subject matter jurisdiction over infringement claims arising from unregistered copyrights." |
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