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Today's Date: U.S. Attorney News Feed
AT&T to Pay Divestitures to Justice Department
Lawyer Blog News | 2007/10/30 18:52
The Department of Justice announced today that it has reached a settlement requiring AT&T Inc. (AT&T) to divest assets to address competition concerns in seven markets in Kentucky, Oklahoma, Missouri, Pennsylvania and Texas, including rights to the “Cellular One” brand in order to proceed with its $2.8 billion acquisition of Dobson Communications Corporation (Dobson). The Department said that in certain areas the transaction, as originally proposed, would have resulted in higher prices, lower quality, and diminished investment in network improvements, and would have substantially lessened competition to the detriment of consumers of mobile wireless telecommunications services.

The Department’s Antitrust Division filed a civil lawsuit today in U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Department filed a proposed consent decree that, if approved by the court, would resolve the Department’s competitive concerns and the lawsuit.

“The required divestitures will preserve competition for residents in rural areas in Kentucky, Oklahoma, Missouri, Pennsylvania and Texas and ensure that these consumers continue to enjoy the benefits of competition, such as lower prices, and higher quality,” said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division.

The transaction is also subject to review by the Federal Communications Commission (FCC). The Department has coordinated with the FCC throughout its investigation.

The divestitures are required to assure continued competition in markets where the merger would otherwise result in a significant loss of competition. In three rural service areas (RSAs) in Kentucky and Oklahoma, AT&T and Dobson each hold one of the two cellular licenses and are the most significant competitors. In two RSAs in Missouri and Texas, AT&T has a minority equity interest in, and important control rights over, the primary wireless competitor to Dobson. According to the complaint, the proposed transaction would substantially reduce competition for mobile wireless telecommunications services in these five markets where the businesses wholly or partially owned by Dobson and AT&T collectively serve more than 60 percent of subscribers. The proposed divestitures remedy the competitive problem caused by the otherwise overlapping ownership.

Similarly, the divestiture of the Cellular One brand and associated rights will ensure continued competition in two markets in Pennsylvania and Texas where a Cellular One licensee is the primary wireless competitor to AT&T. Without the divestiture, AT&T would have had the incentive and ability to harm competition by limiting and eliminating the Cellular One licensee’s ability to use the brand effectively.

AT&T is the largest mobile wireless telecommunications services provider in the United States, measured by subscribers, offering service to more than 63 million subscribers in 50 states. In 2006, AT&T earned revenues of approximately $37.5 billion in revenues from its mobile wireless telecommunication services. Dobson is the ninth largest mobile wireless telecommunications services provider to approximately 1.7 million subscribers in the United States, offering service in 17 states. In 2006, Dobson earned approximately $1.3 billion in revenues. Dobson also owns Cellular One Properties LLC, which licenses the Cellular One brand and promotes the Cellular One service market and related trademarks, service marks and designs.


Judge Refuses To Block Moment Of Silence, For Now
Lawyer Blog News | 2007/10/29 18:54
An atheist who's challenging a new state law that mandates a moment of silence in Illinois schools before the start of each school day has lost his first battle but,is still waging his war. The latest on the story from WBBM's Regine Schlesinger.
        
Atheist Rob Sherman and his daughter Dawn, 14, went before U.S. District Judge Robert Gettleman asking the judge to bar Buffalo Grove high school from implementing the new law tomorrow.  Judge Gettleman denied the motion but, held out the possibility he might still issue a statewide injunction at some future point. 

Sherman argues the law is intended to inject religion in the public schools even though it's worded as a time for prayer or reflection.  He says his daughter is being robbed of valuable time.

While denying the injunction Judge Gettleman indicated he has serious reservations about the law. The next hearing is scheduled for November 14th.


Supreme Court to review Exxon Valdez award
Lawyer Blog News | 2007/10/29 16:44
The Supreme Court will decide whether a $2.5 billion punitive damages award against Exxon Corp. -- now Exxon Mobil -- for its role in the 1989 Exxon Valdez oil spill in Alaska was excessive. The justices agreed to hear the case Monday, and oral arguments will be held sometime next year. The suit was brought by fishermen, landowners, local governments and native Americans who claimed private economic harm from the spill. The company claimed it had already paid many millions in government fines, as well as $3.4 billion in cleanup costs.

A jury originally awarded $5 billion in 1994. A federal court later cut that amount in half, but it still was believed to be the largest punitive damages judgment of its kind in U.S. courts.

Much of the initial blame in the accident was placed on Capt. Joseph Hazelwood, whose alcohol abuse was found to have contributed to mistakes that let the ship to run aground. The company and the plaintiffs used different arguments when citing Hazelwood's actions, in efforts to boost their respective cases.

The issue was whether, based on past high court precedent limiting punitive awards, the judgment was too high. The company argues it should not have to pay any damages, and that the case has dragged on too long. Special maritime laws govern these kinds of disputes, and previous such cases will be important benchmarks when the justices grapple for a ruling.

Lawyers for the plaintiffs said the company has deep financial pockets, and even a multibillion-dollar judgment amounts only to "barely more than three weeks of Exxon's net profits."



NHPD narcotics cop pleads guilty
Lawyer Blog News | 2007/10/29 13:58
Former New Haven Police Department Lt. William “Billy” White, who headed the department’s narcotics unit for more than a decade, pleaded guilty Friday to conspiracy to commit bribery and theft of government property. White’s change of plea status — he pleaded not guilty shortly after his arrest last March — may result in a lesser sentence than if had he not changed his plea and had then been found guilty. White’s decision follows close on the heels of guilty pleas by former NHPD Detectives Jose Silva and Justen Kasperzyk, two other subjects of the federal investigation.

Following White and Kasperzyk’s arrest, the NHPD disbanded the narcotics unit and the city hired the Police Executive Research Forum to evaluate the NHPD. At forums since the original arrests, some city residents expressed frustration with a department they said has lost sight of community policing.

City Hall spokeswoman Jessica Mayorga said the three former police officers do not represent the general conduct of the rest of New Haven’s police force.

“It’s important for the community to understand that this is three officers who did despicable things,” Mayorga said. “These … officers do not represent the hard work of those 400 other officers.”

White has been charged with one count of bribery conspiracy — for which he faces up to five years imprisonment and a $250,000 fine — and two counts of government property theft, which could lead to 10 years and $250,000 in penalties. White must also pay restitution for the stolen federal and local funds and forfeit the money he gained from the bribery conspiracy, which will total over $25,000.

But the guilty plea affords White the benefit of a potential reduction of his Adjusted Offense Level, making 37 to 46 months imprisonment and a fine between $7,500 and $75,000 the most probable punishment. White is also subject to three years of supervised release after his prison term ends.

The Federal Bureau of Investigation began its undercover operation in July 2006, when a clandestine Connecticut State Police Sergeant began working with White, the supervisor of NHPD’s Narcotics Enforcement Unit at the time. Several incidents — including an FBI sting operation on Jan. 31, 2007 — confirmed White’s participation in unlawful acts and culminated in his indictment.

The FBI planted about $27,500 in a car with hidden cameras and microphones during its sting operation, luring White to the scene with a tip from the undercover agent’s informant. During this first encounter, White searched the trunk and removed $5,000 of the cash, professing he would not steal all of the funds in order to protect the informant’s safety. But later in the day, White, thinking the money belonged to a drug dealer, returned to the car and stole all of the money, splitting the stolen funds with the unnamed undercover officer.



Judge Orders T.I. Released on Bond
Lawyer Blog News | 2007/10/27 18:52
A federal judge ordered rapper T.I. released on $3 million bond Friday, but he must remain in home confinement while he awaits trial on weapons charges. U.S. Magistrate Judge Alan Baverman said the singer must remain under house arrest at a home in Henry County. He wasn't more specific about the location. T.I. (real name: Clifford Harris) will be monitored 24 hours a day by a private monitoring service that he must pay for.

He's restricted to the home except under certain circumstances, including medical appointments and court appearances. He cannot own any firearms and cannot have contact with any witnesses or informants in the case.

Noting that T.I has a team of highly qualified attorneys, the judge said: "You shouldn't do anything that will undermine their ability to represent you."

Defense lawyer Ed Garland argued that based on the amount of money being put up, there's no reason not to release his client.



US court lets Liz Taylor keep van Gogh painting
Lawyer Blog News | 2007/10/27 18:49
The U.S. Supreme Court allowed actress Elizabeth Taylor to keep a Vincent van Gogh painting on Monday, rejecting an appeal by descendants of a Jewish woman who said she was forced to sell it before fleeing Nazi Germany in 1939.

The justices refused to review a U.S. appeals court ruling that dismissed the lawsuit because the descendants waited too long to bring their claims demanding that Taylor return van Gogh's "View of the Asylum and Chapel at Saint-Remy."

Van Gogh painted the work in 1889. Less than a year later, he killed himself. Taylor's father purchased the painting on her behalf at a Sotheby's auction in 1963 in London for 92,000 British pounds -- about $257,000 at the time. The painting now is estimated to be worth tens of millions of dollars.

Four South African and Canadian descendants of Margarete Mauthner, a Jewish woman who fled Germany in 1939 for South Africa, sued Taylor in 2004 in federal court in California.

The lawsuit claimed the Nazis forced Mauthner to sell the painting under duress before fleeing Germany and that it should be returned to her descendants under the 1998 U.S. Holocaust Victims Redress Act.

Taylor said the record showed the painting was sold through two Jewish art dealers to a Jewish art collector, and that there was no evidence of any Nazi coercion or participation in the transactions.

A U.S. appeals court upheld the dismissal of the lawsuit.

It ruled the descendants had waited to long to bring the lawsuit and the claims under state law were barred by the statute of limitations.

It also ruled that the 1998 federal law refers to the United States and other governments working to return artworks confiscated during the Nazi rule to their rightful owners, but does not give individuals the right to sue private art owners.

Attorneys for the descendants appealed to the Supreme Court. "The issue is of pressing importance, given the advanced age of Holocaust survivors and their heirs," they said.

"There is a strong recent trend toward permitting claimants of Holocaust-era artwork to seek to recover them, regardless of the statute of limitations," the attorneys said in asking the Supreme Court to hear the case.

Taylor's attorneys opposed the appeal and said the appeals court's judgment was correct. They said the policy arguments by the descendants over the 1998 law should be directed to the U.S. Congress, not the Supreme Court.

In siding with Taylor, the high court turned down the appeal without any comment or recorded dissent.



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