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NY top court allows private securities claims
Court Watch |
2011/12/20 10:19
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Enforcement by the state attorney general against securities fraud doesn't pre-empt private common-law claims of negligence against investment companies, New York's top court ruled Tuesday.
The Court of Appeals rejected J.P. Morgan Investment Management's argument that New York's Martin Act gives the attorney general exclusive authority over fraudulent securities and investment practices. The court said Assured Guaranty (UK) Ltd. can sue J.P. Morgan.
We agree with the attorney general that the purpose of the Martin Act is not impaired by private common-law actions that have a legal basis independent of the statute because proceedings by the attorney general and private action have the same goal — combating fraud and deception in securities transactions, Judge Victoria Graffeo wrote.
Assured claimed breach of fiduciary duty and gross negligence, alleging J.P. Morgan invested heavily in risky mortgage-backed securities while committing to a conservative investment policy for reinsurance company Orkney RE II PLC, whose obligations Assured guaranteed. After the market crashed, Assured had to cover Orkney losses.
Here, the plain text of the Martin Act, while granting the attorney general investigatory and enforcement powers and prescribing various penalties, does not expressly mention or otherwise contemplate the elimination of common-law claims, Graffeo wrote. The unanimous ruling upheld a midlevel court, which had reversed a judge. |
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Operative gets prison for bilking NYC mayor
Topics |
2011/12/19 11:17
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A political operative convicted of bamboozling Mayor Michael Bloomberg out of hundreds of thousands of dollars was sentenced to prison Monday un a case that brought the billionaire politician to the witness stand and gave the public a behind-the-scenes look at his campaign and City Hall.
John Haggerty agreed to pay $750,000 in restitution to Bloomberg in addition to his prison term of 1 1/3 to 4 years.
Haggerty, a veteran Republican campaign consultant, was convicted in October after a trial that jurors called a crash course in the workings of politics. Besides the business-mogul-turned-mayor, the case drew in the state's third-largest political party and featured a coterie of Bloomberg insiders sketching their roles in his political, philanthropic and business affairs.
Since starting my career, I've worked hard to make a reputation in the world of politics and government as a dedicated, honorable individual. Today, my reputation is destroyed, Haggerty told the judge in a strong voice. If I could do it all over again, I would certainly do it much differently than I did.
He walked out of court briskly, without handcuffs, after state Supreme Court Justice Ronald Zweibel pronounced a sentence he said he felt necessary to restore the public's confidence in the electoral process and to serve as a deterrent. Haggerty's lawyers said they planned to ask an appeals court to let him out on bail during a planned appeal. |
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Court schedules week of health care arguments
Topics |
2011/12/19 01:16
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The Supreme Court announced Monday that it will use an unprecedented week's worth of argument time in late March to decide the constitutionality of President Barack Obama's historic health care overhaul before the 2012 presidential elections.
The high court scheduled arguments for March 26th, 27th and 28th over the Patient Protection and Affordable Care Act, which aims to provide health insurance to more than 30 million previously uninsured Americans. The arguments fill the entire court calendar that week with nothing but debate over Obama's signature domestic health care achievement.
With the March dates set, it means a final decision on the massive health care overhaul will likely come before Independence Day in the middle of Obama's re-election campaign. The new law has been vigorously opposed by all of Obama's prospective GOP opponents. Republicans have branded the law unconstitutional since before Obama signed it in a March 2010 ceremony.
In an extraordinary move, the justices are hearing more than five hours of arguments over the health care overhaul. In the modern era, the last time the court increased that time anywhere near this much was in 2003 for consideration of the McCain-Feingold campaign finance overhaul. That case consumed four hours of argument.
The Supreme Court will start the week of arguments that Monday with one hour on whether court action is premature because no one yet has paid a fine for not participating in the overhaul.
Federal law generally prohibits challenges to taxes until they are paid. The 4th U.S. Circuit Court of Appeals in Richmond, Va., ruled earlier this year that the penalty for not purchasing insurance will not be paid before federal income tax returns are due in April 2015, therefore it is too early for a court ruling. |
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Pomerantz Law Firm Has Filed a Class Action
Marketing |
2011/12/18 11:17
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Shareholders of Pain Therapeutics, Inc. are reminded of the securities class action lawsuit filed against Pain Therapeutics and certain of its officers. The class action (1-11-CV-1034), filed in the United States District Court, Western District of Texas, is on behalf of a class consisting of all persons or entities who purchased PTIE securities during the period from February 3, 2011 through June 23, 2011 (the Class Period). This class action is brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. Section 240.10b-5.
If you are a shareholder who purchased PTIE securities during the Class Period, you have until January 31, 2012 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Complaint alleges that, during the Class Period, PTIE made false and/or misleading statements and/or failed to disclose material facts about a new drug, REMOXY. Specifically, PTIE failed to disclose that REMOXY was not approvable by the U.S. Food and Drug Administration due to chemistry, manufacturing, and control deficiencies that caused inconsistent results during laboratory tests. |
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Phil Spector to take appeal to US Supreme Court
Law Firm News |
2011/12/16 09:30
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A lawyer for imprisoned music legend Phil Spector is asking the U.S. Supreme Court to review his murder conviction, arguing his constitutional rights were violated by the trial judge.
Attorney Dennis Riordan contends that Superior Court Judge Larry Paul Fidler became a witness for the prosecution by offering his opinion on an expert's testimony.
The filing was expected to reach the court Friday. It cites the prosecution's use of the judge's videotaped comments and his picture during prosecution summations.
The same arguments were made to state appellate justices, who refused to consider them because of a belated filing. They upheld Spector's second-degree murder conviction in the death of actress Lana Clarkson.
The California Supreme Court declined to review the case. |
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Wall St. seeks dismissal of Ala. record bankruptcy
Law Firm News |
2011/12/16 09:30
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Wall Street creditors asked a federal judge Thursday to throw out the record bankruptcy filed by Alabama's largest county over more than $4 billion in debt, arguing state law doesn't allow it.
Lenders claimed during a hearing and in court documents that Alabama law permits bankruptcy only for bond debt, and Jefferson County has a different type of debt called warrants. The county and creditors could be thrown back into out-of-court settlement talks if the judge agrees.
The county contends bankers are cherry-picking state law in hopes of getting the case dismissed, and that any government in the state can go bankrupt whether its debt is for bonds or warrants.
The Jefferson County Commission president, David Carrington, testified that municipal bankruptcy was the county's sole option after intense negotiations fell apart. |
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