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Court weighs securities fraud class-action cases
Headline Legal News |
2014/03/05 14:36
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The Supreme Court is considering whether to abandon a quarter-century of precedent and make it tougher for investors to band together to sue corporations for securities fraud.
The justices hear arguments Wednesday in an appeal by Halliburton Co. that seeks to block a class-action lawsuit claiming the energy services company inflated its stock price.
A group of investors says it lost money when Halliburton's stock price dropped after revelations the company misrepresented revenues, understated its liability in asbestos litigation and overstated the benefits of a merger.
Justices threw out the company's first attempt to block the lawsuit in 2011. But Halliburton is now urging the court to overturn a 25-year-old decision that sparked a tidal wave of securities-related, class-action lawsuits against publicly traded companies and has led to billions in settlements.
The court's 1988 decision in Basic v. Levinson says shareholders who claim they were defrauded by false statements in securities filings don't have to prove they actually relied on the statements. Rather, the court reasoned that any misrepresentation would be reflected in the current stock price. Even if investors are not aware of the misstatements, they are presumed to be aware of them because they affect the stock price.
This presumption, known as the "fraud-on-the-market theory," has become the driving force for modern class-action securities cases. But some economists have questioned whether this theory makes sense anymore, saying it doesn't account for the sometimes random and arbitrary nature of stock trading. |
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Court: Spain can extradite Liberty Reserve founder
Headline Legal News |
2014/02/24 14:54
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A Spanish court has ruled that a man accused of being behind one of the world’s biggest money laundering businesses can be extradited to the U.S. to face charges there.
Arthur Budovsky, who founded currency transfer and payment processing company Liberty Reserves, can appeal the ruling, the National Court said late Friday. Spain’s government must also approve the decision for an extradition to happen.
It wasn’t immediately clear if Budovsky would appeal. The 40-year-old Costa Rican, who was arrested at Madrid airport in May 2013, has acknowledged founding Liberty Reserve in 2006, but says he sold his share to stay on only as a consultant.
U.S. officials accuse Budovsky of using Liberty Reserve as a kind of underworld bank which handled about $6 billion worth of illicit transactions. |
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Fla. man guilty of lesser counts in music shooting
Headline Legal News |
2014/02/20 14:49
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Prosecutors say they may retry a Florida man on first-degree murder charges in the fatal shooting of a teenager after an argument over loud music.
A jury convicted Michael Dunn, a 47-year-old software developer, on Saturday of attempted murder for shooting into a carful of teenagers after the argument, but jurors couldn't agree on the most serious charge of first-degree murder. A mistrial was declared on that charge. State Attorney Angela Corey said her office would consider seeking a retrial.
Meanwhile, defense attorney Cory Strolla said he plans to appeal based on several issues, including how the jury could reach guilty verdicts on four counts and deadlock on another.
Dunn was charged with fatally shooting 17-year-old Jordan Davis, of Marietta, Ga., in 2012 after the argument over loud music coming from the SUV occupied by Davis and three friends outside a Jacksonville convenience store. Dunn, who is white, had described the music to his fiancee as "thug music." He claimed he acted in self-defense.
The trial was Florida's latest to raise questions about self-defense and race, coming six months after George Zimmerman was acquitted in the shooting of 17-year-old Trayvon Martin in Sanford, about 125 miles south of Jacksonville. The Dunn trial was prosecuted by the same State Attorney's Office that handled the Zimmerman case.
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Ousted Egypt leader's lawyers protest court cage
Headline Legal News |
2014/02/17 16:50
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Lawyers for Egypt's ousted president and his co-defendants walked out of court on Sunday to protest the soundproof glass cage in which defendants are held during proceedings, state TV reported.
It said judge Shaaban el-Shamy ordered a recess after the lawyers left the hearing, the first in a case in which Morsi and 35 others are facing charges of conspiring with foreign groups and undermining national security.
El-Shamy, who later ordered the trial adjourned until Feb. 23, was quoted by the private CBC TV network as telling the lawyers that the trial would proceed without them. It also reported that Morsi shouted at the start of the trial that he could not hear the proceedings.
El-Shamy sent technicians to inspect the cage to verify Morsi's claim, CBC said. The judge then ordered the volume raised to allow Morsi to better hear. The defense lawyers remained unsatisfied and walked out.
The cage was introduced after Morsi and his co-defendants interrupted the proceedings of other court cases by talking over the judge and chanting slogans. The cage is fitted to give the judge sole control over whether the defendants can be heard or not when speaking.
Morsi was ousted by the military following millions-strong protests demanding his step down after just one year in power. He, together with leaders of his Muslim Brotherhood, now face a multitude of trials on a range of charges, some of which carry the death penalty.
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Jacksonville man guilty of lesser counts in music shooting
Headline Legal News |
2014/02/17 16:50
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A 47-year-old software developer was convicted Saturday of attempted murder for shooting into a carful of teenagers after an argument over what he called their “thug music,” but jurors couldn’t agree on the most serious charge of first-degree murder.
After more than 30 hours of jury deliberations over four days, a mistrial was declared on the murder charge that Michael Dunn faced in the fatal shooting of one of the black teens. The 12 jurors found him guilty of three counts of attempted second-degree murder and a count of firing into an occupied car.
Dunn was charged with fatally shooting 17-year-old Jordan Davis, of Marietta , Ga. , in 2012 after the argument over loud music coming from the SUV occupied by Davis and three friends outside a Jacksonville convenience store. Dunn, who is white, had described the music to his fiancee as “thug music.”
Dunn showed no emotion as the verdicts were read. Each attempted second-degree murder charge carries a maximum sentence of 30 years in prison, while the fourth charge he was convicted on carries a maximum of 15. A sentencing date will be set at a hearing next month. |
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