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Government probe of Standard and Poor's
Headline Legal News |
2011/08/19 09:00
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The Justice Department is investigating whether the Standard & Poor's credit ratings agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis, The New York Times reported Wednesday.
The investigation began before Standard & Poor's cut the United States' AAA credit rating this month, but it's likely to add to the political firestorm created by the downgrade, the newspaper said. Some government officials have since questioned the agency's secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.
The Times cites two people interviewed by the government and another briefed on such interviews as its sources. According to people with knowledge of the interviews, the Justice Department has been asking about instances in which the company's analysts wanted to award lower ratings on mortgage bonds but may have been overruled by other S&P business managers.
If the government finds enough evidence to support a case, it could undercut S&P's longstanding claim that its analysts act independently from business concerns. The newspaper said it was unclear whether the Justice Department investigation involves the other two major ratings agencies, Moody's and Fitch, or only S&P.
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Monster iPhone location lawsuit filed against Apple
Headline Legal News |
2011/08/17 09:26
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More than 20,000 South Korean iPhone users have filed a class action lawsuit against US technology giant Apple for alleged privacy violations over the collection of location data, a law firm said.
The suit came after lawyer Kim Hyung-Suk was awarded one million won (US $950) in compensation in June, the first such payout by Apple's Korean unit, following an interim order by a court in the southeastern city of Changwon.
Kim has since led online preparations for a class action suit against Apple and its South Korean unit.
"The suit accuses Apple of breaching articles 10 and 17 of the constitution that ensure pursuit of happiness and protection of privacy, and the South Korean law on protection of location data," a spokesman for Kim's firm Miraelaw said. The suit involves 26,691 people demanding one million won each.
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$168 million securities fraud settlement proposed
Headline Legal News |
2011/08/12 10:35
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The New York State Common Retirement Fund has announced a proposed $168 million settlement of its securities fraud class-action lawsuit against National City Corp. alleging misrepresentations to investors.
State Comptroller Thomas DiNapoli, trustee of the $146.5 billion fund and lead plaintiff, says the defendants agreed to the settlement but admitted no wrongdoing.
PNC Financial Services Group Inc., which bought Cleveland-based National City in 2008, declined to comment.
The suit alleges National City misrepresented the quality of its mortgages and home equity loans and the severity of its losses.
The settlement is expected to go before U.S. District Judge Solomon Oliver Jr. in the Northern District of Ohio for preliminary approval in the next few weeks, with all class members notified after that.
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Law school graduates sue alma mater over job stats
Headline Legal News |
2011/08/12 10:35
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Four graduates of Thomas M. Cooley Law School have sued their alma mater, claiming the school misrepresented its post-graduation employment statistics to attract students.
The Lansing State Journal and the Detroit Free Press report the lawsuit was filed Wednesday. The suit in U.S. District Court for the Western District of Michigan by New York law firm Kurzon Strauss seeks class-action status and $250 million in damages.
James Thelen, Cooley's associate dean for legal affairs and general counsel, says the school stands by its post-graduation employment and salary statistics. He says any claims that students or graduates have been misled or legally harmed are "baseless."
The Lansing-based school earlier sued the law firm, claiming it was defaming the school in online ads seeking potential plaintiffs who attended Cooley.
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Pozen says Texas court upholds Treximet patents
Headline Legal News |
2011/08/08 09:26
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Drug developer Pozen Inc. said Monday that a Texas court upheld three patents supporting its migraine drug Treximet.
Pozen said the U.S. District Court for the Eastern District of Texas ruled that the patents were valid. The court also found that generic versions of Treximet developed by Par Pharmaceutical Co. and Dr. Reddy's Laboratories Ltd. infringed on all three patents, while a version developed by Alphapharm Pty Ltd. infringed on two patents. Teva Pharmaceutical Industries Ltd. had also challenged the patents, but was dismissed from Pozen's lawsuit in April 2010 after it agreed to abide by the court's decision.
The court said the Food and Drug Administration cannot approve the generics made by Dr. Reddy's and Par until Feb. 2, 2025, and that the agency can't approve the Alphapharm generic until Aug. 14, 2017.
Treximet is a combination of GlaxoSmithKline PLC's drug Imitrex and an anti-inflammatory drug developed by Pozen. GlaxoSmithKline markets the drug and pays royalties to Pozen. In the second quarter, those royalty payments accounted for $4 million of Pozen's $4.6 million in total revenue.
The FDA approved Treximet in April 2008 after years of delays, and Par filed for approval of its generic in October of that year.
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