Legal News

The AM Roundup: Barry Prosecutors Take Case to Ninth Circuit, More

By Ashby Jones

The June 2, 2009 Morning Roundup:

Bonds Ruling Heads to Ninth Circuit: In their appeal to the Ninth Circuit, federal prosecutors allege that San Francisco federal judge Susan Illston abused her discretion when she made alleged positive steroid tests and other key evidence off-limits in Barry Bonds’ perjury trial. Illston banned from the case Feb. 19, on the grounds that there was no proof the tests had anything to do with the former Giants star.

Bonds had been scheduled to go to trial in March, accused of lying under oath about his use of steroids to the grand jury that investigated the Bay Area Laboratory Co-Operative steroids scandal. The judge’s ruling gutted the government’s case, and prosecutors took the unusual step of delaying the trial indefinitely while pursing an appeal. SF Chron; NYT.

Former Kmart CEO Found Liable: A federal jury found the Kmart Corporation's former chief executive, Charles C. Conaway, liable on Monday for misleading investors about the company's cash crisis in the months before its 2002 bankruptcy. The SEC sued him in 2005, accusing him of duping investors in a third-quarter 2001 securities filing and during a Nov. 27, 2001, conference call. Bloomberg.

Trouble at the SEC on the Cuban Case? The inspector general of the SEC is investigating allegations that enforcement staff engaged in misconduct in connection with the insider trading case filed last fall against Mark Cuban. The inspector general opened his investigation after receiving a complaint from lawyers representing Cuban.

The SEC sued Mr. Cuban in November, alleging he dumped his 6% stake in Mamma.com after learning from the company’s chief executive of its plans for a share offering. Share offerings often result in declines in stock prices. The SEC alleges Cuban sold to avoid losses. Cuban denies trading on inside information. WSJ

Full post as published by Law Blog - WSJ.com on June 02, 2009 (boomark / email).