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Republicans Question Sotomayor on Abortion Issues

The National Law Journal

U.S. Supreme Court nominee Sonia Sotomayor weathered a third day of her Senate confirmation hearing Wednesday, frustrating Republican senators' attempts to probe her controversial past speeches and her views on abortion and other hot-button issues. Appearing more relaxed than on Tuesday, Sotomayor also discussed her years as a private practitioner and as a prosecutor in New York City, and spoke in greater detail than she has before about business law issues.

2nd Circuit Says Adviser's Knowledge of Bayou Hedge Fund Fraud Not Proven

New York Law Journal

An adviser on investing in hedge funds cannot be sued for securities fraud for recommending a fund that later turned out to be a Ponzi scheme, the 2nd U.S. Circuit Court of Appeals has ruled in a closely watched case. The circuit found that the requirement of scienter was not met in the pleadings against an adviser who steered a client to Samuel Israel III and other founders of the Bayou funds group that later bilked investors out of more than $400 million.

Federal Judge Finds Bailout Act Voids Citigroup's Bid for Wachovia

New York Law Journal

Rejecting Citigroup's bid for as much as $60 billion in damages against Wells Fargo, a New York federal judge ruled Wednesday that the emergency bailout package passed by Congress in October voided an exclusivity agreement that Citigroup had for buying embattled Wachovia Corp. in a deal that was ultimately trumped by Wells Fargo. Judge Shira Scheindlin's decision is the first ruling by a federal judge to interpret §126(c) of the Emergency Economic Stabilization Act.

Computer Sciences Corp. ERISA Stock-Drop Case Dismissed

The American Lawyer

An ERISA suit against Computer Sciences has been dismissed on summary judgment by a Los Angeles federal judge. The plaintiffs had alleged that the company and its retirement plan committee had breached their fiduciary duties to participants in its 401(k) plan by continuing to invest retirement plan assets in the company's stock, in the face of stock option backdating allegations. Noting the 9th Circuit's 2008 reversal of a similar ruling in a stock drop case, a lawyer for the plaintiffs said there are plans for an appeal.

Feeder Funds Held Subject to Commodity Pool Regulation

New Jersey Law Journal

A fund that solicits money from investors for trading in commodity futures is subject to registration and regulation as a commodity pool operator, even if it does no trading itself, the 3rd U.S. Circuit Court of Appeals has held in a precedent-setting ruling. The decision could have repercussions in suits against other "feeder funds," including those that funneled investors' money into accounts run by Bernard Madoff in his $50 billion Ponzi scheme.

Pa. High Court Suspends Lemon Lawyers, but Orders Stay

The Legal Intelligencer

The founders of one of the largest lemon law practices in the northeastern U.S. have received suspensions from the Pennsylvania Supreme Court, but those suspensions have been stayed. According to a separate court ruling, the founding partners of Kimmel & Silverman had failed to adequately supervise a new satellite office they started in Maryland and also failed to properly communicate with a client of the firm after the sole lawyer in that office resigned.

Tolkein Film Trilogy Rings False for His Heirs

The American Lawyer

Despite more than $6 billion in box office receipts, DVD sales and merchandising from the film adaptation of J.R.R. Tolkein's "Lord of the Rings," his heirs have yet to receive a cent, even though Tolkein sold the film rights to his trilogy in 1969 for $250,000 and 7.5 percent of all future movie receipts. Now the heirs, represented by Greenberg Glusker, have filed suit against New Line Cinema, a Time Warner subsidiary, claiming the studio has used all sorts of accounting wizardry to get out of paying them.

5th Circuit Throws Out Scruggs' $70 Million Deal

The Associated Press

A federal appeals court has thrown out a $70 million settlement brokered by convicted former lawyer Richard "Dickie" Scruggs, who is serving a prison sentence for conspiracy and mail fraud in two bribery cases. The settlement involved a dispute between the Republic of Venezuela and Northrop Grumman Ship Systems. A three-member panel of the 5th U.S. Circuit Court of Appeals found that a district court in Mississippi erred when it declined Venezuela's appeal of the settlement Scruggs agreed to in 2005.

Judge Suspended for Assigning Secretary to Help Run His Real Estate Business

The Legal Intelligencer

A Philadelphia judge who used his judicial secretary to help run his landlord business will be suspended for four months without pay following a sanctions hearing Wednesday, according to counsel in the case. The defense lawyer for Philadelphia Common Pleas Judge Willis W. Berry said he is interested in appealing the case on Berry's behalf, in response to the court's finding that Berry brought the judicial office into disrepute, but that Berry has not yet made a decision on appealing to the state Supreme Court.

Lawyer Accused of Embezzling From Union He Helped Launch

New York Law Journal

A lawyer was charged Tuesday with embezzling funds from a union he helped found. Leonard Leibowitz allegedly withdrew more than $150,000 for his personal use from the account of the 80-member Independent Artists of America Union at the American Ballet Theatre at Lincoln Center in New York. The charge carries a maximum prison term of five years.

Attorney Pleads Guilty to Child Pornography Charge

New York Law Journal

A New York lawyer pleaded guilty Tuesday to possession of child pornography, a spokesman for prosecutors said. Robert Groezinger, who admitted to one count of possessing computer files containing images of child pornography, faces up to 10 years in prison. Sentencing has been set for Oct. 27.

Foley Hoag Helps Nicaragua in World Court Dispute Over River

The American Lawyer

Nicaragua and Costa Rica have been arguing over rights to the San Juan River for nearly 150 years. But on Monday, the U.N.'s International Court of Justice finally set the rules for traffic on the river. According to Nicaragua's attorney, Paul Reichler of Foley Hoag, the court's decision affirms Nicaragua's right to regulate Costa Rica's commercial navigation and its right to provide exclusive police power on the San Juan.

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'Textual Harassment' No Laughing Matter

The National Law Journal

"Textual harassment" is nothing to LOL about, warn employment lawyers. Attorneys say that text messaging in the workplace is turning into a growing liability for employers, who are landing in court over inappropriate and offensive texts that are popping up on employees' cell phones.

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Are Web Applications a Security Concern?

New York Law Journal

The increased corporate reliance on complex applications creates the potential for security vulnerabilities. Attorneys Richard Raysman and Peter Brown discuss Web application security concerns, common Web application attacks and FTC actions against companies with inadequate security.

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One Rogue Worker Can Take an Entire Company Down

The National Law Journal

In January, the 2nd Circuit affirmed the conviction of Ionia Management for the criminal acts of its nonmanagement employees. What set this appeal apart was that Ionia, along with several amici curiae, argued that the court should revisit its long-standing rule that a company can be held criminally liable for any criminal acts of even its low-level employees. The case has sparked a review of the appropriateness of respondent superior criminal liability, say attorneys Stanley A. Twardy Jr. and Daniel E. Wenner.

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Wanted: Unemployed Lawyers for Unpaid Work

The American Lawyer

The New Jersey attorney general's office announced Tuesday it has decided to offer a new program for one of the state's needy groups: lawyers in need of work. The office's Volunteer Associates in Public Service Program will offer unemployed lawyers the option of working 20-plus hours a week for a minimum of three months. But what sounds like a great opportunity for the ranks of laid off and newly deferred associates has a catch: The jobs are unpaid, designed to fill a gap created by the state's hiring freeze.

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