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3rd Circuit Bars Prosecution Threat for Teen 'Sexting'

The Legal Intelligencer

In the first case ever to challenge the constitutionality of prosecuting teens for "sexting," the 3rd Circuit has upheld an injunction that barred a Pennsylvania prosecutor from bringing child pornography charges against girls who refused to attend a class he had designed to educate young people about the dangers of sexting. A unanimous three-judge panel found that any decision to prosecute the teens after they refused to take the class would be retaliation against them for asserting their First Amendment rights.

Wachovia Bank Agrees to Pay $160 Million in Deferred Prosecution Agreement

The National Law Journal

Wachovia Bank has agreed to pay $160 million to the federal government to resolve a charge that the bank willfully failed to effectively monitor for potential money-laundering activity in hundreds of billions of dollars in transactions with Mexican currency exchange houses, the Justice Department announced Wednesday. Prosecutors said more than 20,000 kilograms of cocaine were seized from aircraft bought by drug-trafficking organizations with money wired through Wachovia bank accounts.

Law Firms Protest Lehman Fee Committee's Cuts in Legal Bills

The American Lawyer

The legal fee dispute between the Lehman Brothers estate's fee committee and key law firms working on Lehman's bankruptcy gained momentum this week, when three firms -- Milbank, Tweed, Hadley & McCloy, Jones Day and Curtis, Mallet-Prevost, Colt & Mosle -- filed papers protesting the committee's reductions of their bills. The main argument -- in terms of controversy and dollars -- centers on how much the firms are billing to prepare their bills.

Objectors Fail to Block Mattel Lead Paint Settlement

The National Law Journal

A federal judge has approved a class settlement resolving multidistrict litigation involving lead paint in Mattel toys. In approving the deal following a fairness hearing Monday, Judge Dale Fischer of the Central District of California rejected objectors' claims that the deal amounted to a "coupon" recovery contrary to the Class Action Fairness Act of 2005. The settlement involves millions of toys that were recalled or removed from the market in 2007 by Mattel or its subsidiary Fisher-Price due to excessive lead content.

N.Y. City Bar Retracts Survey's 'Not Satisfied' Finding on Deferred Associates

New York Law Journal

The New York City Bar on Wednesday retracted a finding from a survey suggesting that deferred associates were not satisfied with the lawyers with whom they worked at public interest groups. Saying it had misinterpreted data, the bar association also issued a revised report, which claims that deferred associates "were largely happy with their placements," a stark difference from the previous report, which suggested a "culture gap" existed between the law firm-bound lawyers and their public interest colleagues.

Goldman Sachs Sued for Not Divulging Internal Madoff Ban to Client

New Jersey Law Journal

A Bernard Madoff victim who lost $15 million is suing Goldman Sachs for allegedly failing to tell him in 2004 that he should pull his money out of the Madoff Fund. Retired businessman Jerome Goodman claims in his federal suit that "Goldman Sachs implemented an internal ban on investment with the Madoff Fund in or around 1999" but breached its fiduciary duty in its response to Goodman's request to diversify. Goodman's lawyer, who represents several Madoff victims, says he knows of no similar suits by Goldman Sachs customers.

Chadbourne Rescinds Job Offers to 11 Deferred Associates

New York Law Journal

Chadbourne & Parke confirmed on Wednesday that it had rescinded job offers to 11 incoming associates it had previously deferred past January 2010. Chadbourne said it has paid each of the 11 deferred associates the balance of a $73,000 stipend promised after the firm delayed their start dates. The firm said the decision has no effect on the other lawyers in the class or its 2010 incoming associates and summer class.

Jury Finds Plaintiffs Lawyers Defrauded Railroad in Asbestos Suit

Corporate Counsel

When a federal jury returned a verdict against two Mississippi plaintiffs lawyers, finding they had committed fraud against Illinois Central Railroad, it was the culmination of the railroad's seven-year battle against abusive asbestos claims. It also may have been the first civil trial in which attorneys were nailed for fraud in bringing these claims: The jury found the attorneys lied when they denied knowing their clients had previously settled asbestos claims that should have barred them from filing against the railroad.

High Court Justices, Legal Luminaries Debate Shakespeare's 'Henry V'

The National Law Journal

William Shakespeare's "Henry V" provided the plot for the Shakespeare Theatre Company's annual mock trial Tuesday night in Washington, D.C., featuring a collection of high-profile judges and lawyers, including Supreme Court Justices Samuel Alito Jr. and Ruth Bader Ginsburg -- who was sitting as chief justice for a change. The case before the seven-judge panel asked whether Henry V should be held criminally responsible for the mass execution of French prisoners of war after the Battle of Agincourt in 1415.

Microsoft Hit With Another Multimillion-Dollar Loss in Texas

The Recorder

After being hit with a $290 million trial loss last year, Microsoft and decorated patent lawyer Matthew Powers went into the same Texas courtroom with the same judge, against the same Dallas lawyer -- and lost again. The jury concluded late Tuesday that Microsoft willfully infringed on patents held by VirnetX, and awarded the California technology licensing company $105.8 million. The company, which had been asking for $242 million, will now seek an injunction.

Former RRA Attorney Lived Rent-Free in Home Owned by Rothstein

Daily Business Review

The defense attorney for disbarred attorney Scott Rothstein said in a deposition that he was paid a $350,000 salary and lived rent-free in a waterfront home owned by his employer. An attorney representing the trustee for the defunct Rothstein Rosenfeldt Adler questioned Marc Nurik in an attempt to trace money that moved through the firm before Rothstein's $1.2 billion fraud collapsed. Nurik, who left RRA to defend Rothstein, stayed in the home until investors began clamoring for missed payments on phony settlement financing.

Court Upholds Contempt Sentence for Poison-Pen Letter Writer

New Jersey Law Journal

A gadfly known for suing judges, police and other officials could spend six months in jail for venting his ire at the city of Paterson, N.J.'s corporation counsel. An appeals court on Tuesday held that Bernard Laufgas was properly sentenced for violating a restraining order meant to protect Susan Champion and other city employees. For 14 years, Laufgas has waged a vendetta against the city and its employees, filing suits and sending intimidating letters. Laufgas' appellate lawyer says Laufgas is a First Amendment activist.

Cohen Milstein and BuckleySandler Feud Over Homebuilder Case

The National Law Journal

Two mortgage fraud investigations have sparked a spat between high-powered Washington, D.C., law firms. Citing an alleged conflict of interest, BuckleySandler filed a federal suit seeking to bar the Arizona and Nevada AGs from employing Cohen, Milstein, Sellers & Toll to investigate potential mortgage fraud cases against Pulte Homes. Cohen Milstein has demanded that BuckleySandler correct "knowingly false assertions" in its complaint and accused it of engaging in "a disgraceful and intolerable abuse of process."

Ga. Appeals Panel Revives Survivors' Suits Over Courthouse Shooting

Fulton County Daily Report

Almost five years to the day after Brian G. Nichols' murderous rampage at the Fulton County Courthouse, the Georgia Court of Appeals has revived civil suits filed by two surviving staff members of slain Superior Court Judge Rowland W. Barnes. The appeals court ruling begins with a lengthy recitation of the allegedly ignored warnings and failures to follow sheriff's department policy directives that occurred prior to and during Nichols' escape, as relayed in the plaintiffs' pleadings.

ESI Culling: Trouble With Image Files

Special to Law.com

Some EDD cases deal with digital image file formats that are not forensic, bit-for-bit copies. But what about cases that, at a glance, don't need image files? "Is it due diligence or a waste of resources to include image files in your culling criteria?" asks consultant Jason Briody.

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How to Know if You're a Big Law Cog

Fulton County Daily Report

The Snark takes some time to clarify the term "Cog." Notably, it doesn't just refer to Big Law associates. Here's a quiz that lets you know if you're a Cog, "The Man" (even if you're a woman), or a Consuming Oxygen Guzzler -- a Cog who just sucks in the good air and wastes space.

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