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Legal news from Monday, September 13, 2004 |
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Corporations and securities brief ~ Enron to pay $321 million to fund lost pension plans
Amit Patel on September 13, 2004 5:08 PM ET

In Monday's corporations and securities law news, Public Benefit Guaranty Corp. (PBGC) has announced that Enron has agreed to pay $321 million from the proceeds of its sale of its pipeline operations in CrossCountry Energy LLC to fund pension plans for thousands of former Enron employees. Following the settlement, a bankruptcy judge approved the sale of CrossCountry. As I reported last week, Enron had attempted to block a lawsuit brought by PBGC to control the company's pension plans. Reuters has more.
In other news...
- Sony has agreed in principle to buy Metro-Goldwyn-Mayer, the last independent Hollywood studio, for $4.8 billion. TimeWarner, the world's largest media group, withdrew its bid of $4.6 billion earlier today saying the price was too high. Read the TimeWarner statement regarding the bidding here. The Financial Times has more.
- Former Walt Disney directors Roy Disney and Stanley Gold are calling for a new chief executive for the company as soon as possible. Disney and Gold claim that Eisner's plan to retire in two years is a deliberate attempt to manage the appointment of his successor. Read the Disney and Gold open letter to the Board of Directors of Walt Disney here. Read Eisner's letter to the Board announcing his retirement here. The Financial Times has more.
- The SEC has settled charges of defrauding investors in Pimco Funds with three companies: PA Fund Management LLC, PEA Capital LLC and PA Distributors. The companies which will pay $50 million, consisting of a $40 million penalty and a $10 million distribution to shareholders, did not have to admit or deny the SEC charges. Read the SEC press release here. Read the Pimco Funds press release announcing the deal here[PDF]. AP has more.
- The SEC is considering bringing civil charges against Qwest Communications International Inc.'s former chief executive, Joseph P. Nacchiocould, related to the accounting scandal at the company. This follows the tentative agreement where Qwest has agreed to pay $250 million to settle fraud allegations brought by securities regulators. AP has more.
- US Airways has asked a judge for permission to skip a $110 million pension payment due Wednesday in a bid to keep the company afloat. As reported earlier on JURIST's Paper Chase, a federal bankruptcy judge gave the airline permission to continue its normal operations using money from a loan it secured last year with the help of the government. Reuters has more.
- The SEC is investigating former Wachovia Corp. Chief Financial Officer Robert McCoy regarding the bank's purchase of First Union Corp. stock prior to their merger. The Charlotte Business Journal has more.
Click for previous corporations and securities law news


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Racial, religious profiling growing problem in terror war - rights group report
Jeannie Shawl on September 13, 2004 10:52 AM ET

Amnesty International USA (AIUSA) released a report Monday which concludes that profiling based on racial or religious background has become a growing problem in the US as the government expands its war on terror. Saying that one in three people are at high risk of being victimized, AIUSA makes the following recommendations: 1. The federal government should enact the End Racial Profiling Act of 2004 [PDF], or similarly comprehensive and effective anti-racial profiling legislation. Such a law would help our nation uphold its obligations under international treaties including the United Nations International Covenant on Civil and Political Rights (ICCPR) and International Convention on the Elimination of All Forms of Racial Discrimination (CERD), and make it more difficult for law enforcement officers to violate Americans rights under the equal protection clause of the Fourteenth Amendment to the U.S. Constitution, as well as the Fourth Amendments guarantee to protection from unreasonable searches.
2. State and local governments should enact laws that effectively ban racial profiling. Each existing state law should be amended so that it includes the basic components necessary for such a law to be an effective tool for combating this problem. These components include...: banning the targeting of individuals and groups by law enforcement, even partially, on the basis of race, ethnicity, national origin, or religion, except where there is trustworthy information, relevant to the locality and timeframe, that links persons belonging to one of the aforementioned groups to an identified criminal incident or scheme proscribing mandatory data collection for all stops and for all searches of pedestrians and motorists criminalizing violations of the ban on racial profiling and specifying penalties for officers who repeatedly engage in racial profiling
3. All law enforcement agencies should fully enforce existing local, state, and national anti-racial profiling legislation and policies. Read the executive summary and the full report, Threat and Humiliation: Racial Profiling, National Security, and Human Rights in the United States [PDF]. AIUSA also breaks down racial profiling laws by state and has additional background. AP has more.


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International brief ~ Putin to expand Russian state powers in wake of terrorist attacks; death penalty on agenda
D. Wes Rist on September 13, 2004 10:29 AM ET

Russian President Vladimir Putin has announced plans to expand the Russian central government's powers in response to recent terror attacks on Beslan and two Russian airliners (see JURIST's report on arrests in Beslan case here). Speaking Monday at a meeting of government leaders, Putin said the new authority will allow him to appoint regional governors that are currently elected, as well as move more of the Duma (official site in Russian), the Russian Parliament, to a party-list election process. Currently only half of the Duma's 450 representatives are elected on a party-list basis. Putin has also established a commission to examine the government's response to the attacks (see JURIST's report here), as well as possible methods for cutting down on terror, including the establishment of a new state counter-terrorism agency, the introduction of a color-coded alert system, and the reinstitution of the death penalty. BBC has more. Russian liberals have already condemned the proposals, according to a report on MosNews.com.... Legislative elections in Hong Kong have ended, with pro-democratic parties picking up only three more seats despite the anticipation of a better result. The elections drew a record turnout of voters (view the official results here). Xinhua News has more.... The UN Committee on the Rights of the Child opened its 37th annual session today in Geneva. The Committee began by expressing its sympathy and support for the victims of the Beslan school terrorist attacks. The Committee reviews complaints against states that have signed the Convention on the Rights of the Child and also works to encourage and enhance the treatment of children throughout the world. View the UN press release here.... Tensions appear to be rising over the planned handover of the Bakassi region of Nigeria. The oil-rich peninsula was ruled to be part of Cameroon under a 2002 ICJ ruling on boundary dispute (view the opinion here). The peninsula is home to tens of thousands of Nigerians, and the Nigerian representative was critical of the ICJ's ruling, claiming that it was illegal for the Nigerian government to cede land that was listed as Nigerian in the nation's constitution. BBC has more.


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Bush administration denies ignoring Guantanamo abuses
Jeannie Shawl on September 13, 2004 9:22 AM ET

The Bush administration has denied charges that top military and national security officials ignored warnings about the abuse of prisoners at Guantanamo Bay. In Chain of Command: The Road from 9/11 to Abu Ghraib, a new book by journalist Seymour Hersh set for release Monday, Hersh writes that Defense Secretary Donald Rumsfeld chose to do nothing about evidence of prisoner abuse and that President Bush signed off on a secret unit given advance approval to kill or capture and interrogate "high-value" suspects, which some consider to be in violation of international law. Reacting to the allegations over the weekend, National Security Adviser Condoleezza Rice said that despite some concerns about overcrowding at Guantanamo Bay, there was "nothing that suggested, to my recollection, that there were abuses ... going on at Guantanamo, and certainly nothing that would suggest the kind of thing that went on in Abu Ghraib." Read a transcript of Rice's interview on CNN's Late Edition. The Defense Department also released a statement on Hersh's book, saying that it "apparently contains many of the numerous unsubstantiated allegations and inaccuracies which he has made in the past based upon unnamed sources." Monday's Guardian has details of the charges made in the Hersh volume. Publisher HarperCollins has posted a portion of Hersh's Chapter 1, entitled "Torture at Abu Ghraib: A Guantanamo Problem", on its website here. Also available is a transcript of Hersh's Sunday appearance on NBC News' Meet the Press. AP has more.


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