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Legal news from Monday, January 24, 2005 |
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Environmental brief ~ British company to ban smoking in 650 eateries
Tom Henry on January 24, 2005 2:30 PM ET

[JURIST] In Monday's environmental law news, British company JD Wetherspoon [corporate website], owner of 650 restaurants and pubs, announced that it will be banning smoking in its establishments, with all of them becoming smoke-free by May 2006. The company has been a proponent of non-smoking areas, but has decided to take the action of completely banning smoking indoors. Outdoor smoking would still be allowed. The British government's White Paper on Public Health [PDF] includes restrictions on smoking in licensed premises that would take effect by the end of 2008, but does allow smoking in pubs where food is not served. BBC News has the full story, and more on the government's proposed smoking ban.
In other news, - The Canadian provincial government of Prince Edward Island [government website]will hold hearings next month on a potential ban of genetically modified (GM) foods. GM crops are currently permitted and regulated by the Canadian government, although the provinces can set up local controls. Currently PEI farmers have an agreement to not grow GM potatoes, although a number of other GM foods are currently grown in the province. Canadian Press has more.
- Spain's Ministry of Industry [official website in Spanish] has changed its emission rights allocations, increasing the limits for coal-fired power plants and reducing the limits for cleaner combined-cycle and new power plants. The limits, part of an EU plan to reduce greenhouse gas emissions, initially were at 148.7 million tons of CO2 over three years, and were raised to 153.2 million tons. Reuters has more.
- The EPA is seeking comments on a proposed rule [official text] that would approve a State Implementation Plan (SIP) revision submitted by Maine. The SIP is done in accordance with the Clean Air Act [text]. Maine has proposed a low emission vehicle (LEV) program that would help to bring the state into position to attain the clean air standards. Comments can be made here until February 23.
- The Alcohol and Tobacco Tax and Trade Bureau [official website] has announced that it is seeking to designate two new viticultural areas and realign the boundary between two others. There are currently over 150 viticultural areas in the US. The proposed "Horse Heaven Hills" area is approximately 60 miles long and 22 miles wide and is located in the current Columbia River viticultural area in south-central Washington state. Comments on this proposal [text] can be made here until March 25. Also proposed is the "High Valley" area which measures about 3 miles long and 8.5 miles wide and is mostly located in the current Clear Lake viticultural area of northern California. Comments on this proposal can be made until March 25 [comment submission form]. The agency also wants to realign the boundary between the Santa Lucia Highlands and Arroyo Seco viticultural areas in Monterey County, California. Currently, the Olsen ranch owned by E&J Gallo lies mostly within the Santa Lucia area, with the exception of 200 acres that lie across the boundary in the Arroyo Seco area. The realignment would move the boundary about 1000 feet east and align it with the land grant borders. Comments on this proposal can be made here until March 25.
- The USDA Agricultural Marketing Service seeks comments on a proposed rule [text] that would make uniform the size requirements for all US No.2 grade round potatoes handled under the marketing order for Idaho-Eastern Oregon potatoes. Currently, the minimum size requirement is 1 7/8 inches in diameter for red round potatoes, and 2 inches for non-red round potatoes. The proposed rule would establish the 1 7/8 inch minimum for all round potatoes. Comments can be made here until March 25, 2005.


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Corporations & securities brief ~ ImClone settles shareholder lawsuits
Amit Patel on January 24, 2005 1:25 PM ET

[JURIST] Leading Monday's corporations and securities law news, ImClone Systems Inc. [corporate website] has agreed to settle a class-action shareholder lawsuit from 2002 for $75 million. The lawsuit accused the company of making false and misleading statements about a prospective drug. The settlement comes a week after ImClone's former CEO settled an insider trading case [SEC press release] with the SEC for more than $5 million. ImClone agreed to settle the case to save both money and management distractions. The settlement still needs to be court-approved. ImClone also announced it will settle a consolidated shareholder derivative action and will get $8.75 million in cash from insurance companies to pay the settlement. Read the ImClone press release. Bloomberg has more.
In other news... - As previously reported on JURIST's Paper Chase, Microsoft announced Monday that it has decided not to appeal the landmark December ruling [JURIST report; text] of the European Court of Justice [official website] ordering it to immediately implement EU antitrust sanctions that the European Commission [official website] imposed in a March 2004 decision [PDF]. AFP has more.
- The SEC [official website] has launched a probe into Travelzoo Inc. [corporate website], an internet media company, regarding the trading of its shares by the company's officers, directors and employees. The probe is in response the extreme volatility in the stock price in 2004. Reuters has more.
- Federated Investors Inc. [corporate website] has begun talks with the SEC and New York Attorney General Eliot Spitzer to settle allegations of improper trading in its mutual funds. The company also announced the SEC may still file civil charges against two employees involved in the scandal. Dow Jones has more.
- Corinthian Colleges Inc. [official website], a post-secondary education company, announced the SEC has ended its informal probe into the company and will not take any enforcement action. The probe was focused on Corinthian's fiscal 2004 financial projections as well as the Department of Education's program review at the San Jose, California, campus of Bryman College. Read the Corinthian press release. CBSMarketWatch has more.
- The jury in the corporate fraud trial for HealthSouth CEO Richard Scrushy was selected today. Read the indictment [PDF] against Scrushy. AP has more.
click for previous corporations and securities law news


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DOJ investigates antitrust implications of newspaper mergers
Matt Lubniewski on January 24, 2005 12:29 PM ET

[JURIST] Gannett Company [official site], the nation's largest newspaper publisher, and the New York Times Company [official corporate site], are under investigation by federal antitrust enforcers regarding their plans to acquire rival papers, according to a report Monday by the Wall Street Journal [subscription required]. The Justice Department is specifically investigating Gannett's proposed buyout of HomeTown Communications Network Inc. [official site], a Midwest publisher of 59 community newspapers, and the New York Times Company's plans to acquire a 49 percent stake in Metro Boston, a competitor of the Boston Globe [official site], also owned by the Times. The Times deal has already generated a complaint from the owners of the Boston Herald [official site]. Although both deals are relatively small, they may be subject to tough DOJ scrutiny, as the newspaper industry heads into another round of consolidation. AP has the full story here.


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International brief ~ US lawmakers to push for Sudan sanctions
D. Wes Rist on January 24, 2005 11:29 AM ET

[JURIST] In Monday's international brief, US lawmakers from the House International Relations Subcommittee on Africa [official website] who met with Sudanese government officials and displaced Sudanese refugees in Chad over the weekend are expected to announce that they will urge the US Government to push harder for UN sanctions against Sudan [official website]. Representatives Barbara Lee, Jim McDermott, Diane Watson and Betty McCollum, as well as Subcommittee Chairman Ed Royce [official website] will also recommend that the African Union peacekeeping force be expanded in number and be given a broader mandate requiring the active enforcement of current cease-fire agreements. Sudan recently concluded a peace agreement between the southern autonomous region and the northern and eastern regions, but still has active conflict occurring in the western Darfur region. JURIST's Paper Chase has continuing coverage of Sudan [JURIST country archive]. The Sudan Tribune has local coverage.
In other international legal news... - German authorities arrested two individuals suspected of involvement in al-Quaeda and alleged to have planned a suicide attack in Iraq during this weekend's upcoming elections. Prosecutor identified Ibrahim Mohammed K. and Yasser Abu S. as the suspects and are currently awaiting a ruling from a German judge on whether there is enough evidence to hold the men on charges of terrorist acts. Deutsche Welle has local coverage.
- Maldives President Maumoon Abdul Gayoom [official profile] announced Sunday that he expects Maldives to have multiple political parties within a year. The announcement reflects proposed reforms in the Maldives government [official website] that began with Saturday's parliamentary elections, which were delayed by the Indian Ocean Tsunami. Procedural hold-ups at the Hilton Resort polling location on Rangali island will delay the official election results [Haveeru report] until Wednesday of this week. Preliminary results show several pro-democracy candidates opposed to Gayoom winning seats, including on the capital island of Male. JURIST's Paper Chase has background [JURIST Newsburst] on the Maldives election. Maldives' Haveeru has local coverage of the proposed reforms. Read the official Maldives press release on the elections .
- The African Union [official website] began its Fourth African Union Summit on Monday in Abuja, Nigeria. The Summit was scheduled to start with a meeting of the AU Permanent Council, considering such topics as the threat of terrorism on the African continent, the possible merger of the African Court on Human and People's Rights and the Court of Justice of the African Union, and the recognition and treatment of polio and AIDS in infected areas. Read the draft agenda [official PDF document] of the PCR. The Summit will also include meetings of the AU Secretariat, the Executive Council, and the annual session of the AU Assembly. Read the official AU meeting agenda.


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UK lawyers call for action on detainees, change in terror law
Jeannie Shawl on January 24, 2005 8:13 AM ET

[JURIST] Britain's Law Society [profession website], which represents lawyers in England and Wales, has called for the nine foreign terror suspects who have been detained in the UK since December 2001 [background from BBC News] to be tried or released. In a decision [text, PDF; JURIST report] issued last month, a nine-judge panel of the House of Lords ruled that the indefinite detention of foreign terror suspects without charge violates the UK Human Rights Act. In a Law Society statement released Monday, Law Society president Edward Nally said:
The Law Society fully accepted the urgent need for the Government to reassess the country's security needs in the aftermath of September 11. We recognise that the Government has a difficult balancing act. However, it is essential that emergency terror legislation [text, UK Anti-Terrorism, Crime & Security Act] protects the country without compromising the Government's duty to uphold fairness and justice.
Indefinite imprisonment without charge or trial is totally unacceptable. Some of these prisoners have now been detained for three years and the time has come for them to be tried or released. The rule of law must prevail and the Government can no longer ignore the Law Lords' ruling.
I am not surprised that lawyers are increasingly frustrated by the Government's apparent lack of respect for the law and human rights. What is happening contravenes fundamental legal principles. Britain's Home Office says it is studying the Law Lords' decision and expects a response to the ruling in the next few weeks. BBC News has more.


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Defense Department denies "bending" statutes by setting up secret espionage arm
Jeannie Shawl on January 24, 2005 7:45 AM ET

[JURIST] The US Defense Department has denied a published report that it has set up a new internal espionage arm to get around legal restrictions on foreign clandestine operations. The Washington Post said over the weekend that DOD had established a "Strategic Support Branch" that would be subject to fewer legal constraints than CIA missions under new interpretations of Title 10 [text] of the US Code, which governs the armed services, and Title 50, which governs foreign intelligence. Title 10 requires the Defense Department to report all deployment orders to Congress, but new DOD guidelines allow for clandestine human intelligence operations to be conducted before the publication of a deployment order. Additionally, Title 50 requires all executive branch departments to keep Congress informed of intelligence activities, but allows an exception for "traditional... military activities" and their "routine support." The Pentagon's general counsel has reportedly reinterpreted "traditional" and "routine" to have a more expansive meaning. A Pentagon spokesman said Sunday: There is no unit that is directly reportable to the Secretary of Defense for clandestine operations as is described in the Washington Post article of January 23, 2005, entitled "Secret Unit Expands Rumsfeld's Domain". Further, the Department is not attempting to "bend" statutes to fit desired activities, as is suggested in this article.
It is accurate and should not be surprising that the Department of Defense is attempting to improve its long-standing human intelligence capability. ...
The demands of the Global War on Terror necessitate a framework by which military forces and traditional human intelligence work more closely together and in greater numbers than they have in the past. These actions are being taken within existing statutory authorities to support traditional military operations and any assertion to the contrary is wrong. The department remains in regular consultation with the relevant committees in Congress and with other agencies within the intelligence community, including the CIA. Read the full DOD statement. Also Sunday, Republican Senator John McCain [official website] said that the Senate Committee on Armed Services [official website] would look into the Pentagon's activities in this area. Read the transcript [PDF] of McCain's interview on CBS' Face the Nation. Reuters has more.


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