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Legal news from Thursday, February 3, 2005 |
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Environmental brief ~ EPA files 338-count complaint against Puerto Rico fruit farm
Tom Henry on February 3, 2005 6:51 PM ET

[JURIST] In Thursday's environmental law news, the EPA has filed a complaint against Puerto Rican agriculture company Martex Farms [corporate website] for violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) [text]. The complaint lists 338 counts of violations that include not properly posting information on pesticides being used and not providing adequate decontamination supplies and protective equipment for its employees. Read the EPA press release.
In other news, - The Vietnam government has ordered the culling of all ducks and pigeons raised for food yesterday in Ho Chi Minh city in an attempt to stop the spread of the avian flu [CDC factpage], or bird-flu, virus. The virus, H5N1, has killed 13 people over the past month and 45 in the past year. Reuters has more.
- The British government is considering a proposal that would give tax breaks to oil companies that pump carbon dioxide from coal and gas power stations into nearly empty undersea oil and gas wells. The basic idea is that the carbon dioxide that is normally emitted into the air from power plants can be captured and then pumped under pressure (turning it into a liquid) into older wells. The liquid carbon dioxide would then force out any remaining oil from the wells, which would be resealed trapping the CO2 inside. The plan has been around for awhile, although there had not been economic incentives to pursue it. It is still unknown if the wells will be able to be resealed in such a way that the CO2 does not seep out. The Guardian has more.
- The final Senate hearing [official hearing statements] on the Clear Skies Act of 2005 [official text] occurred yesterday before the Environment and Public Works Committee [official site]. The White House-supported bill appears to have evenly divided the committee members, with proponents saying it will help curb pollution emissions and improve the economy and opponents saying it is a rollback of current Clean Air Act statutes and a financial reward to utility companies. The bill's sponsor and Committee chairman Senator James. M. Inhofe promised to have a final version of the bill ready for a vote within two weeks. The New York Times has the more.


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Corporations and securities brief ~ Former Healthsouth president indicted
Amit Patel on February 3, 2005 2:59 PM ET

[JURIST] Leading Thursday's corporations and securities law news, prosecutors have announced that former HealthSouth Corp. [corporate website] president and director James P. Bennett has been indicted on charges of fraud, conspiracy, insider trading, money laundering and lying to the FBI in connection with a scheme to sell company stock worth $17.4 million. The charges come during former HealthSouth CEO Richard Scrushy's fraud trial [indictment, PDF]. Testimony during Scrushy's trial indicates Bennett knew of the massive fraud at the rehabilitation giant. AP has more.
In other news... - MCI Inc. [corporate website], which has received a $6.3 billion takeover bid from Qwest Communications International Inc. [corporate website], has now held talks with Verizon Communications Inc. [corporate website] about buying the company. MCI has been looking for a buyer since emerging from bankruptcy last year. Interest in the company has intensified now that SBC Communications Inc. [corporate website] has acquired AT&T Corp. [corporate website] for $16 billion. Reuters has more.
- The US House Financial Services subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises [official website] will hold a hearing on accounting problems at mortgage funder Fannie Mae [corporate website] next week. The subcommittee is expected to hear testimony from the SEC's chief accountant regarding Fannie Mae's massive accounting errors. Read the subcommittee's press release. Reuters has more.
- The Royal Dutch/Shell Group [corporate website] announced Thursday that it is cutting oil reserves for the fifth time in just over a year. The company is reducing its proven energy reserves by 1.4 billion barrels for 2003. The Shell press release includes key financial data and a video interview with Chief Executive Jeroen van der Veer. AP has more.
- Italian auto workers' unions have called a nationwide strike over concerns at
the automotive division at Fiat [corporate website]. This comes one day after Fiat failed to settle with GM over an option to buy Fiat Auto. AP has more.
- The SEC has asked Kinross Gold Corp. [corporate website], Canada's third-largest gold producer, to seek an independent valuation of acquisitions it made in 2003. Kinross announced the request may reduce assets by $918 million. Read the Kinross press release [PDF]. Bloomberg has more.
- As previously reported on JURIST's Paper Chase, US District Court Judge Denise Cotes has thrown out a part of the $54 million settlement by 10 former WorldCom directors to compensate investors who lost billions of dollars. According to the order [PDF], Judge Cotes indicated the settlement, which had the directors contributing $18 million of their own money, would harm future efforts to collect payments from other defendants. Read a website detailing WorldCom litigation still pending in court. USAToday has more.
- The California Supreme Court [official website] have agreed on Wednesday to review a 2nd District Court of Appeal decision in which Genentech Inc. [corporate website] lost a $500 million judgment, including $200 million in punitive damages, for a failure to pay licensing fees to a Southern California medical research center. Read the entire California Supreme Court order list [PDF]. The case is City of Hope National Medical Center v. Genentech Inc. The San Francisco Chronicle has more.
- Nortel Networks [corporate website] is suing former CEO Frank Dunn, former chief financial officer Douglas Beatty and former controller Michael Gollogly, to get back almost $13 million worth of bonuses. CBC News has more.
- The SEC [official website] announced that it will allow companies to submit their reports in a new electronic format that makes it easier to compare data. Read the SEC press release. AP has more.
- Hollywood Entertainment Corp. [corporate website] founder Mark Wattles has resigned as its chief executive and chairman a day after Blockbuster Inc. [corporate website] announced a hostile bid of nearly $1 billion its movie rental rival. Hollywood agreed to be acquired [Hollywood press release] by Movie Gallery Inc. before Blockbuster's announcement. Analysts indicate Blockbuster will have difficulty winning approval for the takeover because of antitrust concerns. Read the Hollywood Entertainment press release announcing the resignation. Read more about the Blockbuster offer. AP has more.
- Massachusetts secretary of state William Galvin [official website] is awaiting information from Gillette [corporate website] on payments chief executive Jim Kilts and other top executives will receive under the merger deal with Procter & Gamble [corporate website]. Read more about Procter & Gamble's acquisition of Gillette. The Financial Times has more.
Click for previous corporations and securities law news.


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Early Iraqi election results show Shiite cleric-endorsed party running strong
Chris Buell on February 3, 2005 10:54 AM ET

[JURIST] Six of Iraq's 18 provinces reported partial election returns Thursday that showed the United Iraqi Alliance [Wikipedia profile], a Shiite party, with strong results in the National Assembly race. The Alliance had been endorsed by the country's most powerful Shiite cleric, Grand Ayatollah Ali al-Sistani [personal website], and led all other parties in the six reporting provinces. The Iraqi National Assembly elections are based on a closed-list proportional representation system, so voters select a party list, which then earns a number of seats proportional to its share of the vote. Interim Prime Minister Ayad Allawi's Iraqi List [list website in Arabic] was reported to be running second in all six provinces. The provinces reporting are Baghdad, Dhi Qar, Muthanna, Qadisiyah, Najaf and Karbala. BBC News has a list of candidates in the election. JURIST's Paper Chase has complete coverage of the Iraqi elections. AP has more.


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International brief ~ Israel to release hundreds of Palestinian detainees
D. Wes Rist on February 3, 2005 10:43 AM ET

[JURIST] In Thursday's international brief, Israel [government website] has announced its approval of a plan to release as many as 900 detained Palestinians in coming weeks. The details of the exact number of prisoners to be released, and the conditions for their release, have yet to be determined, but the announcement was accompanied by a pledge to begin withdrawing Israeli forces from several West Bank cities. Some of the elements will be discussed at the summit scheduled for next week in Sharm el-Sheikh in Egypt. The meeting between Israeli Prime Minister Ariel Sharon and Palestinian President Mahmoud Abbas, hosted by Egyptian President Hosni Mubarak [official profile], will be the highest-level meeeting since Sharon came to power. JURIST's Paper Chase has continuing coverage [JURIST Countries archive] of Israel. The Jerusalem Post has local coverage.
In other international legal news ... - Russian President Vladimir Putin [official website] signed a resolution Thursday authorizing Russian troops to join the UN peacekeeping mission to the Sudan. The resolution specified that the troops would come from the Interior Ministry [official website; English version], which includes police and military units. No word has been released on the size or timeframe of the approved troop deployment. The Sudan Tribune has local coverage.
- In the continuing upheaval following the dismissal of the Nepalese government [JURIST report] by King Gyanendra [BBC profile], a complete censorship of all media reports critical of the government has been implemented for six months. The ban, declared Tuesday, forbids all media sources from publishing any report critical of the Nepalese government [sacked government website] and the King specifically and has only recently been relayed to the outside world, as phone lines and internet providers remain shut down by state order. Several official and independent Nepalese news websites have been "frozen", with no new material posted since the King announced [Kantipur Online report of pending announcement] that he was taking over the government. The US State Department has issued a warning to all US citizens [official State Department notice] travelling abroad recommending that they avoid Nepal. AFP has more.
- Four soldiers accused of planning three coup attempts to oust President Maaouya Ould Sid'Ahmed Taya [official profile] in the last two years were sentenced to life imprisonment Thursday in Mauritania [government website in Arabic]. Spectators at the courtroom burst into applause as the court announced the verdicts for the 195 individuals tried. 84 individuals were convicted on charges of plotting a coup and attempted rebellion, while over 100 were acquitted. Only four received life imprisonment, and none of the convicted received the death penalty, as requested by prosecutors. Three opposition leaders, including ex-president Mohamed Khouna Ould Haidallah, were acquitted of charges of financing the attempted rebellions. AFP has more.


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