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Legal news from Wednesday, April 13, 2005 |
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Corporations and securities brief ~ Wal-Mart faces labor union complaint
Amit Patel on April 13, 2005 2:27 PM ET

[JURIST] Leading Wednesday's corporations and securities law news, United Food and Commercial Workers (UFCW) [union website], the largest US grocery union, has filed a complaint against Wal-Mart Stores Inc. [corporate website] with the National Labor Relations Board (NLRB) [official website] to determine whether the company bribed employees to block union activities. The complaint follows a Wall Street Journal report [subscription req'd] that former Wal-Mart Vice Chairman Tom Coughlin may have used undocumented expense payments to fund anti-union activities. The union wants the NLRB to subpoena documents related to the alleged charges. Read the UFCW press release and more about its fight against Wal-Mart. Reuters has more.
In other news... - The Wall Street Journal is reporting [subscription req'd] General Motors Corp. (GM) [corporate website] handling of two transactions with former subsidiary Delphi Corp. [corporate website] in 2000 and 2001 has raised questions about the auto company's accounting and disclosure practices. Delphi's accounting of these two transactions is already the subject of an investigation by the SEC into improper accounting at the company. Dow Jones has more.
- Russia's Federal Anti-Monopoly Service [official website in Russian] announced it will block Siemens AG's [corporate website] bid to acquire a controlling stake in Power Machines [corporate website], its top power engineering company. The deal was rejected because of the firm's role in the secretive defense sector. The deal would have given Siemens 73 percent of Power Machines' shares for between $200 million and $300 million in investments. AP has more.
- Axa Re, the reinsurance arm of French insurer Axa [corporate website], announced New York Attorney General Eliot Spitzer [official website] and the SEC have subpoenaed the company over its transactions with MBIA [corporate website], the largest US municipal bond insurer. The subpoenas are part of the expanding probe into MBIA and marks Spitzer's latest move his investigation into the US insurance industry. The Axa probe relates to the 1998 $1 billion-plus bankruptcy of Pennsylvania non-profit hospital group Allegheny Health, Education and Research Foundation (AHERF). Axa Re will fully cooperate in the probe. Reuters has more.
- Following up on a story reported yesterday on JURIST's Paper Chase, US District Court Judge Karon Bowdre dismissed three perjury charges against former HealthSouth CEO Richard Scrushy [Wikipedia profile] because the Justice Department and the SEC improperly merged their investigations of fraud at HealthSouth Corp [corporate website]. Judge Karon Bowdre said the two agencies violated the rights of Scrushy because the criminal investigation and the SEC investigation in Scrushy concerned aspects of accounting fraud at HealthSouth. Scrushy was indicted on a charge of lying to SEC investigator Neil Seiden during sworn testimony in March 2003. The Northern District of Alabama has additional information about the trial. AP has more.
- The Wall Street Journal is reporting [subscription req'd] the SEC [official website] will likely delay the implementation of new rules requiring employees' stock options to be counted against company profits. The new rules, set by the Financial Accounting Standards Board [official website], will drastically reduce reported earnings of large publicly traded companies. AP has more.
- In a ruling which could force a retrial, a three-judge panel on the Missouri Court of Appeals [official website] ruled a trial judge erred when he tossed out former Enterprise Rent-A-Car [corporate website] vice president Thomas Dunn's claim he was fired for refusing to follow the company's accounting practices. However, the panel also affirmed the trial court's decision to void a $4 million jury award given to Dunn for this claim that he was fired for questioning business practices at the firm. The panel felt Dunn had not offered enough evidence to support the claim. Read the Missouri Court of Appeals opinion. AP has more.
- American International Group Inc. (AIG) [corporate website] said in a SEC filing that Maurice "Hank" Greenberg [Wikipedia profile], who gave up his posts as chairman and chief executive amid intense regulatory scrutiny, gave a gift of 41.4 million company shares to his wife, Corinne P. Greenberg. The gift was given three days before Greenberg retired as CEO. Dow Jones has more.
- Connecticut Attorney General Richard Blumenthal [official website] will intervene in the state Department of Insurance [official website] approval proceedings of MetLife Inc.'s [corporate website] purchase [MetLife press release] of Travelers Life & Annuity [corporate website] from Citigroup Inc. saying the deal is not in the public interest. Reuters has more.
Click for previous corporations and securities law news.


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Al Qaeda suspect convicted in UK poison plot
Jeannie Shawl on April 13, 2005 1:53 PM ET

[JURIST] A British court Wednesday convicted suspected al Qaeda operative Kamel Bourgass of conspiracy to cause a public nuisance by the use of poisons and/or explosives to cause disruption, fear or injury in a plot to spread ricin [BBC News backgrouder] and other poisons in Britain. British authorities suspect that Bourgass' work was part of a larger plan to coordinate chemical and biological attacks across Europe. Bourgass, who is already serving a life sentence for the murder of a British constable during a 2003 raid on his London flat, was not convicted of conspiracy to commit murder. Four other men implicated in the plot were cleared of conspiracy charges last week and charges have been dropped against another group of men, scheduled to face trial next week. The Metropolitan Police provides details of the evidence against Bourgass [MPS press release]. BBC News has more.
5:00 PM ET - Justice Penry-Davey, the judge who presided over Bourgass' trial, criticized former home secretary David Blunkett Wednesday for an inappropriate remark Blunkett made during a BBC interview. In 2002, Blunkett told the BBC that terrorists were planning to set up a cell which threatened the UK. In pre-trial motions, Bourgass' defense lawyer argued that the remark jeopardized the trial, and although the judge refused to abort the trial, he said the comment "was clearly in breach of the presumption of innocence." According to Bourgass' lawyer, the government leaked a story about a threatened sarin gas attack, which it knew to be false. Officials then responded to journalists' questions about the threatened attack by telling them that three people, including Bourgass, had been charged under the Terrorism Act, in order to give the impression that they were charged in relation to the sarin plot. The UK Press Association has more.


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Rudolph pleads guilty to Alabama abortion clinic bombing
Jeannie Shawl on April 13, 2005 1:33 PM ET

[JURIST] Eric Rudolph [Wikipedia profile], who last week agreed to plead guilty [JURIST report] to the Atlanta Olympic bombings, pleaded guilty Wednesday to the 1998 Birmingham abortion clinic bombing [indictment, PDF], which killed two people and left over 100 wounded. Under the plea agreement, Rudolph will receive four consecutive life prison terms, but will not face the death penalty. Following Wednesday's hearing in Alabama, Rudolph was flown to Atlanta where he will plead guilty to charges [indictment, PDF] stemming from three other bombings, including one during the 1996 Atlanta Olympics. AP has more. The Birmingham News has local coverage.
4:10 PM ET - AP is reporting that Rudolph has now pleaded guilty to the 1996 Olympics bombing and two other Atlanta-area bombings.


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Gitmo detainees allege torture, file FOIA lawsuit for military records
Jeannie Shawl on April 13, 2005 12:30 PM ET

[JURIST] Lawyers for six Guantanamo Bay [JURIST news archive] detainees filed a federal lawsuit Wednesday asking a judge to force the Department of Justice and Department of Defense to comply with their Freedom of Information Act [text] requests for documents, including medical and psychiatric records, on its treatment of the detainees. The six men, all Algerian, were arrested in Bosnia in 2001 for allegedly conspiring to blow up the US embassy in Sarajevo and were later transferred to Guantanamo Bay after Bosnian courts dismissed the charges against them. Wednesday's complaint includes allegations by one of the detainees, Mustafa Ait Idir, that he was tortured during his Gitmo detention [Boston Globe report] on multiple occasions, including an incident where guards held his face under water in his cell's hole-in-floor toilet and another incident where guards jumped on his head. Idir alleges that as a result of the torture he suffered a stroke that left his face partially paralyzed. Idir's attorney, former Massachusetts Deputy Attorney General Stephen Oleskey [professional profile] says that the lawsuit is necessary because "We've been asking for this information since September. It bears on their conditions of confinement and their mental and physical well-being. The government has made no effort to give it to us despite the fact that federal law requires it be promptly provided, and thus we have no alternative but to go to court." A Defense Department spokesman declined to address the specifics of the case, but noted that "US policy condemns and prohibits torture" and said that Al Qaeda "emphasizes the tactic of making false abuse allegations" if captured. AP has more.


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Legal agenda and live webcasts ~ Wednesday, April 13
Chris Buell on April 13, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Wednesday, April 13.
The US Senate [official website] convenes at 9:30 AM ET today, when it will consider H.R. 1268 [bill summary], the Iraq/Afghanistan Supplemental Appropriations bill. Watch a live webcast of the session. The Senate Judiciary Committee [official website] is holding a hearing at 9:30 AM ET today on securing electronic personal data. Watch a live webcast of the hearing. The Constitution Civil Rights and Property Rights Subcommittee is holding a hearing at 2 PM ET today on whether federal and state defense of marriage initiatives are vulnerable to judicial activism. Watch a live webcast of the hearing.
The US House [official website] convenes for legislative business at 10 AM ET today. Watch a live webcast of the session. The House Judiciary Committee [official website] will mark up H.R. 32, 748, 800, 866, and 1279 [bill summaries] at 10 AM ET today. Watch a live webcast of the meeting. The Committee is also holding a hearing at 4 PM ET today on immigration and alien gangs. Watch a live webcast of the hearing.
The European Parliament [official website] continues its plenary session at 9 AM local time [3 AM ET] today. View the agenda for the session. A vote on Bulgarian and Romanian accession is scheduled for Noon local time [6 AM ET]. Watch a live webcast of the session.
The UN General Assembly [official website] is holding its 91st plenary meeting at 10 AM ET today. Watch a live webcast of the meeting.
At the International Criminal Tribunal for the Former Yugoslavia, Ljubisa Beara [ICTY case backgrounder] will make a further appearance before the tribunal at 8 AM local time [2 AM ET] today. Following that, the trial of Slobodan Milosevic [ICTY case backgrounder] continues today at 9:30 AM local time [3:30 AM ET]. Also today, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues today at 2:45 PM local time [8:45 AM ET]. Watch a webcast of proceedings.


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