[JURIST] US District Judge T.S. Ellis Monday denied a motion by US-based security firm Custer Battles [corporate website] to invoke the False Claims Act [text] to dismiss a lawsuit brought by two former employees alleging that the Rhode Island security firm defrauded the US government of millions under its contract to guard Baghdad Airport [Custer Battles press release]. Ellis did, however, eliminate claims related to work paid for with Iraqi oil money, limiting the company's potential liability to work paid for from seized and vested Iraqi funds, not money paid out of the Development Fund for Iraq [Iraq CPA backgrounder]. Ellis' decision leaves open the question of whether the US-led occupation authority that managed the fund (now managed by the Iraqi Transitional Government), was subject to US law. Custer Battles denies all allegations [press release]. Reuters has more.

[JURIST] Manhattan District Attorney Robert Morgenthau [Wikipedia profile] has announced a criminal investigation of former UN Oil-for-Food chief Benon Sevan [official profile]. According to a New York Sun report, Sevan is being investigated in connection with allegations of commercial bribery related to his role as executive director of the UN Oil-for-Food Program [JURIST news archive] for Iraq from 1997-2003. Last week, the UN Security Council agreed to turn over more documents [JURIST report] to the Independent Inquiry Committee [official website] investigating the scandal.

[JURIST] A former Yugoslav army general testifying Monday on behalf of former Yugoslav president Slobodan Milosevic [JURIST news archive] denied that the former leader and Bosnian Serb forces were responsible for the 1995 Srebrenica massacre, and suggested it did not even take place. Bozidar Delic, army commander during Bosnia's 1992-95 war, rejected reports that estimate nearly 8000 Muslims were killed [AP report]. During questioning by ICTY prosecutor Geoffrey Nice on what is considered the 10th anniversary of the killings [JURIST report], Delic declared that "two to three thousand Serbs were killed in the Srebrenica area and several thousand Muslims, but most of them were killed in fighting". The prosecution said it was not trying a publicity stunt but was rather attempting to establish the credibility of the witness. Many Serbs have traditionally denied allegations of a Srebrenica massacre, but video recently played in the Milosevic trial [JURIST report] itself seems to have swung political and public opinion [JURIST report]. Milosevic's trial at the International Criminal Tribunal for the Former Yugoslavia is expected to end early next year. Reuters has more.

[JURIST] Leading Monday's corporations and securities law news, Sprint [corporation website] has said it will buy its affiliate and litigant, US Unwired [corporate website]. In a press release, Sprint said it will purchase its Louisiana-based distributor for $1.3 billion and US Unwired will cease all pending legal action against Sprint. US Unwired had recently filed suit against Sprint in an attempt to block Sprint's announced purchase of Nextel [JURIST report]. Reuters has more.

In other corporations and securities law news...

• The SEC is investigating film studio DreamWorks [corporate website]. The informal investigation concerns the studio's trading in its securities and the disclosure of its financial results on May 10, 2005. DreamWorks is also being sued by shareholders who allege the company inflated its financial forecast [Reuters report]. Reuters has more.
  
  
• Fidelity Investments [corporate website] has reassigned its beleaguered equity trading chief. In a press release, the company said that Scott DeSano is being moved to Fidelity's strategic management unit. DeSano and Fidelity's equity trading unit have been under investigation from the SEC and NASD [official website] for possibly accepting gifts from outside sales brokers. Bloomberg has more.
  
  
• As reported earlier on JURIST's Paper Chase, a judge has given preliminary approval for a settlement in WorldCom [JURIST report] shareholders' lawsuit against Bernard Ebbers [Wikipedia profile], the company's former CEO. The settlement provides for Ebbers, who was recently convicted of fraud [JURIST report] and awaits sentencing, to forfeit his $45 million estate to the shareholders [JURIST report]. MarketWatch has more.
  

[JURIST] Leading Monday's states brief, the Illinois Supreme Court [official website] has denied the request of the Associated Press [website] and two newspapers for access to transcripts of a pre-trial hearing involving a state murder charge arising out of the drowning deaths of three children. The crganizations argued unsuccessfully that a lower court judge had not met the standards set by the US Supreme Court for closing the hearing. The pre-trial hearing addressed the admissibility of evidence that the prosecution desired to use in its case. AP has more.

In other state legal news ...

• The US Supreme Court [official website] has stayed the execution of a Virginia man, Robin Lovitts, scheduled for Monday. In 2000, the Supreme Court of Virginia affirmed [decision text] Lovitts's conviction and death sentence and in 2003 ruled [decision text] that his due process rights were not violated when a court employee ordered evidence used at his trial destroyed, which made subsequent DNA analysis impossible. When the US Supreme Court resumes in October, it will either hear the appeal or allow Virginia to carry out the execution. AP has more.
  
  
• Illinois Governor Rod R. Blagojevich has signed into law [press release] a number of bills creating tougher laws against sex offenders, including House Bill 2386 [text] that allows for certain sex offenders to be placed on lifetime parole and changes current law providing for a maximum of five years parole for all sex offenders. Blagojevich also signed into law a bill [text] requiring sex offenders to notify law enforcement within five days of no longer having a fixed address, a bill [text] regulating the number of sex offenders who can live in one place, and a bill [text] prohibiting sex offenders from loitering anywhere within 500 feet of a school or school property. The Chicago Tribune has local coverage.
  
  
• The California Senate Judiciary Committee [official website] will consider revised legislation that includes legalizing same-sex marriage tomorrow. After a bill legalizing same-sex marriage [PDF text] failed in the Assembly last month bu just four votes, the measure was amended into a marine research bill that will go before the committee. If the bill passes the Senate, it will return to the Assembly [official website] for a final vote. AP has more.

[JURIST] US Justice Department antitrust regulators have asked for more information about a $3.4 billion stock bid [JURIST report] by Adobe Systems Inc. [corporate website] to buy Macromedia Inc. [corporate website]. The DOJ wants to know more about the competitive landscape for multimedia content tools [CNET report]. Adobe makes popular document editing software such as Photoshop, Pagemaker, and Acrobat. Macromedia is perhaps best known for its Flash software, used to create animation-driven content. The request will extend the waiting period [MSNBC report] for the sale to be approved, but both companies expect it to go through by the fall. AP has more.

[JURIST] US District Judge Denise Cote gave preliminary approval Monday to a civil settlement that would have convicted former WorldCom CEO Bernard Ebbers [JURIST report] forfeit as much as $45 million in personal assests [JURIST report] in order to avoid paying restitution. Ebbers still faces criminal sentencing for his conviction on Wednesday; a lengthy prison term is expected. AP has more.

[JURIST] Fomer Russian prime minister Mikhail Kasyanov [MosNews profile] is being investigated by Russia's Prosecutor General for fraud and abuse of trust, according to Russian media reports Monday. Kasyanov is suspected of buying a $100 million country home and another real estate parcel at a fraction of their cost. He said he is "ready to provide every assistance to the investigation" [Itar-Tass report] and denied acquiring property fraudulently [RIA Novosti report]. The investigation was launched in response to allegations by member of the Duma [MosNews report], Russia's lower house. If Kasyanov is charged, he would be the highest-ranking Russian government official to go on trial since the collapse of the Soviet Union. Kasyanov is considering running for president when Vladimir Putin's term expires in 2008. Bloomberg has more.

[JURIST] Indonesia filed criminal charges Monday against Richard Ness, the American chief of Newmont Mining Corporation's [corporate website] Indonesian subsidiary, alleging environmental pollution. Indonesia previously filed a $133 million civil suit [JURIST report] against Newmont, which has denied any wrongdoing [press release]. The charges stem from claims that residents near a Newmont facility became ill from waste dumped into the air and water. Test results of the area conflict, with a government probe showing high levels of toxins but World Health Organization tests showing no evidence of pollution. AFP has more.

[JURIST] Leading Monday's international brief, debate begins today in the UN General Assembly [official website] on the draft resolution [official PDF text] proposal to expand the UN Security Council [official website] by six new permanent member seats, among them the proposing G4 nations [JURIST report], and four new non-permanent member seats. The draft proposal, released last Wednesday [JURIST report], and formally submitted to the General Assembly Monday, will require approval from both the General Assembly and the permanent members of the Council. While General Assembly approval of the resolution, requiring 127 of the current 191 member-states, is non-binding, it would politically limit the ability of any of the five permanent members of the current Council to veto the reform package. The G4 nations are pushing for a vote on the resolution before the end of July. India recently expressed "cautious optimism" [Hindustan Times report] about the chances for success of the reform proposal, while South Korea, a key opponent of expansion, expressed concern [Chosun Ilbo report] about Japan's possible inclusion. JURIST's Paper Chase has continuing coverage of the United Nations [JURIST news archive]. Voice of America has more.

In other international legal news ...

• In Zimbabwe, the Bulawayo High Court has ducked a case that would have forced it to rule on the legality of the current police actions against informal traders in "Operation Restore Order", despite the soundness of the legal issues presented for adjudication. Justice Maphios Cheda cited a "heavy case load" as the reason for recusing himself from consideration of the application by the Bulawayo Upcoming Traders' Association [JURIST report] on the issue of whether the police acted illegally when they seized property belonging to allegedly unlicensed traders without first obtaining a court order. Cheda's recusal forces the BUTA to refile their application and wait for a new hearing date to be appointed by the Bulawayo High Court. The Zimbabwe Lawyers for Human Rights Association, as well as numerous other rights groups, have accused the Zimbabwean judicial system of being complicit in the mass evictions ordered by Zimbabwean President Robert Mugabe [Wikipedia profile], alleging that judges have refused to oppose the government because of the system of political favoritism that Mugabe uses to appoint judges. JURIST's Paper Chase has continuing coverage of Zimbabwe [JURIST news archive]. ZimOnline has local coverage.
  
  
• The Organization for Security and Cooperation in Europe (OSCE) [official website] released its report on Sunday's presidential elections in Kyrgyzstan [OSCE mission website], giving the process a provisional grade of "good" or "very good". The national elections were originally scheduled for October, but were moved forward following the resignation [JURIST report] of former Kyrgyzstan President Askar Akayev [Wikipedia profile]. Acting Kyrgyz President Kurmanbek Bakiev [Wikipedia profile; official website in Kyrgyz] won a permanent spot in his current job with an 89% landslide victory. OSCE representatives reported no incidents of intimidation or fraud, and said that most of the problems in the process were inexperience in having actual free elections rather than attempts at government influence. Read the OSCE preliminary report [PDF text]. Read the OSCE press release. BBC News has more.

[JURIST] Iraq's parliament will debate a "comprehensive" bill later this month that would allow it to reorganize the Iraqi Special Tribunal (IST) [JURIST news archive] charged with trying Saddam Hussein and move his trial up, preferably to before the scheduled October referendum on a new Iraqi constitution. The first reading of the bill is scheduled for July 20. The legislation grew out of complaints that the Tribunal is being slowed by American interference. Iraqi Prime Minister Ibrahim Jaafari [BBC profile] has said he wants the trial to be "over and done with" [JURIST report], and Iraq's justice minister has previously accused the US of stalling the trial because it has "secrets" to hide [JURIST report]. Iraqi legislators also say that implementing the current Tribunal's governing statute [text], they want to clear the Tribunal of Baathists, said to include Raed Juhi, the judge who has presided at two interrogations of Saddam Hussein. AFP has more.

[JURIST] Nine construction workers have died after Iraqi police left them in a metal container for 14 hours in blistering summer heat. Iraqi police detained 12 men suspected of insurgent activity after a firefight with US troops. One of the survivors claimed he was also tortured with electric shocks. Iraq has admitted to abuses [JURIST report] by its security forces, which have become a matter of concern to the US military [JURIST report]. BBC News has more.

[JURIST] Republican officials expect President Bush to put forward a nominee to replace retiring Justice Sandra Day O'Connor at the end of July, according to Monday's Washington Post. Senator Orrin Hatch has meanwhile joined several other Senators in speculating that Chief Justice William Rehnquist will retire within days, telling [transcript] Meet The Press Sunday, "That's my sense, but I've been wrong before." On the same program, Senate Judiciary Committee chairman Senator Arlen Specter suggested that O'Connor be asked to return as Chief Justice should Rehnquist step down. O'Connor was named as the public favorite to become the next Chief Justice in a Zogby poll released in January [JURIST report]. The New York Times has more.

[JURIST] White House Deputy Chief of Staff Karl Rove spoke with TIME magazine reporter Matthew Cooper just days before the identity of CIA operative Valerie Plame [Wikipedia profile] was revealed in a newspaper column by Bob Novak, but although he referred to her he has denied mentioning her by name, Rove's lawyer said Sunday. Cooper has agreed to testify about his source [JURIST report] before a grand jury investigating the leak, which Newsweek says resulted from permission granted by Rove himself [Newsweek report]. Another reporter connected to the case, Judith Miller of the New York Times, was last week ordered to jail for refusing to testify [JURIST report]. It's unknown if Rove is a target of the investigation. The Washington Post has more.

[JURIST] Jury selection begins Monday in the first of over 3,800 state and federal lawsuits [JURIST report] against pharmaceutical giant Merck [corporate website], alleging that the company knew its popular painkiller Vioxx [corporate backgrounder] was dangerous before it voluntarily pulled the drug from the market in September 2004. The SEC is also investigating [JURIST report] the company's handling of the drug. The first suit, Ernst v. Merck [AP report], is being brought in Texas state court by a Texas woman whose husband took the drug for eight months and died in his sleep. Merck says it acted responsibly in removing the drug from the market and that there's no proof that the drug caused Ernst's death. Merck has also stated it will not settle cases [New York Times report] and is expecting to ligitate thousands of them regardless of the outcome of this trial. The first federal court case against Merck is expected to start late this fall [JURIST report]. Several thousand Canadians [MacLean's report] are also suing Merck over Vioxx [plaintiffs' attorneys website], including former NHL player Rob Tallas, who took the drug for 2 1/2 years [Boston Globe report] and suffered a heart attack in 2004 [Boston Globe report] after a game in Finland.

[JURIST] The UK Association of Chief Police Officers [official website] reported Sunday that relations with Muslims in the UK were "reassuringly calm" [press release] in the aftermath of the July 7 London bombings, tentatively linked to Islamic extremists. Fearing public backlash, the London-based Islamic Human Rights Commission [advocacy website] had recommended immediately after the attacks that British Muslims keep a low profile [JURIST report]. ACPO did note an increased feeling of vulnerability amongst members of the Muslim community, however, and Muslim groups themselves have reported a number of in anti-Muslim incidents, including vandalism of mosques in London, the West Midlands and Merseyside [BBC report]. BBC News has more.

[JURIST] Cyrus Kar, the American filmmaker detained by US forces in Iraq in May and held for 54 days [JURIST report] after the taxi he was riding in was stopped at a checkpoint and found to be carrying timing devices that could be used to make bombs, described his ordeal to reporters in Baghdad Sunday after his release from US military custody [JURIST report]. The ACLU filed a lawsuit [ACLU materials] last Wednesday calling for his release. Calling his experience "bizarre", he said he had been held at Camp Cropper, the facility for high-value Iraqi detainees near Baghdad International Airport and had spent much of his time in solitary confinement in a cell block that also held former Saddam Hussein deputy Tariq Aziz. He said he had not been maltreated. The Los Angeles Times has more.

[JURIST] The trial of Islamist radical Mohammed Bouyeri for the November 2004 murder [BBC report] of Dutch filmmaker Theo van Gogh [Wikipedia profile] opened with high security in place on Monday in Amsterdam. The controversial Van Gogh had published columns and a short film criticizing abuses against women under Islam; his killing provoked over 150 retaliatory attacks on local Islamic mosques and schools and prompted changes in Dutch anti-terrorism laws [JURIST report]. Bouyeri's lawyer told the court Monday that his client, who hoped to die as a martyr, did want him to present a defense, and that he "takes complete responsibility for his actions". Deutsche Welle has more.

[JURIST] Voice of the Faithful [advocacy website], a Catholic lay reform group with some 30,000 members nationwide, approved a resolution on Sunday at its first national meeting [meeting website] in three years calling for tougher laws against clergy sex abuse [JURIST news archive]. Louisiana and Ohio currently have legislation pending that would extend the time period for reporting abuse. Catholic bishops have, however, lobbied against the Ohio bill, and they are expected to reject many of the group's proposals as well. AP has more.

[JURIST] Following the adoption of a peace treaty [BBC report], the approval of a new constitution [JURIST report], and the installation of a new government [JURIST report], newly-reappointed Sudan President Omar Hassan al-Bashir [Wikipedia profile] has, as anticipated [JURIST report], lifted the country's state of emergency, except in Darfur and a region on the eastern border. The emergency law gave the government broad authority to detain people without charges and crack down on opposition. These powers still remain in place in Darfur, where peace talks are ongoing but not near agreement. Reuters has more.

[JURIST] Relatives and survivors of the Srebrenica massacre [Wikipedia backgrounder] mourned as more than six hundred coffins containing newly-identified remains recovered from mass graves were interred in the town cemetary Monday, the 10th anniversary of the beginning of the 1995 killings. As many as 50,000 attended the burials, including former American diplomat Richard Holbrooke [Wikipedia profile], who helped negotiate an end to the Bosnian conflict. President Judge Theodor Meron of the International Criminal Tribunal for the former Yugoslavia [JURIST news archive] addressed the crowd [full text]. About 2,000 funerals have now been held for Srebrenica victims, with over 7,000 sets of remains awaiting DNA identification. Estimates put the total number of victims at 8,000. Multiple arrests and criminal proceedings [JURIST news archive; International Criminal Tribunal for the Former Yugoslavia case files] have resulted from the massacre, but its primary perpetrators, Bosnian Serb General Ratko Mladic [JURIST news archive] and former Bosnia Serb leader Radovan Karadzic [JURIST news archive], both indicted for genocide, remain at large. Reuters has more.

[JURIST] The Israeli cabinet Sunday approved plans for enclosing Jerusalem by part of the security fence [official website] designed to keep out suicide bombers and prevent other terrorist attacks on Israel's civilian population. Palestinians in four Jerusalem neighborhoods that include some 55,000 people [Jerusalem Post report] say that the new fencing will cut them off and will cause major delays in getting to work and school. Israel has promised to come up with a plan to address these problems by September 1, and has also insisted that the wall is intended only as a temporary measure. AP has more. A non-binding 2004 ruling [text] by the International Court of Justice [official website] held that the fence is not justified by security concerns [JURIST report].

5:06 PM ET - An Israeli Cabinet minister acknowledged Monday that the security barrier around Jerusalem was intended to ensure a Jewish majority in the city, apparently contradicting the government's official security claims. Haim Ramon, the Israeli Cabinet minister for Jerusalem, said during an interview with Israel radio that while the security fence protects against terror attacks by suicide bombers it "also makes it more Jewish." Israel seized the eastern part of Jerusalem from Jordan during the 1967 Six Days War, but the barrier will cut off a number of Arab neighborhoods. AP has more. From Israel, Haaretz has local coverage of the announcement of the "Jerusalem envelope."