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Legal news from Wednesday, March 28, 2007




Supreme Court hears arguments in shareholder fraud suit
Leslie Schulman on March 28, 2007 7:06 PM ET

[JURIST] The US Supreme Court [official website; JURIST news archive] heard oral arguments [transcript, PDF] Wednesday in Tellabs v. Makor Issues & Rights [Duke Law case backgrounder; merit briefs], 06-484 [docket], where the Court must decide the extent to which shareholders bringing suit against a company must prove the company intended to deceive the public about its financial future. Tellabs, Inc. [corporate website] allegedly made predictions about its future sales that turned out to be incorrect, ultimately costing its shareholders millions of dollars. The company's attorney argued that the lower court's ruling that shareholders must show a "strong inference" of wrongdoing means shareholders must prove with a certainty of over fifty percent that the company intended to deceive the public. Opposing counsel argued that the court should be able to infer more easily, at a burden of forty percent, an intent to deceive based on the company's actions and words.

The case comes on appeal from the US Court of Appeals for the Seventh Circuit, which held [opinion, PDF] in January that the shareholder's complaint had enough detail to establish "a strong inference that [Tellabs] knew [it] had exaggerated its revenues." This case is one of several cases being considered by the Supreme Court where companies hope to limit class actions suits against them. On Monday, the Court agreed to consider whether shareholders of companies that commit securities fraud should be able to sue investment banks, lawyers, and auditors that allegedly also participated in the fraud. The Court heard arguments [JURIST report] Tuesday in a case involving shareholders seeking damages from banks that allegedly violated antitrust laws. AP has more.






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Poland protesters urge complete abortion ban
Joshua Pantesco on March 28, 2007 3:41 PM ET

[JURIST] Thousands of Polish citizens marched in Warsaw on Wednesday in support of a proposed constitutional amendment to enact a complete ban on abortion. The opposition Civic Platform party [party website] is expected to block passage of the amendment when it comes to a vote in April. Poland's current 1993 abortion law [CRR backgrounder, PDF] is considered among the strictest in Europe, allowing abortions only if the pregnancy threatens the life or health of the mother; if a fetus has a potentially life-threatening condition; or if the pregnancy is the product of a crime, which is only permitted during the first 12 weeks of pregnancy. A two-thirds majority is needed to amend the Polish constitution [text]. AP has more.

Last year, a Polish woman challenged the abortion law [JURIST report] before the European Court of Human Rights (ECHR) as violating her privacy rights under the European Convention for the Protection of Human Rights and Fundamental Freedoms [text]. The ECHR decided in her favor [BBC report] last week, but the ruling will not affect the Polish law.






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Suspended Pakistan chief justice calls for judicial independence
Joshua Pantesco on March 28, 2007 2:51 PM ET

[JURIST] Chief Justice Iftikhar Chaudhry [official profile] of the Supreme Court of Pakistan [official website], who was suspended [JURIST report] March 9 by Pakistani President Pervez Musharraf [official profile] for alleged misconduct, told a crowd of 2,000 lawyers in Rawalpindi on Wednesday that judicial independence in Pakistan is under attack. Chaudhry said that judicial independence is guaranteed by the constitution of Pakistan, though he refused to comment on the specifics of the case against him. Chaudhry is accused of nepotism [JURIST report] in securing jobs and promotions for his sons, though Chaudhry supporters believe that the Musharraf government brought the charges to keep him from deciding issues related to upcoming presidential elections. Several judges and one of Pakistan's three deputy attorney generals [JURIST reports] resigned last week in protest over Chaudhry's suspension.

The Supreme Judicial Council [constitution text] of Pakistan is adjudicating the charges against Chaudhry. The government insisted on closed proceedings, though Chaudhry fought for public proceedings. Reuters has more.






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Georgia human rights lawsuit harming diplomatic ties: Russia
Joshua Pantesco on March 28, 2007 2:25 PM ET

[JURIST] The Russian Foreign Ministry on Tuesday lashed out at the Georgian Republic [official backgrounder] for filing a lawsuit with the European Court of Human Rights (ECHR) [official website] alleging Russia violated the human rights of Georgian nationals during a deportation sweep last September. On Monday, Georgia lodged an application against Russia [press release] under the European Convention of Human Rights [PDF text], alleging that after Georgia police arrested four Russian soldiers on espionage charges [MosNews report] in September 2006, the Russian government retaliated [BBC report] by harassing Georgian nationals living and working in Russia. Russia on Tuesday characterized the ECHR lawsuit as an "unfriendly act harmful for bilateral relations," according to MosNews and RIA Novosti.

In October, the Georgian government publicly criticized Russia [JURIST report] for the alleged human rights violations. Russian President Vladimir Putin called for stricter immigration laws [JURIST report] soon after the four Russian soldiers were arrested, and Russian immigration officials responded by proposing harsher penalties for businesses that employ illegal migrants, restrictions on border crossings, amendments to the Criminal Code, and limits on the duration of visas distributed to certain nationalities. MosNews has more.






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Belgium police arrest three EU officials on corruption charges
Joshua Pantesco on March 28, 2007 1:53 PM ET

[JURIST] Belgian authorities on Wednesday arrested three Italian nationals - a European Commission [official website] official in charge of delegation infrastructure, a personal assistant to an Italian member of the European Parliament [official website], and a businessman - on corruption charges stemming from European public tenders to lease space and provide security for delegation buildings in Albania and India. A spokesperson for the Belgium Public Prosecutor's office said Wednesday that various EC and EP officials may have accepted up to $10 million in bribes over the last ten years. The three were arrested Tuesday through anti-corruption raids [JURIST report] coordinated with the governments of France, Italy, Luxembourg, and Belgium. AFP reports that the three were charged with corruption of an international civil servant, violation of professional secrecy, and criminal conspiracy. AFP has more. EUObserver.com has additional coverage.

The investigation was launched three years ago and involves OLAF [official website], the EU's independent anti-fraud office. In 1999, the entire EC resigned [BBC report; research paper] after a scandal surrounding the questionable hiring practices of former French prime minister Edith Cresson [BBC profile]. In 2006, Cresson was found guilty of favoritism and abuse of office [JURIST report].






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Zimbabwe opposition leader arrested, released again
Joshua Pantesco on March 28, 2007 11:00 AM ET

[JURIST] Zimbabwe police on Wednesday arrested opposition leader Morgan Tsvangirai [BBC profile] and twenty staff members ahead of a press conference where Tsvangirai was expected to denounce police brutality that occurred during a crackdown on anti-government protesters [JURIST report] earlier in March. Tsvangirai was released from police custody several hours later, according to a MDP official. Tsvangirari was previously arrested and allegedly beaten [JURIST report] during the last series of arrests; he was released [JURIST report] when prosecutors failed to show up at his court date. Amnesty International criticized [press release] the government for its treatment of Tsvangirai, and called on other African leaders to respond to today's events.

Police imposed a three-month ban [JURIST report] on anti-government protests last month after a political rally by the opposition Movement for Democratic Change [party website] led to confrontations between police and protesters around the country. Political tensions have run high in Zimbabwe [JURIST news archive] especially since Mugabe announced in December that he planned to extend his presidency from 2008 to 2010 to correspond with parliamentary elections. Wednesday's press conference coincided with a two-day African summit where leaders are expected to agree to ask Mugabe to step down when his term ends. BBC News has more. DPA has additional coverage.






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Mexico shuts down special political crimes prosecution office
Brett Murphy on March 28, 2007 8:28 AM ET

[JURIST] A Mexican special prosecutor's office designed to investigate past political crimes shut down on Tuesday without ever securing any convictions. Former Mexican President Vicente Fox [BBC profile], who created the department, decided to close it just before leaving office last year. That decision just took effect. All cases being pursued by the special office, including the case against former President Luis Echeverria [BBC report; JURIST news archive], will now be handled through regular channels.

Echeverria is accused of genocide for his role in a 1968 massacre [Wikipedia backgrounder] of protesters when he was interior secretary. AP has more.






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Texas governor signs 'shoot first' law
Brett Murphy on March 28, 2007 8:02 AM ET

[JURIST] Texas Governor Rick Perry [official website] Tuesday signed into law [press release] a new so-called "shoot first" law [SB 378 materials], which allows state residents to use deadly force to respond to threats in their homes, cars, and at jobs. The bill, also known as a "stand your ground" law, was approved by large majorities in both houses of the Texas Legislature. In his statement, Perry said "The right to defend oneself from an imminent act of harm should not only be clearly defined in Texas law, but is intuitive to human nature." The legislation, which requires that the person defending themselves be unprovoked, also provides civil immunity for any justified action under the law. The Texas law takes effect September 1, 2007.

Georgia enacted a similar law last July, and Florida adopted [JURIST reports] a "shoot first" law in 2005. Alabama, Indiana, Kentucky, Mississippi and South Dakota all have enacted similar legislation as well. The Brady Campaign to Prevent Gun Violence [advocacy website] has continually called such legislation "phenomenally dangerous," but the National Rifle Association [advocacy website] maintains that these laws are necessary to protect innocent citizens. AP has more.






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Vietnam scraps detention of national security threats without trial
Brett Murphy on March 28, 2007 7:42 AM ET

[JURIST] The president of Vietnam [JURIST news archive] has signed a decree abolishing the power of the government to hold suspected national security threats without judicial hearings, a government official told AP Wednesday. Western officials have praised President Nguyen Minh Triet, who signed the decree last week, but some worry that it may change little for political dissenters in Vietnam. Carl Thayer of the Australian Defence Force Academy [official website] told AP that while the measure is a step in the right direction, it does not "necessarily improve the ability of dissidents to operate in Vietnam."

It is believed that roughly 200 people are being held under the measure. Last month, two human rights lawyers were detained [JURIST report] by police after hosting a discussion on the status of human rights law in Vietnam. Pro-democracy groups in Vietnam have increasingly begun to work together, though the Vietnamese government has worked to keep news of the groups out of the press. Last year, the US and Vietnam ended a three-year suspension [JURIST report] on talks regarding human rights and religious freedoms [HRW backgrounder] in the country, which began when the US cancelled the annual Human Rights Dialogue with the Government of Vietnam in 2003 due to a lack of progress on the issues. AP has more.






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