[JURIST] Leading Tuesday's corporations and securities law news, Washington Superior Court Judge Steven Gonzalez ruled that former Microsoft [corporate website] executive Kai-Fu Lee [Wikipedia profile] can work for Google [corporate website]. The ruling allows Dr. Lee to work for Google China [Google press release] so long as he does not recruit from Microsoft or use knowledge he gained while working there. The ruling lifts an order preventing Google from employing Lee [JURIST report] but is likely the beginning of a long chain of litigation over Lee's employment. Reuters has more.

In other corporations and securities law news…

• Northwest Airlines [corporate website] may be preparing to declare bankruptcy as it announced that it opted not to make $42 million in debt payments. Northwest's pilots' union said [news update] that the airline's board of directors will meet on Wednesday and that "the NWA BOD will decide whether or not NWA will continue its attempt to restructure outside of the bankruptcy process or file for Chapter 11 bankruptcy protection." Northwest's problems come as it struggles with an ongoing mechanics' union strike. Speculation over Northwest's plans sent the airline's stocks down 58%. AP has more.
• The jury has been selected for the second Vioxx [JURIST news archive] trial, set to begin Wednesday. Pharmaceutical manufacturer Merck, which recently said it has no plans to settle Vioxx lawsuits [JURIST report], is attempting to go to trial without a key witness, a doctor whose office was destroyed by Hurricane Katrina. In Merck's first Vioxx trial last month, a Texas jury ruled that Merck must pay $253 million [JURIST report] to the widow of a man who died after taking Vioxx. Merck pulled the once-popular arthritis drug after the FDA advised the company that Vioxx posed heart risks in some patients, leading to thousands of possible lawsuits. CNN has more.