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Legal news from Monday, February 21, 2005 |
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Environmental brief ~ China to resume halted construction projects
Tom Henry on February 21, 2005 3:40 PM ET

[JURIST] In Monday's environmental law news, China's State Environmental Protection Administration (SEPA) [official website] has approved the resumption of 26 of the 30 large construction projects that were halted last month for failing to complete environmental impact statements before beginning. The initial halting was seen as a show of power by SEPA and its authority to enforce environmental regulations. The remaining 4 projects will likely continue once their reports are completed. AFP has the full story.
In other news, - The Japanese Iron and Steel Federation [official website, in Japanese] has adopted a plan that would provide emission control technology to China's steel industry. Japan hopes to use its assistance to China as a credit to its own emissions reduction target under the Kyoto Protocol. AP has the full story.
- The US Department of Justice [official website] has charged the now-former manager of the Buenos Aires National Wildlife Refuge [official website] in Arizona with illegally moving the Chiricahua leopard frog [species profile], a threatened species, into the refuge. In 2003, Wayne Shifflett [personal statement on the events, PDF], a 38 year veteran of the US Fish and Wildlife Service [official website], assisted and authorized the relocation of the frog from the control of a university researcher into two of the refuge's ponds and a captive breeding facility. The frog had been present at the refuge until severe droughts dried up their habitat. Shifflett, who retired last year, has said he will pay the $3,500 fine [DOJ citation, PDF] for moving the frogs. Public Employees for Environmental Responsibility has more.


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Corporations and securities brief ~ SEC begins informal probe into Alcoa
Amit Patel on February 21, 2005 12:45 PM ET

[JURIST] Leading Monday's corporations and securities law news, the SEC [official website] has started an informal investigation into aluminum producer Alcoa Inc. [corporate website] over the classification of trade accounts payable transactions starting in 2003. Alcoa has said it will cooperate with the probe. The Pittsburgh Business Times has more.
In other news... - A MCI [corporate website] shareholder has filed a lawsuit to stop Verizon's $6.75 billion bid to buyout the company. The shareholder, who is hoping to get a better deal, said in his lawsuit that Verizon [corporate website] is paying an "unconscionable, unfair and grossly inadequate" sum for MCI. BBC News has more.
- Chaunce Hayden, a regular guest on Howard Stern's syndicated radio show, said he was ordered to testify in an SEC investigation of insider trading of Sirius Satellite Radio Inc. [corporate website]. Sirius' stock surged last year after Stern announced his move to the satellite radio provider. AP has more.
- Kmart Holding Corp. [corporate website] and Sears, Roebuck and Co. [corporate website] announced that they have set up a meeting for shareholders on March 24 to vote on their $11 billion merger. Read the Kmart press release. Reuters has more. In related news, Sears, Roebuck & Co. Chief Financial Officer Glenn Richter announced he will leave the company after the merger is completed. Bloomberg has more.
- Swiss pharmaceutical giant Novartis AG [corporate website] announced it will buy American company Eon Labs [corporate website] and German company Hexal AG [corporate website in German] for $8.3 billion in cash. The integration of the two companies into its Sandoz unit will create the world's largest generic drug company. Read the Novartis press release and the Eon Labs press release. AP has more.
- British online travel firm Lastminute.com [corporate website] has asked the Financial Services Authority [official website] to begin an investigation into an anonymous fax it received questioning its financial situation. BBC News has more.
- As previously reported on JURIST's Paper Chase, ChoicePoint [corporate website] announced Monday that residents in all 50 states and the District of Columbia may have been affected by a security breach which resulted in criminals gaining access to its massive database of consumer information. Read the ChoicePoint press release. AP has more.
Click for previous corporations and securities law news.


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Massive ID theft affects all 50 states, DC, ChoicePoint says
Matt Lubniewski on February 21, 2005 12:32 PM ET

[JURIST] ChoicePoint [corporate website] announced Monday that residents in all 50 states and D.C. may have been affected by a security breach which resulted in criminals gaining access to its massive database of consumer information. California authorities say as many as 500,000 people may have been affected, but ChoicePoint believes that number to be closer to 145,000. Last week, thieves apparently used previously stolen identities to create what appeared to be legitimate businesses seeking ChoicePoint accounts. The thieves then opened up 50 accounts and received volumes of data on consumers, including names, addresses, Social Security numbers and credit reports. AP has more. According to a ChoicePoint statement [text] released Monday detailing the problem, the company is actively working with law enforcement agencies investigating the fraud. The statement also describes the company's plans to protect customer information in the future. Last week, Attorneys General in 38 states sent an open letter to ChoicePoint [AP report] urging the company to give "as much detailed information as possible about the breach and when it occurred."


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Irish Justice Minister accuses Sinn Fein leaders of belonging to IRA command
Liza Hall on February 21, 2005 11:58 AM ET

[JURIST] In an unprecedented move, Irish Justice Minister Michael McDowell has publicly claimed that three of the most prominent figures in the Sinn Fein [party website] political party, including party leader Gerry Adams [BBC profile], are members of the IRA Army Council, the internal group in charge of the terrorist organization. Martin McGuinness, Sinn Fein's deputy leader and one of the men named by McDowell, said "What [McDowell] has alleged is absolutely false," but stopped short of calling McDowell a liar, so as to comply with Ireland's liberal libel laws. Sinn Fein leaders also released a statement denying the allegations [text]. Monday's Boston Globe has more. In a related development, the Independent Monitoring Commission [official website], a joint British/Irish antiterrorism organization, released a report [PDF text] last week blaming December's record $50 million bank heist [Scotsman report] on the Provisional IRA and accuses Sinn Fein leaders of having sanctioned the plan. The implications for Sinn Fein leaders are potentially severe: political parties agreed to renounce all connection with violence and crime as part of the 1998 Good Friday Agreement [PDF text, BBC News backgrounder], and sanctions for failing to do so include the reduction or elimination of their salaries and funding cuts for the parties involved. Ulster Unionist Party leader and architect of the Good Friday Agreement David Trimble [BBC News profile] has called for the exclusion of Sinn Fein from the government [BBC News report]. Responding to accusations it was involved in the heist, the IRA withdrew its offer to disarm [BBC News report]. Gerry Adams initially challenged Irish Prime Minister Bertie Ahern [BBC News report] to "arrest" him in connection with the heist, but the next day suggested that he and Ahern instead meet to discuss the issue and "clear the air." AP has more on recent arrests suggesting the IRA was behind the heist.


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