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Legal news from Monday, March 28, 2005 |
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State Department releases new human rights report
Amit Patel on March 28, 2005 3:45 PM ET

[JURIST] The US State Department Monday released its third annual report on American efforts to support and promote human rights around the world. In Supporting Human Rights: The US Record 2004-2005 [text], the US said it will make respect for human rights the test for its bilateral relations around the world, although it also indicated it will temper this ideology with political realities. The report promises that the US will keep up rights pressure on nations such as China, Russia, Pakistan, Libya, and Saudi Arabia. Critics, however, point to the easing of sanctions against Libya, one of the world's worst human rights violators, and the recent sale of F-16 fighter planes to Pakistan [AFP story], as evidence of the administration's difficulties in pushing its agenda in this area. Read Secretary Rice's comments regarding the report. AP has more.


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Corporations and securities brief ~ SEC subpoenas 12 AIG executives
Amit Patel on March 28, 2005 12:28 PM ET

[JURIST] Leading Monday's corporations and securities law news, the Wall Street Journal is reporting [subscription req'd] that the SEC has subpoenaed twelve executives at American International Group Inc. (AIG) [corporate website]. The subpoenas relate to several probes into questionable transactions at the insurance giant which led to an improper bolstering of its financial standing. The newspaper also reported AIG has started an internal probe to determine whether the company should formally sever ties with Chairman Maurice R. "Hank" Greenberg [Wikipedia profile]. At issue is a 2000 transaction which appears to have been used to raise the company's reserves artificially. Greenberg, who has led the company for nearly four decades, is scheduled to give a deposition on the matter to New York Attorney General Eliot Spitzer [official website] on April 12. AP has more.
In other news... - Microsoft [corporate website] and the European Commission [official website] has reached an agreement on a name for the new version of the computer giant's Windows XP software. This is the latest step by Microsoft to comply with the EU over the antitrust fine imposed last year. The new name will be Windows XP Home Edition N, with the 'N' standing for "not with media player." The new version could be on the markets within weeks. Read more about Microsoft's attempt to comply with the European Commission. BBC News has more.
- The SEC [official website] is suing three former executives of I-Go Corporation, provider of accessories for laptops and cell phones before it was acquired by Mobility Electronics Incorporated in September 2002, on charges of inflating revenue in 1999 and 2000. The commission sued the company's founder and former chief executive, Kenneth W Hawk, former chief financial officer, Michael Delargy, and former vice president Thomas de Jong. Read the SEC litigation release and complaint [PDF]. AP has more.
- In the largest private takeover since 1989, SunGard Data Systems Inc. [corporate website], whose software handles most Nasdaq Stock Market [official website] trades, will be acquired by seven buyout firms for $10.4 billion in cash. Read the SunGuard press release. Bloomberg has more.
- The China Banking Regulatory Commission [official website] has outlined 13 areas in which Chinese banks can improve their management and tighten internal controls to combat rampant fraud and mismanagement. Read the Commission press release. BBC News has more.
- Trump Hotels & Casino Resorts Inc. [corporate website] announced a settlement with the committee of the company's equity holders. Under the terms of the settlement, the company will make a $17.5 million cash payment to its common stockholders in exchange for the committee's support for Trump Hotels' recapitalization plan. Also, Donald Trump [Wikipedia profile] will trade his right to receive the former World's Fair Site in Atlantic City, New Jersey for a higher stake in the recapitalized company. AP has more.
Click for previous corporations and securities news.


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Supreme Court declines First Amendment and abortion cases
Liza Hall on March 28, 2005 12:09 PM ET

[JURIST] The Supreme Court today declined to hear Troy Publishing v. Norton (docket 04-979), letting stand a ruling that appears to limit Constitutional protection of the press. Without comment, the Court denied the appeal of a 2004 ruling [PDF] by the Pennsylvania Supreme Court holding that neither the state nor the Federal Constitution protected the so-called "neutral reportage privilege," a First Amendment-based doctrine that allowed journalists to safely report defamatory comments uttered by public figures so long as the comments were described in a neutral fashion. The Pennsylvania court ruled in favor of two Parkesburg, PA., officials who sued over a 1995 article in the West Chester Daily Local News. As a result, journalists publishing in Pennsylvania will need to scrutinize public statements more closely for truth or face potential liability. AP has more.
Other cases declined today include Wasden v. Planned Parenthood of Idaho (04-703), a state appeal challenging a Ninth Circuit decision nullifying Idaho's parental consent law for minors seeking abortions; Arkansas v. Jolly (04-806), in which the state sought clarification of the constitutional doctrine to be applied to an excessive delay between a guilty verdict and the imposition of sentence; and Virginia Department of State Police v. Washington Post, et al. (04-999), testing the scope of the right of news organizations and the public to access to sealed court documents. SCOTUSblog has more.


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Bhutan introduces new constitution
D. Wes Rist on March 28, 2005 8:10 AM ET

[JURIST] The Himalayan nation of Bhutan [government website], population 530,000, released the text of a proposed new constitution over the weekend that would transform the system of government from a Constitutional Monarchy into a two-party representative democracy. Bhutan has slowly been working towards a democratic society since the current monarch, King Jigme Singye Wangchuk [Wikipedia profile], stepped down as head of the government and turned that function over to a prime minister. The proposed constitution will create a National Council selected from the national assembly that will govern the country jointly, while the King will remain as a figurehead. Bhutan Chief Justice Sonam Tobgye said that all of the nation's citizens would be given a chance to view the constitution, and suggested that a referendum for ratification was likely by the end of the year. Bhutan has set up an official constitutional website detailing the process used to arrive at the draft version. Kuensel, the nation's only newspaper, has the report of the draft constitution's impending release. Read the draft constitution [official text]. Reuters has more.


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