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Legal news from Tuesday, April 12, 2005 |
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Bolton UN nomination expected to pass in committee
Chris Buell on April 12, 2005 3:58 PM ET

[JURIST] The nomination of John Bolton [official profile] as US ambassador to the UN is expected to be approved by the Senate Foreign Relations Committee [official website] as early as Thursday, despite intense criticism by a former State Department official during a hearing Tuesday. The key senator on the committee, RI Sen. Lincoln Chafee [official website], said he remained inclined to vote for Bolton following the hearing, meaning the nomination will likely pass in the committee. During the hearing, Carl Ford, Jr. [official profile], a former intelligence and research bureau chief at the State Department, said Bolton had a history of harassing lower-level officials who did not agree with his views. Ford said Bolton tried to have one analyst fired after she disagreed with his assessment over whether Cuba was developing biological and chemical weapons. A committee vote on the nomination could come as early as Thursday or by early next week, depending on whether committee members request more time to review documents. AP has more.


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WI joins nine-state coalition suing EPA over mercury rule
Chris Buell on April 12, 2005 3:14 PM ET

[JURIST] Wisconsin Gov. Jim Doyle [official website] has announced that the state will join nine others in suing the Environmental Protection Agency [official website] over a recently announced rule [JURIST report] to reduce mercury emissions. The lawsuit, led by New Jersey Attorney General Peter Harvey [official website], alleges that the rule violates the Clean Air Act because it does not regulate mercury as a hazardous air pollutant. Under the new mercury rule, a cap-and-trade program is used to reduce emissions, rather than the technology-based standard normally required for listed hazardous air pollutants. Harvey contends that the technology-based rule would reduce emissions by 90 percent, more than the 70 percent reduction expected under the Clean Air Mercury Rule [EPA backgrounder]. It would also avoid "hot spots" by requiring equal reductions by every mercury emitter. Proponents of the EPA rule argue that the trading route is more efficient and less costly for businesses to implement. The other states participating in the suit are California, Connecticut, Maine, Massachusetts, New Hampshire, New Mexico, New York and Vermont. Read a press release from Doyle's office. AP has more.


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International brief ~ Zimbabwe opposition challenges election in court
D. Wes Rist on April 12, 2005 1:12 PM ET

[JURIST] Topping Tuesday's international brief, leaders from the Zimbabwean opposition party Movement for Democratic Change [official website] have filed the first of nearly a dozen legal challenges to the validity of the March 31 elections in Zimbabwe [government website]. MDC Legal Affairs Minister David Coltart [party profile] said that the first legal challenge had been filed Tuesday before the election court alleging specific government fraud in the city of Bulawayo. Coltart also said that 10 more specific cases would be filed Friday, one for each of Zimbabwe's 10 electoral provinces. The electoral court has six months to rule on the challenges under Zimbabwean electoral law. MDC President Morgan Tsvangirai [party profile] had previously said that the MDC would not be taking legal action. Coltart and MDC Party spokesman Paul Themba-Nyathi [party profile] said they had convinced Tsvangirai to file the challenges in order to prove to the world that the election was stolen, even though MDC maintains that the Zimbabwean judiciary is more firmly under President Robert Mugabe's control than it was in 2000 and 2002 when MDC previously challenged electoral results and lost. JURIST's Paper Chase has continuing coverage of Zimbabwe. Reuters has more.
In other international legal news ... - The European Commission [official website] Tuesday issued its report on the feasibility study relating to the admission of the Republic of Serbia & Montenegro [government website] to the European Union [official website]. Recent controversy over the cooperation of the Serbian government with the attempts of the UN's International Criminal Tribunal for the Former Yugoslavia [official website] to capture and try alleged war criminal Nebojsa Pavkovic cast doubt on the likelihood of a favorable report, but EU Enlargement Commissioner Olli Rehn [official profile] said that the EC was pleased with the reforms already implemented by Serbia and encouraged the nation to continue its cooperation with the ICTY. Serbian Prime Minister Vojislav Kostunica [official profile] expressed his pleasure at the report, and said that Serbia was looking forward to gaining full membership in the EU. Read the official Serbian press release. Serbia's B92 has local coverage.
- Following five voting rounds that produced an exact 17-17 tie, the General Assembly [official website] of the Organization of American States [official website] announced that the vote for the next Secretary-General of the regional body would be postponed until May 2. Voting was evenly divided between the two candidates: Chilean Interior Minister José Miguel Insulza [official profile in Spanish], and Mexican Secretary of Foreign Affairs Luis Ernesto Derbez [official profile in Spanish]. Under the General Assembly's Rules of Procedure, the vote for Secretary-General may be postponed following repeated ties. The special election is being held to fill the post currently held by Acting Secretary General Luigi R. Einaudi [official profile] following the resignation of Secretary General Miguel Angel Rodríguez, who stepped down to face criminal charges of corruption stemming from his 1998 - 2002 term as president of Costa Rica. Read the OAS official press release.
- The United Kingdom Home Office [government website] has confirmed that new applicants for UK passports will be required to submit their fingerprints for inclusion in the identification document. The UK is currently engaged in a debate about national ID cards, which require authorizing legislation, but as passports are issued by Royal Prerogative, no legislative approval is required. Fingerprint inclusion is the first of several changes the UK is making in the UK Passport Service [official website]. Starting later in 2005, all passports will include a microchip with a digital photograph of the bearer, in addition to the traditional hard copy photo. By the end of 2006, all new passport applicants will be required to conduct a face-to-face interview with a Home Office official. The Home Office confirmed that it plans to include 'biometric' data on all UK passports by the end of the decade. BBC News has local coverage.


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Corporations and securities brief ~ 20 NYSE floor traders indicted
Amit Patel on April 12, 2005 12:40 PM ET

[JURIST] Leading Tuesday's corporations and securities law news, the Wall Street Journal is reporting [subscription req'd] that 20 former NYSE traders who oversaw stock auctions were indicted on charges they traded stocks which benefited their firms at the expense of their customers. Read the NYSE press release. Read the SEC press release and administrative proceeding release [PDF]. The Journal is also reporting that the SEC will file and settle civil charges against the NYSE [corporate website] for not properly policing the traders. The settlement will have the NYSE paying $20 million over several years and require it to strengthen its market-surveillance and regulatory programs. Read the SEC press release and administrative proceeding [PDF]. Read the NYSE press release. AP has more.
In other news... - As previously reported on JURIST's Paper Chase, publisher and data broker Reed Elsevier Group PLC [corporate website] announced close to 310,000 people had their profiles stolen from its legal and business information service LexisNexis' [corporate website] recently acquired Seisint unit. The initial breach was initially reported to be only 32,000. Information including names, addresses, Social Security and driver license numbers were taken. Federal authorities are investigating the breach. Read the Reed Elsevier press release and a LexisNexis press release. AP has more.
- Verizon Communications Inc. [corporate website] announced it has filed a registration statement with the SEC relating to its proposed acquisition of MCI Inc [corporate website]. The statement includes a proxy card MCI will send to its shareholders to vote on the merger and also registers 132 million Verizon common shares to be delivered to MCI shareholders. Read the Verizon press release. AP has more.
- Prosecutors in the Enron [corporate website; JURIST Hot Topic news archive] internet division criminal trial told US District Judge Vanessa Gilmore that they would take approximately two months to try the five defendants. Five former executives and midlevel employees from Enron Broadband Services are charged with conspiracy and fraud and three are also charged with insider trading. Prosecutors say they lied to investors and the public about the value and capabilities of the business. Read the indictment [PDF] against the five. Former co-CEO Ken Rice and former COO Kevin Hannon have already agreed to plea bargains. Read the indictment against Rice and Hannon [PDF]. Read Rice's plea bargain [PDF] and Hannon's plea bargain [PDF]. The Houston Chronicle has more.
- In other Enron news, US District Judge Melinda Harmon heard arguments on the proposed $168 million settlement in a shareholder lawsuit against some former Enron directors. Lawyers for two former Enron Corp. executives, including Chief Financial Officer Andrew Fastow [Wikipedia profile], are fighting the proposal saying it would deplete funds to pay their legal fees. Judge Harmon gave no indication when she would make a ruling. Reuters has more.
- Internet search engine Mamma.com Inc. [corporate website] announced the SEC has changed its informal probe into the company into a formal probe. The investigation relates to alleged stock manipulation at the company last year. Read the Mamma.com press release. AP has more.
- As previously reported on JURIST's Paper Chase, US District Judge Karon Bowdre said she would throw out three perjury counts against former HealthSouth Corp. CEO Richard Scrushy [Wikipedia profile] but did indicate the corporate fraud trial will move forward on other additional charges. The Northern District of Alabama has additional information about the trial. AP has more.
- The former chairman and CEO of American International Group Inc. (AIG) [corporate website] Maurice "Hank" Greenberg [Wikipedia profile] has invoked his constitutional rights against self-incrimination when asked questions related to the insurance giant's reinsurance deal with General Re which is at the center of an investigation in AIG. This comes one day after Warren Buffett [Wikipedia profile] confirmed to regulators that Greenberg knew about the deal. AP has more.
- Global Crossing Ltd. [corporate website] and three former executives have settled with the SEC over an investigation related to the company's swaps of fiber-optic network capacity with other companies which Global Crossing then used to artificially boost revenue by hundreds of millions of dollars. Under the settlement the company pays nothing but former CEO Thomas Casey, ex-chief financial officer Dan Cohrs and former executive vice president of finance Joseph Perrone each pay a $100,000 civil fine and none are required to admit to any wrongdoing. Read the Global Crossing press release. Read the SEC litigation release and complaint [PDF] against the three executives. AP has more.
Click for previous corporations and securities law news.


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Legal agenda and live webcasts ~ Tuesday, April 12
Chris Buell on April 12, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Tuesday, April 12.
The US Senate [official website] convenes at 9:45 AM ET today, when it will consider H.R. 1268 [bill summary], the Iraq/Afghanistan Supplemental Appropriations bill. Watch a live webcast of the session. The Senate Foreign Relations Committee [official website] continues consideration of the nomination of John R. Bolton [official profile] as US ambassador to the UN at 9:30 AM ET today. Watch a live webcast of the hearing. The Senate Intelligence Committee [official website] is holding a hearing to consider the nomination [AP report] of John Negroponte as Director of National Intelligence at 10 AM ET today.
The US House [official website] convenes at 12:30 PM ET today. Watch a live webcast of the session. The House Judiciary Committee [official website] Crime, Terrorism, and Homeland Security Subcommittee is holding a hearing at 1 PM ET on H.R. 1528 [bill summary], the Safe Access to Drug Treatment and Child Protection Act. Watch a live webcast of the hearing. The House Government Reform Committee [official website] National Security, Emerging Threats, and International Relations Subcommittee is holding a hearing at 2 PM ET today on the UN Oil-for-Food Program [JURIST news archive]. Watch a live webcast of the hearing.
The European Parliament [official website] begins its plenary session at 9 AM local time [3 AM ET] today. View the agenda for the session. Watch a live webcast of the session.
The UN Security Council [official website] is holding an open meeting at 10 AM ET today on the situation in the Democratic Republic of Congo. Watch a live webcast of the meeting.
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Slobodan Milosevic [ICTY case backgrounder] continues today at 9:30 AM local time [3:30 AM ET]. Also today, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues today at 2:45 PM local time [8:45 AM ET]. Watch a webcast of proceedings.


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