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Legal news from Friday, April 22, 2005 |
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Corporations and securities brief ~ Grand jury investigates alleged misspending at Wal-Mart
Amit Patel on April 22, 2005 12:38 PM ET

[JURIST] Leading Friday's corporations and securities law news, a Wal-Mart Stores Inc. [corporate website] spokesman said a federal grand jury is reviewing allegations of misspending within company. The investigation into Wal-Mart began after it handed over internal documents to the Justice Department [official website] related to allegations that former vice chairman Tom Coughlin misspent up to $500,000, some of it allegedly for anti-union activity. Wal-Mart has denied any anti-union spending. Coughlin was the No. 2 figure in Wal-Mart's hierarchy before his resignation last year. AP has more.
In other news... - US District Judge Barbara Jones has rejected claims by Nevada utilities Nevada Power Company [corporate website] and Sierra Pacific Power Company [corporate website] against a subsidiary of Enron Corporation. The ruling affirms a federal bankruptcy judge's ruling which threw out the utilities' claims that Enron manipulated markets during the 2000 and 2001 Western energy crisis. The utilities' claim the bankruptcy judge did not have authority to dismiss the claims. Nevada Power and Sierra Pacific Power still face a May 23 trial date to determine if they have to pay Enron more than $300 million to fulfill contracts signed before the energy crisis. AP has more.
- As previously reported on JURIST's Paper Chase, two ex-Merrill Lynch bankers convicted in the Enron [corporate website; JURIST Hot Topic news archive] Nigerian barge scam were sentenced to less than the government requested. Daniel Bayly, the former global head of the investment banking division at Merrill Lynch [corporate website], was sentenced to 30 months in prison and fined $840,000. James A. Brown, former head of the bank's asset lease and finance group, was sentenced to 46 months in prison and $840,000 in fines. Bayly and Brown were both convicted of conspiracy and fraud and Brown was also convicted of lying and obstructing justice. The pair's co-defendants will be sentenced in May. Read the indictment [PDF] against Brown and Bayly. The Houston Chronicle has more and continuing coverage of the Enron barge trials.
- Former Enron Chairman Ken Lay
[Wikipedia profile] will face his four personal banking charges right after the jury goes to deliberation in his Enron fraud charges in 2006. The Enron Task Force had wanted Lay to face his personal fraud charges this year but US District Judge Sim Lake found a 2005 trial would skewer the jury pool for Lay's Enron fraud trial. The Houston Chronicle has more.
- The World Trade Organization (WTO) [official website] ruled in a report the European Union [official website] can pay subsidies to its shipbuilders to help them compete against South Korean yards. However, the ruling also said the EU violated trade rules by unilaterally pay subsidies to its shipbuilders without first filing a complaint at the WTO. The ruling did not give any specific penalties to the EU. Read the WTO report [PDF]. The EU has more on its efforts to even competition in the shipbuilding sector. AP has more.
- Medtronic Inc. [corporate website], the world's biggest maker of spinal implants, announced in s SEC filing [text] that they have paid $1.35 billion to end a lawsuit by Los Angeles surgeon Gary K. Michelson over claims the company made money off his patents without properly compensating him. Bloomberg has more.
- Qwest Communications [corporate website] has raised its offer for MCI Inc. [corporate website] to $9.7 billion in cash and stock. The new offer is more than $2 billin above Verizon Communication's [corporate website] winning offer. The MCI board, which has already rejected Qwest three times, will likely face pressure to reverse course. Read the Qwest press release and the MCI press release. AP has more.
Click for previous corporations and securities law news.


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Environmental brief ~ Earth Day celebrates 35th anniversary
Tom Henry on April 22, 2005 12:37 PM ET

[JURIST] In Friday's environmental law news, today is the 35th celebration of "Earth Day", a day first started by US Senator Gaylord Nelson as a time to reflect on the environment and mankind's relationship to it. The first Earth Day in 1970 was marked with seminars held around the country on air and water pollution, wilderness, land use and the protection of species. Later that year, President Richard Nixon created the Environmental Protection Agency, and within four years a whole series of landmark legislation was enacted: the Clean Air Act, Clean Water Amendments, the Coastal Zone Protection Act, the Estuarine Act, the Marine Mammals Protection Act and the Endangered Species Act. EPA has more on Earth Day events and history.
In other news, - The Nuclear Regulatory Commission [official website](NRC) Thursday proposed [NRC press release] a record $5.45 million fine [NRC fine text] against FirstEnergy Corp. [company website] for neglect of safety procedures at the Davis-Besse [DoE factpage] nuclear power plant in Ottawa County, OH. The NRC said that $450,000 of the proposed fine is specifically attributed to a willful failure to provide the NRC with complete and accurate information about the plant's status after the reactor was refueled in 2000. There is also an ongoing federal grand jury investigation into possible criminal wrongdoing at the plant. The Toledo Blade has the full story.
- Japan's Defense Facilities Administration Agency [official website, Japanese]and the US Navy [official website] have paid 35 million yen (approx. US$330,000) in compensation for two Japanese workers exposed to asbestos at a US Navy base. 22 million yen was paid to a relative of a Japanese worker who died two years ago at the age of 88 and 13 million yen went to a 70-year-old man suffering from serious lung problems as a result of asbestos exposure at the US Navy's Yokosuka base. Navy officials report that the base completed the removal of asbestos from all of its ships more than a decade ago. AP has the full story.


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International brief ~ Togo interior minister wants "suicidal" elections delayed
D. Wes Rist on April 22, 2005 11:55 AM ET

[JURIST] Leading Friday's international brief, Togolese Interior Minister Francois Esso Boko told reporters late Thursday night that he was recommending that what he called the "suicidal electoral process" - the presidential election scheduled for Sunday - be postponed, warning that all signs pointed to it being extremely violent. Esso Boko said he would recommend to the interim president that the election be postponed, that a new interim president be appointed from one of the opposition parties, and that the next year be spent drawing up a new constitution to ensure that when a national election did occur, it wouldn't tear the country apart. Togo currently has an interim president following the several weeks of controversial rule [JURIST report] by Faure Gnassignabe, installed by the military following the death of the former president, his father, before he finally resigned in favor of national elections [JURIST report]. JURIST's Paper Chase has continuing coverage of Togo [JURIST news archive]. IRIN has more. Republique Togolaise, the state news agency, has local coverage in French.
In other international legal news ... - Former Yugoslavian Army chief-of-staff Nebojsa Pavkovic told the Serb government [official website] Friday that he would willingly surrender himself to the International Criminal Tribunal for the Former Yugoslavia [official website]. Pavkovic has been avoiding arrest and transport to the ICTY for several years and was a source of concern to the EU Enlargement Commission and their report on the feasibility of allowing Serbia into the EU. Serbia received a positive report [JURIST report] from the Commission on April 12, but the report expressed a specific desire to see Pavkovic turned over to the ICTY. Pavkovic is scheduled to leave for the ICTY on Monday. Read the ICTY indictment against Pavkovic. Read the official Serb government press release. Reuters has more.
- Three Ugandan soldiers were arrested Thursday on charges of rape and sexual assault of women in the conflict-heavy Kitgum region. The two women are classed as Internally Displaced Persons [UNHCR backgrounder], basically refugees within their own country attempting to avoid the continuing violence between the Ugandan government [official website] and the rebel group The Lord's Resistance Army [Global Security backgrounder]. The arrests followed allegations by MP Jane Akwero [parliament profile] before the Ugandan Parliament [government website] on Tuesday, where she accused the Ugandan army of raiding an IDP camp in Padibe, 20 km north of Kitgum, and systematically gang raping and assaulting the women they found there. Ugandan Prime Minister Apollo Nsibambi [AfricaDatabase profile] ordered the Ministry of Defense [official website] to investigate the incident, and the three arrests Thursday were the first steps of that investigation. Ugandan law requires death by firing squad for soldiers found guilty of rape. IRIN has more.
- The Kyrgyz Parliament voted down an amendment to election laws Friday that would have prevented Kyrgyz Prime Minister and Acting President Kurmanbek Bakiyev [BBC profile] from running for the office of president while still Kyrgyzstan's Prime Minister. The amendment, which failed by only three votes, was designed to prohibit the individuals currently holding the Prime Minister's office or governor level positions from running for office for fear of possible abuse of power and misuse of state resources during a campaign. Bakiyev has already announced his intent to run of President in the upcoming national elections. JURIST's Paper Chase has continuing coverage of Kyrgyzstan [JURIST news archive]. Itar-Tass has local coverage.


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Trial of September 11 suspects opens in Spain
Matthew Shames on April 22, 2005 11:03 AM ET

[JURIST] The trial of 24 suspected members of an al-Quaida cell in Spain began in Madrid Friday. Three of the suspects allegedly used Spain as a staging ground for the September 11, 2001 attacks [JURIST news archive] against targets in the United States. Spain is now the second European country, after Germany, to try suspects involved in the attacks. The three 9/11 suspects, Imad Yarkas, Driss Chebli, and Ghasoub al-Abrash Ghalyoun, are accused of providing logistical cover and information regarding the US targets to other terrorists, including video surveillance of the World Trade Center buildings. The other 21 defendants are charged with terrorism offenses, but are not directly linked to the September 11 attacks. AP has more. Madrid El Mundo provides a "who's who" of the accused and their judges [in Spanish].


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Gay marriage bill approved in Spanish lower house, denounced by Vatican
Matthew Shames on April 22, 2005 9:51 AM ET

[JURIST] The lower house of the Spanish Parliament [official website, in English] has approved a bill to legalize same-sex marriages, a measure sponsored by Spain's ruling Socialist Party. The bill, passed Thursday, now moves to the Senate [official website, in English], where the Socialists have strong support. Adoption of the bill reflects significant changes in Spain, where 80 percent of the population considers themselves Catholic, although half of that number do not follow Church teachings. The Vatican immediately denounced the bill as "iniquitous" and urged Catholics to resist it, even at the risk of losing their jobs; incoming pope Benedict XVI [official website] issued a stern letter against homosexual unions [text] in 2003 while head of the Vatican's watchdog Congregation for the Doctrine of the Faith as then-Cardinal Joseph Ratzinger. The Spanish Bishops Conference [official website in Spanish] has also issued a statement condemning the bill [pre-passage press release in Spanish]. AP has more. BBC News has more.


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