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Legal news from Monday, August 15, 2005 |
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Corporations and securities brief ~ NYSE fines Merrill Lynch for "operational lapses"
James Murdock on August 15, 2005 7:06 PM ET

[JURIST] Leading Monday's corporations and securities law brief, the New York Stock Exchange says it has censured and fined Merrill Lynch for what it called "supervisory and operational lapses." In a press release, the NYSE indicated it has fined the brokerage giant $10 million for, among other things, failure to deliver prospectuses and product descriptions to customers. Merrill Lynch also had not fulfilled its obligations under a previous disciplinary measure and had not properly maintained records, the NYSE added. Reuters has more.
In other corporations and securities law news... - After closing on its purchase of NEXTEL Friday [Reuters report], the new Sprint [merger website] corporation began trading Monday. The completed merger follows months of legal wrangling with affiliates and subsidiaries [JURIST report]. Sprint is now the third largest wireless phone service provider in the United States. Reuters has more.
- President Bush will not intervene in the ongoing labor dispute between Northwest Airlines [JURIST report] and their mechanics' union. Bush may interfere with any labor dispute that could damage interstate commerce, as he did in 2001 when he prevented a labor stoppage [CNN report] between these same two groups by requiring a 60-day "cooling off" period before the union could strike. Both Northwest and the union say they are prepared for a strike. In a recent press release, Northwest said it must cut $1.1 billion from its budget to avoid bankruptcy. Reuters has more.
- The SEC has charged four brokers and a day trader [SEC press release] with fraudulently cheating investors through a "squawk box" scheme. A squawk box is a device securities traders use internally to broadcast sell and buy orders for large blocks of securities. John J. Amore, the day trader, is charged with bribing former and current brokers with Citigroup, Lehman Brothers and Merrill Lynch to allow him to listen in on their squawk box lines. Amore was then able to know when the large purchases were about to go through and profit from the information, the SEC said. Bloomberg has more.


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States brief ~ RI Supreme Court hears arguments on constitutionality of casinos
Rachel Felton on August 15, 2005 5:39 PM ET

[JURIST] Leading Monday's states brief, the Rhode Island Supreme Court [official website] heard oral arguments today on whether a casino proposed by the Narragansett Indian tribe [tribe website] and the Las Vegas-based Harrah's Entertainment would be a constitutional expansion of gambling. Last year, the Supreme Court declared [PDF text] the proposal unconstitutional because it violated the requirement that all lotteries be state run. This year the state General Assembly passed a new proposal which gives the state lottery division control over all operations at the casino. Supporters claim the new proposal satisfies the state constitution's requirement that all lotteries be run by the state, but opponents claim the proposal is still an unconstitutional expansion of gambling. The state Supreme Court is issuing an advisory opinion at the request of the House of Representatives, and if the court finds the proposal constitutional, it will still have to be approved in a statewide ballot. AP has more.
In other state legal news ... - Connecticut Attorney General Richard Blumenthal Monday announced [Attorney General press release] a $1.5 million settlement agreement with Wal-Mart to resolve a 2001 lawsuit in which the state accused the company of environmental violations. Specifically, the state accused Wal-Mart [company website] of improperly storing sediments, fertilizers, oil and other potential pollutants in places where rain could wash them into nearby bodies of water and of operating without proper permits for handling wastewater from processing photographs and byproducts from working on cars. As part of the agreement, Wal-Mart will pay a $600,000 fine, contribute $500,000 to help cities comply with storm and water regulations and donate $50,000 to environmental projects in the Connecticut River Watershed [Connecticut River Watershed Council website]. Blumenthal said the agreement sends a strong message to the company. AP has more.
- The Pennsylvania Supreme Court reinstated criminal charges [PDF decision text] for risking catastrophe and conspiracy against two men Monday for the collapse of a nightclub pier [The Detroit News coverage] into the Delaware River by finding that the two men did more than simply ignore the pier's structural problems. In reversing two lower court decisions that found felony charges were not warranted against the men, the Supreme Court wrote "The actual evidence ... tended to show that, for approximately five and one-half years (the men) allowed the structural soundness of their pier to steadily decline in large part because of the cost to repair it satisfactorily." Three women were killed and dozens injured when the Philadelphia pier fell into the Delaware River in 2000. AP has more.
- The Alabama Supreme Court of Civil Appeals [official website] has found that the Alabama Department of Environmental Management's [official website] water quality "antidegradation policy" satisfies water quality standards under the Clean Air Act. The Clean Air Act [Enviromental Protection Agency website] requires states to avoid water pollution or at least hold it to an absolute minimum when some level of pollution is necessary for economic development. The court also upheld the ADEM's cost-based rule which states that if the cost of a nonpolluting alternative wastewater method is 10% or more than the cost of the current method, the other alternative is not required. The Legal Environmental Assistance Foundation filed a lawsuit [LEAF press release] against the department in 2002, saying that the department's permit process allows too many businesses to pollute state waterways and the cost-based rule is arbitrary and unconstitutional. AP has more.


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EDITORS WANTED ~ Research, write legal news in real time...
Jeannie Shawl on August 15, 2005 2:46 PM ET

[JURIST] JURIST is looking for talented, public-service oriented law students from law schools in the US and abroad to join our team of real-time legal news editors this fall.
From Los Angeles to London, from Chicago to Cairo - if you're a law student looking for intensive research, writing and editing experience and your own byline on a high-profile, mass-audience, volunteer-driven project dedicated to increasing awareness of important national and international legal issues, we may have a position for you!
In particular, we're looking for good writers, skilled Net surfers and fluent English-speakers with a nose for news who can spare at least 10 hours a week - weekdays, evenings and/or weekends - during the law school term to work online with members of our Pittsburgh-based law student staff who power JURIST's Paper Chase legal news weblog every day. Journalistic experience is helpful, but certainly not a prerequisite. Report on the latest legal news in your geographical area, or in your own area of interest. Learn the latest law that matters, make friends across the country and around the world, and gain valuable career and computer skills, all at the same time.
Interested? To apply for an online audition as a JURIST legal news editor, e-mail JURIST@law.pitt.edu
The limited number of JURIST editorial positions will fill up fast with the start of the fall law school term. Applications are already coming in from law students across the country, so contact us now!


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BREAKING NEWS ~ Agreement reached on Iraq constitution, ready for referral to parliament
Jeannie Shawl on August 15, 2005 1:20 PM ET

[JURIST] AP is reporting that a Shiite member of Iraq's constitutional committee [official website] is saying that an agreement, on all but two issues, will be referred to Iraq's National Assembly. As of Monday morning, the committee charged with drafting the Iraqi constitution [JURIST news archive] had reached agreement on most of the contested issues, but had not yet resolved questions of federalism [JURIST report], the role of Islam and certain other issues. The draft constitution must be submitted to the National Assembly by the end of the day or an extension of the drafting period must be approved by parliament, the president, and his two deputies.
1:38 PM ET - Nasar al-Rubaie has said that the draft constitution will be handed over to the National Assembly late Monday evening, leaving the parliament to resolve the two outstanding, and so far undisclosed, issues. AP has more.
2:14 PM ET - Al-Rubaie has identified the two remaining issues as women's rights and self-determination and a Kurdish demand for increased autonomy with the right to secede in the future. Another Shiite member of parliament, Jalaldin al-Saghir, confirmed that there had been agreement on a draft constitution, but did not identify the remaining issues, saying only that "There are two points that the National Assembly will have to solve." AP has more.
3:32 PM ET - In a conflicting report, AP is now reporting that Barhem Saleh, Iraq's minister of planning, told Al-Arabiyah TV late Friday evening that it was not possible to reach a full agreement on a draft constitution and that a postponement of 7-10 days would be sought. Saleh told reporters that the drafting committee agreed to extend the discussion period for up to 10 more days and that if an agreement is not reached, the National Assembly will be dissolved and there will be new general elections. AP has more.


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Former Iraqi agents face trial in Yemen for targeting Western embassies
D. Wes Rist on August 15, 2005 11:48 AM ET

[JURIST] Ahmed Salman Dawd al-Zubaidi, Ahmed Muthanna Jassem Ahmed Al-Aani, and Mohammed Mahdi Abderrahman Aasi al-Kanani, all Iraqi intelligence agents under the Saddam Hussein regime, entered pleas of not guilty Monday as they were arraigned before a Yemeni court for allegedly plotting to destroy the US and British [official websites] embassies in Yemen [government website]. Ali Rashed al-Saadi, a fourth suspect and the suspected ringleader, remains at large and was included in the proceedings in absentia. The court set the next hearing for August 28, at which time the defense will be permitted arguments, while the prosecution will present evidence against the four men, including four suitcases filled with explosives, confiscated when the men were arrested. AFP has more.


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Ugandan journalist accused of sedition for Garang statements released on bail
D. Wes Rist on August 15, 2005 10:59 AM ET

[JURIST] Ugandan journalist Andrew Mwenda [Wikipedia profile], a reporter for KFM Radio, was arraigned and released on bail Monday, following his plea of not guilty to charges of sedition, allegedly committed when he "uttered words with the intention to bring into hatred or contempt or to excite dissatisfaction against the person of the president." Mwenda was one of the first local reporters to publicly criticize the Ugandan government concerning the death of Sudanese Vice-President John Garang [Wikipedia profile]. Mwenda alleged that Ugandan President Yoweri Museveni [official profile], a close friend of Garang's, was responsible for his death through sheer incompetence. Museveni had lent Garang the aircraft he was flying in when the crash occurred [JURIST report]. KFM Radio was shut down Thursday following Mwenda's remarks, and he was then arrested on Friday. The Ugandan government announced Monday that it was allowing KFM Radio to reopen soon [Daily Monitor report], once the government's investigation of the station was completed. Mwenda's next hearing is set for August 29. Uganda's Daily Monitor, for which Mwenda is also a political reporter, has local coverage. Reuters has more.


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