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Legal news from Friday, April 20, 2007 |
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NY AG suing university for accepting student loan lender payments
James M Yoch Jr on April 20, 2007 1:27 PM ET

[JURIST] The Office of the New York Attorney General [official website] Thursday sent notice [PDF text; press release] of its intent to sue Drexel University [official website] for accepting payments from student loan lender Education Finance Partners (EFP) [corporate website] based on the amount of money the private lender loaned to Drexel students. According to NY AG Andrew Cuomo, Drexel committed deceptive business practices for accepting $124,000 for funneling students to EFP. EFP owes an additional $126,000 to the university for deeming EFP its "sole preferred private loan provider." According to the notice: The contracts and payments, which were not disclosed to students or their parents, created unlawful conflicts of interest on the part of Drexel and may have misled the student borrowers and their parents. To avoid such conflicts of interest, Drexel must terminate any revenue sharing arrangement with any lender. Drexel must require lenders to compete for the students' loans by offering the best loan products to students, not the best kickback to Drexel....
Drexel has also repeatedly and persistently engaged in misleading and deceptive business practices and false advertising by fostering the false impression to student borrowers and their parents that Drexel, which is in a position of trust with students and their parents, is a lender or lender partner on EFP's private education loans. On Friday, Drexel President Constantine Papadakis [university profile] fired back at Cuomo's office, saying Drexel would fight the lawsuit and rejecting allegations that it acted inappropriately or unlawfully. In a statement [text], Papdakis expressed concern about Cuomo's motivations underlying the lawsuit, which he claimed was sent to the student newspaper and then forwarded to university officials:The timing and public release of the Attorney General's notice of intent to sue raises troubling questions as to his motivations and to his tactics. Indeed, his conduct violates fundamental principles of fair play to which Drexel and its students are entitled and therefore we will move forcefully to protect our position in this matter. Papadakis said Drexel previously disclosed all finanical aid procedures with Cuomo and contended that the school used all funds it collected from EFP for student scholarships.
Cuomo's investigation into alleged kickbacks from private loan institutions to universities has resulted in settlements with eight universities so far, with some schools ceasing their revenue sharing arrangements with the lenders, agreeing to repay students, and assuring compliance with a code of conduct [PDF text] developed by Cuomo's office. Cuomo maintains that New York courts can assert personal jurisdiction over Drexel University, located in Philadelphia, Pennsylvania, because of the number of New York students attending the school. Earlier this week, Cuomo announced that the state reached a settlement [press release] with EFP, which agreed to end all revenue-sharing arrangements, adopt the code of conduct and pay $2.5 million to a student loan education fund. Previously, private lenders Sallie Mae and Citibank, which were also implicated in Cuomo's investigation, agreed [press release] to adhere to the code. The New York Times has more. The Philadelphia Inquirer has local coverage.


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Bosnian Serbs go on trial for Srebrenica massacre roles
JURIST Staff on April 20, 2007 1:18 PM ET

[JURIST] Four Bosnian Serbs who went on an "illegal military operation" during the Srebrenica massacre [BBC backgrounder; JURIST news archive] in July 1995 went on trial Friday before the War Crimes Chamber of the Court of Bosnia and Herzegovina [official website; HRW backgrounder] in Sarajevo. The indictment alleges that the men, two of whom are former military policemen, helped confine two to three thousand unarmed Muslim civilians in a school after Serb forces overran Srebrenica, a UN "safe area," and participated in the abuse, beatings, and cruel treatment of their detainees. The charges against them include not preventing the massacre, failing to protect civilians during the tragedy, and executing five Muslims.
Approximately eight thousand Muslims from Srebrenica and surrounding villages were killed during the Srebrenica massacre. About half of the victims have been found in over 80 mass graves in the area. In February, the International Court of Justice (ICJ) recognized the mass killings in Srebrenica as an act of genocide [JURIST report]. Reuters has more.


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Privacy groups file FTC complaint over Google DoubleClick acquisition
James M Yoch Jr on April 20, 2007 12:52 PM ET

[JURIST] Several Internet privacy groups filed a joint complaint [PDF text] with the Federal Trade Commission (FTC) [official website] on Friday concerning the merger of search engine Google [corporate website] with advertising provider DoubleClick [corporate website]. The groups, including the Electronic Privacy Information Center (EPIC), the Center for Digital Democracy (CDD) and the US Public Interest Research Groups (PIRG) [advocacy websites], requested that the FTC block the proposed merger [agreement text; SEC press release] until the agency conducts an investigation. The groups allege the merger allows Google to match users' names and physical addresses with their IP addresses and Internet usage history and habits.
The complaint accuses Google of engaging in unfair trade practices: Googles collection of information about its users, through the retention of users search terms in connection with their IP address, is performed without the knowledge or consent of Google users. . . . As a result of Googles failure to detail its data retention policies until four levels down within its website, its users are unaware that their activities are being monitored. Furthermore, Google does not provide any opt-out option to its users who do not want Google to store their search terms. .... Googles collection of information about its users without compliance with Fair Information Practices, such as the OECD Privacy Guidelines, is likely to cause 10 substantial injury to consumers, which is not reasonably avoidable by consumers and not outweighed by countervailing benefits to consumers or competition, and therefore is an unfair practice. The complaint also criticizes Google's data retention policies under which the search giant collects and stores information about hundreds of millions of users' searches, address information, schedules and e-mailed documents. The prolonged data retention could result in the infringement of those users' privacy rights if hackers or even the government gains access to the information, prompting the privacy groups to demand a policy for destroying the data and allowing users to access information stored about them. The groups also urged the FTC to ensure that Google complies with the international privacy standards [text] set by the Organisation for Economic Co-operation and Development (OECD) [official website]. Google has rejected claims that it is engaging in unfair trade practices and says it has no plans to use the information to identify specific users for Internet advertisements. AP has more.


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Democrats take Justice Department to court over US Attorney firing FOIA request
Michael Sung on April 20, 2007 9:27 AM ET

[JURIST] The Democratic National Committee (DNC) [party website] filed a federal lawsuit [complaint, PDF] against the US Department of Justice [official website] Thursday, seeking the disclosure and release of DOJ records in accordance with the DNC's March 19, 2007 Freedom of Information Act (FOIA) request [PDF text] involving the controversial firing of eight US attorneys [JURIST news archive]. The complaint alleges that the DOJ has failed to respond to the Freedom of Information Act [DOJ materials] request within the twenty working days, as required under the act, and has also failed to provide the DNC "any written notice of any extension of that time limit."
Last Tuesday, a White House spokesperson said that several emails that fall within the Senate Judiciary Committee's document requests appear to be lost [ABC report]. At least 21 White House staffers used email accounts provided by the Republican National Committee (RNC) [party website] to avoid liability under the Hatch Act [backgrounder], which prohibits the use of government resources for political purposes. Other laws, however, prohibit staffers from failing to preserve presidential records. The White House said Saturday that it would cooperate with the committee in choosing an independent consultant to recover lost administration emails [JURIST report]. AP has more.


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House passes DC congressional voting rights bill
Gabriel Haboubi on April 20, 2007 7:25 AM ET

[JURIST] The US House of Representatives [official website] passed the District of Columbia House Voting Rights Act (HR 1905) [bill summary] Thursday, which could increase official House membership for the first time since 1960. The bill, which passed 241-177 [roll call], would make the District of Columbia [official website] a congressional district with full voting rights in the House, and as a compromise with Republicans, add a temporary at-large seat for Utah. Utah came close but fell short of obtaining a new district [PDF backgrounder] after the 2000 census. The future of the bill in the less Democratically-dominated Senate is far from certain, however, and President George W. Bush has threatened a veto [JURIST report], calling the bill unconstitutional.
The District of Columbia currently has a delegate in the House, Eleanor Holmes Norton [official website], who is able to vote in committee and on some amendments, but is not allowed to vote on the final passage of a bill. A February report by the Congressional Research Service flagged the potential unconstitutionality [JURIST report] of any bill granting a House vote for the District, focusing on the language in Article I, Section 2, Clause 1 of the Constitution that the House is to be comprised by the "people of the several States." AP has more.


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