Cross examination of Disney CEO Michael Eisner began Wednesday in a shareholder suit against Walt Disney Co. over whether the executive board neglected its duty to shareholders in allowing former president Michael Ovitz to leave with a $140 million severance package after only 14 months of work. The case threatens to set a high-profile precedent [...]

Petco Animal Supplies has agreed to settle Federal Trade Commission charges that the animal supply company's website violated federal law by misrepresenting privacy promises it made to its customers, the FTC announced Wednesday. The Commission said Petco did not take reasonable or appropriate measures to prevent hacker attacks, allowing access to consumer records and credit [...]

An Federal Communications Commission spokeswoman said Wednesday that the FCC has received a number of complaints about the opening scene of ABC's most recent airing of Monday Night Football. The agency may decide to investigate the incident, which could result in a maximum indecency fine of $32,500 per ABC affiliate. The scene, filmed the previous [...]

In Wednesday's corporations and securities law news, federal officials are investigating former Enron Chairman Kenneth Lay's wife in connection with a $1.3 million Enron stock sale just days before the energy company went under. The couple's lawyer indicated the Lays learned about the investigation in circumstantial ways and have not been charged with anything as [...]

AP is reporting that House Republicans have adopted a change in rules that would protect re-elected GOP Majority Leader Tom DeLay from having to relinquish his party leadership post in the event of his indictment by a Texas grand jury. DeLay could face such an indictment in the wake of an ongoing investigation into campaign [...]

AP is reporting that President Bush has picked deputy chief of staff Harriet Miers as White House counsel, the post to be vacated by attorney general nominee Alberto Gonzales. 1:10 PM ET – The AP story is available here. Harriet Miers formerly served as Bush's personal lawyer in Texas, and has been serving as deputy [...]

Roman Polanski, the Oscar-winning film director, urged England's highest court on Wednesday to allow him sue via video link to avoid being extradited to the US on charges of child sex offenses. Polanski, who lives in Paris, wishes to sue Vanity Fair magazine in the UK for libel. Polanski relies upon English civil procedure rule [...]

The SEC announced Wednesday that Gary Pilgrim and Harold Baxter, founders of Pligrim Baxter mutual funds, have agreed to pay $80 million each and be barred from associating with mutual funds in settlement of charges the SEC had brought over market timing abuses. The $160 million payment will be added to the $90 million paid [...]

UK Home Secretary David Blunkett said Wednesday that government plans to issue national ID cards will help protect people's identities rather than threaten their civil liberties. Blunkett, who was speaking at the Institute of Public Policy Research, said the extent of information on the cards would be limited to personal details including name, address, date [...]

Stephen Bainbridge: UCLA Law School: "'House Republicans proposed changing their rules last night to allow members indicted by state grand juries to remain in a leadership post, a move that would benefit Majority Leader Tom DeLay (R-Tex.) in case he is charged by a Texas grand jury that has indicted three of his political associates, [...]