US court lets class action against Bayer proceed
Areas of Focus | 2011/06/20 09:13

The Supreme Court will let two West Virginia residents revive a lawsuit against Bayer AG over its anti-cholesterol drug Baycol, which was withdrawn from the market in 2001 after reports of a severe and sometimes fatal muscle disorder.

The high court on Thursday unanimously agreed to let Kevin Smith and Shirley Sperlazza's class-action lawsuit against Bayer go forward.

The 8th U.S. Court of Appeals had thrown out their lawsuit out after a federal judge overseeing multistate litigation against Bayer refused to let other West Virginians file a similar class-action lawsuit against the corporation.

The high court said that decision was incorrect.


Court won't hear restitution claim in Ponzi case
Areas of Focus | 2011/06/14 02:11
The Supreme Court has rejected an appeal from investment funds seeking repayment of their losses in a $3.7 billion Ponzi scheme operated by Minnesota businessman Thomas Petters.

The funds together lost $165 million and challenged a federal judge's order denying restitution to any of Petters' victims. Among other things, the court said the victims would have other ways of recouping some of their money.

The justices on Monday refused to disturb the ruling.

A federal law generally requires a court to order restitution as part of a defendant's sentence, but allows for some exceptions. The judge in this case said that restitution would be too complex, take too long and result in the payment of less than a penny for each dollar victims lost.


Court orders reconsideration of parole judgment
Areas of Focus | 2011/06/14 02:10
The Supreme Court has ordered a lower court to reconsider its decision to release a criminal on parole.

The high court threw out a lower court decision ordering John Pirtle and other prisoners released from prison on parole.

Pirtle was convicted of killing his wife, and the parole board started denying him parole in 2002. Pirtle sued in federal court, saying his parole was denied without any proof that he posed a danger if he got out.

The lower courts agreed with him and ordered him and other prisoners in similar situations released on parole.

The high court threw out that decision in a summary judgment and ordered the 9th U.S. Circuit Court of Appeals in San Francisco to reconsider it.


Toyota class action suit to start with Utah case
Areas of Focus | 2011/06/11 06:44
The first lawsuit to go to trial in a massive class action against Toyota Motor Corp. over acceleration problems that led the company to recall 14 million cars will involve a crash that killed two people in western Utah, a federal judge said Friday.

U.S. District Judge James Selna told attorneys the case of 38-year-old Charlene Jones Lloyd and 66-year-old Paul Van Alfen, whose Toyota Camry slammed into a wall in Utah in 2010, is scheduled to go to trial in February 2013.

The case — Van Alfen v. Toyota Motor Sales, U.S.A., Inc. — will be the first of several bellwether lawsuits, intended to determine how the rest of the litigation will proceed.

Selna wrote in a tentative order that he hoped the selection would "markedly advance these proceedings."

"The Court believes that selection of a personal injury/wrongful death case is most likely the type of case to meet that goal," Selna said.

Toyota said it welcomes the Utah case as the first suit to reach court.

"We are pleased that the initial bellwether will address plaintiffs' central allegation of an unnamed, unproven defect in Toyota vehicles, as every claim in the multi-district litigation rests upon this pivotal technical issue," the company said in a statement.

Toyota has previously argued the plaintiffs have been unable to prove that a design defect in its electronic throttle control system is responsible for vehicles surging unexpectedly. It has instead blamed driver error, faulty floor mats and sticky accelerator pedals.


Ex-IMF leader pleads not guilty to sex assault
Areas of Focus | 2011/06/06 16:17
The former International Monetary Fund head charged with trying to rape a Manhattan hotel maid formally said he was innocent of the charges Monday in his first court appearance in the case in two weeks.

Dominique Strauss-Kahn pleaded not guilty in a strong voice at the brief proceeding, standing between his defense team as his wife, journalist Anne Sinclair, watched.

State Supreme Court Justice Michael Obus went through the formality of telling Strauss-Kahn he needed to appear in court and had a right to be present at his trial, to which the economist said "yes."

The French diplomat appeared in court for the first time since he was released on $6 million in cash bail and bond last month. He has been under house arrest that includes 24-hour monitors and armed guards, first in a downtown Manhattan apartment and now in a deluxe, $50,000-a-month Tribeca town house.

About 50 hotel workers bused in by their union gathered outside the courthouse to jeer Strauss-Kahn, many wearing their work uniforms. They shouted "shame on you" as he arrived, and again as he left in a black sport-utility vehicle.


Loughner lawyer says she can't provide discovery
Areas of Focus | 2011/06/06 16:16
The Tucson shooting rampage suspect's lawyer says she's unable to provide discovery requested by prosecutors until her client is declared competent to stand trial.

In a Monday filing, defense attorney Judy Clark says the court's finding that Jared Lee Loughner is incompetent to stand trial makes it clear that she "cannot have rational or meaningful communication" with him.

She says she also cannot consult with him about any possible defenses or evidence that may be presented at trial until he is declared competent.

Judge Larry Burns ruled last month that Loughner is mentally unfit to assist his lawyers or understand the charges he faces.

Loughner has pleaded not guilty to charges stemming from the Jan. 8 Tucson mass shooting that killed six and injured 13, including Rep. Gabrielle Giffords.


Goldman Receives Subpoena Over Financial Crisis
Areas of Focus | 2011/06/02 15:54
Goldman Sachs has received a subpoena from the office of the Manhattan District Attorney, which is investigating the investment bank's role in the financial crisis.

The inquiry stems from a 650-page Senate report from the Permanent Subcommittee on Investigations that found Goldman had "misled" its clients about mortgage-linked securities. Senator Carl Levin, the Democrat of Michigan, who headed up the Congressional inquiry, had sent his findings to the Justice Department to figure out whether executives broke the law.

The subpoena come two weeks after lawyers for Goldman met with the Manhattan District Attorney's office for an "exploratory" meeting about the Senate, the people said.

"We don't comment on specific regulatory or legal issues, but subpoenas are a normal part of the information request process and, of course, when we receive them we cooperate fully," said a Goldman spokesperson.

Shares of Goldman Sachs were down more than 2 percent on Thursday.


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