Lawsuit says ads in social games are scamming players
Legal Topics | 2009/12/07 19:18
Gamers are crying foul play over what they claim are misleading ads on social games.

A class-action lawsuit last month highlights what thousands of consumers say are bogus offers tied to social games available on Facebook and other social networks. The 16-page lawsuit, filed in U.S. District Court in nearby Sacramento, details how Rebecca Swift, a 41-year-old self-employed resident of Santa Cruz, Calif., was lured into accepting two "special offers" from advertisers to gain extra game credits for YoVille, a popular virtual-world game developed by Zynga.

More than $200 was illegally charged to Swift's credit card over several months, the lawsuit alleges. It seeks compensation from Facebook and Zynga for Swift and thousands of others, says attorney John Parker, who represents the plaintiff.

Zynga had no comment on the lawsuit.

It claims 90% of its revenue comes from user purchases of virtual goods. Zynga says 1 million users purchase goods each month.

Facebook says the ads came from third parties, but it takes the issue seriously. It called the lawsuit frivolous and without merit.

The lawsuit illustrates the kerfuffle over misleading social-gaming ads that have frustrated consumers and scared away legitimate advertisers, who do not want to be lumped with scamsters, says Alex Rampell, CEO of TrialPay, an online payment and promotions service.

Social games are among the hottest things going online. Millions have flocked to Facebook, MySpace and elsewhere to play free games that test their wits and skills against friends.

But to gain entry to new levels of the game, an undetermined number of players unknowingly are signing up for special offers. Some of those offers, such as an IQ test and green tea offer that Swift agreed to, automatically charge the game player.

The stakes are particularly high for Zynga, which draws more than 100 million visitors a month and is eyeing a possible initial public stock offering next year. Industry estimates peg its annual revenue at $100 million to $250 million, of which $33 million to $84 million may come from these "special offers," the suit claims.


Lawsuit: Botched Diagnosis Led to 30-Year-Old New York Teacher's Brain Hemorrhage Death
Legal Business | 2009/11/23 18:08
Doctors at a Long Island hospital failed to properly diagnose a 30-year-old Queens teacher's head pain in the days leading up to her death from a brain hemorrhage, a lawsuit alleges.

Melissa Fudge, who taught at PS 16 in Corona, died a year ago tomorrow. She had a history of ulcerative colitis when she was admitted to Long Island Jewish/Plainview Hospital in November 2008 complaining of vomiting and gastrointestinal pain accompanied by a searing headache and shooting pain in her left eye.

Doctors treated her for colitis, but her head pain continued, said her lawyer, Gerard Lucciola.

"They kept giving her transfusions and couldn't understand where all the blood was going," said her husband, Roger Fudge Jr. "They got tunnel-visioned on the colitis."

And, he said, the tragedy had far-reaching effects.

"It wasn't only me; it was my family, her family — her students, too," he said.

The suit, filed last week in Queens Supreme Court, seeks unspecified damages from the hospital and three doctors.


Idaho to pay $50K to settle grazing lease lawsuit
Areas of Focus | 2009/11/18 18:01

Idaho agreed Tuesday to pay $50,000 and pledged to follow anti-discrimination rules to settle a federal lawsuit against state officials who awarded grazing leases to ranchers, not the environmentalist who had offered more money.

The Idaho Board of Land has also committed to revising its rules to allow conservation groups to lease state endowment trust lands, a big change after years of fierce litigation. The board's five members are the governor, state controller, secretary of state, attorney general and superintendent of public instruction.

In 2006, Washington state businessman and environmentalist Gordon Younger was the high bidder on seven Idaho grazing leases, but lost when the Board of Land with then-Gov. Jim Risch gave the leases to livestock owners. Younger, who planned to manage the lands to restore what he called "their degraded streams and wildlife habitats," sued in U.S. District Court on grounds he was the victim of discrimination.

Laird Lucas, attorney for Younger's Lazy Y Ranch Ltd., said Tuesday he's optimistic this settlement and the Board of Land's revised leasing rules represent a departure from the past, when conservation groups were bullied out of winning state grazing leases and left no other option than to sue.



Court again upholds Fla. homeowner tax breaks
Legal Topics | 2009/11/18 18:00

A three-judge panel Tuesday rejected another challenge to state constitutional amendments that give property tax breaks to Florida's primary homeowners, but not to owners of second homes.

The panel of the 1st District Court of Appeal disagreed with arguments that the amendments violate U.S. constitutional rights of travel and interstate commerce by favoring longtime Florida homeowners over those who have recently moved to the state.

The judges cited a July decision that also upheld the Save Our Homes Amendment, which limits annual assessment increases to no more than 3 percent for homesteads, in a case filed by out-of-state residents who own second homes.

In the new case filed by recently arrived Florida residents, the judges also for the first time upheld a new state constitutional amendment passed last year that includes a "portability" provision. It lets homeowners take at least part of their Save Our Homes benefits with them when they move.

The panel, though, returned a third appeal attacking both tax breaks to a trial judge for reconsideration because he erroneously dismissed the case on grounds that he lacked jurisdiction. That case also was filed by out-of-state residents who own second homes in Florida.

The appellate court in July ruled the tax benefit is based on the way the property is used, not on the status of the owner as a resident or nonresident. That case, now on appeal to the Florida Supreme Court, did not include the portability provision.



Fla. lawyer suspected in $1B fraud losing license
Legal Topics | 2009/11/18 18:00

A South Florida lawyer suspected of operating a $1 billion Ponzi scheme is asking for his own disbarment.

A Florida Bar committee has approved the disbarment request submitted by attorney Scott Rothstein. A spokeswoman said Wednesday the final decision must be made by the state Supreme Court.

The FBI says Rothstein sold investments in legal settlements that did not exist. The total amount lost could top $1 billion. No criminal charges have been filed yet.

Once disbarred, Rothstein would no longer be allowed to serve on a panel that nominates appeals court judges. Gov. Charlie Crist appointed Rothstein to that panel in 2008. Rothstein was a major contributor to Crist and many other high-profile politicians nationwide.



Guilty plea in Wash. shooting spree that killed 6
Headline Legal News | 2009/11/18 17:59

A man who killed six people, including a sheriff's deputy, in a northwest Washington shooting rampage last year pleaded guilty Tuesday and will spend the rest of his life in a mental hospital or prison.

Isaac Zamora entered the pleas to 18 charges, including aggravated murder, attempted murder and burglary, after prosecutor Rich Weyrich agreed he would not seek the death penalty.

"Mr. Zamora won't ever walk the streets again," Weyrich said. "From a public safety standpoint, we've accomplished that."

Zamora, 29, began his rampage Sept. 2, 2008, near the town of Alger, 70 miles north of Seattle, and continued it on Interstate 5. Described by his family as mentally disturbed, he was captured after a police chase and later told investigators he killed for God.

The dead included a man who had accused Zamora of trespassing, a woman who lived nearby, two construction workers, a motorist on the highway, and Skagit County Deputy Sheriff Anne Jackson. Jackson had frequently tried to help Zamora's family deal with his mental illness, Zamora's mother said.



Court gives $1.1B tanker contract back to Boeing
Areas of Focus | 2009/11/17 18:00

A federal appeals court has reversed a ruling that overturned Boeing Co.'s $1.1 billion contract for maintenance of an Air Force refueling tanker jet.

The decision Tuesday by the U.S. Court of Appeals for the Federal Circuit reinstates Chicago-based Boeing's 10-year contract for work on the KC-135 Stratotanker — the Air Force's primary mid-flight refueling aircraft.

Boeing, which built the KC-135, was awarded the maintenance contract in September 2007. The company had already held similar contracts for nearly a decade.

But rival bidder Alabama Aircraft Industries Inc. filed suit, claiming the contract was not properly awarded to Boeing, citing issues such as pricing and past performance. The U.S. Court of Federal Claims ruled for Alabama Aircraft Industries in 2008 and ordered the Air Force to re-solicit bids for the maintenance deal.

Boeing spokesman Dan Beck said the company is pleased with the decision and that Boeing looks forward to beginning work with the Air Force.

An Alabama Aircraft Industries president Ronald Aramini said in a statement that the company was disappointed with the ruling and that it "will be reviewing all legal and strategic options available to us."




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