Lawsuits Over Oil Rig Disaster Spill Into Court in Louisiana, Mississippi | National Law Journal

More litigation is gushing out of the Gulf of Mexico oil spill.

In Mississippi, two commercial shrimpers on Monday filed a $5 million class action in federal court in Gulfport, alleging the oil spill could destroy their livelihoods. The plaintiffs are represented by Sheehan & Johnson in Biloxi, Miss., and Gambrell & Associates in Oxford, Miss.

In Louisiana, Houston‘s Lanier Law Firm filed a proposed class action on Monday in federal court in New Orleans on behalf of a fishing company claiming financial injuries from the spill.

In the same court, Wigington Rumley & Dunn of Corpus Christi, Texas, plans to file two similar lawsuits today on behalf of two other charter fishing companies alleging their business has come to a halt because of the spill.

There’s also Cooper v. BP PLC, the first oil spill lawsuit filed last Friday, also in the Eastern District of Louisiana, where shrimpers, commercial fisherman and commercial boaters are suing over lost business. The lead lawyer in that case is Daniel Becnel Jr. of Becnel Law Firm in Reserve, La.

And Joseph Ritch of Wigington Rumley said there's no telling where the litigation will end. “We know that the amount of the oil spilling is going to affect all walks of life….Condo associations, casinos along the gulf, hotels — if there’s oil on the beach when people are going on vacation, you figure people aren’t going to go there,” he said.

via Law.com – Lawsuits Over Oil Rig Disaster Spill Into Court in Louisiana, Mississippi.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

‘Aerospace, defence face hurdles in globalising’

With global aerospace and defence (A&D) majors positioning themselves to fulfil expected defence offsets obligations through partnerships with Indian A&D companies, consultancy firm PricewaterhouseCoopers (PwC) has released a report that examines the opportunities and pitfalls in this globalising sector.

The defence offset obligation that global A&D corporations must meet in India require foreign vendors who sign contracts worth more than Rs 300 crore for supplying defence equipment to India to source from Indian companies at least 30 per cent of the value of the contract. India’s current levels of defence spending could generate offsets worth Rs 15,000 crore annually.

The PwC report starts by establishing that the A&D sector is highly global in terms of sales, but only partially globalised from the viewpoint of supplies. For example, Canadian aerospace major Bombardier has customers in over 100 countries; but components and materials are sourced from just 40 countries.

The PwC report stipulates that an industry can be considered to be rapidly globalising when it meets three conditions. Firstly, when a high percentage of the total industry trade consists of import/export. A second qualifier would be established international supply chains based upon offshore production; and, thirdly, when crucial technology/R&D units are spread across the globe.

via ‘Aerospace, defence face hurdles in globalising’.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Hey Sony, Don’t Mess with Linux, Says PS3 Lawsuit – PCWorld

When Sony nerfed Linux support for the PS3 in early April, we knew it was only a matter of time before someone pulled a pack of lawyers out of their pocket.

Sure enough, a complaint (PDF courtesy IGN) filed in San Francisco federal court Tuesday is after class action status to wring compensation from Sony for yanking what some considered a quintessential feature of the company's flagship games console.

Unlike the Xbox 360 or Wii, the PS3 shipped in 2006 with an option to run alternative operating systems, including popular Linux distributions from Debian, Fedora, OpenSUSE and Ubuntu. The “slim” model refresh that appeared last September lost this feature, but Sony exempted older “fat” PS3s.

On April 1, PS3 firmware update 3.21 disabled the “Install Other OS” feature, ostensibly because Sony deemed it a hacker loophole. PS3 owners didn't have to install the update, but failing to do so locked them out of the PlayStation Network, playing newer gamers, viewing Blu-ray movies, and playing copyright-protected videos streamed off a media server. Not much of a choice, in other words.

The suit seeks to redress Sony’s downgrade, claiming that it’s “not only a breach of the sales contract…but it is also an unfair and deceptive business practice perpetrated on millions of unsuspecting consumers.”

“Sony knowingly and willingly accepted monetary benefits from Plaintiff and the Class, but Sony did not honor its obligations,” reads the complaint. “Rather, Sony benefited from the sales of PS3s with the Other OS function which it then forced purchasers to either disable or forgo other important PS3 functions.”

via Hey Sony, Don’t Mess with Linux, Says PS3 Lawsuit – PCWorld.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Gibson Dunn, Davis Polk Lead as HP Snags Palm | The American Lawyer

Image representing Hewlett-Packard as depicted...
Image via CrunchBase

Hewlett-Packard has swooped in and acquired Palm Inc. for $1.2 billion amid rampant speculation that Asian companies were the leading contenders to acquire the hand-held device maker, according to Bloomberg.

And for its final major deal, Palm turned to Davis Polk & Wardwell instead of its traditional deal counsel at Wilson Sonsini Goodrich & Rosati, a move our colleagues at The Recorder first reported on two weeks ago.

The switch isn’t that sudden, though, according to William Kelly, who led the Davis Polk team on the deal. The firm began doing work for Palm several years ago, at about the time that a management shake-up at the company saw Eric Benhamou leave his position as chair of the Palm board; Benhamou is close with Wilson chair Larry Sonsini, according to The Recorder, which helps explain why the company had turned to Wilson Sonsini for several of its prior landmark deals.

Not this time, says Kelly, whose relationship with Palm started when he answered an unexpected call from company executives. “I just answered my phone,” he says. “That’s always good business.” Davis Polk subsequently advised Palm on a December 2008 agreement with private equity firm Elevation Partners, which pumped $100 million into Palm and became the company’s lead investor, Kelly says.

Hewlett-Packard, represented in the Palm deal by Gibson, Dunn & Crutcher, has already secured Elevation Partners’ support for the acquisition, according to a source familiar with the matter. A team from Simpson, Thacher & Bartlett advised Elevation in those talks, the sources say. (For you U2 fans out there, Bono serves as a managing director for Elevation, and we can’t help but note that he’s wearing his trademark sunglasses even in the photograph used on his Elevation Web bio).

via Law.com – Gibson Dunn, Davis Polk Lead as HP Snags Palm.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

The Am Law 100 2010 — Gross Revenue: Baker & McKenzie Tops Skadden

The Am Law 100 2010 — Gross Revenue: Baker & McKenzie Tops Skadden

For the first Time since 1994, Baker & McKenzie surpassed Skadden, Arps, Slate, Meagher & Flom for the number one position on our gross revenue chart. As was the case last year, Baker and Skadden are the only two firms to gross more than $2 billion.

Eleven other firms had gross revenue exceeding $1 billion. Among them is K&L Gates which moved into this group for the first time. The year’s biggest increase in gross revenue–22.6 percent—was posted by Cozen O’ Connor. The biggest decline was Howrey‘s 16.2 percent drop, although that firm’s 2008 gross revenue had included a contingency award.

  1. Baker & McKenzie
  2. Skadden
  3. Latham & Watkins
  4. Jones Day
  5. Kirkland & Ellis

[continued] The Am Law 100 2010 — Gross Revenue: Baker & McKenzie Tops Skadden.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

The 2010 Am Law 100 – The American Lawyer

It could have been worse. That,s the best that can be said for the performance last year of The Am Law 100, the top-grossing law firms in the nation. Three of the four key categories we,ve measured for 25 years–gross revenue, head count, and revenue per lawyer–fell, while profits per equity partner (PPP) barely increased by 0.3 percent, or $3,463, to $1.26 million.

But on average, even the bad results weren’t nearly as dire as many firms had feared just a year ago.

THE CHARTS

Gross Revenue

For the first Time since 1994, Baker & McKenzie surpassed Skadden, Arps, Slate, Meagher & Flom for the number one position on our gross revenue chart.

Revenue Per Lawyer

The downward trend continued for Am Law 100 firms in 2009 as more than half posted drops in revenue per lawyer (RPL), our best measure of a firm,s financial health.

Profits Per Partner (Top Ten)

Sixteen Am law 100 firms had profits per partner (PPP) of $2 million or more in 2009, the same number as in 2008.

Compensation – All Partners (Top Ten)

The average pay for a firm’s entire partnership, both equity and nonequity; in 2009, 42 Am Law 100 firms posted declines in CAP.

Value Per Lawyer (Top Ten)

Value Per Lawyer ranks firms by how efficiently they generate profits. For the fifth year in a row, Wachtell, Lipton, Rosen & Katz tops our list.

via The Am Law 100 2010.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

UK data watchdog to quiz Google on Streetview Wi-Fi database • The Register

Sharp criticism of Google in Germany has today prompted the UK's privacy watchdog to quiz the firm over data its Street View cars have collected about Wi-Fi networks.

Officials from the Information Commissioner’s Office (ICO) will seek details and assurances about the practice.

A spokeswoman told The Register the ICO had been unaware the Street View fleet has been recording the MAC addresses and locations of Wi-Fi networks as they photograph national road netwoks – until its German counterpart launched an attack last week.

Peter Schaar, Germany’s Federal Commissioner for Data Protection, was quoted as saying he was “horrified” by the data gathering exercise and demanding the Wi-Fi database be deleted.

The ICO spokeswoman said British regulators are interested in how the data is being processed and used by Google. If the firm were collecting data on the security settings of Wi-Fi routers, she said, it would be asked to give assurances about what it might do with that information.

“If it’s just to tell you there's a cafe nearby – fine,” she added.

In Germany, concerns have centred on claims that a national database of Wi-Fi MAC addresses or network names could prove a boon to authorities tracking online activity. Similarly, easy look-up of encryption standards on Wi-Fi routers might be useful to investigators, or criminals.

via UK data watchdog to quiz Google on Streetview Wi-Fi database • The Register.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Goldman, Sachs & Co. and Fabrice Tourre | Securities and Exchange Commission

Seal of the U.S.
Image via Wikipedia

SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21489 / April 16, 2010

Securities and Exchange Commission v. Goldman, Sachs & Co. and Fabrice Tourre, 10 Civ. 3229 (BJ) (S.D.N.Y. filed April 16, 2010)

The SEC Charges Goldman Sachs With Fraud In Connection With The Structuring And Marketing of A Synthetic CDO

The Securities and Exchange Commission today filed securities fraud charges against Goldman, Sachs & Co. (“GS&Co”) and a GS&Co employee, Fabrice Tourre (“Tourre”), for making material misstatements and omissions in connection with a synthetic collateralized debt obligation (“CDO”) GS&Co structured and marketed to investors. This synthetic CDO, ABACUS 2007-AC1, was tied to the performance of subprime residential mortgage-backed securities (“RMBS“) and was structured and marketed in early 2007 when the United States housing market and the securities referencing it were beginning to show signs of distress. Synthetic CDOs like ABACUS 2007-AC1 contributed to the recent financial crisis by magnifying losses associated with the downturn in the United States housing market.

According to the Commission’s complaint, the marketing materials for ABACUS 2007-AC1 — including the term sheet, flip book and offering memorandum for the CDO — all represented that the reference portfolio of RMBS underlying the CDO was selected by ACA Management LLC (“ACA”), a third party with expertise in analyzing credit risk in RMBS. Undisclosed in the marketing materials and unbeknownst to investors, a large hedge fund, Paulson & Co. Inc. (“Paulson”), with economic interests directly adverse to investors in the ABACUS 2007-AC1 CDO played a significant role in the portfolio selection process. After participating in the selection of the reference portfolio, Paulson effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (“CDS”) with GS&Co to buy protection on specific layers of the ABACUS 2007-AC1 capital structure. Given its financial short interest, Paulson had an economic incentive to choose RMBS that it expected to experience credit events in the near future. GS&Co did not disclose Paulson’s adverse economic interest or its role in the portfolio selection process in the term sheet, flip book, offering memorandum or other marketing materials.

The Commission alleges that Tourre was principally responsible for ABACUS 2007-AC1. According to the Commission’s complaint, Tourre devised the transaction, prepared the marketing materials and communicated directly with investors. Tourre is alleged to have known of Paulson’s undisclosed short interest and its role in the collateral selection process. He is also alleged to have misled ACA into believing that Paulson invested approximately $200 million in the equity of ABACUS 2007-AC1 (a long position) and, accordingly, that Paulson’s interests in the collateral section process were aligned with ACA’s when in reality Paulson’s interests were sharply conflicting. The deal closed on April 26, 2007. Paulson paid GS&Co approximately $15 million for structuring and marketing ABACUS 2007-AC1. By October 24, 2007, 83% of the RMBS in the ABACUS 2007-AC1 portfolio had been downgraded and 17% was on negative watch. By January 29, 2008, 99% of the portfolio had allegedly been downgraded. Investors in the liabilities of ABACUS 2007-AC1 are alleged to have lost over $1 billion. Paulson’s opposite CDS positions yielded a profit of approximately $1 billion.

The Commission’s complaint, which was filed in the United States District Court for the Southern District of New York, charges GS&Co and Tourre with violations of Section 17(a) of the Securities Act of 1933, 15 U.S.C. §77q(a), Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. §78j(b) and Exchange Act Rule 10b-5, 17 C.F.R. §240.10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest and civil penalties from both defendants.

via Goldman, Sachs & Co. and Fabrice Tourre.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare

Israel bans imports of Apple’s iPad because of wireless disruption concerns – The China Post

Israel has banned imports of Apple Inc.&’s hottest new product, the iPad, citing concerns the powerful gadget’s wireless signals could disrupt other devices. Customs officials said Thursday they have already confiscated about 10 of the lightweight tablet computers since Israel announced the new regulations this week. The ban prevents anyone — even tourists — from bringing iPads into Israel until officials certify that they comply with local transmitter standards.

The U.S. Federal Communications Commission allows devices with Wi-Fi capability to broadcast at higher power levels than are allowed in Europe and Israel — meaning that the iPad’s stronger signal could throw off others’ wireless connections, Schubert said.

via Israel bans imports of Apple’s iPad because of wireless disruption concerns – The China Post.

LinkedInPinterestEvernoteWordPressBlogger PostEmailShare