Corporate Compliance

Prosecutors Bringing More Foreign Bribery Cases

Prosecutors and securities officials are increasingly targeting companies for paying bribes to obtain foreign contracts, bringing more than double the number of cases this year than the number filed in 2004. The government has already collected more than $100 million in penalties this year, the Washington Post reports. Prosecutions are…

Dec 5, 2007 4:17 PM CST

Auditors’ Quest for Legal Documents Could Risk Exposure

Auditors complying with post-Enron laws are increasingly asking for legal documents, putting the material at risk for disclosure in lawsuits. When confidential documents are shown to outside parties, they are no longer protected from disclosure by the attorney-client privilege, the New York Times explains. Only around 30 states protect the…

Nov 16, 2007 4:37 PM CST

Kansas Utility Owes CEO $2.46M in Defense Costs

Echoing a similar holding by a federal judge concerning another company executive, a special master in Kansas state court has found that a utility company wrongly refused to pay $2.46 million in legal fees to defend its former chairman and CEO in a criminal fraud case. The utility, Westar Energy…

Nov 15, 2007 7:17 PM CST

Are New U.S. Accounting Rules Bad News for Banks?

The last few months have not been good ones for the global banking industry, as rapidly rising mortgage defaults sparked a credit crisis. But the situation may get even worse before it gets better. And, if so, new U.S. accounting standards may be one big reason why, a British columnist…

Nov 12, 2007 8:10 PM CST

William Lerach Goes Down Fighting With WaPo Commentary

Securities class-action lawyer William Lerach, who pleaded guilty to paying kickbacks to lead plaintiffs, takes aim at sweet deals for corporate CEOs who lose shareholder money in a commentary published in the Washington Post. Lerach complains that he is being held “accountable for overzealously pursuing these corporate scam artists” while…

Nov 12, 2007 7:11 PM CST

‘Attorney at Blah’: JD Earns Extra $20/Hour in Doc Review

CORRECTED: The job is similar, but the pay is different: temp work, in something akin to document review, without a law degree, is dull, thankless work that earns $10 an hour. With a juris doctor degree and a bar admission, temp work brings in $35 an hour–enough to earn a…

Nov 9, 2007 10:44 PM CST

Insurance Brokerage: Possible Industry Bribery Issues

An insurance brokerage says it is receiving inquiries from federal investigators about possible bribery issues. And it doesn’t appear that Aon Corp. is the only such company being queried, reports Bloomberg. Aon has reportedly hired an unspecified law firm to look into the matter and make sure it is in…

Nov 9, 2007 9:30 PM CST

N.Y. Mortgage Appraisal Probe Spotlights Fannie Mae & Freddie Mac

Updated: New York’s top law enforcement officer obviously isn’t afraid to take on the big guys. Having filed suit last week against one of the nation’s biggest mortgage lenders over an alleged scheme to promote inflated appraisals, in alleged violation of lending regulations, state Attorney General Andrew Cuomo is now…

Nov 7, 2007 9:12 PM CST

BigLaw Relaxing Bank Suit Standards?

As the subprime mortgage meltdown and a resulting global credit crunch have created a surge of litigation against lenders, some of the world’s major law firms are caught in a quandary. Traditionally, they have represented banks. But now that litigating against banks is a hot practice area, many are relaxing,…

Nov 5, 2007 11:18 PM CST

Big Legal Bill for Exec’s Backdating Defense

Major corporations commonly agree to indemnify officers and directors for legal costs, should they be sued or prosecuted as a result of their work. Otherwise, even CEOs often would find it difficult or impossible to pay the cost of a standard defense. However, the defense price tag can be noteworthy…

Oct 11, 2007 7:56 PM CDT

EU Tiptoes Toward Mass Torts

Class actions as we know them in the U.S. are virtually unheard of in Europe, and corporations located in the EU would like to keep it that way. Hence, a proposal by the European Commission to allow individuals to hold EU corporations accountable in court for price-fixing and defective products,…

Oct 10, 2007 12:21 AM CDT

Exploding OT Claims for Many Employers

Wage-and-hour class action claims brought over unpaid overtime are a hot practice area—and, as today’s $62 million judgment against Wal-Mart illustrates, one that can be extremely costly to employers. “Multiplaintiff wage-and-hour lawsuits pose the greatest employment litigation threat to American businesses today,” says Seyfarth Shaw, a law firm known for…

Oct 3, 2007 11:54 PM CDT

Lawyer’s Knowledge Used Against Him

Connecticut lawyer Philip Russell has a lot of expertise in child pornography cases—but it may hurt his defense in a prosecution for destroying evidence. Prosecutors say Russell should have given the FBI his client’s computer containing child pornography instead of destroying it. He is accused of obstructing justice under the…

Sep 26, 2007 2:18 PM CDT

Indicted Milberg Founder Vows to Fight

Updated: Indicted today after years of investigation, the 72-year-old co-founder of what was once unquestionably the nation’s most prominent plaintiffs securities firm is vowing to fight the federal case that has already felled three former rainmakers at Milberg Weiss and put the future of the firm at risk. Melvyn Weiss…

Sep 21, 2007 2:08 AM CDT

Cadwalader Boosts Bankruptcy Practice

In an ongoing effort to amp up its financial restructuring practice in the U.S. and abroad, Cadwalader, Wickersham & Taft has hired another six attorneys this week and plans to add more in London. That follows the firm’s addition of more than a dozen lawyers to the practice area earlier…

Sep 20, 2007 11:37 PM CDT