Corporate Law

Lawyer: Sarbanes-Oxley Misused Against Me

A Greenwich, Conn., lawyer charged with destroying evidence under the Sarbanes-Oxley Act says he has a clear conscience. Prosecutors claim Philip Russell destroyed a computer containing child pornography, owned by the music director for a church he represented, the Greenwich Time reports. He has pleaded not guilty to destruction of…

May 7, 2007 4:40 PM CDT

No Docs, But Big-Name Lawyer OKs $200 Million

A renowned Chicago lawyer and former Illinois governor testified yesterday that he approved $200 million in payments as a corporate director and audit committee chair without documentary support. In his second day of cross-examination yesterday in the trial of press baron Conrad Black and other executives accused of participating in…

May 3, 2007 7:42 PM CDT

Tort Reform: Chamber vs. Trial Lawyers

Battling press releases today between two arch-enemies in the legal arena contend that the U.S. does, and does not, have a legal system in critical need of so-called tort reform. Weighing in on the side of further restrictions on the right of individual Americans to sue big corporations for legal…

Apr 25, 2007 10:42 PM CDT

Surprise Statement, Gutsy Defense in Apple Case

The Wall Street Journal (sub. req.) reports that a public statement by Apple’s former CFO could complicate matters for Apple CEO Steve Jobs. Fred Anderson says he warned Jobs that the company would have to take a charge against earnings if it backdated stock options. The Securities and Exchange Commission…

Apr 25, 2007 12:46 PM CDT

Battle of CEOs Over Warner Music Deal

The former CEO of Simon & Schuster has sued Edgar Bronfman Jr. saying the businessman backed out of an oral deal to pay him for help negotiating the $2.6 billion purchase of Warner Music Group, the Los Angeles Times Reports. Richard Snyder seeks $100 million in the suit filed yesterday…

Apr 24, 2007 5:52 PM CDT

‘Girls Gone Wild’ Founder Gets 35 Days in Jail

The founder of the “Girls Gone Wild” video company pleaded guilty to criminal contempt yesterday for failing to meet a settlement deadline. Joe Francis was fined $5,000 and sentenced to 35 days in jail, the Los Angeles Times reports. Francis wiped away tears as he apologized to the court for…

Apr 24, 2007 5:13 PM CDT

SEC Options Backdating Suit for Ex-Apple GC?

A former general counsel for Apple Inc. may be sued by the Securities and Exchange Commission for her role in allegedly backdating two stock options grants to company executives, according to her counsel, the Bloomberg news service reports. The SEC will likely sue Nancy Heinen this week, according to her…

Apr 23, 2007 5:53 PM CDT

Directors’ Settlement a Probable Record

A $41.5 million settlement finalized last month may be one of the largest to require outside directors to dig into their own pockets, the Wall Street Journal reports. (Sub. req.) The agreement settles a lawsuit brought by a bankruptcy trustee for shoe company Just for Feet Inc., which sought court…

Apr 23, 2007 2:03 PM CDT

Activist’s Wife Blames Yahoo for Husband’s Torture

Yahoo has effectively disclosed the identities of some Chinese users of its e-mail service to the Chinese government, leading to their imprisonment and even torture in that country, according to a lawsuit filed by international human rights activists yesterday. The 34-page suit, filed in federal court in San Francisco, contends…

Apr 19, 2007 5:16 PM CDT

Motorola Agrees to $190 Million Settlement

Motorola Inc. has agreed to a $190 million settlement in a class action lawsuit filed by shareholders. The suit had claimed the communications company failed to disclose $2.7 billion in loans to two Turkish telecom companies, the New Jersey Law Journal reports. It also claimed Motorola, based in suburban Chicago,…

Apr 18, 2007 12:31 PM CDT

General Counsel Without Proper License Replaced

A general counsel of an Ohio company who did not have the proper law license has been replaced, according to Corporate Counsel. A statement by Dana Corp. of Toledo said Michael DeBacker will continue with the company in another capacity. “The company recently became aware that Mr. DeBacker was not…

Apr 18, 2007 12:18 PM CDT

Groups Use Tax Code to Sidestep Election Law

Seeking to avoid donor disclosure requirements under federal election law, a number of nonprofit political groups are looking to federal tax law. By setting up as a slightly different kind of nonprofit organization, they can avoid disclosing the names of donors, except to the Internal Revenue Service. As the Washington…

Apr 17, 2007 5:41 PM CDT

Suit Proceeds Against NYSE and its CEO

A New York judge has refused to dismiss a lawsuit against the New York Stock Exchange and its CEO. Justice Charles E. Ramos ruled the suit can proceed against CEO John Thain for fraud and breach of fiduciary duty, and the exchange can be held vicariously liable for Thain’s actions,…

Apr 13, 2007 12:28 PM CDT

Qwest Deliberations Likely Today

Jury deliberations are expected to begin today in the insider trading trial of Joseph P. Nacchio, the former chief executive of Qwest International. Yesterday, federal prosecutor Colleen Conry said Nacchio talked about the company’s good financial picture while selling stock options as fast as possible, the New York Times reports.…

Apr 11, 2007 1:52 PM CDT

$100 Million Sanction Sought Against Motorola

The lawyer for a defunct technology company that sued Motorola for stealing trade secrets is seeking a $100 million sanction and $93 million in attorney fees. The plaintiffs’ lawyer, Willie Gary of Stuart, Fla., says sanctions should be imposed because Motorola violated a court order for sequestering witnesses, the Daily…

Apr 11, 2007 12:56 PM CDT