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NY court: Case against ex-AIG execs can continue
Law Firm News |
2016/06/02 10:31
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New York's attorney general can continue his legal effort to bar two former American International Group Inc. executives from the securities industry and forfeit any improperly gained profits, the state's highest court ruled Thursday.
The Court of Appeals for the second time refused to dismiss the lawsuit originally filed in 2005 by then-Attorney General Eliot Spitzer, ruling it should go to trial.
The suit claims ex-AIG chief executive Maurice "Hank" Greenberg and ex-chief financial officer Howard Smith had engaged in fraudulent reinsurance transactions to conceal from investors a deteriorating financial condition.
AIG itself resolved state charges as part of a $1.64 billion agreement with regulators in 2006. The insurance giant was bailed out by the federal government in the 2008 financial crisis.
Greenberg and Smith settled related federal Securities and Exchange Commission complaints without admitting wrongdoing in 2009.
Their attorneys challenged the state lawsuit, arguing that New York's Martin Act against securities fraud authorizes neither a permanent industry ban nor disgorgement of profits, and that releases from other settlements barred further financial forfeit.
"As we have previously stated, in an appropriate case, disgorgement may be an available 'equitable remedy distinct from restitution' under the state's anti-fraud legislation," Judge Leslie Stein wrote. "Moreover, as with the attorney general's claim for an injunction, issues of fact exist which prevent us from concluding, as a matter of law that disgorgement is unwarranted."
The court rejected another dismissal motion two years ago, concluding there was sufficient fraud evidence for trial. |
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Kansas Supreme Court reviews lawmakers' school aid changes
Court News |
2016/05/11 13:05
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Attorneys for Kansas hope to persuade the state Supreme Court that recent changes in the state's education funding system are fair enough to poor districts that the justices can abandon a threat to shut down public schools.
The high court was set to hear arguments Tuesday on whether the technical changes legislators made earlier this year comply with a February order from the justices to improve funding for poor school districts. The changes leave most districts' aid unchanged and don't boost overall education spending.
Lawyers for four school districts suing the state contend legislators' work shouldn't satisfy the Supreme Court because aid to all poor districts didn't increase. But the state's attorneys have submitted more than 950 pages of documents in an attempt to show that lawmakers' solution was in keeping with past court decisions.
"I'm hopeful the Supreme Court's going to take what the Legislature has done and say it's an appropriate answer," Republican Gov. Sam Brownback told reporters ahead of the arguments.
The Dodge City, Hutchinson, Wichita and Kansas City, Kansas, districts sued the state in 2010, arguing that Kansas spends too little on its schools and unfairly distributes the aid it does provide, more than $4 billion a year.
The court concluded in February that lawmakers hadn't done enough to ensure that poor districts keep up with wealthy ones. The justices ordered lawmakers to fix the problems by June 30 or face having schools shut down.
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Planned Parenthood shooting defendant returning to court
Court News |
2016/05/11 13:04
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A man who admitted killing three people at a Colorado Planned Parenthood clinic is returning to court for the continuation of a hearing on whether he's mentally competent to stand trial.
A psychologist who examined 57-year-old Robert Dear is scheduled to testify Tuesday.
Dear is charged with 179 counts including murder, attempted murder and assault in the Nov. 27 shootings at the Colorado Springs clinic. Nine people were injured in the attack.
In court, he has declared himself a "warrior for the babies" and said he was guilty.
The hearing started last month, when two psychologists testified that Dear isn't competent to stand trial.
If the judge agrees, Dear's case would be put on hold while he undergoes treatment at a state psychiatric hospital intended to restore him to competency.
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El Salvador court takes up case on ex-president's finances
Legal Line News |
2016/05/10 13:05
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A court in El Salvador has agreed to consider a civil case against former President Mauricio Funes, his wife and one of his sons for possible illicit enrichment.
The San Salvador court press office said Saturday that several government institutions have been ordered to hand over information related to the family's finances, properties and businesses.
Under scrutiny is some $728,000 in unexplained income and expenditures. Funes has 20 days to respond to present evidence in his defense.
The former president has criticized the allegations in the past. He said some of the Supreme Court justices who voted to order the lower court to open the case in February had previously attacked his government while sitting on the Constitutional Court. |
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