- Damning Lehman Report Released
The N.Y. Times today details the 2,200-page report by Lehman Bros. examiner Anton Valukas, who found that the bank engaged in “materially misleading” accounting tactics to hide its debts. Valukas, the chairman of Jenner & Block and an experienced litigator, was appointed examiner by the U.S. Trustee to identify the causes of the bankruptcy, the largest in history. According to Valukas’ report, Lehman moved $50 billion in bad assets off its books in its final months, and Lehman executives and the bank’s accountants at Ernst & Young knew about it. The reports says that former Lehman leader Richard Fuld is “at least grossly negligent.”
Much of the document is devoted to Lehman’s accounting schemes known as “Repo 105,” which were first used in 2001 to shuffle massive amounts off the books to reduce debt levels. Ernst & Young issued a statement insisting that Lehman’s statements “were in accordance Generally Accepted Accounting Principles (GAAP).” Fuld lawyer Patricia Hynes said in a statement that her client didn’t know what the accounting tactics were. There have been no criminal charges yet in the Lehman matter. The report should provide assistance to civil claimants, as Valukas describes the asset manipulations as "actionable."
|
|
| 07:06 AM Mar 12, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Another Mistrial
For the second time, the case against Harold Turner has ended in a mistrial, with the defense claiming victory. In January, a federal jury in Chicago couldn’t agree on whether the controversial online radio shock jock should be found guilty for threatening posts about three federal appellate judges, including the prominent Richard Posner, who had upheld a Chicago gun ban. This week, a jury in Brooklyn (to where the case was moved) also failed to reach a unanimous verdict. Unlike the first trial, the three judges from the 7th U.S. Circuit Court of Appeals testified that they felt threatened. The jurors spent about 2-½ days deliberating after four days of trial. The prosecutors are currently weighing whether to pursue a third trial.
Turner’s team argued that he was a former FBI asset and that his handlers had encouraged him to post racist and hateful information in order to draw out extremist groups. The New York Law Journal story has some interesting tidbits on the defense lawyers, whom turner apparently wants to fire for overcharging him. One is Michael Orozco of Bailey & Orozco in Newark, N.J., who was born in Puerto Rico, the other is Chicago solo Nishay Kumar Sanan, who is Indian. Sanan handled a very similar case a few years back, U.S. v. White, successfully defending a white supremacist who made online threats. The appeal of that case came before a 7th Circuit panel featuring Posner. However, when on the stand during the Turner trial, Posner told Sanan he didn't remember meeting him during the previous case.
|
|
| 07:40 AM Mar 11, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- NY Governor Hires Ted Wells
It comes as little surprise that New York’s increasingly embattled governor, David Paterson, has hired perennial Lawdragon 500 star Theodore Wells, the NY Times reports. (Note: The next Lawdragon 500 guide comes out at the end of March.) Wells, the co-chair of the litigation group at Paul, Weiss, Rifkind, Wharton & Garrison, represented former Gov. Eliot Spitzer during the infamous prostitution-ring investigation. Spitzer was never charged by federal prosecutions. Now, Paterson is facing an investigation by New York Attorney General Andrew Cuomo (another Lawdragon 500 from last year) into whether the governor or others of his administration put pressure on a woman to keep quiet about domestic-violence allegations against a Paterson aide. Paterson’s communications director Peter E. Kauffmann resigned Thursday after being questioned for several hours by Cuomo’s office.
Wells, as we’ve reported over the years, is best known for his criminal defense work for the likes of Scooter Libby and former U.S. Senator from New Jersey Robert Torricelli. However, he is equally sought after for civil cases by the likes of Citigroup and AIG.
|
|
| 07:40 AM Mar 5, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Discouraging Downward Trend
American Lawyer’s annual Diversity Scorecard revealed that the proportion of attorneys of color at large law firms fell last year, the first time the overall percentage dropped since Amlaw launched the editorial project nine years ago. The number jumped from less than 10 percent in 2000 to 13.9 percent for 2008, then fell in 2009 to 13.4. percent. The scorecard gets its data from about 200 big firms. The data confirmed fears by many in the industry that the massive layoffs of the past few years would have this effect. African American attorneys lost the most ground. A disturbing conclusion by Amlaw: “Almost one in six African-American nonpartners left the surveyed firms in the space of a year without being replaced.” Diversity experts say that minority lawyers are more likely to be vulnerable due to low workloads, and that cut backs in recruitment efforts also likely played a role.
The article says that it may be hard to reverse the trend, given that first-year classes will remain small and that fewer African-Americans and Mexican-Americans are starting law school. At the same time, clients are likely to continue to insist on improved diversity. You can check out the chart to get the data on all the firms who participated. Wilson Sonsini kept its top spot as the most diverse firm. While most firms saw their minority percentages decrease, a few firms, including Chadbourne & Parke and White & Case (both of which had layoffs), saw their percentages increase.
|
|
| 11:54 AM Mar 2, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Judges May Testify
Judges from the 7th U.S. Circuit Court of Appeals in Chicago may testify in the criminal case against Harold “Hal” Turner, who is accused of encouraging people to kill the judges, the National Law Journal reports. One of them is perennial Lawdragon 500 (and present Finalists) member Richard Posner, one of the most renowned and prolific judges of our time. Posner and fellow judges Chief Judge Frank Easterbrook and Judge William Bauer upheld a Chicago handgun ban, which led Turner to post Internet messages saying that the judges were traitors and should be killed. He also posted addresses and photos of the judges. Turner says he was exercising his First Amendment rights, while federal prosecutors contend that the defendant crossed the line and that the threatening speech is not protected.
The case ended in a mistrial in Chicago federal court last December, and has since been moved to Brooklyn, where it will start this coming week. Interestingly, the NLJ story notes that Turner’s lawyer will present evidence that Turner was a paid FBI informant who provided information about extremist groups.
|
|
| 04:02 PM Feb 26, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Class Actions Mount for Toyota
The legal expenses and challenges facing Toyota continue to accumulate at a staggering rate, with a range of estimates coming in over the amount of claims facing the troubled carmaker. A recent Financial Times story, attributing Northeastern University professor Tim Howard (a lead lawyer on the plaintiffs' side), puts the current estimate at 44 class-action lawsuits. The U.S. District Court in San Diego is expected to hold a hearing on a possible consolidation strategy for the 40-plus class actions on March 25. These suits do not include a vast amount of individual personal injury claims related to alleged car defects. It’s also unclear whether the 40-plus estimate includes federal securities lawsuits, such as the suit filed by Coughlin Stoia.
Numerous outlets also are reporting on the U.S. House’s decision to subpoena former Toyota lawyer Dimitrios Biller, who headed the corporate team that defended rollover lawsuits. Biller claims he has lots of documents showing that Toyota systemically hid evidence in litigation. “They think our laws don’t apply for them,” Biller told Reuters.
|
|
| 08:08 AM Feb 19, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Sept. 11 Claims May Settle
The New York Law Journal reported Friday that the massive amount of claims – nearly 10,000 lawsuits – resulting from the 9/11 medical/rescue response and clean-up of the World Trade Center site may be approaching a settlement. U.S. Judge Alvin K. Hellerstein disclosed the possible deal at a Jan. 21 hearing with plaintiff and defense counsel. There is now a 74-page draft settlement, though no word yet on the total dollar amount being discussed.
Injured plaintiffs are suing the City of New York, Port Authority and many contractors for allegedly failing to take measures that could have prevented toxic fumes at the site causing respiratory illnesses and cancers. More than half the claims are being brought by police officers and firefighters. With a Feb. 16 motions deadline looming, the lead lawyer for the city, James Tyrrell of Patton Boggs, described the case as “one of the most active litigations in the 35 years I've practiced law that I have ever been involved in."
|
|
| 02:26 PM Feb 5, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Gay Marriage Trial Wraps Up
Lawdragon continues its posting of the transcripts from the same-sex marriage trial in San Francisco federal court, here with Day 10, Day 11 and Day 12. Transcripts from earlier days can be found below. Tuesday’s proceedings featured the testimony of David Blankenhorn, the founder of the Institute for American Values, an expert witness for the defense of the gay-marriage ban who said that gay marriages would weaken the institution and lead to “more public consideration of polygamy,” as recounted by the L.A. Times. The San Jose Mercury News story described the interaction on cross-examination between Blankenhorn and plaintiffs’ lawyer David Boies as “openly bitter,” with Blankenhorn refusing to limit himself to “yes” or “no” answers when prompted. Boies challenged Blankenhorn’s expertise (he is not affialiated with any university) and got the witness to admit he didn’t know of a study that showed children of gay parents were worse off than those of straight parents.
Both sides expressed confidence after the proceedings concluded Wednesday. According to the NY Times article, U.S. District Judge Vaughn Walker is going to pause the trial for several weeks in order to review all of the evidence and additional briefs. Closing arguments could happen in March.
|
|
| 08:27 AM Jan 27, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- No Retirement for Legend
No one would have blamed Robert M. Morgenthau for finally deciding to retire. After all, he is 90 years old, and he just finished a 35-year run as the district attorney for Manhattan. But Morgenthau instead has joined the powerhouse firm of Wachtell, Lipton, Rosen & Katz. He had reporters over to his new office on the 31st floor of West 52nd St. yesterday. His new space was estimated by the Times City Room blog to be about a third of the size of his office as DA. Corporate partner and Lawdragon 500 member Daniel Neff, who also is co-chairman of the executive committee, explained the acquisition this way: “He’s got a remarkable wealth of experience, contacts and judgment. We will just see how it goes.” Morgenthau told reporters this was his third time in private practice, with the last time being in 1974.
Those of you following the same-sex marriage trial in San Francisco federal court can read Day 7 of the transcripts, in which we learned about the Mormon church’s involvement in the successful campaign behind Proposition 8, and Day 8.
|
|
| 07:45 AM Jan 21, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- San Diego Mayor Testifies
Tuesday’s proceedings in the same-sex marriage trial in San Francisco federal court involved a good deal of emotion thanks to the testimony of Jerry Sanders, the mayor of San Diego. Sanders is a conservative Republican who once opposed gay marriage, but he changed his mind after learning that is daughter is a lesbian. You can read his testimony in Day 6 of the transcripts, and you can find links below to transcripts of the first five days. "My daughter deserves the same opportunity to have a wedding in front of family, friends and co-workers," Sanders said during his testimony for the plaintiffs seeking to overturn California’s Proposition 8. Defenders of the ban have said that such viewpoints are irrelevant.
|
|
| 09:02 AM Jan 20, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Same-Sex Marriage Transcripts
Our attendance at the first day of trial over the legality of California’s Proposition 8, which bans gay marriages in the state, revealed to us what an important and completely fascinating trial this will be. As a result, we have posted the trial transcripts of Day 1, Day 2, Day 3, Day 4 and Day 5. Though long, the statements and testimony of Perry vs. Schwarzenegger make for great reading. Taking center stage today has been Yale University history professor George Chauncey, who testified on direct examination that gays and lesbians have been a “despised category” throughout U.S. history, which you can also read about in trial updates provided by the L.A. Times. He testified on cross-examination, however, that gays now enjoy much more support and acceptance. The first expert witness for the plaintiffs was Nancy Cott, a marriage historian at Harvard.
|
|
| 11:58 AM Jan 13, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Historic Trial Starts This Week
The federal trial over California’s Proposition 8, which bans gay marriage in the state, begins today in San Francisco federal court before U.S. District Judge Vaughn R. Walker. As the L.A. Times story notes, unlike other gay-marriage disputes, this will be the first to involve witness testimony on a wide range of contentious issues related to “the nature of marriage and homosexuality.” Challengers contend that the Prop. 8 ban violates federal equal-protection and due-process guarantees.
The litigation, Perry vs. Schwarzenegger, has drawn a lot of attention for the legal advocates involved. David Boies and Ted Olson – who opposed each other in the Bush v. Gore election dispute – have teamed up to represent challengers of the ban. Boies said in the story that he expects the case to reach the U.S. Supreme Court in 2011. Speaking of the high court, the justices ruled early Monday that Judge Walker could not allow video coverage of the trial on YouTube. Attorneys for Prop. 8 supporters, in an emergency appeal to the U.S. Supreme Court, argued that their witnesses would be subjected to harassment.
Gay rights groups have tended to oppose the filing of the lawsuit, fearing a loss before the Supreme Court. Gov. Schwarzenegger and Attorney General Jerry Brown declined to defend the ballot measure, forcing Prop. 8 supporters to intervene and defend the ban. Attorney Andy Pugno will be the lead lawyer for Protect Marriage, a group of organizations opposed to gay marriage.
|
|
| 09:23 AM Jan 11, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Gibson Tops Litigation Honors
As we work to finalize the Lawdragon 500, the most elite distinction for individual lawyers (in our humble opinion), our editorial staff is interested in reading about other recognitions given in the legal industry. A major award has gone to Gibson Dunn & Crutcher as American Lawyer magazine’s “Litigation Department of the Year.” The firm’s litigation group won major victories for Dole Food Co., Wal-Mart and UPS, among many others, according to David Bario’s story explaining the selection. Wal-Mart executive vice president and former general counsel Thomas Mars says of Gibson Dunn, "We have never had a firm handle more high-profile, high-risk work and deliver such consistent, excellent results.” The firm has many star litigators in the Lawdragon 500 guides, perhaps the most famous being Ted Olson, a regular before the Supreme Court.
The finalists for the top prize were Kirkland & Ellis; O'Melveny & Myers; Paul, Weiss, Rifkind, Wharton & Garrison; Quinn Emanuel Urquhart Oliver & Hedges; Weil, Gotshal & Manges.
|
|
| 03:25 PM Jan 4, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Judge Annihilates Feds over Broadcom
And we don’t use the term "major indictment of the prosecution" lightly. It's a real testament not only to Judge Carney but also the fabulous U.S. system of justice, which is still the best in the world. Especially on days like this.
As Judge Carney noted the Broadcom defenders are true titans of the bar in every sense. Marmaro has long been considered the top dog in California’s white collar bar. Quiet in person, he is devastating in court and commands virtually unanimous acclaim and regard. We also need to note the work of Jack DiCanio, Marmaro’s longtime right hand. They earlier handled the defense of Brocade’s former CEO Greg Reyes.
Adjectives are nearly superfluous when it comes to Sullivan, who is DC’s top dog and a master of the courtroom.
Greenberg, meanwhile, is a tough and rapier-like former federal prosecutor who made headlines for convicting ZZZZ Best swindler Barry Minkow. He is also the creme of the white collar bar, and a great one-two punch with Marmaro.
He had earlier allowed his client, Samueli, to plead guilty, a plea Carney rejected.
Also in court today were a cadre of lawyers who represented David Dull, Broadcom’s unindicted former general counsel. They were led by Quinn Emanuel’s Jim Asperger (who was on the prosecution of Minkow with Greenberg in the day) and O’Melveny’s Seth Aronson.
Earning Carney’s contempt were Stolper, Robb Adkins, Greg Staples and George Cardona, who went out of his way to note he had not been closely involved.
Here are a few of the money quotes from the transcript:
“I find that the government has intimidated and improperly influenced the three witnesses critiical to Mr. Ruehle’s defense, the cumulative effect of which distorted the truth finding process and compromised the integrity of the trial,” Carney said, referring to Dull, Nancy Tullos, the former VP of Human Resources, and Dr. Henry Samueli, the co-founder and former Chief Technical Officer. Among other things, the government met with Tullos 26 times and got her fired from her new job; and threatened to prosecute Dull if he testified consistently with his prior testimony to the SEC.
The judge found that “The lead prosecutor somehow forgot that truth is never negotiable.”
Carney reserved special ire for the government’s treating of Samueli, whom he called a brilliant engineer and man of incredible integrity about whom there was no evidence to indicate he did anything wrong. Despite that, the governmment interrogated him 30 times, falsely stated and improperly leaked to the media he was not cooperating, improperly pressured Broadcom to terminate him, and crafted an unconscionable plea agreement under which he would plead guilty to a crime he did not commit and pay a ‘ridiculous’ $12 million to the government. The government’s treatment of Samueli was “shameful and contrary to American values of decency and justice,” he said.
The judge strongly cautioned the government against going forward with the remaining drug charge against Nicholas, and condemned the U.S. Attorneys for threatening to subpoena his 13-year old son to testify against his father.
With respect to the stock option backdating claims, Carney said Apple and Microsoft were engaging in the same conduct as Broadcom.
“I have a solemn obligation to hold the government to the Constitution,” he said. “I’m dong nothing more and nothing less.”
We’re not going to give away the reaction of Greenberg, Sullivan and Marmaro, except to note that it involves not only a breathless lawyer and a 35th anniversary celebration of being admitted to the bar, but a reminder of the law’s majesty.
Carney, meanwhile, is a Bush appointee who is an Air Force veteran and a former UCLA football standout.
|
|
| 04:18 PM Dec 15, 2009 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
- Kirkland Taps Hammes to Replace Yannucci
Kirkland & Ellis has chosen dealmaker Jeffrey Hammes to replace longtime chairman Thomas Yannucci. Amlaw Daily also has the story.
Hammes specializes in private equity and splits his time between Chicago, where he started in 1985, and San Francisco and Palo Alto. He has served as vice chair of the firm’s 15-member management committee for the past year, in anticipation of his inheriting the top slot from Yannucci. Yannucci, a longtime Lawdragon 500 member and standout litigator in Washington, D.C., is approaching the age of 60, and Kirkland prohibits partners past that age from serving on the management committee.
|
|
| 08:23 AM Dec 9, 2009 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
