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Court rules against HealthSouth in auditor dispute
Headline Court News |
2014/06/16 14:41
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The Alabama Supreme Court ruled against Birmingham-based HealthSouth Corp. on Friday in a legal dispute linked to the accounting fraud that rocked the rehabilitation company more than a decade ago.
The justices rejected an appeal filed by HealthSouth in a legal fight involving its one-time auditing company, Ernst & Young.
Shareholders filed a complaint on behalf of HealthSouth blaming Ernst & Young for failing to detect the $2.6 billion accounting scam that occurred under former CEO Richard Scrushy, who was acquitted of criminal charges in 2005. A civil court later held him responsible for the swindle.
An arbitration panel ruled against HealthSouth in a complaint aimed at making Ernst & Young share responsibility for the fraud, and HealthSouth appealed to Jefferson County Circuit Court. That court sided with the auditor, and HealthSouth appealed again.
The Supreme Court, in a decision written by Justice James Main, upheld the ruling against HealthSouth. The justices said there was no evidence the arbitration decision against HealthSouth was fundamentally unfair or that the panel engaged in any misconduct.
Evidence showed HealthSouth inflated its earnings by some $2.6 billion from the late 1990s through the early 2000s, when the scheme was uncovered. Fifteen HealthSouth employees pleaded guilty and jurors convicted one other.
Scrushy blamed everything on underlings but later served time in federal prison after being convicted in a bribery scheme involving former Gov. Don Siegelman, who remains in prison in Oakdale, La.
Scrushy, who maintains his innocence to all charges, now lives in Texas and sometimes lectures about corporate fraud. |
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Court sides with EPA on not setting new standard
Headline Court News |
2014/05/27 13:38
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A federal appeals court ruled Tuesday that the Environmental Protection Agency was justified in not establishing a new air quality standard for acid rain.
The EPA decided in 2012 after a lengthy rulemaking proceeding that it needed further scientific study before it could set a new air quality standard for oxides of nitrogen and oxides of sulfur.
Environmental groups claimed that EPA's failure to issue a new multi-pollutant rule violated the Clean Air Act.
In a 3-0 decision, the U.S. Court of Appeals for the District of Columbia Circuit said it was turning aside the environmental groups' petition for judicial review because the EPA could not form a reasoned judgment as the Clean Air Act requires.
"EPA did not simply leave in place the old standard," said appeals judge A. William Randolph. "Although it did not promulgate a new standard, it identified the data gaps that prevented it from doing so and initiated a data-collection program designed precisely to fill those gaps and facilitate future regulation."
Once EPA found that the two current standards were inadequate with respect to acid rain, the agency sought to determine what new multi-pollutant standard would be appropriate, the judges said. EPA recognized that a new national ambient air quality standard would necessarily be more complex than those set historically for just one pollutant, the court wrote. |
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Supreme Court justice suspends Missouri execution
Headline Court News |
2014/05/23 12:58
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U.S. Supreme Court Justice Samuel Alito issued an order late Tuesday suspending the planned execution of a Missouri inmate with a little more than an hour to spare before the inmate's scheduled lethal injection.
Alito, who handles emergency matters for Missouri and other states covered by the 8th U.S. Circuit Court of Appeals, didn't explain why he issued the order suspending Russell Bucklew's execution, which had been scheduled for 12:01 a.m. Wednesday. But Missouri Attorney General Chris Koster issued a statement saying his office understands the full Supreme Court would consider Bucklew's requests on Wednesday.
Under Missouri law, the state has 24 hours to carry out a death warrant, meaning it could still execute Bucklew anytime on Wednesday if the high court rejects his appeals.
Alito's order came shortly after the full 8th Circuit court lifted a stay granted to Bucklew hours earlier by a three-judge panel of that court.
Bucklew, who was sentenced to death for killing a southeast Missouri man in 1996, suffers from a rare medical condition that his attorneys claim could cause him great pain during the execution process. |
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Wisconsin kidnapping suspect appears in court
Headline Court News |
2014/05/20 11:29
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The woman charged with kidnapping her 5-day-old nephew from Wisconsin and leaving him overnight in freezing temperatures outside an Iowa gas station said in federal court that she asked for a lawyer but wasn't granted one during FBI questioning.
Kristen Smith, 32, made her first statements Thursday since pleading not guilty to taking Kayden Powell from a Town of Beloit home where she was staying when she left in the middle of the night for her home in Aurora, Colorado, in February.
Hours later, Iowa police arrested Smith for an outstanding Texas warrant and took her to the county jail for processing. While there, FBI agents questioned her about the missing newborn and conducted a polygraph test. Attorneys disagreed Thursday about whether interviews with police and the FBI should be used in an eventual trial.
Defense attorney Matt Noel said none of Smith's interviews the first day with FBI agent James McMillan should be allowed in the courtroom because the FBI didn't read Smith her rights. Noel also said Smith was coerced into providing incriminating evidence without an attorney, and that Smith was forced into taking the polygraph test, which agents say showed Smith was being deceitful.
Assistant U.S. Attorney Julie Pfluger said officers read Smith her rights before her arrest and later during questioning and the polygraph test. She also showed video clips of McMillan interviewing Smith.
The clips showed that Smith was upbeat and cooperative early on, and that she permitted agents to search her car and phone. McMillan told Smith her behavior was suspicious after she gave a wrong password to unlock the phone. |
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GM to ask bankruptcy court for lawsuit protection
Headline Court News |
2014/04/17 13:53
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General Motors revealed in court filings late Tuesday that it will soon ask a federal bankruptcy judge to shield the company from legal claims for conduct that occurred before its 2009 bankruptcy.
The automaker's strategy is in a motion filed in a Corpus Christi, Texas, federal court case, and in other cases across the nation that involve the defective ignition switches that have led GM to recall 2.6 million small cars.
The motion asks U.S. District Judge Nelva Gonzales Ramos to delay action on the lawsuit until the bankruptcy court rules and other federal courts decide if the case should be combined with other lawsuits. But GM says it's not asking to halt action on a motion to force GM to tell customers not to drive their cars that are being recalled.
GM has said at least 13 deaths have been linked to the switch problem. The switch can unexpectedly slip out of the "run" position, shutting down the engine, knocking out power-assisted steering and power brakes, and disabling the air bags. GM admits knowing about the problem for at least a decade, but it didn't start recalling the cars, including Chevrolet Cobalts and Saturn Ions, until February.
The company's motion says GM will ask the bankruptcy court in New York to enforce an order made during the 2009 bankruptcy case that split GM into a new company and an old company. Claims from before the bankruptcy would go to "Old GM," called Motors Liquidation Co., while claims after the bankruptcy would go to the new General Motors Co. |
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Appeals court finds EPA carbon decision reasonable
Headline Court News |
2014/04/15 13:30
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A federal appeals court says the Environmental Protection Agency acted reasonably in deciding not to change the primary air quality standard for carbon monoxide.
Three environmental and wildlife organizations want the public health standard toughened.
But the appeals court says in a 3-0 ruling that the private groups cannot challenge the lack of a secondary air quality standard for carbon monoxide. The EPA decided not to have one, based on a finding that the connection between carbon monoxide and climate change was tenuous.
The court ruled Friday that the groups failed to show that the absence of a secondary standard would worsen global warming.
Carbon monoxide is an odorless, colorless gas in motor vehicle exhaust. |
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U.S. Supreme Court voids overall contribution limits
Headline Court News |
2014/04/03 14:16
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The Supreme Court struck down limits today in federal law on the overall campaign contributions the biggest individual donors may make to candidates, political parties and political action committees.
The justices said in a 5-4 vote that Americans have a right to give the legal maximum to candidates for Congress and president, as well as to parties and PACs, without worrying that they will violate the law when they bump up against a limit on all contributions, set at $123,200 for 2013 and 2014. That includes a separate $48,600 cap on contributions to candidates.
But their decision does not undermine limits on individual contributions to candidates for president or Congress, now $2,600 an election.
Chief Justice John Roberts announced the decision, which split the court's liberal and conservative justices. Roberts said the aggregate limits do not act to prevent corruption, the rationale the court has upheld as justifying contribution limits.
The overall limits "intrude without justification on a citizen's ability to exercise 'the most fundamental First Amendment activities,'" Roberts said, quoting from the court's seminal 1976 campaign finance ruling in Buckley v. Valeo.
Justice Clarence Thomas agreed with the outcome of the case, but wrote separately to say that he would have gone further and wiped away all contribution limits. |
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