State Street Bank and Trust was sued by California Attorney General Jerry Brown's office today, accusing the Boston, Massachusetts bank of massive, "unconscionable" investment fraud by overcharging the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS) pension funds tens of millions of dollars

The lawsuit alleges that for eight years, starting in 2001, State Street "consistently 'marked-up'" Interbank Rate trade prices for buying and selling currency, rather than honoring its contract with CalPERS and CalSTRS to give the pension funds "the most competitive rates available for all FX transactions." According to California Attorney General Jerry Brown, State Street entered false trading records for CalPERS and CalSTRS accounts, and recorded fictional rates for trading foreign currency

How much were the California retirement funds overcharged during these eight years?

Those people hoping for a showdown before the US Supreme Court over the issue of gay marriage got one step closer to their wish today.

Judge Vaughn Walker, the chief judge for the US District Court for the Northern District of California, refused to dismiss a lawsuit challenging Proposition 8, California's ballot initiative that amended the state's constitution to prohibit same-sex marriage.

In a ruling delivered from the bench in San Francisco, Judge Walker stated that the case raised factual issues that required a trial, according to the San Francisco Chronicle.  Supporters of Prop. 8 had asked the judge to dismiss the suit, claiming that US Supreme Court precedent did not extend the right to marriage to homosexuals. 

Judge Walker rejected this argument, however, and stated that the Supreme Court had not limited the right to marry to certain groups.

This sets the stage for a showdown at trial, and then throughout the appellate process.  Neither side seems likely to back down, so you can expect them to take this one all the way to the top - assuming that the Supreme Court agrees to take the case.

See Also:
More Posts on Prop. 8 Lawsuits (CourtSide)

If you live in California, like I do, then you're used to the state's annual budget battles, which inevitably result in political name-calling, overdue budgets and a general sense that one of the world's largest economies and the nation's most populous state is doomed. 

Thanks to the Great Recession, this year's budget mess was particularly nasty, with state employees receiving IOUs instead of paychecks and the Governator waving giant knives around to get the people excited for massive cuts in social services and the closing of many of California's state parks.

Fortunately, California Supreme Court Chief Justice Ronald George revealed in a recent speech his ideas on what's dragging California's government down: the people of California.

Ah, there's nothing I love more than gossip blogs, celebrity sex tapes and lawsuits, especially when they're all wrapped up in one neat, tidy package.

That's exactly what I got with the news that Eric Dane and Rebecca Gayheart filed a $1m lawsuit yesterday against Gawker Media - the company that runs gawker.com and a number of other blogs - in the federal district court for Los Angeles. 

A California court approved a $29.5 million class-action settlement agreement (see below) between workers at Lowes Home Improvement stores and the company in a lawsuit that charged the company required employees to work "off the clock" -- i.e., without being paid -- before and after their normal shifts.

Lowe's denied all the allegations in the overtime lawsuit, and the settlement agreement states that the lawsuit's resolution "is neither a concession nor and admission" of any wrongdoing alleged by the workers in their overtime lawsuit.

Are you reading this at work?  If so, odds are you don't work for the California state courts, the nation's largest court system.

Except for a few workers who are being kept on for emergency situations, the California state courts were closed today for the first of ten furlough days imposed in order to make up for cuts in the court system's budget.  

According to Chris Brown's probation report (see below) revealed in court at his criminal sentencing yesterday, the R&B figure had a history of domestic violence incidents with his former girlfriend Rihanna, even before he pummeled and threatened to kill her while driving a rented Lamborghini in residential area of Los Angeles while on their way to the Grammy Awards in February this year.

Judge Patricia Schnegg sentenced Brown yesterday to five years of probation after he pleaded guilty to one count of felony assault in June, fewer felony charges than those that were originally filed against him by the Los Angeles District Attorney's Office.

A German court ruled that a fixed gear bike with a single hand-brake is not illegal, and should be considered the same as a bike with two regular hand brakes, or a brake sytem that works by pedaling backwards.

You're probably asking wondering what the heck is a 'fixie' bike, and why is this such a big deal?

Can't bicyclists opt to do foolish things, and bring a world of hurt and pain upon themselves if they're so inclined?

L.A. Superior Court Judge Patricia Schnegg, who presides over the Chris Brown assault-on-Rihanna case, postponed his sentencing today until August 27.

"The judge wants to know if Virginia has similar work programs like Caltrans where he will do community labor," according to Jane Robison, a press secretary in the Los Angeles District Attorney's Office.

Donald Etra, Rihanna's attorney, said that "the judge is awaiting confirmation from Virginia as to what Chris would be doing."

But why will Chris Brown serve his sentence in Virginia instead of California?

A panel of three federal judges ordered the State of California to reduce its inmate population because of prison overcrowding, resulting in the release of approximately 43,000 prisoners during the next two years so that the state's prisons can operate at 137.5% of their design capacity.