CourtSide - The FindLaw Breaking Legal News Blog

November 2011 Archives

Judge Rejects Citigroup Settlement With SEC

A federal judge in New York has rejected the proposed settlement between the Securities and Exchange Commission and Citigroup that would have resolved the SEC's lawsuit accusing Citigroup of securities violations. The judge in the case found that, because the proposed settlement did not present the relevant facts, the settlement was "neither fair, nor reasonable, nor adequate, nor in the public interest."

CA Supreme Court Grants Prop 8 Backers Right to Sue

The California Supreme Court, answering a question from the Ninth Circuit, has ruled that initiative backers in California have the right to participate in a lawsuit to defend an initiative when state officials have declined to do so. This decision should allow backers of Proposition 8 to continue their defense of the amendment against constitutional challenges.

Judge Extinguishes Cigarette Warning Label Law

A federal district court judge in Washington D.C. has issued a preliminary injunction blocking enforcement of new rules by the Food and Drug Administration that require cigarette manufacturers to display graphic warning labels on every pack of cigarettes sold. The judge found that the requirement violated cigarette manufacturers' rights under the First Amendment since it forced them to engage in commercial speech that goes beyond the conveyance of purely factual or uncontroversial information.

Grand Jury Report on Penn State Sex Abuse Scandal

The grand jury investigating allegations of sexual abuse against former Penn State defensive coordinator Jerry Sandusky has issued a report that outlines several instances of the alleged abuse. The report also concludes that officials at Penn State failed to report alleged instances of abuse and made materially false statements under oath regarding the alleged abuse.
The 2nd Circuit Court of Appeals has affirmed a lower court's denial of Afghanistan's motion to dismiss a complaint brought by the husband of a victim of the September 11th attacks. The court found that the plaintiff's suit was properly considered under the noncommercial tort exception to foreign sovereign immunity, but remanded the case back to the lower court to resolve factual issues concerning Afghanistan's involvement with the 9/11 attacks.

Judge Throws Out Madoff Trustee Lawsuit Against Banks

A federal judge in Manhattan has dismissed the Madoff trustee's lawsuit against JPMorgan Chase and UBS that claimed the banks knew or should have known of Madoff's Ponzi scheme. The judge tossed the lawsuit after finding that the trustee could not bring the suit on behalf of the victims of Madoff's fraud.

US Files Lawsuit to Invalidate South Carolina Immigration Law

The United States has filed a lawsuit in federal court seeking to block South Carolina's immigration law, Act No. 69, from going into effect. The US claims that the law infringes on powers reserved for the federal government, and thus violates the Supremacy Clause of the US Constitution.