June 8, 2011 nº 1,051 - Vol. 9
"There is nothing more uncommon than common sense."
Frank Lloyd Wright
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Read Migalhas LatinoAmérica in Spanish every Tuesday and Thursday. Visit the website at www.migalhas.com/latinoamerica
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Supreme Court grants securities fraud class certification without proof of loss causation
The US Supreme Court unanimously ruled on Monday in Erica P John Fund v. Halliburton that, though a party to a private securities fraud action must demonstrate that the defendant';s misrepresentation caused economic loss, securities fraud plaintiffs do not need to prove loss causation for class certification. EPJ Fund - Erica P John Fund sought class certification in a suit to recover investors' losses from Halliburton. Halliburton, according to EPJ Fund, made misstatements about its financial position which, when revealed to be false, caused Halliburton's stock price to fall. The US Court of Appeals for the Fifth Circuit held that investor losses need to be proven by a preponderance of the evidence at the class certification stage prior to full discovery in order for the class action lawsuit to proceed. The Supreme Court disagreed. Federal Rule of Civil Procedure 23(b)(3) requires that, for a class satisfying Rule 23(a) to be certified, "the questions of law or fact common to class members predominate over any questions affecting only individual members, and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy." Chief justice John Roberts pointed to Basic v. Levinson where the Court held that an investor presumptively relies on a defendant's misrepresentation if that "information is reflected in market price" of the stock at the time of the relevant transaction.
Supreme Court rules party must pay fees for frivolous claims alone
The US Supreme Court unanimously ruled on Monday in Fox v. Vice that it is improper to award defendants the full amount of attorney's fees incurred while defending non-frivolous claims along with a frivolous claim. 42 USC § 1988 permits courts to award defendants attorney's fees for defending against a frivolous claim, even when the plaintiff also asserts non-frivolous claims. The court interpreted § 1988 as permitting the defendant to receive "only the portion of his fees that he would not have paid but for the frivolous claim."
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1 - $100k car wrecked after 'brain explosion' - click here.
2 - Woman denies using dogs in assaults - click here.
3 - EU proposes compensation package for farmers hit by E. coli outbreak - click here.
4 - Facebook becomes tool to serve legal papers on those who exist only online - click here.
5 - Ex-IMF chief Strauss-Kahn pleads not guilty in sex assault - click here.
6 - New Solicitor General is confirmed - click here.
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China ends wind power subsidies after US challenge
China has agreed to halt subsidies to wind power manufacturers that violate WTO - World Trade Organisation rules. The move comes after the the United Steelworkers Union filed a complaint to the WTO. The Chinese currently subsidize wind-power firms that use domestic parts instead of imports.
China executes student for murder of hit-and-run victim
Chinese student Yao Jiaxin - who has been executed for murdering a woman he hit in a road accident. He reportedly handed himself in, but that was not enough to spare him the death penalty.
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Costa Rica – Petróleo
La posibilidad de poner en marcha un proyecto de exploración petrolera y de gas natural en la zona norte de Costa Rica parece haber revivido en las últimas semanas, luego de que la empresa estadounidense Mallon Oil Company, que había obtenido una concesión en el año 2000, superó una serie de trabas jurídicas. El proyecto se empantanó debido a una serie de apelaciones interpuestas por una organización ecologista.
Petroquímica
La brasilera petroquímica Braskem aportará US$ 4.000 mlls., para un fondo destinado a obras de infraestructura en Venezuela, a cambio de la entrega por parte de la estatal venezolana Pdvsa de crudo, gasolina y derivados del petróleo. El fondo financiará el plan "Gran Vivienda", que pretende construir 2 millones de casas en Venezuela. Braskem es la mayor productora de resinas termoplásticas en el continente americano y la tercera mayor compañía industrial privada de capital brasileño.
Indemnización LAN
LAN pagará una indemnización de US$66 mlls. a particulares que demandaron a la compañía por colusión de precios en Estados Unidos y que afectó a 42 aerolíneas.
Fleeing to foreign shores
Nearly one in 10 American companies that went public last year did so outside the United States. Besides Australia, they turned to stock markets in Britain, Taiwan, South Korea and Canada. The 10 companies that went public abroad in 2010 — and 75 from 2000 to 2009 — compares with only two United States companies choosing foreign exchanges from 1991 to 1999. The trend reflects a decidedly global outlook toward stocks, just as the number of public companies in the United States is shrinking. From a peak of more than 8,800 American companies at the end of 1997, that number fell to about 5,100 by the end of 2009, a 40% decline. The drop comes as some companies have merged, or gone out of business, or been taken private by private equity firms. Other young businesses have chosen to sell themselves to bigger companies rather than go public.
Despite worries, serving at the top carries little risk
Corporate directors and officers have about the same chance of being held liable for their poor management of a public company as they have of being struck by lightning.
H.K. top court blocks Congo-China lawsuit
Hong Kong's highest court ruled that the Democratic Republic of Congo can't be sued in the city, saying China's policy is one of absolute immunity for sovereign states.
EU seeks UN action over Syria's crackdown
But unlike the case of Libya, the draft does not suggest military action against Damascus or sanctions.
Indonesia cattle abuse row grows
The Australian government suspends all live cattle exports to Indonesia in a growing row over alleged animal cruelty until safeguards are adopted to end the brutal slaughter of animals. Canberra suspended exports to abattoirs, but now it has issued a blanket ban. The ban is the result of public revulsion and outrage at the gruesome footage from Indonesia's abattoirs that was broadcast last week in an TV documentary.
Wyoming high court rules same-sex couple can divorce
The Wyoming Supreme Court ruled Monday that a same-sex couple married in Canada can get a divorce in Wyoming. The couple was legally married in Canada in 2008 and began divorce proceedings in Wyoming, where the couple resides. A district court determined it did not have subject-matter jurisdiction to adjudicate an action to dissolve a same-sex marriage because Wyoming state statute defines marriage as "a civil contract between a male and a female person." The Wyoming high court overruled the district court's decision. Because state statute also indicates that "[a]ll marriage contracts which are valid by the laws of the country in which contracted are valid in this state," the court reasoned that it had subject-matter jurisdiction over the proceeding. In reaching its conclusion, the court distinguished between same-sex marriage and same-sex divorce: "Recognizing a valid foreign same-sex marriage for the limited purpose of entertaining a divorce proceeding does not lessen the law or policy in Wyoming against allowing the creation of same-sex marriages. A divorce proceeding does not involve recognition of a marriage as an ongoing relationship. Indeed, accepting that a valid marriage exists plays no role except as a condition precedent to granting a divorce. After the condition precedent is met, the laws regarding divorce apply. Laws regarding marriage play no role." The court reversed and remanded the decision for further consistent proceedings at the district court level.
Madoff payroll manager pleads guilty to involvement in Ponzi fraud
Eric Lipkin, payroll manager for Bernard L Madoff Investment Securities LLC, pleaded guilty on Monday to six criminal counts in the US District Court for the Southern District of New York related to his involvement in a Ponzi scheme that defrauded investors of billions of dollars. Lipkin admitted to falsifying documents to show nonexistent account holdings, adding fake employees to the company's payroll and lying to get a loan. The parties filed a cooperation agreement indicating Lipkin's and the prosecutors' intent to comply with information disclosure requests and agreements.
Iceland ex-PM pleads not guilty to charges over role in banking collapse
Former Icelandic prime minister Geir Haarde pleaded not guilty Tuesday to charges that he was grossly negligent for failing to stop the nation's banking collapse during the 2008 financial crisis. Haarde vowed that he would prove his innocence and claimed that the charges were a result of the first political trial in the nation's history. Haarde is facing trial in the Landsdomur, a special court created to try government ministers, after being accused of intentionally or grossly negligently failing to prevent the 2008 Icelandic financial crisis.
Brazil's chief minister Palocci resigns
The Brazilian president's chief of staff Antonio Palocci has resigned over corruption allegations. Palocci, who ran a political consultancy while serving in the Brazilian Congress, has denied any wrongdoing. A newspaper reported he had increased his personal wealth 20-fold over the past four years. He was seen as an advocate for fiscal restraint and a strong supporter of business. It is the second time Palocci has resigned from public office.
Egypt declares Muslim Brotherhood legal for first time
Egypt officially declared the MB - Muslim Brotherhood legal Tuesday for the first time since the powerful political organization's inception nearly 80 years ago. An Egyptian elections commission approved the formation of the MB's FJP - Freedom and Justice Party. The MB announced the FJP on April 30, which is set to challenge for half the parliament seats in the upcoming September elections. The MB was founded in 1928 and was officially banned in Egypt in 1954.
EU labeling sets off debate
A proposal that would force companies to slap "Made in" labels on billions of euros in goods sold in the EU has split the bloc's southern manufacturing base from companies who sell items from elsewhere.
Official review finds scant evidence of state funds going to extremists
UK admitted that funding from the government's anti-radicalisation programme had in the past "found its way" to extremist organisations that present a threat to UK security. The Home Secretary, Ms May, said the "flawed" programme she had inherited from Labour had financed "the very extremist organisations that should have been confronting'', and announced plans for future recipients of funding to be tested on their adherence to mainstream British values and subjected to stricter value-for-money controls.
Security Council to discuss Syria resolution as scores flee to Turkey
Al Arabiya, Online news, Dubai, United Arab Emirates
European powers step up pressure on Syria
Al Jazeera, Doha, Qatar
Inmate's ear bitten off in fight over music player
Arab News, Pro-government, Jidda, Saudi Arabia
US plans to sabotage Pakistan nuke facilities: Iran
Asharq Al-Awsat, Pan-Arab daily, London, England
Yemen military says 30 Islamist militants killed
Egyptian Gazette, English-language, Cairo, Egypt
Report: France to pursue Mideast conference despite U.S. reservations
Haaretz, Liberal daily, Tel Aviv, Israel
Dozens of Syrian refugees flee unrest to Turkey
JPost, Conservative, Jerusalem, Israel
Shooting in Jabaliya, Gaza kills 55-year-old
Ma'an News Agency, Bethlehem, Palestinian Territories
Yemen President escapes assassination
Yemen Observer, Sana'a, Republic of Yemen
Sentencing plans 'may be shelved'
BBC News, Centrist newscaster, London, England
Costello removal to take place this evening
BreakingNews.ie, Online news portal, Cork, Ireland
Syrian ambassador to France denies having resigned
CNN International, London, England
2,000 must evacuate amid US fires
Daily Express, Conservative tabloid, London, England
Family doctor sexually assaulted girls behind screen as their mothers sat just feet away
Daily Mail, Conservative daily, London, England
Flooding leaves several dead in Haiti
EuroNews, International news, Ecully Cedex, France
SYRIA: Confusion reigns over Syrian envoy's alleged resignation
France 24, Issy-les-Moulineaux, France
Dimon confronts Bernanke over banking rules
Independent The, London, England
BP plots share sale to defrost Arctic deal
Moscow News The, Independent, Moscow, Russia
Universities 'complacent' over Islamic radicals, Theresa May warns
Telegraph The, Conservative daily, London, England
38,000 internally displaced persons in Pakistan return homes: UN
Antara News, News agency, Jakarta, Indonesia
World Bank expects 3.7% Thai growth
Bangkok Post, Independent, Bangkok, Thailand
Obama expresses concern about slowing economy
China Post, English-language daily, Taipei, Taiwan
IT flaws highlighted in Health Ministry RFP
Computer World, IT information, Fairfax, New Zealand
Israeli fire caused casualties at Golan: UN
Daily Jang, Left-wing daily, Karachi, Pakistan
Speeding bus flips off bridge, kills 21 in India
Dawn, English-language daily, Karachi, Pakistan
CBI likely to take a call on Maran in 20 days
Hindu The, Left-leaning daily, Chennai, India
Tahawwur Rana trial wraps up, jury set to deliver verdict
Hindustan Times, New Delhi, India
PM asks ministers to disclose assets, business links
India Express, News portal, Mumbai, India
Three illegal colonies demolished on Tibba Road
India Times, Conservative daily, New Delhi, India
First tropical storm of the season forms in Pacific
New Zealand Herald, Conservative daily, Auckland, New Zealand
Israeli fire caused casualties at Golan: UN
News The, Left-wing, Karachi, Pakistan
Bagram airbase comes under rocket strike
Pajhwok Afghan News, (Independent news agency), Kabul, Afghanistan
Grenade attack kills 3 policemen, injures at least 10 others in Colombia
People's Daily Online, English-language, Beijing, China
India health costs a crisis impoverishing millions
Sify News, Chennai, India
Clinton heads to UAE for talks on Libya
Straits Times, Pro-government, Singapore
Yemen: US officials: Yemen leader heavily burned in blast
Taiwan News, English-language daily, Taipei, Taiwan
Universal flu vaccine shows promise
Thaindian News, Bangkok, Thailand
Boeing C-17 deal to give India unique capability
The Economic Times, Business, Mumbai, India
Pak prosecutors to ask court to begin impounding Musharraf assets
Times of India, Conservative, New Delhi, India
Calgary, Edmonton postal workers on strike
Canadian Broadcasting Centre, Toronto, Ontario
Cuba: Reforms up against the clock
Caribbean360, Online news portal, St. Michael, Barbados
Terrorism, drugs preempt free ports, Customs chief says
Dominican Today, Independent daily, Santo Domingo, Dominican Republic
Who monitors our new religious freedom monitor?
Globe and Mail The, Centrist daily, Toronto, Canada
Americans cut back on oil products, services
International Business Times, Business news organization, New York, U.S
Swamped - Rain brings pain to Clarendon communities
Jamaica Gleaner, Independent daily, Kingston, Jamaica
Wall Street adds to losing streak after Bernanke speaks
Reuters, Business News, New York, U.S
Jewish settlers accused in West Bank mosque attack
Reuters, World News, New York, U.S
Diver's death shocks friends
Trinidad Guardian, Independent daily, Port-of-Spain, Trinidad
Sienna Miller settles phone-hacking claim
Vancouver Sun The, Conservative, Vancouver, Canada
Deadly attack on Nigerian police
BBC News, Centrist newscaster, London, England
Mabey & Johnson scandal: Police clears Peprah, Ynkey & Others
GhanaWeb, Online news portal, Amsterdam, Netherlands
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