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3rd Circuit Bars Prosecution Threat for Teen 'Sexting'

In the first case ever to challenge the constitutionality of prosecuting teens for "sexting," the 3rd Circuit has upheld an injunction that barred a Pennsylvania prosecutor from bringing child pornography charges against girls who refused to attend a class he had designed to educate young people about the dangers of sexting. A unanimous three-judge panel found that any decision to prosecute the teens after they refused to take the class would be retaliation against them for asserting their First Amendment rights.

Wachovia Bank Agrees to Pay $160 Million in Deferred Prosecution Agreement

Wachovia Bank has agreed to pay $160 million to the federal government to resolve a charge that the bank willfully failed to effectively monitor for potential money-laundering activity in hundreds of billions of dollars in transactions with Mexican currency exchange houses, the Justice Department announced Wednesday. Prosecutors said more than 20,000 kilograms of cocaine were seized from aircraft bought by drug-trafficking organizations with money wired through Wachovia bank accounts.

Law Firms Protest Lehman Fee Committee's Cuts in Legal Bills

The legal fee dispute between the Lehman Brothers estate's fee committee and key law firms working on Lehman's bankruptcy gained momentum this week, when three firms -- Milbank, Tweed, Hadley & McCloy, Jones Day and Curtis, Mallet-Prevost, Colt & Mosle -- filed papers protesting the committee's reductions of their bills. The main argument -- in terms of controversy and dollars -- centers on how much the firms are billing to prepare their bills.

How to Know if You're a Big Law Cog

The Snark takes some time to clarify the term "Cog." Notably, it doesn't just refer to Big Law associates. Here's a quiz that lets you know if you're a Cog, "The Man" (even if you're a woman), or a Consuming Oxygen Guzzler -- a Cog who just sucks in the good air and wastes space.

ESI Culling: Trouble With Image Files

Some EDD cases deal with digital image file formats that are not forensic, bit-for-bit copies. But what about cases that, at a glance, don't need image files? "Is it due diligence or a waste of resources to include image files in your culling criteria?" asks consultant Jason Briody.

Ban on 'Pay for Delay' Patent Settlements Cut from Health Care Bill

Generic drug makers are applauding the latest change to the health care bill -- eliminating the ban on patent settlements. The measure, which was backed by the Federal Trade Commission, would in most cases have barred so-called "pay for delay" settlements of patent cases brought by generic companies against brand-name drug makers. In such cases, the brand-name maker pays the generic company to delay the market entry of a lower-cost generic drug alternative.

Cooley Law School Wins One, Loses One in Court

Michigan's Thomas M. Cooley Law School dodged one legal bullet this week but got hit with another. Cooley was on the losing end of one case, in which a federal judge declined to dismiss a suit alleging that a former associate dean was fired in retaliation for opposing faculty nepotism involving a Michigan state judge. In the other, a federal appeals court shot down a suit alleging that Cooley failed to accommodate a student's learning disability and ultimately expelled her -- unlawfully -- for poor grades.

Judge Frowns on Request for California Bar Data

A law professor's long-proposed study about affirmative action's effect on bar exams' pass rates has encountered another obstacle. In a tentative opinion released last week, San Francisco Superior Court Judge Curtis Karnow deflated UCLA School of Law professor Richard Sander's plans by finding that the documents he seeks -- California State Bar historical data on past bar exams -- don't fall within the scope of documents traditionally subject to public disclosure.

Objectors Fail to Block Mattel Lead Paint Settlement

A federal judge has approved a class settlement resolving multidistrict litigation involving lead paint in Mattel toys. In approving the deal following a fairness hearing Monday, Judge Dale Fischer of the Central District of California rejected objectors' claims that the deal amounted to a "coupon" recovery contrary to the Class Action Fairness Act of 2005. The settlement involves millions of toys that were recalled or removed from the market in 2007 by Mattel or its subsidiary Fisher-Price due to excessive lead content.

N.Y. City Bar Retracts Survey's 'Not Satisfied' Finding on Deferred Associates

The New York City Bar on Wednesday retracted a finding from a survey suggesting that deferred associates were not satisfied with the lawyers with whom they worked at public interest groups. Saying it had misinterpreted data, the bar association also issued a revised report, which claims that deferred associates "were largely happy with their placements," a stark difference from the previous report, which suggested a "culture gap" existed between the law firm-bound lawyers and their public interest colleagues.

Goldman Sachs Sued for Not Divulging Internal Madoff Ban to Client

A Bernard Madoff victim who lost $15 million is suing Goldman Sachs for allegedly failing to tell him in 2004 that he should pull his money out of the Madoff Fund. Retired businessman Jerome Goodman claims in his federal suit that "Goldman Sachs implemented an internal ban on investment with the Madoff Fund in or around 1999" but breached its fiduciary duty in its response to Goodman's request to diversify. Goodman's lawyer, who represents several Madoff victims, says he knows of no similar suits by Goldman Sachs customers.

Chadbourne Rescinds Job Offers to 11 Deferred Associates

Chadbourne & Parke confirmed on Wednesday that it had rescinded job offers to 11 incoming associates it had previously deferred past January 2010. Chadbourne said it has paid each of the 11 deferred associates the balance of a $73,000 stipend promised after the firm delayed their start dates. The firm said the decision has no effect on the other lawyers in the class or its 2010 incoming associates and summer class.

Jury Finds Plaintiffs Lawyers Defrauded Railroad in Asbestos Suit

When a federal jury returned a verdict against two Mississippi plaintiffs lawyers, finding they had committed fraud against Illinois Central Railroad, it was the culmination of the railroad's seven-year battle against abusive asbestos claims. It also may have been the first civil trial in which attorneys were nailed for fraud in bringing these claims: The jury found the attorneys lied when they denied knowing their clients had previously settled asbestos claims that should have barred them from filing against the railroad.

High Court Justices, Legal Luminaries Debate Shakespeare's 'Henry V'

William Shakespeare's "Henry V" provided the plot for the Shakespeare Theatre Company's annual mock trial Tuesday night in Washington, D.C., featuring a collection of high-profile judges and lawyers, including Supreme Court Justices Samuel Alito Jr. and Ruth Bader Ginsburg -- who was sitting as chief justice for a change. The case before the seven-judge panel asked whether Henry V should be held criminally responsible for the mass execution of French prisoners of war after the Battle of Agincourt in 1415.

Microsoft Hit With Another Multimillion-Dollar Loss in Texas

After being hit with a $290 million trial loss last year, Microsoft and decorated patent lawyer Matthew Powers went into the same Texas courtroom with the same judge, against the same Dallas lawyer -- and lost again. The jury concluded late Tuesday that Microsoft willfully infringed on patents held by VirnetX, and awarded the California technology licensing company $105.8 million. The company, which had been asking for $242 million, will now seek an injunction.

Former RRA Attorney Lived Rent-Free in Home Owned by Rothstein

The defense attorney for disbarred attorney Scott Rothstein said in a deposition that he was paid a $350,000 salary and lived rent-free in a waterfront home owned by his employer. An attorney representing the trustee for the defunct Rothstein Rosenfeldt Adler questioned Marc Nurik in an attempt to trace money that moved through the firm before Rothstein's $1.2 billion fraud collapsed. Nurik, who left RRA to defend Rothstein, stayed in the home until investors began clamoring for missed payments on phony settlement financing.

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