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Oct 23, 2014

Northrop must face whistleblower anti-missile lawsuit: U.S. judge

By Jonathan Stempel

(Reuters) – A Chicago federal judge on Thursday rejected Northrop Grumman Corp’s bid to dismiss a lawsuit by a former employee who accused the defense contractor of defrauding the U.S. government in performing a contract to develop a missile defense system for commercial aircraft.

U.S. District Judge Manish Shah said the employee, Illinois resident Leo Danielides, plausibly alleged that Northrop induced the government in 2006 to award it the third phase of the “Counter-MANPADS” project through false statements, and lied about its performance when seeking periodic payments.

Oct 23, 2014

NYC taxi fleet owners win right to appeal ‘Taxi of Tomorrow’ plan

NEW YORK (Reuters) – New York City’s program to create a nearly uniform taxi fleet with cabs from Nissan Motor Co will face a renewed challenge, after fleet operators opposing the “Taxi of Tomorrow” plan won permission to take their case to the state’s highest court.

In a brief order on Thursday, the state appeals court in Manhattan that had in June authorized the plan said the operators may challenge that ruling before the New York State Court of Appeals in Albany.

Oct 23, 2014

‘Jersey Shore’ star pleads not guilty to tax fraud, trial set

By Jonathan Stempel

(Reuters) – Michael “The Situation” Sorrentino, a former cast member of the MTV reality show “Jersey Shore,” pleaded not guilty on Thursday to federal tax fraud charges.

Sorrentino entered his formal plea to four criminal counts before U.S. District Judge Susan Wigenton in Newark, New Jersey. His brother, Marc, also pleaded not guilty to four counts.

Oct 23, 2014

Olympian Jim Thorpe’s remains should not be moved: U.S. court

By Jonathan Stempel

(Reuters) – Jim Thorpe’s remains will stay in the Pennsylvania hamlet named for the legendary Native American athlete and Olympics champion, after a federal appeals court on Thursday rejected an effort by two sons to move them to tribal lands in his native Oklahoma.

Addressing an unusual dispute between two generations of descendants, the 3rd U.S. Circuit Court of Appeals in Philadelphia said a lower court judge was wrong to order that Thorpe’s remains be turned over to the Sac and Fox Nation.

Oct 21, 2014

U.S. seeks more Trinity guardrail tests after big jury award

Oct 21 (Reuters) – The U.S. government on Tuesday asked
Trinity Industries Inc to conduct more crash testing of
a highway guardrail system, a day after a federal jury found the
company liable for fraud related to the product, or else risk
losing federal funding.

Gregory Nadeau, acting administrator of the Federal Highway
Administration (FHWA), said new tests of Trinity’s ET-Plus
product for the ends of guardrails, which is intended to protect
vehicle occupants in crashes, are needed in light of the verdict
and to help the regulator evaluate how well the system works.

Oct 20, 2014

Canadian sues SEC to stop Herbalife insider trading case

NEW YORK, Oct 20 (Reuters) – A Toronto man accused by the
U.S. Securities and Exchange Commission of insider trading in
Herbalife Ltd on Monday sued the federal regulator to
stop it from pursuing its case.

In a complaint filed in Manhattan federal court, Jordan
Peixoto said the SEC “intentionally and strategically” singled
him out by pursuing an administrative proceeding to force a
settlement, rather than sue him in federal court.

Oct 20, 2014

Facebook sues lawyers for pursuing dubious Ceglia lawsuit

NEW YORK, Oct 20 (Reuters) – Facebook Inc and Chief
Executive Mark Zuckerberg have sued several lawyers who have
represented Paul Ceglia, claiming they helped the upstate New
York entrepreneur pursue a fraudulent lawsuit to extort a 50
percent stake in the social networking company.

Monday’s lawsuit was filed seven months after a federal
judge dismissed Ceglia’s civil case, and two years after federal
prosecutors in Manhattan charged Ceglia with criminal mail and
wire fraud for allegedly forging documents underlying his claim.
Facebook’s market value is now close to $200 billion.

Oct 3, 2014

Ex-Jefferies trader may win reversal of fraud conviction

NEW YORK (Reuters) – A federal appeals court signaled that former Jefferies Group Inc managing director Jesse Litvak has a good chance to overturn his conviction for defrauding mortgage bond investors after the 2008 financial crisis.

The 2nd U.S. Circuit Court of Appeals on Friday granted Litvak’s bid to stay out of prison while he appeals his March 7 conviction by a federal jury in New Haven, Connecticut, which resulted in a two-year prison term.

Oct 2, 2014

Don King liable for canceled title fight after boxer’s drug test

NEW YORK (Reuters) – A U.S. judge found boxing promoter Don King liable for breach of contract over an April 25 World Boxing Association cruiserweight championship bout that was canceled after one of his fighters, challenger Guillermo Jones, failed a drug test.

U.S. District Judge Shira Scheindlin in Manhattan said Jones’ disqualification for testing positive for the diuretic furosemide, just a few hours before he was scheduled to fight Denis Lebedev in Moscow, “plainly put King in breach” even if the promoter had nothing to do with the failed test.

Oct 1, 2014

Activist investor Stilwell sues SEC to stop enforcement case

NEW YORK, Oct 1 (Reuters) – The activist hedge fund manager
Joseph Stilwell sued the U.S. Securities and Exchange Commission
to stop it from pursuing an imminent enforcement action against
him. He also wants a declaration that the appointment of SEC
administrative law judges is unconstitutional.

Stilwell, whose Stilwell Value LLC has about $200 million
under management and often invests in community banks, filed his
lawsuit on Wednesday, less than three weeks after a Manhattan
federal judge ordered him to comply with an SEC subpoena.

    • About Jonathan

      "I cover legal and regulatory matters, and am based in New York. I have covered banking, finance, Warren Buffett and corporate bonds."
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