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9-Figure Settlement in RICO Class Action Approved

The Legal Intelligencer

A federal judge has granted final approval of a class action RICO settlement estimated to be worth at least $184 million and possibly as much as $530 million to a class of mostly elderly investors who say they were lured by deceptive marketing practices to purchase long-term annuities with American Investors Life Insurance Co. that often had maturity dates far beyond their own life expectancies. "The settlement relief liquifies the annuities and allows class members to receive immediate payments and bonuses," the judge wrote.

No New Partners Being Named at Cravath

The American Lawyer

Making partner at a big New York firm is a crap shoot, but in this recession the odds have gone from bad to dismal. At many prominent firms, the number of new partners has dropped precipitously. And now Cravath, Swaine & Moore has just confirmed that it will be making no new partners. Cravath says the reason was not the economy, but, rather, that "no one met our standards."

Dechert Sued Over 'Counsel' Role in Dreier Loan Deal

New York Law Journal

Fortress Investment Group has sued Dechert, claiming the law firm issued an "utterly false legal opinion letter" that was used by ex-attorney Marc Dreier in his scheme to defraud the private equity firm. Fortress, which manages $32 billion in assets, is seeking more than $50 million in compensatory damages as well as punitive damages for Dechert's "egregious misconduct." The suit also claims fraud, negligent misrepresentation, legal malpractice, negligence and breach of fiduciary duty.

Sanctions Ordered Against Goodwin Procter Over Delay in Releasing E-Mail

The National Law Journal

A special master has ordered sanctions against Applied Materials and attorneys at Goodwin Procter for stalling in releasing an e-mail by the company's chief executive. Judges who issued opinions on e-discovery disputes this year were increasingly likely to tack on sanctions, according to a Kroll Ontrack study issued this month. A managing staff attorney at Kroll Ontrack says the Applied Materials decision is consistent with a trend of decisions being issued against corporate litigants and their counsel.

Federal Circuit Affirms $290 Million Judgment Against Microsoft

The Recorder

The Federal Circuit sided against Microsoft and celebrated patent lawyer Matthew Powers on Tuesday, affirming an injunction and a $290 million patent judgment against the software company. Microsoft will have to stop selling the current version of Microsoft Word 2007 on Jan. 11 and pay damages to patent holder i4i Inc. Patent litigators are marveling over the fact that the Federal Circuit upheld a permanent injunction, a novelty since the U.S. Supreme Court's 2006 eBay v. Merc Exchange ruling.

IP Star's Lateral Move Triggers a Flurry of Mixed Messages

The Recorder

This week's big lateral move by Sonnenschein partner Yar Chaikovsky turned out to be a stormy one. A few minutes after McDermott Will put out a press release Monday on the hire, Chaikovsky told The Recorder he had resigned from Sonnenschein that morning. But just a few hours later, Chaikovsky was on "a leave of absence" from Sonnenschein, according to an out-of-office response to e-mail, as well as a voice mail greeting, which was not recorded in Chaikovsky's voice.

Trekkie's Suit Against Auction House Fails to Live Long, Prosper

New York Law Journal

A "Star Trek" fan who claims he was humiliated after spending more than $24,000 on fake props at an auction has had his $7 million suit against Christie's auction house zapped by an appellate court. Among the items was a visor the fan believed was worn by an android character played by Brent Spiner. When Spiner was asked to autograph the item at a convention, the actor allegedly told the fan it wasn't real and warned others not to buy fake memorabilia "like the guy who paid 12 Grand for a phony visor from Christie's."

Judge Declines to Dismiss Obscenity Case Against 'Milk Nymphos' Producer

The National Law Journal

A federal judge Tuesday refused to dismiss the DOJ's case against the owner of a major pornography studio, Evil Angel Productions, shooting down the defense's argument that federal obscenity statutes are unconstitutional. Prosecutors indicted John Stagliano and his company in 2008 on charges they illegally sold and transferred obscene material across state lines, including two DVDs and a film trailer on the studio's Web site for "Fetish Fanatic Chapter 5."

Attorney Can Seek to Recover Fees Despite Faulty Retainer, Panel Says

New York Law Journal

An appeals panel in Manhattan has ruled that an attorney who failed to comply with a court rule covering retainer agreements and who was discharged by his client can nevertheless recover the value of services provided. The ruling narrowed a lower court decision that would have permitted the lawyer, who had not complied with the 2002 court requirement that clients be given retainer letters, to seek recovery of the 38 percent contingency fee outlined in an agreement he claimed he had with his client.

Novell Gets New Trial After $35 Million Loss

The Recorder

Software company Novell was spared a $35 million jury verdict against it when a California appeal court found last week that a lower court judge's sanctions against the company went too far. Sending the case back to Superior Court for a new trial, the 4th District Court of Appeal found that Novell didn't act intentionally when it failed to present certain documents before the six-month-long trial started, and that Orange County Superior Court Judge David Velasquez was heavy-handed.

Acquitted of Money Laundering, Defense Attorney Sets Sights on Legal Fees

Fulton County Daily Report

Lawyers for defense attorney J. Mark Shelnutt have asked a federal judge to reimburse him for more than $225,000 in legal fees, claiming federal prosecutors "lacked any legal or factual basis" for the drug, money-laundering and bribery charges of which Shelnutt has been cleared. Judge Clay Land has excoriated federal prosecutors for making "sweetheart plea deals" with drug dealers to support their "relentless pursuit" of Shelnutt. But the former U.S. Attorney who initiated the investigation has lashed out against the judge.

Sears Wins Dismissal of Class Action Over Kmart Merger

The American Lawyer

The plaintiffs in a long-running class action against Sears, Roebuck & Co. over its merger with Kmart had reason to be optimistic: Their case survived a motion to dismiss, and they won class certification. But they suffered a potentially fatal setback last week when Chicago federal district court Judge Robert Gettleman granted Sears' motion for summary judgment. Gettleman also granted summary judgment to Sears Holdings Chairman Edward Lampert and an investment fund that became a controlling shareholder of Sears.

8th Circuit Rains on N.D. Farmers' Hemp Appeal

The Associated Press

The 8th Circuit on Tuesday affirmed a lower court's decision to dismiss a lawsuit by two North Dakota farmers who said they should be allowed to grow industrial hemp without fear of federal criminal prosecution. Nearly three years ago, state officials issued Wayne Hauge and David Monson the nation's first licenses to grow industrial hemp. But without permission from the Drug Enforcement Agency, the men could be arrested for growing the crop because parts of the plant are considered controlled substances under federal law.

Ruling Gives Guidance on Native Production

New York Law Journal

For those still confused by the production of electronically stored information in native file format, new rulings indicate a consistent body of guidance is developing. Attorneys H. Christopher Boehning and Daniel J. Toal examine the lessons offered by a recent federal decision.

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Tips to Minimize Holiday Stress and Celebrate the Season

The Legal Intelligencer

December often brings added stress to many lawyers. Some associates worry whether they have billed enough hours and whether they can possibly make up the shortfall in the remaining weeks in the year. Other attorneys work long hours, struggling to meet hard and fast deadlines, as multiple clients try to close transactions or settle cases before year-end. If you feel stress during the holidays or any other time, here are some reminders from consultant Debra L. Bruce about how to keep it down to manageable levels.

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Small Law Firm Woos Clients With Monthly Subscription Fees

The Recorder

When lawyers Todd Smithline and Raj Jha negotiate terms with a new client, they never bring up the billable hour anymore. Over the last two years, their San Francisco firm, Smithline Jha, has moved almost completely to a monthly subscription model. "People think it's really complicated, but it can be a really quick and friendly discussion," Jha said. And if the client's number doesn't match the firm's, Smithline added, "It's not the end of the world; you find a number you can live with. You can revisit it."

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