Enron investors pin hopes on court

first_imgMuch of corporate America has jumped into the court fight, arguing that shareholders in companies that commit securities fraud should not be allowed to sue banks, accountants, law firms and suppliers that allegedly participated in the fraud. Allowing investors to file class-action lawsuits in such cases would “threaten the safety and soundness of individual financial institutions and the nation’s banking system,” a coalition of business groups, including the American Bankers Association, said in court papers. Firms and corporations that enabled companies such as Enron to defraud stockholders should now have to pay, lawyers for the investors say. “The banks orchestrated the fraud; they weren’t sideline viewers,” said Patrick Coughlin, the lead lawyer for Enron shareholders. “So when the question comes up about who should be on the hook for Enron, it’s the banks.” Meir Feder, a New York lawyer who defends companies in securities cases, said “everybody understands that the Enron shareholders are victims here, but there’s a reason that Congress and the Supreme Court haven’t allowed people to sue third parties.” LAWSUIT: Justices weigh a fraud case that could be a last chance for compensation. By Pete Yost THE ASSOCIATED PRESS WASHINGTON – The hopes of Enron investors are riding on a Supreme Court case that may be the last chance at compensation for their losses from the scandal-ridden energy company’s collapse. He added, “In the real world, for every third party who actually had a role in a fraud, you’re going to get lots of suits against other third parties who really didn’t.” When the Supreme Court hears arguments on the issue Tuesday, Enron investors will be on the sidelines. The court is dealing with a suit by Stoneridge Investment Partners against Motorola Inc. and Scientific-Atlanta Inc., which Cisco Systems Inc. now owns. Only eight of the nine justices will participate. Justice Stephen Breyer has withdrawn from the case; he gave no reason, but financial disclosure documents state he owned Cisco stock. Chief Justice John Roberts, who did not participate in the court’s decision to take the suit, has come back into it. The Stoneridge case has strong parallels to the one pursued by Enron shareholders, which the high court has left alone. The Enron suit was up for consideration June 21 at one of the justices’ regularly scheduled private conferences, but the court has neither accepted nor rejected it. “It’s easier to decide a legal issue in a noncharged atmosphere, which may have been what the justices had in mind by not taking on Enron,” Coughlin said. Stoneridge accused Motorola and Scientific-Atlanta of engaging in sham transactions with a cable television company, Charter Communications Inc. The alleged motive was to inflate Charter’s revenue by $17 million, help meet Wall Street expectations and avoid a drop in the company’s stock price. Because of a number of deals including the ones involving Motorola and Scientific-Atlanta, Charter eventually restated its financial statements, reducing revenue by $292 million from 2000-2002. In addition, four former Charter executives pleaded guilty in the matter after the Justice Department investigated the deals. Stoneridge’s efforts to recoup investment losses from Motorola and Scientific-Atlanta were turned back by lower courts, which said that the allegations were nothing more than claims that the two companies aided and abetted the fraud by Charter.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more

[WATCH] Nike celebrates SA’s golden girl, Caster Semenya in cutting-edge ad

first_img“Too fast? Too bad. I was born to do this.” This is the message gold medallist Caster Semenya conveys in her latest ad.This year has been nothing short of amazing for the South African 800m runner, who has just wrapped up another phenomenal season. She reached an 800m personal best of 1:54.25 in the Paris Diamond League that took place in June this year, followed by another seven Diamond League wins, and her most recent wins at the IAAF Continental Cup, claiming the 800m title and the silver medal in the 400m, where she set a new South African record of 49.62.On Monday, Semenya trended on social media yet again, this time after posting a powerful Nike commercial she features in. In the ad, she utters the words: “Would it be simpler if I stopped winning? Would you be more comfortable if I was less proud?”The ad responds to on-going criticism directed to Semenya around her hyperandrogenism and the recent IAAF ruling of the female category in track and field that states: “women racing distances between 400m and the mile must adhere to a new upper limit for testosterone of five nanomoles per litre.”Nike has, in celebration of the 30th birthday of their ‘Just Do It’ pay offline, released a series of ads starring powerful athletes from around the world. The first ad features former NFL player Colin Kaepernick. Other global sporting stars also included in the Kaepernick ad are Serena Williams and LeBron James.As the Nation Brand, we will continue to stand behind Caster. We applaud her for being an inspiration to the nation with every new stride and achievement.last_img read more

2yrold raped in Gurugram

first_imgGurugram: In a single day two cases were registered in the city that again highlighted how vulnerable the children in the city are. In the first case, a two-year-old was raped by a drunkard. The police have arrested a 23-year-old man from Bihar on the charge of raping a two-year-old girl in a slum near Sector 84 here on Tuesday night when the child was alone at home. An FIR was lodged under the POCSO Act. In another incident, a 43-year-old man arrested for allegedly molesting his 14-year-old daughter when she was sleeping in her house in Badshahpur. According to the police, the relationship between the teen’s parents has been strained for some time. They allegedly live separately in the same house. Police spokesperson Subhash Boken said, “The girl used to be with her mother on some days and with her father on other days.”last_img read more

Divers following uncovered debris in Labrador plane crash search RCMP

first_imgST. JOHN’S, N.L. — More than two weeks into the search in Labrador for a downed float plane and its missing passengers, the RCMP says divers have been able to focus their search area after more debris was found Thursday.Divers have been searching Mistastin Lake, about 100 kilometres southwest of Nain, seeking three missing men and the plane that crashed there on July 15.Seven men, including the pilot, were on board the de Havilland DHC-2 Beaver that had been travelling from Three Rivers Lodge to Mistastin Lake, for a fishing trip from which they never returned. Four bodies have been recovered.Cpl. Jolene Garland of the RCMP says divers are hopeful that focusing the search around the area where the debris was found underwater could bring them closer to the plane and the missing men.Garland says evidence suggests divers may be in the right area, though no additional bodies have been found since July 24, when that of a 50-year-old fishing guide from Newfoundland and Labrador was recovered.Public Safety Minister Ralph Goodale said last week that Canadian Armed Forces personnel were joining the recovery efforts. The cause of the crash is still unknown.The Canadian Presslast_img read more