Legal Radar

United Kingdom Set to Regulate Bitcoin Exchanges

The U.K. government will be readying digital currency exchanges in a bit to support technology innovation while curbing criminal usage.

In a released document with regards to the country’s 2015 budget, the Treasury plans to enforced anti-money laundering regulation to the U.K. digital currency exchanges.

Such measure is aimed in creating the proper environment for legitimate figures to grow while crafting a harmful environment for illegal digital currency users.

The Treasury also plans to have a thorough consultation sometime this year to seek another angle with regards to shaping the new regulation.

The government is planning to create ideal standards and practices for digital currency business to make sure consumers are protected. Voluntary standards will be made by the U.K. government, the digital currency industry, and the British Standards Institution.

At the same time, the government is aiming to support the growth of its own financial sector and trigger a competition within the banking sector.

Jury Finds Robin Thicke and Pharrell Guilty of Copying “Blurred Lines” Song

Just recently, a jury gave Marvin Gaye’s children close to $7.4 million early this week after it was concluded that Robin Thicke and Pharrell Williams copied their father’s song to compose “Blurred Lines.” The song was one of the hottest singles back in 2013.

Thicke and Williams have earned over $7 million each for the song.

Gaye’s children sued both singers for copyright infringement in 2013.

Williams said that Gaye’s music describes a song about his youth. But the Grammy winner testified saying he didn’t utilize any of it for “Blurred Lines.”

Both Thicke and Williams were accused of lying on the song creation process. Gaye’s children is said to be rewarded with millions of dollars if they found the song “Got to Give It Up” --- one of their father’s tracks --- to be infringed.

Williams also signed a document, which stated of not using work from other music artists and will be liable for damages if a copyright claim was successful.

Lawmaker Gives Warning on Battle Settlement Documents

The House Judiciary Committee head sent out a warning to the Obama administration in a recent hearing that a possible battle with the Justice Department will happen if they pass on documents regarding its multi-billion dollar settlements with major banks.

Republican lawmakers are inquiring what the $36.6 billion worth of settlement was used to pay for, and are concerned on how some of the funds were used to support left-leaning community groups.

Settlements with major banks such as Citigroup Inc. and J.P. Morgan Chase &Co. resolved claims that such firms misused mortgage-backed securities that led to a financial crisis in 2008.

Rep. Bob Goodlatte, the committee chairman, aired out his concerns on how the department may end up subverting Congress budget authority by making use of settlements to support activist groups.

Goodlatte also mentioned that officials have yet to surrender documents describing how consumer relief conditions were negotiated.

Geoffrey Graber of the Justice Department said his agency is still in the middle of looking into the request.

Teva Spots Possible FCPA Violations

Teva, a pharmaceutical company, indicated in a securities filing that an internal probe revealed business practices to likely have violated the Foreign Corrupt Practices Act.

The drug indicated before it was looking into matters in multiple countries that may lead to a rise of FCPA violations and/or possible violations to local laws, based on a securities filing last year.

Teva said its internal investigation started after receiving subpoenas and further requests on details related to foreign bribery from the SEC (Securities and Exchange Commission) and the Justice Department beginning in 2012.

The probe revealed business practices and transactions in Eastern Europe, Latin America, and Russia which is said to likely violate FCPA and local laws.

Teva previously mentioned that it may end up paying fines in relation to the FCPA investigation. The drug maker also mentioned that its affiliates in specific countries who are being investigated offered local authorities false or altered details on their marketing processes.

FTC Further Strengthens Antitrust Victory in Healthcare Case

The FTC (Federal Trade Commission) is consistently maintaining a court presence regarding its efforts to halt healthcare mergers it thinks aren't competitive.

A judge-panel from the 9^th U.S. Circuit Court of Appeals mentioned that an Idaho federal judge remained on strong round when he ruled that 2012 deal of St. Luke’s Health System with the Saltzer Medical Group could push to higher pricing for medical services.

The 9^th Circuit indicated that when a merger in healthcare happens it risks higher pricing. At the same time it’s not enough to prove that a merger would let the current system serve patients better.

St. Luke’s pointed out that the merger would let it offer improved healthcare as well as enhanced electronic sharing of medical records. The court of appeals, however, showed findings that St. Luke’s isn’t required to purchase a new group of doctors to take in a different and new approach.

Securities Class Action Restrained this Year

Attorneys for plaintiffs dodged a bullet in the previous year when the U.S. Supreme court spared a 100-year old case, which served as a legal pin in today’s investor class action suit.

Despite such victory, new reports indicated that securities class actions have lost a bit of firepower.

While numerous security class actions filed in the federal court moved only a bit last year, the filing size measured by shareholder losses were a lot smaller in 2014 compared to the year before, according to a report released this week by the Stanford Law School Securities Class Action Clearinghouse and by Cornerstone Research

What’s the reason behind the dip last year? One of them is the surge in the stock market last year, as indicated by Joseph A. Grundfest, a scholar from the Stanford Universities securities who helped set up the report.

The size of settlements in the previous year shrank, as reported by the NERA Economics Consulting on yearly trends regarding securities class actions. NERA, which recently revealed its report, observed that the average amount of settlement dipped by 38% to 61% last year compared to 2013, depending on the calculations done.

Palestinian Authority Facing Manhattan Trial

The Palestinian Authority and Palestinian Liberation Organization will be going on trial this week at a Manhattan federal court. The civil suit accuses them of carrying out terrorist acts in Israel.

The trial, which is expected to last up to 12 weeks, will concentrate on multiple shooting and bombing attacks in Jerusalem from 2001 to 2004. The suit, which is over 10 years old, was filed by more than 40 American victims and relatives who suffered in the attacks, which wounded hundreds and killed 33.

The suit was filed based on the Antiterrorism Act of 1990, a law that allows American victims of international terrorism to file a suit in federal court, accuses the Palestinian Authority and the Palestinian Liberation Organization, the governing and political representative of Palestinians, of planning the attacks.

The plaintiffs are looking to claim $1 billion in damages. If both Palestinian groups lose, such damages would be tripled, since such claims made were terrorist acts.

Both Palestinian groups attempted to squash the suit, saying U.S. courts have no jurisdiction over them.

Former Dewey Leaders Trial to Begin in April

The Dewey & LeBoeuf trial will have a starting date.

The now-defunct law firm’s three ex-leaders (Steven Davis, Joel Sanders, and Stephen DiCarmine) will appear in court this April 27 to start the trial, which is expected to last up to six months.

All three were accused of accounting fraud as part of a scheme to conceal the true nature of Dewey’s financial status, which led to the firm’s unexpected collapse in 2012. All three claimed to be innocent and are free on bails while awaiting trial.

In a New York Supreme Court early this week, the trio sat quietly while Justice Robert Stolz pressed counsel of both parties for a trial date. Stolz initially wanted a February start but both parties made delay requests.

Davis’ attorney, Elkan Abramowitz, said he’ll wait until he has knowledge of the Bermuda court outcome regarding the amount of insurance available for his client’s defense.

Condé Nast $8.5M Settlement Approved by U.S. Court

Early this week, Condé Nast won preliminary approval from a federal judge to pay $8.5 million to settle a class action suit by numerous ex-interns who said the publisher paid them too little.

The settlement, which made its way to the public spotlight, is applicable to over 7,500 interns who worked with a number of magazines which include Vogue, the New Yorker, and Vanity Fair.

Ex-interns who were employed at Condé Nast from June of 2007 until now expect to receive payments ranging from $700 all to $2,000.

With the granted preliminary approval, U.S. Judge Henry Pitman from Manhattan indicated the payment to be reasonable enough, saying an estimate conducted by the attorneys of the interns went above 60% of the predicted unpaid earnings.

Outten & Golden, a law firm representing the interns, is planning to go for legal fees amounting to $650,000 or 11% of the settlement fund.

Pitman scheduled the fairness hearing on June 22, 2015, to consider a final approval of the proposed settlement.

Hotels Looking for FCC Advice on Halting Wi-Fi

Are hotels functioning reasonably within the law when they’ve decided to remove unauthorized Wi-Fi access set up on their properties?

A group of hotels including the Marriott International Inc. sent out a petition to the FCC for guidance regarding the issue.

The dilemma is a flashback for certain consumers who think the hotels they’re staying in are forcing people to make use of their Wi-Fi service ---- frequently at a price.

Meanwhile, the communications law prohibit individuals from interfering with any radio communications from any authorized or licensed stations run by the government. Signal jammers are  not allowed by the FCC.

From the perspective of today’s hotels, the law against interference of communications signals should never be applied to Wi-Fi since it doesn’t make use of any licensed spectrum. According to an FCC filing submitted early this year, the hotel industry indicate hotels should be responsible for looking into and dealing with threats to the security of its Wi-Fi network.

Critics say it’s an attempt by hotels to make money by going around the law.