Keep your finger on the legal world's pulse
2nd October 2023
 
THE HOT STORY
Donald Trump and family business to stand trial in civil fraud case
Donald Trump and his family business are set to stand trial in New York today in a civil fraud case. Trump is accused of inflating the value of his assets to secure better loan and insurance terms. The trial comes after a judge found Trump liable for fraud. The penalties he may face include fines, a permanent ban on running businesses in New York, and a five-year restriction on real estate activities. The trial is scheduled to run through early December and involves more than 150 potential witnesses. Trump faces several legal challenges as he campaigns for the 2024 election, but they have not affected his lead in the Republican nomination race. Trump has denied wrongdoing and pleaded not guilty in all cases. Meanwhile, Attorney General Merrick Garland said in an interview Sunday that he would resign if asked by President Joe Biden to take action against Trump. But he doesn't think he'll be put in that position. “I am sure that that will not happen, but I would not do anything in that regard,” he said in an interview on CBS 60 Minutes. “And if necessary, I would resign. But there is no sense that anything like that will happen.” The Justice Department is at the centre of not only indictments against Trump, including an attempt to overturn the 2020 election and improperly keeping classified documents, but also cases against Biden's son Hunter, the aftermath of the Capitol riot, and investigations into classified documents discovered in the president's home and office. Garland has named three different special counsels.
INDUSTRY
Zerorisk offers law firms opportunity to litigate Sudafed class action lawsuits
Leading mass tort and personal injury client acquisition agency ZeroRisk Cases is offering law firms the opportunity to litigate Sudafed class action lawsuits. The company's approach to securing higher settlement awards for law firms has made them a trusted partner in the legal industry. A panel of scientific advisors has determined that the decongestant phenylephrine found in Sudafed is no more effective than a placebo, leading to consumer outrage and a class action lawsuit against Sudafed for misleading claims. ZeroRisk Cases specializes in attracting high-quality litigants for law firms through lead-generation campaigns.

 
Law
ESG
Climate change spurs increase in ESG claims
As climate change causes ice sheets to shrink, fires to engulf our forests and seas to warm, so the number of ESG claims grows, with many cases being found to have direct judicial outcomes which were identified as favourable to climate action. Hannah Sharp, a partner at Rosling King LLP, discusses recent ESG claims, analyses the trends and examines the areas of greenwashing, parent company liability and derivative actions. "The boom in ESG-related claims shows no sign of slowing down. Although most of the claims in this area to date have been brought by NGOs, as the impact of climate change is increasingly felt, further claims will inevitably follow, including claims brought by more diverse categories of claimants against a wider range of defendants," Ms Sharp said.
CYBERSECURITY
Investigation launched into data breach at Orrick
San Francisco-based plaintiffs firm Schubert Jonckheer & Kolbe is investigating a data breach at Orrick that impacted over 460,000 individuals. The breach may have exposed identification and health information. Orrick was hit with two class action lawsuits last month related to the same breach event. Schubert Jonckheer & Kolbe launched a class action investigation into the breach, which impacted over 460,000 individuals. The plaintiffs firm is investigating whether Orrick failed to adequately protect personal information. At least six other law firms have been involved in data breaches this year.

 
Law
FIRMS
Greenberg Traurig faces legal malpractice suit over mishandling of lease negotiations
Greenberg Traurig is facing a legal malpractice suit over its handling of lease negotiations for a baking company. The suit claims that the law firm disregarded the client's demand for the landlord to pay for fire suppression equipment and failed to carry out instructions regarding the timing of roof replacement. The suit alleges that Greenberg Traurig presented a modified contract to the client without including the fire suppression condition. The firm also negotiated a deal that did not set a deadline for roof work completion. The alleged mishandling resulted in damages for the client, including payment of rent before completion of necessary improvements and lost profits. Damascus Bakery is represented by Paul Maselli of Maselli, Mills & Fornal in Princeton.
Securities class-action law firm accused of retaliating against former attorney
U.S. District Judge Loretta Preska has ruled that securities class-action firm Levi & Korsinsky and its founding partners retaliated against former attorney Amy Miller after she sued them for sex discrimination. Miller's claims of retaliation will move forward to trial, while her claims of discrimination based on her sex, familial, and caregiver status will also proceed. However, the judge dismissed Miller's claims of violations of federal and state equal pay laws. Miller alleges that she was underpaid and fired after asking for more money, and she expects the retaliation claim to result in damages in the millions. Levi & Korsinsky denies the allegations. Miller, who is currently of counsel at Cohen Milstein Sellers & Toll, filed the lawsuit in 2020, claiming she was terminated after requesting a fee-based bonus agreement in line with male attorneys at the firm. She also alleged discriminatory comments and unequal treatment at the firm.
CASES
Out-of-state travel sites overturn $50m tax damages award
Priceline.com, Expedia Group, and other out-of-state travel booking sites have successfully overturned a damages award of over $50m for unpaid hotel taxes in Mississippi. The Mississippi Supreme Court ruled that the online travel companies are not subject to the 7% tax levied against the gross income of hotels because they do not furnish rooms. The court stated that the nature of these companies' business is to provide an intermediary service between hotels and customers. The websites of these companies allow customers to search for, compare, and reserve accommodations. This ruling is being seen as a significant victory for the travel booking sites, as it relieves them of a substantial financial burden.
Federal appeals court temporarily halts grant program for Black women-owned businesses
A federal appeals court has temporarily halted the Fearless Fund's grant program, which awards $20,000 to businesses that are at least 51% owned by Black women. The Atlanta-based 11th U.S. Circuit Court of Appeals blocked the program, stating that it is "racially exclusionary" and that the American Alliance for Equal Rights is likely to prevail in their lawsuit against it. The Fearless Fund, which aims to bridge the funding gap for Black female entrepreneurs, remains confident of ultimately prevailing in the case. The grant program is one of several initiatives by the Fearless Fund, as Black women receive less than 1% of venture capital funding. The case has become a test case in the battle over racial considerations in the workplace. The attorneys defending the Fearless Fund argue that the grants are donations protected by the First Amendment, but the appellate panel disagreed, stating that the First Amendment does not give the defendants the right to exclude persons from a contractual regime based on their race. The case highlights the escalating battle over corporate diversity policies.
Delaware judge temporarily blocks dissolution of SPAC over unpaid legal fees
A Delaware judge has issued a temporary restraining order to prevent special purpose acquisition company (SPAC) 26 Capital Acquisition Corp from dissolving before paying its legal fees. The order was granted after law firm Schulte, Roth & Zabel sued to recover over $1.9m in fees for work on a failed merger with the Okada Manila casino resort. The judge's order will expire on 11 October, and a hearing will be held within 10 business days. 26 Capital has stated that it will fight against the legal action. Schulte, which has more than 300 lawyers, has devoted significant time to the finance and merger-related legal work for 26 Capital.
Man exonerated in murder case files lawsuit against Chicago police
A man who spent over three decades in prison for a murder he did not commit has filed a lawsuit against the Chicago Police Department, alleging that officers framed him for the crime. Lee Harris, who was exonerated earlier this year, claims that he was coerced into making false statements and providing a false confession. The lawsuit also accuses the police of withholding evidence and coaching witnesses to lie. Harris hopes that the lawsuit will raise awareness of wrongful convictions and bring justice for the years he lost. He is currently applying for a certificate of innocence. The city's Law Department has not yet commented on the lawsuit.

 

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