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Health law court case winner could be political loser
Law & Court News | 2015/06/04 22:39
The party that wins the impending Supreme Court decision on President Barack Obama's health care law could be the political loser.
 
If the Republican-backed challenge to the law's subsidies for lower-earning Americans prevails, the GOP would have achieved a paramount goal of severely damaging "Obamacare." But Republican lawmakers would be pressured to help the millions of Americans who could suddenly find government-mandated medical coverage unaffordable — and they'd face blame from many voters if they failed to provide assistance.

"If you win the case you actually have people who lost their insurance. You now share the responsibility for fixing it," said former Rep. Tom Davis, R-Va., who once led the House GOP campaign committee. "And you've got a lot of pissed off people. That hurts you."

Should the Obama administration win, relieved Democrats would crow that Obama's foremost domestic achievement had stood unscathed. But some say they'd have lost a potentially powerful cudgel for the 2016 campaigns: Being able to accuse Republicans of ending the assistance and disrupting health coverage for many.

If Democrats lose in court, "It completely reverses the issue and puts us back on offense on health care," said Rep. Steve Israel, D-N.Y., one of his party's chief message crafters.


Pandora loses to BMI in court hearing, vows to appeal
Law & Court News | 2015/05/16 16:54
Pandora Media Inc. lost a court hearing Thursday in a dispute with music publishing rights group BMI over royalty rates, but the Internet streaming leader said it will appeal.

Pandora said it's confident it can win later since the appeals court — the 2nd U.S. Circuit Court of Appeals in New York — last week ruled in its favor in a case against the other major publishing group known as ASCAP.

Thursday's ruling would force Pandora to pay 2.5 percent of its revenue to songwriters and music publishers, up from 1.75 percent. Last week's appeals court ruling allowed Pandora's 1.85 percent rate to ASCAP to stay intact.

If the appeal fails, Pandora says its costs could rise by 0.8 percent of revenue, which would have amounted to about $1.7 million last quarter.

BMI called the ruling a victory for the more than 650,000 songwriters, composers and publishers it represents.


Retired Army Colonel Pleads Guilty to Breaking Law in Job Hunt
Law & Court News | 2015/04/15 15:31
A retired Army colonel pleaded guilty to negotiating his post-military employment with a helicopter company that did business with the Defense Department office he ran while still in uniform, according to court records filed Tuesday by U.S. government attorneys.

The former officer, Norbert Vergez, caused the terms of a contract to be adjusted so that the company would be paid faster, said a plea agreement detailing the charges. Vergez also failed to disclose on his ethics form that he had received a $30,000 check from a second company for relocation expenses. Officers of Vergez's seniority are typically allowed to be reimbursed by Defense Department for their final moving expenses.

The companies are not named in the records, which were filed in U.S. District Court in Alabama. But the documents describe MD Helicopters in Mesa, Arizona, and Patriarch Partners, a private equity firm in New York. Both companies are owned by Wall Street executive Lynn Tilton.

Vergez, 49, went to work for Tilton three months after retiring from military service in November 2012. Attorneys for Vergez did not respond to a request for comment.

The Associated Press reported in March 2014 that Vergez and Tilton were in unusually close contact for more than a year before he retired.

In an emailed statement, Patriarch Partners said it and MD Helicopters cooperated fully with the government's investigation. "Mr. Vergez's plea agreement does not contain any allegations of improper conduct by MD Helicopters, Patriarch Partners, or any of its personnel," according to the statement.


Jury finds ex-San Francisco bank executive guilty of fraud
Law & Court News | 2015/03/31 14:19
A former executive of a San Francisco-based bank that received federal bailout money has been convicted of fraud.

U.S. Attorney Melinda Haag said Thursday a federal jury in Oakland found 66-year-old Ebrahim Shabudin guilty of conspiring with others within the bank to falsify key bank records as part of a scheme to conceal millions of dollars in losses and falsely inflate the bank's financial statements.

Shabudin was Chief Operating Officer for United Commercial Bank between 2008 and 2009.

United Commercial Bank received $298 million from the Troubled Asset Relief Program, or TARP, in 2008 during the height of the nation's financial crisis. That money was lost when the bank was seized by regulators, shuttered and filed for bankruptcy the following year. Shabudin faces up to 25 years in prison.


Battle flag at center of Supreme Court free speech case
Law & Court News | 2015/03/23 10:31
Texas commemorates the Confederacy in many ways, from an annual celebration of Confederate Heroes Day each January to monuments on the grounds of the state Capitol in Austin. Among the memorials is one that has stood for more than a century, bearing an image of the Confederate battle flag etched in marble.

But you're out of luck if you want to put that flag on your license plate. Texas says that would be offensive.

Now the Supreme Court will decide whether the state can refuse to issue a license plate featuring the battle flag without violating the free-speech rights of Texans who want one. The justices hear arguments Monday in a challenge brought by the Texas division of the Sons of Confederate Veterans.

The group sued over the state's decision not to authorize its proposed license plate with its logo bearing the battle flag, similar to plates issued by eight other states that were members of the Confederacy and Maryland.

The First Amendment dispute has brought together some unlikely allies, including the American Civil Liberties Union, anti-abortion groups, Americans United for Separation of Church and State, civil libertarian Nat Hentoff and conservative satirist P.J. O'Rourke.


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