| | The Supreme Court ruled Tuesday to limit the role of courts in the review of arbitration decisions under the Federal Arbitration Act. In a majority decision, the high court found that the Federal Arbitration Act provides a narrow set of circumstances for the judicial review of arbitration decisions. However, the court did not completely dismiss the role of the courts in examining the decisions of arbitrators but declined to say what that role might be. AP,Houston Chronicle 03/25/2008 | |
| | A federal judge has approved a $24.4 million settlement between Walgreens and a group of current and former African-American employees. According to the class action and subsequent Equal Employment Opportunity lawsuits, Walgreens discriminated against African-American employees in pay and promotion. In addition to the monetary settlement, the company has also agreed to review its pay and promotions practices. Robert Patrick, St. LouisPost Dispatch 03/26/2008 | |
| | Eli Lilly and Co. has agreed to pay $15 million to Alaska to settle allegations over the antipsychotic drug Zyprexa. Alaska claimed that the drug maker failed to warn consumers about an increased risk of diabetes and weight gain associated with Zyprexa, which ultimately cost the state's Medicaid program millions of dollars. Earlier this month, Connecticut filed a similar lawsuit, claiming that Lilly hid the side effects of Zyprexa and marketed the drug for unapproved uses. Reuters, Reuters 03/26/2008 | |
| | A federal appellate court rejected a New York state law Tuesday that aimed to guarantee better treatment of passengers trapped in delayed airplanes. The 2nd Circuit Court of Appeals found that, while the law was admirable, such legislation was preempted by federal authority to regulate the airline industry. The so-called Passenger Bill of Rights would have required airlines to provide basic necessities, such as food, drinking water and clean bathrooms, to passengers confined to grounded planes for more than three hours. Reuters , Reuters 03/25/2008 | |
| | The deadline for plaintiffs to file the necessary paperwork to receive early payments in the Vioxx settlement has been extended from March 31 to May 1. Merck and the law firm designated to administer the claims decided to extend the deadline in order to accommodate a large number of plaintiffs who are still working on claims. The final deadline for all settlement claims remains July but could be extended to October if necessary. Janet McConnaughey, HoustonChronicle 03/25/2008 | |
| | Morgan Stanley deceived investors by artificially inflating the value of auction rate securities and failing to divulge potential risks, according to a proposed class-action lawsuit filed Tuesday. In the lawsuit, Gary Miller claims the company failed to disclose the volatility of such securities, saddling him and others with investments they could not sell. The lawsuit seeks an injunction against Morgan Stanley and compensatory damages for investors who purchased auction rate securities. Reuters, Reuters 03/25/2008 | |
| | A California judge has granted preliminary approval to a 49-state class action settlement between General Motors and an estimated 20 million plaintiffs. Under the auto-litigation class action settlement, plaintiffs would be entitled $50 to $800 per repair for alleged performance problems in more than 30 models of GM cars. The total cost of the settlement is estimated to be worth $80 million to $150 million to consumers and up to $16.5 million to plaintiffs attorneys. Mathew Hirsch, Law.com 03/26/2008 | |
| | Examines how foreign courts do not uphold punitive damages awarded in US courts. Historically, these courts believe private lawsuits brought by injured people should have only one goal — compensation for a loss and punishment should be handled by the criminal justice system. However, some experts believe that the traditional hostility toward punitive damages, in foreign courts, may be dissipating. Adam Liptak, The New York Times 03/26/2008 | |
| | Questions raised by the Federal Aviation Administration's maintenance audit forced American Airlines to cancel about 9 percent of its flights on Wednesday. The world's largest air carrier grounded the planes to re-inspect wiring in the Boeing Co. MD-80, according to a statement by the airline. The MD-80 comprises about 46 percent of the American Airlines fleet. Mary Schlangenstein, Bloomberg 03/26/2008 | |
| | A study that claimed 80 percent of lung cancer deaths could be prevented by the increased use of CT scans was financed by a charity underwritten by a cigarette maker, according to a New York Times report. The study, published in a 2006 edition of the New England Journal of Medicine, was paid for by a charity called the Foundation for Lung Cancer: Early Detection, Prevention & Treatment. Tax records show that the charity received the vast majority of its financing from the parent company of the Liggett Group, the maker of several brand of cigarettes. Gardiner Harris, The New York Times 03/26/2008 | |
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