About Jaffe Associates ( www.jaffeassociates.com)Jaffe Associates is the leading public relations firm serving the legal industry in North America and Europe, offering media relations, crisis communications, strategic consulting, and creative support. Established 30 years ago, Jaffe operates as a fully virtual company with a staff of experienced law firm marketers located nationwide. Our goal is to Make It Happen for our clients: to drive business to their own businesses through a combination of Classic Public Relations and Public Relations and Web 2.0.News Contact: Liz Lindley
Email: lindleyl@jaffeassociates.com
Phone: 201-767-2690
JLNS BREAKING NEWS: Second Circuit Rules on Corporate Scienter, Dismisses Dynex Case
Second Circuit Rules on Corporate Scienter, Dismisses Dynex Case

In a closely-watched appeal raising the issue of corporate scienter, the Second Circuit today ordered the dismissal of a class action suit against Dynex and Merit.

The central issue in Teamsters Local 445 Freight Division Pension Fund vs. Dynex Capital Inc. involved corporate scienter, or whether the defendant companies could be found to have committed securities fraud even if their individual employees did not.

“The Second Circuit held that while it was possible as a matter of legal theory for a plaintiff to plead fraudulent intent as to a company without pleading it as to an individual, the standard for doing so is very high, and in the vast majority of cases claims against a company can proceed only if scienter is pleaded as to an individual,” said Edward J. Fuhr, a partner with Hunton & Williams LLP (Richmond, Va.) and lead litigation counsel to Dynex. “The Court also noted that to prove corporate scienter, plaintiffs must ultimately prove an individual acted with scienter.”

The stakes were high in the Dynex case, with amicus briefs having been filed by the Business Roundtable, the U.S. Chamber of Commerce and the Securities Industry and Financial Markets Association. The outcome will have broad implications for corporate America.

“With this decision, the Second Circuit joins the majority of Circuits that have rejected efforts by the plaintiffs’ securities class action bar to expand the reach of the federal securities laws to companies against whom no credible allegations of fraud can be made,” said Fuhr.

Fuhr is available to discuss the Dynex ruling and its implications. A copy of the Second Circuit’s opinion is also available.

News Contact: Kevin Aschenbrenner
Email: aschk@jaffeassociates.com
Phone: 250-294-8431
JLNS BREAKING NEWS: DOJ and FBI Crack Down on Mortgage Fraud, Indict Two Bear Stearns Managers
DOJ and FBI Crack Down on Mortgage Fraud, Indict Two Bear Stearns Managers

The Department of Justice (DOJ) and Federal Bureau of Investigation announced today “Operation Malicious Mortgage,” as a strong commitment and enforcement response against mortgage fraud, and recently arrested hundreds of individuals around the country as a show of force. Federal authorities also issued separate indictments against two former Bear Stearns managers.

Perspectives:

a. Mortgage Lenders Most Often the Victims of Fraud
“Federal and state prosecutors have long been a friend of the lending industry in the prosecution of mortgage fraud. While it is encouraging that the DOJ now recognizes that mortgage fraud can affect the nationwide economy and every consumer, to characterize ‘lending fraud’ as that committed by mortgage industry professionals without further definition paints a false picture,” says Linda S. Finley, a shareholder in Baker Donelson’s Atlanta office who focuses on mortgage fraud, and co-chair of the firm’s Mortgage Industry Service Team. “The mortgage flip schemes defined by DOJ fail to recognize that most often the mortgage lender is victimized by brokers, property sellers, so-called real estate investors, appraisers and the borrowing consumer, each of whom who reap the benefit of mortgage fraud dollars. The mortgage lending industry has for years been in the forefront of investigation and prosecution of fraudsters, often working hand in hand with law enforcement and state and federal prosecutors. A general definition of mortgage fraud is difficult - there are such a variety of scams and too many participants to generalize; but to paint mortgage lenders as fraud participants when they lose hundreds of millions of dollars each year on account of shady borrowers and other scam artists is just wrong.” Finley has tried more than 300 jury trials to verdict and concentrates her practice in business litigation involving the mortgage lending and servicing industries and litigation regarding real estate issues. She is available for interviews.

News Contact: Vivian Hood
Email: hoodv@jaffeassociates.com
Phone: 904-220-1915

b. Indictments Like Throwing Gasoline on Already-Raging Fire
“These indictments will be like throwing 1,000 gallons of gasoline on the already raging fire that is sweeping through Wall Street,” says Scott A. Meyers, head of the Litigation Practice at Levenfeld Pearlstein LLC (Chicago), who focuses his practice on securities matters. “At issue here are all of the current hot topics: hedge funds, credit crisis, mortgage markets, sub prime, Bear Stearns, portfolio valuation, risk controls, and investor disclosure. With all of these issues now wrapped together with allegations of securities fraud and criminal misconduct, this is going to be a feeding frenzy for the plaintiffs' bar and I expect to see significant follow-on civil litigation, as well as increased regulatory scrutiny in this space.” Meyers is available for interviews.

News Contact: Jason Milch
Email: milchj@jaffeassociates.com
Phone: 312-846-9647

JLNS BREAKING NEWS: Water Industry Leaders Launch Water Policy Institute to Address Current Challenges
Water Industry Leaders Launch Water Policy Institute to Address Current Challenges
Christine Todd Whitman to serve as chair; Hunton & Williams lawyer as director

WASHINGTON – A consortium of water leaders today announced the formation of The Water Policy Institute. Chaired by former EPA Administrator and New Jersey Governor Christine Todd Whitman, the Institute will address water-related issues and provide information to the public through its website. Kathy Robb, a partner in the Resources, Regulatory and Environmental Law practice at the law firm Hunton & Williams LLP, is the founder of the Institute and will serve as its director.

The members of the Institute are water leaders representing water districts, multi-national companies, and energy companies who will discuss and review current challenges affecting both global and local water issues including supply, quality, use, wildlife and agricultural concerns, and climate change. Members, including BP, Central Arizona Project, and GE Water, will develop white papers on current issues and provide thought leadership on legal and regulatory issues involving water, and collaborate to propose sustainable solutions. The Institute’s Advisory Panel is comprised of leading water experts, among them scientists, academics, former government officials, NGO professionals and other prominent water leaders.

“I believe water is one of the most pressing environmental issue facing our world today. Water issues have escalated in our country and worldwide, with record droughts, threats to water quality, and cross-border disputes over water. The Institute provides a one-of-a-kind forum for water leaders to consider the problems and develop new ideas and potential solutions,” said Christie Whitman, who is currently president of The Whitman Strategy Group, a consulting firm that specializes in energy and environmental issues. “Water issues impact all of us, from companies that deliver and manage water and industries that require a reliable supply of quality water to operate, to individual consumers and those who work to protect our environment. The Water Policy Institute brings together various viewpoints in a quest for sustainable, workable solutions,” said Whitman.

“Over the years, I have seen a number of changes in the issues surrounding water and its use, including new regulations and significant litigation between states and disputes between countries regarding water use, supply, allocation and quality. These and so many other water-related issues touch upon our individual lives as well as the operations of manufacturers, developers, suppliers, financial institutions, water districts and nearly every industry, worldwide,” said Robb. “Water is uniquely global and local. If you are going to address water issues, you have to start at the local level where people get their water but at the same time you must look at the global impact. Members of the Institute, who cross industries and geographic boundaries, will provide thought leadership on these legal and regulatory issues and policies.”

The Institute’s Advisory Panel members are: Leslie Carothers, President, Environmental Law Institute; Gabriel Eckstein, Professor, Texas Tech School of Law; Paul Faeth, Executive Director, Global Water Challenge; David Freestone, Senior Adviser, World Bank; Craig Manson, Professor, McGeorge School of Law; Tracy Mehan, Principal, The Cadmus Group; Mark Van Putten, President, ConservationStrategy LLC; and Robert Stavins, Professor, Harvard University.

“There are many critical issues surrounding water availability and use. I’m pleased to be part of this group which will provide a important forum for candid discussion and real-world solutions,” said Robert N. Stavins, a member of the Institute’s Advisory Panel and Albert Pratt Professor of Business and Government at Harvard University's John F. Kennedy School of Government, where he directs the Harvard Environmental Economics Program. “This is an important time for public policy affecting water supply, water demand, and water quality. The Institute provides a key venue for industry leaders, NGO representatives, and others to participate in informed discussions, vital to arriving at workable and sustainable answers.”

The Institute is accessible to the public at www.waterpolicyinstitute.com, which provides information about water issues; a calendar of key water meetings and conferences; news, articles, legislative materials and speeches; and links to regulatory sites.

The Water Policy Institute, formed in May 2008, is a non-partisan, member-driven organization of water leaders, including scientists, academics, water users, industries, water suppliers, government entities and non-governmental organizations. Its purpose is to collaboratively develop innovative, sustainable solutions for water supply and quality issues, and to provide leadership on legal, regulatory and policy issues involving water locally, nationally, and internationally. Christine Todd Whitman is Chair of the Institute; Kathy Robb of the law firm Hunton & Williams is Director of the Institute. Please visit www.waterpolicyinstitute.com for more information.

About Hunton & Williams LLPHunton & Williams provides legal services to a broad array of entities, including corporations, financial institutions, governments and individuals. Since our establishment more than a century ago, Hunton & Williams has grown to more than 1,000 attorneys serving clients in 100 countries from 18 offices around the world. While our practice has a strong industry focus on energy, financial services and life sciences, the depth and breadth of our experience extends to more than 100 separate practice areas, including bankruptcy and creditors rights, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, products liability, and privacy and information management. For additional information visit our website at www.hunton.com.

News Contact: Kevin Aschenbrenner
Email: aschk@jaffeassociates.com
Phone: 250-294-8431
JLNS BREAKING NEWS: Jury Awards Grantley $66 Million in Patent Infringement Suit Against Clear Channel Communications
Jury Awards Grantley $66 Million in Patent Infringement Suit AgainstClear Channel Communications

MINNEAPOLIS (April 2008) - A jury in the United States District Court, Eastern District of Texas, Lufkin Division., has awarded $66,029,750 to Grantley Patent Holdings, Ltd. in a patent infringement trial. On April 22, the jury found that Clear Channel Communications, Inc. infringed Grantley's intellectual property regarding integrated inventory management systems for multiple radio stations. After a seven-daytrial, the jury found that the infringement was willful, which may allow for damages to be trebled.

In an earlier motion relating to this case, the Court granted Grantley's motion for summary judgment of no inequitable conduct on March 31, 2008, and noted that Clear Channel's allegations of inequitable conduct were supported by "paltry" evidence.

Grantley is the patent holding sister company of Maxagrid International, Ltd., a leading producer of yield management software for radio stations.

Trial counsel for Grantley were Ronald J. Schutz, chair of the Intellectual Property Litigation Practice Group at Robins, Kaplan, Miller & Ciresi L.L.P., and Emmett J. McMahon, a partner at the firm whose practice focuses on intellectual property litigation. Grantley was also represented at trial by Larry Germer of Germer Gertz, L.L.P., located in Beaumont, Texas.

"We are very pleased that the jury understood the complex issues in the case and found that Clear Channel had infringed Grantley's patents," said Mr. Schutz.

The case is Grantley v. Clear Channel Communications, et al.

Robins, Kaplan, Miller & Ciresi L.L.P. (www.rkmc.com) represents Fortune 500 corporations, emerging companies, entrepreneurs and individuals as both plaintiffs and defendants. The firm is frequently engaged in high-stakes, complex litigation with significant bottom-line implications for their clients, and the business lawyers handle complex transactions in a variety of market segments. The Robins, Kaplan, Miller& Ciresi Foundation for Children makes sizeable financial contributions toward narrowing education and health gaps. The firm has over 250 lawyers located in Atlanta, Boston, Los Angeles, Minneapolis, and Naples (FL).

News Contact: Vivian Hood
Email: hoodv@jaffeassociates.com
Phone: 904-220-1915
JLNS BREAKING NEWS: President Bush Announces Emissions Plan
President Bush Announces Emissions Plan

Sets National Goal to Halt Growth in U.S. Greenhouse Gas Emissions by 2025

In a Rose Garden speech April 16, President George W. Bush for the first time called for stopping the growth of U.S. greenhouse gas (GHG) emissions no later than 2025.

“The new 2025 goal continues the Administration’s long-term strategy of slowing, stopping, then reversing the U.S. emission of GHGs, and represents the next step from the President’s 2002 announced goal to reduce America’s GHG ‘intensity’ by 18 percent through 2012,” said Joseph C. Stanko, Jr., who chairs the Government Relations Practice Group at Hunton & Williams LLP (Washington). “The President also stated that any approach to GHG emissions reductions must strengthen energy security and grow the U.S. economy, and not stifle development in the developing world.”

The President also mentioned Senate Majority Leader Harry Reid’s intent to bring the Lieberman-Warner legislation to the Senate floor in early June. He stated that there is a right and a wrong way to go about passing national legislation, and that the major bills under discussion represent the wrong way because they increase the price of gasoline, home heating fuel, and energy, as well as raise taxes, duplicate mandates and demand sudden and drastic emissions cuts that are unachievable. In the President’s view, the “right way” is to ensure that all major economies take action, but not in a way that starts trade wars or protectionist barriers.

“Given the President’s veto power, his statements regarding the current Lieberman-Warner legislation put a sharp focus on the topics that must be resolved in order for the bill to have any chance of passage,” said Stanko. “It is clear that much progress remains to be made on issues such as cost-containment mechanisms, technology incentives, the role of nuclear power, potentially duplicative state/federal authority, full international participation, and other matters.”

Stanko noted companies and other stakeholders should carefully monitor the Senate’s ongoing negotiations, especially for individual issues that might be resolved this year, even if an overall agreement remains out of reach.

In terms of international climate change negotiations, the President noted that the next session of the Major Economies Meeting (MEM) begins this week in Paris. He said the MEM discussions are an attempt to get beyond the impasse created by the Kyoto Protocol’s distinction between developing versus developed nations.

“The MEM process makes no distinction regarding development status; rather it seeks binding commitments from the 17 largest GHG emitters to an emissions reduction plan,” said Stanko. “It will be a difficult task, but if the MEM framework is agreed to by its members, it could gain traction within the United Nations process and be put into play as a successor to the existing Kyoto Protocol.”

Stanko is available to discuss the President’s plan for reducing growth in GHG emissions by 2025, and its implications for current legislation, international negotiations, as well as industry stakeholders.

News Contact: Kevin Aschenbrenner
Email: aschk@jaffeassociates.com
Phone: 250-294-8431
JLNS BREAKING NEWS: Federal Judge Issues Landmark Ruling in Arms Export Control Act Case
Federal Judge Issues Landmark Ruling in Arms Export Control Act Case

Axion Wins Unprecedented Decision in Battle with U.S. Department of Justice

BIRMINGHAM, AL - In a precedent-setting legal ruling against the U.S. Department of Justice, an Alabama defense contractor who was acquitted of violating the Arms Export Control Act (AECA) and other charges in a six count indictment following a seven day trial in 2007 will now be awarded legal expenses incurred while defending his federal prosecution.

Birmingham U.S. District Court Judge Inge Johnson has ruled that Axion Corporation and owner Alex Latifi are entitled to government reimbursement for legal fees and costs incurred as a result of the government’s three year criminal investigation and civil forfeiture action against them. The Justice Department, Army, FBI and Customs Service began investigating Latifi and Axion in 2003 when Axion employed about 60 people and had annual revenues of about $4 million. In the course of the investigation, the government froze $2.5 million of Latifi’s business and personal assets, seeking to seize it as ill-gotten gains. The forfeiture action and criminal indictment, brought by federal prosecutors and led by Birmingham U.S. Attorney Alice Martin, alleged Latifi broke the law by illegally exporting sensitive military technology involving aircraft parts for the Army’s Black Hawk helicopter to China. Following Latifi and Axion Corporation’s October 2007 acquittal on all counts in the corresponding criminal action, the government moved to dismiss the civil forfeiture action against them as well, but fought Axion and Latifi’s request for attorneys’ fees.

In her order, Judge Johnson said the fees, which Latifi’s attorneys have indicated could be in excess of half a million dollars, were being awarded to Axion and Latifi under the Civil Asset Forfeiture Reform Act (CAFRA), a 2000 law designed “to give owners innocent of any wrongdoing the means to recover their property and make themselves whole after wrongful government seizures.” The order follows the government’s recent decision to withdraw its request for a ruling from the court that the asset seizure had reasonable cause. The withdrawal foreclosed Latifi’s efforts to depose U.S. Attorney Alice Martin and to examine the Justice Department’s prosecutive memos and investigative methods in the case. Johnson’s decision to award fees according to CAFRA is groundbreaking, and is likely the first of its kind in Alabama or the Eleventh Circuit. Latifi and Axion made a similar request for fees under the Hyde Amendment in the criminal action as well, which is currently pending before the Eleventh Circuit Court of Appeals.

“It’s a revolutionary ruling and case,” said Henry Frohsin, the Birmingham, Alabama defense attorney with Baker, Donelson, Bearman, Caldwell & Berkowitz who represented Latifi, along with colleagues Jim Barger, Catherine Long, Elliott Walthall, and Doreen Edelman. “We believe Axion is the only company ever to win such a ruling in an arms export control case. We could not be more pleased for Alex Latifi and his company but the battle is far from over. His family-owned $50 million dollar defense contracting company has basically been decimated. Alex is now fighting to get his company and his reputation back, and the government remains a fierce opponent.”

In 2007, there were more than 100 Arms Export Control Act criminal prosecutions by the Department of Justice. Axion is the only case that the Department lost, as most AECA charges result in guilty pleas. The Baker Donelson attorneys believe this case will change the way the DOJ does business. “The Axion case is a clear signal to the DOJ and to future defendants that a guilty plea is not always the answer to an AECA charge,” said Jim Barger. “The Axion case may ultimately have the positive effect of encouraging the government to focus on developing meritorious cases, rather than pursuing weak or marginal cases of dubious merit.”

Baker, Donelson, Bearman, Caldwell & Berkowitz, PC is one of the 100 largest law firms in the country. Through strategic acquisitions and mergers over the past century, the Firm has grown to include more than 540 attorneys, and public policy and international advisors. Baker Donelson represents clients across the U.S. and abroad from offices in Alabama, Georgia, Louisiana, Mississippi, Tennessee, Washington, D.C., and a representative office in Beijing, China.

News Contact: Tom Stanton
Email: stantont@jaffeassociates.com
Phone: 312-265-0306
JLNS BREAKING NEWS: U.S. Supreme Court Decision Limits Appeals in Arbitration
U.S. Supreme Court Decision Limits Appeals in Arbitration

Ruling denies an expanded review of arbitration awards by the courts

A 6-3 decision by the U.S. Supreme Court today limits the role of federal courts in reviewing arbitration awards.

The Supreme Court examined Hall Street, Associates, L.L.C. v. Mattel, Inc. to determine whether to expand the circumstances in which appeals of arbitration rulings would be allowed. The Federal Arbitration Act dictates that arbitration awards can only be vacated in limited cases involving matters such as fraud, corruption, partiality or when arbitrators exceed their powers.

“If the Supreme Court had ruled that arbitration awards could be appealed like court’s orders, it would have sent a negative jolt through the entire arbitration process,” says H. Roderic Heard, a partner at Wildman Harrold (Chicago) who has lectured and taught at several law schools on alternative dispute resolution.

“Arbitration is a preferred method of dispute resolution for many companies because it is speedy, economical, and final. Allowing the appeal of arbitration rulings would bog down the entire process, destroying the finality that exists with arbitration awards currently and rendering arbitration as a legal option much less attractive to the business community. The court’s decision that arbitration awards cannot be appealed is, on balance, a win for the arbitration process.”

Heard is available for interviews to discuss the ruling by the Supreme Court and the potential ramifications.

News Contact: Tom Stanton
Email: stantont@jaffeassociates.com
Phone: 312-265-0306
JLNS BREAKING NEWS: Parents of Madeleine McCann Awarded Unprecedented Libel Settlement
Parents of Madeleine McCann Awarded Unprecedented Settlement in Libel Case

UK newspapers apologize for “utter falsity” of dozens of stories following girl’s disappearance

The Express newspaper group in the UK will pay a reported £550,000 (USD $1,089,568.97) in damages to the Find Madeline Fund in the settlement of a libel case (taken by the parents of Madeline McCann) over reports of the girl’s disappearance. They will also have to pay the McCanns' legal costs, which will be substantial.

The lawsuit focused on approximately 100 articles published over a number of months in the newspapers, which carried the general theme that the McCanns were responsible for their daughter Madeleine’s death, that there were strong or reasonable grounds for suspecting this, and that they had disposed of her body and covered their actions.

“It is difficult to conceive of a more serious allegation than to be accused of being responsible for the death of one’s own daughter,” said the McCanns in a statement in open court on Tuesday.

In acknowledgement that the stories were untrue, four Express newspapers will publish front-page apologies to the parents. On Wednesday, the Daily Express and Daily Star both carried front-page apologies under the headline, "Kate and Gerry McCann: Sorry".

“This is unprecedented,” said Niri Shan, a media lawyer with international law firm Taylor Wessing (London). “This is a huge amount of money in the context of settlement awards in the UK. Moreover, the last front page apology in a libel action I can remember resulted after the Sun published a story about Elton John's sex life in the 1980s.”

Shan said this case sends a clear warning of the seriousness of libel actions to other newspapers and media outlets worldwide.

“As a result of this settlement, other newspapers will rightfully be concerned about whether action will be taken against them for similar stories published. Publishers will no doubt be trawling their archives to double-check copy today, following this case,” he said.

Shan is available to comment on this topic and its potential effect on similar libel actions in other jurisdictions.

News Contact: Pamela Ulijasz
Email: ulijaszp@jaffeassociates.com
Phone: 608-245-9223
Potter Anderson & Corroon Launches First-of-its-Kind Software
Potter Anderson & Corroon Launches First-of-its-Kind Software

Free mobile access to Delaware statutes on BlackBerry(R) smartphones

Lawyers and businesspeople can now access the full text of Delaware corporate and business statutes directly from their BlackBerry smartphones.

Delaware law firm Potter Anderson & Corroon LLP just launched eDelaware (TM), a free mobile, wireless service that provides instant access to the full text of key Delaware statutes, along with case law summaries, through a BlackBerry smartphone device. It is the first mobile software developed by a law firm that allows for access to important statutes and case law summaries on a Blackberry smartphone.

But eDelaware isn’t just for lawyers in Delaware.

“Because Delaware is a jurisdiction of choice for the incorporation and formation of business entities, we thought many attorneys would find it useful to be able to pull out their BlackBerry smartphone, to check a statute when they are on the road or in a meeting,” said Scott E. Waxman, a partner at Potter Anderson and the mind behind eDelaware. “This is a sophisticated and essential tool for anyone who must stay connected and up-to-date on the most recent legal developments in Delaware business law while on the go.”

The key advantage to eDelaware is that it stores the information on the user's Blackberry smartphone, making it accessible even when no wireless connection is available. Then, as long as the user's Blackberry smartphone is within range of wireless coverage, amendments to statutes and new case law summaries are downloaded with no intervention by the user and without disrupting other functions on the device.

More information is available at www.potteranderson.com/edelaware.html and Waxman is available for interviews or to write articles about the new software.

News Contact: Cari Brunelle
Email: brunellec@jaffeassociates.com
Phone: 302-656-6096