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Leading the NewsWhite House vows to work "overtime" to mitigate spill's damage.Under the headline "White House In PR 'Panic' Over Spill," Politico (5/5, Thrush, Allen) reports the oil spill is "threatening" the President's "reputation for competence. ... So White House aides are escalating their efforts to reassure Congress and the public in the face of a slow-motion catastrophe, even though it's not clear they can bring it under control anytime soon." One senior Administration official said, "There is no good answer to this. ... There is no readily apparent solution besides one that could take three months. ... If it doesn't show the impotence of the government, it shows the limits of the government." The story continues later that "the promise of rational, responsive and efficient government is Obama's brand, his justification for bigger and bolder federal interventions," so, according to an Administration official, "there was a 'little bit of panic'...when White House aides sensed the oil spill narrative getting away from them last week." Administration supports efforts to lift damages cap retroactively. Meanwhile, the AP (5/5, Daly, Werner) reports, "the White House is pushing to lift the limit on how much BP pays" for the spill, as "Press Secretary Robert Gibbs said Tuesday the administration wants to work with Congress to change a law that caps at $75 million BP's liability for economic damages like lost wages or dwindling tourist dollars." Currently, Sen. Robert Menendez (D-NJ) "is co-sponsoring a measure that would raise the liability limit to $10 billion," which he wants "to be made retroactive so it can apply" to the BP spill. Gibbs said that the Administration "supported Menendez's attempts to raise the limit retroactively," while noting that "if BP is found to have acted negligently or violated the law, the cap would not be in effect." BP's oil rig exempted from environmental impact analysis. According to government documents, the Washington Post (5/5, Eilperin) reports, the Interior Department's Minerals Management Service "exempted BP's calamitous Gulf of Mexico drilling operation from a detailed environmental impact analysis last year...after three reviews of the area concluded that a massive oil spill was unlikely." The agency's decision "to give BP's lease at Deepwater Horizon a 'categorical exclusion' from the National Environmental Policy Act (NEPA) on April 6, 2009 -- and BP's lobbying efforts just 11 days before the explosion to expand those exemptions -- show that neither federal regulators nor the company anticipated an accident of the scale of the one unfolding in the gulf." And have lead environmentalists and some key senators to call "for a reassessment of safety requirements for offshore drilling." BP plans to drop dome over well as cleanup continues. The CBS Evening News (5/4, story 5, 3:10, Couric) reported, "BP's chief executive said today workers may be able to stop most of the oil leak by early next week. They plan to drop a concrete dome over the blown-out undersea well. For now, there's nothing to stop the flow of oil that's closing in on the gulf coast." CBS later added, "This oily blob now sprawls across 2,000 square miles, 1400 square miles smaller than last week. As chunks of it break away. And landfall is still not projected for the next three days." ABC World News (5/4, story 7, 2:05, Sawyer) reported, "BP says it has not found any oil that has come ashore yet, but from the sky today, our helicopters saw clear signs of oil ashore on the southern tip of the Mississippi Delta. Most of the oil still at sea and the weather calming, officials are scrambling to contain it." Rear Adm. Mary Landry, US Coast Guard, said, "We do have a gift of time. A little bit of time. But I'm not – I'm not resting." NBC Nightly News (5/4, story 7, 2:15, Williams) reported, "For the people working on the water there was a nice break today from the weather. The wind and waves diminished, meaning more people could go out to try to stop the oil. Today Coast Guard skimmers were also back on the water collecting oil, as BP promised to have a container dome designed to cover the main oil leak installed over the weekend to funnel the oil out to a container ship." However, the New York Times (5/5, Broder, Robertson, Krauss) reports, a senior BP executive conceded in a closed-door briefing for members of Congress "that the ruptured oil well in the Gulf of Mexico could conceivably spill as much as 60,000 barrels a day of oil, more than 10 times the estimate of the current flow." And although the company faces "a crisis similar to what the Toyota Motor Company had with uncontrolled acceleration," it has rejected the idea of a broad advertising campaign, with BP spokesman Andrew Gowers explaining, "In our view, the big glossy expressions of regret don't have a lot of credibility." Suit says oil rig workers stranded at sea. The AP (5/4) reported, "Three workers forced to escape on lifeboats after an explosion aboard an offshore drilling platform claimed in a lawsuit Tuesday that they were kept floating at sea for more than 10 hours while the rig burned uncontrollably." The lawsuit, "filed in county court in Galveston, Texas, seeks unspecified damages on behalf of rig workers Joshua Kritzer, Bill Johnson and Nick Watson, all from Louisiana; and the family of Aaron Dale Burkeen of Mississippi, one of 11 workers missing and presumed dead following the April 20 explosion." Property owners may seek to recover losses. Bloomberg News (5/4, Gittelsohn, Brandt) reported, "Lawsuits are one avenue real estate owners may use to recover losses tied to the oil spill, said Robert Hartwig, president and economist for the Insurance Information Institute, an industry research center in New York." Robert Cunningham of Cunningham Bounds LLC in Mobile, Alabama, which has "filed suits on behalf of fishermen and property owners in federal courts in Florida and Alabama," said, "There are questions of diminution of value, clean-up costs and all kinds of issues for the population and condo owners." Transocean had concerns over safety. The AP (5/4) reported, "Transocean Ltd., which owned the drilling rig that exploded in the Gulf of Mexico, eliminated bonuses for top executives last year over concerns about safety problems at the company. The company said in a regulatory filing on April 1 that it eliminated the bonuses 'to underscore the company's commitment to safety' after four workers died in accidents in 2009 'and to increase the incentive for executive officers to promote ... the avoidance of future fatal accidents.' Less than three weeks later, the company's Deepwater Horizon rig, which it leased to BP PLC, blew up and sank."
AAJ in the NewsLipsen succeeds Henderson as AAJ CEO.In continuing coverage, CongressDaily (5/4) reported, "The American Association for Justice has promoted Linda Lipsen from executive vice president for public affairs to chief executive officer. She succeeds CEO Tom Henderson, who held the position on an interim basis for a year. Since 1993, Lipsen has led the advocacy and lobbying team at AAJ, formerly known as the Association of Trial Lawyers of America." Politico (5/5, Milfeld, Lee) reports, "At the helm, Lipsen will continue the association's long fight to promote the accessibility of the U.S. civil justice system against efforts to limit it. 'Linda's commitment to representing and advocating for injured patients, workers and consumers has been the bedrock of AAJ's mission for many years,' said AAJ President Anthony Tarricone." Simmons announces settlement of antitrust lawsuit.In a press release (5/3), Simmons Browder Gianaris Angelides & Barnerd LLC wrote, "Simmons Browder Gianaris Angelides & Barnerd LLC of East Alton, Ill., today announced the resolution of their client Synergetics USA, Inc.'s (Nasdaq: SURG) antitrust lawsuit pending against Alcon Laboratories, Inc., and Alcon, Inc. Synergetics announced on April 27, 2010, that it had entered into a Settlement and Licensing Agreement and a Supply Agreement with Alcon, pursuant to which all litigation between the companies would be settled and Alcon would receive a license to sell certain Synergetics-patented products. Alcon will pay Synergetics $32 million in the arrangement." In "a unique approach to commercial litigation," Simmons "took on the high-risk litigation under a contingency fee arrangement, whereby Synergetics would pay attorneys' fees only as a percentage of any recovery in the case." Derek Brandt, "the Simmons firm partner who spearheaded the firm's efforts in the case," said, "Our willingness to take the case on a contingency basis meant that a relatively small company like Synergetics could pursue a high-stakes litigation against an infinitely larger competitor. We shared the risk with our client and reached a very gratifying result." Civil Justice System
New York homeowners sue Chase over loan modifications.Crain's New York Business (5/4, Fung) reported, "Three Queens homeowners filed a lawsuit against J.P. Morgan Chase Bank N.A. and two of its subsidiaries, Chase Home Finance and Washington Mutual Bank, claiming that the groups illegally delayed and denied their applications for permanent foreclosure relief under the federal Home Affordable Modification Program. The lawsuit is seen as one of the first cases involving the modification program in New York City. The lawsuit, which was filed in the Eastern District Federal Court in Brooklyn, claims that the bank violated the federal program that requires banks to provide permanent modifications to eligible homeowners who complete three months of trial payments and verify their income." The Wall Street Journal (5/5, Hagerty) reports that plaintiffs allege they were misled about their chances of obtaining long-term loan modifications. Los Angeles Archdiocese yet to disclose allegedly abusive priests' personnel files.In the "L.A. Now" blog at the Los Angeles Times (5/4), Victoria Kim wrote, "Three years after Los Angeles Archdiocese agreed to the largest priest abuse settlement in U.S. history, a key element of that agreement - public release of accused priests' personnel files - remains unfulfilled with no clear outlook on when the documents may be disclosed. For many who believed that church authorities had ignored or downplayed their accounts of abuse, release of the documents rivaled monetary compensation as the central part of the $660-million settlement agreement in 2007." In Los Angeles, "the throng of plaintiffs' attorneys once involved in the cases has been reduced to just one still working on the release of the files at the moment." Class-action status sought for Delaware victims of alleged pedophile pediatrician.The Wilmington News Journal (4/5, Barrish) reports, "Lawyers who have filed lawsuits against alleged pedophile pediatrician Earl B. Bradley and other defendants, including Beebe Medical Center and the Medical Society of Delaware, are now seeking class-action status for their cases and those of other possible victims. Attorneys Bruce L. Hudson, Ben T. Castle and Craig A. Karsnitz made the request in a lawsuit filed late Monday on behalf of Jane Doe 30, a 12-year-old girl Bradley allegedly abused."
Congress
Auto safety overhaul introduced in Senate.The AP (5/5, Thomas) reports that the Senate Commerce Committee "proposed a major overhaul to the nation's auto safety requirements" that "would force car companies to meet new safety standards and face stiff penalties for failing to report defects," just a week after a similar bill was released by the House Energy and Commerce Committee, "underscoring Congress' intent to bring the first significant reforms to auto safety since the Bridgestone/Firestone Inc. tire recalls of a decade ago." The bill includes a requirement that automobiles "stop within a certain distance when the vehicle's engine is operating with an open throttle," which a brake override system would meet. Cars would have to have event data recorders that hold "at least 60 seconds prior to the crash and 15 seconds after the accident." The New York Times (5/5, B5, Maynard) reports that the bill "requires a standard governing the safety of electronic vehicle controls," and Sen. Barbara Boxer proposal "to restrict ties between auto companies and staff members of the National Highway Traffic Safety Administration" is part of the bill. The NHTSA also "would establish standards on keyless ignition systems" with the goal of "standardizing the steps a driver would take to bring a vehicle under control in an emergency." The bill also "would provide more money for vehicle safety investigations by the agency, even though its administrator, David L. Strickland, has said that the agency has sufficient financing." The Detroit News (5/5, Shepardson) reports that the bill "gives sweeping new power to the National Highway Traffic Safety Administration to halt sales and production in the event it determines a vehicle is an 'imminent danger' to the public." Competition fierce for lead role in Toyota litigation. The Wall Street Journal (5/5, A1, Searcey) reports on the fierce competition among attorneys for the lead role in litigation against Toyota Motor Corp. The Journal reports that attorneys are jockeying before US District Judge James Selna, who will oversee the litigation in Santa Ana, CA. The first hearing is scheduled for May 13, according to the Journal. InsuranceSebelius urges national review of rate increase requests from WellPoint.The Wall Street Journal (5/5, Johnson) reports that on Tuesday, HHS Secretary Kathleen Sebelius urged a national review of data submitted by WellPoint while seeking insurance rate increases. The Journal says that Sebelius' action was spurred by a recent decision on the part of WellPoint Inc. to withdraw a request to increase rates by up to 39% for some individual policies in California. Sebelius said, "In light of this recent finding, I urge that, to the extent you have authority to do so, you re-examine any WellPoint rate increases in your state. ... Even small errors can mean unaffordable premiums for policyholders." WellPoint CEO Angela Braly has said that the rate increases are justified because of rising hospital and drug costs. Activists urge California to review other requests for insurance rate increases. The Los Angeles Times (5/5, Helfand) reports, "After serious errors led health insurer Anthem Blue Cross to cancel a massive increase in health insurance premiums last week, consumer advocates are calling for a review of pending rate hikes by other big insurers in California." Notably, Health Access California, "a prominent healthcare advocacy group, urged the state's two insurance regulators Tuesday to seek independent assessments of all increases in premiums for individual policyholders and those who get insurance through small employers." The group's executive director said, "We fear the errors in the Anthem Blue Cross filing are not an aberration but may be the norm," and added, "If the insurers are not even checking the math of what they are submitting to regulators, who knows what's in these filings and what consumers are being charged that may not be justified?" CVS business practices under investigation in 24 states.Bloomberg News (5/5, Snyder) reports, "CVS Caremark Corp., the largest US provider of prescription drugs, said its business practices are under investigation by 24 states," the District of Columbia and the county of Los Angeles. CVS also "said it received a subpoena from the Office of Inspector General within the US Department of Health and Human Services for information on incentives for customers to transfer their prescriptions to CVS's pharmacies." The subpoena "is related to an investigation concerning 'possible false or otherwise improper' claims for Medicare and Medicaid payments, the chain said." Dow Jones Newswire (5/5, Wisenberg Brin) also covers the story. Drug SafetyFDA uncovers quality control problems at plant responsible for manufacturing recalled children's medicines.The CBS Evening News (5/4, story 7, 0:30, Couric) reported, "We're learning more tonight about last weekend's recall of children's medicine" manufactured by a unit of Johnson & Johnson, McNeil Consumer Healthcare. The company voluntarily "recalled 43 over the counter medications, including Tylenol [acetaminophen] and Motrin [ibuprofen] for children and infants." Now, according to a recently released federal report, "inspectors found more than 20 manufacturing problems at a Pennsylvania plant, which has been shut down," ABC World News (5/4, story 9, 0:30, Sawyer) reported. The report, which the FDA "sent to McNeil last Friday, before the recall, said the company had used raw materials with known bacterial contamination to make certain lots of infants' and children's liquid Tylenol," the New York Times (5/5, B2, Singer) reports. "Samples of finished products tested negative for bacteria, however, and the risk to consumers was remote, agency officials said." Wyeth asks Nevada Supreme Court for new trial in hormone drugs case.The AP (5/4, Chereb) reported, "Wyeth Pharmaceuticals Inc. asked the Nevada Supreme Court for a new trial over its hormone replacement drugs" Premarin (estrogens, conjugated) and Prempro (estrogens, conjugated/medroxyprogesterone), "arguing Monday that a Reno jury wasn't properly instructed on punitive damages before awarding three women a multimillion-dollar judgment on claims the drugs caused their breast cancer." An attorney representing the company "said the jury's 'premature' deliberation of punitive damages and comments about Wyeth...executives' salaries made by the women's attorneys prejudiced jurors against the company." However, "lawyers for the women countered that the mistake was inadvertent and corrected by the trial judge." The Las Vegas Sun (5/5, Ryan) reports that attorney Lane Heard, in arguing on behalf of Wyeth, "said District Judge Robert Perry should have instructed jurors to hold separate sessions to decide compensatory and punitive damages. Heard claims it was a 'constitutional error that tainted the entire jury.'" In addition, Heard "told the court there were 'inflammatory arguments' in closing arguments by the plaintiffs' attorney, who referenced the salaries of top executives at Wyeth while discussing damages." Novartis paying $72.5M to settle whistleblower lawsuit on cystic fibrosis drug.The AP (5/5) reports, "Swiss pharmaceutical company Novartis AG is paying $72.5 million to settle a whistleblower lawsuit accusing it of improperly billing government programs for unapproved uses of a cystic fibrosis drug" called TOBI (tobramycin inhalation solution, USP). On May 4, "the US Attorney's Office announced the settlement...and unsealed the lawsuit filed by former employees Robert Lalley, Courtney Davis, and William Manos in 2006." The suit's allegations were that "biotechnology company Chiron Corp., which Switzerland-based Novartis acquired in 2006, billed for unapproved uses of its drug TOBI between 2001 and 2006." The South Florida Business Journal (5/4) and the Wall Street Journal (5/5, Solsman) also cover the story. FDA warns GSK about Altabax promotional materials.Dow Jones Newswire (5/4, Dooren) reported that in a warning letter dated April 19, the Food and Drug Administration took issue with promotional material produced by drugmaker GlaxoSmithKline PLC (GSK) regarding Altabax (retapamulin) ointment, which the agency has approved to treat impetigo. In its letter, the FDA took particular issue with a "slim jim" sales pullout discussing the product, saying that it found it "false or misleading." The agency disputed a claim suggested by the slim jim that Altabax can effectively treat all strains of Staphylococcus aureus, such as MRSA, when in reality it is approved only to treat S. aureus that is "methicillin susceptible." According to the Triangle Business Journal (5/4, Gallagher), "The FDA says GSK's 'slim jim' marketing material was false or misleading, because it 'broadens the indication of Altabax, makes unsubstantiated superiority claims, and omits and minimizes important risk information associated with Altabax.'" Reuters (5/4, Richwine) reported that GSK has asked its sales staff not to use these marketing materials anymore. Reuters quoted Glaxo spokeswoman Sarah Alspach as saying, "We take the FDA's concerns seriously and are carefully reviewing FDA's comments." FDA warns Novartis over Gleevec promotional material.Dow Jones Newswire (5/5, Dooren) reports that the FDA warned Novartis AG about material on two company-sponsored websites that promoted its cancer drug Gleevec [imatinib mesylate] without mentioning the product by name. The agency said Novartis did not submit the promotional material for a 30-day review by the agency as required. In a warning letter posted to the FDA's website, the agency stated, "These websites are concerning from a public health perspective because they promote Gleevec for an unapproved use, fail to disclose the risks associated with the use of Gleevec, and make unsubstantiated dosing claims about this medication that can put patients at higher risk of experiencing serious adverse events." Reuters (5/5) also covers the story. NYTimes praises FDA's efforts to reduce conflicts of interest.The New York Times (5/5, A30) editorializes, "The Food and Drug Administration relies on 49 expert committees to advise it on policy matters and on whether particular drugs or other medical products are safe and effective. The agency has made substantial progress in reducing conflicts of interest among members, and it is now pledging to search 'far and wide' for neutral experts and to make more information public about any waivers it grants." Just last month, FDA commissioner Dr. Margaret Hamburg urged staff members "to find experts without any potential conflicts, and to justify any proposed waivers by describing how hard they had looked for neutral specialists with equal expertise." According to the Times, "That is all good news, provided the agency remains appropriately stingy in granting waivers" to potential committee members. Employment/Workplace SafetyEEOC moves to refute Kelley Drye's defense in age discrimination suit.The New York Law Journal (5/5, Raymond) reports, "The Equal Employment Opportunity Commission moved Monday to strike portions of the defense Kelley Drye & Warren has put forward in the agency's age discrimination suit against the firm." The EEOC "in January sued claiming Kelley Drye's compensation practices discriminate against partners over 70 and that the firm retaliated against the de-equitized partner who complained, Eugene T. D'Ablemont, by slashing his 2008 bonus." In response to Kelley Drye's defense, the EEOC argues that there is no statute of limitations on the suit, and that "any allegation that D'Ablemont, in his role as a partner, had waived his right to sue Kelley Drye under a federal anti-discrimination statute does not stop the EEOC from bringing an action on his behalf." Complete Immunity PreemptionPfeiffer criticizes lobbyists' efforts to preempt state financial regulations.In the Huffington Post (5/4), White House Communications Director Dan Pfeiffer presented a list of "the Top Ten Most Wanted Lobbyist Loopholes" in the financial reform legislation now before the Senate. At number four, he mentions, "Citing the doctrine of 'preemption,' big banks will try to take away states' ability to supplement federal consumer protections. Why is this a problem? Because state officials are often the first to learn of new abuses and new problems in the marketplace, and we should not get rid of that canary in the coal mine." Product SafetyNissan recall to address potential Infiniti air bag problems.The AP (5/5) reports Nissan yesterday said the company "will recall nearly 135,000 Infiniti G35 sedans and coupes to address a problem that could lead to the air bag not deploying in a crash." Nissan "said the recall involves G35 Coupes from the 2005 to 2007 model years and G35 Sedans from the 2005 to 2006 model year." The NHTSA said the company "had not yet provided the agency with a plan to fix the vehicles." Also in the NewsNew York lawyer Rondos sentenced for stealing from clients.The AP (5/4) reported, "A disbarred New York lawyer is headed to prison for stealing money he was supposed to manage for incapacitated children, mental patients and elderly people. Steven Rondos was sentenced today in a Manhattan court to five to 15 years in prison." Some of Rondos' victims "were medical malpractice victims who had won money in lawsuits." | ||||||||||
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AAJ News Brief is a digest of the most important news selected from thousands of sources by the editors of Custom Briefings. The presence of advertising does not endorse, or imply endorsement of, any products or services by the American Association for Justice. This complimentary copy of AAJ News Brief was sent to haytham@puckettfaraj.com as part of your American Association for Justice membership. View Custom Briefings' privacy policy. Neither Custom Briefings nor the American Association for Justice is liable for the use of or reliance on any information contained in this briefing. For information about other member benefits, please contact American Association for Justice Member Service Center at (800) 424-2727. American Association for Justice | 777 6th Street, NW | Washington, DC 20001 Copyright © 2010 by Custom Briefings | 11190 Sunrise Valley Drive, Suite 130 | Reston, VA 20191 |