Hearing: Which court should hear coastal lawsuit?

A legal tug-of-war continues in a state levee board's lawsuit against 97 oil, gas and pipeline companies over the erosion of wetlands.

The Southeast Louisiana Flood Protection Authority-East wants U.S. District Judge Nannette Jolivette Brown to send the case back to Orleans Parish Civil District Court, where the board filed it in July.

Attorneys for Chevron USA Inc. got the lawsuit moved to federal court in August, arguing that federal laws govern many of its claims.

Since then, lawyers have filed hundreds of pages of arguments and exhibits just on the question of which court should hear the case.

Brown scheduled arguments Wednesday.

The lawsuit says oil and gas canal and pipeline work has contributed to the erosion of wetlands that protect New Orleans when hurricanes move ashore. Corrosive saltwater from a network of oil and gas access and pipeline canals has killed plants that anchored the wetlands, letting waves sweep away hundreds of thousands of coastal land, it says.

Gov. Bobby Jindal has blasted the lawsuit as a windfall for trial lawyers and his coastal protection chief, Garret Graves, said the suit would undermine Louisiana's work with the industry to rebuild wetlands. An association of state levee districts voted to oppose the suit.

Since then, however, two coastal parishes heavily dependent on the industry have filed lawsuits of their own raising similar issues.

Earlier this month, the Louisiana Oil and Gas Association sued the state's attorney general, accusing him of illegally approving the Southeast Louisiana board's contract with lawyers who filed its lawsuit.

The association contends that Buddy Caldwell had no authority to approve the contract and that the suit will have "a chilling effect on the exploration, production, development and transportation" of Louisiana's oil and gas.

German Court Begins Hearing Afghan Airstrike Case

A court in Germany has begun hearing a civil case brought by relatives of some of the 91 Afghans killed in a NATO airstrike four years ago.

Bonn regional court spokesman Philipp Prietze said Wednesday that the court reviewed video recorded by two U.S. fighter jets involved in the airstrike in the Afghan province of Kunduz on Sept. 4, 2009.

The strike was ordered by a German colonel fearful that insurgents would use two stolen fuel tankers to attack his troops.

Germany paid $5,000 each to victims' families, but some are seeking additional compensation. Most of the dead were civilians.

Separately, Germany said it would offer refuge to 182 Afghan translators and drivers who could face persecution after Western troops leave Afghanistan because they worked for the German military.

Spanish court convicts 53 in corruption trial

A Spanish court convicted 53 people Friday in the country's biggest-ever corruption trial, which lasted two years and centered on widespread real estate fraud and bribery in the southern jet-set resort town of Marbella.

The defendants in the trial, which ended last year, included former town hall officials, lawyers and business representatives. The judge took several months to decide on the sentences — 40 other people were acquitted and two accused died while the case was being prepared.

Under a highly complex scheme in the mid-1990s, city funds were widely misappropriated, and public officials and business representatives divvied up under-the table kickbacks for planning permissions and construction of hotels, residential complexes and urban infrastructure. Much of the money was then laundered with the help of lawyers.

Marbella, located on Spain's southern coast, was a magnet for jet set and society figures from across the world during the 1970s and 1980s.

The man who prosecutors said was the mastermind of the fraud, former Marbella urban planning adviser Juan Antonio Roca, got the biggest sentence — 11 years — for money laundering, bribery and fraud. He also was fined 240 million euros ($326 million).

Roca has been in jail since 2006 when he was first arrested as the case broke. Back then, he was considered one of the richest people in Spain with his assets including ranches, fighting bulls, thoroughbred horses, art, expensive cars and boats.

The scheme began when late Atletico Madrid soccer club owner Jesus Gil y Gil was mayor of Marbella between 1991 and 2002. Roca began working for Marbella town hall under Gil and claimed during the trial that he was just following the mayor's orders.

Man pleads guilty in bus stop crash that kills 4

A 24-year-old man has pleaded guilty to five felony driving under the influence counts stemming from a crash at a Las Vegas bus stop that killed four people last year.

Gary Lee Hosey Jr. awaits sentencing Nov. 1 after accepting a plea agreement with prosecutors Friday in Clark County District Court. He originally faced nine DUI counts.

The deal calls for his sentence to range from 24 to 80 years in prison.

Four people waiting at the bus stop were killed in the Sept. 13 crash. Hosey, four passengers in his car and three other people at the bus stop were injured.

A criminal complaint alleges Hosey's blood-alcohol level exceeded the legal limit of 0.08 percent when his car plowed into the bus stop.

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Judge OKs class-action settlement over Skechers

A federal judge approved a $40 million class-action settlement Monday between Skechers USA Inc. and consumers who bought toning shoes after ads made unfounded claims that the footwear would help people lose weight and strengthen muscles.
U.S. District Judge Thomas B. Russell in Louisville approved the deal, which covers more than 520,000 claims. About 1,000 people eligible for coverage by the settlement opted not to take part.
Those with approved claims will be able to get a maximum repayment for their purchase _ up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runner shoes; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups.
Russell also awarded $5 million for the attorneys in the case to split. Russell ordered that the money cannot come from the $40 million settlement fund set aside for consumers.
Two people that served as the lead plaintiffs in the case will receive payments of $2,500 each.
Russell considered multiple factors in deciding to approve the settlement and found it provides just compensation to the plaintiffs.

Ex-Goldman trader pleads guilty in NY fraud probe

A former Goldman Sachs trader pleaded guilty to wire fraud Wednesday, admitting that he caused his company to lose $118 million in 2007 when he put $8 billion at risk.
Matthew Marshall Taylor, 34, said he took the position on a futures contract traded electronically through the Chicago Mercantile Exchange in December 2007 to enhance his reputation and boost his earnings in a year when he made $150,000 in salary and $1.6 million in bonuses. At the time, he was working at Goldman Sachs in lower Manhattan.
According to court papers filed in Manhattan, Taylor entered fictitious information in trading account records and lied to company representatives to cover up the fact that he had put 10 times more money at risk in the trade than he was allowed. He claimed that the $8 billion at risk was actually only $65 million, the papers said.
U.S. District Judge William H. Pauley III said he was miffed that the government in a plea deal was holding Taylor responsible for no more than $2.5 million in losses. The amount of money lost in financial crimes usually plays a significant role in the length of any prison sentence.
The judge also said he could not understand why the government was not making a legal finding that Taylor had used "sophisticated means" to carry out the crime. Such a designation would again likely increase the length of any prison sentence. Pauley also noted that the government could have claimed that the crime endangered the financial health of Goldman Sachs, a designation that also could increase a prison sentence. A prosecutor said he did not believe either enhancement was appropriate because Taylor carried out the fraud in a manner similar to his usual work patterns and the company's financial stability was not threatened.

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Fiscal cliff deal forged in flurry of final talks

Stuck in a "fiscal cliff" stalemate, trust nearing tatters, President Barack Obama and Senate Republicans changed the game after Christmas. It took the rekindling of an old friendship between Vice President Joe Biden and GOP Sen. Mitch McConnell, an extraordinary flurry of secret offers, a pre-dawn Senate vote on New Year's Day and the legislative muscling that defines Washington on deadline.

The House, despite Republican resistance, passed the Senate bill late Tuesday, sending the measure to Obama for his signature.

How the final days of private negotiations pulled the country back from the precipice of the fiscal cliff marked a rare moment of bipartisanship for a divided government. Several officials familiar with talks requested anonymity to discuss them because they were not authorized to discuss the private details publicly.

Obama, having cut short his Christmas vacation in Hawaii, huddled with congressional leaders Friday afternoon at the White House. Talks between the president and House Speaker John Boehner had failed, so Obama put the fate of the fiscal cliff in the hands of McConnell and Senate Majority Leader Harry Reid.

McConnell made the first move. The Kentucky Republican proposed a plan late Friday night that would extend tax cuts expiring Jan. 1 on family income up to $750,000 a year, according to officials. He also wanted to keep tax rates on wealthy estates at 35 percent, slow the growth of Social Security cost-of-living increases, and pay for an offset of the sequester — Congress's term for across-the-board spending cuts __ by means-testing Medicare. His offer did not include the extension of unemployment benefits Obama had demanded.