Golden State Settles Charter School Case, But For How Much?

July 11, 2016 By

That big civil case between California and the charter-school operator K12 has been settled for $168.2 million, the state’s attorney general says. But the company says that’s wrong by more than a hundred million dollars.

The Wall Street Journal backgrounds that the company is “… a remote-learning, charter-school operator that was accused of violating advertising and competition rules” and that “… the settlement also covered 14 nonprofit schools known as the California Virtual Academies, or CAVA schools, affiliated with K12. The company manages 15 nonprofit virtual charter schools throughout California serving about 13,000 K-12 students, the attorney general said in a press release announcing the settlement.”

But the WSJ also notes that “… K12 said in response that the attorney general’s office ‘mischaracterized’ the settlement and the company added that it has made no admission of wrongdoing. According to the Herndon, Va., company’s statement, the $168.5 million figure cited by California authorities was “flat wrong.” The company said that the settlement was only $2.5 million.” Says the firm: “… K12 will be making an $8.5 million payment to the state,” it said. “Of that amount, $6.0 million is to defray the cost to taxpayers of the Attorney General’s investigation, and $2.5M are settlement costs related to the separate private lawsuit alleging misreporting of attendance at the CAVA schools.”

Read the WSJ report here: California Reaches Settlement With K12 Over False Claims Allegations

Filed Under: Cases, Community Tagged With: , ,

Judge Delays San Francisco Sugar Warnings

June 9, 2016 By
The San Francisco board of supervisors has approved an ordinance that would require warning labels to be placed on advertisements for soda and sugary drinks to alert consumers of the risk of obesity, diabetes and tooth decay. PHOTO: GETTY IMAGES

The San Francisco board of supervisors has approved an ordinance that would require warning labels to be placed on advertisements for soda and sugary drinks to alert consumers of the risk of obesity, diabetes and tooth decay. PHOTO: GETTY IMAGES

The city of San Francisco’s efforts to require health warning for soda and other sugar-added beverages, closely watching because of implications for similar warnings in other places, has been placed on hold by a federal judge. The delay, in effect, grants the beverage industry some more time pending the appeals process. The measure was set to go into effect July 25.

The Wall Street Journals explains that San Francisco seeks to “… require that billboards and other public advertisements include the language: ‘WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay. This is a message from the City and County of San Francisco.'”

The WSJ also notes that “… the American Beverage Association filed a civil complaint in the U.S. District Court for the Northern District of California last July, arguing that the requirement violates free-speech rights under the First Amendment. The California Retailers Association and California State Outdoor Advertising Association joined the complaint.”

Read more here: San Francisco’s Sugary-Drinks Warnings Delayed Pending Appeal

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POLITICO Looks Into Judicial Appointment Backlog

April 20, 2015 By

The POLITICO website it taking a look at why the U.S. Senate is allowing a backup on federal appointments, including filling jobs for emergency judges. The report comes after a critical report documented serious delays in civil justice cases, as reported here in the Wall Street Journal.

That WSJ report quoted a seated federal judge in California saying of civil court delays that “it is not justice. We know it.”

Alarmingly, POLITICO says it might be political payback for the so-called “nuclear option” of last year that forced some appointments through to a vote despite the long-standing tradition of needing 60 of 100 votes to move a nomination to a full vote. Reports POLITICO of the GOP-controlled Senate, “… Republicans don’t pinpoint one reason for the major logjam at the judicial level, which has infuriated outside groups intent on seeing the Senate fill 23 judicial emergencies across the nation’s courts. Some argue that Senate Republicans are still getting up and running, while others say the delay is retribution for Democrats’ power play with the nuclear option.”

Read the POLITICO report here.

Filed Under: Community, National Tagged With: , , , ,

WSJ Story Notes Civil Gideon Trend

April 9, 2015 By
The Wall Street Journal is taking notice of momentum for a “civil Gideon” approach to lawsuits involving life-changing decisions, like foreclosure or family custody. The WSJ reports that the newly approved state budget “… allocated $85 million for indigent civil legal services at the request of the state judiciary, an increase of $15 million from the previous fiscal year.”
 
And in New York City, Mayor Bill de Blasio recommended in his preliminary budget proposal spending $36 million on free legal services in housing court, which would bring the city’s total spending on civil legal services up to about $50 million.
 
By way of background, the deep-dive WSJ story noted that the trend has a history of success and “… in 2009, California passed the Sargent Shriver Civil Counsel Act, which created several pilot programs, supported by court fees, free legal counsel in civil cases. In its third year, the program has succeeded despite a modest $8 million annual budget, its coordinators say. More than 15,000 people have been served so far, most in eviction cases.
 
“One of the big takeaways is that attorneys help settle cases,” said Bonnie Hough, managing attorney for California’s Judicial Council. Read the story here: New York Officials Push Right to Counsel in Civil Cases
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BASF Case Focused On Concealing Evidence

December 12, 2014 By
The world’s largest chemical maker and a prominent law firm have lost another court appeal in a class action lawsuit accusing them of concealing and destroying evidence in a batch of asbestos litigation. The federal Third Circuit has declined to “rehear” a September decision that, in effect, re-opened the case. Businessweek reports that the company was “… ordered to face claims it fraudulently hid evidence that its talc products contained asbestos as it sought to scuttle thousands of personal-injury lawsuits.” The company in question was actually acquired by BASF and that business unit mined talc that was used in everything from wallboard to children’s balloons. 
Image as reported in The Wall Street Journal 9/4/14 article, "Appeals Court Breathes New Life Into Fraud Case Involving BASF, Cahill Gordon."

Image as reported in The Wall Street Journal 9/4/14 article, “Appeals Court Breathes New Life Into Fraud Case Involving BASF, Cahill Gordon.”

 
Writing in The American Lawyer (a subscription site) Susan Beck reports that “… BASF, its asbestos litigation has morphed from being a negligible nuisance into an expensive, embarrassing problem. The company stresses that it inherited this situation from Engelhard, and has gone to great efforts to find out what happened. For Cahill, the litigation is also remarkable. Legal ethics expert Stephen Gillers of New York University School of Law says it’s not unheard-of for a law firm to be sued for fraud, noting that several were sued in the wake of the savings and loan crisis of the 1980s. ‘What is rare,’ he says, ‘is for a case like this to target such a prominent law firm.'”
 
Beck also notes that thousands of cases might be re-opened based on the evidence. The Wall Street Journal also offers background for free.
 
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