New York: Ernst & Young may face civil fraud charges
NEW YORK (AP) — Accounting firm Ernst & Young LLC may face civil fraud charges in New York for its alleged role in the demise of Lehman Brothers, according to a report.
The Wall Street Journal, citing anonymous sources, said in a Monday article that State Attorney General and New York governor-elect Andrew Cuomo may file the lawsuit this week, with the state possibly seeking fines and other penalties. The case alleges that Ernst & Young did not act in the appropriate manner while Lehman misled investors about its financial condition.
Lehman was one of Ernst & Young’s biggest clients before the investment bank’s collapse in 2008 when the financial crisis intensified. The report says Ernst & Young made about $100 million in fees from 2001 through 2008 for its auditing work.
An Ernst & Young spokesman declined to comment on the report.
The potential lawsuit focuses on Lehman transactions that include repurchase agreements and its alleged attempts to have investors falsely believe it was more financially stable than it really was. The report says Ernst & Young approved of the transactions and gave the company a complete audit opinion from 2001 through 2007.
While charges may be looming, Ernst & Young may try to settle before any lawsuit is filed, the report added.
Mississippi: Mental exam for man accused in professor attack
JACKSON, Miss. (AP) — A mental examination has been ordered for a Jackson State University student accused of assaulting a professor on campus.
The Clarion-Ledger reports the findings of the exam could determine if 22-year-old Donald Plummer Jr. goes to trial.
Hinds County Circuit Judge Tomie Green signed the order for the evaluation. Court papers show Assistant District Attorney Nichon Shannon didn’t object.
Plummer has been in the Hinds County Detention Center since his indictment in October. He is accused of attacking JSU professor Janice Neal-Vincent on June 29.
Plummer’s attorney, Faye Peterson, has said Plummer has a mental condition.
Plummer was indicted on a simple assault charge involving a teacher.
Rhode Island: Mediation ordered in truancy program lawsuit
PROVIDENCE, R.I. (AP) — The Rhode Island Supreme Court has ordered mediation to resolve a class-action lawsuit over the state Family Court’s truancy program.
The American Civil Liberties Union and its Rhode Island affiliate filed the lawsuit last March. They say the truancy program operates in secrecy and violates the rights of children and their parents.
The Supreme Court has ordered mediation to begin Jan. 12, with retired Chief Justice Joseph Weisberger as the mediator.
The Family Court’s new chief judge issued an order in September outlining the program’s rules, including a requirement to record all truancy proceedings. But the ACLU says the order’s provisions still fall short of resolving its concerns.
Wisconsin: Patrons disarm man who brought shotgun to bar
SPRING GREEN, Wis. (AP) — Police are crediting patrons with disarming a man who brought a 12-gauge shotgun to a Spring Green bar and restaurant.
Police say a 27-year-old Middleton man had been ordered out of the Shed Restaurant and Bar late Friday night for being drunk and harassing other customers. Witnesses told police he struck a bystander in the face prior to being ordered to leave. The victim suffered only minor injuries.
Police say the suspect returned to the bar about an hour later, early Saturday, carrying a loaded shotgun and threatening to kill patrons and employees.
When officers arrived he was being held down on the floor by customers and employees.
Police say he’s facing charges of disorderly conduct, intoxicated use of a firearm, battery, resisting arrest and felony reckless use of a firearm.
Mississippi: Fee dispute delays payments to athlete’s family
JACKSON, Miss. (AP) — A fee dispute among attorneys involved in a lawsuit over the 2001 death of a top New York Mets pro baseball prospect has delayed settlement payments to his family.
The family of Brian Cole, who was killed in car crash, has asked a judge to sanction the attorneys. The Clarion-Ledger reports the family wants money not in dispute disbursed to them immediately.
In September, Ford Motor Co. reached a settlement after a Jasper County jury had awarded $131 million in actual damages in the case.
Jackson lawyer Wayne Ferrell Jr. is suing Arkansas lawyer C. Tab Turner and others in Jasper County Chancery Court, seeking to force Turner to abide by a 2006 attorney-fee sharing agreement.
Washington: Automakers suing EPA over higher ethanol mix gas
WASHINGTON (AP) — Automakers and engine manufacturers are suing the Environmental Protection Agency over a plan to allow the sale of gasoline containing 15 percent ethanol.
The Obama administration ruled in October that gas stations could start selling the ethanol blend for vehicles built since the 2007 model year. It’s an increase from the current blend of 10 percent ethanol.
In the lawsuit, the trade groups question whether the EPA’s approval for E15 fuels for only certain vehicles violates the federal Clean Air Act. They say the engines could be damaged by too much corn-based fuel.
The ethanol industry has said the agency should have allowed the higher blend for more vehicles.
The petition was filed in the U.S. Court of Appeals for the District of Columbia Circuit.
New York: NYC settles religious discrimination case
NEW YORK (AP) — New York City has settled a lawsuit with an Orthodox Jewish nurse who was denied a job at a city hospital because she couldn’t work on the Sabbath.
The Wall Street Journal reports the city denied any wrongdoing in settling the case for $40,000.
Alisa Dolinsky had filed the lawsuit against Color-Goldwater Specialty Hospital & Nursing Facility on Roosevelt Island.
Dolinsky said she was offered a job at the hospital in 2007, but that it was withdrawn after she said she couldn’t work on the Sabbath. Observant Jews don’t work from sundown Friday until sundown Saturday.
The Health and Hospitals Cooperation said it tries to accommodate religious workers. But it said since hospitals operate 24/7, it couldn’t rule out the possibility of rejecting another job applicant in the same circumstances.
Ford has no role in the fee dispute.
