Mich. man sues, wants Chevron stock at '04 price

Court Watch 2011/07/02 00:09   Bookmark and Share
A former lawyer intrigued by the global demand for energy says he chose to invest $100,000 in oil giant Chevron Corp. back in 2004, a smart stock bet that now would have doubled seven years later.

But Perry Christy has a big problem: He says Chevron's stock agent never deducted money from his bank account. As a result, he has no records to show he actually owns a certain number of shares.

So Christy, 69, is suing Chevron and Mellon Investor Services and seeking an extraordinary remedy. He wants a federal judge to declare that he should be credited with buying the stock at a June 2004 price, plus any additional shares that would have piled up by reinvesting dividends. Then he'll pay $100,000.

Based on the terrific rise in San Ramon, Calif.-based Chevron's stock, it would be like winning the lottery—and then buying a ticket.

"There was some kind of mix-up on the day I placed the order," Christy insisted in an interview at his home in the Detroit suburb of Northville. "Whether mechanical or electronic, I don't think we'll ever know. But it's their screw-up. When you deal with any large bureaucracy, people are focused on their own narrow niche."

After more than a year in court, Chevron and Mellon smell a scam and want the case dismissed, even suggesting that Christy's story of a genuine yet botched investment simply is a lie.

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High court won't look at dispute over Sioux land

Court Watch 2011/06/20 08:09   Bookmark and Share
The Supreme Court has refused to get involved in a long-running dispute on the continued existence of the Yankton Sioux Tribe and the extent of its lands in South Dakota.

The justices on Monday let stand several rulings involving the tribe, including an appeals court decision saying the reservation covers more than 30,000 acres, which is mostly land the federal government holds in trust for the tribe and individual tribal members.

The high court also rejected an appeal from the tribe to block the transfer of two federal recreation areas along the Missouri River to the state of South Dakota.

The cases are Daugaard v. Yankton Sioux Tribe, 10-929; Southern Missouri Recycling v. Yankton Sioux Tribe, 10-931; Hein v. Yankton Sioux Tribe, 10-932; and Yankton Sioux Tribe v. Daugaard, 10-1058.


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High court to hear Montana dams lawsuit

Court Watch 2011/06/20 06:09   Bookmark and Share
The Supreme Court is entering a $40 million dispute between an energy company and Montana that could turn on the experiences of the Lewis and Clark expedition.

The justices said Monday they will hear an appeal from PPL Montana of a state court decision ordering the company to pay $40 million in rent for placing its hydroelectric dams in riverbeds owned by the state.

The ownership of the waterways turns on whether they were navigable when Montana became a state in 1889. Both the company and the state base part of their argument on the journey of Meriwether Lewis and William Clark more than 200 years ago.

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US court lets class action against Bayer proceed

Court Watch 2011/06/20 02:10   Bookmark and Share

The Supreme Court will let two West Virginia residents revive a lawsuit against Bayer AG over its anti-cholesterol drug Baycol, which was withdrawn from the market in 2001 after reports of a severe and sometimes fatal muscle disorder.

The high court on Thursday unanimously agreed to let Kevin Smith and Shirley Sperlazza's class-action lawsuit against Bayer go forward.

The 8th U.S. Court of Appeals had thrown out their lawsuit out after a federal judge overseeing multistate litigation against Bayer refused to let other West Virginians file a similar class-action lawsuit against the corporation.

The high court said that decision was incorrect.

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NY jury convicts 3 in NYC hedge fund trial

Court Watch 2011/06/13 20:26   Bookmark and Share
The second trial to result from a massive investigation into insider trading at hedge funds ended Monday with the conviction of a trio of Wall Street traders on charges they paid hefty bribes to coax confidential information out of shady lawyers.

A jury reached the verdict against stock trader Zvi Goffer and two others in federal court in Manhattan after deliberating five days since June 2. It came a month after the conviction of Raj Rajaratnam, the one-time billionaire who founded the Galleon Group of hedge funds and who was once Goffer's boss.

Goffer, his brother Emanuel and Michael Kimelman were convicted of conspiracy to break securities laws. The men were permitted to remain free on bail pending sentencing, set for the fall.

The defendants, who had insisted they based trades only on public information, remained calm during the verdict. Zvi Goffer's wife and mother left the courtroom in tears.




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Court won't hear restitution claim in Ponzi case

Court Watch 2011/06/13 20:26   Bookmark and Share
The Supreme Court has rejected an appeal from investment funds seeking repayment of their losses in a $3.7 billion Ponzi scheme operated by Minnesota businessman Thomas Petters.

The funds together lost $165 million and challenged a federal judge's order denying restitution to any of Petters' victims. Among other things, the court said the victims would have other ways of recouping some of their money.

The justices on Monday refused to disturb the ruling.

A federal law generally requires a court to order restitution as part of a defendant's sentence, but allows for some exceptions. The judge in this case said that restitution would be too complex, take too long and result in the payment of less than a penny for each dollar victims lost.




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