A federal appeals court on Tuesday overturned the conviction of a man who posted Internet messages threatening Barack Obama during his 2008 presidential campaign.

A divided three-judge panel of the 9th U.S. Circuit Court of Appeals ruled that Walter Bagdasarian's violent and racist screeds against Obama were "repugnant" but not criminal. The court also said it was obvious the San Diego man wasn't planning to attack the candidate and that the postings were protected by Bagdasarian's free speech rights.

Bagdasarian was convicted in 2009 of two felony counts of threatening a major presidential candidate.

Bagdasarian posted several messages to a Yahoo Finance message board in October 2008, including one that called Obama a racial epithet and another that said "he will have a 50 cal in the head soon" — a reference to a .50 caliber gun.

A retired Air Force officer forwarded the postings to the Secret Service. Yahoo provided Bagdasarian's subscriber information to investigators, who raided his house and seized six guns and a hard drive containing an email with similar sentiments.

Bagdasarian admitted posting the messages, but said he was drunk and joking.

He waived his right to a jury trial. District Judge Marilyn L. Huff found him guilty and sentenced him to 60-days in a half-way home.

But the appeals panel said no "reasonable person" could have taken seriously Bagdasarian's posts.

The Supreme Court on Monday blocked a massive sex discrimination lawsuit against Wal-Mart on behalf of women who work there.

The court ruled unanimously that the lawsuit against Wal-Mart Stores Inc. cannot proceed as a class action, reversing a decision by the 9th U.S. Circuit Court of Appeals in San Francisco. The lawsuit could have involved up to 1.6 million women, with Wal-Mart facing potentially billions of dollars in damages.

Now, the handful of women who brought the lawsuit may pursue their claims on their own, with much less money at stake and less pressure on Wal-Mart to settle.

The justices divided 5-4 on another aspect of the ruling that could make it much harder to mount similar class-action discrimination lawsuits against large employers.

Justice Antonin Scalia's opinion for the court's conservative majority said there needs to be common elements tying together "literally millions of employment decisions at once."

But Scalia said that in the lawsuit against the nation's largest private employer, "That is entirely absent here."

Justice Ruth Bader Ginsburg, writing for the court's four liberal justices, said there was more than enough uniting the claims. "Wal-Mart's delegation of discretion over pay and promotions is a policy uniform throughout all stores," Ginsburg said.

Business interests lined up with Wal-Mart while civil rights, women's and consumer groups have sided with the women plaintiffs.

The Supreme Court has ordered a lower court to reconsider its decision to release a criminal on parole.

The high court threw out a lower court decision ordering John Pirtle and other prisoners released from prison on parole.

Pirtle was convicted of killing his wife, and the parole board started denying him parole in 2002. Pirtle sued in federal court, saying his parole was denied without any proof that he posed a danger if he got out.

The lower courts agreed with him and ordered him and other prisoners in similar situations released on parole.

The high court threw out that decision in a summary judgment and ordered the 9th U.S. Circuit Court of Appeals in San Francisco to reconsider it.

President Barack Obama's top lawyer at the White House is resigning to return to private practice and represent Obama as his personal attorney and as general counsel to Obama's re-election campaign.

Bob Bauer will be replaced by his top deputy, Kathy Ruemmler, a former assistant U.S. attorney best known as lead prosecutor in the Enron fraud case.

The move means that Bauer, 59, will still play a central but outside role in advising a president who is seeking re-election in a time of divided government.

Meanwhile, the 40-year-old Ruemmler will take over the job as Obama's top in-house counsel and manager of a White House law office charged with juggling the domestic, national security and congressional oversight challenges confronting the president.

In a statement, Obama praised Bauer as a friend with exceptional judgment who will remain a close advisor. As to his new White House-based counsel, Obama said: "Kathy is an outstanding lawyer with impeccable judgment. Together, Bob and Kathy have led the White House Counsel's office, and Kathy will assure that it continues to successfully manage its wide variety of responsibilities."

Bauer has been part of Obama's circle since Obama was a freshmen senator in Washington, and now returns to the campaign counsel role he had when Obama ran in 2008. He has long been a go-to lawyer for Democrats on matters of political law and is married to Anita Dunn, a Democratic communications operative who formerly worked in Obama's White House.

Bauer will leave his White House post at the end of June. In a style typifying the low-key nature of transitions in the counsel's office, the news came in the form of a press release.

Mack Trucks Inc. and its parent, AB Volvo, will pay $525 million to settle a class-action lawsuit filed by more than 9,300 retirees of the North Carolina truck maker after they challenged potential reductions to their lifetime health benefits.

The Legal Intelligencer reported Tuesday that Senior U.S. District Judge R. Barclay Surrick gave preliminary approval of the settlement. A hearing is Sept. 7 to decide if the settlement is fair and reasonable.

The suit was filed in Michigan after Mack sought a ruling that lifetime benefits of its retirees were not vested and could be modified or eliminated. Both cases were consolidated in the Eastern District of Pennsylvania.

Mack reached an agreement with the UAW in May of 2009 on a voluntary employees beneficiary association, or VEBA, that would have the union oversee retirees' health benefits. Mack and Volvo agreed to fund it with $525 million, paid in five annual installments.

Mack said it expects the final approval of the VEBA in September.

The company also reported that deliveries nearly doubled in April from a year earlier with 1,608 trucks delivered from the 810 it recorded in April 2010, an increase of 99 percent.

The South Dakota Supreme Court has ruled that Circuit Judge A.P. "Pete" Fuller of Rapid City must retire or undergo a six-month suspension followed by strict probation for misconduct that involved mistreating lawyers, court personnel and others.

The Judicial Qualifications Commission had recommended that Fuller be removed from office or forced to retire because he repeatedly displayed a lack of courtesy and respect for lawyers and court staff.

The case marked the first time in the 121-year history of the South Dakota judicial system that the Supreme Court had been asked to remove a judge from the bench.

In a hearing last month, Fuller told the high court he is ashamed of his behavior but believes he could return to the bench and be an effective judge.