Posts on ‘August 28th, 2009’

James M. Davis, the former chief financial officer for Stanford Financial Group and Stanford International Bank, pleaded guilty Thursday morning to criminal charges in connection with the collapse of Stanford International Bank. Former Chairman R. Allen Stanford, who is being held in federal prison, was supposed to appear in court for a hearing on who will represent him, but the judge said from the bench that Stanford was taken by ambulance to a hospital because of an irregular electrocardiogram and a high pulse rate.

Cooley Godward Kronish is losing more prominent partners. Craig Waldman, chairman of Cooley’s antitrust practice, is joining Jones Day along with Michael Knight, another Cooley antitrust lawyer. Corporate partners John Brockland and Jane Ross are leaving Cooley for Dewey & LeBoeuf. They’ll be joining former Cooley corporate stars Richard Climan, Keith Flaum and Eric Reifschneider, who moved to Dewey in July in one of the most seismic lateral moves in recent years.

Considering whether to renew its facilities management vendor, Gilbert LLP reached out to Mattern and Associates. Executive Director Jeri Rhodes describes how the “Mattern Method” helped the firm determine how its current vendor and equipment stacked up against the competition.

The American Bar Association filed suit Thursday against the Federal Trade Commission in the U.S. District Court for the District of Columbia, seeking to block application of the so-called “Red Flags Rule” to practicing lawyers. The ABA has been lobbying for months to exempt lawyers from the regulations requiring businesses and organizations that act as “creditors” to establish a program for preventing ID theft. The ABA’s complaint says applying the rule to lawyers is “arbitrary, capricious and contrary to law.”

While all eyes are on how many summer associates will receive offers from their respective firms, law school career counselors are hearing some firms anticipate taking longer with their decisions even though summer programs were shorter on average this year and wrapped up weeks ago. With some firms not hiring for next summer and others questioning the lead time between hiring summer associates and bringing them in as full-time attorneys two years later, firms are taking their time this year.

A federal judge has dismissed a securities fraud suit against Merrill Lynch and six of its subsidiaries, citing the “profound” downturn in the mortgage market as the more likely cause of the plaintiffs’ woes and noting that securities fraud plaintiffs “must do more than show motive and opportunity” to prove scienter. The suit was brought by two real estate investment trusts that said Merrill Lynch’s false statements led them to invest $26 million into mortgage-backed securities riddled with problem accounts.