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Bernstein Liebhard LLP Announces Class Action
Headline Legal News |
2012/01/10 09:55
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Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Camelot Information Systems Inc.nbsp; American Depositary Shares between July 21, 2010 and August 17, 2011, including those who acquired Camelot ADSs pursuant or traceable to the Company’s false and misleading Registration Statements and Prospectuses issued in connection with its July 21, 2010 initial public offering and December 10, 2010 Secondary Offering.
The complaint charges Camelot, certain of its officers and directors and the underwriters of the Offerings with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Camelot is a holding company that conducts business through its operating subsidiaries in China. The Company is a provider of enterprise application services and financial industry information technology services in China.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, defendants failed to disclose negative trends in Camelot’s business, including with Camelot’s most important customers. As a result of defendants’ false statements, Camelot ADSs traded at artificially inflated prices during the Class Period, reaching a high of $26.73 per share on January 11, 2011.
On July 21, 2010, Camelot announced the pricing of its IPO of 13.3 million ADSs at $11.00 per ADS. Subsequently, on December 9, 2010, Camelot announced the pricing of its Secondary Offering of 7,160,206 ADSs by selling shareholders at $19.50 per ADS. The complaint alleges that the Registration Statements issued in connection with the Offerings were inaccurate and misleading and omitted to state material facts required to be stated therein.
On August 15, 2011, Seeking Alpha published an article questioning several key components of Camelot’s business. This caused Camelot’s ADSs to drop to below $9 per share. Then on August 18, 2011, Camelot issued a press release announcing its second quarter 2011 unaudited financial results, including lower-than-expected guidance for fiscal 2011. On this news, Camelot’s ADSs dropped $2.24 per share to close at $6.32 per share on August 18, 2011, a one-day decline of 26%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company’s IT professionals were not a competitive advantage to the Company and many were dissatisfied with Camelot, which would adversely affect Camelot’s ability to retain its customers; (b) the Company was suffering from undisclosed attrition of employees, which was having a negative impact on the Company’s ability to attract new customers; (c) Camelot did not have the large numbers of highly trained professionals at its disposal that it had represented; and (d) Camelot’s contract with its most important customer, IBM, was not as solid as represented, and would not be renewed on the same terms.
www.bernlieb.com |
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Supreme court won't let man appeal murder conviction
Headline Legal News |
2012/01/10 09:55
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The Supreme Court won't let a man sentenced to prison for murder appeal his conviction despite his complaints that his window for further consideration was unfairly closed.
The high court on Tuesday upheld the ruling by the 5th U.S. Circuit Court of Appeals in the case of Rafael Arriaza Gonzalez.
Gonzalez appealed his conviction for murder and his 30-year sentence in 2006 but missed one of the state lower court appeals deadlines. The federal courts since then have refused to hear his appeal, saying he filed in federal court one month after the required one-year deadline.
The courts started counting from the day Gonzalez missed the state court deadline, but the inmate said they should have started counting after the Texas courts officially declared his case over.
The high court said that the lower courts had correctly calculated the deadline for Gonzalez to file. Justice Sonya Sotomayor wrote that Gonzalez's one-year deadline to appeal to the federal court began when he missed the state court filing date. Since Gonzalez filed one month after that one-year cutoff, the judgment against him became final, she said. |
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High Court Rejects Prisoner Lawsuit
Headline Legal News |
2012/01/08 09:56
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The Supreme Court won't allow employees at a privately run federal prison to be sued by an inmate in federal court despite his complaint that their neglect left him with two permanently damaged arms.
The high court ruled 8-1 to throw out the federal lawsuit by inmate Richard Lee Pollard against employees of GEO Group Inc., formerly known as Wackenhut Corrections Corp. Mr. Pollard wanted to sue for his treatment after he fell and fractured both of his elbows at the privately run Taft Correctional Institution in Taft, Calif.
Justice Stephen Breyer wrote for the court that Mr. Pollard should have sued in state court, where there would be significant deterrence and compensation if he could prove GEO officials mistreated him. |
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Court tells UK to release Pakistani in US custody
Headline Legal News |
2011/12/14 13:05
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An appeals court issued a landmark ruling Wednesday ordering the British government to free a Pakistani detainee who has been held in U.S. custody for nearly eight years without charge.
It was unclear whether Yunus Rahmatullah would be released as required, however, because the U.S. government is not bound by the ruling. It announced that it was reviewing the ruling.
Britain has seven days to produce Yunus Rahmatullah, who is being held by American forces in Afghanistan, according to the Appeals Court's ruling.
Although Rahmatullah, 29, is not a British national, the UK-legal charity Reprieve filed a habeas corpus petition claiming that his detention lacked sufficient cause or evidence, and that British forces violated international law when they rendered him to U.S. custody.
British forces in Iraq seized Rahmatullah in 2004, but then handed him over to the Americans who sent him to the U.S. Air Base in Bagram, Afghanistan — a sprawling base that includes the Parwan detention facility where some 1,900 detainees are being held.
Wednesday's ruling marks one of the first times that a habeas corpus petition has been successful for a detainee at the U.S. base. It puts the United States and Britain in an awkward position — Britain is bound by the ruling, but the United States is not because the decision was handed down by a foreign court. |
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Thomas, Kagan asked to sit out health care case
Headline Legal News |
2011/11/28 09:44
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Conservative interest groups and Republican lawmakers want Justice Elena Kagan off the health care case. Liberals and Democrats in Congress say it's Justice Clarence Thomas who should sit it out.
Neither justice is budging — the right decision, according to many ethicists and legal experts.
None of the parties in the case has asked the justices to excuse themselves. But underlying the calls on both sides is their belief that the conservative Thomas is a sure vote to strike down President Barack Obama's health care law and that the liberal Kagan is certain to uphold the main domestic achievement of the man who appointed her.
The stakes are high in the court's election-year review of a law aimed at extending coverage to more than 30 million people. Both sides have engaged in broad legal and political maneuvering for the most favorable conditions surrounding the court's consideration of the case.
Taking away just one vote potentially could tip the outcome on the nine-justice court.
Republican lawmakers recently have stepped up their effort against Kagan, complaining that the Justice Department has not fully revealed Kagan's involvement in planning the response to challenges to the law. Kagan was Obama's solicitor general, the administration's top Supreme Court lawyer, until he nominated her to the high court last year. |
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NYC sues roll-your-own cigarette shops over taxes
Headline Legal News |
2011/11/21 09:32
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There is no place in the U.S. more expensive to smoke than New York City, where the taxes alone will set you back $5.85 per pack. Yet, addicts who visit Island Smokes, a roll-your-own cigarette shop in Chinatown, can walk out with an entire 10-pack carton for under $40, thanks to a yawning tax loophole that officials in several states are now trying to close.
The store is one of a growing number around the country that have come under fire over their use of high-speed cigarette rolling machines that function as miniature factories, and can package loose tobacco and rolling papers into neatly formed cigarettes, sometimes in just a few minutes.
The secret to Island's low prices is simple: Even though patrons leave carrying cartons that look very much like the Marlboros or Newports, the store charges taxes at the rate set for loose tobacco, which is just a fraction of what is charged for a commercially made pack.
Customers select a blend of tobacco leaves, intended to mirror the flavor of their regular brand. Then they feed the tobacco and some paper tubes into the machines, and return to the counter with the finished product to ring up the purchase.
The savings come at every level. Many stores sell customers loose pipe tobacco, which is taxed by the federal government at $2.80 per pound, compared with $25 per pound for tobacco made for cigarettes. The shops don't pay into the cigarette manufacturer trust fund, intended to reimburse government health programs for the cost of treating smoking-related illness. And the packs produced by roll-your-own shops are generally also being sold without local tax stamps, which in New York include a $1.50 city tax and a $4.35 state tax.
New York City's legal department filed a lawsuit against Island Smokes on Nov. 14, arguing that the company's Manhattan store and another on Staten Island are engaging in blatant tax evasion. |
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