December 13, 2006

Illinois Part of Encouraging Trend in Corporate Fraud Cases

Pamela A. MacLean of the National Law Journal reports that courts in Illinois, New Jersey and New York are giving more credence to the concept of collective scienter, or guilty knowledge by any corporate employee, in securities fraud cases. Plaintiffs benefit from this trend because they do not need to prove fraudulent intent by a particular executive. It is far easier for a plaintiff to prove knowledge than it is for that same plaintiff to prove intent.

This trend, to make corporations more responsible and more accountable, is especially encouraging in light of recent corporate scandals including Enron and World Com. Hurley McKenna & Mertz is dedicated to protecting the rights of individuals and to placing people before profit.

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December 13, 2006

Illinois Company Recalls Necklaces -- Risk of Lead Poisoning

The U.S. Consumer Product Safety Commission reports that an Illinois Company is recalling approximately 51,600 necklaces because they are made with high levels of lead. The necklaces are sold under the name Children’s Mood Necklaces and Diva Necklaces. Consumers are warned to stop using the necklaces immediately. See the warning for a full description of the products, including photographs.

Lead is a highly toxic material that can cause brain damage, especially in children. Anyone injured by these products should contact an attorney to determine whether they should bring lead poising cases or product liability cases against the makers of these dangerous products.

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December 13, 2006

Update on Alabama Bus Crash

Desiree Hunter of the Associated Press reports that the Toyota involved in the crash that killed four Huntsville Alabama students may have experienced a steering malfunction. In our last blog, we wondered whether this was the case.

Hunter reports:

Gary Van Etten, the investigator in charge for the National Transportation Safety Board, said the 1990 Toyota Celica that hit the bus taking Lee High school students to technical school classes may have had “a mechanical problem.”

“He told us that he was experiencing a difficulty in steering his vehicle and as he continued with this difficulty, it got progressively worse until he felt he lost control of the vehicle,” Van Etten said.

This is a tragic case that will likely play out in the courts. Product liability cases against the manufacturer of the car and against the manufacturer of the steering system seem likely.

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