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November 9, 2004
GOP Gains Could Revive Class Action Reform
Civil justice reform and reauthorization of parts of the USA Patriot
Act are among key issues the GOP-strengthened Congress is expected to
tackle, the Legal Times reported. Most likely to pass:
legislation that would move class actions from state to federal courts,
where they’re less likely to be certified. Read the full article
at
href='http://www.law.com/jsp/article.jsp?id=1099927155976'>www.law.com/jsp/article.jsp?id=1099927155976.
Kmart Introduces Credit Card Rewarding Purchases
Kmart Holdings Corp. on Monday launched its own credit card as part
of an effort by the discount retailer to retain top customers and
encourage spending to support its rebound from bankruptcy, Reuters
reported. The new credit card will also help Kmart keep more of the
money spent in its stores. This is Kmart’s second attempt at
introducing a co-branded credit card and it joins other retailers like
Sears, Walmart and Circuit City, which have co-branded credit cards,
according to David Robertson, publisher of The Nilson Reports, the
newswire reported.
Enron
H&R Block Faces Fraud over Enron Bonds
H&R Block Inc.’s financial advisers unit misrepresented the
risks of $16.4 million in bonds from Enron Corp before the energy trader
sank into bankruptcy, the NASD said in a civil fraud complaint seeking
restitution for more than 800 investors, Reuters reported. The
four-count complaint concerns 200 brokers of H&R Block Financial
Advisors Inc., who sold about $16 million of Enron bonds in the fall of
2001. The regulator said H&R Block paid brokers “significantly
higher” sales credits on Enron bonds than on similar bonds and
made $546,000 in profit from the Enron bond sales, while its customers
lost millions of dollars. It wants H&R Block to disgorge all profit
and make full restitution, plus interest, the newswire reported.
Former Enron CEO Skilling Seeks to Move Trial
Lawyers for former Enron Corp. CEO Jeffrey Skilling asked a federal
court to move his trial out of Houston, arguing in a filing on Monday
that any jury in Enron’s hometown would be biased, Reuters
reported. Skilling faces trial on dozens of counts of fraud, insider
trading and conspiracy connected to the energy company, which collapsed
into bankruptcy in December 2001. He will stand trial with former
Chairman Ken Lay and former COO Richard Causey, although a trial date
has not yet been set, the newswire reported.
Delta Airlines
Delta Needs $135 Million in Added 2006 Liquidity
Delta Air Lines Inc. said yesterday it will need an additional $135
million in liquidity in early 2006 to meet the requirements of certain
financing agreements, Reuters reported. The airline, fighting to
reorganize its business outside of bankruptcy court, said it has already
achieved about $50 million of the $135 million in added liquidity it
expects to need. It is pursuing other financing deals to obtain the
remaining $85 million, the Atlanta-based company said.
Delta Says Vendors Commit to $29 Million in Savings
Delta Air Lines Inc. said on Monday it has commitments from more than
100 vendors for about $29 million in annual savings, Reuters reported.
The airline said it is in talks to obtain more savings from other
vendors and suppliers. It also said it plans to issue about 57,000
employees options for about 63 million shares as part of an employee
incentive plan.
Plan to Shift New Jersey Pension Funds Approved
The governing council for New Jersey’s state pension fund voted
yesterday to shift to a much more aggressive investment strategy that
would include hedge funds and other so-called alternative investments as
part of a broader plan to give some responsibility for investing the
fund to outside money managers, the New York Times
reported. Until now, New Jersey’s $66 billion pension
fund—one of the nation’s largest—has been managed by
state employees, who have kept it solely in stocks and bonds.
MCI: Board Members to Buy Company Stock
MCI Inc. on Monday said that members of its board would purchase the
telecommunication company’s stock with 25 percent of their
director fees, Reuters reported. MCI said it has withheld a quarter of
all directors’ fees earned during the prior quarter. Those funds
will now be used to purchase company stock for each of the directors, it
said. MCI emerged in April from bankruptcy, which it sought after a
massive $11 billion accounting scandal.