FLSA "Explosion": The June 5, 2006 issue of the Wall Street Journal has an article (subscription required) commenting on the "explosion" in cases under the Fair Labor Standards Act (FLSA). The article also contains statistics showing the number of FLSA actions increased four-fold between 2000 and 2005. EPL insurers have been struggling to find the appropriate marketplace response to this increased risk. The National Underwriter recently carried an article (subscription required) describing wage-hour claims as "the next frontier" for employment practices liability insurance (EPL) carriers. To date, the extent of available coverage for this type of claim seems to be restricted to sublimited defense cost coverage, available from only a few carriers.
Enron Trial Redux: In case you missed it over the weekend, the June 4, 2006 issue of the New York Times carried a lengthy article detailing the prosecutor’s development of the legal strategy used in the criminal trial against Kenneth Lay. The Times article has generated much commentary, not all of it flattering to the prosecutors. Perhaps most notable are the comments of Professor Larry Ribstein in his Ideoblog post discussing the Times article. Among other things, Professor Ribstein comments:
Many people no doubt will get a warm feeling from the job our government servants have done in finally nailing the evil Lay. But as I said at the beginning, there’s an alternative narrative. The prosecutors were out to get Lay, who had already been convicted by public opinion just for being associated so closely with Enron, which of course journalists, filmmakers and other shapers of public opinion had already elevated into the symbol of whatever it was that went pop at the end of the big boom.
The WSJ.com lawblog also has a commentary on the Times article and Professor Ribstein’s post. The WSJ.com lawblog post has attracted some interesting responses, which are reproduced following the WSJ.com lawblog post.
Class Action Internet Sites: Lies, Damned Lies and Forward Looking Statements, the blog written by plaintiffs’ lawyer Adam Savett, has a very useful post. that contains links to separate case-specific Internet resources devoted to the major securities class action cases, including the Enron, WorldCom and IPO Laddering cases, among others. Find the post here.
Fannie Mae Settlement: The CorporateCounsel.net blog has a thoughtful June 5, 2006 post with perceptive commentary on the "Lessons on the Fannie Mae Settlement." The author’s comments contain some interesting observations about corporate governance and board functioning. Find the post here.
Category: Tales from the Fringe, Subcategory: "Oogabooga": For those of you who have always wondered what the legal consequences would be from the inadvertent inclusion of the word "oogabooga" in an Australian tribunal’s ruling on a Burmese refugee’s asylum application (I am not making this up), you will want to look here. We will have to wait for another day to find out the consequences of the intentional use of the word "oogabooga."