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Morning Docket: 03.18.08

Great Depression 2 Dorothea Lange Migrant Mother Above the Law blog.JPG* "Are we headed for another Great Depression?" [McClatchy]

* Quelle surprise: Bear Stearns shareholder lawsuit (filed in S.D.N.Y. by Coughlin Stoia). [Bloomberg; WSJ Law Blog (PDF of complaint)]

* Speaking of Bear Stearns, here are some law firms losing out on BSC business. [WSJ Law Blog]

* Tenth Circuit reverses convictions of former Qwest CEO Joe Nacchio. [AP]

* Harvard Law School will pay the 3L tuition of future students who agree to work for nonprofit organizations or government for five years following graduation. [New York Times via Tax Prof Blog; Harvard Law School (news release)]

* Settlement in Paul McCartney-Heather Mills divorce (more on this later). [Legal Week]

* SCOTUS to hear Second Amendment / D.C. gun control case today (more on this later too). [New York Times; Reuters]

Comments
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1 Posted by guest | Permalink Tuesday, March 18, 2008 9:24 AM

Deer Bush administration,

Anyone who took a furzt year economics class at Warden culd tell you that supply-side economics is bunk. U r all stupid. Look at the mess you got us in to.

Signed,

Penn State Law 3L
Philadelphia Campus

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2 Posted by guest | Permalink Tuesday, March 18, 2008 9:45 AM

That picture is tasteless.

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3 Posted by guest | Permalink Tuesday, March 18, 2008 9:45 AM

Correction: the use of that picture is tasteless.

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4 Posted by guest | Permalink Tuesday, March 18, 2008 9:49 AM

Why? You can't imagine a woman with children as a former lawyer or banker in the MBS field?

Sexist.

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5 Posted by anonny | Permalink Tuesday, March 18, 2008 10:03 AM

Note that many of those Depression era photos were staged/posed (not that they didn't portray the actual, widespread hardship of the times).

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6 Posted by HLS | Permalink Tuesday, March 18, 2008 10:05 AM

That picture is golden.

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7 Posted by guest | Permalink Tuesday, March 18, 2008 10:12 AM

Dear HLS,

You give me 3L tuition (not room, not board, not books, and not "living expenses"--i.e., enough booze to drown the misery of being around other HLSers). This allows me to avoid borrowing money at historically low interest rates.

I give up half a decade of real money, to work a shitty job with no support staff, no objective community value (I can't wait to show up at a reunion, proudly explaining that I represent indignent aliens seeking asylum), and, oh, did I remember to mention, no real money.

GREAT! Sign me up!

XOXO,

UPENN STATE transfer hopeful

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8 Posted by guest | Permalink Tuesday, March 18, 2008 10:44 AM

10:03: And your point is....? The pictures may have been posed, but the subjects weren't rich people who lost teeth and a ton of weight and moved to the Dust Bowl for the photo shoot with Evans.

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9 Posted by the critic class | Permalink Tuesday, March 18, 2008 11:57 AM

It's an excellent use of the Lange photo. What is the value of art if it doesn't transcend times and issues?

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10 Posted by guest | Permalink Tuesday, March 18, 2008 2:37 PM

The photo is cruel and heartless.

This isn't a joke anymore...our country is in serious trouble!

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11 Posted by guest | Permalink Tuesday, March 18, 2008 3:39 PM

Sometimes the best way to deal with a serious situation is to find some humor in it.

E.g., people sharing funny memories about the deceased at funerals, to console each other in a time of loss.

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12 Posted by BS bear Sterns Class Action | Permalink Wednesday, March 19, 2008 5:56 AM

After reading the complaint, I have to say that the judge should dismiss the action on summary judgement. What is the alleged misrepresentation that Bear Sterns made? All I saw was a bunch of amended press releases from third parties, and their SEC filed documents. They failed to claim that they made a specific misrepresentation or lie. Their two claims are bunk:
1. alleging that they "allowed" employees and subsidiaries to fail to disclose the full risk is rediciulous. Where is the mis-representation? There is NOT A SINGLE SPECIFIC INSTANCE of misrepresentation stated. The financials that they reported appear facially correct, despite the fact that the market was comming apart. Investments have risk, and failure to say "you can lose all of your money" is not a misrepresentation. Unless they can allege a specific instance in which there was a public statement by the company where they misrepresented their financial condition, I see this claim thrown out on summary judgement.
2. statements are not materially false when you 'fail to inform the public' of some future financial problem you cannot predict, with some future action that you may or may not take to prevent said problem. this claim is the equivalent of a claim that they failed to disclose exactly what was going to happen in the future. (eg, assuming that they know the future, so that they have to disclose it).

Throw this garbage case out.

Note to counsel:
Do not write a complaint with a large number of attachments throughout that make it impossible to read. Make a concise statement, based on evidence, of your claim. If there is a SPECIFIC portion of an attachment that is, in this case, a "misrepresentation," quote it separately from the attachment next to the large claim that it is a material misrepresentation. Then append the materials at the end of the complaint.

On second thought, never mind what I just said. When you have a case completely without merit, and you desire Rule 11 sanctions, write the complaint exactly as you did.

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