Tag Archives: settlement

Latest Settlement in Phone Hacking Case Announced

Phone hacked

Charlotte Church received $951,000 dollars and an apology from the former newspaper News of the World in the latest of civil settlements to come from the widespread phone hacking scandal, USA Today reports. Church alleged that the tabloid hacked into her family’s voicemail, illegally gathering private information that was used in 33 articles about the singer’s family. More than 60 other celebrities have won large settlements from the company, which has been scampering to settle every lawsuit against them as quickly as possible. As part of these agreements, News Corp admits to no wrongdoing. However, criminal investigations into the company, which also owns the Fox network of companies and many other newspapers and outlets, are still ongoing.

It will be interesting to see how these criminal investigations play out. While the court documents and settlements all declare no wrongdoing and make no legal decisions against New Corp., the determination to brush these settlements under the rug is certainly suspect. When 60 people claim evidence against a company and that company chooses every time to pay those people money instead of fight the evidence, it makes one wonder what will come to light once a real criminal trial is underway. After all, News Corp. may be reasoning that any information admitted to the public record during a trial may be damning in a future criminal case and that settlement money is mere drop in the bucket compared to the many others that may come forward based on that information. Considering that they have been suspected of destroying evidence related to the phone hacking, perhaps they are just buying more time with these settlements.

Legal News to Watch

Watch what’s on

Check out the Wall Street Journal for a list of legal news to watch this week. Of note to us here at the Settlements blog is the news that the Deepwater Horizon trial was delayed by a week for settlement talks. Last week, MOEX settled with the US government and five states for $90 million concerning its 10% stake in the doomed oil rig. The company paid part in civil penalties and agreed to drop its suits against BP and other partners. Earlier in the year, they settled with BP to the tune of $1 billion. The trial that has been set back will be enormously complicated and most likely involve monstrous fines for the oil company. Some 75 million pages of court documents have been created already in what was one of the biggest environmental catastrophes in all history. We’ll be looking out for news of this trial, which will certainly be a landmark case.

Goldline to Pay $4.5 Million to Victims of Gold Bullion Bait-and-Switch

Gold

ABC News reports that Goldline, a dealer of precious metals, is to pay $4.5 million to settle a case with its defrauded customers and avoid criminal prosecution. The company was accused of a “bait-and-switch”, advertising the sale of gold bullion and instead selling its customers much less valuable “collectible” gold coins. California consumer protection attorneys alleged predatory business practices and 19 counts of criminal fraud in the company’s practice of convincing its customers that the government could confiscate gold bullion but not gold coins. The company would then use this misinformation to justify an enormous markup for the coins. One customer reports that he had lost half of the $5,000 he spent purchasing the coins due to the discrepancy between Goldline’s markup and the market-set value of the gold itself. Most customers paid a markup 55% higher than the gold’s actual value.

More interesting than the settlement is the company’s attempt to spin the news. As part of the settlement, the City of Santa Monica agreed to drop all criminal charges against Goldline. In a press release issued by the company, they stress this fact first and foremost, making no mention of the $4.5 million to be paid to their victims. Instead, Goldline identifies the suit as an investigation of “dissatisfied customers” and only mentions they “continue to set [the] standard for customer disclosures”. Take this as a lesson to read a company’s press releases with a grain of salt, or in this case, a heaping mound. Also, if you’re in the market for gold bullion, don’t buy it from a company that advertises on conservation radio talk shows.

Apple Reaches $375 Million Preliminary Settlement in iPhone 4 Antenna Dispute

Smart phone

In 2010, Apple release its much-hyped iPhone 4, the latest in the succession of popular smart phones. Early users soon found that the phone suffered poor reception when held normally due to the ill-chosen placement of the phone’s internal antenna. When notified of the flaw, Apple offered the stale solution of “holding the phone in a different way”. Users scoffed at the lame response, as reception was only lost when holding the phone in the usual manner, which has been the norm of cell phone usage for decades. Incensed users brought the company to a class action lawsuit, alleging consumer fraud in that the company misrepresented the device’s ability to function in order to increase sales.

The terms of this settlement apply to any purchaser of the iPhone 4, which early numbers indicate may be 25 million people. If you are eligible to benefit from this refund, Apple is obligated to contact you via email by April 30th, 2012. After that, purchasers have 120 days to claim their refund. If you have not been contacted by April 30th and think you are still eligible, contact Apple’s customer service.

$6.2 Million Settlement for Arrested Protestors

The right to protest

Last week, the City of Chicago agreed to settle with the group of Iraq War protesters who were unjustly arrested in 2003 to the tune of $6.2 million. The Chicago Tribune reports that an appellate court decided last year that the 800 citizens were detained or arrested without warrant. Since then, the city and the protesters have been in arbitration to settle the case outside of the court system. Though the settlement still has to be approved by the city council, it is likely less expensive than continuing to litigate.

The decision marks a stern victory for the First Amendment as well as the Fourth, which protects against unlawful search and seizure. In the wake of the appellate decision, the City of Chicago has changed its tactics against protesters, as seen in the recent Occupy protests. Now, the police apparently give the protesters ample time to leave before they are arrested. The question for the police and the protesters alike is now, “Is that enough to guarantee the first amendment right to assemble?”