Tag Archives: LEGALS

Elon Musk says Twitter staff ‘error’ led to hiring Perkins Coie law firm

Jan 6 (Reuters) – Twitter Inc CEO Elon Musk said in an email to Reuters on Friday that hiring law firm Perkins Coie to defend the company in a California federal lawsuit this week was a mistake it would not make again.

Reuters reported earlier that lawyers from Perkins Coie entered court appearances for Twitter in the case on Wednesday even though Musk has denounced the firm on the social media platform, including in a tweet last month related to its past work for former Democratic U.S. presidential nominee Hillary Clinton.

Musk’s email said hiring Perkins Coie was “an error on the part of a member of the Twitter team.”

“Perkins will not be representing Twitter on future cases,” he said.

He did not immediately respond to follow-up questions on Friday, including whether Perkins Coie will stay on as counsel for Twitter in at least six other lawsuits predating Musk’s ownership. A Perkins Coie spokesperson did not immediately respond to a request for comment.

Musk’s finger-pointing follows months of internal tensions over Twitter’s legal staffing and priorities since he acquired the company for $44 billion and took over as CEO in October.

Musk has fired Vijaya Gadde, Twitter’s legal affairs and policy officer, and other senior employees as he seeks to undo what he has criticized as past censorship and partisan bias at the company.

Twitter has also shaken up its outside legal teams, with attorneys from Quinn Emanuel Urquhart & Sullivan stepping in for other firms in several cases.

Musk tweeted on Dec. 8 that Twitter “isn’t using Perkins Coie” as outside counsel and urged other companies to boycott the firm. He singled out a former Perkins Coie lawyer, Michael Sussmann, who advised Clinton’s 2016 presidential campaign while at the firm.

Sussmann was acquitted in May after denying federal charges that he falsely told the FBI he was not working on Clinton’s behalf when he gave the agency purported evidence of cyber links between the Trump Organization and a Russia-based bank.

“No company should use them until they make amends for Sussmann’s attempt to corrupt a Presidential election,” Musk wrote in December, referring to Perkins Coie.

In May, Musk tweeted that Perkins Coie and another large law firm were made up of “white-shoe lawyers” who “thrive on corruption.”

The case that Perkins Coie signed on to for Twitter this week was brought last year by Laura Loomer, a far-right activist who was banned from the site in 2018.

The San Francisco lawsuit claims social media giants, corporations and the U.S. government conspired to “unlawfully censor conservative voices and interfere with American elections.” Twitter and its former CEO Jack Dorsey have denied the claims.

Reporting by David Thomas in Chicago
Editing by David Bario and Leslie Adler

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David Thomas

Thomson Reuters

David Thomas reports on the business of law, including law firm strategy, hiring, mergers and litigation. He is based out of Chicago. He can be reached at d.thomas@thomsonreuters.com and on Twitter @DaveThomas5150.

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Cubans approve gay marriage by large margin in referendum

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HAVANA, Sept 26 (Reuters) – Cubans approved gay marriage and adoption overwhelmingly in a Sunday referendum backed by the government that also boosted rights for women, the national election commission said on Monday.

More than 3.9 million voters voted to ratify the code (66.9%), while 1.95 million opposed ratification (33%), Alina Balseiro Gutierrez, president of the commission, said on state-run television on Monday.

“Justice has been done,” Cuban President Miguel Diaz-Canel wrote in a tweet.

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“It is paying off a debt with several generations of Cuban men and women, whose family projects have been waiting for this law for years,” he said.

The 100-page “family code” legalizes same-sex marriage and civil unions, allows same-sex couples to adopt children, and promotes equal sharing of domestic rights and responsibilities between men and women.

Preliminary results from the electoral commission showed 74% of 8.4 million Cubans eligible to vote participated in the Sunday referendum.

There are no independent observers of Cuban elections, although citizens may observe the count at their precincts. Scattered local reports of district counts on social media appeared to tally with the official results.

The announcement of the results came as Diaz-Canel presided over an emergency meeting as the Caribbean island prepared for Hurricane Ian to pass over its western tip early on Tuesday.

Official Twitter accounts showed the room erupting in applause and the president leaning back and smiling at the news. The Cuban president led the campaign for the adoption of the code.

By Cuban standards Sunday’s turnout was relatively modest, and a 33% ‘no’ vote relatively large in the communist-run country, where previous referendums have seen the government position receiving near unanimous approval.

The dissent is an indication of both how Cuba is changing and the current dire economic circumstances, which have seen long power outages and lines for food, medicine and fuel.

Sunday’s vote was also the first of its kind since most residents have had access to the internet, which has let dissenting views spread more widely.

(Story corrects reference to the referendum being the first since mobile internet was legalized in final paragraph)

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Reporting by Marc Frank, Editing by Rosalba O’Brien

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London’s High Court rules against Venezuela’s Maduro in $1 bln gold battle

Venezuela’s President Nicolas Maduro looks on during a meeting with Alejandro Dominguez, president of the South American Football Confederation CONMEBOL, at the Miraflores Palace, in Caracas, Venezuela July 11, 2022. REUTERS/Leonardo Fernandez Viloria

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LONDON, July 29 (Reuters) – London’s High Court has rejected President Nicolas Maduro’s latest efforts to gain control of more than $1 billion of Venezuela’s gold reserves stored in the Bank of England’s underground vaults in London.

The court ruled on Friday that previous decisions by the Maduro-backed Venezuelan Supreme Court, aimed at reducing opposition leader Juan Guaido’s say over the gold, should be disregarded.

It marked the latest victory for Guaido, who has won a series of legal clashes over the bullion after the British government recognised him rather than Maduro as the South American country’s president.

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“I have … concluded that the Guaido Board succeeds: that the STJ (Venezuelan supreme court) judgements are not capable of being recognised,” the judge in the case said.

The Maduro and Guaido camps have each appointed a different board to the Central Bank of Venezuela (BCV) and the two have issued conflicting instructions concerning the gold reserves.

Lawyers for the Maduro-backed BCV board said the central bank was considering an appeal after Friday’s ruling, while Guiado, who has seen some international support falter over the last 18 months, called it an important victory.

The Maduro-backed BCV board said in a statement it rejected the court’s ruling and reserved “all legal action at its disposal to appeal this unusual and disastrous” decision.

Shortly after, the vice president and finance minister Delcy Rodriguez said on state television that “the damage caused to our people is serious” and that the court “has to rectify.”

Maduro’s legal team has said he would like to sell some of the 31 tonnes of gold to finance Venezuela’s response to the pandemic and bolster a health system gutted by years of economic crisis.

Guaido’s opposition has alleged that Maduro’s cash-strapped administration wants to use the money to pay off his foreign allies, which his lawyers deny.

“This decision represents another step in the process of protecting Venezuela’s international gold reserves and preserving them for the Venezuelan people,” Guaido said in a statement.

“This type of honest and transparent judicial process does not exist in Venezuela.”

The British government in early 2019 joined dozens of nations in backing Guaido, after he declared an interim presidency and denounced Maduro for rigging 2018 elections.

Guaido at that time asked the Bank of England to prevent Maduro’s government from accessing the gold. Maduro’s central bank then sued the Bank of England to recover control, saying it was depriving the BCV of funds needed to finance Venezuela’s coronavirus response.

Legal experts have said the latest case has been unprecedented as it has seen one of a country’s highest courts interpreting the constitution of another.

“This is an unfortunate ruling,” said Sarosh Zaiwalla at Zaiwalla & Co, which represented the Maduro-backed central bank, adding it would continue to pursue the case despite Friday’s decision.

“The BCV remains concerned that the cumulative effect of the judgments of the English Court appears to accord a simple statement by the UK Government recognising as a head of state a person with no effective control or power over any part of that state,” Zaiwalla added.

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Reporting by Marc Jones; Editing by Michael Holden, Catherine Evans, Barbara Lewis and Daniel Wallis

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Large U.S. law firms mostly quiet on abortion ruling, are walking a ‘tightrope’

June 26 (Reuters) – The largest U.S. law firms did not take a public stance following the U.S. Supreme Court’s reversal of Roe v. Wade on Friday, diverging from the approach of some major companies that have made statements on the closely watched abortion case.

The high court’s 6-3 Dobbs decision upheld a Republican-backed Mississippi law that bans abortion after 15 weeks of pregnancy. Many states are expected to further restrict or ban abortions following the ruling.

Reuters on Friday asked more than 30 U.S. law firms, including the 20 largest by total number of lawyers, for comments on the Dobbs ruling and whether they would cover travel costs for employees seeking an abortion.

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The vast majority did not respond by Saturday afternoon, and only two, Ropes & Gray and Morrison & Foerster, said they would implement such a travel policy.

Morrison & Foerster, with nearly 1,000 attorneys, was the only large firm to issue a public statement by Saturday afternoon.

The firm’s chair, Larren Nashelsky, said Morrison & Foerster would “redouble our efforts to protect abortion and other reproductive rights.”

The Dobbs decision has been expected since a draft opinion was leaked in May.

Several major U.S. corporations, including The Walt Disney Co (DIS.N) and Meta Platforms (META.O) said on Friday they will cover travel costs for employees seeking abortions. read more

Industry experts say law firms could speak out on Dobbs in the future if employees and clients push them to take a public stance. For now, firm leaders appear to be carefully weighing the advantages and disadvantages of commenting, including the possibility of alienating clients, experts said.

“This is a tightrope to walk for firms,” said Kent Zimmermann, a law firm consultant with the Zeughauser Group. “They have a diversity of views among their talent and clients.”

Some firms have issued internal communications to employees about the decision. Ropes & Gray Chair Julie Jones said in an internal memo viewed by Reuters that the firm will hold several community gatherings to discuss the ruling and offer “comfort.”

“As a leader of Ropes & Gray, I am concerned about the effect of this decision on our community,” Jones wrote, while acknowledging that her memo may cause “offense to portions of our community.”

A Ropes & Gray spokesperson told Reuters Friday that employees enrolled in its medical plan are eligible for financial assistance to travel out of state for an abortion.

Another large U.S. law firm, Steptoe & Johnson, offered its U.S. workforce the day off on Friday, a spokesperson confirmed. The spokesperson did not immediately respond to further requests for comment.

Despite a dearth of public statements, a number of law firms publicly signaled ahead of the ruling that they planned to provide free legal support to women seeking abortions if Roe was overturned.

Both the New York Attorney General Leticia James and the San Francisco City Attorney David Chiu, with the Bar Association of San Francisco, have convened pro bono initiatives that rely on law firm volunteers. Paul Weiss, Gibson Dunn & Crutcher and O’Melveny & Myers are among the participants.

Paul Weiss Chair Brad Karp called the Dobbs decision a “crushing loss” in an internal message to the firm on Friday provided to Reuters. Paul Weiss and O’Melveny, which both represented Jackson Women’s Health Organization, respondents in the Dobbs case, deferred comment on the ruling to their co-counsel, the Center for Reproductive Rights.

The center said in a statement that the court had “hit a new low by taking away – for the first time ever – a constitutionally guaranteed personal liberty.”

Gibson Dunn did not respond to request for comment.

Robert Kamins, a consultant with Vertex Advisors who works with law firms, said firms will be “very cautious” about taking early positions on the ruling.

“They have to make sure that they are being thoughtful about it,” he said. “What is the business impact? What is the client impact? What is the recruiting impact? There are lots of things to think about.”

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Reporting by Karen Sloan in Sacramento, California, and Jacqueline Thomsen in Swampscott, Massachusetts; Additional reporting by Mike Scarcella in Silver Spring, Maryland; Editing by Rebekah Mintzer, Noeleen Walder and Leslie Adler

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Refugees lack COVID shots because drugmakers fear lawsuits – documents

BRUSSELS/BANGKOK, Dec 16 (Reuters) – Tens of millions of migrants may be denied COVID-19 vaccines from a global programme because some major manufacturers are worried about legal risks from harmful side effects, according to officials and internal documents from Gavi, the charity operating the programme, reviewed by Reuters.

Nearly two years into a pandemic that has already killed more than 5 million people, only about 7% of people in low-income countries have received a dose. Vaccine deliveries worldwide have been delayed by production problems, hoarding by rich countries, export restrictions and red tape. Many programmes have also been hampered by hesitancy among the public read more .

The legal concerns are an additional hurdle for public health officials tackling the coronavirus – even as officials say unvaccinated people offer an ideal environment for it to mutate into new variants that threaten hard-won immunity around the world. Many COVID-19 vaccine manufacturers have required that countries indemnify them for any adverse events suffered by individuals as a result of the vaccines, the United Nations says.

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Where governments are not in control, that is not possible.

The concerns affect people, such as those displaced by the Myanmar, Afghanistan and Ethiopian crises, who are beyond the reach of national governments’ vaccination schemes.

For refugees, migrants and asylum-seekers, as well as people afflicted by natural disasters or other events that put them out of reach of government help, the global programme known as COVAX created a Humanitarian Buffer – a last-resort reserve of shots to be administered by humanitarian groups. Gavi, the vaccine alliance, is a public-private partnership set up in 2000 to promote vaccination around the world.

But that buffer does not have any mechanism to offer compensation. Gavi, which operates COVAX with the World Health Organization (WHO), says that where those applying for doses, mainly NGOs, can’t bear legal risks, deliveries from that stockpile can only be made if vaccine-makers accept liability.

The companies that are willing to do so under these circumstances provide only a minority of the programme’s vaccines, according to people familiar with the matter and the documents, written by Gavi staff for a board meeting starting at the end of November.

More than two-thirds of COVAX doses have come from Pfizer Inc. (PFE.N) and its partner BioNTech SE (22UAy.DE), AstraZeneca PLC (AZN.L) and Moderna Inc. (MRNA.O), Gavi says. Moderna declined to comment. AstraZeneca and Pfizer said they were in talks with Gavi but declined to comment further. All three said they are committed to making doses available to poorer nations at relatively low prices. Pfizer said it was collaborating directly with governments in Jordan and Lebanon to donate doses for refugees.

Mainly because of the legal concerns, less than 2 million doses have so far been sent from the buffer, Gavi says. About 167 million people risk being excluded from national programmes, according to United Nations data cited in the documents.

Unless all the firms accept legal liability, “access to vaccines for some populations will remain a challenge,” the Gavi documents say, adding that new crises will generate additional demand to cover displaced populations.

The vaccine makers’ reluctance to take on the legal risks is “a major hurdle” in attempts to provide vaccines for the buffer, a spokesperson for Gavi told Reuters. Gavi did not comment on the details in the documents, but said applications for vaccines are confidential until the doses are delivered. In September, Gavi’s CEO, Seth Berkley, tweeted an appeal to drugmakers to waive their requirements for legal indemnity.

Three Chinese drugmakers have agreed to shoulder legal risks when their shots are delivered through the buffer: SinoVac Biotech Ltd (SVA.O), Sinopharm Group Co. Ltd (1099.HK), and Clover Biopharmaceuticals Co. Ltd, according to the Gavi document. The drugmakers did not respond to requests for comment.

Johnson & Johnson (JNJ.N) of the United States confirmed it would waive a requirement for indemnity for deliveries from the buffer: “We are proud to be part of this effort to protect the world’s most vulnerable people,” said Paul Stoffels, Vice Chairman of the Executive Committee and Chief Scientific Officer. He did not elaborate.

However, less than one-third of COVAX supplies have come from these four firms, COVAX data shows: Clover’s shot has not yet been approved so is not in use.

The global industry association, the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), said “no company has refused to consider” taking on the legal risk. However, in the case of shots delivered from the buffer, it said some firms felt they could not do so without full knowledge of where and how vaccines would be used.

It would be hard to continuously monitor vaccines for safety in refugee camps, and delivery is logistically very challenging and not suitable for all types, said the European Federation of Pharmaceutical Industries and Associations (EFPIA), which represents large pharmaceutical companies in Europe.

People may blame vaccines for problems that emerge afterwards even if they are unrelated, it said.

“This could then lead to an increased number of litigation cases … during which the safety and efficacy of the vaccine would be publicly questioned,” it said in a statement to Reuters. That might lead to increased vaccine hesitancy and a slower recovery from the pandemic, it said.

So far there is scant information on COVID vaccine litigation, but claims made to out-of-court compensation programmes are one measure of the risk. A programme in the United States has so far not paid out anything, public data show; neither has one set up by the WHO for lower income countries, the WHO said. In Europe, a handful of compensation awards have been granted for undisclosed amounts of money, official data from Denmark, Germany, Norway and Switzerland show read more .

Globally there have been few reported COVID infections among refugees, migrants and asylum-seekers – testing is not always systematic and infections can generate only mild symptoms especially in younger people.

But cramped conditions and weak healthcare expose them to high infection risk. This, combined with low levels of vaccination in a mobile population could favour the emergence of new variants and be a vector for infection, said Mireille Lembwadio, Global Vaccination Coordinator at the International Organization of Migration (IOM), a U.N.-related body that advises governments and migrants.

“Leaving them unvaccinated could help spread the virus and its variants across the world,” she said.

WAITING FOR DOSES

Francois Nosten, a French professor who helps coordinate healthcare for people from Myanmar living on the border with Thailand, is one of those waiting for vaccines. In June, he put in a request from the Humanitarian Buffer for 70,000 doses – some for some of the 90,000 or so who are sheltering in camps along the border, but most for unregistered migrants in the border town of Mae Sot and nearby villages.

Nosten, whose main work is researching malaria, is expecting the doses – a fraction of the more than 8 billion administered worldwide – this month. He has been told they will come from Sinopharm, and he hopes they can help inoculate key at-risk groups in Thailand’s Tak province. Gavi said delivery arrangements are still being finalised.

About 20,000 doses will be given to people in the camps by the International Rescue Committee (IRC), a humanitarian group working with Nosten.

“At this point whatever vaccine we can secure we are grateful for,” said its Thailand Director, Darren Hertz. He added that the IRC believed the likelihood that a member of the refugee population would attempt to take legal action in case of side-effects was “extremely low.”

Hertz said the IRC has received a handful of ad hoc vaccine donations from the Thai government and is currently tackling significant outbreaks in five of nine camps on the border, where about 3,000 cases have been confirmed, including at least 26 deaths. A Thai foreign ministry spokesperson confirmed the government was working with the IRC on providing vaccinations in shelters along the border.

Nosten’s charity, Border Health Foundation (BHF), is one of eight organisations worldwide that have applied to distribute the shots from the Humanitarian Buffer and one of three to be approved, Gavi said.

Ann Burton, Chief of Public Health at the U.N. refugee agency UNHCR, said the liability issue was one reason agencies have been slow to apply. The programme has also been delayed by the general shortage of vaccines and administrative hurdles read more .

Organisations applying for supplies from the buffer may not choose which vaccines they receive. Working with displaced people, Nosten said it would be more convenient to give them Johnson & Johnson’s vaccine, which offers protection after a single dose instead of the two doses needed for Sinopharm’s.

But the Sinopharm version will be “better than nothing,” he said.

More than 100 national governments have promised to offer vaccines where possible to all the displaced people on their soil, according to the IOM. However, the U.N. group says migrants and refugees are often effectively excluded from such schemes because of administrative or cultural hurdles.

In cases where governments aren’t in charge or have not agreed to vaccinate migrants, COVAX’s Humanitarian Buffer is the only option. At least 40 countries have yet to include unauthorised migrants in their vaccination programmes, according to the IOM – it and the UNHCR declined to name the countries.

Gavi set up the buffer in March 2021, planning to reserve up to 5% of vaccine doses as they become available to COVAX, which would amount to roughly 70 million doses so far.

The only shots delivered from the buffer so far – just over 1.6 million Sinopharm doses – landed in Iran in November, where high numbers of displaced Afghans have arrived, UNICEF Iran said. That’s enough to inoculate about 800,000 people; more will likely be needed, UNICEF said.

NEED FOR SPEED

The vaccine makers’ legal concern is rooted in the unprecedented speed of the effort to develop the COVID shots, the EFPIA said.

In normal circumstances, drugmakers buy insurance to cover liability for vaccines’ potential adverse effects. But COVID forced them to develop drugs so quickly that some side effects – for instance, a rare blood-clotting condition in some of those who took the AstraZeneca vaccine – are emerging as shots go into people’s arms.

Many governments and international agencies have set up compensation schemes to reimburse victims and avoid lengthy litigation. An emergency law invoked by the U.S. government provides legal immunity for drug companies for side effects from their COVID-19 vaccines used in the country. The only exception is for instances of “wilful misconduct.”

For drug companies, accepting potential liability runs counter to standard practice.

“Vaccine manufacturers try to minimize legal risks in almost every setting,” said John T. Monahan, Professor at Georgetown University. “The gold standard is full immunity from lawsuits. If they accept carve-outs, it may become more difficult to reach that goal.”

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Edited by Josephine Mason and Sara Ledwith

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Britain sanctions Venezuelan President Maduro’s envoy Saab

LONDON, July 22 (Reuters) – Britain on Thursday sanctioned one of Venezuelan President Nicolas Maduro’s envoys, Alex Saab, in connection with an allegedly corrupt deal to obtain supplies for Maduro’s government-run food subsidy programme.

Saab, a Colombian national, is currently detained in Cape Verde facing extradition to the United States, which accuses him of helping Maduro’s government skirt U.S. sanctions imposed in 2019. read more

Britain said Saab had been sanctioned along with his associate Alvaro Pulido for exploiting two of Venezuela’s public programmes which were set up to supply poor Venezuelans with affordable foodstuffs and housing.

“They benefited from improperly awarded contracts, where promised goods were delivered at highly inflated prices,” the UK Foreign Office said in a statement. “Their actions caused further suffering to already poverty stricken Venezuelans, for their own private enrichment.”

Saab’s lawyers could not immediately be contacted but have previously called the U.S. charges “politically motivated.”

Venezuela’s foreign ministry responded in a statement that Britain was presenting itself as an “anti-corruption judge for the world, while acting as one of the main responsible parties for the theft of assets belonging to all Venezuelans.”

That was a reference to the Bank of England’s refusal to hand over nearly $1 billion in gold to Maduro’s government due to a dispute over whether the gold should go to opposition leader Juan Guaido, who Britain recognises as Venezuela’s legitimate president. read more

Saab was arrested last June in Cape Verde after Interpol issued a so-called red notice.

At the time of his arrest, Saab was en route to Iran to negotiate shipments of fuel and humanitarian supplies to Venezuela, his lawyers previously told Reuters. His plane had stopped in the archipelago nation off the coast of West Africa to refuel.

Also on Thursday Britain sanctioned Teodoro Obiang Mangue, the son of Equatorial Guinea’s president, for misappropriating millions of dollars which London said was spent on luxury mansions, private jets and a $275,000 glove worn by Michael Jackson. read more

Additional reporting by Brian Ellsworth in Caracas; Editing by William Maclean and Chris Reese

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