McShane Tapped to Fill Federal Court Vacancy

McShane Tapped to Fill Federal Court Vacancy

By DEE MOORE 

     (CN) - A Portland circuit court judge has been nominated to fill a federal court vacancy in Oregon.
     Circuit Court Judge Michael McShane was selected by the president to fill a vacancy in the US District Court of Oregon. McShane has served 11 years as a judge in the Multnomah County Circuit Court.
     If his confirmation is approved by the Senate, McShane will fill the position vacated by District Judge Michael Hogan who assumed senior status last year.
     McShane has "specialized in complex civil litigation" such as "class action lawsuits, medical negligence, contracts and general tort cases," according to press release issued by the public information office of the Ninth Circuit Court. He has also sat on the state's death penalty panel since 2003 presiding over 25 capital cases.
     He is a member of the faculty at his alma mater Lewis and Clark Law School where he teaches trial advocacy and criminal practice.
     Prior to serving as a circuit judge, McShane was member of the Multnomah Public Defenders Office.

Copyright by Courthouse News Service 2012

http://www.courthousenews.com/2012/09/24/50561.htm

Horrific Sepsis Case Described in Oregon

Horrific Sepsis Case Described in Oregon By DEE MOORE       (CN) - A woman who miscarried, lost the ability to ever have a child, and suffered several amputations says in court that negligent doctors and midwives are to blame.      Amaia Rennie says she was displaying signs of sepsis while she was pregnant in December 2011. The illness occurs when the body has a severe response to bacteria or other germs anywhere in the body, according to the U.S. National Library of Medicine.      "As a result of defendants negligence plaintiff suffered sepsis that required bilateral below the knee amputation and amputation of part of nine of her fingers, has greatly decreased kidney function and had dialysis and potentially has other organ damage and no longer can have a baby," according to her complaint in Multnomah County Circuit Court.      Rennie says she called Womens Healthcare Center and spoke to nurse midwife Jabke Buesseler about her symptoms: "a sudden loss of fluid when standing up ... flu-like symptoms with chills, achy and no cramping."      The staff allegedly took little action, however, telling Rennie to lie down, take her temperature and to go to the hospital if there was additional fluid loss or cramping. The next day another midwife, Jody Lindwall, told Rennie that she had most likely ruptured her membranes and that her unborn child would probably not survive, according to the complaint.      Rennie says she was told to go home and discuss her options with her husband. Later that evening her husband took her to the delivery room at Providence Health & Services - Oregon dba Providence St. Vincent Medical Center, according to the complaint.      Rennie learned that the fetus had died, and the hospital allegedly induced labor and moved her to the intensive care unit.      She says that her injuries were caused by the negligence of the Womens Health Care, Providence St. Vincent, Buesseler, Lindwall and and Dr. Shirley Fox.      She and her husband seek $77.1 million. They are represented by Jane Paulson of Paulson Coletti PC of Portland.  Copyright by Courthouse News Service 2012 http://www.courthousenews.com/2012/09/28/50758.htm

Investors Fight Complete Genomics Merger

Investors Fight Complete Genomics Merger

By DEE MOORE 

     (CN) - Shareholders claim in a class action that a merger between Complete Genomics and BGI-Shenzhen resulted from an "unfair and uninformed process."
     Investors claims the $3.15 per share is inadequate despite the offer representing a "54 percent premium to the $2.04 closing price on June 4, the last trading day prior" to Complete Genomics announcement that it was going to 'undertake an evaluation of strategic alternatives" to acquire the funds needed to' commercialize its technology," the complaint states.
     The transaction is valued at $117.6 million. At the same time Complete Genomics took out a $30 million loan with BGI for bridge financing until the merger is complete.
     Complete Genomics provides whole human genome sequencing which, according to the complaint, is used by medical researchers. The company is located in Mountain View, Calif. BGI also operates genome sequencing centers that support scientific research in agriculture, animal husbandry and human genetics.
     Investors claim that they are being denied the right to a "fair process" and that the price offered for their shares does not "reflect the true inherent value of the company." The complaint quotes a Bloomberg news interview with genetics "industry leader Jay Flatley" in which he states that genome sequencing is a highly lucrative venture.
     "It's a very attractive industry, it's growing fast, there's huge potential in so many areas of sequencing that I think it's drawn a lot of attention," Flatley told the news service.
     "While Complete Genomics did have a temporary run of weaker results that depressed its stock price," the complaint states, "the company's recent contract wins and positive publicity, forthcoming CLIA (Clinical Laboratory Improvement Amendments) license and most importantly its industry leading Long Fragment Read technology have created substantial future value prospects for Complete Genomics for which its shareholders will be grossly undercompensated in the proposed acquisition."
     Investors say "draconian" deal protection devices include a "top-up option" which requires the company to issue additional stock after the offer expires which will allow BGI to acquire the 90 percent threshold required to give them control of Complete Genomics. In addition, the merger deal includes a "no solicitation" clause giving a five day window to match any non-solicited offers as well as a termination fee of $4 million.
     Meanwhile, board members entered into a "tender and support agreement with BGI" which guarantees that "17.5 percent of the company's outstanding shares are committed to be tendered in the offer," the complaint states.
     To make sure that there is no opportunity for other potential buyers to step in Complete Genomics has "entered into an agreement with a subsidiary of BGI for a $30 million convertible note (loan agreement) for the company's use," according to the complaint.
     President, chairman and CEO Clifford Reid is named as defendant as is the rest of Complete Genomics board.
     Investors are represented by Brian Robbins, Stephen Oddo, Arshan Amiri, Edward Gerard and Justin Rieger of Robbins Umeda in San Diego.

Copyright by Courthouse News Service 2012

http://www.cnssecuritieslaw.com/2012/09/26/579.htm
    

ChinaHydro Electric Goes to Court to Fight Takeover By 'Insurgent' Group

ChinaHydro Electric Goes to Court to Fight Takeover By 'Insurgent' Group

By DEE MOORE 

     (CN) - ChinaHydro Electric Corporation is taking several companies to court for attempting a hostile takeover, calling defendants an "insurgent group in connection with its scheme to acquire control of the company."
     According to the complaint, all of the defendant companies were passive investors in ChinaHydro until last month when they made their intentions known. Defendants NewQuest Capital Management and CPI Ballpark Investments filed an amendment to its schedule, claiming in it that they now held a majority of shares in the ChinaHydro.
     "The filing disclosed, for the first time, the existence of the group and its plans to seek control of the company, namely to remove a majority of the directors on the company's board of directors and to replace them with a slate of their own nominees," the complaint states.
     "The insurgent group claims in their 13D filing that they beneficially own more than 40%o of the outstanding shares of the company, that they entered into a voting agreement dated August 21, 2012."
     But the "insurgent" group allgedly failed to make shareholders and the public aware of their "accumulation of blocks of stock."
     The group allegedly demanded a board meeting be called so that they could vote the five members they had targeted out and to be replaced with members handpicked by defendants. While the board responded, "the insurgent group decided to jump the gun on their own deadline" by calling an emergency meeting and "took action" and "amended the proxy materials" the complaint states.
     The Cayman Island company is seeking declaratory and injunctive relief to prevent the group from taking over the company. Defendants include CPI Ballpark Investments Ltd., a subsidiary of Newquest Capital Management (Cayman) Ltd., Swiss Re Financial Products Corp., China Environment Fund III, L.P., China Environment Fund III Management, L.P., China Environment Fund III Holdings Ltd., Aqua Resources Fund Limited, FourWinds Capital Management, Abrax, Abrax Limited and IWU International Ltd.
     They are represented by Theodore Altman, Timothy E. Hoeffner, Jonathan Siegfried and Michael P. McMahan DLA Piper LLP in New York and by Edward J. Fuhr and Joseph J. Saltarelli of Hunton & Williams LLP, also of New York.
Copyright by Courthouse News Service 2012
http://www.cnssecuritieslaw.com/2012/09/14/560.htm

Industry Group Raises Alarms Over Volcker Rule

Industry Group Raises Alarms Over Volcker Rule

By DEE MOORE 

     
     (CN) - The Securities Industry and Financial Markets Association has asked for a comprehensive review of the Volcker Rule.
     The industry group sent an open letter to Representative Spencer Bachus, the chairman of the House Financial Services Committee chairman, in response to his call for public comment on the rule.
     "We share the Chairman's concerns that the Volcker Rule ... could have substantial adverse effects on the U.S. and global economies, the competitiveness of U.S. financial institutions, the availability of capital and credit, market liquidity, job growth and a wide range of market participants and investors," the letter states.
     SIFMA asked Bachus for the evaluation in part because the approval process was "hampered by the absence of considered fact-finding and solicitation of informed viewpoints."
     According to the letter, this was because the rule was proposed after the House had already passed its financial reform bill. The goup wants the committee to consider the rule's impact on market liquidity.
     "We strongly believe that the Volcker Rule in its current form will result in costs and other burdens on market participants, including institutional and retail investors, and the wider economy that Congress could not have intended, and will, in fact, increase the likelihood of financial instability," the letter states.
     The agency points to a recent study made by the US Chamber of Commerce's Center for Capital Market's Comprehensiveness which states that the Volcker Rule "will have a significant negative effect on market making and liquidity provision for many securities" as well as making bank risk management less efficient.
     This, according to SIFMA, is supported by a study conducted by Oliver Wyamn, which was commissioned by the group in 2011.
     The Wyman report cites higher funding and debt costs for U.S. companies as a result of the rule which will, also according to the study, make it harder on the American public to "build wealth through participation in liquid, well-functioning securities markets."
     "In light of the risks to the economy, the agencies charged with implementing the Volcker Rule have responsibly proceeded in a very deliberate manner," the group states in its letter to Bachus.
     As an alternative to the Vocker Rule, the agency proposes that the government rely on already enacted or purposed legislation.
     "One wholesale alternative to the Volcker Rule that we urge Congress to explore is reliance on already proposed capital rules and regulations that are under consideration and being implemented," the letter says.
     If this is not an option, the association suggests dramatic modifications to the rule such as reversing "the presumption that all short-term principal trading is impermissible and provide a targeted definition of 'proprietary trading' and clear safe harbors ... should Congress determine to retain the Volcker Rule framework as enacted, we believe that several modifications to the existing statute are necessary to achieve its goals without harming the ability of banking entities to continue to provide client-oriented financial services," the letter states.
     By writing the letter, the group hopes to provide Bachus and the committee with not only criticisms of the rule but viable alternatives on how to proceed with or without it, according to a SIFMA spokesman.
     "Chairman Bachus called for the public comment on what legislative alternatives or revisions people thought would be necessary for the Volcker Rule. Since Dodd-Frank has passed, SIFMA has been a vocal participant in the rulemaking process surrounding the Volcker Rule. We've submitted studies and comment letters to regulators, all of which can be found on our website," SIFMA public affairs director Andrew DeSouza told Courthouse News. "We felt it would be incumbent for us to continue that engagement with offering our thoughts to Chairman Bachus."
Copyright by Courthouse News Service 2012

http://www.cnssecuritieslaw.com/2012/09/10/547.htm