| New Documents |
NSC:
International
Crime Threat Assessment, undated (HTML, NSC).
Milberg:
Complaint
against pcOrder alleging violation of federal securities laws,
12/26 (PDF, Milberg).
Milberg: Complaint
against CapRock Communications alleging violation of federal
securities laws, 12/20 (PDF, Milberg). |
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| Quote of the Day |
"Transactions involving technology or components for
weapons of mass destruction or embargoed items under US or
international sanctions are being done through computers.
Virtually any commodity, including weapons of mass destruction
and their component parts and delivery systems, is being
offered for international sale on Internet sites. US Customs
investigations show that many Internet sellers of contraband
materials openly advertise that they have been in operation
for many years without being caught by law enforcement."
National Security Council, and other members of a U.S.
interagency group, from a report titled International
Crime Threat Assessment. |
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| News Briefs |
12/27. Bill Clinton made a "recess appointment"
of an Article III judge. Clinton released a statement
that he "appointed Roger Gregory to serve on the
United States Court of Appeals for the Fourth Circuit."
The Fourth Circuit includes Maryland, North Carolina, South
Carolina, Virginia, and West Virginia. The Eastern District of
Virginia, which includes the northern Virginia suburbs of
Washington DC, is home AOL and many other new economy
companies, and has an active technology law docket. This
"recess appointment", like Clinton's appointment of Susan
Ness to the FCC on Dec. 18,
was made in the brief window between the adjournment of the
106th Congress in mid December, and the convening of the 107th
Congress in early January. Clinton had sought, but failed to
obtain, Senate confirmation of both Ness and Gregory.
12/27. DSL provider Digital
Broadband filed a petition for Chapter 11 bankruptcy in
U.S. Bankruptcy Court. It also stated that "At the close
of business on January 12, we will turn down our network, and
Digital Broadband will no longer be providing your voice, data
or Internet services."
12/26. A U.S. interagency
group released a report dated December 2000 titled International
Crime Threat Assessment that addresses both criminal
violations of intellectual property rights and use of
technology to commit and conceal crimes. The report concluded
that "As worldwide dependence on technology increases,
high-tech crime is becoming an increasingly attractive source
of revenue for organized crime groups, as well as an
attractive option for them to make commercial and financial
transactions that support their criminal activities. With
little of the risks and penalties associated with more
traditional criminal activity, high-tech crime allows
criminals to operate in the relative security of computer
networks, often beyond the reach of law enforcement where the
crime was committed." See, extended
excerpts on technology related subjects.
12/22. Bill Clinton granted a pardon to former Rep. Dan
Rostenkowski (D-IL). He lost his bid for re-election in
Nov. 1994. He was convicted of two counts of mail fraud in
violation of 18 U.S.C. §§ 1341 and 1346 in 1996. See, DOJ
release. He had been Chairman of the House Ways and Means
Committee. The outgoing Chairman, Rep. Bill Archer (R-TX),
retired at the end of the 106th Congress. Two senior members
of the Committee are currently seeking the Chairmanship, Rep. Phil Crane (R-IL)
and Rep. Bill
Thomas (R-CA). Rep. Crane, who is currently the Chairman
of the Trade Subcommittee, represents a suburban Chicago
district. Rep. Thomas, who is currently the Chairman of the
Health Subcommittee, represents the 21st District, which lies
between Los Angeles and Fresno, and includes much of Kern and
Tulare Counties. In recent years the Committee has addressed
many issues that affect technology, including foreign trade,
PNTR status for China, foreign sales corporations, trade
related aspects of intellectual property, taxation of phone
users to fund e-rate subsidies, capital gains from venture
capital partnerships, Internet taxation, depreciation of
computer equipment, and the excise tax on telephones.
12/21. Bill Clinton made a recess appointment of James
Dorskind to be General Counsel at the Commerce Dept. He previously
worked for the law firm of Friedman Ross & Hersh, and for
the 1992 Clinton/Gore election campaign. See, White
House release. |
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| Editor's Note: This column includes all News Briefs
added to Tech Law Journal since the last Daily E-Mail Alert.
The date indicates when the event occurred, not the date of
posting to Tech Law Journal. |
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| Securities Litigation |
12/26. An individual named Jean Burke filed a complaint
[PDF] in U.S. District Court (WDTex)
against pcOrder.com,
several of its officers and directors, its controlling
shareholder, Trilogy
Software, and several underwriters, alleging violations of
federal securities laws. The plaintiff, who seeks class action
status, is represented by several law firms, including Milberg Weiss. Count one
alleges violation of §11 of the Securities Act, 15 U.S.C. §77k,
by pcOrder, Trilogy, and the individual defendants. Count two
alleges violation of §11 by the underwriter defendants. Count
three alleges violation of §15 of the Securities Act, 15
U.S.C. §77o, by all defendants. The suit pertains to the
content of two pcOrder registration statements filed with the SEC. Milberg Weiss is a law
firm that specializes in bringing securities class action
suits against technology companies.
12/21. The U.S. District Court (EDVa)
dismissed 14 of 15 lawsuits filed against PSINet
and several of its officers that alleged violation of federal
securities laws, and sought class action status. The Court
granted in part, and denied in part, PSINet's motion to
dismiss one remaining action, which was brought by the law
firm of Berger & Montague.
The Court dismissed claims brought under §10b of the
Securities Exchange Act of 1934, and Rule 10b5 thereunder
(securities fraud). However, the Court denied the motion to
dismiss as to claims brought under §§ 11, 12(a)(2) and 15 of
the Securities Act of 1933 (regarding statements in
registration statement and prospectus). See, PSINet
release and Berger
& Montague release. PSINet provides corporate Internet
access, private IP networks, Internet security, web and
database hosting services, e-commerce solutions, and voice,
fax, live audio-video, and other applications.
12/20. An individual named Herbert Becker filed a complaint
[PDF] in U.S. District Court (NDTex)
against CapRock
Communications, several of its officers and directors, and
several underwriters, alleging violations of federal
securities laws. The plaintiff, who seeks class action status,
is represented by several law firms, including Milberg Weiss. Count one
alleges violation of §11 of the Securities Act, 15 U.S.C. §77k,
by CapRock and the individual defendants. Count two alleges
violation of §11 by the underwriter defendants. Count three
alleges violation of §12(a)(2) of the Securities Act by
CapRock and the underwriter defendants. Count four alleges
violation of §15 of the Securities Act, 15 U.S.C. §77o, by
the individual defendants. The suit pertains to the content of
a registration statement and prospectus filed with the SEC in
connection with an IPO. CapRock is building an extensive fiber
optic network in the Southwestern U.S. Milberg Weiss is a law
firm that specializes in bringing securities class action
suits against technology companies. |
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