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Government Corruption News Articles
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Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.


Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


The bankers' blockade of WikiLeaks must end
2011-10-24, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/commentisfree/2011/oct/24/bankers-wikileaks-free-sp...

In December 2010 three of the world's biggest payment providers, Visa, Mastercard and Paypal, cut off funding to WikiLeaks. Ten months later, Julian Assange has announced the whistleblowing site will suspend operations until the blockade is lifted – and warned WikiLeaks does not have the money to continue into 2012 at current levels of funding. The banking blockade against WikiLeaks is one of the most sinister developments in recent years, and perhaps the most extreme example in a western democracy of extrajudicial actions aimed at stifling free speech. Payment companies representing more than 97% of the global market have shut off the funding taps between WikiLeaks and those who would donate to it. Unlike many of the country's leading corporations, WikiLeaks has neither been charged with, nor convicted of, any crime at either state, federal, or international level. Visa and Mastercard are already inescapable. As the world becomes ever-more digital ... they will become still more pervasive. If they are allowed to cut off payment to lawful organisations with whom they disagree, the US's first amendment, the European convention on human rights' article 10, and all other legal free speech protections become irrelevant. Those who value free expression, whether they like WikiLeaks or loathe it, should hope it wins its current battle.

Note: For more on this from BBC, click here.


Tepco: radiation from Fukushima plant declines further
2011-10-17, Scientific American/Reuters
http://www.scientificamerican.com/article.cfm?id=tepco-radiation-from-fukushi...

The operator of Japan's tsunami-hit Fukushima nuclear power plant [Tokyo Electric Power (Tepco)] said the amount of radiation being emitted from the complex has halved from a month ago, in the latest sign that efforts to bring the plant under control are progressing. In light of the progress being made in cooling its damaged reactors, which suffered nuclear fuel meltdowns in the first days of the crisis, Tepco formally brought forward its plan to bring the plant to a state of "cold shutdown" within this year. Technically, a cold shutdown is a state in which water used to cool nuclear fuel rods remains below 100 degrees Celsius, preventing the fuel from reheating. Declaring a cold shutdown will have repercussions well beyond the plant as it is one of the criteria the government said must be met before it begins allowing about 80,000 residents evacuated from within a 20 km (12 mile) radius of the plant to go home. Japan faces a massive cleanup task if these residents are to be returned home -- the environmental ministry says about 2,400 square km (930 square miles) of land surrounding Daiichi may need decontamination. Even if a cold shutdown is declared Tepco has acknowledged that it may not be able to remove the fuel from the reactors for another 10 years and that the cleanup at the plant could take several decades.

Note: For more on the Fukushima situation from the standpoint of the tens of thousands of evacuees, click here.


Holder's 'Fast and Furious' comments in question
2011-10-05, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/10/04/MNP21LDCQT.DTL

Rep. Lamar Smith, chairman of the House Judiciary Committee, ... demanded an independent investigation of whether Attorney General Eric Holder misled Congress on what he knew about the botched gun-tracking operation known as "Fast and Furious" - and when he found out about it. The Associated Press reported that the George W. Bush administration conducted a program similar to Fast and Furious, in which Bureau of Alcohol, Tobacco, Firearms and Explosives agents were instructed to let Mexican drug cartel straw purchasers buy guns in the Phoenix area to follow the trail to higher-ups. Known as Operation Wide Receiver, the Bush-era operation also let guns be transferred to suspected arms traffickers. Justice Department prosecutors have brought charges against nine people involved in the operation, according to AP; two have pleaded guilty. Fast and Furious was meant to take down Mexican cartels importing U.S.-bought weapons and shipping drugs to the United States. Phoenix-based ATF agents allowed the gun purchases so they could take down cartel bosses rather than only arresting lower-level purchasers. But the agents lost track of more than 1,000 firearms during the operation last year. Several were later found at the scenes of Mexican drug crimes, according to a report by the House oversight committee.

Note: For key reports from major media sources on government corruption, click here.


Occupy Wall Street rediscovers the radical imagination
2011-09-25, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/commentisfree/cifamerica/2011/sep/25/occupy-wall-st...

Why are people occupying Wall Street? Why has the occupation – despite the latest police crackdown – sent out sparks across America, within days, inspiring hundreds of people to send pizzas, money, equipment and, now, to start their own movements called OccupyChicago, OccupyFlorida, in OccupyDenver or OccupyLA? We are watching the beginnings of the defiant self-assertion of a new generation of Americans, a generation who are looking forward to finishing their education with no jobs, no future, but still saddled with enormous and unforgivable debt. Is it really surprising they would like to have a word with the financial magnates who stole their future? Just as in Europe, we are seeing the results of colossal social failure. The occupiers are the very sort of people, brimming with ideas, whose energies a healthy society would be marshaling to improve life for everyone. Instead, they are using it to envision ways to bring the whole system down. But the ultimate failure here is of imagination. If the occupiers finally manage to break the 30-year stranglehold that has been placed on the human imagination ... everything will once again be on the table – and the occupiers of Wall Street and other cities around the US will have done us the greatest favour anyone possibly can.

Note: A post on the JP Morgan Chase website confirms an unprecedented $4.6 million gift to the New York City Police Foundation. The money was donated ostensibly as a "gift ... to strengthen security in the Big Apple." Now why would this huge bank be donating millions for security in New York City? For key insights from major media sources into the reasons why so many are protesting worldwide, click here.


How the world changed after 9/11
2011-09-12, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/blog/2011/sep/12/9-11-symposium-charlie-skelton

I found myself at a conference on Walker Street called 'How The World Changed After 9/11'. It was packed, but I managed to slide in at the back, to hear a guy called Webster Tarpley chant his own list of names. The names of the 46 military exercises and hijack drills ... that were actually taking place on the morning of September 11. "The greatest density of drills in US military history," Tarpley said. The drills, said Tarpley, were important, because not only did they weaken and confuse US air defence, but there was also a military drill for each major component of the 9/11 attacks. The drills were cover, and the dummy threats were made real. September 11, he argues, was a coup carried out by a rogue network within the US military and government. A cabal of fascists, working with (and for) a banking oligarchy, "the old boys of Wall Street". "You want to blame Saudi Arabia, or Israel, or Pakistan? You can't. There isn't the evidence." The evidence, Tarpley says, points towards 9/11 as a false flag attack, carried out by a high level clique, that forced a shocked and awestruck US public into a vast and still ongoing war. It was America's very own Reichstag fire. What I heard, from speaker after speaker, was a heartfelt desire to turn away from the path of destruction, militarism and lies that America has been set upon after 9/11.

Note: For questions raised about the official story of 9/11 by hundreds of highly-respected citizens from all walks of life, click here and here. For a four-minute invited commentary at PressTV (Iran) by Tod Fletcher of WantToKnow on the falsity of the official account of 9/11, click here.


The Whistleblowers’ How-To Guide
2011-09-11, The Daily Beast/Newsweek
http://www.thedailybeast.com/articles/2011/09/11/frederic-whitehurst-more-whi...

Frederic Whitehurst had no idea what being a whistleblower entailed. He simply became outraged when he witnessed a colleague in the FBI laboratory giving misleading testimony in a criminal case two decades ago. So the supervisory agent decided to speak up, telling the defense experts about the inaccuracies. It cost him nearly a decade of his career, almost all his life savings, several emotionally draining internal investigations, the humiliation of a psychiatric exam, and an epic legal fight with the bureau. But the proudly stubborn Vietnam veteran persevered and ultimately prevailed in forcing sweeping ethical and scientific reforms at the vaunted FBI crime lab that began in the 1990s and still reverberate today. And while he’d do it all again, Whitehurst doesn’t want future whistleblowers to make the same mistakes he did. That’s why he and 19 other of America’s most famous corporate and government muckrakers of the last quarter century have banded together this month to donate thousands of copies of a book by their lawyer, Stephen Kohn, to libraries across America. Their goal is to give the next generation of American whistleblowers a roadmap, a virtual how-to guide to ensure they can call out wrongdoing successfully, be protected from the customary retributions, and maybe even cash in on False Claim Act awards that can reach into the millions of dollars. [They] are using their own money to buy copies of Kohn’s book, The Whistleblower’s Handbook: A Step-by-Step Guide to Doing What’s Right and Protecting Yourself, and donating them to libraries around the country.

Note: For deeply revealing reports from reliable major media sources on government corruption, click here.


A decade after the 9/11 attacks, Americans live in an era of endless war
2011-09-04, Washington Post
http://www.washingtonpost.com/world/national-security/a-decade-after-the-911-...

This is the American era of endless war. America’s embrace of endless war [has unfolded] in the 10 years since Sept. 11, 2001. In previous decades, the military and the American public viewed war as an aberration and peace as the norm. Most soldiers and Marines in today’s military have seen their entire careers consumed by combat. During last year’s 9/11 anniversary, Lt. Col. Christopher M. Coglianese accompanied his second-grade daughter on her school’s annual Freedom Walk outside Fort Hood, Tex. “Basically the whole student body walks around the grounds of the school wearing patriotic garb and carrying signs about freedom,” Coglianese recalled in an e-mail from Iraq, where he is on his third tour. “To be honest there was a certain surrealism about it,” Coglianese wrote. “For this very small slice of American children this way of life is completely normal.” The long stretch of war has also isolated the U.S. military from society. Top military officials fret that the troops are developing a troubling sense that they are better than the society they serve. “Today’s Army, including its leadership, lives in a bubble separate from society,” wrote retired Lt. Gen. David Barno, who commanded U.S. forces in Afghanistan, in an essay for the Web site of Foreign Policy magazine. “This splendid military isolation — set in the midst of a largely adoring nation — risks fostering a closed culture of superiority and aloofness. This must change if the Army is to remain in, of, and with the ever-diverse peoples of the United States.”

Note: For lots more on all facets of America's endless war, click here.


A matter of risk: Radiation, drinking water and deception
2011-09-03, KHOU-TV (Houston, TX)
http://www.khou.com/community/A-Matter-of-Risk--Radiation-Drinking-Water-and-...

For the past year the KHOU 11 News I-Team has been investigating the quality of the tap water in Texas. What they found was surprising: That many of the state's communities have a real problem with radioactive contamination in their local drinking water. However, the team also discovered that many of those consuming it didn't know they were also being exposed to a health risk. State scientists found some of Texas’ water could pose a 1 in 400 cancer risk. Neighborhoods across the state have been getting illegal amounts of a particularly damaging form of radiation, an exposure that some say was “covered-up” by Texas officials. Water with under-the-legal-limit amounts of radiation still might not be “safe”. Concentrated "bursts" of radiation could be released into your home ... from water pipes that become "a hidden risk" themselves.

Note: For key reports from reliable sources on government corruption, click here.


The race is on for Libya's oil, with Britain and France both staking a claim
2011-09-01, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/2011/sep/01/libya-oil

The starting pistol has been fired on bids by Britain and other western powers to secure a slice of the oil prize in Libya when France said it was "fair and logical" for its companies to benefit. Alain Juppé, the French foreign minister, [told] the Guardian ... that BP was already holding private talks with members of Libya's interim government. Rebel leaders had already made clear that countries active in supporting their insurrection – notably Britain and France – should expect to be treated favourably once the dust of war had settled. [But] the new Tripoli government has denied the existence of a reported secret deal by which French companies would control more than a third of Libya's oil production in return for Paris's support for the revolution. The letter referring to the reported deal [was published] in the French daily newspaper Libération. It purported to show an undertaking by the National Transitional Council (NTC) to reserve "35% of total crude oil in exchange for the total and permanent support for our council".

Note: The descent of the corporate vultures on the corpse of Libya clearly exposes the profiteering which motivates modern war. For key reports on corporate and government corruption from major media sources, click here and here.


UK's secret policy on torture revealed
2011-08-04, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/politics/2011/aug/04/uk-allowed-interrogate-torture...

A top-secret document revealing how MI6 and MI5 officers were allowed to extract information from prisoners being illegally tortured overseas has been seen by the Guardian. The interrogation policy ... instructed senior intelligence officers to weigh the importance of the information being sought against the amount of pain they expected a prisoner to suffer. It was operated by the British government for almost a decade. The fact that the interrogation policy document and other similar papers may not be made public during the inquiry into British complicity in torture and rendition has led to human rights groups and lawyers refusing to give evidence or attend any meetings with the inquiry team because it does not have "credibility or transparency". The decision by 10 groups – including Liberty, Reprieve and Amnesty International – follows the publication of the inquiry's protocols, which show the final decision on whether material uncovered by the inquiry, led by Sir Peter Gibson, can be made public will rest with the cabinet secretary. Some have criticised the appointment of Gibson, a retired judge, to head the inquiry because he previously served as the intelligence services commissioner, overseeing government ministers' use of a controversial power that permits them to "disapply" UK criminal and civil law in order to offer a degree of protection to British intelligence officers committing crimes overseas.

Note: Isn't it quite unusual for human rights organizations to refuse to participate in an inquiry into government abuses of human rights? Evidently the conflicts of interest of the inquiry head Gibson are so extreme that participation is simply impossible.


Obama sets fuel-efficiency goal: 54.5 mpg by 2025
2011-07-30, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/29/BAS81KGSRJ.DTL

Fuel efficiency of automobiles in the United States will increase dramatically under an agreement reached by the federal government, auto manufacturers and the state of California that was announced by President Obama on [July 29]. The agreement requires that cars and light-duty trucks achieve an average fuel economy of 54.5 miles per gallon by 2025, up from the requirement of 35.5 miles per gallon that is mandated by 2016. The new requirement will ... reduce oil consumption by 2.2 million barrels per day by 2025. Currently, the United States imports 9.1 million barrels of oil per day. Thirteen auto manufacturers, which account for 90 percent of vehicles sold in the United States, agreed to the standard. They are Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo. The fuel economy standard is an average for a fleet of cars, which means that the actual miles per gallon for some vehicles will be lower because fleets also include electric cars and other vehicles that will far exceed the standard. The average vehicle at a dealership is likely to be closer to 40 miles per gallon, though that is double the average today.

Note: Some people believe the market drives innovation in gas mileage. As this article clearly shows, this is not the case. For a revealing article showing how car manufacturers have avoided better gas mileage, click here.


Phone hacking: US authorities preparing to subpoena News Corp
2011-07-22, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/media/2011/jul/22/phone-hacking-authorities-subpoen...

The judicial screws are tightening on Rupert Murdoch's empire in America as the US justice department prepares to subpoena News Corporation in its investigation into whether the company broke anti-bribery and hacking laws on both sides of the Atlantic. The news that subpoenas are being drawn up, reported by News Corp's flagship newspaper the Wall Street Journal, comes a week after attorney general Eric Holder said he was launching a preliminary investigation into the media group as a result of the UK phone-hacking scandal. In addition, it has emerged that federal prosecutors have begun probing allegations that News Corp's advertising arm in the US hacked into a computer of a competitor as part of a campaign to crush its rival. News Corp also faces a possibly lengthy and costly federal probe into whether it broke anti-bribery laws as part of the illegal News of the World phone hacking in the UK. The company is potentially liable under the Foreign Corrupt Practices Act (FCPA), which bans US-based companies from profiting from bribery and corruption in other countries. News Corp is a US-based firm, its headquarters on Sixth Avenue in Manhattan. FCPA experts have suggested that it could be brought under the auspices of the act because News of the World journalists bribed police officers in the UK in search of exclusive stories that in turn increased sales and generated profits.

Note: For lots more from major media sources on corporate and government corruption, click here and here.


Another Top Police Official Resigns in British Scandal
2011-07-19, New York Times
http://www.nytimes.com/2011/07/19/world/europe/19hacking.html

The phone hacking scandal in Britain claimed another high-profile casualty on [July 18] when John Yates, the deputy commissioner of the Metropolitan Police in London, resigned his post. His departure comes a day after the country’s top police officer quit and Rebekah Brooks, the former chief executive of Rupert Murdoch’s News International, was arrested on suspicion of illegally intercepting phone calls and bribing the police. Such is the severity of the crisis swirling around the Murdoch empire and Britain’s public life that Prime Minister David Cameron cut short an African trip on Monday and, bowing to opposition pressure, called a special parliamentary session on Wednesday to debate the widening scandal. Mr. Murdoch, his son James and Ms. Brooks are set to testify before a parliamentary inquiry into the scandal on Tuesday. The home secretary, Theresa May, said on Monday that the country’s Inspectorate of Constabulary, a police oversight body that reports to her, would investigate possible corruption in the links between the police and journalists. Mr. Yates has been criticized for his decision not to reopen the investigation even though the police under his command possessed some 11,000 pages of largely unexamined evidence. “I’m not going to go down and look at bin bags,” Mr. Yates said.

Note: For lots more on media and government corruption click here and here.


Among The Costs Of War: Billions A Year In Air Conditioning?
2011-06-25, NPR
http://www.npr.org/2011/06/25/137414737/among-the-costs-of-war-20b-in-air-con...

The amount the U.S. military spends annually on air conditioning in Iraq and Afghanistan: $20.2 billion, according to a former Pentagon official. That's more than NASA's budget. "When you consider the cost to deliver the fuel to some of the most isolated places in the world — escorting, command and control, medevac support — when you throw all that infrastructure in, we're talking over $20 billion," Steven Anderson tells ... All Things Considered. He's a retired brigadier general who served as chief logistician for Gen. David Petraeus in Iraq. The Pentagon rejects Anderson's estimate. Still his claims raise questions about how much the US footprint in Afghanistan really costs – especially something like air conditioning. To power an air conditioner at a remote outpost in landlocked Afghanistan, a gallon of fuel has to be shipped into Karachi, Pakistan, then driven 800 miles over 18 days to Afghanistan on roads that are sometimes little more than "improved goat trails," Anderson says. "And you've got risks that are associated with moving the fuel almost every mile of the way." Anderson calculates that more than 1,000 troops have died in fuel convoys, which remain prime targets for attack. Freestanding tents equipped with air conditioners in 125-degree heat require a lot of fuel.

Note: For lots more from reliable sources on government corruption, click here.


Pundit Under Protest
2011-06-14, New York Times
http://www.nytimes.com/2011/06/14/opinion/14brooks.html

The two parties contesting this election are unusually pathetic. Their programs are unusually unimaginative. Their policies are unusually incommensurate to the problem at hand. The election is happening during a downturn in the economic cycle, but the core issue is the accumulation of deeper structural problems that this recession has exposed — unsustainable levels of debt, an inability to generate middle-class incomes, a dysfunctional political system, [and] the steady growth of special-interest sinecures. Workers’ share of national income has been declining since 1983. Male wages have been stagnant for about 40 years. The American working class — those without a college degree — is being decimated, economically and socially. Voters are certainly aware of the scope of the challenges before them. Their pessimism and anxiety does not just reflect the ebb and flow of the business cycle, but is deeper and more pervasive. Trust in institutions is at historic lows. Large majorities think the country is on the wrong track, and have for years. Large pluralities believe their children will have fewer opportunities than they do. Voters are in the market for new movements and new combinations, yet the two parties have grown more rigid.


Missing Iraqi billions 'probably stolen'
2011-06-14, Sydney Morning Herald (One of Australia's leading newspapers)
http://www.smh.com.au/world/missing-iraqi-billions-probably-stolen-20110613-1...

This month, the Pentagon and the Iraqi government are finally closing the books on the program that handled funding for reconstruction in postwar Iraq. But despite years of investigations, US defence officials still cannot say what happened to $US6.6 billion ($6.3 billion) of the cash. Federal auditors are now suggesting that some or all of the cash may have been stolen, not just mislaid in an accounting error. After the US-led invasion in March 2003, the Bush administration flooded Iraq with so much cash that a new unit of measurement was born. Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $US2.4 billion in shrink-wrapped bricks of $US100 bills. They sent an initial full planeload of cash followed by 20 other flights by May 2004 in a $US12 billion haul that US officials believe to be the biggest ever international cash airlift. Stuart Bowen, special inspector-general for Iraq reconstruction, said the missing $US6.6 billion might be ''the largest theft of funds in national history''. Iraqi officials are threatening to go to court to reclaim the money, which came from Iraqi oil sales, seized Iraqi assets and surplus funds from the United Nations' oil-for-food program. Pentagon officials have contended for the past six years that they could account for the money if given enough time to track down the records. But repeated attempts to find the documentation, or better yet the cash, were fruitless.

Note: For key reports from major media sources on government corruption, click here.


Israel government 'reckless and irresponsible' says ex-Mossad chief
2011-06-03, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/2011/jun/03/israel-government-reckless-mossad...

The former head of Israel's spy service has launched an unprecedented attack on the country's current government, describing it as "irresponsible and reckless", and has praised Arab attempts to reach an Israeli-Palestinian peace agreement. Meir Dagan stepped down as the head of Mossad six months ago but has gone on the offensive in a series of briefings with journalists and public appearances because he feels that Israel's security is being mismanaged by Binyamin Netanyahu, the prime minister, and Ehud Barak, the defence minister. Upon leaving his post, Dagan publicly warned against Israel attacking Iran to stop it from acquiring nuclear weapons. In his latest comments, he said that if Israel attacks Iran, it will find itself at the centre of a regional war that would endanger the state's existence. Dagan's intervention is dangerous for Netanyahu because it comes from the right wing of Israeli opinion rather than the left, where the prime minister would expect criticism. [Dagan] also criticised Israel's failure to offer any initiative to resolve the conflict with the Palestinians. Dagan also endorsed Saudi Arabia's peace plan which offered Israel normal relations with all Arab countries if it reaches a peace agreement with the Palestinians.


Chiquita sued over Colombian paramilitary payments
2011-05-30, Miami Herald/Associated Press
http://www.miamiherald.com/2011/05/30/2242250/chiquita-sued-over-colombian-pa...

Each name is next to a number, in black type on a thick legal document. They are the mothers and fathers, spouses, sisters and brothers of thousands of Colombians who were killed or vanished during a bloody civil conflict between leftist guerrillas and right-wing paramilitary groups whose victims have largely been civilians. The list has at least 4,000 names, each one targeting Chiquita Brands International in U.S. lawsuits, claiming the produce giant's payments and other assistance to the paramilitary groups amounted to supporting terrorists. Cincinnati-based Chiquita in 2007 pleaded guilty to similar criminal charges brought by the Justice Department and paid a $25 million fine. But if the lawsuits succeed, plaintiffs' lawyers estimate the damages against Chiquita could reach into the billions. The cases filed around the country are being consolidated before a South Florida federal judge who must decide whether to dismiss them or let them proceed. Chiquita has long maintained it was essentially blackmailed into paying the paramilitary groups - perpetrators of the majority of civilian deaths in Colombia's dirty war.

Note: For lots more on corporate corruption from reliable sources, click here.


Raw milk raids leave sour taste
2011-05-30, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/29/EDB11JMIAV.DTL

The government is conducting armed raids on dairies that sell raw milk, [yet it allows us] to buy food that is so toxic ... it has to carry "safe handling instructions." Factory farms that knowingly produce chicken and eggs teeming with salmonella are not considered a threat to public health, but an impeccably clean organic raw milk dairy is treated like a meth lab. I used to think the "food freedom" activists were being paranoid about this stuff. Not anymore. The federal government is broke, but we're hiring 18,000 food police, to the tune of hundreds of millions of dollars. How does this happen? The former CEO of genetically modified organism powerhouse Monsanto is now our secretary of agriculture and head of food safety. Talk about the fox guarding the henhouse. Tell your representatives to defund the Food Safety Modernization Act of 2010, and buy organic and local. While you still can.

Note: For more on this bizarre development, click here and here.


Companies can block customers' class-action lawsuits, Supreme Court rules
2011-04-27, Los Angeles Times
http://www.latimes.com/business/sc-dc-0428-court-class-action-web-20110427,0,...

The Supreme Court gave corporations a major win [on April 27], ruling in a 5-4 decision that companies can block their disgruntled customers from joining together in a class-action lawsuit. The ruling arose from a California lawsuit involving cellphones, but it will have a nationwide impact. In the past, consumers who bought a product or a service had been free to join a class-action lawsuit if they were dissatisfied or felt they had been cheated. By combining these small claims, they could bring a major lawsuit against a corporation. But in [the] decision, the high court said that under the Federal Arbitration Act companies can force these disgruntled customers to arbitrate their complaints individually, not as part of a group. Consumer-rights advocates said this rule would spell the end for small claims involving products or services. Justice Antonin Scalia said companies may require buyers to sign arbitration agreements, and those agreements may preclude class-action claims. But the dissenters said a practical ban on class action would be unfair to cheated consumers. Justice Stephen G. Breyer said the California courts had insisted on permitting class-action claims, despite arbitration clauses that forbade them. Otherwise, he said, it would allow a company to "insulate" itself "from liability for its own frauds by deliberately cheating large numbers of consumers out of individually small sums of money."

Note: For lots more on government corruption from reliable sources, click here.


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