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October 2012 Archives

East Baton Rouge construction contract stalled in bid dispute

The city-parish of East Baton Rouge says that software developer BidX should assume responsibility for an erroneous contract award that resulted from a glitch in the company's electronic project bidding software. The error resulted in the award of a project for the installation of street lights on Brightside Lane to Jack B. Harper Contractor, Inc. for $719,000. After the announcement of the project award, Diamond Electrical Company notified the city-parish that it had actually submitted a lower bid at $649,000.

Shareholders file suit over proposed cell company merger

Baton Rouge stock watchers may be interested to learn that shareholders of cellular service provider MetroPCS have filed suit to block its acquisition by its larger competitor T-Mobile USA. Even though the dust has barely settled on the announcement of the proposed merger, and regulatory approval is not anticipated until the early part of 2013, the shareholders have been quick to raise allegations of conflicts of interest among the smaller company's board of directors.

Litigation over medical non-compete agreements raises concerns

Finding a good doctor can be both a challenge and a blessing, as Baton Rouge residents may know. A rising trend of litigation between medical professionals has some wondering whether certain common contract provisions should be upheld as valid instruments of employment law or struck down as a violation of patients' rights to visit the doctor of their choice.

Louisiana pension funds succeed in merger lawsuit

Two Louisiana employee pension funds appear to have gotten their way in a shareholder derivative lawsuit related to the proposed sale of Medicaid insurer Amerigroup Corporation to managed care giant Wellpoint. Goldman Sachs negotiated the terms of the sale. The City of Monroe Employees Retirement System and the Louisiana Municipal Police Employees Retirement System commenced the business law action to challenge a perceived conflict of interest in the investment firm's advice to the board of the Medicaid insurer.

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