An environmental group filed a lawsuit Thursday alleging that chemicals found in some cat and dog flea collars may pose health risks to pets and pet owners. The Natural Resources Defense Council claims that the presence of propoxur and TCVP, or tetrachlorvinphos, in pet collars violates California anti-toxics laws and could cause cancer or neurological damage in children. The lawsuit seeks to force regulators to remove from the market products containing the chemicals.

California Attorney General Jerry Brown filed a lawsuit Thursday accusing Wells Fargo & Co. of fraud for its role in selling $1.5 billion of risky auction-rate securities to more than 2,000 Californians. According to the lawsuit, three Wells Fargo investment subsidiaries mislead investors to believe the securities were as safe as money market accounts. The lawsuit seeks to recover losses on behalf of Wells Fargo investors including retirees and small business owners.

Popular judicial elections could threaten public trust in the judiciary, retired U.S. Supreme Court Justice Sandra Day O’Connor told lawmakers and attorneys this week. Speaking before the St. Joseph County Bar Association, O’Connor said she fears that judge are less effective and subject to politician pressure if they fear their decisions might dictate how long they will stay in office. Merit-based selection is the best strategy to maintain an independent and impartial judiciary, according to O’Connor.

Nevada lawmakers on Monday passed legislation that aims to do away with a $350,000 cap on non-economic medical malpractice damages. Under the bill, plaintiffs could recover unlimited damages in instances of gross negligence. Support for the issue gained momentum following a widespread Hepatitis C scare last year

The Supreme Court on Tuesday struck a blow to veterans seeking to dispute medical claims denied by the Veterans Affairs Department. Reversing a lower court decision, the justices found that veterans must prove that any alleged mistakes made by the VA ultimately resulted in the denial of their claims. The lower court had ruled that the burden was on the VA. The case is Shinseki v. Sanders.

A federal appeal court is predicting that the Pennsylvania Supreme Court will adopt portions of a legal treatise to help clarify state products liability law. According to a panel from the 3rd U.S. Circuit Court of Appeals, the state Supreme Court will take on Sections 1 and 2 of the American Law Institute’s Restatement (Third) of Torts in restricting claims to "intended users."

Oklahoma Governor Brad Henry on Wednesday vetoed a bill that would prevent lawyers from using settlement money to contribute to candidates, lobbying groups or political action committees. Henry said the legislation, which would have applied only to attorneys, would have violated the state constitution. Henry said he is open to a comprehensive bill covering all businesses and professions.

House Democrats may investigate whether the American International Group Inc. and other insurers tasked with providing coverage for civilian contractors in Iraq and Afghanistan have wrongly denied or delayed claims from injured workers, the Los Angeles Times reports. In a letter to the chairman of the subcommittee on domestic policy, Rep. Elijah E. Cummings called for a probe into AIG’s handling of a taxpayer-finance workers’ compensation program. One analysis determined that AIG had denied 44 percent of all serious injury claims from civilian contractors working overseas.

A bill that would have capped damages in lawsuits against nursing homes has failed to gain subcommittee approval in the Tennessee legislature, the Knoxville News Sentinel reports. Under the proposed legislation, non-economic damages in nursing home cases would have been capped between $300,000 and $500,000. Critics of the bill argued that lawsuits are necessary to prompt nursing homes to improve patient care.

U.S. Steel Corp. and other defendants have asked a judge to move a lawsuit accusing industries of harming children with airborne toxins from state to federal court. According to court filings, the case should be handled in federal court because claims could exceed $5 million. The lawsuit seeks class action status on behalf of children allegedly injured by pollutants released in Lake County, Ind.