The judge in the long-running corruption trial of former Tyco executives Dennis Kozlowski and Mark Swartz declared a mistrial yesterday because of "efforts to pressure the jurors" through intense media scrutiny.
Expressing regret over the breakdown of the trial, Judge Michael Obus cited undue external pressure on a jury member who was identified in the media last Friday after making what appeared to be an "OK" sign to the defendants' lawyers in open court.
In his remarks, Judge Obus defended the juror in question, saying: "No finding has been made remotely that she has done anything wrong."
He said the naming of the juror, by the Wall Street Journal's website and by the New York Post, was lawful, but said it "defied a convention that is ordinarily observed and wisely observed".
The judge is to meet lawyers from both sides on May 7th to set a date for a retrial.
Mr Stephen Kaufman, a defence lawyer, said: "We are disappointed that because of events that occurred outside the courtroom we were unable to bring this case to verdict.
"My client went into this case with courage and determination, and he still has those qualities today," Mr Kaufman said of Mr Kozlowski.
On Monday, Judge Obus rejected a call to declare a mistrial from the defence, who said the defence had been compromised by media reports that singled out the juror, blamed for bringing the jury's deliberations to a standstill last week.
Last week four notes to the court not only said the jury was deadlocked but that the atmosphere was "poisonous" and "irreparably compromised".
It was not immediately clear why the judge had decided to declare a mistrial at this point, rather than on Monday when the defence first challenged the impact of the media identification of the juror on the jury's deliberations.
However, the Associated Press news agency quoted an anonymous source as saying that the juror had received a threatening or coercive letter within the past 24 hours.
Mr Kozlowski and Mr Swartz are accused of stealing $600 million in unapproved compensation and illicit share deals.
Facing up to 30 years in prison, they have pleaded not guilty to charges including grand larceny, conspiracy and securities fraud.
Mr Mark Zauderer, a partner at Piper Rudnick, who serves on a commission to study the state's jury system, applauded the judge's ruling.
"I think this incident in which she received threats on top of the publicity that surrounded her actions probably pushed the judge over the line," he said.