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When some of the contracts were paid, a public backlash ensued.Fortified by public support, the president initiated a new prosecution.
However a number of experts have said the likelihood of a new prosecution is low.
After a United Nations commission completed its inquiry into her death, the government had brought forward a new prosecution document to court, he said.
Federal law, he said, permits a new prosecution arising out of the same circumstances if an element of the crime that prosecutors must prove would be different.
Consideration of a change in the "double jeopardy" law to enable the appeal court to allow a new prosecution after acquittal "where fresh and viable evidence is presented".
Before the Smith ruling, double jeopardy, which prevents a new prosecution, was found to exist only when defendants were acquitted or when prosecutors had deliberately provoked a mistrial.
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A legal source said he would be "extremely surprised" if any new prosecution was ever mounted, because of the time since the attack, the reliability of the evidence and the difficulties in apprehending any new suspects.
Last year, the Crown Prosecution Service, the agency responsible for reviewing police evidence and laying criminal charges, concluded that there was insufficient evidence for any new prosecutions.
Senior officials of the post-Qaddafi government have also said that any new prosecutions would have to be under Libya's control.
Mr King said said he and others were expected to "remain silent because, as they said in the report, each new prosecution was a dress rehearsal for more claimants".
He accused the Manhattan district attorney's office of acting as a tool of the Justice Department, saying the new prosecution thus violated the double jeopardy clause.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com