Goldman Sachs Groupdelayed until April 11 a vote on a shareholder's proposal to prohibit issuance of new stock options to executives. At its annual meeting Tuesday morning, shareholders overwhelmingly defeated two other proposals the company opposed regarding its charitable contributions and environmental policies.

Goldman delayed the options vote because the proposal was left out off the Feb. 21 proxy document sent outlining the annual meeting agenda. Goldman on March 19 sent shareholders an amended proxy with the proposal.

Goldman Chief Executive Lloyd Blankfein apologized to longtime corporate governance gadfly Evelyn Y. Davis, who made the proposal, for losing it. Davis had addressed it to former Goldman Chairman and CEO Henry Paulson rather than to Blankfein, who assumed the top posts last June. (Davis suggested at the meeting that Goldman fire its corporate secretary for the mishap.)

The proposal would bar Goldman from granting options to "anyone" because the awards "have gone out of hand in recent years," Davis's proposal says, and create distortions in managing the company because options can be tied to short-term earnings gains. Goldman's directors oppose the plan because it would put the investment bank "at a disadvantage in retaining, motivating and recruiting employees," the proxy said. Blankfein on Tuesday said the company needs both stock grants, which Davis supports, and option grants to successfully compete.

Blankfein was paid $54 million last year, including 209,228 options that the proxy statement valued at $10.5 million. His two lieutenants - Presidents Gary Cohn and Jon Winkelried - each collected options valued at $10.3 million. The trio collectively received about 21% of all options Goldman granted employees last year.

Net income at Goldman rose 70% in 2006 to a Wall Street record of $9.4 billion while its stock price soared 56%. Blankfein's compensation rose 42%.
As of the end of last November, the 52-year-old executive held $63.2 million of options that he had not yet converted into stock, according to the proxy statement.

A Goldman shareholder earlier this month filed a lawsuit against claiming the bank awarded too many options to top executives because it miscalculated their worth under the Black-Scholes valuation model it uses. The lawsuit against the firm and its directors seeks to void the election of directors at the meeting and to require a new accounting of the options.

Options granted the firm's top five executive officers in 2006 are worth $23 million more than Goldman disclosed in its proxy statement, the lawsuit said.
A Goldman spokesman said the company will "vigorously contest" the lawsuit.

On Tuesday, about 93% of voting shareholders approved electing all the bank's directors to one-year terms. Fewer than 7% voted for proposals from politically conservative interest groups that would have required a semiannual accounting of its charitable contributions and, separately, a policy paper explaining its environmental policies. A representative of the National Legal and Policy Center, which sponsored the charitable donation proposal, lashed out at Goldman on Tuesday for donating funds to Rainbow Push and other organizations led by Rev. Jesse Jackson.

In other matters, Blankfein said Goldman expects to raise $19 billion to $20 billion in its new private equity fund. The fund is about to be closed, and the amount raised is more than double money raised from outside investors and the firm itself in any of its five earlier private equity funds.
In another private equity discussion, Blankfein said Goldman maintains good relations with The Blackstone Group, despite the bank's absence from the underwriting group leading the private equity firm's initial public offering. Goldman sometimes can't do deals because of conflicts, he said.

He also defended Goldman's growing commitment of its own capital to trading and investing, saying the increased risk has been justified by supersized gains in capital and profits in recent years. The proprietary activities do not jeopardize relations with corporate clients because Goldman maintains "very very strict, high impermeable walls" between its client and proprietary activities to avoid conflicts of interest, he said.

He cited its status as Wall Street's biggest merger advisor and raiser of equity as testament to clients' loyalty.

Blankfein said he opposed government regulation of hedge funds because of the difficulty in creating "sensible regulations" for firms that rely on the funds' "very nimble" trading strategies. Goldman has no direct investments in hedge funds, but provides trading services and short-term loans to the funds through its large prime brokerage business. Goldman also manages almost $200 billion of its own and clients' money in alternative investments such as private equity and hedge funds, he said.

Fielding questions from shareholders on other issues, Blankfein said Goldman has no plans to split its stock, which currently trades at more than $200 a share, or close down its stock specialist operations on U.S. exchanges.

Shares of Goldman were down $1.36 to $210.37, or .6%, in early afternoon trading on The New York Stock Exchange. Shares of its largest competitors were off by about 1%.

A lawsuit was filed Monday in Perry County Circuit Court by Illinois Assistant Attorney General Jeffrey M. Feltman on behalf of Attorney General Lisa Madigan and the People of the State of Illinois against Du Quoin's Heartland Ford Inc., Automotive Partners Inc., Illinois Automotive Partners Inc., Peter Iodice and Donald James McPherson alleging consumer fraud and deceptive business practices.

The suit alleges that the company allegedly took vehicles as trade-ins and did not pay the outstanding debts resulting in damages to a number of individuals. 

The suit also alleges the business in many instances didn't pay sales taxes, license and title fees and other expenses that it contracted to pay when people traded in their vehicles to purchase other vehicles.

The suit seeks to enjoin defendants from engaging in any vehicle business in Illinois, to have contracts with harmed people rescinded, and it asks for a civil penalty against each defendant of $50,000 per violation of the Consumer Fraud and Deceptive Business Practice Act.

Feltman said the first priority is assuring that none of the corporations or individuals comprising Heartland Ford is ever allowed to engage in the automobile sales business in Illinois. Along with the injunctions being sought, the state is also seeking restitution and rescission, he said.

Rescission would in essence nullify the outstanding contracts between Heartland and the people whose contracts weren't followed by Heartland and its owners, he said. He said this would require payment of all of the outstanding obligations.

The chancery suit lists a dozen people who allegedly purchased vehicles between April 7, 2006, and June 5, 2006, with the deals including a vehicle trade-in on which they owed from $1,680 to $18,457 but which was not paid off by Heartland as was promised in the deal.

The suit claims that one or more of the individuals suffered damage to their credit ratings, that they have been "dunned" by creditors, that they have had to make payments on both their old and new vehicles, that they have been charged for repairs that should have been covered under extended warranties that they paid for but for which funds weren't forwarded to the appropriate places.

It's also alleged that in one or more cases, the involved parties had their licenses revoked for having no insurance, that they have been driving without insurance because they can't insure vehicles for which they don't have paperwork or that they are unable to get titles and licenses for vehicles.

The lawsuit alleges that Heartland, located at 1355 S. Washington St., was dissolved involuntarily June 16, 2006, after an Illinois Secretary of State Police investigation. According to the suit, Heartland was acquired by Automotive Partners Inc. between Sept. 29, 2005, and Feb. 16, 2006, and ownership transferred to Illinois Automotive Partners Inc. On that February date, McPherson allegedly paid $100,000 to Peter Iodice for a 10 percent interest in the business and since that time they operated as co-owners, Madigan's suit claims.

It further alleges that they operated as owners from then until the business was closed down and during that time they failed to pay off trade-in loans, Department of Revenue taxes, third party gap insurance, extended warranties and license and title fees on numerous vehicles and yet McPherson allegedly deposited money in an account at the Du Quoin State Bank from which he withdrew $100,000 between May 29 and June 15, 2006, despite owing the outstanding debts.

Feltman said those named in the suit are representative of 31 complaints the office has on file from former Heartland customers. He said the investigation led authorities "to the conclusion that litigation was the only option" to assure no more problems occur and that the victims are properly compensated.

The defendants in the case have 30 days to file a response to the lawsuit; Feltman said it is "total speculation" as to how long it will take to resolve the case. It could be completed soon or could last for some time.

In the meantime, he said if others have complaints against the business they should call the attorney general's regional office at 529-6400 for a consumer fraud complaint form and complete and return that form.

Those whose complaints are already being handled, Feltman said, should contact private attorneys to learn what their rights and obligations are at this time regarding the outstanding debts on their vehicles, both new and trade-ins.

Perry County State's Attorney David Stanton said he is awaiting reports from investigating agencies before determining if and what charges he might file. He said the Secretary of State Police and Attorney General's office have been working together on the investigation and filing of the civil lawsuit this week and he anticipates soon having reports that will enable him to determine whether or not criminal charges are appropriate.

According to a recent story the Manchester Times of Manchester, Tenn., Iodice was extradited to Tennessee March 13 and is in Coffee County Jail for contempt of court for allegedly failing to appear in a chancery case there in August 2006 to account for funds and automobiles from the Manchester Chevrolet of Tennessee, Inc. which he formerly owned.

Authorities say Iodice, 57, of Ruby, S.C., recently received a suspended 10-year sentence and was ordered to pay $100,000 restitution to a Ford dealership in Cheraw, S.C., after pleading guilty to obtaining property under false pretenses. Officials said the investigations are continuing.

In the meantime, about a dozen vehicles still remain on the lot of the closed Du Quoin dealership as many unhappy former customers are making two car payments for vehicles either there or in locations unknown, officials said.

The German Federal Patent Court today upheld a patent held by Rochester’s Document Security Systems Inc. on a technique used on billions of euro banknotes to thwart counterfeiting.

The ruling in Munich dealt a blow to the European Central Bank, which a day ago had won a similar case in London.

“This is a major victory for our shareholders as it substantiates the power of our intellectual property portfolio,” Patrick White, Document Security Systems CEO, said in the statement.

The Munich ruling was part of a series of lawsuits across Europe, including France, Spain and the Netherlands, that the central bank has filed in a bid to overturn the patent.

DSS has a patent infringement case pending against the central bank at the European Court of First Instance.

The company’s shares were up $2.61 to $11.21 in afternoon trading in New York.

The majority of medical malpractice claims in a study of seven states were closed without any compensation paid to those claiming a medical injury, the Justice Department's Bureau of Justice Statistics (BJS) reported.

BJS conducted a study of medical malpractice insurance claims that were closed from 2000 through 2004 in Florida, Illinois, Maine, Massachusetts, Missouri, Nevada and Texas. These states were identified as having comprehensive medical malpractice insurance claims databases, some of which extended back to the early 1990s.

About one-third of the medical malpractice insurance claims closed in Maine, Missouri and Nevada resulted in a payout. In Illinois about 12 percent of closed claims ended in a payout.

Few medical malpractice insurance claims produced payouts that exceeded $1 million. Less than 10 percent of the claims in Florida, Maine, Missouri and Nevada had payouts of $1 million or more. In Florida, Maine and Missouri, about two-thirds of the claims were closed with insurance payouts of less than $250,000.

Among persons receiving compensation, insurance payouts were highest for claimants who suffered lifelong major or grave permanent injuries. In Florida and Missouri, claimants with these types of injuries received median payouts ranging from $278,000 to $350,000. Insurance payouts were lowest for claimants who suffered temporary or emotional injuries. In Florida and Missouri, claimants who suffered these types of injuries received median payouts ranging from $5,000 to $79,000.

Medical malpractice insurance payouts increased as the insurance claims advanced through the legal system. Payouts were typically lowest for claims closed prior to the filing of a lawsuit and highest for claims closed after trial. In Florida, Nevada and Texas, claims decided by trial resulted in median payouts that were at least two and a half times larger than claims that were settled. Claims closed after a trial also cost more for insurance firms to defend than claims settled at or prior to a trial. In Florida, Nevada and Texas, 95 percent or more of medical malpractice claims were settled prior to a trial decision before a jury or judge.

The median damages paid to medical malpractice claimants have increased since the early to late 1990s. In Missouri, for example, the median insurance payouts grew from $33,000 in 1990 to $150,000 in 2004. During the various time periods covered by these insurance claim databases, median payouts also increased by 57 percent in Massachusetts, 49 percent in Illinois, 36 percent in Florida, 26 percent in Nevada and 27 percent in Texas.

In general, claimants did not file medical malpractice claims with insurance companies immediately after an injury. In Florida, Missouri and Texas, medical malpractice claims were filed with insurance companies an average of about 15 to 18 months after injury. After the claim was received, it took an average of 26 to 29 additional months to close the claim in these states.

BP America, landlord of the Lakin Law Firm, intends to evict the firm from its office in Wood River in about 90 days.

The Lakin firm intends to stay. The firm filed a complaint in Madison County circuit court March 21, seeking to extend its lease at 301 Evans Avenue for five years.

For the Lakin firm, Charles Chapman wrote that, "Plaintiff will suffer irreparable injury if this Court does not enter an injunction prohibiting Defendant from taking any actions to evict Plaintiff from the Leased Premises on or after June 30."

The property once served as office and warehouse for a refinery, and it looks more like an industrial plant than headquarters of a famous law firm.

Petrochemical pipes point toward the building. Docking structures stand by it. Three pairs of railroad tracks run by it.

At a bend in Evans Avenue, a broad asphalt apron leads to an entrance that the Lakin firm shares with oil company Atlantic Richfield.

According to Chapman's complaint, law firm founder Tom Lakin signed a 10-year lease with Amoco Petroleum Additives Company in 1996.

Amoco Petroleum Additives did not own the property, but leased it from Amoco Oil Company.

The lease gave Lakin 29,000 square feet of warehouse space and 22,000 square feet of office space, for a total of 51,000 square feet.

Rent started at $105,000 a year, a bargain rate at $2.06 per square foot.

The lease provided annual consumer price adjustments.

It gave the Lakin firm options for two five year extensions.

The lease began to run July 1, 1997. At some point, it passed to Amoco Remediation Management Services Corporation.

According to Chapman, the firm sent an option notice to Amoco Oil in Wood River in March 2006, and Amoco Oil forwarded it to Elizabeth Yordanoff, BP America managing attorney in Warrenville, Illinois.

He wrote, "Defendant did not respond to the option notice until Feb. 9, 2007, when defendant advised plaintiff, via a telephone call, that defendant was not interested in a long term lease and will not consent to the option…"

He wrote that on Feb. 23, Yordanoff advised the firm that BP America would not extend the lease because it planned to sell the property.

He wrote that Yordanoff offered to extend the lease to Dec. 31.

Chapman asked for declaratory judgment extending the lease to 2012. He wrote, "Plaintiff has complied with all prerequisites to exercise the option."

He wrote, "…the parties reasonably expected that plaintiff would exercise the option and that defendant would consent to the option."

He wrote that by delaying a response to the option notice for a year, BP America waived a provision conditioning the option on its consent.

Chapman also claimed breach of contract.

He wrote, "Plaintiff has sustained damages and will sustain damages if it is forced to move out of the premises at issue before June 30, 2012."

Chapman filed the suit on the miscellaneous remedies docket. Unelected associate judges hear "MR" cases.

As of March 26, Chief Judge Ann Callis had not assigned a judge.

If BP America dislodges the Lakin firm, Chapman will have to leave too.

He practices in the Lakin building, not as a member of the firm but as Charles W. Chapman, Chartered.

A so-called pandering provision makes it a crime to promote, distribute or solicit material in a way intended to cause others to believe it contains child pornography. It carries a sentence of at least five years in prison.

The Supreme Court in 2002 struck down an earlier version of the law that included computer generated images that appeared to depict minors engaged in sexually explicit conduct.

Congress then adopted new legislation in 2003, which President George W. Bush signed into law, in an effort to comply with the Supreme Court's ruling.

But a U.S. appeals court in Atlanta ruled the law still did not pass constitutional muster and violated guarantees that the government cannot suppress lawful free speech.

The Bush administration told the Supreme Court the ruling interfered with the effort by Congress to suppress the market for child pornography. 

Japanese Prime Minister Shinzo Abe expressed his sympathy and apologized Monday for the "situation" faced by so-called Korean and Chinese "comfort women" who were forced into sexual slavery during World War II. Abe stopped short of explicitly acknowledging the alleged roles of the wartime military and government in Japan in facilitating the practice. Until this point, Abe has been one of a number of politicians pushing for the government to revisit an official apology issued to victims in 1993 that was never ratified by the Japanese parliament.

Earlier this month, Abe denied allegations of forced sexual slavery in Imperial Japanese Army brothels, saying instead that the women were professional prostitutes paid for their services. A Japanese government probe this month also denied finding any evidence of forced prostitution.