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W.Va. court accepts appeals in $400m DuPont case
Business | 2008/09/26 01:14
West Virginia's Supreme Court has agreed to a full review of appeals arising from a nearly $400 million judgment against DuPont.

A Harrison County jury awarded the damages to residents last year, after finding the chemical giant downplayed and lied about health threats at a former zinc smelting plant in Spelter.

The high court accepted DuPont's appeal of the verdicts, and of the circuit judge's order holding it liable for the conduct of the site's previous owner.

They've been combined with an appeal from the plaintiffs, who want more people compensated for private property cleanups.

The consolidated argument hearing has not been set.

Justice Robin Davis voted to refuse each of the appeals.

Gov. Joe Manchin had urged the justices to accept the case, citing its $196 million punitive damage award.



Comcast appeals FCC Web traffic-blocking decision
Business | 2008/09/05 09:26
Comcast Corp. is appealing an FCC ruling that the company is improperly blocking customers' Web traffic, triggering a legal battle that could determine the extent of the government's authority to regulate the Internet.

In a precedent-setting move, a divided Federal Communications Commission last month determined that the company is violating a federal policy that guarantees unfettered access to the Internet.

Comcast challenged the FCC decision Thursday in the U.S. District Court of Appeals in Washington.

Comcast executive vice president David L. Cohen said in a statement that the company is seeking "review and reversal" of the FCC order and that the commission's action was "legally inappropriate and its findings were not justified by the record."

The Comcast case arose from complaints by users of a type of "file-sharing" software often used to download large data files, usually video.

Tests by The Associated Press and others found that file-sharing transmissions were aborting prematurely. It was later discovered that the company was cutting off transfers without informing customers.



Merrill, Goldman pressured by Cuomo on auction-rate debt
Business | 2008/08/21 01:43

Merrill Lynch & Co. and Goldman Sachs Group Inc. face increased pressure by New York State Attorney General Andrew Cuomo to settle claims they misled investors on auction-rate debt as Wachovia Corp. agreed to buy back $9 billion of the bonds.

Merrill's prior offer to repurchase $10 billion of the securities was inadequate and the firm may face ``imminent'' legal action, Cuomo said yesterday.

New York has subpoenaed about 25 firms involved in sales of auction-rate securities, including five that then settled. Goldman is among the firms being probed, he said.

Wachovia joined Citigroup Inc., Morgan Stanley, JPMorgan Chase & Co. and UBS AG in settlements stemming from a nationwide investigation into why auction-rate securities were marketed as safe as cash until the $330 billion market collapsed. Regulators have sought auction-rate buybacks for customers, reimbursement for consumers forced to sell securities at prices below face value and relief for institutional investors.



Execs plead guilty to illegal Musgrove donations
Business | 2008/08/14 07:04
Two businessmen involved with a failed $55 million beef plant pleaded guilty this week to illegally contributing to a past campaign by a Democrat now in a tight U.S. Senate race.

Former Mississippi Gov. Ronnie Musgrove, who is running for the seat vacated by Republican Trent Lott, has not been charged and says he did nothing wrong, but Republicans quickly seized the opportunity to slam him for taking the money.

Robert Moultrie and Nixon Cawood Jr., executives with The Facility Group of Smyrna, Ga., pleaded guilty to giving Musgrove an illegal $25,000 "gratuity" during his 2003 gubernatorial re-election campaign. Musgrove lost the race to Republican Haley Barbour.

The Facility Group managed construction of Mississippi Beef Processors LLC, a cattle plant that closed just three months after it opened in 2004, costing 400 jobs and sticking Mississippi taxpayers with $55 million in state-backed loans.



HP-EDS deal price at issue in court hearing
Business | 2008/07/23 03:59
A shareholder group is trying to pressure Electronic Data Systems Corp. into demanding more than the $13.2 billion that Hewlett-Packard Co. has offered for the technology services company.

The group said Monday it intends to ask a judge in Collin County, Texas, to postpone the shareholder meeting EDS has scheduled for July 31, when investors are scheduled to vote on whether to approve HP's takeover of the Plano, Texas-based company. A hearing is set for Thursday on the group's request.

The group believes that the EDS board agreed to sell the company for too little money.

HP is offering $25 per share for EDS, a nearly 33 percent premium over where EDS stock stood before the proposed acquisition was announced in May. Including debt held by EDS, HP values the acquisition at $13.9 billion.



Investment firms don't draw emergency loans
Business | 2008/07/11 03:42
In a sign of some improvement in the credit crisis, Wall Street firms for the first time didn't borrow from the Federal Reserve's emergency lending program and commercial banks also scaled back.

Investment firms didn't draw such loans for the week ending July 9. They borrowed just $1.7 billion in the previous week ending July 2, down from $6.1 billion in the week before that. Such borrowing rose as high as $38.1 billion in early April.

The Fed opened its emergency program to investment firms on March 17.

At that time, the investment houses were given similar loan privileges as commercial banks after a run on Bear Stearns pushed the nation's fifth-largest investment bank to the brink of bankruptcy. The situation raised fears that other Wall Street firms might be in jeopardy. Bear Stearns was eventually taken over by JPMorgan Chase in a deal that involved the Fed's financial backing.

Banks, meanwhile, averaged $12.9 billion in daily borrowing over the past week. That compared with $14.9 billion in the previous week.

The identities of commercial banks and investment houses are not released.

In the broadest use of the central bank's lending power since the 1930s, the Fed in March scrambled to avert a market meltdown by giving investment houses a place to go for emergency overnight loans. The program will continue for at least six months. Commercial banks and investment companies now pay 2.25 percent in interest for the loans.

Separately, as part of efforts to relieve credit strains, the Fed auctioned $21.3 billion in Treasury securities to investment companies Thursday.

The auction drew bids for less than the $25 billion the Fed was making available, which was viewed as possible sign of some improvements in credit conditions.

In exchange for the 28-day loans of Treasury securities, bidding companies can put up as collateral more risky investments. These include certain mortgage-backed securities and bonds secured by federally guaranteed student loans.

The auction program, which began March 27, is intended to make investment companies more inclined to lend to each other. A second goal is providing relief to the distressed market for mortgage-linked securities and for student loans.



Appeals court: EchoStar not barred from lease deal
Business | 2008/07/08 08:01
Federal law does not bar satellite television provider EchoStar Communications Corp. from leasing a transponder to another company to transmit network signals, a U.S. appeals court ruled Monday.

CBS Corp.'s CBS Broadcasting subsidiary, News Corp.'s Fox network and other major network affiliate groups sued EchoStar 10 years ago in South Florida to prevent the Englewood, Co.-based company, which operates the DISH satellite network, from providing distant network signals to customers who can receive local affiliates' broadcasts through regular antennas.

The Satellite Home Viewer Act of 1988 allowed carriers such as EchoStar to provide secondary transmissions of copyrighted distant network programming to "unserved households," those that could not otherwise receive the signals.

The lawsuit claimed that EchoStar was infringing on network copyrights by providing the signals to "served" households as well.

After a two-week bench trial in 2003, the district court found that EchoStar retransmitted network programs to hundreds of thousands of served homes, which it called "willful or repeated" copyright infringement. That ruling was upheld by the 11th U.S. Circuit Court of Appeals, and the U.S. Supreme Court declined to consider an appeal in January 2007.

According to court documents, EchoStar complied with an injunction that went into effect Dec. 1, 2006, by disconnecting distant network channels to about 900,000 customers — at a loss of $25 million a year.



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