Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Mar 4 1992 Date: Wed, 4 Mar 92 05:50:52 EST Message-ID: 03-04 0000 DECISIONLINE: Business Law USA TODAY Update March 4, 1992 Source: USA TODAY:Gannett National Information Network OTS CRACKS DOWN: The Office of Thrift Supervision is cracking down on firms it says have contributed to the savings and loan crisis. U.S. District Court Judge Royce Lamberth Tuesday ordered accounting firm Ernst & Young to turn over documents to the OTS which is investigating the firm's work for 23 troubled S&Ls. Monday, OTS demanded $275 million from a law firm that worked for failed Lincoln Savings and Loan. ERNST & YOUNG DOCUMENTS ORDERED: Accounting firm Ernst & Young is again involved in a probe into the S&L crisis. In January, it was ordered to provide documents to the Resolution Trust Corp. on failed S&Ls. Tuesday, it was ordered to turn documents over to the Office of Thrift Supervision. The OTS says about one-third of 690 failed financial institutions were audited by the firm or its predecessor, Arthur Young. ILLEGAL FISHING PROBED: Alaska Gov. Walter J. Hickel said Tuesday that the Department of Public Safety is investigating illegal fishing in state waters on the south side of the Alaska Peninsula. Public Safety, assisted by National Marine Fisheries Service and the Coast Guard, began serving warrants on 13 vessels working the cod fishery in that area Monday, and may investigate as many as 40. NEW NEW KIDS CHARGES: Former New Kids on the Block producer Greg McPherson, who has sued the group claiming they lip-sync songs, is pressing his case despite a slander suit by the group. McPherson called a Tuesday press conference to demonstrate that the Kids' recent performance on the "Arsenio Hall Show" - designed to refute lip-syncing charges - was digitally enhanced. The New Kids had no comment. BANKING BILL TO BE DROPPED: A bill in Washington state that would have blocked the proposed merger of Security Pacific and BankAmerica will be dropped because the banks have satisfied lawmakers' concerns. The legislation would have make it a violation of state law for any bank to control 30% or more of commercial deposits in Washington. It cleared a House committee last month amid concern of possible antitrust issues. SYMBOL ANNOUNCES SETTLEMENT: Symbol Technologies, Inc. Tuesday announced that it has reached an agreement to settle shareholder derivative and class action originally filed in 1989 against it, its directors and certain of its officers. A settlement fund of $11.5 million, which is comprised of $7.25 million of cash and six year warrants valued at $4.25 million will be created to settle the litigation. GRACE PATENT SUIT SETTLED: Grace Construction Products Division and Polyguard Products, Inc. Tuesday announced the settlement of a lawsuit involving a Grace patent. Grace's suit claimed Polyguard was infringing a patent for water-based latex primer. In settlement, Polyguard has stopped its commercial activity with the primer and paid an udisclosed sum for its past commercial activity with the primer. FALSE TAX FORMS FILED: Three-hundred employees at San Francisco area Naval bases filed false W-4 forms to avoid paying withholding taxes, IRS officials said Tuesday. Suspects range from blue collar workers to supervisors, who owe up to $35,000. The probe followed a fraud pattern among area teachers, construction workers and members of the financial and medical communities. WORKERS CONTEST CONTRACT: Union workers retired from Meadow Gold Dairies in Honolulu are contesting the Teamsters' approval of a new contract that takes away their medical coverage. Retirees, instead, get $60 a month this year and an additional 10% each year of the agreement. The Teamsters say active workers pay for the coverage retirees receive through Medicare. BENEFITS CAN'T BE DENIED: Workers fired for isolated instances of sexual harassment can't be denied jobless benefits, the Iowa Supreme Court said Tuesday. The court overturned a ruling by state officials that ex-Britwell Co. janitor Clifford Anderson's "sexually harassing remark" to co-worker barred him from aid. TRUCKING FIRMS DODGE LAWS: Hundreds of trucking firms in Minnesota are sidestepping state laws and insurance rules to avoid paying worker's compensation costs, a state official said Tuesday. Cited: Many firms lease drivers from out-of-state operations, avoiding on-job-injury coverage. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM