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, Feb 19 1992 Date: Wed, 19 Feb 92 06:39:08 EST Message-ID: DECISIONLINE: Business Law USA TODAY Update Feb. 19, 1992 Source: USA TODAY:Gannett National Information Network POLLACK CONFIRMS SETTLEMENT: Federal Judge Milton Pollack confirmed Tuesday that a tentative plan calls for a $1.3 billion settlement of lawsuits against jailed financier Michael Milken. Milken will contribute $500 million into a fund for victims of his securities crimes. Milken already has paid $400 million into such a fund. The rest would come from other defendants in the suits including his brother Lowell. MILKEN STILL VERY WEALTHY: Despite paying $500 million into a $1.3 billion fund to settle lawsuits against him, former junk bond king Michael Milken should emerge from prison a very rich man. Federal Judge Milton Pollack, who presided over talks that resulted in the settlement, says the deal would cut Milken's personal net worth to about $225 million. Milken is serving a 10-year sentence for securities violations. DELAYED TRIAL TO BEGIN: A trial over a coal land lawsuit that was filed 37 years ago is scheduled to begin Wednesday in Wise, Va. Millions of dollars of unpaid royalties to 480 plaintiffs, all descendants of Wise County pioneer Galen Roberts, is at stake. The case has taken so long to get to court because no one had urged settlement, said lawyer Gerald Gray, who represents some of the heirs. SECOND OWL TASK FORCE ANNOUNCED: A second task force will soon take up the question of how to limit job losses in the Northwest timber industry while protecting the endangered spotted owl. Interior Secretary Manuel Lujan announced Tuesday the formation of an inter-agency group that is expected to propose a plan to reduce the projected 31,000 timber jobs that would be lost under recovery task force plans. FILINGS HURT PBGC: Bankruptcy filings by Eastern Airlines and Pan Am last year left their pension plans underfunded by $700 million and $900 million respectively, causing big losses for the Pension Benefit Guaranty Corp. The PBGC, which guarantees pensions for more than 40 million workers, said Tuesday that long-term obligations are in jeopardy due to the losses, although it has enough money short term. BOND SET AT $350,000: A U.S. District Court in New Jersey Tuesday granted Amana Refrigeration, Inc., a $350,000 bond by Cooper Distributing Company, its largest distributor, to cover Amana's allegations of loss of profits. Amana had originally requested that the bond be set at $2 million and subsequently asked for $1 million. Rules of court require that in cases of injunctions, the court fix a bond. EPA FINES AEI CORP.: The Environmental Protection Agency has levied a $125,000 fine against fertilizer maker AEI Corp., which the EPA says is polluting groundwater at Fort Hall Indian Reservation in Pocatello, Idaho. The EPA claims that lead, selenium and silver above safe drinking water standards were found in an injection well at the fertilizer plant. AEI says the charges are unfair. WARNINGS SENT TO FARMERS: In Upper Marlboro, Md., letters are being sent this week to tobacco growers warning them of random inspections of tobacco baskets, the Maryland Tobacco Authority said Tuesday. Cited: Nesting - fraudulent practice that involves hiding an inferior grade tobacco or weeds in the center of 300-lb. baskets of top-dollar tobacco. BARS TARGETED IN PROVIDENCE: Police in Rhode Island have been given a list of a dozen bars in Providence suspected of violating a state law by offering drink specials, a state liquor control official said Tuesday. A state law bans the sale of liquor below cost. Reports that some bars were holding "nickel night" specials sparked a probe. MORE IMPLANTS MAY LEAK: A federal panel studying the safety of silicone breast implants heard reports Tuesday that leakage may be more frequent than originally thought. The FDA panel is studying evidence that prompted Commissioner David Kessler to call for a moratorium. Kessler said Tuesday: "The standard for implanted devices is not `Let the buyer beware' ... Products must be shown to be safe." SENATE BACKS OFF AMENDMENT: The Senate Tuesday backed off proposing an amendment to its Energy bill that would have opened the Arctic National Wildlife Refuge to oil drilling. Shortly before the Senate was to debate the matter, Sen. Frank Murkowski, R-Alaska, backed off introducing the amendment. "Politics has overtaken policy," he later said. HEARINGS ON BELLS WEDNESDAY: Hearings begin Wednesday before a House subcommittee on whether to let the regional Bell companies into a variety of businesses, including news gathering, making telephone equipment and transmitting long-distance calls. Among the experts to testify is Robert Allen, chairman of AT&T, who is opposed to giving the Baby Bells new freedoms. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002190000D0219 ENER- R E Arctic-drilling-no-longer-issue....... A D0219 This article is copyright 1992 Gannett News Service. 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