Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Thu, Aug 20 1992 Date: Thu, 20 Aug 92 04:20:23 EDT Message-ID: 08-20 0000 DECISIONLINE: Business Law USA TODAY Update Aug. 29, 1992 Source: USA TODAY:Gannett National Information Network CARD LOOKS AT AIRLINE DEAL: Transportation Secretary Andrew Card must resolve two prickly questions in British Airways' $750 million bid for a piece of USAir. Card must decide if British Airways seeks control of USAir and whether criticisms of the deal from American, United and Delta are legitimate. The deal conforms to the rules of stock ownership, but there are concerns over board control. (For more, see special BA package below.) COURT OKS PFIZER SETTLEMENT: Pfizer Inc. announced Wednesday a federal district court has approved the previously announced agreement for a class-action settlement. The suit was for claims of recipients of the Bjork-Shiley Convexo:Concave (C:C) heart valve and the recipients' spouses. The Bjork-Shiley C:C valve is an artificial heart valve that replaced diseased heart valves. CRITICAL BEER ADS RE-ALLOWED: Anheuser-Busch can air ads slamming Coors Light. Coors Brewing Co. had sued Anheuser-Busch over ads for Natural Light. The ads claim Coors Light sold in the Northeast is shipped in concentrated form, then diluted with local water. Coors "cannot seek (a court order) that would prohibit (A-B) hoisting Coors by its own petard," wrote U.S. District Judge Michael Mukasey. BLOCKBUSTER RIGHTS GRANTED: Catch A Star Collectibles Inc. said Wednesday it has been granted exclusive licensing rights from Lucasfilm Ltd. for "Star Wars" and "Indiana Jones" movies memorabilia. Catch A Star Collectibles is a unit of Score Board Co. The license is to market existing products and merchandise to be developed. Score Board's Paul Goldin said he anticipates $5 million annually in sales. COMP FRAUD LEADER ARRESTED: The California Department of Insurance has arrested a leader of a major workers' compensation fraud ring estimated to have cost California businesses more than $100 million in the past 18 months, Commissioner John Garamendi said Wednesday. Jorge Coronado, owner of Spanish Marketing, was arrested in Bell, Calif., Wednesday morning. He is charged with 25 felony counts. EARLIER COMPANY SHUT DOWN: Jorge Coronado, owner of Spanish Marketing and a suspect in a major workers' compensation fraud ring in California, is alleged to have previously owned Bufete Medico Legal. That company was raided and shut down by the California Department of Insurance in April as part of a sweep against workers' compensation fraud operators. The department has been investigating Spanish Marketing since April. IRIQUOIS SETTLES WITH PSC: The Iroquois Gas Transmission System will pay up to $2 million under a settlement approved Wednesday by the New York Public Service Commission, resolving more than 100 alleged environmental violations along the pipeline's path. The Public Service Commission agreed to drop a suit seeking $26.3 million in fines from Iroquois and three contractors for the alleged violations. TWO CPAS DISCIPLINED: The California State Board of Accountancy Wednesday said it disciplined two certified public accountants formerly affiliated with the accounting firm of Laventhol and Horwath. The Board had accused Darrell K. Lindgren and Arthur R. Nemiroff of gross negligence in audits of Bretcourt Financial Inc. Lindgren was suspended for a year. Nemiroff may not perform audits for a year. COOPERS & LYBRAND COUNTERSUES: Coopers & Lybrand announced Wednesday it has filed suit against those responsible for the current and former management of Phar-Mor Inc. Coopers & Lybrand said the former Phar-Mor management engaged the company in an embezzlement scheme and forced the company into bankruptcy, then sued Coopers & Lybrand. Coopers & Lybrand's countersuit was filed Wednesday. TRAVELERS SUIT DISMISSED: Travelers Corp. said Wednesday a U.S. district court has dismissed a shareholder lawsuit for the second time. The suit was over the company's plunging share prices after Travelers said in 1990 that it was adding $650 million to its reserves for problem mortgages and cutting its dividend to 40 cents from 60 cents a share. The plaintiffs have failed to substantiate their claims. SPECIAL PACKAGE ON BA: DEAL CONFORMS TO STOCK RULES: The proposed deal between British Airways and USAir conforms to the rules of stock ownership. Foreigners can own 25% of the voting stock and 49% total equity of U.S. airlines. British Airways would hold 21% of USAir's voting stock and 44% of the total. The deal, announced July 21, requires the approval of both governments and USAir shareholders. BOARD CONTROL CONTROVERSIAL: In questions is the influence British Airways would exert on USAir's board. Five of USAir's 16 directors would be British Airways representatives. Many important decisions - including the hiring of senior officers - would require the approval of at least 13 directors. Any four British Airways directors could veto actions they didn't support. AIRLINES SAY LAW VIOLATED: The USA's three biggest airlines - American, United and Delta - claim that violates U.S. law prohibiting foreign control of U.S. airlines. They've filed complaints with the Department of Transportation. The law doesn't define control, meaning Card must make the decision, says aviation lawyer Clark Onsted. BA stands to gain better access to the U.S. market if the deal goes through. (End of package.) Business Law Editor: Beth Mann. (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