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 Mon, Sep 14 1992 Date: Mon, 14 Sep 92 04:32:03 EDT Message-ID: 09-14 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 14, 1992 Source: USA TODAY:Gannett National Information Network GM STRIKE COULD CRIPPLE COMPANY: Another General Motors strike could be imminent, less than a week after the company settled an Ohio strike that idled factories in seven states. A United Auto Workers local at GM's Inland Fisher Guide Division in Indiana Friday asked union leaders to issue the required five-day notice of a possible strike. OUTSIDE WORK IS A COMPLAINT: A walkout threatened by a General Motors division in Anderson, Ind., could cripple virtually all North American operations. Local grievances and GM's transfer of some work to outside companies is at issue. The Anderson plant provides external lighting except for headlamps for 95% of North American operations. It also is a major supplier of bumpers. L.A. GEAR SUES MICHAEL JACKSON: Athletic shoe distributor L.A. Gear has filed a $46 million lawsuit against entertainer Michael Jackson and his company. The shoemaker wants to rescind the endorsement contract Jackson signed in 1989 and wants back the $5 million it says Jackson received for his endorsement of the Signature line of shoes and accessories. L.A. Gear says the delay of Jackson's greatest hits album hurt it. ALBUM DELAY HURT PROMOTIONS: Athletic shoe distributor L.A. Gear claims Michael Jackson's delayed album release hurt its promotion of its Signature line. It wants $5 million Jackson has received; the contract rescinded; $18 million to settle two shareholder suits; and $23 million Jackson got from Sony for a new recording contract. L.A. Gear said Jackson delayed the album to increase his bargaining position with Sony. CIPOLLONE JUDGE IS OFF CASE: Federal Judge Lee Sarokin Friday removed himself from the Cipollone vs. Liggett cigarette liability lawsuit. A week ago, a federal appeals court removed him from another tobacco industry case, saying the judge was not impartial. The Supreme Court has ordered a new trial in the Cippollone case; Sarokin had ordered the industry to pay the estate of a smoker who had died of cancer. ALCO SUES OVER FALSE INFORMATION: Alco International Group Inc. said Friday that it has sued for $1.8 billion in damages from brokers and securities dealers it said have spread false and misleading information about the company. Bloomberg Business news reported that a Bloomberg reporter, David Kleinbard, has been named in the suit. The suit charges fraud, slander, racketeering, unfair trade practices and other charges. O&Y RECEIVES EXTENSION: An Ontario court Friday extended Olympia & York Developments Ltd.'s protection from Canadian creditors until Dec. 30, Bloomberg Business News reported. O&Y originally was given until Oct. 21 to complete the restructuring of its debt. The real estate company was granted protection under Canada's Companies Creditors Arrangement Act on May 14. O&Y will file its final restructuring plan Oct. 27. JUSTICE, EPA TARGET INDUSTRIES: Segments of the metal-smelting, paper and chemical industries are under investigation by the Justice Department and the Environmental Protection Agency for consistent violation of environmental rules, according to the EPA. It's the first time that the EPA and Justice Department have targeted particular industries. Justice has opened 13 judicial actions; the EPA began nine cases. GAYLORD FILES CHAPTER 11: Gaylord Container Corp. Friday said it filed for Chapter 11 bankruptcy protection after not enough bondholders approved an offer to exchange its debt for new securities. Gaylord has at least $741.7 million of debt, including $496.7 million of junk bonds. The New Orleans-based company needed 95% approval from bondholders, but only 89% of the subordinated debt was tendered. OIL SWAP REGULATION GOOD ENOUGH: U.S. authorities likely will not regulate the growing oil swaps market beyond the existing guidelines - which aren't very strict, according to Wendy Lee Gramm, chairman of the Commodity Futures Trading Commission. Gramm said Saturday after the Second Pacific Rim Futures Conference that current regulations are "appropriate for the present." SANCTIONS TO BE SET UP: The Federal Reserve Board and the Federal Deposit Insurance Corp. next week will set risk-based capital ratios that will trigger sanctions against institutions that don't have enough capital. The move is part of the FDIC's Improvement Act of 1991. Also next week, the FDIC will make a decision on its formula for determining risk-based deposit insurance premiums. STOCKHOLDER SUES NURSING HOME: A stockholder Friday sued a Geriatric & Medical Centers Inc. subsidiary for withholding information about a state investigation of deaths at two nursing homes the company manages in Pennsylvania. The suit seeks class-action status and says GMS Management Inc. did not tell stockholders about the investigation or misrepresented facts, according to G&MC general counsel James Wankmiller. TOUGHER HOUSING RULES ARE URGED: The head of the National Association of Home Builders called Friday for a national check of building codes, tougher inspections and more self-policing in conceding that structural problems existed in hurricane-damaged homes. Owners of some damaged homes already have sued builders. Fraud investigations of contractors are under way, and more than 500 complaints have gone to officials. 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