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 Wed, Sep 16 1992 Date: Wed, 16 Sep 92 04:36:01 EDT Message-ID: 09-16 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 16, 1992 Source: USA TODAY:Gannett National Information Network SHEARSON LEHMAN FINED $20,000: The National Association of Securities Dealers Inc. Tuesday fined Shearson Lehman Brothers Inc. $20,000 for allegations that the firm violated securities laws. Shearson would not admit or deny the allegations. But it has consented to a finding that it sold initial public offerings to hedge funds without getting the names or business connections of those with an interest in the accounts. SHEARSON DIDN'T ADMIT GUILT: Shearson Lehman Brothers would not admit or deny allegations brought Tuesday by the National Association of Securities Dealers. But it consented to a finding that it failed to report some transaction prices with retail clients to the Nasdaq. Among allegations: That Shearson sold American Express stock without getting written approval from customers. FIRMS EXPELLED FROM GROUP: The National Association of Securities Dealers Tuesday expelled two firms. Adams, Block & Coe was fined $50,000 and expelled from membership on findings that the firm used month-end sales and repurchases of its municipal bond inventory to conceal ownership for financial reporting purposes. Golden Shamrock Inc. was fined $20,000 for failing to respond to NASD requests for information. CENTEL, SPRINT SEEK MERGER OK: Centel Corp. Tuesday announced that it and Sprint Corp. have filed with Nevada's Public Service Commission for approval of their merger. In addition to Nevada, Centel provides local exchange telephone service in five other states, including four where Sprint also provides local telephone service. The companies announced on May 27 a definitive agreement to merge. AIRLINE MERGER MUST BE CHECKED: Government spokesmen said Tuesday that Air Canada and Canadian Airlines International Ltd. must undergo reviews by the Bureau of Competition Policy and the National Transportation Agency of Canada before they can merge. Canadian Airlines is a unit of PWA Corp., which accepted Air Canada's merger offer last week. The competition bureau has the right to block mergers. DRUG COMPANY HEARING SCHEDULED: A hearing is scheduled Wednesday in Detroit for a class-action suit against Bolar Pharmaceuticals Company, accused of deliberately producing and selling fraudulent and contaminated generic versions of eight prescription medications. Bolar manufactures generic drugs. The petition alleges that Bolar earned more than $186 million in revenues from the drugs, the plaintiffs' law firm said. ANOTHER PHAR-MOR SUIT IS FILED: Massachusetts Financial Services Co. Tuesday filed suit in a federal court to recover payments for 2.1 million shares of Phar-Mor it purchased from Westinghouse Credit. The company paid $61.2 million for common stock in the bankrupt drugstore. It also wants $5 million for expenses and interest. Phar-Mor has sued accounting firm Coopers & Lybrand for not finding financial problems. CARMAKERS ARE AGAINST BILL: A bill to toughen laws against car theft is speeding through Congress, but the auto industry says the legislation would hurt automakers and cost consumers up to $225 million. The proposed Anti-Car Theft Act of 1992 has been sparked by a recent spate of violent carjackings. Carmakers would have to inscribe ID numbers on all major parts, adding $10 or so the the cost of a new car. DWG SHAREHOLDER SUITS SETTLED: DWG Corp. Chairman Victor Posner Tuesday agreed to a settlement over shareholders' suits, a shareholder's attorney said. Posner will pay $10.7 million and allow court-appointed directors to serve five-year terms in exchange for three suits against him being dropped. The settlement to be signed Oct. 1 would clear one hurdle on the way to Posner's resignation. REPORT CALLS FOR INVESTIGATION: Former Michigan attorney E. Frank Cornelius Tuesday followed up his 96-page report to the Michigan Supreme Court with a letter calling for an investigation of the acts of judicial dishonesty described in the report. Cornelius alleges that a Michigan Circuit Court judge threw a case to a lawyer in a major Michigan law firm, who was the judge's campaign chair for a bid for an appeals seat. MORE MICHIGAN TEACHER WOES: The Michigan Federation of Teachers & School Related Personnel announced four work stoppages in metro Detroit Tuesday. The union said it is committed to continue to bargain with school officials until a fair and equitable agreement is reached in all school districts. TRUCK GUIDELINES ARE URGED: The National Transportation Safety Board Tuesday identified maintenance problems for trucks after studying three fatal accidents caused by runaway truck wheels. The board said the trucking industry, including truck and wheel makers, should develop uniform inspection guidelines for all types of medium and heavy truck wheels to correct faults that caused the accidents. 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