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, Sep 17 1992 Date: Thu, 17 Sep 92 04:53:17 EDT Message-ID: 09-17 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 17, 1992 Source: USA TODAY:Gannett National Information Network JOURNAL LIBEL SUIT IS DROPPED: Harry L. Freeman, a former American Express executive, is dropping his $50 million libel lawsuit against Dow Jones & Co. and a former reporter at The Wall Street Journal. Freeman, who filed the suit in March, says he feels vindicated in "the court of public opinion." Freeman says he was defamed in a September 1990 article that said he ran a smear campaign against a banker. REPORTER NO LONGER WITH JOURNAL: Harry L. Freeman says he is dropping his libel lawsuit against Dow Jones & Co. and a former Wall Street Journal reporter because the reporter, Bryan Burrough, has resigned. The article in quiestion accused Freeman of running a smear campaign for former employer American Express against international banker Edmond Safra. Burrough expanded the story into a book that sold poorly. CABLE BILL POISED FOR VOTE: The bill to regulate cable television, now before Congress, might look like a good idea for consumers who remember every rate increase and billing hassle. But cable-system owners are pulling out the stops to tell those same customers that if the bill passes, they can sit back and watch their monthly bills rise. Both the House and Senate are expected to pass the bill. SUPPORTERS CALL BILL PROTECTION: Supporters of the effort to reregulate cable hail the bill awaiting a House vote Thursday as protection for consumers, who spent $18.2 billion on cable TV last year, more than they spent at the movies ($4.5 billion) and on videos ($11 billion) combined. But there is more in the bill for local broadcasters and cable's potential rivals than for cable subscribers. DEBARTOLOS DEFENDANTS IN SUIT: A shareholder suit filed Wednesday against Murex Technologies includes defendants Edward DeBartolo and his father. The younger DeBartolo owns the San Francisco 49ers. The suit alleges the company violated securities laws. The suit also claims that the majority shareholders, the DeBartolos, had negative information about the company while continuing to sell some of their stock. POSNER REPORTEDLY LINED POCKETS: A sealed audit of DWG Corp. shows Chairman Victor Posner siphoned about $10 million from the company to pay for personal yacht trips and other luxuries for himself and friends, according to a shareholder's attorney. Posner reportedly hired eight friends and relatives at an average salary of $100,000 each, according to attorney Frances Floriano Goins. TUCSON ELECTRIC SETTLES LAWSUIT: SCECorp and Southern California Edison said Wednesday they have agreed to settle a lawsuit filed by Tucson Electric Power Co. SCECorp and Southern California Edison will pay Tucson Electric $25 million in settlement of claims of interference with the 1988 merger agreement between Tucson Electric and San Diego Gas & Electric Co., plus $15 million for litigation. FORMER S&L CHIEF PLEADS GUILTY: Robert K. Hartmann, a former director of Polifly Savings & Loan Association, has pleaded guilty to concealing and disguising his interest in nine companies that borrowed $58 million from the thrift. Hartmann pleaded guilty to obstruction of justice and bank fraud, according to a statement from the Unitd States Attorney's Office. SEVEN CHARGED IN TRADING: The Securities and Exchange Commission Wednesday charged seven people with insider trading of Pillsbury Company shares. The SEC said the people traded in Pillsbury shares and call option contracts in 1988 while knowing material information about Grand Metropolitan Plc's planned $60-a-share tender offer for the company, according to Bloomberg Business News. CRANDALL WARNS OF DOMINATION: Foreign airlines will someday dominate U.S. skies unless President Bush gets tough with trade agreements, warns American Airlines Chairman Robert Crandall. Wednesday, Crandall blasted U.S. aviation trade policy. He says the USA is giving away its edge as the world's leading airline industry. If nothing changes, Crandall says no global airline will call the USA home in 20 years. PHAR-MOR NAMES NEW PRESIDENT: Phar-Mor Inc. Wednesday said it named Antonio Alvarez president. Phar-Mor is involved in a lawsuit and countersuit with accounting firm Coopers & Lybrand Inc. Phar-Mor also is in bankruptcy protection. It fired its former president, Michael Monus, after discovering a $350 million inside fraud scheme. The appointment is subject to court approval. CONTINENTAL GETS BUY OFFER: Lufthansa German Airlines and billionaire investor Marvin Davis offered Wednesday to buy bankrupt Continental Airlines for $400 million. It is the fourth offer for Continental, which seeks to get out of bankruptcy reorganization. ALAWEST TO BUY COAL PROPERTIES: Alawest Inc. Wednesday agreed to buy coal properties jointly owned by LTV Corp., Acme Metals Inc. and Stelco Inc. The property was for sale in a bankruptcy auction. Alawest agreed to $7.5 million, well above the $1.9 million agreed to by TTMAR Inc., the contract purchaser of the property. Alawest will assume responsiblity for any outstanding environmental liability suits. 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