Path: bloom-picayune.mit.edu!snorkelwacker.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 Fri, Nov 6 1992 Date: Fri, 6 Nov 92 05:29:35 EST Message-ID: 11-06 0000 DECISIONLINE: Business Law USA TODAY Update Nov. 6-8, 1992 Source: USA TODAY:Gannett National Information Network SHONEY'S RACIAL SUIT SETTLED: The largest racial discrimination suit in U.S. history was settled this week against Shoney's, the Nashville-based restaurant chain. Shoney's, which employs about 30,000 people in more than 1,800 restaurants, has agreed to pay $105 million to employees and job applicants who claimed they were discriminated against in hiring and promotions and were harassed on the job. BOESKY SETTLES MAXUS SUIT: Ivan Boesky Thursday agreed to pay $50 million to settle an inside-trading lawsuit filed by Maxus Energy, formerly Diamond Shamrock. Boesky was the only remaining defendant in the case. Kidder Peabody settled last month by agreeing to pay Maxus $125 million in cash and $40 million in stock warrants. BOESKY WAS LAST DEFENDANT: Ivan Boesky was the last remaining defendant in an inside-trading suit filed by Maxus Energy against Kidder Peabody. He agreed to pay $50 million Thursday. Last month, former Kidder investment banker Martin Siegel was dropped as a defendant when he agreed to testify against Boesky. Maxus filed suit in 1987, seeking $2.2 billion. TV RESTRICTIONS SET ASIDE: TV networks, hit by falling profits and declining viewership, may have struck gold Thursday when a court set aside restrictions on their ownership of TV shows. Among other restrictions, Federal Communications Commission rules now prevent the networks from owning financial interest in more than 40% of the shows they air. The court will decide in 30 days whether networks can own shows. USA NEARS TRADE WAR: The USA edged toward a trade war with Europe Thursday. U.S. Trade Representative Carla Hills announced plans to impose tariffs that would triple prices of white wines and other products from the European Community next month. The EC is threatening to retaliate with sanctions on U.S. goods. That raises fears the dispute will ruin efforts to expand the General Agreement on Tariffs and Trade. DISABILITY SUIT FILED: The Equal Employment Opportunity Commission said Thursday that it has filed the federal government's first lawsuit under the Americans with Disabilities Act. It is against a security-guard company that fired an executive who has terminal cancer. The law, which went into effect July 26, is designed to prevent discrimination against disabled people. AMERICAN WON'T APPEAL DECISION: American Airlines won't appeal a federal judge's refusal to move the trial of antitrust lawsuits filed by Continental and Northwest, Bloomberg Business News said Thursday. American had sought to move the trial to closer to its Fort Worth headquarters. Continental and Northwest sued American in June, claiming its pricing strategies were designed to force weaker airlines out of business. TIME WARNER TO FIGHT CABLE LAW: Time Warner filed a lawsuit Thursday to overturn most of the Cable Act of 1992. The act sets standards for cable TV rates and service. The law is expected to go into effect next year. Also, the Justice Department said a provision that requires cable operators to carry signals of some TV stations is unconstitutional. It said it will refuse to defend the provision against lawsuits. CIPOLLONE CASE DROPPED: A landmark lawsuit against three tobacco companies was dropped Thursday because of the cost of 10 years of legal maneuvering. The suit was filed in 1983 by New Jersey resident Rose Cipollone against Philip Morris, Liggett Group and Lorillard Tobacco, which made the cigarettes Cipollone smoked for 42 years. She died of lung cancer in 1984 at 58. MACY OUTLINES FIVE-YEAR PLAN: R.H. Macy & Co. Thursday detailed a five-year plan it hopes will return the bankrupt retailer to profitable growth. Macy has projected sales for the next five years and estimates that it will improve cash flow by $600 million in fiscal 1998. Cash flow for 1998 is expected to total $811 million, about 9% of sales. Without the new measures, that figure would be closer to $213 million. DU PONT TO QUIT PAYING CLAIMS: Du Pont Co. Thursday said it will stop paying claims to farmers and ornamental-plant growers who say that a Du Pont fungicide has caused extensive damage to plants. A company spokeswoman said the company has concluded that Benlate DF never caused plant damage. Du Pont and its insurance companies so far have spent $1 billion to settle claims. Du Pont paid $400 million in Florida alone. AT&T'S MOVE HURTS BABY BELLS: AT&T chief executive Robert Allen is using the wireless phone to put Ma Bell back together again. And that has the Baby Bells, AT&T's offspring, tossing and turning. The folks at MCI, AT&T's largest long-distance rival, aren't sleeping too well, either. AT&T Wednesday said it wants to buy 33% of McCaw Communications, the USA's largest cellular phone service provider. EX-WORKER SUES CHIP COMPANY: National Semiconductor is being sued by former employee Lynda Thomas for $30.5 million. Thomas is suing the Salt Lake City Company because, she says, she suffers permanent injuries after being exposed to toxic chemicals at the company's West Jordan microchip plant in 1988. The company has no response to the suit, which claims Thomas suffered lung disease and memory lapses. Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 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