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Subject: law Mon, Mar 2 1992
Date: Mon, 2 Mar 92 05:57:42 EST
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03-02 0000
DECISIONLINE: Business Law
USA TODAY Update
March 2, 1992
Source: USA TODAY:Gannett National Information Network

MILKEN TALKS TO FORBES:
   Jailed financier Michael Milken, who is serving a 10-year
sentence for securities fraud, says in a Forbes interview out
Monday that he tried to warn companies in the late 1980s to
de-leverage - sell stock to pay debt. Milken told the magazine
that the collapse of the junk bond market in 1989 and 1990 was not
his fault. "Junk bonds were around before I was born," Milken
says.

SETTLEMENT IN COURT FRIDAY:
   A court will decide Friday on a proposed $1.1 billion
settlement of lawsuits against former junk bond king Michael
Milken and his former firm Drexel Burnham Lambert. About the
proposed settlement Milken told Forbes magazine, "I want to get on
with the rest of my life. A settlement, even if it involves suits
that have no merit, is a step in that direction."

SUIT MAY END PHONE SCAM:
   A suit against Infotrax Communications Inc. of Mount Pleasant,
N.J., could end the biggest 900-line scam in the state's history,
officials say. The firm is accused of charging up to $28 to
callers who responded to mailers that offered prizes for those who
dialed the 900 number. The prize was often junk jewelry, officials
say. The firm denies the charges. A hearing is set for March 20.

CHANGES COME AMID PROBE:
   Amid a probe by federal investigators, Merrill Lynch & Co. said
it has shaken up its junk bond desk because of improprieties, and
reimbursed nine clients who lost money. The brokerage said it is
cooperating with federal probe into the activities of the
35-person desk, which buys and sells the high-yield, high-risk
securities for clients.

COMPLAINT FILED OVER SILICONE:
   The Department of Justice filed a civil complaint in Los
Angeles Friday seeking a permanent injunction to prohibit a doctor
and two businesses he operates from ordering, processing,
promoting and treating patients with liquid injectable silicone.
The complaint against Dr. James E. Fulton, Vivant Inc., and Acne
Research Institute Inc., was filed at the request of the FDA.

BUCHWALD SUIT CONTINUES:
   Art Buchwald's lawsuit against Paramount Pictures over profits
from "Coming to America" begins Monday. The third phase of the
suit will determine how much money Buchwald and his partner, Alain
Bernheim are owed. In phase one, it was ruled that the film was
based on a treatment by Buchwald. A ruling in phase two found the
profit formula in Buchwald's and Bernheim's contract was unfair.

MERGER WILL NOT BE CHALLENGED:
   The Justice Department said Friday it will not challenge the
proposed bank merger of Security Pacific and BankAmerica, as long
as BankAmerica sells 211 branches in five states as planned. The
merger would create the USA's largest bank and has raised
antitrust concerns.

BANKAMERICA CONFIRMS AGREEMENT:
   BankAmerica confirmed Friday that it has entered into an
agreement with the Washington State Attorney General calling for
the divestiture of 86 Security Pacific branches in the state in
connection with their planned merger. The 86 branches to be
divested have approximately $3.4 billion in deposits - or about 6%
of those held by Washington banks, thrifts, and credit unions.

NEW REGULATIONS OUT THIS WEEK:
   The New Jersey insurance commissioner will release new
regulations this week designed to force firms to set auto rates
according to risk, not demographics. Under the new system for
1993, firms would have to emphasize driver's record, experience
and habits. The insurance industry says the changes would lead to
inequitable rates. A bill has been introduced to delay
regulations.

STATE SHUTS DOWN FIRM:
   The state has ordered Wood Guard Lumber in Alderson, W.Va., to
shut down for a month. The company was cited for failing to file
environmental reports. Wood Guard preserves lumber by treating it
with chromium copper arsenic, which foes fear will taint
groundwater and the Greenbrier River.

CRIMINAL CHARGES EXPECTED:
   Texas Attorney General Dan Morales is expected Monday to reveal
criminal charges against Westgate Care Center nursing home, The
Dallas Morning News reported Sunday. The charges stem from the
deaths of two patients. Westgate officials weren't available for
comment.

LAWYER SHORTAGE IN DETROIT:
   In Detroit, a chronic lawyer shortage leaves the city mired in
civil cases and forces damage payouts on forfeited suits,
officials say. Inexperienced lawyers don't know when to settle and
when to fight costly court battle, a city councilor says. Needed:
Bigger support staff of paralegals and investigators to file
documents and track cases.

Business Law Editor: Jason P. Smith. (919-855-3491) Making copies
of USA TODAY Update (Copyright, 1992) for further distribution
violates federal law.


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