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COPYRIGHTS Record companies and Web site settle suit Los Angeles (AP)-The operators of a Spanish-based Web site that sold music downloads have agreed to pay $10.5 million to settle a copyright-infringement lawsuit brought by several recording companies. Sakfield Holding Co. S.L., which ran Puretunes.com, has agreed to pay the record companies $10 million. Four individuals identified in court documents as the site’s operators have also agreed to pay a combined $500,000. Under the terms of the settlement, Sakfield and Puretunes’ operators agreed not to engage in any activity that would violate music company copyrights. The suit alleged that the company unlawfully copied and distributed thousands of songs through the Web site and charged users for access to the files. MEDICAL MALPRACTICE Misdiagnosis leading to girl’s death yields $17.4M Milwaukee (AP)-The family of a high school girl who died in 1998 after 89 operations has been awarded $17.4 million. The suit contended that her death was the fault of doctors at Children’s Hospital of Wisconsin for misdiagnosing her intestinal problems and giving her inadequate care. She had a twist in her small intestine and, because it wasn’t treated in time, the blood supply to it was shut off, and the organ withered inside her. OCCUPATIONAL DISEASE $20.5M award for man exposed to asbestos Los Angeles (AP)-A jury has recommended that two companies pay $20.5 million to a former nuclear submarine machinist who contracted a fatal form of lung cancer after exposure to asbestos from their products. The jury found Garlock Sealing Technologies of Palmyra, N.Y., and Kelly-Moore Paint Co. of San Carlos, Calif., jointly liable for Robert Treggett’s lung cancer. The jury recommended that Treggett should receive a total of $36.6 million, assigning 40% fault to Garlock, 14% to Kelly-Moore, 39% to the Navy and 7% to an equipment manufacturer that settled during deliberations. Treggett worked from 1965 to 1972 aboard the USS Marshall submarine repairing propulsion equipment, where he was exposed to a lot of asbestos dust. PRICE-FIXING States offer to settle with Organon over drug Portland, Ore. (AP)-Oregon Attorney General Hardy Myers has proposed a $36 million nationwide settlement between pharmaceutical manufacturer Organon USA Inc., consumers and states over the antidepressant drug Remeron. The settlement proposal, filed in federal court in New Jersey, resulted from a 10-month investigation by Oregon, Texas and Florida into allegations that Organon tried to prevent consumer access to lower-cost generic versions of the drug. The AGs accused Organon of illegally extending a monopoly on the drug by improperly listing a new “combination therapy” patent with the U.S. Food and Drug Administration. The complaint alleged that Organon delayed listing the patent with the FDA in another effort to slow the availability of lower-cost generic substitutes, resulting in higher prices. PROFESSIONAL LIABILITY Settlement over botched burials gets judge’s OK Fort Lauderdale, Fla. (AP)-A judge said he would approve a $100 million settlement against two Menorah Gardens cemeteries accused of desecrating graves and mishandling burials. Judge J. Leonard Fleet said he’s ready to sign off on a deal reached in December. The cemeteries in Broward and Palm Beach counties, owned by the world’s largest funeral services company, had been accused of burying people in the wrong places, breaking open vaults to squeeze in other remains and tossing bones into the woods. REGULATORY ACTION $250M settlement in revenue-inflation case Denver (AP)-The telecommunications company Qwest Communications International Inc. has agreed to pay $250 million to settle allegations that it improperly booked $3.8 billion in revenue. The Securities and Exchange Commission filed the settlement agreement in federal court in Denver, capping a 2 1/2-year investigation. It had accused Qwest senior managers of directing a scheme to book one-time revenue from the sale or trade of fiber-optic capacity as recurring revenue from operations. Since 2002, the company has restated financial results to lower revenue by about $2.5 billion. SHAREHOLDER SUIT AT&T offers $100M to settle class action Newark, N.J. (AP)-AT&T Corp. said that it and a former subsidiary will pay $100 million to settle a shareholder class action. AT&T said that the payment would be split between the company and its former broadband subsidiary, which was spun off in 2002. The suit, brought on behalf of those who bought stock from Dec. 6, 1999 to May 1, 2000, charged AT&T with knowingly overstating revenue growth for the company’s business division.

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