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BREACH OF CONTRACT Dow Jones pays $202M to settle lengthy dispute New York (AP)-Dow Jones & Co., publisher of the Wall Street Journal, has agreed to pay $202 million to settle a long-standing contract dispute with Market Data Corp. and Cantor Fitzgerald Securities. The dispute relates to Dow Jones’ obligations under a guarantee it issued in 1995 to Market Data and Cantor Fitzgerald. It involves Dow Jones’ prior ownership of Telerate, a financial data company that it sold in 1998 to Bridge Information Systems. Telerate had used data supplied from Cantor Fitzgerald and Market Data, and Dow Jones had retained its guarantee of payments under certain circumstances. California city settles suit with Enron creditors San Francisco (AP)-The city of Santa Clara, Calif., has agreed to pay Enron Corp. creditors $36.5 million to settle a lawsuit over terminated electricity contracts with the city’s municipal utility. Enron, the energy-trading company that collapsed into bankruptcy in 2001, sued the city of Santa Clara the following year, claiming that officials owed it $147 million for terminating two electricity contracts ahead of schedule. Santa Clara stopped paying Enron in December 2001 after the company ceased delivering promised electricity, said Junona Jonas, utility director for Silicon Valley Power, the city-owned electricity utility. CIVIL RIGHTS Kmart settles disability access suit for $13 million Denver (AP)-Kmart Corp. has agreed to a $13 million settlement of a class action over access for disabled shoppers in seven states. The agreement, filed in a Denver federal court, also gives the company 7 1/2 years to bring its stores nationwide into compliance with federal standards for merchandise, counters, restrooms, fitting rooms and parking lots. The $13 million includes $8 million in cash and $5 million in gift cards. It will be distributed to class action plaintiffs in California, Colorado, Hawaii, Massachusetts, New York, Oregon and Texas, states whose laws have minimum damages for failing to comply with disability-access rules. PROFESSIONAL LIABILITY Fen-phen lawyers told to disgorge $20 million Burlington, KY. (AP)-A Kentucky state judge has ordered three Lexington attorneys to surrender $20 million taken from a 2001 fen-phen settlement and used to set up a charitable fund. Judge William Wehr of Fort Thomas, Ky., said that the attorneys had paid themselves and friends more than half of the $200 million settlement, and did not tell their clients about the charity fund. “In reality, they were passing out money to themselves and others like it was theirs to do with as they wished,” Wehr wrote in his order. The lawyers and other directors of the fund paid themselves more in fees during its first two years than they paid out in grants, he wrote. Wehr ordered the lawyers-Melbourne Mills Jr. of Versailles, Ky.; and William J. Gallion and Shirley Cunningham, both of Lexington, Ky.-to place the funds from the charity in escrow so it can be distributed to former clients if they win a suit against the attorneys. According to Wehr, Cunningham, Gallion and Mills paid themselves $20 million each. The total in fees and other costs was $106 million, plus $20 million for the fund, which left $74 million for the plaintiffs to share. REGULATORY ACTION Bear Stearns will pay $250M fine to regulators New York (AP)-Bear Stearns Cos. Inc. has been fined $250 million by the New York Stock Exchange and the U.S. Securities and Exchange Commission for fraudulent market timing and late trading of mutual funds, according to regulators. According to NYSE Regulation, the stock exchange’s regulatory arm, Bear Stearns engaged in a pattern of deceptive market timing and late trading of fund shares from 1999 through 2003. The trades were designed to take advantage of the time between the markets’ closing and the new share values posted by mutual fund companies. The company will pay $90 million in fines and relinquish $160 million in profits and interest. SEX ABUSE Franciscan friars to pay $28M to settle lawsuits Los Angeles (AP)-Franciscan friars have reached a preliminary settlement for more than $28 million with about two dozen people who claimed that they were sexually abused at a now-defunct Santa Barbara, Calif., seminary and mission. The plaintiffs sued the Franciscan religious order that ran the seminary and the Roman Catholic Archdiocese of Los Angeles, which oversees religious orders and Roman Catholic churches in Santa Barbara County. The case centers on allegations that nine priests and brothers sexually abused men and women from 1964 through 1991 while assigned to St. Anthony’s Seminary and Old Mission Santa Barbara. The Franciscans conceded that abuse occurred at St. Anthony’s after an internal report published in 1993 found that 11 priests had abused 34 boys from 1964 to 1987, when the seminary closed for financial reasons.

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