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BANKRUPTCY Credit Suisse pays Enron $90M to settle fraud suit Houston (AP)-Credit Suisse Securities LLC has agreed to pay Enron Corp. $90 million to settle its portion of a “megaclaims” lawsuit that the failed energy company filed alleging that 10 banks “aided and abetted fraud” and could have prevented Enron’s collapse. Enron, which filed for bankruptcy in December 2001, said that the settlement also calls for about $337 million in claims that Credit Suisse held against the Enron estate not to be distributed. COPYRIGHTS File-sharing service pays $30M to avoid lawsuits Los Angeles (AP)-The operators of the BearShare online file-sharing service have agreed to pay $30 million to avoid potential copyright infringement lawsuits from the recording industry. Free Peers Inc., which distributed the BearShare software, also agreed not to operate any unlicensed online music services. Free Peers was one of seven file-swapping software companies to receive letters from the recording industry last fall warning them to shut down or prepare to face lawsuits. Since then, the operators behind i2Hub and WinMX shut down. The operators of four file-sharing services-Warez P2P, Limewire, eDonkey and Soulseek-have yet to shut down or settle. FRAUD Ex-CEO to pay $22.3M in stock-boost lawsuit Los Angeles (AP)-A federal judge in California has ordered the former chief executive officer of Gemstar-TV Guide International Inc. to pay $22.3 million in fines and penalties in an investment fraud case brought by the Securities and Exchange Commission. In March, the court found Harry Yuen liable for securities fraud, finding that he had inflated the company’s revenue by $248 million to boost its stock. Yuen was also found liable for misrepresenting facts to the company’s auditors and falsifying its books. Yuen was ordered to repay compensation of $10.6 million, which represents $3 million in bonuses he received during the period in question, plus $7.6 million in profit from trading Gemstar stock. Yuen must also pay a $10.6 million civil penalty and $1.1 million in interest. NEGLIGENCE Nursing home to pay for ignoring pleas for help Frankfort, Ky. (AP)-A Kentucky state jury has awarded $20 million to the estate of a man who died at a nursing home after nurses had ignored his pleas for help. Wanda Delaplane, Loren Richards’ daughter, alleged that her father suffered abdominal pains and that nurses at Beverly Health and Rehabilitation of Frankfort ignored his repeated calls for help. The lawsuit also alleged that the home was understaffed because of companywide cost-cutting. Richards had an impacted bowel and later died of a heart attack. REGULATORY ACTION Insurer pays $20M to settle fraud sales probe Hartford, Conn. (AP)-The Hartford Financial Services Group has agreed to pay $20 million to settle an investigation into claims of fraudulent sales practices in retirement products, the attorneys general of Connecticut and New York have announced. The Hartford agreed to return $16.1 million in profit from the sales that the attorneys general say were arranged in concealed financial agreements with brokers. The practice helped The Hartford realize more than $800 million in sales from 1998 to 2004, forcing higher policy costs for customers. The attorneys general had accused The Hartford of a scheme involving fake expense reimbursement agreements with brokers. Instead of expense reimbursements, Spitzer claimed that they were volume-based bonuses to brokers for recommending The Hartford policies. Failure to supply e-mails to cost investment firm Washington (AP)-Morgan Stanley & Co. Inc. has agreed to pay a $15 million civil fine to settle federal regulators’ charges that it failed to provide tens of thousands of e-mails that they sought in major investigations over several years. In a civil lawsuit, the Securities and Exchange Commission (SEC) had also accused the investment firm of making “numerous misstatements” regarding the status of its efforts to preserve and produce the requested e-mails. The SEC sought them from December 2000 through July 2005. In January 2005, Morgan Stanley agreed to pay $40 million to settle the SEC’s allegations that it had improperly doled out shares of hot new stocks to certain customers to get them to buy more at inflated prices once trading began. Record-label firm settles payola probe for $12M Albany, N.Y. (AP)-Universal Music Group Recordings Inc. has agreed to pay $12 million to settle a payola case that claimed the company provided vacations, electronics and other bribes to increase radio play for their artists, New York Attorney General Eliot Spitzer said. The bribes and gifts were used to gain airplay for songs that included records by Ashlee Simpson, Brian McKnight, Big Tymers and Lindsay Lohan.

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