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ANTITRUST Truck dealer’s suit fails, must pay manufacturer PHILADELPHIA-A Pennsylvania federal jury has rejected an antitrust suit brought by Toledo Mack Sales & Service Inc. against Mack Trucks Inc. In addition, jurors found in favor of Mack Trucks on its counterclaims for misappropriation of trade secrets and ordered the plaintiff to pay more than $11.3 million. Toledo Mack had alleged that Mack Trucks instituted policies designed to discriminate against it because its business approach was to sell trucks at low prices-an approach Toledo claimed conflicted with Mack’s interest in keeping truck prices high. Mack Trucks counterclaimed that the only illegal conduct was Toledo’s when it gave valuable and secret information to a generic parts manufacturer. Mack Trucks alleged that Toledo had disclosed confidential price lists for more than 40,000 truck parts to PAI Industries Inc. Toledo also gave PAI access to MackSpec, a massive database that Mack spent $32 million developing, which includes details on the design and repair histories of more than 1 million trucks. -ALM BREACH OF CONTRACT $38M verdict against city that injured firm’s name PHILADELPHIA-A Delaware federal jury has awarded more than $38.4 million to a Pennsylvania firm in its suit against the city of Newark, Del., over the termination of its contract to build a reservoir and the subsequent tarnishing of its reputation. Donald M. Durkin Contracting Inc. claimed that its contract to build a 318 million-gallon reservoir was terminated after it raised concerns about whether the reservoir could be built as designed. The company claimed that Newark city officials refused to address the problems, and instead set out to ruin Durkin’s reputation and interfere with its ability to obtain additional jobs. The jury awarded Durkin more than $13.4 million on its breach of contract claims and $25 million on its civil rights claim. -ALM DEFAMATION Mother must pay $11.3M over Internet postings FORT LAUDERDALE, FLA. (AP)-A Florida state jury has ordered a mother who posted critical Internet messages about a children’s services referral provider to pay $11.3 million in damages. The defendant, Carey Bock, had called Sue Scheff, founder of Parents Universal Resource Experts Inc., a “con artist,” a “crook” and a “fraud” in messages posted on a site used by parents with troubled children at boarding schools. A judge ruled in Scheff’s favor after Bock did not show up for the trial. The jury then decided the damage amount. The dispute arose after Bock sought help on withdrawing her sons from a school in Costa Rica. Banker’s ex-wife pays for career-damaging letter CHICAGO (AP)-An Illinois state jury has ordered the ex-wife of an investment banker to pay him $9.7 million over a defamatory letter she sent to his colleagues, friends and potential employers after their 1999 divorce. According to investment banker Scott George’s complaint, his former wife circulated 200 copies of the letter sometime in late 2002. The letter alleged that George boasted of bribing judges, had made plans to have her killed and cheated his employers through an investment scam. George said he was demoted shortly after the letters were sent and, when the firm was eventually sold, he was the only senior employee not given a job offer. MEDICAID Pharmacy provider pays $52.5M over fraud claims LANSING, MICH. (AP)-Omnicare Inc. and a subsidiary will pay about $52.5 million to settle a civil case related to Medicaid fraud allegations in Michigan. Specialized Pharmacy Services Inc. is a subsidiary of Covington, Ky.-based Omnicare, which provides pharmacy services to long-term care facilities. Specialized Pharmacy President Daniel Lohmeier has been charged with 148 felony counts, each punishable by up to four years in prison. Specialized Pharmacy had allegedly filed Medicaid claims for drugs that weren’t used and for patients who had died. PATENTS Integrated circuit maker wins infringement suit SOUTH PORTLAND, MAINE (AP)-A Delaware federal jury has found in favor of Power Integrations Inc., a maker of analog integrated circuits, in its patent infringement case against Fairchild Semiconductor International Inc. Jurors found that Fairchild had willfully infringed on four patents owned by San Jose, Calif.-based Power Integrations and awarded the company $34 million in damages, Power Integrations said in a statement. Fairchild said it believes it will prevail in the case, since the jury’s findings were the first of three phases of the trial. The second phase, on the validity of Power Integrations’ patents, will begin on Dec. 4 before a different jury. PROFESSIONAL LIABILITY Failure to avert Enron’s fall to cost banks $20M HOUSTON (AP)-FleetBoston Financial Corp., Fleet National Bank and other affiliates have agreed to pay Enron Corp. nearly $20 million to settle their portions of a lawsuit filed against 10 banks accused of failing to prevent the energy company’s 2001 collapse. FleetBoston, which was bought by Charlotte, N.C.-based Bank of America Corp. in 2004, will pay Enron $10.4 million to settle the so-called “MegaClaims” lawsuit and $9.35 million to settle an avoidance action to recover preferential transfers in connection with Enron’s commercial paper litigation. The money is to go to creditors of Enron, which is liquidating its remaining operations. REGULATORY ACTION Dutch investment firm to refund teachers $30M ALBANY, N.Y. (AP)-New York Attorney General Eliot Spitzer has announced a $30 million settlement that ends his investigation of ING Groep N.V., a Dutch investment company that had paid as much as $3 million annually in fees to New York State United Teachers. As many as 66,000 teachers in New York state and about 5,000 state workers in New Hampshire will get an average of $450 apiece from a settlement with investment company ING, which paid fees to unions to steer business its way. Every teacher will receive at least $100. The agreement doesn’t cover New York City teachers who are represented by the United Federation of Teachers. Racetrack pays $9M to end river pollution probe ALBANY, N.Y. (AP)-A harness track will pay $9 million in penalties and costs to settle an investigation into the dumping of raw sewage into the Bronx River, New York Attorney General Eliot Spitzer and the state Department of Environmental Conservation have announced. Yonkers Raceway will pay a $2 million fine, stop all discharges of human waste into the river and pay $6 million for projects to reduce pollution from storm runoff. Another $1 million will go to a local environmental education center. An investigation found that the raceway has for years flushed human waste from several buildings into a storm sewer that feeds into the river instead of the city of Yonkers’ municipal sanitary sewer. Investigators also found that horse manure was routinely flushed into storm sewers when workers cleaned stalls. WAGES AND HOURS Wells Fargo pays $12.8M to settle overtime suit SAN FRANCISCO (AP)-Financial services provider Wells Fargo Co. said that it has reached a $12.8 million settlement in an overtime pay class action. The suit, brought by former employee Jasmin Gerlach in February 2005, was filed on behalf of 4,500 current and former Wells Fargo employees. The complaint alleged that Wells Fargo violated the Fair Labor Standards Act by failing to pay overtime to certain employees. WHISTLEBLOWER LAW Software maker, DOJ settle overcharge claims WASHINGTON (AP)-Software maker Oracle Corp. has agreed to pay $98.5 million to settle complaints that it had overcharged the government for nearly a decade on a slew of contracts. According to the U.S. Department of Justice, between 1997 and 2005, the government “paid vastly inflated prices” for computer software and maintenance for human resources and financial systems for 60 federal agencies. The federal investigation of Redwood Shores, Calif.-based Oracle followed a complaint against its subsidiary, PeopleSoft, by a former employee, James A. Hicks, who tipped off officials that the government was not receiving discounts for buying multiple products and services-as other clients were given. Oracle said that the complaints originated with PeopleSoft, which Oracle purchased in January 2005 for $11.1 billion after an 18-month hostile takeover battle. Health provider pleads guilty to Medicare fraud LOS ANGELES (AP)-The owner of two large California home health care businesses has pleaded guilty to health care fraud that cost Medicare $40 million. Lourdes Perez, 53, of San Diego, entered the plea in a California federal court as part of a settlement in which she, her husband and her two businesses repaid $33.9 million to the government. Prosecutors recommended that she be sentenced to 46 months in prison. Perez was the owner of Los Angeles-based Provident Home Health Care and San Dimas, Calif.-based Tri-Regional Home Health Care, which billed Medicare for work that was never performed. Perez came under federal investigation after a payroll clerk at Provident filed a whistleblower lawsuit in 2003.

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