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BREACH OF CONTRACT Carbon fiber maker must pay $36M for no delivery ST. LOUIS (AP)-A Missouri federal jury has awarded $36 million to Structural Polymer Group Ltd. in a breach of contract suit against carbon fiber maker Zoltek Cos. Inc. Structural Polymer brought its suit in February 2005, saying that Zoltek had breached a supply agreement to provide carbon fiber, which is used in aircraft brakes as well as sporting goods. Structural Polymer claimed that Zoltek had agreed to supply a large amount of carbon fiber filament through 2010. However, starting in August 2004, Zoltek had not supplied the material, which prevented Structural Polymer from meeting its customer needs. GOVERNMENT CONTRACTS Halliburton unit settles overcharge case for $8M WASHINGTON (AP)-Military contractor KBR Inc., formerly known as Kellogg Brown & Root, will pay $8 million to settle claims that it overcharged the U.S. Army for construction and other support services in the Balkans, the U.S. Department of Justice announced. The contractor, a subsidiary of Halliburton Co., the oil services giant, was accused of double-billing the government and ordering unusable products while helping build Camp Bondsteel in Kosovo, prosecutors said. KBR was also accused of inflating prices for some unspecified goods that were not put out for competitive bidding. MEDICAL MALPRACTICE Botched tonsil surgery case settles for $6.2M PHILADELPHIA-A $6.2 million settlement has been reached in a Pennsylvania case brought by the family of a 9-year-old boy who allegedly suffered extensive and permanent brain damage after an August 2005 surgery to remove his tonsils and adenoids. The parents of Jahmir Bates alleged that Sacred Heart Hospital staff failed to make note of Jahmir’s severe sleep apnea when prepping him for surgery. They claimed that while in the operating room, Jahmir began to experience breathing difficulties and soon began to go into respiratory failure. Jahmir’s treating ear-nose-throat surgeon, defendant Robert Dedio, and anesthesiologist, defendant Pamela Durning, began operating on Jahmir without first examining him and learning of his history of sleep apnea. Jahmir can no longer walk, talk, eat, see or control his limbs.- ALM Jury awards $5.7M to woman dying of cancer PORTLAND, ORE. (AP)-An Oregon state jury has awarded $5.7 million to a woman dying of breast cancer because a radiologist incorrectly evaluated her mammogram. The jury found that The Oregon Clinic harmed Julie Joel by its negligence, awarding her $754,052 in economic damages and $5 million for pain and suffering. Joel, 58, went to the Providence Professional Plaza in 2002, where a radiologist with The Oregon Clinic misread the breast X-ray and found no abnormalities. She went to a different clinic in 2004 and was told she had advanced breast cancer. PROFESSIONAL LIABILITY Pension firm pays $4.5M to San Diego to end suit SAN DIEGO (AP)-A pension consultant firm that has advised on San Diego’s retirement system since 1982 will pay the city of San Diego $4.5 million to settle a lawsuit. The city had accused San Francisco-based Callan Associates of faulty investment advice. San Diego’s unfunded pension liability-the gap between the value of its pension assets and its obligation to retirees-has grown to at least $1.43 billion. REGULATORY ACTION FDA fines Red Cross $5.7M for blood breaches WASHINGTON (AP)-The federal government has fined the American Red Cross $5.7 million for violating blood-safety laws and the terms of a 2003 consent decree. The fine covers quality assurance and blood component manufacturing issues turned up during a 2005 inspection of a Red Cross facility in West Henrietta, N.Y. TORTS Automaker told to pay $20M in asbestos verdict NEW YORK (AP)-A New York state jury has ordered DaimlerChrysler Corp. to pay $20 million to a retired police officer and brake repairman whose right lung was removed because of cancer caused by asbestos. The jury ruled that Alfred D’Ulisse, 73, and his wife were owed a total of $25 million. DaimlerChrysler was found to be 10% liable for D’Ulisse’s cancer, but will be responsible for a total of 80% of the damages because two other companies found to be liable no longer exist. The jury found that the automaker acted with reckless disregard for the safety of others. D’Ulisse worked at Morak Brakes in Brooklyn, N.Y., from 1960 to 1964 and then worked there part time during some of his 36 years as a city police officer. WAGES AND HOURS IBM settles overtime class action for $65M SAN JOSE, CALIF. (AP)-International Business Machines Corp. has settled a federal class action by agreeing to pay a total of $65 million to 32,000 technology workers who claimed that the company had illegally withheld overtime pay. The suit involved workers classified as “technical services professional and information technology specialists.” IBM considered them highly skilled professionals exempt from overtime laws detailed in the Fair Labor Standards Act and California labor laws.

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