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ACCOUNTING DaimlerChrysler unit has to pay $838M over fraud PORTLAND, ORE. (AP)-An Oregon state jury has confirmed a British judgment against DaimlerChrysler A.G.’s heavy truck subsidiary, Freightliner LLC, worth at least $488 million. The jury determined that Portland-based Freightliner must pay at least that much to rival truck maker MAN A.G. of Germany under the terms of a 2005 British court decision. The jury found Freightliner liable for intentionally shifting assets among several of its divisions in an effort to avoid the British legal judgment. The jury also slapped Freightliner and DaimlerChrysler North American Holding Corp. with $350 million in punitive damages. The case arose from alleged accounting fraud at ERF, a British subsidiary of Canadian truck maker Western Star Holdings Ltd. MAN bought ERF from Western Star in March 2000, but claims it did not discover the accounting fraud until the following year. Freightliner bought Western Star in late 2000. BREACH OF CONTRACT Marketer ends suit, pays $1.2B for direct mail firm WILMINGTON, DEL. (AP)-Valassis Communications Inc. has agreed to acquire direct-mail marketer Advo Inc. for $1.2 billion in a settlement ending a lawsuit over the planned acquisition. Under the settlement, Valassis will acquire all of Advo’s outstanding common shares for $33 each, a discount of more than 10% from the price of $37 a share to which Valassis agreed in July 2006. Livonia, Mich.-based Valassis had filed the suit in an effort to back out of a $1.3 billion acquisition of Windsor, Conn.-based Advo, accusing it of withholding and fabricating financial information during acquisition talks early last year. Advo countersued, saying Valassis was trying to drive down the purchase price. PATENTS Web-based auto dealers’ dispute settles for $20M IRVINE, CALIF. (AP)-Autobytel Inc., whose Web site helps consumers buy cars, has said it will receive $20 million in payments to settle a patent lawsuit with Dealix Corp. Autobytel sued Dealix in December 2004 alleging infringement of a patent for a system that matches customers and sellers looking to exchange products and services online. POLLUTION Shipping firm fined $37M for dumping waste oil BOSTON (AP)-Oil tanker and bulk shipping company Overseas Shipholding Group Inc. will pay a record fine of $37 million after pleading guilty to illegally dumping waste oil and falsifying pollution logs in six U.S. ports. The company agreed to plead guilty to 33 felony counts stemming from dumping violations from nine ships and for log violations for three other ships. The penalty includes a $27.8 million criminal fine which will be divided among the districts and a $9.2 million community service payment to fund various marine environmental projects. REGULATORY ACTION Drug maker pays $499M to end price-boost probe NEW YORK (AP)-Bristol-Myers Squibb Co. said that it has agreed to pay $499 million to settle federal investigations into questionable drug pricing and marketing practices. The company entered an agreement in principle with the U.S. Department of Justice to pay the settlement and avoid civil and criminal charges. Bristol-Myers will also enter a corporate integrity agreement with the Department of Health and Human Services’ office of the inspector general. Attorneys general of several states said Bristol-Myers had inflated the average wholesale prices of its drugs, the same prices that are used by government programs and insurers for reimbursement purposes. All suits were consolidated in a Massachusetts federal court. Insurer settles charges of bid-rigging for $17M WARREN, N.J. (AP)-Chubb Corp. has said that it will pay $17 million to settle allegations that the property and casualty insurer paid insurance brokers to bring the company clients. Attorneys general in three states investigated whether Chubb had paid “contingent commissions,” or payments on top of commissions, to encourage brokers to bring the company business. Chubb has agreed to contribute $15 million to an account reimbursing customers who bought insurance through brokerage Marsh & McLennan Cos. Chubb will also pay $2 million to New York, Connecticut and Illinois to pay for the investigations. Investor pays $7.7M to end insider-trading probe WASHINGTON (AP)-Investment firm Friedman, Billings, Ramsey & Co. has agreed to pay about $7.7 million to settle insider trading charges lodged by federal and industry regulators. The U.S. Securities and Exchange Commission and the National Association of Securities Dealers alleged that the company had improperly traded shares of CompuDyne Corp. in a 2001 securities offering that it managed for the security products company. The regulators said the firm had failed to establish procedures to prevent insider trading.

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