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CONSUMER PROTECTION Drug maker pays states $435M over sale tactics LINCOLN, NEB. (AP)-Drug maker Schering-Plough Corp. has agreed to pay $435 million as part of a multistate settlement of complaints about its marketing and distribution tactics. The money will be divided among 47 states and the District of Columbia. Schering-Plough agreed to pay $255 million in penalties as part of the settlement. The New Jersey-based company was accused of offering lower rebates to Medicaid than it offered certain private insurance companies for the allergy drug Claritin and the potassium supplement K-Dur. COPYRIGHTS Belgian court orders Google to remove stories BRUSSELS (AP)-A Belgian court has ruled in favor of Belgian newspapers that sued Google Inc., claiming that the Internet search engine had infringed copyright laws and demanding that it remove their stories. Google said it would appeal, claiming that its news service was “entirely legal.” A Brussels court ruled in favor of Copiepresse, a copyright-protection group representing 18 mostly French-language newspapers that complained that Google’s “cached” links offered free access to archived articles that the papers usually sell on a subscription basis. The court ordered Google to remove any articles, photos or links from its sites that it displays without the papers’ permission. LEGAL PROFESSION $71M judgment against Baker Botts, bank nixed A TEXAS STATE appellate court has overturned a $71 million judgment against Houston-based law firm Baker Botts and Wells Fargo Bank N.A., in a conflict-of-interest dispute over an executive’s estate. In 2005, a Texas trial judge ordered Baker Botts and Wells Fargo to pay $65.5 million to Floyd Cailloux’s estate and $5.5 million in interest to his widow, Kathleen Cailloux, even though a jury had found that Baker Botts had acted in good faith. Kathleen Cailloux developed early stages of Alzheimer’s disease in 1997. Her son sued in 2002, claiming that the bank and the lawyers committed fraud in the estate-planning process by increasing funding to the bank-controlled charitable foundation to the detriment of Kathleen Cailloux and her family. The Texas 4th District Court of Appeals ruled that there was no evidence Kathleen Cailloux would have taken a different action had the law firm not represented her and the bank. “Baker Botts did nothing wrong with respect to our representation of Kathleen Cailloux,” said senior counsel Joe Cheavens, calling the ruling a “complete vindication.” -AP, STAFF REPORTS POLLUTION Aerospace maker pays $12M environmental fine HARTFORD, CONN. (AP)-Aerospace manufacturer Hamilton Sundstrand Corp. has agreed to pay $12 million after pleading guilty to violating the federal Clean Water Act. The $12 million payment will cover fines, plus millions in donations to help fund state environmental projects. Prosecutors say the company knowingly dumped tens of thousands of gallons of contaminated wastewater into the Farmington River in September 2003. REGULATORY ACTION Qwest agrees to invest $270M in New Mexico SANTA FE, N.M. (AP)-New Mexico state government officials have approved the final version of a settlement with Qwest Communications International Inc. that will provide $270 million in telecommunications investment in New Mexico. The settlement was approved at the end of last year by the state Public Regulation Commission. As part of the settlement, Denver-based Qwest will invest $255 million in technology infrastructure and pay $10 million in credits to customers. It must also pledge $5 million in new technology investments for disadvantaged schools around the state. Regulators concluded Qwest had fallen $220 million short of its $788 million, five-year commitment for investments. TAXATION Merck to pay $2.3B to settle dispute with IRS WASHINGTON (AP)-Merck & Co. Inc. has agreed to pay $2.3 billion to resolve several tax disputes, the Internal Revenue Service (IRS) said. The drug company’s payment includes taxes, interest and penalties stemming from the disputes, which cover the tax years 1993 to 2001. The IRS said the disputes arose in part from Merck’s use of minority equity interest financial transactions. WRONGFUL DEATH Firm to pay $12M for Clean Air Act breach BATON ROUGE, LA. (AP)-Honeywell International Inc. has agreed to pay $12 million in fines and restitution resulting from a fatal accident at its Baton Rouge chemical plant in 2003, the Justice Department said. Honeywell agreed to plead guilty to violating the federal Clean Air Act. The charge stemmed from an accident at the plant on July 29, 2003. A plant worker, Delvin Henry, was doused by a corrosive material after opening a vat that had been labeled as containing a benign refrigerant. He died from his injuries the next day.

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