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BREACH OF CONTRACT Bank settles trashed IRS returns claim for $16.5M PITTSBURGH (AP) � Mellon Bank has agreed to pay $16.5 million to the federal government to settle claims that it allowed overwhelmed employees to destroy thousands of federal tax returns and payments in 2001. In turn, the government will not pursue any civil or administrative monetary claims against Mellon. The bank, a subsidiary of Mellon Financial Corp., had a contract with the Internal Revenue Service to process income tax returns and tax-payment checks. Mellon employees, feeling overworked and unable to meet deadlines imposed by the contract, destroyed more than 77,000 returns and checks totaling $1.3 billion at a company service center in Pittsburgh in April 2001. CLASS ACTION Judge nixes $17M verdict in aftermarket parts suit KANSAS CITY, MO. (AP) � A Missouri state judge has overturned a jury’s decision ordering American Family Mutual Insurance Co. to pay $17 million as part of a class action over aftermarket vehicle parts in Missouri. Judge Edith Messina ruled that the plaintiffs had not provided enough proof that they had suffered damages from the insurance company’s policy allowing aftermarket parts in accident repairs. The $17 million verdict, handed down on March 9, covered an estimated 319,000 Missouri residents who made vehicle repair claims between May 1990 and December 2004. The suit claimed that while American Family’s policies said the insurer would pay for replacement parts that were similar in quality, fit and performance to the original parts, it actually approved repair estimates including “inferior imitation crash parts” and omitted other necessary repairs. Moving firm pays $53M to settle false filings suit NEW YORK (AP) � Relocation services provider SIRVA Inc. said it has agreed to settle a securities class action against the company and certain current and former officers for about $53.3 million. The suit, originally filed in 2005, claimed the company and certain of its officers made false and misleading statements in certain press releases and filings with the U.S. Securities and Exchange Commission. POLLUTION Refinery to pay $6M over environmental breaches DELAWARE CITY, DEL. (AP) � Valero Energy Corp. will spend $6 million to settle more than two years of environmental violations. In a settlement announced by Delaware Department of Natural Resources and Environmental Control officials, the Delaware City refinery must make $6 million in system improvements. The state alleged that the company broke air and water pollution regulations. Company officials promise to improve their boilers, which release sulfur dioxide, carbon monoxide, ammonia and hydrogen cyanide. REGULATORY ACTION Hedge fund, SEC settle illegal short-sales charges WASHINGTON (AP) � London-based hedge fund GLG Partners L.P. will pay more than $3.2 million to settle charges that it made illegal stock trades in connection with 14 public offerings, the U.S. Securities and Exchange Commission said. The SEC said the company made more than $2.2 million in profits over a two-year period from July 2003 to May 2005 in illegal short sales. Short selling involves borrowing stock from a broker and selling it immediately, with the hope of buying it back for a lower price and returning it to the broker. IBM pays $7M to settle SEC Wells Notice probe ARMONK, N.Y. (AP) � International Business Machines Corp. said it has agreed to pay $7 million to a Dollar General Corp. general shareholder fund to settle two U.S. Securities Exchange Commission investigations. IBM said the payment settled a “Wells Notice” connected to the SEC’s investigation of Dollar General, and the SEC’s investigation into IBM’s revenue recognition. In 2004, IBM acknowledged it received a Wells Notice from the SEC accusing the company of violating accounting rules in an $11 million transaction with Dollar General, its customer. The SEC had begun looking into the transaction as part of a larger probe into Dollar General’s accounting practices. Dollar General had acknowledged overstating profits by $100 million from 1998 to 2000. A Wells Notice from the SEC gives the company or people involved a chance to defend themselves and possibly avoid formal charges. WRONGFUL DEATH $21.6M for man whose wife was killed in crash WEST PALM BEACH, FLA. (AP) � A Florida state jury has ordered a driver and the corporation that owned the company car she was driving to pay $21.6 million to stay-at-home father who was left a widower after the wreck. Stephen Beers’ suit claimed that Sheila Hulick, the driver, was distracted because she was talking on her cellphone.

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