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• INSIDER TRADING Convicted ex-CEO of Qwest must forfeit $52M DENVER (AP) � A Colorado federal judge has ordered former Qwest Communications International Inc. Chief Executive Joe Nacchio, who was convicted of insider trading, to forfeit $52 million in assets he gained in illegal stock sales. The order came at the start of a sentencing hearing for Nacchio, convicted in April of making $52 million in stock sales at a time when he knew Qwest, a primary telephone service provider in 14 mostly Western states, faced financial risk but did not tell investors. Thousands of investors lost money when Qwest’s stock price fell from more than $60 a share in 2000 to $2 a share in 2002. The scandal forced Qwest to restate $2.2 billion in revenue. • NEGLIGENCE Gas firm fined for deadly N.M. pipeline explosion ALBUQUERQUE, N.M. (AP) � El Paso Natural Gas Co. has agreed to pay a $15.5 million fine and make $86 million in pipeline modifications in a settlement after a fiery explosion killed 12 campers in August 2000. The Justice Department and the Pipeline and Hazardous Materials Safety Administration said the settlement covers the company’s 10,000-mile pipeline system across the West, Southwest and northern Mexico. Federal investigators determined the explosion was caused by water and other corrosives that pooled in the 50-year-old pipe and ate away at the metal. El Paso Natural Gas and its parent company have settled negligence lawsuits filed by relatives of those killed in the explosion. • PRICE-FIXING British, U.S. agencies fine British Airways $550M LONDON (AP) � Britain’s Office of Fair Trading and the U.S. Department of Justice have fined British Airways PLC almost $550 million after the airline acknowledged colluding with rival Virgin Atlantic Airways Ltd. over fuel surcharges. In a statement, the airline said that between August 2004 and January 2006, it colluded with Virgin Atlantic over the surcharges added to fares in response to rising oil prices. Under the Office of Fair Trading’s leniency policy, Virgin Atlantic is not expected to face a fine because it reported alleged misconduct. Authorities in Britain and the United States have been investigating allegations of price-fixing on fuel surcharges since June 2006. During the period under investigation, fuel surcharges rose from about 2.27 kilograms ($10) to about 27.22 kilograms ($120) per ticket for a round-trip long-haul flight on British Airways and Virgin. DOJ fines South Korean airline for fuel surcharges SEOUL, SOUTH KOREA (AP) � The U.S. Department of Justice has fined South Korea’s national carrier, Korean Air Co., $300 million for colluding with competitors to fix fuel surcharges on cargo shipments to the United States and fixing some passenger fares from the United States to South Korea. • RACE DISCRIMINATION Nike pays $7.6M to settle racial bias class action PORTLAND, ORE. (AP) � Nike Inc. has reached a $7.6 million settlement in a lawsuit filed on behalf of 400 black employees of the company’s Chicago Niketown store. The discrimination class action, filed in 2003, claimed managers at the retail store used racial slurs to refer to black workers and customers. The lawsuit also said the store segregated black employees into lower-paying jobs as stockroom workers and cashiers rather than give them lucrative sales jobs. • REGULATORY ACTION Morgan Stanley fined $6.1M over bond sales WASHINGTON (AP) � Morgan Stanley will pay $6.1 million in a settlement with the Financial Industry Regulatory Authority (FINRA), which had accused the Wall Street investment firm of overcharging retail brokerage customers on bond sales in 2001. New York-based Morgan Stanley was fined $1.5 million and ordered to pay $4.6 million in restitution to customers who paid markups as high as 18% for bonds issued by Kemper Lumbermens Mutual Casualty Co. FINRA alleged that from February through June of 2001, Morgan Stanley overcharged customers of its retail brokerage division in 2,807 separate sales of the Kemper Lumbermens bonds, with a total value of more than $59 million. Morgan Stanley marked up the $59 million in bonds by a total of $6.5 million. • WRONGFUL DEATH Car seat maker must pay $10.4M for infant’s death HELENA, MONT. (AP) � A Montana state jury has ordered Ohio-based car seat maker Evenflo Co. to pay $3.7 million in punitive damages to the parents of a 4-month-old Montana boy who died of head injuries in a car crash. The award came a day after the jury awarded $6.7 million in compensatory damages to Chad and Jessica Malcolm of Livingston, Mont. Tyler Malcolm was killed in the July 2000 car crash after striking his head on the car seat’s hard plastic shell when the seat was ejected from the vehicle during the rollover crash.

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