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• CHILD ABUSE Alaska to pay $2.4M to foster care-abused teens ANCHORAGE, ALASKA (AP) � The state of Alaska will pay $2.4 million to settle a lawsuit filed on behalf of two teens who were abused and neglected in state foster care, ending a trial about to enter a second week. The settlement comes after testimony that scrutinized the old Division of Family and Youth Services. An assistant attorney general acknowledged that the boys had been harmed. The boys in 1999 saw their foster mother kill another child, then were made to lie about it. • FRAUD University of Phoenix parent must pay $280M PHOENIX (AP) � An Arizona federal jury has ordered Apollo Group Inc., the for-profit company that owns the University of Phoenix, to pay shareholders about $280 million for having fraudulently misled investors in 2004 about its student recruitment policies. Shareholders claimed Apollo had misled investors when it kept secret a Department of Education report that criticized the University of Phoenix’s recruitment policies. The report, issued in 2004, concluded that the University of Phoenix had paid enrollment counselors “solely based on . . . recruiters’ success in securing enrollments,” which violated federal regulations. • INTERNATIONAL TORTS Libya told to pay $6B for French airliner bombing WASHINGTON � A District of Columbia federal judge has ordered Libya and six of its officials to pay roughly $6 billion in damages to the families of Americans killed in the 1989 bombing of a French airliner. The case stems from the suitcase bombing of UTA Flight 772, which caused the airplane to crash in central Niger on its way to Paris from Chad, killing all 170 passengers and crew on board. Seven Americans were on the flight. In April 2007, the U.S. District Court for the District of Columbia ruled that Libya was directly responsible for the bombing, basing the decision on evidence from both the French criminal case and the U.S. Department of State. Then in August, Henry Kennedy held a three-day trial to determine damages. – ALM • POLLUTION EPA fines coal producer for contaminating water WASHINGTON (AP) � Coal producer Massey Energy Co. will pay a $20 million fine as part of a settlement with the government over allegations it routinely polluted hundreds of streams and waterways in West Virginia and Kentucky with sediment-filled waste water and coal slurry. Under the agreement with the Environmental Protection Agency, Richmond, Va.-based Massey will also invest millions of dollars for pollution-control improvements at its 44 mines and coal facilities in the two states and in Virginia. The EPA estimates the improvements required by the settlement will cost Massey as much as $10 million. The agreement settled a complaint filed by the EPA in May 2007 alleging that the company violated the federal Clean Water Act on at least 4,500 occasions between January 2000 and the end of 2006. • RACE DISCRIMINATION Decades-old lawsuit against union settles NEW YORK (AP) � More than 150 African-American and Hispanic sheet metal workers have been awarded a total of $6.2 million in a settlement in a nearly 40-year-old discrimination lawsuit against their union. The workers said they were underpaid for years because of their race or national origin. The Equal Employment Opportunity Commission filed the original litigation in 1971. The settlement compensates the workers for lost wages from 1984 to 1991; litigation over similar claims for pay after 1991 continues. • SEXUAL HARASSMENT $1.5M spanking verdict against firm overturned FRESNO, CALIF. (AP) � A California state appellate court has overturned a $1.5 million verdict awarded to a woman who was spanked in front of co-workers in what her employer called a camaraderie-building exercise. A jury in 2006 had ruled that Janet Orlando had suffered sexual harassment and sexual battery when she was paddled at home security company Alarm One Inc. However, the appellate court ruled that the jury had not been instructed that one vital element of proving that sexual harassment had occurred is presentation of evidence that the action was directed at a woman because of her gender. • WRONGFUL DEATH Death during childbirth yields $22M jury award CHICAGO (AP) � An Illinois state jury has awarded $22 million to the family of a woman who died from complications that arose during childbirth at an Evanston, Ill., hospital. The jury agreed with the family of Rachelle Bentivenga that in 2003, the staff of St. Francis Hospital failed to treat her high blood pressure during labor properly and that she suffered a massive brain hemorrhage as a result.

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