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• BREACH OF CONTRACT Bank awarded $382M in regulatory good will suit SEATTLE (AP) � The U.S. Court of Federal Claims has awarded Washington Mutual Inc. $382 million in damages in a case involving subsidiary Anchor Mutual Savings Bank. Anchor Savings alleged that the government had breached its agreement to allow regulatory good will to be considered in Anchor’s regulatory capital calculation. That forced Anchor to sell assets to meet regulatory requirements. Washington Mutual acquired Dime Bancorp Inc., which owned Anchor Savings, in 2002. Dime had created litigation-tracking warrants and distributed them to its shareholders. The warrants permitted holders to receive shares of Dime at a price based on the amount recovered in the Anchor case. When Washington Mutual bought the company, those warrants became exercisable for Washington Mutual stock. • MEDICAID Pharmacy chain settles overbilling suit for $37M CHICAGO (AP) � CVS Caremark Corp. has agreed to pay almost $37 million to nearly two dozen states and the federal government to settle claims that the nation’s largest pharmacy chain billed Medicaid programs for a more expensive formulation of an antacid. The pharmacy chain allegedly gave Medicaid patients capsules of Ranitidine, a generic version of the heartburn medication Zantac, instead of even less expensive tablets. The switch was illegal and allowed the company to charge state Medicaid programs more than four times as much for each pill. • POLLUTION Insurers must cover up to $730M of cleanup costs GREEN BAY, WIS. (AP) � A Wisconsin state jury has ordered nine insurance companies to cover $550 million to $730 million of the costs assessed to former Appleton Papers Inc. for cleanup of the industrial chemical PCBs in the Fox River. Jurors determined that the insurance polices covered property damage caused by the discharge of the industrial chemical pollutant into the river. Columbia Casualty Co. of Chicago sued in 2005, claiming its policy did not cover PCB damage. Eight other insurance companies joined the lawsuit. • REGULATORY ACTION Investor pays $30M to end nondisclosure probe NEW YORK (AP) � The U.S. Securities and Exchange Commission said that investment firm W.P. Carey & Co. LLC will pay $30 million to settle allegations that it failed to disclose compensation it paid to broker-dealers. The SEC said that the New York investment firm will pay $20 million in disgorgement and interest and a $10 million civil penalty. In a settled complaint filed in a New York federal court, the SEC alleged that W.P. Carey caused its real estate investment trusts (REITs) to pay nearly $10 million to one of its selling broker-dealers between 2000 and 2003 without disclosing that compensation. The compensation exceeded a National Association of Securities Dealer cap on compensation for broker-dealers who sell nontraded REITs, the SEC said. • TAXATION Three countries must pay New York City $58M NEW YORK (AP) � The governments of India, Mongolia and the Philippines must pay New York City a total of $57.6 million in real estate taxes after a federal judge ruled that diplomatic privileges do not exempt the countries from tax obligations. The U.S. Supreme Court ruled last year that the city had a right to collect taxes on portions of buildings used by other countries for nondiplomatic purposes. India was ordered to pay $42.4 million, Mongolia $4.3 million and the Philippines $10.9 million. • WAGES AND HOURS Starbucks must pay back baristas $100M in tips SAN DIEGO (AP) � A California state judge has ordered Starbucks Corp. to pay its California baristas more than $100 million in back tips and interest that the coffee chain paid to shift supervisors. The court also issued an injunction preventing Starbucks’ shift supervisors from sharing in future tips, saying state law prohibits managers and supervisors from sharing in employee gratuities. The lawsuit was filed in 2004 by Jou Chou, a former Starbucks barista in La Jolla, Calif., who complained shift supervisors were sharing in employee tips. In 2006, the lawsuit was certified as a class action. • WRONGFUL DEATH Slain woman’s daughter awarded $530M by jury RENO, NEV. (AP) � A Nevada state jury has awarded a $590 million to the young daughter of a woman killed by her estranged husband and to the slain woman’s estate. Darren Mack, once a wealthy pawn shop owner, is serving a life sentence for the June 2006 killing of his wife and the shooting of the couple’s divorce judge. The couple’s young daughter, Erika, will receive $530 million, and the rest will go to the estate of his slain wife.

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