LOCAL BRIEFING

CORPORATE GOVERNANCE

Retired Gen. Shelton Quits CACI Board

Retired Army Gen. Henry H. Shelton, chairman of the Joint Chiefs of Staff under President Bill Clinton, resigned from the board of CACI International, an Arlington government contractor, on May 7 after serving for a year, CACI said.

TRANSPORTATION

'Registered Traveler' Firm Readies for Takeoff

Flo, a Chantilly start-up, said it bought the technology it needs to operate its speedy airport security lanes for $5.25 million.

Launched last year, Flo has been slowly pushing its way into the "registered traveler" business, offering expedited airport security screening to passengers who voluntarily undergo a Transportation Security Administration background check. Passengers' personal data, plus iris and fingerprint scans, are put into smart cards, and at certain airports, this pre-screening allows them to skip security lines.

MERGERS & acquisitions

Sirius Might Reject XM Buyout Conditions

Sirius Satellite Radio might resist changes to its planned takeover of XM Satellite Radio Holdings of the District if regulators seek concessions that harm shareholders, said David Frear, Sirius's chief financial officer.

Potential rivals have asked the Federal Communications Commission to require the combined company to lease as much as 20 percent of its spectrum for a competing commercial radio service.

EARNINGS

MiddleBrook Posts Wider Loss

MiddleBrook Pharmaceuticals said its first-quarter loss widened slightly as a hefty charge for warrant expenses outweighed a sharp downturn in operating expenses.

The Germantown company recorded a loss of $13.8 million (26 cents per share), compared with a loss of $13.7 million (38 cents) in the comparable period a year earlier. MiddleBrook had about 16.9 million additional shares of common stock outstanding in the most recent period.

Revenue rose 35 percent, to $2.4 million, on higher sales of the anti-infection drug Keflex.

LEGAL

SEC Settles Ahold Insider-Trading Case

The Securities and Exchange Commission settled claims against a Florida man who will pay $1.3 million after being accused of insider trading in U.S. Foodservice shares before its sale to Royal Ahold.

John Turchetta, 72, reaped $553,000 from U.S. Foodservice shares he bought in February 2000 after learning that Ahold, an Amsterdam supermarket-chain owner, planned to buy the Columbia company, the SEC said in a civil suit filed at a federal court in Washington. Turchetta agreed to pay fines and interest, in addition to forfeiting his gains, the SEC said.

Turchetta didn't admit or deny any wrongdoing.

CSC to Pay $1.4 Million in Kickback Suit

Computer Sciences Corp., which manages networks for NASA and the Navy, agreed to pay $1.4 million to settle allegations that it solicited improper payments in connection with government contracts.

CSC, which is based in Falls Church, received the kickbacks from other companies with which it had business relationships, the Justice Department said. The civil case was first brought by whistle-blowers who will receive a share of the settlement, the government said.

EXECUTIVES

Sallie Mae Chief Given Stock, Options

Sallie Mae chief executive Albert L. Lord was awarded 100,000 shares of restricted stock and 530,000 stock options last week, according to a disclosure filed yesterday with the Securities and Exchange Commission.

The awards by the Reston student loan company could lay the foundation for a personal financial recovery by Lord; in December, a bank forced the liquidation of 96.7 percent of Lord's more than 1.3 million Sallie Mae shares.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.