Bristol-Myers Defers Prosecution
Bristol-Myers Squibb agreed to pay $300 million to defer federal prosecution of a conspiracy charge stemming from an accounting scandal, the U.S. attorney's office in New Jersey said. Frederick S. Schiff, the firm's former chief financial officer, and Richard J. Lane, former executive vice president, were indicted on charges of conspiracy and securities fraud.
Bristol-Myers reached the deal under what is called a deferred prosecution. Under such arrangements, prosecution is delayed and will be dropped if certain terms are met. Bristol-Myers's prosecution will be dropped after two years if it meets the terms.
Ex-Enron Executive Testifies
Former Enron executive Rex T. Shelby, on trial for fraud, said he never conspired to mislead anyone about the status of company Internet technology in a 2000 analysts' conference where the technology was unveiled. Shelby is the first to testify of five former Enron Broadband Services executives on trial on charges of fraud and conspiracy.
No Verdict Yet for Scrushy
A federal jury deliberated for a 15th day without a verdict in the trial of fired HealthSouth chief executive Richard M. Scrushy, who is charged with leading a $2.7 billion earnings overstatement at the chain of rehabilitation and medical centers.
Jury Still Out in Tyco Trial
Jurors in the grand larceny trial of two former Tyco International executives -- former chief executive L. Dennis Kozlowski and former finance chief Mark H. Swartz -- finished a ninth day of deliberations without returning verdicts.
House Panel Approves Amtrak Cuts
Amtrak would have to end all of its cross-country routes, service between Chicago and New Orleans, and the Auto Train to Florida under big cuts in taxpayer subsidies approved by a House subcommittee. The proposal was part of a transportation bill that would reduce Amtrak's budget by more than half and limit federal subsidies to $30 per passenger per ride. The cuts, which require House and Senate approval, would not apply to most Amtrak service in the Northeast corridor and shorter corridor routes in the Midwest and California.
U.S. Approves Exxon Gas Terminal
Exxon Mobil won approval from the Federal Energy Regulatory Commission to build a $600 million shipping terminal along the Texas coast to receive liquefied natural gas tankers. The Vista del Sol terminal, near Corpus Christi, would have a daily capacity of 1.1 billion cubic feet, enough gas to heat about 4.5 million average U.S. homes.
Ethanol Increase in Senate Bill
The Senate approved an amendment to the $13 billion energy bill that would require oil companies to mix 8 billion gallons of ethanol a year into the nation's gasoline supply by 2012 to reduce reliance on foreign oil. U.S. facilities produced about 3.41 billion gallons of ethanol last year and have the capacity for roughly 3.9 billion to 4.7 billion, according to estimates from the Renewable Fuels Association.
Angelica, Union Reach Deal
Angelica Corp., the nation's largest hospital laundry service, and Unite Here, representing production workers at 23 of Angelica's 35 plants nationwide, announced they have reached a 10-year agreement to allow workers at 11 nonunion plants decide if they wish to be represented by the union as their exclusive bargaining representative. Angelica and the union also negotiated new, tentative collective bargaining agreements at seven unionized plants addressing wages, pensions, and health and safety issues.
Eastman Kodak completed its purchase of Creo, a maker of commercial-use digital-printing software and equipment, for $988 million, another step in its transition to a digital-imaging company. Separately, Kodak said it will soon stop making black-and-white photographic paper, which is rapidly being supplanted by digital-imaging systems. But Kodak said it will continue to make black-and-white film and chemicals for processing.
Bear Stearns said its second-quarter profit rose 5 percent, to $365.1 million, over the corresponding quarter last year. Revenue for the three months ended May 31 rose 9 percent, to $1.87 billion. The biggest boost for the company was in its institutional equities trading division, where business was up 59 percent.
Chiron, one of only two major makers of the nation's flu vaccine, said that because of manufacturing problems, it will deliver only 18 million to 26 million doses of vaccine for the 2005-06 season rather than its previously promised 25 million to 30 million doses.
Compiled from staff and news service reports.