Kozlowski's Name Taken Down
Seton Hall University removed the name of L. Dennis Kozlowski, convicted felon and former chief executive of Tyco International, from a building on the school's campus in South Orange, N.J. The name was removed at Kozlowski's request, Seton Hall spokesman Thomas White said. The building has been renamed Jubilee Hall.
Kozlowski, a 1968 Seton Hall graduate, faces as many as 30 years in prison after being convicted of larceny for looting Tyco of more than $150 million and defrauding shareholders. His name also came off a rotunda in the library, White said.
Disney Revises Board Rules
Walt Disney Co. revised its rules to make it easier for shareholders to force directors off the board. Under new guidelines, directors will be required to resign if a majority of shareholders withhold their votes during a board election, Disney said. Under previous rules, directors needed just one vote in their favor to allow them to stay.
Disney, which in July patched up a feud with dissident investors Roy E. Disney and Stanley P. Gold, said it made the change to improve corporate governance.
Separately, Circuit City Stores amended its corporate governance guidelines, forcing directors who don't receive a majority of shares in voting to resign.
SEC Can Amend Scrushy Suit
A federal judge said the Securities and Exchange Commission can revamp its lawsuit against former HealthSouth Corp. chief Richard M. Scrushy and gave the government until Sept. 7 to file an amended complaint.
The SEC is seeking $785 million in civil fines and restitution to shareholders from Scrushy, who is accused in the lawsuit of leading what the government has described as a $2.7 billion fraud.
In June, a jury acquitted Scrushy on criminal charges in the accounting scheme. U.S. District Judge Inge P. Johnson is considering whether to let the Securities and Exchange Commission proceed with its lawsuit against Scrushy.
No Verdict in Texas Vioxx Case
A Texas jury hearing the nation's first Vioxx-related civil trial ended its first day of deliberation after seven hours and was scheduled to resume today.
The case against the drug's maker, Merck, has drawn national attention. About 20 million people took Vioxx from its launch in 1999 until its withdrawal from the market last year, as a pain reliever that cut the risk of stomach bleeding. Merck pulled the drug after a study showed it could double risk of heart attack or stroke if taken for 18 months or longer.
Plaintiff Carol Ernst alleges Vioxx triggered the death of her husband, Robert, 59, after he took the drug for eight months. Merck counters that it acted responsibly, disclosed research and believed Vioxx to be safe until the study last year prompted its withdrawal.
Assets Frozen in Reebok Probe
A U.S. regulator accused nine people of making $6 million on insider trading of Reebok International call options after the shoemaker announced it would be bought by Adidas.
The Securities and Exchange Commission also froze the brokerage accounts of three more people in the case filed in U.S. District Court in Manhattan. The agency first accused 63-year-old Sonja Anticevic, of Croatia, of using confidential information to make $2 million in "highly profitable and highly suspicious trades," according to the complaint.
Breakdown Delays Travelers
A U.S. Customs computer system used to process passengers arriving on international flights shut down last night, leaving long lines of impatient travelers, officials said.
At New York's airports, customs officials were processing travelers by hand, and there were long lines for international passengers waiting to clear customs at Miami International Airport, officials said. Zachary Mann, a spokesman for U.S. Customs and Border Protection, said the problem began at 6 p.m. in database systems in Virginia.
Spokesmen for the Federal Aviation Administration and the Transportation Security Administration said they had no immediate information about a problem.
Gap Inc., the owner of Gap, Banana Republic and Old Navy stores, said second-quarter profit rose 39 percent, to $272 million from $195 million in the comparable quarter a year earlier, the company said. Revenue was little changed at $3.72 billion.
Limited Brands, owner of Express, Victoria's Secret and other store chains, said second-quarter profit fell 24 percent, to $113.1 million, as it discounted clothing and had high interest expenses. Revenue for the three months ended July 30 rose 4 percent, to $2.29 billion.
Compiled from staff and news service reports.