Executive to Be Resentenced
A federal appeals court ordered a new sentence for Jamie Olis, the former Dynegy tax executive, saying his 24-year prison term for accounting fraud was miscalculated by the trial judge. Olis, who oversaw tax matters for Dynegy, was convicted on conspiracy, securities and mail fraud charges in 2003.
The resentencing decision by the New Orleans court relied on a Supreme Court ruling that federal sentencing guidelines are advisory, not mandatory.
RenaissanceRe's CEO Resigns
RenaissanceRe Holdings, a Bermuda-based reinsurer, said chief executive James N. Stanard resigned during a Securities and Exchange Commission investigation of the company's earnings restatement.
Neill A. Currie, an executive vice president who co-founded the company in 1993, replaced Stanard as chief executive, and W. James MacGinnitie took his post as non-executive chairman.
Investor Urges Knight Ridder Sale
Knight Ridder's largest shareholder, Florida money-management firm Private Capital Management, is urging the newspaper publisher to seek a buyer, citing the poor performance of its stock.
The Florida investment firm also owns substantial stakes in the New York Times Co., Gannett and Media General. PCM, a subsidiary of Legg Mason, said Knight Ridder's stock price is down 14 percent since July 19. Shares closed at $58, up 9 percent.
King Settles Medicaid Suit
King Pharmaceuticals, maker of drugs including Altace heart pills, agreed to pay $124 million to settle claims that it overcharged Medicaid programs, the United States said.
The company underpaid drug rebates owed the federal government and states participating in the Medicaid Rebate Program from 1994 through 2002, Patrick L. Meehan, the U.S. attorney in Philadelphia, said in a written statement.
The Justice Department is seeking to make sure drugmakers that supply Medicaid, the government health program for the poor, sell products at the same price they charge commercial customers.
If approved by U.S. Judge Marvin Katz in Philadelphia, "the agreements will fully resolve these matters," King said.
Manufacturing Slowed in October
The nation's manufacturing sector grew at a slower pace in October, boosted by rising orders but increasingly feeling the strain of a continuing rise in energy and raw materials prices.
The Institute for Supply Management said its manufacturing index fell to 59.1 percent last month, down from September's 59.4 percent. District-based ISM compiles its monthly economic reports from surveys of corporate purchasing executives.
SEC Alleges Trading Scheme
An Estonia investment bank and two employees made at least $7.8 million by infiltrating a Web site operated by Business Wire to trade on news before it was announced, according to a civil complaint filed by the Securities and Exchange Commission.
Lohmus Haavel & Viisemann and two of its employees, Oliver Peek and Kristjan Lepik, had been engaged in the scheme since January, according to the SEC's complaint. The SEC asked the court to permanently block the defendants from engaging in the trading scheme and to force them to pay back profits along with interest and penalties.
Business Wire President Cathy Tamraz said the SEC's charges were unfounded and that no one could gain illicit access to Business Wire's system.
Reliant Energy posted a loss of $270.3 million as a lawsuit settlement weighed heavily on its bottom line. In the comparable quarter a year earlier, the company earned $345 million. Revenue increased to $2.96 billion from $2.56 billion. Shares of the company fell more than 25 percent to a 52-week low of $9.51.
Procter & Gamble said its first-quarter profit rose 4 percent, to $2.03 billion. The company attributed the results to strong revenue growth despite the effects of hurricanes and rising energy and commodity costs. Sales rose 8 percent, to $14.79 billion.
Viacom, reporting its last quarterly results before splitting into two companies, said third-quarter profit rose 2 percent, to $735 million, on increased advertising sales at its MTV cable-television channels and a surge in box-office revenue. Sales rose 10 percent, to $5.94 billion.
TRW Automotive Holdings of Detroit said third-quarter profit dropped 23 percent to $10 million because of higher restructuring costs and increased commodity prices. The auto-parts supplier, which specializes in safety equipment, said sales rose 7 percent, to $2.92 billion.
Compiled from staff and news service reports.