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Global resolution: More than two dozen financial firms, including Merrill Lynch and Goldman Sachs, reached a $99 million tentative settlement with investors who bought securities of Global Crossing Ltd. The investment banks were targeted for their role as financial advisors to Global Crossing and its Asia Global Crossing unit, which issued debt and equity in 2000 and 2001.
No relief at the pumps: Expect gasoline prices to remain pretty much where they are until Labor Day. A report by the federal Energy Information Administration says that prices might improve by early September, when demand for gasoline starts to ease. The report pegs average gas prices nationwide at $3 a gallon, but of course we're paying considerably more. And the forecast assumes no unexpected shortfalls from hurricanes, wars, etc.
Free agent nation: L.A. County is the capital of "nonemployer employers" who rely strictly on temporary or contract workers. It's a way of not having to shell out benefits. The practice is hardly new, but Census Bureau numbers suggest that it's gaining popularity throughout Southern California.
Ralphs guilty plea: The unit of Kroger Co. formally pleads guilty to felony charges that it illegally hired locked-out employees during the supermarket strike. A U.S. District judge said he will either approve or reject the settlement in October. The settlement deal has the company paying a $20 million fine and establishing a $50 million restitution fund, most of which will go to Ralphs workers who were locked out.
Widow sues foam factory: The wrongful death suit is against Laguna Niguel-based Clark Foam Products, which abruptly closed in December. Among the claims: that workers warmed their meals in the same microwave that was used to heat a deadly chemical.
Security breach: Laptop thefts and a hack attack could put the personal information of hundreds of consumers at risk. No incidents of identity theft have been reported so far.
Foreclosures jump: For the second quarter, 27,606 property owners in California entered some stage of the foreclosure process across the state, the second most in the nation. Texas had the most activity with 39,690. While the numbers pale next to what happened in the early 1990s, the effect of higher interest rates is apparently taking its toll.
Tech deal: Thousand Oaks-based Rockwell Scientific, which makes infrared and visible light imaging sensors, is being bought by Teledyne Technologies for $167.5 million in cash.
Bullish on Disney: Walt Disney's third quarter numbers, to be released in a couple of weeks, should be helped out by good growth in its theme park sector, according to a report by Credit Suisse.
Hotel proposal: Developers want to build a 200-room hotel near Redondo Beach Marina, possibly at the site of Seaside Lagoon. If they're lucky, the project could be done by 2010, but there probably will be lots of community opposition.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.