Wednesday morning headlines

Market around the line: Continued sluggish trading on a slow, holiday-shortened week. Dow is up about 5 points.

Growth revised higher: Third-quarter gross domestic product - the measure of the nation's economy - grew at an annual rate of 2.6 percent, up slightly from the earlier 2.5 percent estimate. But the revision wasn't as high as economists had expected. (AP)

Ernst & Young sued: The Big Four accounting firm is accused of helping Lehman Brothers mislead investors about the investment bank's financial health. Suit was filed by NY Attorney General Andrew Cuomo. From DealBook:

The suit focuses on Ernst & Young's approval of a much-criticized accounting maneuver that shifted debt off the books before the close of financial quarters. The transactions involved "the surreptitious removal of tens of billions of dollars of securities from Lehman's balance sheet to create a false impression of Lehman's liquidity, thereby defrauding the investing public," the complaint said.

Apple, Calpers in scuffle: California's pension fund giant wants the company to changes the way it handles board elections. From the WSJ:

Apple's directors can currently hang on to their seats with a single "yes" vote in uncontested elections. The California Public Employees' Retirement System wants Apple and other U.S. companies it invests in to adopt rules requiring directors to win a majority of the vote, saying that will make board members more accountable to shareholders. Calpers said Apple resisted its request, so the pension fund submitted an advisory shareholder resolution to force the issue. The measure is set to come up for a vote at the iPhone maker's annual meeting in February.

Oil prices top $90 a barrel: Crude is approaching two-year highs. A weakening dollar and record demand in China are among the reasons. (DJ)

Texas firm buys Union Station: TPG Capital is getting the L.A. landmark as part of a portfolio of properties being sold by ProLogis, the world's largest warehouse company. Purchase price is about $505 million. (Bloomberg)

Zine gets dating advice from City Attorney: The L.A. councilman has been going out with a lobbyist for a company that's protesting an LAX contract given to another bidder. Question is whether he should vote on the deal. From the Daily Breeze:

Two local government watchdog groups said Zine should openly explain the nature of his relationship with Veronica Becerra, a lobbyist for Sylmar-based Tutor-Perini Corp., which lost its bid to build a new heating and cooling system at LAX. "For transparency reasons, Councilman Zine should disclose this relationship and he may decide to recuse himself from the final vote so that there is no appearance of bias in this matter," said Kathy Feng, executive director of California Common Cause, based in Los Angeles.

Activision sues Electronic Arts: It's an amended lawsuit that the Santa Monica-based company had filed against two prominent game developers who had been fired last March. It accuses EA of working through Creative Artists Agency to "hijack" the two developers. (LAT)

Activision cleans up on "Black Ops": The latest in the "Call of Duty" series has generated $1 billion in sales after 42 days on the market. That puts it in the "Avatar" league. (THR)