Citigroup Inc., the nation’s largest financial services company, will pay $2 billion to settle a class-action lawsuit over its role in helping Enron Corp. orchestrate a massive accounting fraud that led to the energy trader’s collapse. The settlement announced Friday marks the largest payout so far pledged to Enron investors, who claim they were bilked out of billions of dollars when the energy company went bankrupt in 2001. It also becomes one of the largest corporate settlements in history, but still below the $2.58 billion that New York-based Citigroup agreed to pay WorldCom Inc. investors last year.
Seattle Genetics upbeat about drug
Seattle Genetics Inc. of Bothell says its anti-cancer drug SGN-35 has shown impressive anti-tumor activity at well-tolerated doses in its pre-clinical tests. The company announced the data this week at an international cancer conference in Switzerland. The company plans to begin human tests of the drug, which is aimed for patients with Hodgkin’s disease and related cancers, by early next year.
Alaska Air reports more flight delays
Seattle-based Alaska Airlines’ chief executive said Wednesday that passengers have been seeing more flight delays and cancellations than in the past. “We’re not proud of it,” William Ayer told investors at a global transportation conference. “We’re apologizing to customers these days quite a lot.” One reason is because Alaska’s planes are being targeted for maintenance by flight crews more often, and maintenance is taking longer, the airline said.
Company recalls coffee makers
A recall has been announced for about 1.75 million home coffee makers, manufactured by Bunn-O-Matic Corp., because electrical failure can cause the plastic pour-in bowl and lid to melt or ignite, posing a burn hazard. The company has received at least 17 reports of the bowl or lid melting. Department and hardware stores nationwide sold the 10-cup Bunn coffee makers from February 2001 to August 2004. For details, call the company at 800-385-2652 or go to www.cpsc.gov.
Analyst admits insider trading
A former Standard &Poor’s credit analyst pleaded guilty Friday to insider trading charges over a scheme that prosecutors say netted him, his brother and a family friend more than $1 million. Rick Marano will be sentenced judge later this year. Marano told a federal judge Friday that he had told others about upcoming mergers.
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