BUSINESS BRIEFS
Lawyers in Vioxx case to get $1.55B
Associated Press
TRENTON, N.J. — The federal judge overseeing much of the massive litigation over withdrawn painkiller Vioxx yesterday capped fees for plaintiffs' attorneys at a relatively low 32 percent of the $4.85 billion settlement, saying he had to ensure fees were reasonable.
U.S. District Judge Elden Fallon wrote in an order that while the limit is below the usual 33.3 percent to 40 percent that lawyers collect when they take cases on a contingency, it won't result in "a paltry award" for the lawyers.
"Limiting attorneys' fees to 32 percent of the net recovery means that the attorneys in this case will receive more than $1.55 billion," Fallon wrote in a 21-page order.
The judge gave several reasons for the limit, noting the global settlement reached last November streamlined the work of the participating attorneys.
He wrote that he had an increased responsibility to keep fees reasonable because most of the claimants are elderly and frail after having "suffered life-threatening injuries" — or they are survivors of people who died of a heart attack or stroke — so they may not have been able to negotiate the most favorable contracts with attorneys.
Altogether, 871 law firms are involved in the litigation, which began about the time Merck & Co., the maker of Vioxx, pulled the painkiller from the market in September 2004 after its own research showed it doubled risk of heart attack and stroke.
OIL PRICE SPIKES AS GUSTAV NEARS
NEW YORK — Oil prices climbed for a third consecutive day yesterday as fears deepened that Tropical Storm Gustav could enter the Gulf of Mexico as a powerful hurricane and disrupt oil and natural gas production.
On its current trajectory, Gustav could also damage fuel refineries along the vulnerable Gulf Coast and push gasoline prices higher at the pump in time for Labor Day weekend.
Light, sweet crude for October delivery rose $1.88 to settle at $118.15 a barrel on the New York Mercantile Exchange after earlier spiking as high as $119.63.
U.S. THRIFTS LOSE $5.4B IN QUARTER
WASHINGTON — U.S. thrifts lost $5.4 billion in the second quarter and set aside a record amount to cover losses from bad mortgages and other loans.
Data from the U.S. Office of Thrift Supervision released yesterday show federally insured savings and loan institutions posted their second-largest quarterly loss ever in the April-June period, after the $8.8 billion loss in the fourth quarter of last year. Heavily focused on mortgage lending, thrifts have been stung by mounting home-loan defaults.
GLOBAL FINANCIAL STANDARD PUSHED
WASHINGTON — Federal regulators yesterday proposed a plan to allow public companies to begin using international accounting standards for reporting financial results in two years, and may require them to do so starting in 2014.
The push by the Securities and Exchange Commission toward acceptance of a single, global accounting standard has raised objections from some investor advocates and key lawmakers.
Supporters of the change say it makes sense in an era of increasingly globalized financial markets and would help lure foreign companies to U.S. markets.
CONOCOPHILLIPS SELLING STATIONS
NEW YORK — ConocoPhillips will sell the remainder of its gasoline stations in the United States, the company said yesterday, though Conoco, Phillips 66, and 76 will continue to operate under those familiar signs.
The 600 or so stations are being sold to Pacific Convenience & Fuel LLC, a subsidiary of PetroSun Fuel.
The deal is "in the ballpark" of $800 million, said Sam Hirbod, chairman and chief executive of PetroSun and Pacific Convenience.
