BUSINESS BRIEFS
Auto-filter suits allege collusion to drive prices
Associated Press
NEW HAVEN, Conn. — Gas station owners, mechanics and car dealers have sued the nation's largest manufacturers of oil, air, transmission and fuel filters, accusing them of an almost decade-long conspiracy to drive up prices.
The extent of the damages that will be claimed has not been determined, but is expected to run into the hundreds of millions of dollars, said Hollis Salzman, attorney for some of the plaintiffs.
More than 30 federal lawsuits alleging collusion have been filed in recent weeks in Connecticut, Illinois, Tennessee and New Jersey, Salzman said. Defendants include Honeywell International, Champion Laboratories and Purolator Filters.
FORD WARNS OF FUTURE JOB CUTS
DETROIT — Ford Motor Co. managers told union officials yesterday that the company will have to further reduce its factory workforce in the coming months.
The slumping U.S. economy has cut U.S. auto sales by 8 percent during the first five months of the year, but it's been a double hit on Ford, General Motors Corp. and Chrysler LLC as consumers shun their high-profit pickup trucks and sport utility vehicles for more fuel-efficient models as they cope with $4 per gallon gasoline.
At the meeting, attended by about 300 executives, plant managers and union officials from across the U.S., Ford reiterated previous statements that it would make buyout and early retirement offers at targeted factories as it tries to further pare its payroll.
NEW PSORIASIS DRUG PROMISING
WASHINGTON — An experimental drug from a unit of Johnson & Johnson appears effective at treating a severe skin disease, though government regulators said yesterday it also could slightly increase cancer risks.
Centocor has asked the Food and Drug Administration to approve its biologic drug to treat psoriasis, which causes painful, red scales to grow on the skin. The FDA released its review of the drug, ustekinumab, ahead of a Tuesday meeting where outside experts will vote on whether it should be approved.
The agency said the injectable drug showed positive results in two comprehensive studies conducted by the company. However, scientists said the drug may require labeling to warn doctors of possible carcinogenic risks.
INVESTORS SEEK WEATHER CHANNEL
NEW YORK — An investor group led by NBC Universal moved closer to buying The Weather Channel yesterday after Time Warner Inc. dropped out of the bidding.
NBC Universal, a unit of General Electric Co., said it had entered exclusive negotiations to buy The Weather Channel from its owner, Landmark Communications Inc.
NBC is working on the bid together with the private equity investment firms The Blackstone Group and Bain Capital.
The bidding process for The Weather Channel had drawn earlier interest from other media companies including CBS Corp., but Time Warner and NBC were the only ones that made it to the final round.
RULE SUSPENDED FOR FORECLOSURES
WASHINGTON — The Bush administration is temporarily suspending an 8-year-old rule intended to deter property flippers as part of an effort to help speed the sale of foreclosed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold and receive government-backed loans.
The policy was put in place in 2003 to deter property "flipping" schemes, in which buyers are overcharged for foreclosures or other distressed properties.
But the surge in vacant properties resulting from borrowers who were unable to afford their mortgages has become a far more pressing concern.
