Facebook hacked, social media company says


(Reuters) - Facebook said on Friday that it been the target of a series of attacks by an unidentified hacker group, but it had found no evidence that user data was compromised.


"Last month, Facebook security discovered that our systems had been targeted in a sophisticated attack," the company said in a blog post. "The attack occurred when a handful of employees visited a mobile developer website that was compromised."


The social network, which says it has more than one billion active users worldwide, added: "Facebook was not alone in this attack. It is clear that others were attacked and infiltrated recently as well."


Facebook's announcement follows recent cyber attacks on other prominent websites. Twitter, the microblogging social network, said this month that it had been hacked, and that approximately 250,000 user accounts were potentially compromised, with attackers gaining access to information including user names and email addresses.


Newspaper websites including The New York Times, The Washington Post, and The Wall Street Journal have also been infiltrated, according to the news organizations. Those attacks were attributed by the news organizations to Chinese hackers targeting their coverage of China.


(Reporting By Tim Reid; Editing by Gary Hill)



Read More..

No. 2 Duke falls to Maryland 83-81


COLLEGE PARK, Md. (AP) — As the final horn sounded and Maryland fans rushed the court to celebrate a rare victory over its bitter rival, weary Duke had just enough energy left to escape the mayhem for the safety of its locker room.


Seth Allen broke a tie by making two free throws with 2.8 seconds left, and the Terrapins stunned the second-ranked Blue Devils 83-81 Saturday night to end a six-game skid in the series.


Coming off a five-day break, Maryland notched its most significant win of the season at the expense of a tired Duke playing its fourth game in 10 days.


The Blue Devils were worn out, and it showed.


Duke was outrebounded 40-20, never led in the second half and got only four points and three rebounds from 6-foot-10 senior center Mason Plumlee.


"This has been an exhausting schedule for our team," coach Mike Krzyzewski said. "We're playing on fumes and I think you could tell that with Mason. I thought he looked exhausted the whole game. He's been great. Obviously not good tonight."


The Terrapins (18-7, 6-6 Atlantic Coast Conference) did not trail after halftime but never could pull away.


Duke (22-3, 9-3) was down by 10 with 3:39 left but pulled even when Rasheed Sulaimon made three foul shots with 16.7 seconds to go. Quinn Cook then fouled Allen as the freshman guard drove through the lane, and Allen made both shots.


After a Duke timeout, Cook's desperation 30-footer bounced off the back rim. Chaos ensued as the fans immediately rushed the court.


"I thought it was in when I got it off," Cook said of his final attempt.


Alex Len had 19 points and nine rebounds for Maryland, and Allen scored 16. The Terrapins had lost 12 of 13 against Duke, including a 20-point embarrassment last month.


"I told our players before the game, there's a lot of pride in Maryland basketball," coach Mark Turgeon said. "There's also a lot of passion about Maryland basketball. We talked about playing with those two things for us and for our fans. Our fans were just tremendous."


From the end of the Star Spangled Banner to the final buzzer, the crowd never stopped shouting for the Terps, who rewarded their fans with a memorable victory in a rivalry that appears destined to end when Maryland leaves for the Big Ten in 2014.


"I have a great deal of respect for Maryland," Krzyzewski said. "If it was such a rivalry they'd still be in the ACC. Obviously they don't think it's that important or else they wouldn't be in the Big Ten."


Oh, but it's very important to Maryland and its coach.


"This win was for my family and the fans," Turgeon said. "I know what this win means for our fan base, and I really wanted to beat Duke."


The Blue Devils had their six-game winning streak end. Seth Curry scored 25 and Cook added 18. But Plumlee was completely outplayed by the 7-1 Len, who went 6 for 8 from the field and 7 for 8 at the foul line.


"There's so much pressure for Mason to play outstanding," Krzyzewski said. "That wears on you as the season goes on. He just didn't look fresh tonight."


Said Plumlee: "I didn't show up to play today and I let my teammates down. It's all on me."


Maryland committed a whopping 26 turnovers, eight by Allen. The Terrapins shot an impressive 60 percent from the floor and finished with a 40-20 rebounding advantage.


Maryland played without reserve guard Pe'Shon Howard, who was suspended for violating team rules. Despite being demoted from his starting role last month, Howard still leads the Terrapins in assists.


Maryland led 66-63 before Allen scored on a drive. Dez Wells then stole the ball from Cook and went in for a dunk for a seven-point lead with 5:20 left. After the Blue Devils closed to 71-63, James Padgett made a layup for Maryland and Wells made two foul shots for a 10-point cushion.


The crowd increased its volume with every subsequent basket by the Terrapins, whose previous win over Duke came in March 2010, when Greivis Vasquez celebrated Senior Night with a 20-point performance.


In this one, it was 80-72 before Curry made two straight 3-pointers to bring Duke to 80-78 with just under a minute left. After Wells was called for a charge, Curry had a 15-footer bounce in and out of the basket.


It was that kind of night for the Blue Devils.


This score was 39 all before Allen hit a 3-pointer to spark a 10-2 run that included five points from freshman Shaquille Cleare. It was 53-43 before Curry bagged a 3-pointer, Alex Murphy made a layup and Curry drove the lane following Maryland's third turnover in a 60-second span.


That cut the gap to three points, and seconds after a 3-pointer by Cook got the Blue Devils to 55-53.


After the Terrapins went up by six, they committed turnovers on three straight possessions. That enabled Duke to close to 59-57 on a dunk by Murphy, but four straight free throws by Len gave Maryland a 64-59 advantage with 7:20 remaining.


The first half featured two ties, 10 lead changes and ended with the Terrapins up 35-34. Curry (14 points) was one of only four Duke players to score before halftime.


Read More..

UN warns risk of hepatitis E in S. Sudan grows


GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.


U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.


Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.


He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.


Read More..

TV show with Pistorius' dead girlfriend airs


JOHANNESBURG (AP) — Reeva Steenkamp's last wish for her family before she was shot dead at boyfriend Oscar Pistorius' home was for them to watch her in a reality TV show that went on air in South Africa on Saturday night, two days after her killing.


Sharon Steenkamp, Reeva's cousin, told The Associated Press that the model and law graduate was "proud of being in the show" and reminded them in their last conversation to make sure that they watched it.


The South African Broadcasting Corp. aired the "Tropika Island of Treasure" program, showing the late Steenkamp — the victim of a Valentine's Day shooting at the home of Pistorius, the Olympic star and double-amputee athlete. She is laughing and smiling, and blowing a kiss toward the camera in Jamaica when it was filmed last year.


South Africans also saw her swimming in the ocean and watching people jump off a cliff and into the sea, shaking her head as they leaped.


SABC said it was dedicated to Steenkamp and displayed the words "Reeva Steenkamp 19 August 1983 - 14 February 2013" between images of a rose and a candle in a short tribute before the show aired. She was also seen blowing the kiss as she sat on a Jamaican beach and her name again appeared on screen with the years of her birth and death.


The country was rocked Thursday when news broke of Steenkamp's shooting death at the upscale house of the star athlete. Pistorius was arrested and charged with her murder and remains in custody in a police station. His family has strongly denied prosecutors' claims that he murdered her.


Steenkamp's family said earlier Saturday that it had not been contacted by either the SABC — South Africa's national broadcaster — or the show's producers for permission to air it, but were not opposed to it because Reeva wanted everyone to see it.


"Her last words to us personally were that she wants us to watch it," Sharon Steenkamp said, hours before the program was shown.


SABC aired the reality show on its main channel, which prominently featured Steenkamp.


The show's executive producer, Samantha Moon, said going ahead with the show "is what she would have wanted."


Steenkamp, a 29-year-old blonde model who graduated from law school, died after suffering four gunshot wounds, police said. Officers recovered a 9-mm pistol from Pistorius' house and quickly charged the Olympian with murder for Steenkamp's killing.


Pistorius will appear in court Tuesday for a bail hearing, something police have said they oppose. Prosecutors also say they will pursue upgraded charges of premeditated murder against him, which means the disabled icon and double-amputee runner could face a life sentence.


Steenkamp was known in South Africa for appearing in commercials and as a bikini-clad model in men's magazines.


Pistorius and Steenkamp met Nov. 4 at the Kyalami race track, which sits between Pretoria and Johannesburg and has been used for Grand Prix and Formula 1 races, said Justin Divaris, a mutual friend.


Divaris said his own girlfriend was a close friend to Steenkamp. Pistorius and Steenkamp immediately hit it off and decided in the spur of the moment to attend a sports award ceremony together the same night, Divaris said. At the time, Pistorius had been dating another woman and his personal life was constant fodder for gossip pages.


Later, however, problems may have started, as police have said there were previous domestic altercations at Pretorius' home in a gated community near South Africa's capital, Pretoria.


A Steenkamp family spokesman said late Friday that relatives still faced a long struggle to come to terms with her killing.


"I can't see the family getting over this shortly," said Reeva's uncle, Mike Steenkamp. "It's going to be a long, long-term reconciliation with a lot of things and issues."


Family members plan for a memorial service Tuesday for the model in Port Elizabeth, her hometown on South Africa's southern coast. Pistorius has a court appearance scheduled in Pretoria on the same day for his lawyers to argue that he can be released on bail.


Portions released earlier Saturday of the reality show, sponsored by a milk fruit drink, feature Steenkamp laughing and smiling on the beaches of Jamaica. Another portion shows her swimming with two dolphins, which tap her on the cheek with their snouts.


"I think the way that you go out, not just your journey in life, but the way that you go out and the way you make your exit is so important," Steenkamp says in the video. "You either made an impact in a positive or a negative way, but just maintain integrity and maintain class and just remain true to yourself.


"I'm going to miss you all so much and I love you very, very much."


___


Associated Press writer Jon Gambrell contributed to this report.


___


Gerald Imray can be reached at http://twitter.com/GeraldImrayAP


Read More..

Daley turns focus toward Gary









Richard M. Daley has kept a low profile since leaving office in 2011.


That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.


"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.





Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.


With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.


The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.


Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.


Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.


Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.


This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.


"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"


Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.


Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.


Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.


Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"


Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.


"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.


The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.


"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."


Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.





Read More..

1 dead, 3 wounded in 90 minutes Friday night








Chicago police were flagged down by a man on the street as they responded to a shots fired call Friday night and found a woman lying on the ground, bleeding from a gunshot wound to her upper body.


She and three others were wounded between about 5:55 p.m. and 7:20 p.m. on the South and West sides, according to Chicago police.

The woman, whose age wasn't available, was shot in the 1100 block of North Pulaski Road, just a bit south of Division Street in the West Humboldt Park neighborhood about 7:05 p.m. She was taken to Mount Sinai Hospital in critical condition and was pronounced dead there.

About 7:20 p.m., two people were shot in the 7800 block of South Merrill Avenue in the South Shore neighborhood. One was shot in the knee and the other suffered a graze wound. Police didn't have any other details about that incident.

About 5:55 p.m., a man sitting in his car near his home was shot in the leg by one of three guys who approached him on foot, police said. The 29-year-old was taken to Advocate Christ Medical Center, where his condition had stabilized.

Earlier Friday, a 17-year-old was shot in the hand in the 7800 block of South Morgan Street in the Gresham neighborhood.

Check back for more information.

pnickeas@tribune.com
Twitter: @peternickeas

lford@tribune.com
Twitter: @ltaford






Read More..

Facebook says it was a target of sophisticated hacking


SAN FRANCISCO/LOS ANGELES (Reuters) - Facebook Inc said on Friday hackers had infiltrated some of its employees' laptops in recent weeks, making the world's No.1 social network the latest victim of a wave of cyber attacks, many of which have been traced to China.


It said none of its users' data was compromised in the attack, which occurred after a handful of employees visited a website last month that infected their machines with so-called malware, according to a post on Facebook's official blog released just before the three-day U.S. President's Day weekend.


"As soon as we discovered the presence of the malware, we remediated all infected machines, informed law enforcement, and began a significant investigation that continues to this day," Facebook said.


It was not immediately clear why Facebook waited until now to announce the incident. Facebook declined to comment on the reason or the origin of the attack.


A security expert at another company with knowledge of the matter said he was told the Facebook attack appeared to have originated in China.


The attack on Facebook, which says it has more than 1 billion members, underscores the growing threat of cyber attacks aimed at a broad variety of targets.


Twitter, the micro blogging social network, said earlier this month it had been hacked and that about 250,000 user accounts were potentially compromised, with attackers gaining access to information, including user names and email addresses.


Newspaper websites, including those of The New York Times, The Washington Post and The Wall Street Journal, have also been infiltrated. Those attacks were attributed by the news organizations to Chinese hackers targeting coverage of China.


Earlier this week, U.S. President Barack Obama issued an executive order seeking better protection of the country's critical infrastructure from cyber attacks.


"INFILTRATED"


Facebook noted in its blog post that it was not alone in the attack, and that "others were attacked and infiltrated recently as well," although it did not specify who.


The Federal Bureau of Investigation declined to comment, while the U.S. Department of Homeland Security did not immediately return a call seeking comment.


In its blog post, Facebook described the attack as a "zero-day" attack, considered to be among the most sophisticated and dangerous types of computer hacks. Zero-day attacks, which are rarely discovered or disclosed by their targets, are costly to launch and often suggest government involvement.


While Facebook said no user data was compromised, the incident could raise consumer concerns about privacy and the vulnerability of personal information stored within the social network.


Facebook has made several privacy missteps in the past because of the way it handled user data. It settled a privacy investigation with federal regulators in 2011.


According to one person familiar with the situation, the type of information on the employee laptops that were compromised included "snippets" of Facebook source code and employee emails.


Facebook said it spotted a suspicious file and traced it back to an employee's laptop. After conducting a forensic examination of the laptop, Facebook said it identified a malicious file, then searched company-wide and identified "several other compromised employee laptops".


Another person briefed on the matter said the first Facebook employee had been infected via a website where coding strategies were discussed.


The company also said it identified a previously unseen attempt to bypass its built-in cyber defenses and that new protections were added on February 1.


Because the attack used a third-party website, it might have been an early-stage attempt to penetrate as many companies as possible.


If they followed established patterns, the attackers would learn about the people and computer networks at all the infected companies. They could then use that data in more targeted attacks to steal source code and other intellectual property.


Another fear for such a popular website is that hackers could use central controls to infect wide swathes of its user base at once.


In January 2010, Google reported it had been penetrated via a "zero-day" flaw in an older version of the Internet Explorer Web browser. The attackers were seeking source code and were also interested in Chinese dissidents. Google reduced its operations in China as a result.


(Additional reporting by Alexei Oreskovic in San Francisco and Tim Reid in Los Angeles; Editing by Paul Tait)



Read More..

Different looks for Heat, Lakers at All-Star break


HOUSTON (AP) — If Kobe Bryant's season seems tough, imagine what Dwyane Wade went through five years ago.


"I came to All-Star weekend one year, I think we had won nine games. Seriously," Wade said Friday. "I was looking for my 10th win at the All-Star game."


Things sure have changed for his Miami Heat.


Back where they first teamed up as All-Stars in 2006, Wade, LeBron James and Chris Bosh return as NBA champions who will start together for the Eastern Conference on Sunday night.


Now the misery belongs to Bryant, Dwight Howard and the Los Angeles Lakers, whose season has been so disappointing that Bryant was asked Friday if the All-Star weekend was a "retreat" for him.


"I don't know if it's a retreat, it's just more of an opportunity to get some rest, regroup, put the first half of the season behind us and move on," he said.


As Wade knows, the All-Star break can be just that — a break — from a forgettable season.


He arrived for the 2008 All-Star game with a 9-43 record after the Heat lost on Valentine's Day to the Chicago Bulls, on their way to a 15-win debacle just two years after they won the NBA title.


"I put all that aside though, and I came and I enjoyed the weekend, and when I went back to Miami, it was like, 'Oh my God, we're back in it,'" Wade said. "But All-Star weekend, you just enjoy being an All-Star. You enjoy being around the guys. You can kind of forget about that a little bit, unless you have the cameras and the microphones in front of you asking you questions about it, but besides that you try to enjoy it."


This time, the Heat celebrated Valentine's Day in Oklahoma City with a 110-100 victory over the Thunder, the team they beat in five games last summer for the title. They have won seven in a row, James is playing arguably the best basketball of his career, and they can relax and reminisce as they return to Houston.


"It's really indescribable," Bosh said, "just to not only win a championship with great guys, be in a great locker room, and just to have fun doing it, but just to be an All-Star every year, play with great teammates, I mean to play in front of a lot people in arenas every night. I don't take those things for granted."


James, Wade and Bosh were in their third NBA seasons when they were chosen for the 2006 game, which turned out like so many Heat games these days. James was voted MVP after scoring 29 points and leading a huge East comeback that was wrapped up when Wade made the go-ahead basket with 16 seconds left.


Think about that: James was already the best player that night, and he was nowhere near the player he is today.


"I'm a better player. At that point in time, I wasn't a complete basketball player. I couldn't shoot as well as I can now, I never posted up back then," James said. "More games, more playoff games, more knowledge. You continue to learn each and every day, it makes you a better player. That's what you want, to become a better player. That's what I want. I want to be the greatest of all-time. I try to do whatever it takes to get me in that position.


"Seven years, I've tried to improve each and every year."


He's gotten to the point now where he ran off an NBA-record six straight games with at least 30 points and 60 percent shooting from the field, and seems to be distancing himself from anyone else that can take the MVP award he won last year for the third time in four years.


"He's doing well," Bosh said in a Texas-sized understatement. "That's the best way to put it."


Bosh was chosen as a starter Friday by Heat coach Erik Spoelstra, who will lead the East. He replaces Boston guard Rajon Rondo, who pulled out with a torn ACL.


Bryant and Howard are still here, away from a Los Angeles season that's been anything but a Hollywood story.


Considered a title contender after acquiring Howard and Steve Nash in the summer, the Lakers fell to 25-29 after they were blown out Wednesday by the rival Clippers, who opened a 13-game lead over them in the Pacific Division standings.


Smiling as he sat with his daughter, Natalia, Bryant laughed that he wished the All-Star break was a chance for the Lakers to "hit the reset button" on what he's said has been a most difficult season.


"Hopefully there's an easy button like in the commercial when we come back in the second half of the season and things are a little easier for us," he said.


Howard has battled injuries to his back and shoulder and has been nothing like the player who has been the NBA's dominant big man in recent years. He said at times he hasn't been having fun and has tried to ignore all the bad news around the team.


"You just try to stay away from the tube and do as much as I can to rehab my back and my shoulder and my mind, and really just get away from everything when I'm not playing basketball," he said.


If he's looking for a chance to enjoy himself this season, it may get no better than the next few days.


"It's a great weekend, it's an unbelievable weekend for the fans to be able to put all their favorite players together in one venue," James said. "We have a great time with it."


___


Follow Brian Mahoney on Twitter: http://www.twitter.com/Briancmahoney


Read More..

Judge sets May trial date for Kardashian divorce


LOS ANGELES (AP) — Kim Kardashian has a due date for her baby and now a trial date for her divorce from NBA player Kris Humphries.


A judge on Friday set a May 6 trial for the reality TV star who wants to end her marriage before July, when her child with Kanye West is due.


Kardashian filed for divorce on Oct. 31, 2011, after she and Humphries had been married just 72 days. Their lavish, star-studded nuptials were recorded and broadcast by E! Entertainment Television.


The trial is expected to last three to five days and could reveal details about Kardashian's reality show empire, which includes "Keeping Up With the Kardashians" and several spinoffs.


Two judges determined Friday that Humphries' lawyers had adequate time to prepare for the trial.


Humphries wants the marriage annulled based on his claim that Kardashian only married him for the sake of her show.


She denies that allegation and says the case should be resolved through what would be her second divorce.


Humphries' attorney Marshall Waller asked for a delay until basketball season is over.


But Superior Court Judge Scott Gordon refused, saying firefighters, police officers, truck drivers and others have to miss work for trials, and Humphries must do the same if necessary.


Waller filed paperwork Thursday to withdraw from the case but didn't mention that development in court and refused to answer any questions about the document on Friday.


Waller said he was still hoping to obtain and review 13,000 hours of footage from Kardashian's reality shows to try to prove the fraud claim but noted he does not yet have an agreement to receive the footage.


Kardashian's lawyer said her client was ready for trial.


"Let's get this case dispensed with," attorney Laura Wasser said.


Humphries has provided a deposition in the case, as have West and Kardashian family matriarch Kris Jenner.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP


Read More..

Illinois corporate tax credits swelled to $161 million 2011









When lawmakers raised taxes on Illinois residents and businesses, they also increased corporate income tax breaks for a select group of companies.


In 2011, businesses were eligible to claim about $161 million in tax credits — double from the prior year — mostly because of the increase to 5 percent from 3 percent in the state's personal income tax rate, which is a factor in determining the value of the incentives. The boost marked the largest increase in the Economic Development for a Growing Economy tax credit program, the state's main economic development program, since its creation in 1999.


Deere & Co., Boeing Co. and Caterpillar Inc., whose leader severely criticized lawmakers for tax hikes, were among dozens of companies that received more robust tax breaks. Some companies' deals also allowed them to be in line to receive tax incentives even while laying off workers or lowering wages.








The EDGE program allows a business to claim a credit against its corporate income tax liability if it agrees to create and/or retain jobs and make an investment in the state of at least $1 million, for companies with fewer than 100 workers, and at least $5 million for larger companies.


Once accepted into the program, which typically lasts 10 years, a company applies on an annual basis for a tax credit certificate, similar to a voucher, which it can claim when it files its taxes.


Marcelyn Love, a spokeswoman with the Department of Commerce and Economic Opportunity, which administers the program, said that under the tax credit program companies make investments and employ workers, practices that otherwise would not have occurred without the credits.


"Both the private investment and the increased employment significantly increase tax revenue collection for the state in excess of the credits given," Love said in an email. Far from adding to the tax burden, she added, these incentives actually generate revenue for the state. "Further, most of these tax credits pay for themselves within two years."


The certificates are the only way to gauge the potential cost and scope of the program, because tax filings are not public. The Tribune obtained the 2011 certificates data, the latest year available, under the state's Freedom of Information Act. Companies have as many as five years to redeem a certificate.


After a deal is finalized, a company has two years to meet its side of the bargain and begin applying for certificates. Thus, the increase in the total value of 2011 tax breaks is also the result of companies receiving certificates for the first time. For example, Ford Motor Co. began applying for its certificates in 2010 from a 2007 deal.


During Gov. Pat Quinn's administration, companies have received increasingly larger deals. Many have been for retaining jobs, according to a Tribune analysis. In 2011, Sears Holdings Corp. was offered a tax credit package worth $150 million over 10 years to keep its headquarters in the state and retain at least 4,250 full-time jobs. The company, which after the deal was announced revealed that it was closing 125 stores nationwide, has yet to apply for a certificate. Five of those stores were in Illinois. State officials have said that during a recession, when few jobs are created, it's important to focus on retaining workers.


Chris Brathwaite, a Sears spokesman, said the company's employment level at its headquarters is higher than the more than 6,000 jobs it had when the deal was approved, but he declined to provide figures.


In general, the value of a certificate equals the number of jobs created and/or retained, multiplied by wages tied to those jobs and the state's personal income tax rate.


That means companies that didn't add one worker and kept wages at the 2010 rate received a 67 percent boost to their 2011 corporate income tax break. Just like individuals, corporations also registered a tax rate increase in 2011. Lawmakers set the new corporate income tax rate at 7 percent, up from 4.8 percent. The increases in breaks partially offset that hike.


The formula under which companies become eligible to receive tax breaks was aimed at encouraging job creation and increasing employee wages. Still, the 2011 data revealed that some companies made deals to allow job cuts and still qualify for incentives, a practice known as "normal attrition."


A case in point is Motorola Mobility. For the past two years, Motorola Mobility has qualified for certificates worth a total of $22.6 million while slowly chipping away at its workforce. Late last year, the smartphone-maker, which was acquired by Google Inc. in May, announced it was laying off 20 percent of its global workforce. Locally, the company cut hundreds of workers, bringing its Illinois head count to about 2,300, a figure that would make it ineligible for a 2013 certificate unless it boosts its workforce before the end of the year.


The Department of Commerce and Economic Opportunity said the EDGE program played a crucial role in keeping Motorola Mobility in Illinois after it was acquired by Google. Its presence, the agency said, is drawing more technology investment and jobs to the state.


A state lawmaker wants the state to end the wiggle room practice, cap at $100 million the annual amount of tax breaks awarded and remove the investment bar so more small and medium-size businesses can qualify for breaks.


"Large multinationals are getting all the breaks," said Rep. Jack Franks, D-Marengo, adding that his focus is to modernize the program and increase accountability.


Franks' House Bill 1336 would also limit the length of the tax breaks to five years and require that companies pay workers at least the median salary of their occupation as determined by federal data. The bill also eliminates the provision requiring companies to make a capital investment in the state of at least $1 million or $5 million, depending on their size. And it creates a nine-member board to oversee the deals, with members appointed by the governor and approved by the state Senate.


Franks said that the Department of Commerce and Economic Opportunity shouldn't promote the program while also negotiating deals with companies, because it creates a conflict of interest.





Read More..

Exhausted passengers disembark stricken ship








MOBILE, Alabama—





A crippled cruise ship that lost power for more than four days in the Gulf of Mexico was pulled into a port in Mobile, Alabama, late on Thursday as passengers cheered the end of a "hellish" voyage marked by overflowing toilets and stinking cabins.

Tugboats pulled the Carnival Triumph into port in a drama that played out live on U.S. cable news stations, creating another public relations nightmare for cruise giant Carnival Corp. Last year, its Costa Concordia luxury ship grounded off the coast of Italy, killing 32 people.


Exhausted passengers lined the ship's decks, waving towels and flashlights and cheering as it pulled into dock, while hundreds of people watched from the shore.

Carnival officials said it could take up to five hours for the more than 4,200 people on board to disembark the ship, which has only one working elevator.

Once on solid ground, many passengers still had a lengthy journey ahead. More than 100 buses were lined up waiting to carry passengers on a seven-hour bus ride to Galveston, Texas, while others had elected to stay overnight in hotels in Mobile before flying home, Carnival said.

An engine fire on Sunday knocked out power and plumbing across most of the 893-foot vessel and left it adrift in the Gulf of Mexico. The ship, which went into service in 1999, was on a four-day cruise and on its way back from a stop in Cozumel, Mexico.

Over the last four days, passengers described an overpowering stench on parts of the ship and complained to relatives and media by cellphone that toilets and drainpipes overflowed, soaking many cabins and interior passages in sewage and turning the vessel into what some have described as a giant Petri dish.

"The thing I'm looking forward to most is having a working toilet and not having to breathe in the smell of fecal matter," said Jacob Combs, an Austin, Texas-based sales executive with a healthcare and hospice company.

Combs, 30, who said he had been traveling with friends and family on the Triumph, had nothing but praise for its crew members, saying they had gone through "hell" cleaning up after some of the passengers on the sea cruise.

"Just imagine the filth," Combs told Reuters. "People were doing crazy things and going to the bathroom in sinks and showers. It was inhuman. The stewards would go in and clean it all up. They were constantly cleaning," he said.

Officials greeted passengers with warm food and blankets and cell phones. Carnival Cruise Lines Chief Executive Gerry Cahill told reporters he planned to board the ship and personally apologize to passengers for their ordeal.

"I know the conditions on board were very poor," he said. "I know it was difficult. I want to apologize for subjecting our guests to that," he said.

"We pride ourselves with providing our guests with a great vacation experience and clearly we failed in this particular case."

Operated by Carnival Cruise Lines, the flagship brand of Carnival Corp, the ship left Galveston a week ago carrying 3,143 passengers and 1,086 crew. It was supposed to return there on Monday.

A Coast Guard cutter escorted the Triumph on its long voyage into port since Monday, and a Coast Guard helicopter ferried about 3,000 lbs of equipment including a generator to the stricken ship late on Wednesday.

Earlier in the week, some passengers reported on the poor conditions on the Triumph. They said people were getting sick and passengers had been told to use plastic "biohazard" bags as makeshift toilets.

Smoke from the engine fire was so thick that passengers on the lower decks in the rear of the ship had to be permanently evacuated and slept the rest of the voyage on the decks under sheets, passengers said.

'VERY CHALLENGING CIRCUMSTANCES'

Cahill has issued several apologies and Carnival, the world's largest cruise company, says passengers will receive a full credit for the cruise plus transportation expenses, a future cruise credit equal to the amount paid for this voyage, plus a payment of $500 a person to help compensate for the "very challenging circumstances" aboard the ship.

Mary Poret, who spoke to her 12-year-old daughter aboard the Triumph on Monday, rejected Cahill's apology in comments to CNN on Thursday, as she waited anxiously in Mobile with a friend for the Triumph's arrival.

"Seeing urine and feces sloshing in the halls, sleeping on the floor, nothing to eat, people fighting over food, $500? What's the emotional cost? You can't put money on that," Poret said.

Some passengers said conditions onboard improved on Thursday after the generator was delivered to the ship, providing power for a grill to cook hot food.

Carnival Corp Chairman and CEO Micky Arison faced criticism in January 2012 for failing to travel to Italy and take personal charge of the Costa Concordia crisis after the luxury cruise ship operated by Carnival's Costa Cruises brand grounded on rocks off the Tuscan island of Giglio. The tragedy unleashed numerous lawsuits against his company.

The cruise ship mogul has taken a low-key approach to the Triumph situation as well, even as it grabbed a growing share of the U.S. media spotlight. His only known public appearance since Sunday was courtside on Tuesday at a game played by his Miami Heat championship professional basketball team.

"I think they really are trying to do the right thing, but I don't think they have been able to communicate it effectively," said Marcia Horowitz, an executive who handles crisis management at Rubenstein Associates, a New York-based public relations firm.

"Most of all, you really need a face for Carnival," she added. "You can do all the right things. But unless you communicate it effectively, it will not see the light of day."

Carnival Corp shares closed down 11 cents at $37.35 in trading on Thursday on the New York Stock Exchange. The shares closed down 4 percent at $37.46 on Wednesday after the company said voyage disruptions and repair costs related to Carnival Triumph could shave up to 10 cents a share off its second-half earnings.

The Triumph is a Bahamian-flagged vessel and the Bahamas Maritime Authority will be the primary agency investigating the cause of its engine room fire.

Earlier this month, Carnival repaired an electrical issue on one of the Triumph's alternators. The company said there was no evidence of any connection between the repair and the fire.

For all the passengers' grievances, they will likely find it difficult to sue the cruise operator for any damages, legal sources said. Over the years, the cruise industry has put in place a legal structure that shields operators from big-money lawsuits.

(Additional reporting by David Adams and Kevin Gray in Miami, Writing by Tom Brown; Editing by Peter Cooney and Lisa Shumaker)






Read More..

Big hedge funds fueled fourth-quarter dive in Apple shares


BOSTON (Reuters) - Some of the biggest hedge funds that helped make Apple Inc a stock market darling lost faith and dumped their stakes in the fourth quarter, fueling the massive drop in the iPhone maker's share price.


Noted stock pickers including Leon Cooperman, Eric Mindich and Thomas Steyer unloaded billions of dollars of Apple shares between September 30 and December 31, according to disclosure documents filed on Thursday.


Shares of Apple rose to an all-time high of $705.07 on September 21 but ended 2012 down more than 24 percent from that peak as investors worried about increasing competition and declining profit margins.


The shares also may have dropped because their price rose too much, too fast.


"The stock just went up so much in early 2012 and then was coming back to earth," said Justin Walters, co-founder of Wall Street research firm Bespoke Investment Group. "Three months from now, we'll be seeing a lot of the people who sold starting to pick it up again."


The fourth-quarter sellers avoided even deeper losses. Apple's shares have lost 12 percent so far this year. The shares lost 42 cents, or 0.1 percent, to close at $466.59 on the Nasdaq on Thursday.


Cooperman's Omega Advisors fund dumped its entire stake of more than 266,000 shares during the fourth quarter, according to its required quarterly disclosure form filed with the Securities and Exchange Commission.


Mindich, named the youngest partner ever at Goldman Sachs before starting his Eton Park Capital Management fund in 2004, got out of Apple entirely in the fourth quarter after making big sales in the third quarter as well. Eton owned 600,000 shares at the beginning of 2012.


Farallon Capital, the hedge fund founded by Steyer, sold 137,000 shares. Steyer, who once worked on the Goldman Sachs risk arbitrage desk under Robert Rubin, stepped down at the end of the year from the firm, which he founded in 1986. Rubin served as U.S. Treasury secretary from 1995 to 1999.


Jana Partners, an activist fund run by Barry Rosenstein, also unloaded its entire Apple stake of more than 143,000 shares. Other notable sellers included Third Point LLC, which had owned 710,000 shares, Viking Global Investors, which dumped 1.1 million shares and Lone Pine Capital, which sold over 800,000 shares.


A much smaller line up of funds bought shares amid the stock's crash. David Tepper's Appaloosa Management nearly doubled its stake during the quarter to about 913,000 shares. George Soros more than doubled his stake to about 184,000 shares. And David Einhorn, who last week sued Apple in a bid for higher dividends, added 20 percent to his holdings to end the quarter with 1.3 million shares.


PROFITABLE TRADES


Despite the plunge in Apple's stock price, most of the managers likely exited their positions with substantial profits because they bought years earlier.


Rosenstein and Cooperman, for example, both started gathering their stakes in the middle of 2010, when Apple shares traded below $300.


At the time, the company's iPhone 4 was beset by alleged faulty reception, a problem that became known as "antennagate." Apple's then-chief executive, the late Steve Jobs, famously dismissed the issue, saying "we don't think we have a problem." But Apple offered customers a free bumper case that was supposed to minimize any issues.


Customers did not seem to care, snapping up millions of iPhones and sending Apple's share price up almost 50 percent over the next year.


Apple came under further scrutiny last week from Greenlight's Einhorn. Einhorn filed a lawsuit to block changes in Apple's policy for issuing preferred stock. Instead, Apple should issue a new class of preferred stock to share more of its $137 billion cash hoard with shareholders, Einhorn said.


Apple Chief Executive Tim Cook dismissed the moves as a "silly sideshow" on Tuesday.


SOME TRIMMED


Not all well-known hedge fund fans of Apple cut ties in the fourth quarter. Some only trimmed their holdings.


Philippe Laffont, who worked under famed hedge fund manager Julian Robertson before striking out on his own at Coatue Management, sold about 18 percent of his Apple shares. Coatue ended the year with a still sizable 643,000 shares.


Chase Coleman, another manager who worked for Robertson, reduced the Apple stake at his Tiger Global Management fund by 19 percent to just over 1 million shares.


Robertson's own Tiger Management LLC fund trimmed its Apple stake by 28 percent to about 42,000 shares.


Large hedge funds are required to disclose their U.S. stock holdings within 45 days after the end of each quarter.


But the filings may not give a complete picture of each fund's moves, since only U.S.-listed shares and options must be revealed. Bonds, foreign shares and derivatives are not included, and short positions, or bets that a stock will fall in price, are not listed.


(Reporting by Aaron Pressman; Additional reporting by Katya Wachtel, Svea Herbst, Sam Forgione and Jennifer Ablan in New York; Editing by Steve Orlofsky and David Gregorio)



Read More..

Amputee Olympic star Pistorius charged in slaying


PRETORIA, South Africa (AP) — Oscar Pistorius, the double-amputee sprinter dubbed the Blade Runner, was charged Thursday in the Valentine's Day slaying of his girlfriend at his upscale home in South Africa, a shocking twist to one of the feel-good stories of last summer's Olympics.


Pistorius buried his face in the hood of his workout jacket as officers escorted him from a police station after his arrest in the shooting death of Reeva Steenkamp, a 30-year-old model who had spoken out on Twitter against rape and abuse of women.


Police said she was shot four times in the pre-dawn hours at Pistorius' villa in a gated community in the capital, Pretoria. Officers found a 9 mm pistol inside the home and arrested Pistorius on a murder charge.


What sparked the shooting remained unclear, but police said they had received calls in the past about domestic altercations at the home of the 26-year-old athlete, who has spoken publicly about his love of firearms.


A police spokeswoman, Brigadier Denise Beukes, said the incidents included "allegations of a domestic nature."


"I'm not going to elaborate on it, but there have been incidents," Beukes said. She said Pistorius was home at the time of Steenkamp's death and "there is no other suspect involved."


Pistorius made history in the London Games when he became the first double-amputee track athlete to compete in the Olympics. He didn't win a medal but did make the semifinals of the 400 meters and became an international star.


Thursday, companies quickly removed billboards and advertising featuring Pistorius, a national hero in South Africa who also inspired fans worldwide with the image of his high-tech carbon-fiber blades whipping through the air.


Kenny Oldwage, Pistorius' lawyer, told reporters the athlete was "emotional" after his arrest, "but he is keeping up." He said he planned to seek bail for Pistorius at a preliminary hearing Friday.


Pistorius has had troubles in the past in his personal life, which often featured fast cars, cage fighters and women.


In February 2009, he crashed a speedboat on South Africa's Vaal River, breaking his nose, jaw and several ribs and damaging an eye socket. He required 180 stitches to his face. Witnesses said he had been drinking, and officers found alcoholic beverages in the wreckage, though they did not do blood tests.


In November, Pistorius was involved in an altercation over a woman with a local coal mining millionaire, South African media reported. The two men involved the South African Police Service's elite Hawks investigative unit before settling the matter.


Pistorius' father, Henke Pistorius, said Thursday: "We all pray for guidance and strength for Oscar and the lady's parents."


A spokeswoman for Pistorius at Fast Track, an international sports marketing agency in London, said the athlete was assisting with the investigation and there would be no further comment "until matters become clearer."


The sprinter's former coach, Andrea Giannini, said he hoped the shooting was "just a tragic accident."


"No matter how bad the situation was, Oscar always stayed calm and positive," Giannini told The Associated Press in Italy. "Whenever he was tired or nervous, he was still extremely nice to people. I never saw him violent."


Firearms captivated Pistorius, the subject of an online Nike advertisement that featured him with the caption: "I am a bullet in the chamber." In November 2011, he posted a photograph on Twitter of himself at a shooting range, bragging about his score. "Had a 96% headshot over 300m from 50shots! Bam!" he wrote.


Linked to a number of women by the South African media, Pistorius and Steenkamp were first seen together publicly in November. She was named one of the world's 100 Sexiest Women for two years running by the men's magazine FHM.


The leggy blonde with a law degree also appeared in international and South African ads and was a celebrity contestant on "Tropika Island of Treasure," a South African reality show filmed in Jamaica.


While known for her bikini-clad, vamping photo spreads, she tweeted messages urging women to stand up against rape. Her tweets also focused on Pistorius, with one of her last messages noting her excitement over Valentine's Day.


"What do you have up your sleeve for your love tomorrow?" she wrote. "It should be a day of love for everyone."


Police have not publicly named Steenkamp as the victim, saying only that a 30-year-old woman was killed. Steenkamp's publicist, however, confirmed in a statement that the model had died.


"Everyone is simply devastated," the publicist, Sarit Tomlinson, said. "She was the kindest, sweetest human being; an angel on earth and will be sorely missed."


Police arrived at Pistorius' home after 3 a.m., and paramedics tried unsuccessfully to revive Steenkamp, police spokeswoman Lt. Col. Katlego Mogale said.


Officers later took Pistorius to a hospital so doctors could collect samples for DNA testing and check his blood alcohol content.


Pistorius had both legs amputated below the knee before his first birthday because of a congenital condition, and campaigned for years to be allowed to compete against able-bodied athletes.


He was initially banned because of his carbon fiber blades — which critics said gave him an unfair advantage — before being cleared by sport's highest court in 2008.


He was a last-minute selection to South Africa's Olympic team, competing in the 400 meters and the 4x400 relay. He later retained his Paralympic title in the 400 meters.


South Africa's Sports Confederation, its Olympic committee and the International Paralympic Committee all had no comment on the shooting.


Shock rippled across South Africa, a nation of 50 million where nearly 50 people are killed each day, one of the world's highest murder rates. U.N. statistics say South Africa also has the second highest rate of shooting deaths in the world, behind only Colombia.


"The question is: Why does this story make the news? Yes, because they are both celebrities, but this is happening on every single day in South Africa," said Adele Kirsten, a member of Gun Free South Africa.


"We have thousands of people killed annually by gun violence in our country. So the anger is about that it is preventable."


___


Gerald Imray reported from Cape Town, South Africa. Associated Press writers Michelle Faul and Ed Brown in Johannesburg contributed to this report.


___


Jon Gambrell can be reached at www.twitter.com/jongambrellAP.


Read More..

Study: Fish in drug-tainted water suffer reaction


BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.


It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.


The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.


"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.


Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.


"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."


Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.


They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.


The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.


The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.


The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.


The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.


"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."


Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.


Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.


It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.


Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."


Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.


The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.


Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.


Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.


___


Online:


Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html


Read More..

Ryan O'Neal wins appeals ruling in defamation case


LOS ANGELES (AP) — Ryan O'Neal may have enough evidence to show that he was defamed by a man who claimed the actor stole a valuable portrait of the late Farrah Fawcett, an appeals court ruled Thursday.


A divided panel of the 2nd District Court of Appeal ruled that O'Neal's case against Craig Nevius, a former Fawcett associate, should be allowed to proceed and that the actor may be able to win some damages. One justice disagreed and wrote that the case should be dismissed.


O'Neal sued in July 2011, claiming he was defamed by Nevius' comments that the actor had stolen a Fawcett portrait created by Andy Warhol. The painting is the subject of a separate lawsuit between O'Neal and the University of Texas, which claims Fawcett left the artwork to the school after her 2009 death.


Nevius' attorney, Lincoln Bandlow, said he would appeal the ruling to the California Supreme Court. He had appealed a lower court's ruling allowing the case to go forward.


O'Neal's attorney Todd Eagan wrote in a statement that he and O'Neal were pleased with the ruling. "We look forward to a complete victory against Mr. Nevius at trial," he wrote.


O'Neal's suit seeks more than $1 million in damages. He claimed in the case that Warhol gave him the portrait and he intends to bequeath it to his only son from his longtime relationship with Fawcett, Redmond O'Neal.


Nevius' comments that O'Neal stole the artwork were made in interviews with Star magazine and "Good Morning America," and he cooperated with UT investigators searching for the portrait.


Although Nevius initially denied he accused O'Neal of stealing the painting, he acknowledged in a later court filing that he made the claim to university investigators.


"The inferences reasonably drawn from the evidence here would support a jury's finding that Nevius harbored strong ill-feelings toward O'Neal," the justices siding with O'Neal wrote. The dissent argues that Nevius' comments were constitutionally protected speech and the case should have been dismissed.


O'Neal's fight with UT over the portrait returns to court Feb. 27.


The actor and Nevius have battled in court for years.


Nevius collaborated on a documentary of Fawcett's fight with cancer but sued the actor claiming he interfered in the project and removed him from it shortly before Fawcett's death. The case was dismissed before trial.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP .


Read More..

Push for online sales taxes pick up steam in Congress









U.S. states could collect millions of dollars in online sales taxes, with members of both parties in Congress sponsoring legislation Thursday that would resolve states' decades-long struggle to tax businesses beyond their borders.

"Small businesses and states alike are suffering from the inability to collect due -- not new -- taxes from purchases made online," said Rep. Steve Womack, R-Ark., adding the legislation is a "bipartisan, bicameral, common-sense solution that promotes states' rights and levels the playing field for our Main Street businesses."

Legislation on the Amazon tax, named for the colossal Internet retailer, has languished for years.

In 1992 the Supreme Court decided the patchwork of state tax laws made it too difficult for online retailers to collect and remit sales taxes. So states can tax Internet only sales made by companies with a physical presence in the states. That means online retailers such as Amazon.com Inc. collect sales tax in some states and not in others.

The bills introduced on Thursday reconcile differences in legislation that the House of Representatives and Senate considered last year. The nearly identical details in the bills and strong bipartisan support mean the final bill could be sent to President Barack Obama this year.

Members of Congress recently assured state lawmakers they would pass a law in 2013.

In the last decade, Internet sales have gone from 1.6 percent of all U.S. retail sales to more than 5 percent, according to Commerce Department data, a proportion that will likely grow as shoppers make more purchases on handheld devices. In the third quarter of 2012,  "e-commerce" sales were $57 billion, the department said.

Large Internet retailers are worried the tax could drive up the cost of doing business. They would also have to create new systems and software to collect the surcharges, adding to their costs. Amazon said in July it prefers having the tax issue resolved at the federal level.

When the 2007-09 recession caused states' revenues to collapse, Republican and Democratic governors backed the tax as a financial solution that would not require federal aid.

A leader in the Republican party, Virginia Gov. Bob McDonnell went so far as to figure online tax revenue into his recent plan for overhauling the state's transportation funding.

"The revenue states are losing out on is legally owed, but because of a pre-Internet Supreme Court ruling, states aren't able to collect it," Sen. Deb Peters, R-S.D., said in a statement.

States and cities say they can recoup billions of dollars with the tax. Fitch Ratings estimates put the states' loss at $11 billion.

Some states are considering their own legislation. Florida is debating a bill that advocates say could bring the state more than $400 million.

Small retailers, meanwhile, have said the sales tax will will allow them to compete with massive online retailers.

"While store owners collect and remit state and local sales taxes their digital competitors are off the hook -- and benefiting because of it," said David French, the National Retail Federation's senior vice president for government relations, in a statement.



Read More..

Anxiety grows as Chicago Public Schools narrows closing list









After trimming the number of schools that could be closed to 129, Mayor Rahm Emanuel's school administration on Wednesday entered the latest and what is likely to be the most intense phase so far in trying to determine which schools should be shut.


Chicago Public Schools chief Barbara Byrd-Bennett is expected to pare the preliminary list before unveiling a final one at the end of March. She said administrators will determine which schools are saved in the coming weeks amid a final round of community meetings to hear arguments from parents, teachers and community groups about why their schools should stay open.


If a hearing Wednesday night in North Lawndale was any indication, CPS still has a long way to go to gain the public's trust.





"Our schools don't need to close," Dwayne Truss, vice chairman of CPS' Austin Community Action Council, said in front of hundreds of people packed inside a church auditorium in the West Side neighborhood. "CPS is perpetrating a myth that there's a budget crisis."


CPS initially said 330 of its schools are underenrolled, the chief criterion for closing. Members of a commission assembled to gather public input on the issue told CPS officials earlier this year that closing a large number of schools would create too much upheaval. The Tribune, citing sources, said the commission indicated a far smaller number should be closed than initially feared, possibly as few as 15.


CPS then started holding its own hearings and on Wednesday, while following many of the formal recommendations made by the Commission on School Utilization, said 129 schools still fit the criteria for closing.


The new number and the latest round of hearings sets the stage for the administration to counter questions about the district's abilities to close a large number of schools and the need to do so.


For many who have already turned up to school closing meetings, this final round of hearings will be even more critical. School supporters must show how they plan to turn around academic performance and build enrollment, and also make the case for any security problems that would be created by closing their school.


"We are prepared now to move to the next level of conversation with our community and discuss a list of approximately 129 schools that still require further vetting and further conversation," Bryd-Bennett said. "We are going to take these 129 and continue to sift through these schools."


In the past, political clout has played a role in the district's final decisions. Already this year, several aldermen have spoken out on behalf of schools in their wards.


On the Near Northwest Side, for instance, the initial list of 330 underused schools included about six in the 1st Ward. Ald. Proco "Joe" Moreno helped organize local school council members, school administrators and parents to fight any closing. He also took that fight to leaders in City Hall and within CPS' bureaucracy. Nearly all of the schools in the ward were excluded from the list of 129.


"It is effort and it's organizing and not just showing up at meetings and yelling. Anybody can do that," Moreno said. "Those schools that proactively work before those meetings and explain what they are doing, what they need and that they are willing to accept new students, that's when politics works.


"My responsibility in this juncture was to focus on these schools," he said. "I had to work on the inside, with CPS and with City Hall, and with my schools on the outside."


Most of the schools on the list of 129 are on the West, South and Southwest sides, many in impoverished neighborhoods that saw significant population loss over the last decade. Largely spared were the North and Northwest sides.


In all, more than 43,000 students attend those 129 schools on the preliminary list, according to CPS records.


The area with the most schools on the list is a CPS network (the district groups its schools in 14 networks) that runs roughly from Madison Street south to 71st Street and from the lake to State Street. The preliminary list includes 24 schools in that area.


The Englewood-Gresham network has the second-largest number, 19, while the Austin-North Lawndale network where Wednesday night's meeting was held still has 16 schools on the list.


CPS critics said the preliminary list is still too large to be meaningful and that the district's promise to trim it before March 31 is only a tactic to make the final number seem reasonable.


"They started out with such a far-fetched, exaggerated list of schools, many of which are nowhere near underutilized," said Wendy Katten, co-founder of the parent group Raise Your Hand. "They might appear to be looking like they're listening, but they're not. They have not done a thorough and substantive assessment of these schools."


Following the commission's recommendations, CPS last month removed high schools and schools performing at a high level academically from consideration. On Wednesday, the district said schools with more than 600 students or utilization rates of at least 70 percent have also been taken out of consideration for closing.





Read More..

Apple loses right to use iPhone trademark in Brazil: WSJ


(Reuters) - Brazil's copyright regulator on Wednesday stripped Apple Inc of the right to use its iPhone trademark in that country, the Wall Street Journal reported on its website on Wednesday.


The agency that oversees patents in Brazil said Gradiente Electronica SA, a Brazilian consumer electronics maker, already owned the rights to the iPhone name, according to the report.


Apple will be able to challenge the ruling in the Brazilian courts.


Earlier this month, sources told Reuters that the regulator, the Brazilian Institute of Intellectual Property, was likely to make the decision that Apple did not have the rights to the trademark.


Gradiente Electronica registered the "iphone" name in 2000, seven years before Apple launched its popular smartphone.


A spokesperson for Apple in the United States was not immediately available to comment.


(Reporting By Erin Geiger Smith)



Read More..

Plumlee leads No. 2 Duke past UNC, 73-68


DURHAM, N.C. (AP) — With its star big man on the bench with foul trouble, Duke went small to beat its top rival — and one of its smallest players came up big.


The run that propelled the second-ranked Blue Devils to a 73-68 victory over North Carolina on Wednesday night started when Mason Plumlee sat down and backup guard Tyler Thornton warmed up.


"I think the hero for us this game was Thornton," coach Mike Krzyzewski said. "He would not let us lose."


Plumlee finished with his usual big numbers — 18 points, 11 rebounds — while Quinn Cook scored 18 points and Rasheed Sulaimon finished with 13 for the Blue Devils (22-2, 9-2 Atlantic Coast Conference).


But the contributions of Thornton couldn't be overlooked.


Thornton finished with nine points on three 3-pointers — or, as many points as he had in his previous three games combined — and two of those 3s came during the run midway through the second half that completely flipped the game's momentum.


"It's just the heart and the will to want to win," Thornton said. "Especially coming down the stretch, you've got to go all out and leave it on the floor, and I think we did that."


Duke shot 44 percent — 52 percent after halftime — and erased a slow start with that timely run and win its sixth straight this season and sixth in eight meetings in college basketball's fiercest rivalry.


P.J. Hairston matched a career high with 23 points and Reggie Bullock had 15 points with four 3-pointers for North Carolina (16-8, 6-5), which led for the first 26 minutes but went on to lose its second straight.


The Tar Heels were 13 of 23 from the free-throw line and missed 7 of 10 during a critical late stretch while falling to 1-4 this season against ranked opponents.


"If I knew how to fix the blessed thing, I would have fixed it," coach Roy Williams said of his team's struggles at the line. "The bottom line is, we didn't make free throws today. We're not a good free-throw shooting team in games."


Still, they trailed just 65-61 in the final minute and appeared to have gotten a stop by forcing Thornton to miss a long 3-pointer with the shot clock winding down. But Bullock fouled Sulaimon on the rebound, and the freshman hit both free throws with 37.5 seconds left.


Hairston hit a free throw on North Carolina's next possession to cut it to 67-62, but Plumlee countered with two free throws with 30.3 seconds left to make it a three-possession game.


Seth Curry scored 11 points in his sixth straight double-figure performance against North Carolina.


The win was a nice present for Krzyzewski, who was celebrating his 66th birthday.


And an unorthodox move — putting one of the best big men in the nation on the bench, however briefly — wound up putting Duke ahead for the first time in this one.


Plumlee picked up his third foul 31 seconds into the second half and uncorked an untimely 20-foot jumper a few minutes later, prompting Krzyzewski to burn a timeout. He went to a smaller lineup, sitting Plumlee in favor of two power forwards, Amile Jefferson and Josh Hairston.


"I thought he was playing like he had three fouls," Krzyzewski said. UNC's James Michael "McAdoo was just going at him so that McAdoo was either going to score, or Mason was going to foul him."


The move freed up some space for the Duke guards and immediately led to six quick points to start the 19-7 run that put the Blue Devils ahead to stay.


Duke outscored North Carolina 11-3 during the 4-minute stretch with Plumlee on the bench and took their first lead when Curry swished a 3 from in front of the bench to make it 42-41 with 14 minutes left.


Thornton — who had missed 12 of 14 3-pointers during his previous eight games — hit two of them from the same spot in the right corner, capping the spurt with his second that made it 50-45 with 12½ minutes to go.


Curry eventually stretched the lead to 59-51 with another 3 with 5 minutes left.


"They started knocking down shots in the second half, open 3-pointers," Bullock said. "I think our team played great, we played with better sense of urgency, we played with better effort, we were more involved in the game and what's happening. But they started knocking down shots and they started gaining momentum, and we wasn't connecting when we were open."


Dexter Strickland added 14 points but McAdoo was held to nine on 4-of-12 shooting for North Carolina, which came in as a written-off, double-digit underdog after a 26-point loss at No. 3 Miami that marked its worst loss of the season.


But the Tar Heels were aggressive early and methodically built a double-figure lead, the third straight year they came into Cameron and went up by 10. Bullock's third 3 of the half with about 6:45 left put North Carolina up 28-18.


"The intensity tonight was better than it has been all year long," Williams said.


Read More..

Morning-after pill use up to 1 in 9 younger women


NEW YORK (AP) — About 1 in 9 younger women have used the morning-after pill after sex, according to the first government report to focus on emergency contraception since its approval 15 years ago.


The results come from a survey of females ages 15 to 44. Eleven percent of those who'd had sex reported using a morning-after pill. That's up from 4 percent in 2002, only a few years after the pills went on the market and adults still needed a prescription.


The increased popularity is probably because it is easier to get now and because of media coverage of controversial efforts to lift the age limit for over-the-counter sales, experts said. A prescription is still required for those younger than 17 so it is still sold from behind pharmacy counters.


In the study, half the women who used the pills said they did it because they'd had unprotected sex. Most of the rest cited a broken condom or worries that the birth control method they used had failed.


White women and more educated women use it the most, the research showed. That's not surprising, said James Trussell, a Princeton University researcher who's studied the subject.


"I don't think you can go to college in the United States and not know about emergency contraception," said Trussell, who has promoted its use and started a hot line.


One Pennsylvania college even has a vending machine dispensing the pills.


The morning-after pill is basically a high-dose version of birth control pills. It prevents ovulation and needs to be taken within a few days after sex. The morning-after pill is different from the so-called abortion pill, which is designed to terminate a pregnancy.


At least five versions of the morning-after pills are sold in the United States. They cost around $35 to $60 a dose at a pharmacy, depending on the brand.


Since it is sold over-the-counter, insurers generally only pay for it with a doctor's prescription. The new Affordable Care Act promises to cover morning-after pills, meaning no co-pays, but again only with a prescription.


The results of the study were released Thursday by the Centers for Disease Control and Prevention. It's based on in-person interviews of more than 12,000 women in 2006 through 2010. It was the agency's first in-depth report on that issue, said Kimberly Daniels, the study's lead author.


The study also found:


—Among different age groups, women in their early 20s were more likely to have taken a morning-after pill. About 1 in 4 did.


—About 1 in 5 never-married women had taken a morning-after pill, compared to just 1 in 20 married women.


—Of the women who used the pill, 59 percent said they had done it only once, 24 percent said twice, and 17 percent said three or more times.


A woman who uses emergency contraception multiple times "needs to be thinking about a more regular form" of birth control, noted Lawrence Finer, director of domestic research for the Guttmacher Institute, a nonprofit group that does research on reproductive health.


Also on Thursday, the CDC released a report on overall contraception use. Among its many findings, 99 percent of women who've had sex used some sort of birth control. That includes 82 percent who used birth control pills and 93 percent whose partner had used a condom.


___


Online:


CDC report: http://www.cdc.gov/nchs/


Emergency contraception info: http://ec.princeton.edu/index.html


Read More..

Miss America pageant returns to Atlantic City, NJ


ATLANTIC CITY, N.J. (AP) — There she is, Miss America, headed back to Atlantic City.


The Miss America pageant, a staple in Atlantic City for decades before it was moved to Las Vegas in 2006, is making a return, Gov. Chris Christie's spokesman Michael Drewniak confirmed Wednesday. Lt. Gov. Kim Guadagno was scheduled to make a formal announcement Thursday at Atlantic City's Boardwalk Hall.


The Miss America pageant started as little more than a bathing suit revue. It broke viewership records in its heyday and bills itself as one of the world's largest scholarship programs for women. But, like other pageants, it has struggled to stay relevant as national attitudes regarding women's rights have changed.


The news of the pageant's return to Atlantic City came as a surprise to the Las Vegas Convention and Visitors Authority, which sponsored the pageant on the Las Vegas Strip in January, spokeswoman Courtney Fitzgerald said in a telephone interview. In a subsequent statement, she said the tourism organization wished the pageant well in its new home.


"Las Vegas is honored to have hosted the Miss America pageant for the past seven years," she said. "We understand that moving the televised event to various cities showcases America's diverse destinations which represent our great country."


Pageant officials didn't immediately respond to after-hours phone and email messages seeking comment Wednesday.


Many details remained unclear, including whether the pageant would return to the elaborate show it had been for decades at Boardwalk Hall or continue as more of the reality show it became with its move to Las Vegas. Also unknown was where it would be broadcast and whether it is returning permanently or for a limited run.


According to the Miss America Organization's website, the contest originated in 1920 as the Fall Frolic, which became the Inter-City Beauty Contest the following year. In 1921, a high school junior named Margaret Gorman was one of approximately 1,000 entrants in a photo contest held by the Washington Herald. She was chosen as the first Miss Washington, D.C., and her prize was a trip to Atlantic City, where she won the top prize: the Golden Mermaid Trophy.


The next year, Gorman was expected to defend her title. But when the Washington Herald selected a new Miss Washington, D.C., Atlantic City pageant officials didn't know what new title to award Gorman. Since both titles she won in 1921 — Inter-City Beauty, Amateur and The Most Beautiful Bathing Girl in America — were considered somewhat awkward, it was decided to call her Miss America.


The pageant was conceived by the Businessmen's League of Atlantic City as a way to extend the summer tourism season in Atlantic City for another week, being held the weekend after Labor Day weekend, when temperatures were generally still warm.


___


Associated Press writer Hannah Dreier in Las Vegas contributed to this story.


___


Wayne Parry can be reached at http://twitter.com/WayneParryAC


Read More..

Sources: American, US Airways boards approve merger









The boards of AMR Corp and US Airways Group Inc each met on Wednesday to approve a merger that would create the world's largest airline with an expected market value of around $11 billion, people familiar with the matter said.

The all-stock merger, which is set to be announced early on Thursday, would finalize the consolidation of legacy U.S. air carriers that helped put the industry on a more solid financial footing.

AMR's bankruptcy creditors will own 72 percent of the combined airline, which will do business under the American Airlines brand and be based in Fort Worth, Texas, the people said. US Airways shareholders will own the rest.

The board approval came after AMR's unsecured creditors committee, which includes all three of AMR's major unions, met earlier on Wednesday to approve a proposed merger agreement, the people said.

The merged company will have a board of 12 members: four from US Airways including its chief executive Doug Parker, three from AMR including chief executive Tom Horton and five to be designated by the AMR creditors, two of the people said.

That will shrink to 11 members in 2014 after Horton steps down following the combined company's first annual meeting, the person added. Parker becomes chief executive of the new airline.

AMR's unsecured creditors are expected to be made whole on their claims in the form of stock in the merged company and also get accrued interest, the people said. AMR's shareholders will get a small equity stake as well, they added.

All the sources asked not to be named because the matter was not public. US Airways declined to comment while AMR representatives could not be immediately reached for comment.

The deal comes more than 14 months after the bankrupt parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers.

A tie-up with US Airways would create the world's top airline by passenger traffic and help American and US Air better compete with United Continental Holdings and Delta Air Lines.

Some $11 billion valuation of the combined American-US Airways compares to the roughly $12.4 billion market capitalization for Delta, and $8.7 billion for United Continental.

Read More..