FAA grounds Dreamliners in U.S.

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)

With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.

A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.

The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.

The decision came the same day Japanese airlines grounded their 787s after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.

The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.

"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.

Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 

United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."

Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.

"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."

LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.

Suzy Zaborek, 27, of Chicago was at Chicago O'Hare on Wednesday night waiting for her father to arrive from Poland aboard the 787. He came home early specifically to ride on the inaugural flight.

Zaborek had not been following the Dreamliner woes in recent weeks and the dramatic groundings on Wednesday.

"I'm glad I didn't know because I wouldn't have let him get on on of those," she said.

The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.

Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.

"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."

The FAA said it took drastic action because it determined that battery failures are "likely to exist or develop" in other planes.

Lithium-ion batteries can catch fire if they are overcharged, and the fires are difficult to extinguish, Boeing has previously said. Still, lithium-ion is the right choice for the 787, Boeing officials said.

Earlier Wednesday, Japan's two largest airlines grounded their fleets of 787s after one of the jets made an emergency landing and passengers were evacuated via emergency slides.

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Japanese airlines ground Boeing 787s after emergency landing

TOKYO (Reuters) - Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, the latest and most serious in a series of incidents to heighten safety concerns over a plane many see as the future of commercial aviation.

All Nippon Airways Co said instruments aboard a domestic flight indicated a battery error, triggering emergency warnings to the pilots. It said the battery in the forward cargo hold was the same lithium-ion type as one involved in a fire on another Dreamliner at a U.S. airport last week.

The carrier grounded all 17 of its 787s, and Japan Airlines Co suspended its 787 flights scheduled for Wednesday. ANA said its planes could be back in the air as soon as Thursday once checks were completed. The two carriers operate around half of the 50 Dreamliners delivered by Boeing to date.

Wednesday's incident, described by a transport ministry official as "highly serious" - language used in international safety circles as indicating there could have been an accident - is the latest in a line of mishaps - fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window - to hit the world's first mainly carbon-composite airliner in recent days.

"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group in Fairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."

The 787, which has a list price of $207 million, represents a leap in the way planes are designed and built, but the project has been plagued by cost overruns and years of delays. Some have suggested Boeing's rush to get planes built after those delays resulted in the recent problems, a charge the company strenuously denies.

Both the U.S. Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) said they were monitoring the latest incident as part of a comprehensive review of the Dreamliner announced late last week.

ALARM TRIGGERED

ANA flight 692 left Yamaguchi Airport in western Japan shortly after 8 a.m. local time (2300 GMT Tuesday) bound for Haneda Airport near Tokyo, a 65-minute flight. About 18 minutes into the flight, at 30,000 feet, the plane began a descent, cutting its altitude to 20,000 feet in about four minutes. It made an emergency landing 16 minutes later, according to flight-tracking website Flightaware.com.

A spokesman for Osaka airport authority said the plane landed at Takamatsu at 8:45 a.m. All 129 passengers and eight crew evacuated via the plane's inflatable chutes. Chief Cabinet Secretary Yoshihide Suga said five people were slightly injured.

At a news conference - where ANA's vice-president Osamu Shinobe bowed deeply in apology - the carrier said a battery in the forward cargo hold triggered emergency warnings to the pilots, who decided on the emergency action.

"There was a battery alert in the cockpit and there was an odd smell detected in the cockpit and cabin, and (the pilot) decided to make an emergency landing," Shinobe said.

Passengers leaving the ANA flight told local TV there was an odor like burning plastic on the plane as soon as it took off. "There was a bad smell as soon as we started and before we made the emergency landing there was an announcement and the stewardess' voice was shaking, so I thought this was serious," one passenger told TBS TV.

Shigeru Takano, a senior safety official at the Civil Aviation Bureau, said that an emergency light indicating a malfunction had gone off in the cockpit, followed by another warning light indicating smoke. Checks showed a battery error and smoke was smelled in the cockpit, he added.

One man told a local broadcaster there was a burning smell in the plane. "There was a strong, burning smell, but the smoke appeared after they opened the emergency doors, after we landed," he said.

Marc Birtel, a Boeing spokesman, told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."

UNDER REVIEW

In Asia, only the Japanese and Air India have the Dreamliner in service, but other airlines are among those globally to have ordered around 850 of the new aircraft.

Australia's Qantas Airways said its order for 15 Dreamliners remained on track, with its Jetstar subsidiary due to take delivery of the first of the aircraft in the second half of this year.

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Facebook rolls out friends-based search product

MENLO PARK, California (Reuters) - Facebook Inc took the wraps off a new search tool on Tuesday that lets people trawl their network of friends to find everything from restaurants to movie recommendations, an improvement that's likely to increase competition with review websites like Yelp and potentially even Google Inc.

The so-called graph search marks the company's biggest foray into online search to date, though it displays only information within the walls of the social network rather than links to sites available across the Internet.

Mark Zuckerberg, Facebook's 28-year-old founder and chief executive, introduced the new product at the company's first major product launch since a rocky initial public offering in May.

"Graph search is designed to take a precise query and return to you the answer, not links to other places where you might get the answer," Zuckerberg told reporters at its Menlo Park, California, headquarters. "What you've seen today is a really different product from anything else that's out there."

Facebook shares, which have climbed 15 percent since the start of the year, slid 3 percent Tuesday to just above $30. The product news fell short of some of the most optimistic predictions, which included speculation that the social network would introduce its own smartphone or an Internet search engine.

Dubbed "graph search" because Facebook refers to its growing content, data and membership as the "social graph," the function will be available at first only as a "beta," or trial, for just hundreds of thousands of its billion-plus users.

It will let users browse mainly photographs, people, places and members' interests. Zuckerberg stressed that people can sort through only content that has been shared with them, addressing potential privacy concerns.

Shares in Yelp dived more than 6 percent on fears that Facebook's new friends-based search concept will begin to draw users away from the popular reviews site, which also lets people maintain a circle of trusted friends. Google stock held steady.

Some analysts said Facebook may be taking a tiny step toward eventually challenging Google on its home turf, but said that was a much more challenging undertaking and a long-term possibility at best.

Zuckerberg stressed that the new graph search did not encompass Internet searches, Google's specialty.

Sterne Agee analyst Arvind Bhatia said the product was inevitable. "We think this will enable them to expand beyond display ads and ultimately compete with Google," he said.

THE PROMISE AND THE THREAT

The world's largest online social network, Facebook is moving to regain Wall Street's confidence after the IPO and concerns about its long-term financial prospects.

Much of Facebook's recent focus has been on making money from users who are migrating to mobile devices. Zuckerberg said he could foresee a business in search over time, but analysts advised caution. Facebook has come under fire numerous times for unclear privacy guidelines.

While Tuesday's revelation fell short of some of the wilder guesses about what Facebook planned to reveal in its highest-profile news briefing since its market debut, analysts said it was overdue for a well-rounded search tool, given its current inadequacies.

Wedbush Securities analyst Michael Pachter argued that recommendations from trusted friends were more valuable than from strangers on the Web.

Facebook has a vast amount of information in its social network, including roughly 200 billion photos. But some analysts noted that the information each user has access to through a network of friends is not always that extensive and could limit the usefulness of Facebook's search offering.

"Very well-connected individuals have a rich treasure trove of data that they can mine, but the average person's storehouse of data is much sparser and has less relevance to these queries," said Ray Valdes, an analyst for Gartner Inc.

Facebook's announcement underscores the increasing overlap between social media and traditional Web search engines. Google, the world's No. 1 search engine, launched the Google+ social network in 2011 and has been integrating data between Google+ into its search engine.

In the works for more than a year, Facebook's new search feature will initially be available for the English language only and for use on desktop PCs.

Bringing the search tool to mobile devices, such as smartphones, would probably require a change in design of the product, noted Valdes. "It might be that they have to come up with innovation like voice search, a Siri-like voice assistant to get it to work well on mobile," he said, referring to the technology available on Apple Inc's iPhone.

Facebook executives at the event showcased a variety of different potential uses of the product, such as finding a date by searching for single men who live in San Francisco and are from India, and creating a holiday card by finding all the photos in which spouses appear together.

The search technology will use the "likes," "check-ins" and star-ratings that Facebook users have posted about restaurants to determine the order of the recommendations displayed, though Facebook search engineering head Lars Rasmussen noted that users' comments about restaurants don't currently affect search result rankings.

Zuckerberg said the search tool was a work in progress that would take the company years to fully build out. He pointed to a variety of additional features on the horizon, such as support for additional languages and the ability to incorporate data from third-party services, like online music services, which connect to Facebook.

"I don't necessarily think that a lot of people are going to start coming to Facebook to do Web search because of this, that isn't the intent," said Zuckerberg. "But in the event that you can't find what you're looking for, it's really nice to have."

(Additional reporting by Malathi Nayak in San Francisco and Himank Sharma in Bangalore, writing and editing by Edwin Chan; Editing by Phil Berlowitz and Prudence Crowther)

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Anti-doping officials want Armstrong under oath

A televised confession by Lance Armstrong isn't enough.

Anti-doping officials want the disgraced cyclist to admit his guilt under oath before considering whether to lift a lifetime ban clouding his future as a competitive athlete. That was seconded by at least one former teammate whom Armstrong pushed aside on his way to the top of the Tour de France podium.

"Lance knows everything that happened," Frankie Andreu told The Associated Press on Tuesday. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."

Armstrong has been in conversations with U.S. Anti-Doping Agency officials, touching off speculation that he may be willing to cooperate with authorities there and name names.

Interviewer Oprah Winfrey didn't say if the subject was broached during the taping Monday at a downtown Austin hotel. In an appearance on "CBS This Morning," she declined to give details of what Armstrong told her, but said she was "mesmerized and riveted by some of his answers."

Asked whether the disgraced cyclist appeared genuinely contrite after a decade of fierce denials, Winfrey replied, "I felt that he was thoughtful, I thought that he was serious, I thought that he certainly had prepared for this moment. I would say that he met the moment."

She was promoting what has become a two-part special, Thursday and Friday, on her OWN network.

Around the same time, World Anti-Doping Agency officials issued a statement saying nothing short of "a full confession under oath" would cause them to reconsider Armstrong's lifetime ban from sanctioned events.

The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.

The ban was only one of several penalties handed to Armstrong after a scathing, 1,000-page report by USADA last year. The cyclist was also stripped of his seven Tour de France titles, lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997.

The report portrayed Armstrong as the mastermind of a long-running scheme that employed steroids, blood boosters such as EPO, and a range of other performance-enhancers to dominate the tour. It included revealing testimony from 11 former teammates, including Andreu and his wife, Betsy.

"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.

"And it's not only us," he added, "he's ruined a lot of people lives."

Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Nearby, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.

The AP reported earlier Tuesday that Justice Department officials were likely to join a whistleblower lawsuit against Armstrong by former teammate Floyd Landis, citing a source who works outside the government and requested anonymity because he was not authorized to speak on the record about the matter.

The lawsuit by Landis, who was stripped of the 2006 Tour de France title after testing positive, alleges that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The deadline to join the False Claims Act lawsuit, which could require Armstrong to return substantial sponsorship fees and pay a hefty penalty, is Thursday.

Landis is hardly the only one seeking money back from Armstrong.

During his long reign as cycling champion, Armstrong scolded some critics in public, didn't hesitate to punish outspoken riders during the race, and waged legal battles against still others in court.

The London-based Sunday Times has already filed a lawsuit to recover about $500,000 it paid Armstrong to settle a libel case, and Dallas-based SCA Promotions, which tried to deny him a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.

In Australia, the government of the state of South Australia said it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.

"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.

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Litke reported from Chicago, Vertuno from Austin, Texas. Pete Yost in Washington and John L. Mone in Dearborn, Mich., also contributed to this report.

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Disney, AT&T U-verse enter expansive distribution deal

LOS ANGELES (TheWrap.com) – The Walt Disney Company and AT&T U-verse have signed a long-term distribution deal that will bring Disney’s sports, news and entertainment content to U-verse customers via a wide array of platforms, including television, computers, smartphones, tablets, gaming consoles and internet-enabled televisions, the companies said Tuesday.

The multi-year agreement will also bring a number of new services, such as ESPN 3D, ESPN Goal Line, ESPN Buzzer Beater, Disney Junior and an upcoming multi-platform network for English-dominant and bilingual Hispanics, which is a joint venture between ABC News and Univision.

Approximately 70 services are covered under the agreement, including numerous ESPN services and the upcoming Longhorn Network, which will be available in Texas, Louisiana and Virginia systems by next football season..

“We’re proud to deliver more Disney content and services to U-verse customers across the screens they watch most,” AT&T Home Solutions’ president of content and advertising sales Jeff Weber said of the pact. “Our U-verse customers expect access to content when they want it, where they want it, and this renewal gives them more value and access to a variety of live and on demand content in and outside the home.

Disney entered a similar multi-platform deal with cable and broadband provider Charter Communications at the end of 2012.

TV News Headlines – Yahoo! News

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Risk to all ages: 100 kids die of flu each year

NEW YORK (AP) — How bad is this flu season, exactly? Look to the children.

Twenty flu-related deaths have been reported in kids so far this winter, one of the worst tolls this early in the year since the government started keeping track in 2004.

But while such a tally is tragic, that does not mean this year will turn out to be unusually bad. Roughly 100 children die in an average flu season, and it's not yet clear the nation will reach that total.

The deaths this year have included a 6-year-old girl in Maine, a 15-year Michigan student who loved robotics, and 6-foot-4 Texas high school senior Max Schwolert, who grew sick in Wisconsin while visiting his grandparents for the holidays.

"He was kind of a gentle giant" whose death has had a huge impact on his hometown of Flower Mound, said Phil Schwolert, the Texas boy's uncle.

Health officials only started tracking pediatric flu deaths nine years ago, after media reports called attention to children's deaths. That was in 2003-04 when the primary flu germ was the same dangerous flu bug as the one dominating this year. It also was an earlier than normal flu season.

The government ultimately received reports of 153 flu-related deaths in children, from 40 states, and most of them had occurred by the beginning of January. But the reporting was scattershot. So in October 2004, the government started requiring all states to report flu-related deaths in kids.

Other things changed, most notably a broad expansion of who should get flu shots. During the terrible 2003-04 season, flu shots were only advised for children ages 6 months to 2 years.

That didn't help 4-year-old Amanda Kanowitz, who one day in late February 2004 came home from preschool with a cough and died less than three days later. Amanda was found dead in her bed that terrible Monday morning, by her mother.

"The worst day of our lives," said her father, Richard Kanowitz, a Manhattan attorney who went on to found a vaccine-promoting group called Families Fighting Flu.

The Centers for Disease Control and Prevention gradually expanded its flu shot guidance, and by 2008 all kids 6 months and older were urged to get the vaccine. As a result, the vaccination rate for kids grew from under 10 percent back then to around 40 percent today.

Flu vaccine is also much more plentiful. Roughly 130 million doses have been distributed this season, compared to 83 million back then. Public education seems to be better, too, Kanowitz observed.

The last unusually bad flu season for children, was 2009-10 — the year of the new swine flu, which hit young people especially hard. As of early January 2010, 236 flu-related deaths of kids had been reported since the previous August.

It's been difficult to compare the current flu season to those of other winters because this one started about a month earlier than usual.

Look at it this way: The nation is currently about five weeks into flu season, as measured by the first time flu case reports cross above a certain threshold. Two years ago, the nation wasn't five weeks into its flu season until early February, and at that point there were 30 pediatric flu deaths — or 10 more than have been reported at about the same point this year. That suggests that when the dust settles, this season may not be as bad as the one only two years ago.

But for some families, it will be remembered as the worst ever.

In Maine, 6-year-old Avery Lane — a first-grader in Benton who had recently received student-of-the-week honors — died in December following a case of the flu, according to press reports. She was Maine's first pediatric flu death in about two years, a Maine health official said.

In Michigan, 15-year-old Joshua Polehna died two weeks ago after suffering flu-like symptoms. The Lake Fenton High School student was the state's fourth pediatric flu death this year, according to published reports.

And in Texas, the town of Flower Mound mourned Schwolert, a healthy, lanky 17-year-old who loved to golf and taught Sunday school at the church where his father was a youth pastor.

Late last month, he and his family drove 16 hours to spend the holidays with his grandparents in Amery, Wis., a small town near the Minnesota state line. Max felt fluish on Christmas Eve, seemed better the next morning but grew worse that night. The family decided to postpone the drive home and took him to a local hospital. He was transferred to a medical center in St. Paul, Minn., where he died on Dec. 29.

He'd been accepted to Oklahoma State University before the Christmas trip. And an acceptance letter from the University of Minnesota arrived in Texas while Max was sick in Minnesota, his uncle said.

Nearly 1,400 people attended a memorial service for Max two weeks ago in Texas.

"He exuded care and love for other people," Phil Schwolert said.

"The bottom line is take care of your kids, be close to your kids," he said.

On average, an estimated 24,000 Americans die each flu season, according to the Centers for Disease Control and Prevention. People who are elderly and with certain chronic health conditions are generally at greatest risk from flu and its complications.

The current vaccine is about 60 percent effective, and is considered the best protection available. Max Schwolert had not been vaccinated, nor had the majority of the other pediatric deaths.

Even if kids are vaccinated, parents should be watchful for unusually severe symptoms, said Lyn Finelli of the CDC.

"If they have influenza-like illness and are lethargic, or not eating, or look punky — or if a parent's intuition is the kid doesn't look right and they're alarmed — they need to call the doctor and take them to the doctor," she advised.

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CDC advice on kids: http://www.cdc.gov/flu/protect/children.htm

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Chicago rapper facing jail for parole violation

CHICAGO (AP) — Chicago rapper Chief Keef has been taken into custody after a juvenile court judge decided a video of him firing a semiautomatic rifle at a New York gun range was a violation of probation.

The artist, real name Keith Cozart, was sentenced last year to 18 months' probation after his conviction on aggravated unlawful use of a weapon charges for pointing a gun at police officers.

The Chicago Sun-Times reports (http://bit.ly/VJ1YUt) Judge Carl Anthony Walker said the video showed a disregard for the court's authority. Walker scheduled a Thursday sentencing hearing for the 17-year-old Cozart.

Defense attorney Dennis Berkson told Walker his client never took the gun outside of the range and the target practice was supervised.

Chief Keef's first album, "Finally Rich," was released last year to mixed reviews.

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Information from: Chicago Sun-Times, http://www.suntimes.com/index

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City prepared to pay $33 million in two cop misconduct cases

Chicago Tribune reporter David Heinzmann on news that Mayor Rahm Emanuel seeks to settle two notorious cases of alleged police misconduct. (Posted Jan. 14th, 2013)

Nearly seven years after Christina Eilman wandered out of a South Side police station and into a catastrophe, her tragic entanglement with the Chicago Police Department began to come to an end Monday — with a proposed $22.5 million legal settlement that may be the largest the city ever offered to a single victim of police misconduct.

Though the settlement is a staggering sum on its own, Mayor Rahm Emanuel's administration has placed a second eight-figure police settlement on Tuesday's City Council Finance Committee agenda. A $10.2 million settlement is proposed for one of the victims of notorious former police Cmdr. Jon Burge, bringing to nearly $33 million the amount aldermen could vote to pay victims of police misconduct in a single day.

The latest Burge settlement would be for Alton Logan, who spent 26 years in prison for a murder he did not commit and who alleged in a federal lawsuit that Burge's team of detectives covered up evidence that would have exonerated him — a departure from previous cases that documented torture used by Burge's team to extract false confessions. The Logan case would bring the tab on Burge cases to nearly $60 million when legal fees are counted. Burge is serving 41/2 years in federal prison for lying about the torture and abuse of suspects.

The settlement in the Eilman case would avert a trial detailing the events of May 2006, when the then-21-year-old California woman was arrested at Midway Airport in the midst of a bipolar breakdown. She was held overnight and then released at sundown the next day without assistance several miles away in one of the city's highest-crime neighborhoods.

Alone and bewildered by her surroundings, the former UCLA student was abducted and sexually assaulted before plummeting from a seventh-floor window. She survived but suffered a severe and permanent brain injury, a shattered pelvis, and numerous other broken bones and injuries.

Her lawyer and family declined to comment Monday. The case, which has dragged in the courts for six years, was set to begin trial next week. Pretrial litigation had produced scathing rebukes from federal judges of the city's behavior toward Eilman — both on the street and in court.

The city's argument that it was not responsible for her injuries because she was assaulted by a gang member was blasted in a ruling from the 7th U.S. Circuit Court of Appeals this year. a ruling from the 7th U.S. Circuit Court of Appeals this year. Chief Judge Frank Easterbrook described the Police Department's release of Eilman, who is white, into a high-crime, predominantly African-American neighborhood by saying officers "might as well have released her into the lion's den at the Brookfield Zoo."

While Emanuel's Law Department endured some criticism for delays in the Eilman case since the mayor took office in 2011, he has noted repeatedly that the police misconduct highlighted in these and many other cases are legacies from the Richard M. Daley administration that he — and taxpayers — are stuck with.

The mayor's office referred calls to the city Law Department, but a spokesman there declined to comment.

If approved, the Eilman settlement would surpass the $18 million settlement paid to the family of LaTanya Haggerty, who was mistakenly shot and killed by police in 1999. It is frequently referred to as the city's biggest single-victim settlement.

Ald. Howard Brookins Jr., 21st, said city officials have not taken a hard enough line against police misconduct for years, and now taxpayers are footing the bill.

"We've known this was going to bust our budget, and here we are," Brookins said. "The administration (under Daley) should have made police conduct and behavior a higher priority. They didn't, and now we're seeing these costly settlements over and over, to pay for officers mistreating people."

The Logan case was set to go to trial last month, but on the first day of jury selection, city lawyers decided to settle the case. Logan's attorney Jon Loevy said the settlement includes about $1.5 million in legal fees.

Logan sat in prison for 26 years until a stunning 2008 revelation after another man, convicted murderer Andrew Wilson, died. Wilson had told his attorneys in 1982 that he committed the murder in which Logan was accused, but the lawyers said the attorney-client privilege kept them from going public with the admission until after Wilson's death.

Although relieved the city settled the case instead of battling on, Loevy said his client would gladly give up the $8.7 million to have nearly three decades of his life back.

"I don't know who would take that much money to lose their 20s, 30s and 40s," Loevy said. "From his perspective, no amount of money can make him whole and he'd rather have his life back."

While Logan lost the middle chunk of his life, Eilman dwells in a childlike mental state and feels as though she has lost the rest of her life, her family has told the Tribune.

Hobbled by a brain injury that has permanently impaired her cognitive function, she lives with her parents in suburban Sacramento. She requires constant medical treatment and therapy. Doctors have said she will not get better.

Eilman came to Chicago on May 5, 2006, at a time when her bipolar condition was worsening. When she tried to catch a return flight from Midway to California a couple of days later, she was ranting and screaming and appeared to be out of her mind.

Police officers eventually arrested her and took her to the Chicago Lawn district near Midway. Court records and depositions in the case show that officers were alarmed by Eilman's behavior.

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Dell in talks to go private, shares surge

NEW YORK/SAN FRANCISCO (Reuters) - Dell Inc is in talks with private equity firms on a potential buyout, two sources familiar with the matter told Reuters, confirming reports that sent shares in the world's No. 3 PC maker soaring 13 percent to nearly a eight-month high.

The firms are now holding discussions on a deal with billionaire Chief Executive and founder Michael Dell, who owns about 14 percent of the company, according to one source with knowledge of the matter.

The Wall Street Journal cited unidentified sources as saying TPG and Silver Lake could team up on an offer, possibly in conjunction with other investors such as pension funds. JPMorgan Chase & Co was also involved in the negotiations, it added.

The first source told Reuters any potential deal could be structured as a management-led buyout with Michael Dell at the helm.

Talks had progressed for two to three months, heating up in late 2012, and a deal could be reached in six weeks, the Journal cited sources as saying.

Dell, which has steadily ceded market share to Hewlett Packard and China's Lenovo, declined to comment on what it called rumors and speculation.

The company has lost 40 percent of its value since last year's peak, and is trying to reinvent itself as a seller of higher-margin services to corporations - an internal overhaul that might be conducted away from public scrutiny.

Some analysts say taking the company private, an idea that has surfaced sporadically in past years, makes sense.

But others pointed to the sheer expense of such a deal, an outsized debt burden of some $4.5 billion and murky prospects as a major player in a PC market that's dwindling with the advent of tablets such as Apple Inc's iPad.

"The market value of Dell has come down so much that a buyout has become something that is plausible. They have about $5 billion in net cash and also free cash flow generation that could sustain payments on debt from a leveraged buyout," said S&P Capital IQ analyst Angelo Zino.

"However, we think it's unlikely, given the sheer size of Dell and where the stock is currently trading at."

A buyout of the $19 billion company would be one of the largest deals since the global recession.

Bloomberg first reported that Dell and private equity firms were discussing a deal.

Before news of the deal emerged, Sanford Bernstein analyst Toni Sacconaghi speculated that Dell was worth $12 a share on a sum-of-parts basis, of which the PC business was worth about $4.70. In a report last week, the analyst said Dell could conceivably be split along its PC and enterprises segments, though such an approach would significantly reduce much-needed scale.

DOWNWARD SPIRAL

Shipments of computers by the company, now reinventing itself as a provider of computers and services to corporations and government agencies, plummeted 21 percent in the fourth quarter, according to IDC. In the third quarter, its profit slid 47 percent.

Overall sales of PCs over the holidays slid for the first time in more than five years, according to industry researcher IDC.

On Monday, another industry research firm, Gartner, estimated that Dell lost 2 percentage points of market share in the fourth quarter, slipping to 10.2 percent from 12.2 percent a year earlier.

Dell's fortunes have waxed and waned. Since Michael Dell founded the company in 1984 out of his college dorm room with $1,000, the company has grown into a global PC powerhouse that pioneered just-in-time inventory management and online sales of custom-built computers.

But when Dell handed the reins of his company to long-time lieutenant Kevin Rollins in 2004, sales and customer service began to slip. With the board's blessing, Michael Dell returned in January 2007 to turn his company around, only to run into the global recession and a shift by consumers toward powerful, mobile devices like tablets.

At a Sanford Bernstein investors' conference in 2010, Dell said he had considered taking the company private. He told investors at the time that a transformation of his company that he had hoped to effect upon his return was "incomplete."

Those comments triggered a round of speculation, but most analysts said buying out such a large company would be difficult because of the massive financing requirements.

Michael Dell now owns 244 million shares in the company, according to Thomson Reuters data, and last year was ranked the 22nd richest American with a fortune of $14.6 billion.

Dell's stock soared to an intra-day high of $12.83 in afternoon trade - the highest since May 2012 - after a brief trading suspension. It closed at $12.29.

Its traded bonds also came under pressure over fears of a significant hike in leverage. Its 4.625 percent, 2021 bonds were trading 80 basis points wider at 210 basis points over U.S. Treasuries, while its 2.3 percent, 2015s were about 30 basis points wider at 88 basis points over Treasuries.

"It can be difficult to realize the full value of various corporate assets ... during transition periods, and executing on a long-term transformation as a private company could have advantages," argued ISI analyst Brian Marshall.

(Additional reporting by John Balassi at IFR, Alistair Barr and Noel Randewich in San Francisco, and Jessica Toonkel and Kim Soyoung in New York, Writing by Edwin Chan; Editing by Bernard Orr and Steve Orlofsky)

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AP source: Armstrong tells Oprah Winfrey he doped

AUSTIN, Texas (AP) — After a decade of denial, Lance Armstrong has finally come clean: He used performance-enhancing drugs to win the Tour de France.

The disgraced cyclist made the confession to Oprah Winfrey during an interview taped Monday, a person familiar with the situation told The Associated Press. The person spoke on condition of anonymity because the interview is to be broadcast Thursday on Winfrey's network.

The admission Monday came hours after an emotional apology by Armstrong to the Livestrong charity that he founded and took global on the strength of his celebrity as a cancer survivor who came back to win one of sport's most grueling events.

The confession was a stunning reversal, after years of public statements, interviews and court battles in which he denied doping and zealously protected his reputation.

Winfrey tweeted afterward, "Just wrapped with (at)lancearmstrong More than 2 1/2 hours. He came READY!" She was scheduled to appear on "CBS This Morning" on Tuesday to discuss the interview.

Even before the taping session with Winfrey began around 2 p.m., EST, Armstrong's apology suggested he would carry through on promises over the weekend to answer her questions "directly, honestly and candidly."

The cyclist was stripped of his Tour de France titles, lost most of his endorsements and was forced to leave the foundation last year after the U.S. Anti-Doping Agency issued a damning, 1,000-page report that accused him of masterminding a long-running doping scheme.

About 100 staff members of the charity Armstrong founded in 1997 gathered in a conference room as Armstrong arrived with a simple message: "I'm sorry." He choked up during a 20-minute talk, expressing regret for the long-running controversy tied to performance-enhancers had caused, but stopped short of admitting he used them.

Before he was done, several members were in tears when he urged them to continue the charity's mission, helping cancer patients and their families.

"Heartfelt and sincere," is how Livestrong spokesman Katherine McLane described his speech.

Armstrong later huddled with almost a dozen people before stepping into a room set up at a downtown Austin hotel for the interview.

The group included close friends and advisers, two of his lawyers and Bill Stapleton, his agent, manager and business partner. They exchanged handshakes and smiles, but declined comment when approached by a reporter. Most members of that group left the hotel through the front entrance around 5 p.m., although Armstrong was not with them.

No further details about the interview were available immediately because of confidentiality agreements signed by both camps. But Winfrey promoted it as a "no-holds barred" session, and after the voluminous USADA report — which included testimony from 11 former teammates — she had plenty of material for questions. USADA chief executive Travis Tygart, a longtime critic of Armstrong's, called the drug regimen practiced while Armstrong led the U.S. Postal Service team, "The most sophisticated, professionalized and successful doping program that sport has ever seen."

Armstrong also went after his critics ruthlessly during his reign as cycling champion. He scolded some in public and didn't hesitate to punish outspoken riders during the race itself. He waged legal battles against still others in court.

Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs. She called news of Armstrong's confession "very emotional and very sad," and got choked up as well when asked to comment.

"He used to be one of my husband's best friends and because he wouldn't go along with the doping, he got kicked to the side. Lance could have a positive impact if he tells the truth on everything. He's got to be completely honest," she said.

At least one of his opponents, the London-based Sunday Times, has already filed a lawsuit to recover about $500,000 it paid him to settle a libel case, and Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring yet another lawsuit seeking to recover more than $7.5 million an arbitration panel awarded the cyclist in that dispute.

In addition, former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. The Justice Department has yet to decide whether it will join the suit as a plaintiff.

The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.

Armstrong is said to be worth around $100 million. But most sponsors dropped him after USADA's scathing report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong.

After the USADA findings, he was also barred from competing in the elite triathlon or running events he participated in after his cycling career. World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.

Whether his confession would begin to heal those ruptures and restore that reputation remains to be seen.

Diagnosed with testicular cancer in October 1996, the disease soon spread to his lungs and brains. Armstrong's doctors gave him a 40 percent chance of survival at the time and never expected he'd compete at anything more strenuous than gin rummy. Winning the demanding race less than three years later made Armstrong a hero.

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Jim Litke reported from Chicago.

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