Britney Spears and fiance end yearlong engagement


LOS ANGELES (AP) — Britney Spears announced Friday that she has ended her yearlong engagement, capping a week of changes that included her leaving "The X Factor" and promising fans she was returning her focus to music.


Within hours of confirming her departure from the Fox reality series, Spears also announced that her relationship with talent agent Jason Trawick had ended.


"Jason and I have decided to call off our engagement," Spears said in the statement. "I'll always adore him and we will remain great friends."


Spears' publicist Jeff Raymond said the breakup was a difficult decision made by "two mature adults."


"I love and cherish her and her boys, and we will be close forever," Trawick said in a joint statement that was first reported by People magazine.


Trawick also resigned his role Friday as a Spears' co-conservator, with Superior Court Judge Reva Goetz approving his departure from the case.


Spears and Trawick got engaged in December 2011 and he was added as her co-conservator in April.


Spears, 31, has been under a court-supervised conservatorship since February 2008, with her father and another co-conservator, Andrew Wallet, having control over numerous aspects of her personal life. The case was opened after several incidents of erratic behavior by the pop singer and a pair of hospitalizations, but Spears has recovered and she appeared weekly on "X Factor."


She said in a statement that judging young talent made her miss performing. "I can't wait to get back out there and do what I love most," she said in a statement.


Her father Jamie Spears met with Goetz for about an hour on Friday but left before a hearing where Trawick's resignation was announced.


Trawick has served as Spears' agent and the pair started dating in 2009.


Trawick did not have authority over Spears' finances, which have rebounded since her public meltdown. Goetz recently reviewed and approved of an accounting that showed Spears ended 2010 with more than $27.5 million in assets, including nearly $15 million in cash.


Attorneys handling the case are expected to file updated financial statements in the coming months.


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


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Former Lab Technician Denies Faulty DNA Work in Rape Cases





A former New York City laboratory technician whose work on rape cases is now being scrutinized for serious mistakes said on Friday that she had been unaware there were problems in her work and, disputing an earlier report, denied she had resigned under pressure.




The former lab technician, Serrita Mitchell, said any problems must have been someone else’s.


“My work?” Ms. Mitchell said. “No, no, no, not my work.”


Earlier, the city medical examiner’s office, where Ms. Mitchell said she was employed from 2000 to 2011, said it was reviewing 843 rape cases handled by a lab technician who might have missed critical evidence.


So far, it has finished looking over about half the cases, and found 26 in which the technician had missed biological evidence and 19 in which evidence was commingled with evidence from other cases. In seven cases where evidence was missed, the medical examiner’s office was able to extract a DNA profile, raising the possibility that detectives could have caught some suspects sooner.


The office declined to identify the technician. Documents said she quit in November 2011 after the office moved to fire her, once supervisors had begun to discover deficiencies in her work. A city official who declined to be identified said Ms. Mitchell was the technician.


However, Ms. Mitchell, reached at her home in the Bronx on Friday, said she had never been told there were problems. “It couldn’t be me because your work gets checked,” she said. “You have supervisors.”


She also said that she had resigned because of a rotator cuff injury that impeded her movement. “I loved the job so much that I stayed a little longer,” she said, explaining that she had not expected to stay with the medical examiner’s office so long. “Then it was time to leave.”


Also on Friday, the Legal Aid Society, which provides criminal defense lawyers for most of the city’s poor defendants, said it was demanding that the city turn over information about the cases under review.


If needed, Legal Aid will sue the city to gain access to identifying information about the cases, its chief lawyer, Steven Banks, said, noting that New York was one of only 14 states that did not require routine disclosure of criminal evidence before trial.


Disclosure of the faulty examination of the evidence is prompting questions about outside review of the medical examiner’s office. The City Council on Friday announced plans for an emergency oversight committee, and its members spoke with outrage about the likelihood that missed semen stains and “false negatives” might have enabled rapists to go unpunished.


“The mishandling of rape cases is making double victims of women who have already suffered an indescribably horrific event,” said Christine C. Quinn, the Council speaker.


A few more details emerged Friday about a 2001 case involving the rape of a minor in Brooklyn, in which the technician missed biological evidence, the review found. The victim accused an 18-year-old acquaintance of forcing himself on her, and he was questioned by the police but not charged, according to a law enforcement official.


Unrelated to the rape, he pleaded guilty in 2005 to third-degree robbery and served two years in prison. The DNA sample he gave in the robbery case was matched with the one belatedly developed from evidence the technician had overlooked in the 2001 rape, law enforcement officials said. He was recently indicted in the 2001 rape.


Especially alarming to defense lawyers was the possibility that DNA samples were cross-contaminated and led to false convictions, or could do so in the future.


“Up to this point,” Mr. Banks said, “they have not made information available to us, as the primary defender in New York City, to determine whether there’s an injustice that’s been done in past cases, pending cases, or allowing us to be on the lookout in future cases.” He added, “If it could happen with one analyst, how does anyone know that it stops there?”


The medical examiner’s office has said that the risk of cross-contamination was extremely low and that it does not appear that anyone was wrongly convicted in the cases that have been reviewed so far. And officials in at least two of the city’s district attorneys’ offices — for Brooklyn and Manhattan — said they had not found any erroneous convictions.


But Mr. Banks said the authorities needed to do more, and that their statements thus far were the equivalent of “trust us.”


“Given what’s happened,” he said, “that’s cold comfort.”


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Boeing Dreamliner to undergo federal safety review









Plagued by one mishap after another, Boeing Co.'s much-heralded 787 Dreamliner passenger jet for the 21st century is feeling new heat from federal regulators.


Days after one of the planes caught fire while parked in Boston and another experienced a fuel leak, the Federal Aviation Administration has launched an unusual "comprehensive safety review of Boeing 787 critical systems." This includes a sweeping evaluation of the way Boeing designs, manufactures and assembles the aircraft.


The review — just 17 months after the FAA gave the go-ahead to the new $200-million-plus plane — does not ground the 50 Dreamliners currently being flown by eight airlines around the globe.





Since the inception of its next-generation passenger jet, Boeing has touted the revolutionary way the Dreamliner is made and the way it operates. But those novel technologies will now attract greater scrutiny from U.S. regulators after recent events have raised questions about Dreamliner safety.


New planes, in general, have "teething" issues as they are introduced. But, industry analysts said, the type of review the Dreamliner is undergoing is rare, and passenger jets haven't been subject to this sort of sweeping government review for decades.


Boeing said it will participate in the review with the FAA and believes the process will underscore customers' and the traveling public's confidence in the reliability of the aircraft.


U.S. Transportation Secretary Ray LaHood and FAA chief Michael Huerta launched the effort Friday at a news conference in Washington, revealing plans for a "comprehensive safety review of Boeing 787 critical systems." This includes a complete evaluation of the aircraft, including an assessment of the way Boeing designs, manufactures and assembles the aircraft.


The move comes despite the "unprecedented" certification process in which FAA technical experts logged 200,000 hours of work over nearly two years and flew on numerous test flights, Huerta said. There were more than a dozen new special conditions developed during the certification process because of the Dreamliner's innovative design.


"The purpose of the review is to validate the work that we've done," Huerta said, "and to look at the quality and other processes to ensure that effective oversight is being done."


Certification of the Dreamliner was completed Aug. 25, 2010, and the first plane was delivered to All Nippon Airways a month later. It was more than three years late because of design problems and supplier issues.


The Dreamliner, a twin-aisle aircraft that can seat 210 to 290 passengers, is the first large commercial jet with more than half its structure made of composite materials (carbon fibers meshed together with epoxy) rather than aluminum sheets. Another innovative application is the changeover from hydraulically actuated systems typically found on passenger jets to electrically powered systems involving lithium ion batteries.


For instance, Boeing has said electric brakes "significantly reduce the mechanical complexity of the braking system and eliminate the potential for delays associated with leaking brake hydraulic fluid, leaking valves and other hydraulic failures." Because of these technologies, Boeing says, the new plane burns 20% less fuel than other jetliners of a similar size.


But the use of such extensive electronic systems was called into question when a smoldering fire was discovered Monday on the underbelly of a Dreamliner operated by Japan Airlines Co. after the 173 passengers and 11 crew members had deplaned at the gate.


The incident prompted the FAA and the National Transportation Safety Board to investigate.


"We don't know the cause of the fire, but it's a serious issue," said Scott Hamilton, an aviation industry consultant and managing director of Leeham Co. in Issaquah, Wash. "Did the FAA miss something? Did Boeing have an oversight in the design process? Was there a problem in the supply chain? These are questions we don't have answers to."


In December, the FAA ordered inspections of fuel line connectors because of risks of leaks and fires.


On the same day, a United Airlines Dreamliner flight from Houston to Newark, N.J., was diverted to New Orleans after an electrical problem popped up mid-flight. Qatar Airways, which had accepted delivery of a Dreamliner just a month earlier, grounded the aircraft for the same problem that United experienced.


Still, both LaHood and Huerta insist the Dreamliner is safe. Ray Conner, Boeing's chief executive of commercial aircraft, attended the conference and said the company was "fully committed to resolving any issue related to the safety" of the Dreamliner.


The Chicago company has taken 848 orders for Dreamliners from airlines and aircraft leasing firms around the world. The price ranges from $206.8 million to $243.6 million per jet, depending on the version ordered.


Major parts for the plane are assembled at various locations worldwide — including Southern California, Russia, Japan and Italy — and then shipped to Boeing's facilities in Everett, Wash., where they are "snapped together" in three days once production hits full speed, compared with a month the conventional way.


Boeing currently is making five Dreamliners a month. The company plans to reach 10 a month late this year.


Richard Aboulafia, an aerospace analyst with Teal Group Corp., a Virginia research firm, said the review will be beneficial for the Dreamliner program in the long run.


"There's no showstopper here; it's a short-term embarrassment for the company," he said. "Then again, this program is full of short-term embarrassments."


william.hennigan@latimes.com





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Lawsuit filed on behalf of 4 victims in Jenni Rivera plane crash









A company owned by the late Mexican American singer Jenni Rivera was named in a lawsuit filed Thursday on behalf of the four members of her entourage who were killed along with her in a Dec. 9 plane crash.


The suit, filed in Los Angeles County Superior Court, seeks punitive damages against the current owners of the jet, as well as the previous owner, which sold the plane last year.


The negligence suit names Starwood Management, Rodatz Financial Group Inc., McOco Inc. and Jenni Rivera Enterprises Inc.





Attorneys named Rivera's company because of its role in choosing to use the 43-year-old Learjet 25.


The plane took off from Monterrey, Mexico, and crashed into mountainous terrain after nose-diving 28,000 feet in 30 seconds. Rivera, the four other passengers and the two pilots were killed.


"We cast a wide net to find out exactly who is responsible, and it may be that they're not," attorney Paul Kiesel said. "We have named Rivera Enterprises, who likely arranged the charter of this plane — in hindsight a very bad decision."


The lawsuit seeks punitive damages against current owners Starwood and Rodatz, as well as previous owner McOco, which sold the plane last June. The attorneys said they were not seeking punitive damages against the singer's company.


The suit was filed on behalf of the estates of publicist Arturo Rivera, makeup artist Jacobo Yebale, attorney Mario Macias and hairstylist Jorge "Gigi" Sanchez.


Pedro Rivera Jr., the singer's brother, said he was unaware of the lawsuit and doubted his sister's company would be found at fault.


"That will more likely have to do with the airplane itself," he said in Spanish via telephone. "Everyone has a right to file a lawsuit. They all had families."


Executives with Starwood told The Times shortly after the crash that the jet was perfectly maintained.


According to aviation records, the aircraft suffered "substantial" damage in 2005 when a fuel imbalance caused one wingtip to weigh as much as 300 pounds more than the other. The unnamed pilot lost control and struck a runway distance marker while landing in Amarillo, Texas. Nobody was injured.


The cause of December's fatal crash has not been determined, and it could take more than a year before the National Transportation Safety Board and Mexican authorities wrap up their investigations, Kiesel said, adding that it wasn't necessary to wait for the results before filing the suit.


At a downtown Los Angeles news conference Thursday, attorneys also took issue with the two pilots, 78-year-old Miguel Soto and 20-year-old Alejandro Torres. Although Soto had a lot of flying hours under his belt, he was not licensed to fly at altitudes above 18,000 feet, and Torres was not licensed to fly the jet, the lawsuit alleges.


"Neither pilot was licensed to operate this aircraft at the time and altitude it was flying," Kiesel said. He said the pilots weren't named in the suit because "the company is at fault, not the employees."


Starwood, Rodatz and McOco could not be reached for comment.


adolfo.flores@latimes.com


Times staff writer Scott Gold contributed to this report.





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Native Canadians could block development, chief warns






OTTAWA (Reuters) – Native Canadians are so angry that they could resort to blocking resource development and bring the economy “to its knees” unless the Conservative government addresses their grievances, an influential chief said on Thursday.


Native Canadian chiefs are due to meet with Prime Minister Stephen Harper on Friday to discuss the poor living conditions facing many of Canada’s 1.2 million aboriginals.






“We have had enough. Our young people have had enough. Our women have had enough … . We have nothing left to lose,” said Grand Chief Derek Nepinak from the province of Manitoba.


Activists have already blockaded some rail lines and threatened to close Canada’s borders with the United States in a campaign they call “Idle No More.”


Canada has 633 separate native “bands,” each of which have their own communities and lands, and not all share the same opinions. The chief of the Assembly of First Nations, the aboriginal umbrella group, said his members had come to a tipping point, but he made no mention of damaging the economy.


“You cannot ignore what is happening with Idle No More… We will drive the final stake in the heart of colonialism and it will happen in this generation,” Shawn Atleo told a separate news conference.


“First Nations are not opposed to resource development, they are just not supportive of development at any cost,” he said.


Native Canadian leaders say they want more federal money, a greater say over what happens to resources on their land and more respect from the federal Conservative government.


“These are demands, not requests,” said Nepinak. “The Idle No More movement has the people – it has the people and the numbers – that can bring the Canadian economy to its knees. It can stop Prime Minister Stephen Harper’s resource development plan,” Nepinak told reporters in Ottawa.


“We have the warriors that are standing up now, that are willing to go that far. So we’re not here to make requests, we’re here to demand attention,” he said.


Aboriginal bands are unhappy about Enbridge Inc’s plans to build a pipeline from the oil sands of Alberta to the Pacific province of British Columbia, and some say they will not allow the project to go ahead.


Some aboriginal bands oppose the Enbridge pipeline on the grounds that it is too environmentally dangerous while others say the company did not do enough to consult them before applying for permission to go ahead with the project.


“DIPLOMATIC HAND”


Nepinak said he wants to extend a “diplomatic hand” toward resolving the issues and gave no details about what he meant by bringing the economy to its knees.


Nepinak and other Manitoba chiefs are also demanding that Ottawa rescind parts of two recent budget acts they say reduce environmental protection for lakes and rivers, and make it easier to sell lands on the reserves where many natives live.


“We’ve been working tirelessly to gain access through various channels into this Harper regime … . How do we trust the words of this prime minister?” Nepinak asked.


Successive Canadian governments have struggled for decades to improve the life of aboriginals.


Ottawa spends around C$ 11 billion ($ 11.1 billion) a year on its aboriginal population, yet living conditions for many are poor, particularly for those on reserves with high rates of poverty, addiction, joblessness and suicide.


As part of the Idle No More campaign, protesters blocked a Canadian National Railway Co line in Sarnia, Ontario, in late December and early January.


($ 1=$ 0.99 Canadian)


(Reporting by David Ljunggren; Editing by Peter Galloway, Xavier Briand and David Brunnstrom)


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Spielberg's in at Oscars, Bigelow, Affleck are out


BEVERLY HILLS, Calif. (AP) — Steven Spielberg had a great day at the Academy Awards nominations, where his Civil War saga "Lincoln" led with 12 nominations.


It was not so great for Kathryn Bigelow, Tom Hooper and Ben Affleck, whose films did well but surprised — dare we say shocked? — Hollywood by failing to score directing nominations for the three filmmakers.


"I just think they made a mistake," said Alan Arkin, a supporting-actor nominee for Affleck's Iran hostage-crisis tale "Argo."


"Lincoln," ''Argo," Bigelow's Osama bin Laden manhunt thriller and Hooper's Victor Hugo musical "Les Miserables" landed among the nine best-picture contenders Thursday.


Also nominated for the top honor were the old-age love story "Amour"; the independent hit "Beasts of the Southern Wild"; the slave-revenge narrative "Django Unchained"; the shipwreck story "Life of Pi"; and the lost-souls romance "Silver Linings Playbook."


A mostly predictable bunch. But it's baffling how Bigelow — the first woman to earn the directing Oscar for her 2009 best-picture winner "The Hurt Locker" — missed out on a nomination for one of last year's most-acclaimed films.


"Yes, it was a surprise," Spielberg said of Bigelow. "But I've been surprised myself through the years, so I know what it feels like."


Spielberg was snubbed for a directing slot on 1985's "The Color Purple," which earned 11 nominations, including best picture. He also was overlooked for director on 1975's "Jaws," another best-picture nominee.


"I never question the choices the academy branches make, because I've been in the same place that Kathryn and Ben find themselves today," said Spielberg, who finally got his Oscar respect in the 1990s with best-picture and director wins for "Schindler's List" and another directing trophy for "Saving Private Ryan." ''I'm grateful if I'm nominated, and I've never felt anything other than gratitude even when I'm not — gratitude for at least having been able to make the movie. So I never question the choices."


Especially this time, when "Lincoln" has positioned itself as the film to beat at the Feb. 24 Oscars. Its nominations include best actor for Daniel Day-Lewis for his monumental performance as Abraham Lincoln, supporting actress for Sally Field as Mary Todd Lincoln and supporting actor for Tommy Lee Jones as abolitionist firebrand Thaddeus Stevens.


Oscar directing contenders usually are identical or at least line up closely with those for the Directors Guild of America Awards. But only Spielberg and "Life of Pi" director Ang Lee made both lists this time.


The Directors Guild also nominated Affleck, Bigelow and Hooper, but the Oscars handed its other three slots to David O. Russell for "Silver Linings Playbook" and two real longshots: veteran Austrian filmmaker Michael Haneke for "Amour" and newcomer Benh Zeitlin, who made his feature debut with "Beasts of the Southern Wild."


Zeitlin, whose low-budget, dream-like film about a wild child in Louisiana's flooded backwoods won the top honor at last year's Sundance Film Festival, said he never expected to be competing "alongside the greatest filmmakers alive."


"I'm completely freaking out," Zeitlin said. "Those guys taught me how to make films. The VHS pile that was on the VCR when I was born was past Spielberg movies, and that's why I started wanting to do this, was watching them thousands and thousands of times."


Other nominees were caught off guard over how the category shook out.


"I would be lying if I didn't say I was surprised," Russell, a past nominee for "The Fighter," said about Bigelow.


Lee, who won the directing Oscar for "Brokeback Mountain," agreed that there were surprises — but pleasant ones, particularly for Zeitlin's inclusion.


"Newcomers, veterans, a European," Lee said. "It's great company, and it's an honor to line up with them, and encouraging because there is a newcomer."


Colleagues of snubbed filmmakers were not so happy.


"That put a damper on my enthusiasm," ''Argo" co-star Arkin said of Affleck, an A-lister who's arguably proving himself a better director than actor. "I thought his work was the work of an old master, not somebody with just two films under his belt. I thought it was an extraordinary piece of directing."


"I would have loved him to have been recognized in this," Hugh Jackman, a best-actor nominee as Hugo's tragic hero Jean Valjean for "Les Miserables," said of director Hooper. "But no one will be able to take away the achievement, nor really that the eight nominations that 'Les Miz' has are more shared with him than with anyone."


Composer Alexandre Desplat, who wrote the music for "Zero Dark Thirty" and "Argo" and earned a best-score nomination for the latter, said he was puzzled over Affleck and Bigelow's exclusion.


"I think they both deserved to be nominated," Desplat said. "Unfortunately, I don't decide."


"Zero Dark Thirty" has had backlash in Washington, where some lawmakers say it falsely suggests that torture produced a tip that led the U.S. military to Bin Laden. It's hard to imagine that affecting the film's Oscar nominations, though, given Hollywood's history of playing loose with facts in depicting true-life stories.


The academy's directing snubs virtually take "Argo," ''Les Miserables" and "Zero Dark Thirty" out of the best-picture race, since a movie almost never wins the top prize if the filmmaker is not nominated. It can happen — 1989's "Driving Miss Daisy" did it — but a directing nomination usually goes hand-in-hand with a best-picture win.


The nominations held other surprises. "Amour" won the top prize at last May's Cannes Film Festival but mainly was considered a favorite for the foreign-language Oscar. It wound up with five nominations, the same number as "Zero Dark Thirty," which came in with expectations of emerging as a top contender.


Along with best-picture, director and foreign-language film, "Amour" picked up nominations for Haneke's screenplay and best actress for Emmanuelle Riva as an ailing, elderly woman tended by her husband.


"It's the last stage of my life, so this nomination is a gift to me, a dream I could never had imagined," Riva said. "Michael's talent is to make the film real. ... That's why it touched the world. We are all little, fragile people on this earth, sometimes nasty, sometimes generous."


Riva is part of a multi-generational spread: At 85, Riva is the oldest best-actress nominee ever, while 9-year-old Quvenzhane Wallis is the youngest ever for her role as the spirited bayou girl in "Beasts of the Southern Wild."


Spielberg matched his personal Oscar best as "Lincoln" tied the 12 nominations that "Schindler's List" received.


Two of Spielberg's stars could join the Oscar super-elite. Both Day-Lewis and Field have won two Oscars already. A third would put them in rare company with previous triple winners Ingrid Bergman, Walter Brennan, Jack Nicholson and Meryl Streep. Katharine Hepburn holds the record with four acting Oscars.


A best-picture win would be Spielberg's second, while another directing win would be his third, a feat achieved only by Frank Capra and William Wyler, who each earned three directing Oscars, and John Ford, who received four.


"Lincoln" also was the ninth best-picture nominee Spielberg has directed, moving him into a tie for second-place with Ford. Only Wyler directed more best-picture nominees, with 13.


"I think Steven is a full-fledged genius. I think he has transformed the motion-picture industry more than once, and he's constantly pushing the envelope and changing," Field said. "He stands alone. And he has the most profound respect, and he's a scholar of John Ford and William Wyler and many others. ... He's a scholar of all of this because he's so endlessly curious."


___


AP entertainment writers Christy Lemire, Sandy Cohen, Anthony McCartney and Derrik Lang in Los Angeles and AP writers Jill Lawless in London and Thomas Adamson in Paris contributed to this report.


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Parental Consent Rule May Proceed for a Circumcision Ritual, a Judge Says





New York City health officials may proceed temporarily with a plan to require parental consent before an infant may undergo a particular Jewish circumcision ritual, a federal judge ruled Thursday.




City officials say 12 cases of herpes simplex virus have likely resulted from the procedure, known as metzitzah b’peh, since 2000, including one Brooklyn case reported this week. Two infants died, and two suffered permanent brain damage. Most Jews no longer practice metzitzah b’peh, in which the circumciser uses his mouth to suck blood from the wound, but it remains common among some ultra-Orthodox communities.


Citing the risk of infection, health officials in September introduced a regulation that would require parents to provide written consent stating that they were aware of the health risks.


But the Central Rabbinical Congress of the United States and Canada, Agudath Israel of America, and the International Bris Association sued in October to stop the rule from taking effect, calling it an infringement of their constitutional rights. They also denied the procedure posed a risk and asked a federal court to put the rule on hold while the litigation proceeded.


In denying the request for a preliminary injunction, Judge Naomi Reice Buchwald of the United States District Court for the Southern District wrote that the risks were clear.


“In light of the quality of the evidence presented in support of the regulation, we conclude that a continued injunction against enforcement of the regulation would not serve the public interest,” she wrote.


City lawyers said they were gratified by the ruling, but Andrew Moesel, a spokesman for the plaintiffs, said the groups would appeal. “We continue to believe that this case is a wrongful and unnecessary intrusion into the rights of freedom of religion and speech,” he said.


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Herbalife fires back at hedge fund giant









Herbalife Chief Executive Michael Johnson was tired of a powerful hedge fund manager bad-mouthing his company.


So he put on a show Thursday before hundreds of investors at the Four Seasons hotel in Manhattan, rebutting claims that the Los Angeles nutritional supplement company is a pyramid scheme. The presentation accused hedge fund giant Bill Ackman of lies and snobbery, compared Herbalife to the Girl Scouts and featured the company's president entreating that "the world needs more hugs."


Who says Wall Street is more boring these days?





The company's two-hour defense of itself is the latest in a battle since Ackman's Pershing Square Capital Management labeled Herbalife as "the best-managed pyramid scheme in the history of the world," during a similar presentation he made late last month. The outspoken fund manager has made a $1-billion bet that the stock would plunge in value.


"Just the very nature of the 'battle' has never been seen in the history of the Earth," said Tim Ramey, an analyst with D.A. Davidson and Co. "This was a very, very orchestrated attack."


Herbalife has hired a battalion of researchers to prove that it has a legitimate and stable business model. Executives held back no punches Thursday before a crowd of investors and analysts, labeling Ackman an elitist who made "false statements," "distortions" and "misrepresentations" about Herbalife and vowing to use "every means available to protect our reputation."


"In recent weeks, there's been a tremendous amount of misinformation about Herbalife," Johnson said. "This misinformation has found its way into the marketplace. Therefore we are sitting with you to correct some of this today."


In addition to outside experts brought in to bolster Herbalife's claims, company executives went through Pershing's presentation last month, disputing individual slides.


To the complaint that Herbalife is not focused on its products, Chief Operating Officer Rich Goudis showed figures indicating that the company spends millions on research and development.


To a Pershing slide that accused Herbalife of having a small distribution network, the company countered with a map of more than 300 company-run distribution points and showing its expansion in Indonesia and South Korea.


To a Pershing slide showing Herbalife products as more expensive than competitors' per 200-calorie servings, the company offered its own slide that compared the prices of the products per unit and showed costs in line with those of its competitors.


"Pershing intentionally used a misleading metric," Goudis said. "They did this to knowingly create a false impression."


They paraded out experts.


Kim Rory, representing Lieberman Research Worldwide, said distributors she surveyed had joined Herbalife because they wanted to get a discount on the products for personal use. Few signed up because they thought they'd make a large amount of money, and about two-thirds would recommend being a distributor to friends, she said.


Anne Coughlan, a professor at the Kellogg School of Management, defended Herbalife's marketing structure and disputed the allegation that it is a pyramid scheme.


"I didn't even see a scintilla of evidence that would suggest to me any hint that this company is running anything but a legitimate multi-level marketing program," she said.


Perhaps the most personal attacks came from Herbalife President Des Walsh, who said he was "highly offended" by Ackman's portrayal of Herbalife's nutrition clubs and defended the company for bringing nutritional products to poor neighborhoods.


After showing a video featuring happy distributors in crowded nutrition clubs, Walsh suggested that Ackman was out of touch with real America.


"This doesn't look like a country club in Westchester, Connecticut, but let me tell you, inside this club is real America," he said. (Earlier in the presentation, Walsh explained that people come to the club for a hug, adding, "the world needs more hugs.")


His comments echo a note sent out last week by D.A. Davidson analyst Ramey, who has a "buy" rating on Herbalife.


"Perhaps where Mr. Ackman lives he never sees a car with the 'Lose weight, ask me how' message across the rear window," he wrote. "I can tell Mr. Ackman that in my hometown, which is not quite Chappaqua, Herbalife is an iconic and widely recognized brand."


Ackman responded quickly Thursday, saying that Herbalife's presentation "distorted, mischaracterized and outright ignored large portions of our presentation," and that he had been contacted by people who provided more information into Herbalife's business practices, which he will soon reveal.


The unusual fight on Wall Street ramped up in December, when Ackman laid out his case against Herbalife in a three-hour, 200-plus slide presentation. He questioned whether the company was focused on recruiting new distributors, who pay to join the company, instead of on selling products. His announcement sent the company's stock down 36% and turned heads when analysts heard he'd sold short 20 million Herbalife shares.


Ackman's biggest beef with Herbalife focused on its so-called multi-level marketing model, which he said led to only those at the top of the company making money. More than 90% of distributors break even or lose money, he said. Ackman even drew UCLA into the controversy, saying Herbalife mentioned a lab at the university multiple times during each investor presentation to lend itself legitimacy.


Herbalife shares recovered some of their losses in the weeks after Ackman's presentation as some investors expressed confidence in the company. Hedge fund Third Point said it was taking an 8.2% stake in Herbalife, betting that the company would survive Ackman's assault.


Analysts at Thursday's meeting seemed supportive of Herbalife, with some expressing their belief in the company during a question-and-answer period after the presentation. One analyst urged the company to fight back against Pershing Square's method of "slandering" the company.


"It was a good, thorough presentation that certainly accomplished the job of defending the legitimacy of their business model," Ramey said.


Still, not all investors were convinced by the presentation. Herbalife's stock closed down 71 cents, or 1.8%, at $39.24. That may be because on Wednesday the Securities and Exchange Commission opened an investigation into Herbalife, according to published reports.


alana.semuels@latimes.com





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Irvine City Council overhauls oversight, spending on Great Park









Capping a raucous eight-hour-plus meeting, the Irvine City Council early Wednesday voted to overhaul the oversight and spending on the beleaguered Orange County Great Park while authorizing an audit of the more than $220 million that so far has been spent on the ambitious project.


A newly elected City Council majority voted 3 to 2 to terminate contracts with two firms that had been paid a combined $1.1 million a year for consulting, lobbying, marketing and public relations. One of those firms — Forde & Mollrich public relations — has been paid $12.4 million since county voters approved the Great Park plan in 2002.


"We need to stop talking about building a Great Park and actually start building a Great Park," council member Jeff Lalloway said.





The council, by the same split vote, also changed the composition of the Great Park's board of directors, shedding four non-elected members and handing control to Irvine's five council members.


The actions mark a significant turning point in the decade-long effort to turn the former El Toro Marine base into a 1,447-acre municipal park with man-made canyons, rivers, forests and gardens that planners hoped would rival New York's Central Park.


The city hoped to finish and maintain the park for years to come with $1.4 billion in state redevelopment funds. But that money vanished last year as part of the cutbacks to deal with California's massive budget deficit.


"We've gone through $220 million, but where has it gone?" council member Christina Shea said of the project's initial funding from developers in exchange for the right to build around the site. "The fact of the matter is the money is almost gone. It can't be business as usual."


The council majority said the changes will bring accountability and efficiencies to a project that critics say has been larded with wasteful spending and no-bid contracts. For all that has been spent, only about 200 acres of the park has been developed and half of that is leased to farmers.


But council members Larry Agran and Beth Krom, who have steered the course of the project since its inception, voted against reconfiguring the Great Park's board of directors and canceling the contracts with the two firms.


Krom has called the move a "witch hunt" against her and Agran. Feuding between liberal and conservative factions on the council has long shaped Irvine politics.


"This is a power play," she said. "There's a new sheriff in town."


The council meeting stretched long into the night, with the final vote coming Wednesday at 1:34 a.m. Tensions were high in the packed chambers with cheering, clapping and heckling coming from the crowd.


At one point council member Lalloway lamented that he "couldn't hear himself think."


During public comments, newly elected Orange County Supervisor Todd Spitzer chastised the council for "fighting like schoolchildren." Earlier this week he said that if the Irvine's new council majority can't make progress on the Great Park, he would seek a ballot initiative to have the county take over.


And Spitzer angrily told Agran that his stewardship of the project had been a failure.


"You know what?" he said. "It's their vision now. You're in the minority."


mike.anton@latimes.com


rhea.mahbubani@latimes.com





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Facebook to hold press event, stock passes $30






NEW YORK (AP) — Shares of Facebook are pushing above $ 30 for the first time since July after it sent out invitations to “come and see what we’re building” Tuesday at its headquarters in Menlo Park, Calif.


The company will say nothing more about the event. Speculation Wednesday ranged from a Facebook phone, something the company has consistently denied exists, to new search capabilities that would put it into direct competition with Google Inc.






The company emailed invitations to reporters and bloggers Tuesday and by Wednesday, shares passed the $ 30 mark for the first time since July.


Though still below its initial public offering price of $ 38, shares of Facebook Inc. have risen steadily since November as investors grow more confident that the social media site can make money through its growing mobile audience.


Social Media News Headlines – Yahoo! News





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