– Molina Healthcare Inc.
was hit with a purported securities class action lawsuit in U.S. District Court in Los Angeles as a result of a profit warning last week that caused the company’s stock to drop by half. The company said it expected to lose 15 to 20 cents in the second quarter instead of making a profit and lowered its earnings forecast for the year to 73 cents to 80 cents per share from $2.40 to $2.45 per share. The lawsuit, filed by Schiffrin & Barroway LLP, accused the company of failing to keep a tab of growing expenses and reach favorable contracts with providers as it aggressively expanded.
– DreamWorks Animation SKG Inc.
and McDonald’s Corp. agreed to a two-year marketing partnership that will bring Shrek and other film characters to McDonald’s commercials and promotions. The non-exclusive agreement covers two movies a year beginning with “Shrek 3,” slated for 2007, the companies said in a statement. As part of the promotional agreement, DreamWorks will create original animation for some McDonald’s advertisements, and the Glendale-based animation firm will work with hamburger giant to support various company programs.
– CKE Restaurants Inc.
said that same-store sales in the four weeks ended July 18 rose at a slower pace than the year prior at its Carl’s Jr. and Hardee’s restaurant chains, boosted by new menu items. Sales at the Carpinteria-based company’s Carl’s Jr. restaurants open at least a year rose 1.3 percent, versus a 9.7 percent increase in the year-ago period. Hardee’s had a 0.4 percent gain, as compared with last year’s 7.2 percent increase.
– Evergreen Development LLC
purchased a 20-acre, 17-building apartment community near Texas A & M; University for $34.6 million to add to its growing portfolio. The series of three-story buildings sold by limited partnership Fairfield College Station, LP contain nearly 300,000 square feet in 308 apartments which are used as off-campus housing in the city of College Station. The acquisition is part of the Pasadena-based company’s effort to buy apartments and office buildings for between $15 million and $50 million in the West, Southeast, Southwest and Midwest.
– Occidental Petroleum Corp.
and Dubai-based Thani Emirates Petroleum Co. won exploration bids to look for oil in Yemen, in an effort to turn around the country’s ongoing oil-output decline. Occidental won one contract and Thani won three, according to Yemen’s state-owned Petroleum Exploration and Production Authority. Other winners included Korea National Corp. and Oil Search Ltd. of Papua New Guinea. Yemen will offer rights to nearly 11 exploration blocs in a round of bidding by the end of the year or early in 2006.
