REVIEW
September 5 – 11
Hughes Judgment: EConnect Inc.’s former chief executive Thomas Hughes will pay a $120,000 fine stemming from civil charges that he tried to boost the company’s stock with false press releases. The fine is part of a consent judgment issued by a federal court barring Hughes from serving as an officer or director at another publicly traded company. Hughes still faces a possible prison term of up to 30 years after pleading guilty to three counts of securities fraud and one count of criminal contempt.
Music Suits: The recording industry filed 261 lawsuits against individuals it says have illegally distributed at least 1,000 copyrighted music files in its first series of suits against “egregious filers.” The latest legal tactic is an attempt to discourage users from posting music on free sites. The Recording Industry Association of America has previously sued file-sharing networks such as Kazaa, Grokster and now-defunct Napster Inc.
Pump Inquiry: As the average price of a gallon of self-serve regular gasoline fell another 2 cents in L.A., State Attorney General Bill Lockyer proposed several steps to stem unexpected gyrations in the cost of gas. They include developing new fuel reserves and tapping new pipelines. Lockyer’s office issued a report concluding that between January and March, California oil refiners’ margins increased 152 percent. A trade group questioned the report’s methodology.
Bond Judgment: Canadian Imperial Bank of Commerce was told by a Los Angeles Superior Court jury to pay $52 million to TCW Group Inc., Oaktree Capital Management LLC and Pacholder Associates Inc. The three money managers accused Toronto-based CIBC of deception in a 1997 bond deal involving now-defunct Renaissance Cosmetics.
Rent Study: Residents of Los Angeles must earn $21.98 an hour more than three times the state’s minimum wage to pay rent on an average two-bedroom apartment, according to a study by the National Low Income Housing Coalition. Nationally, the hourly wage needed to afford a market-rate apartment was $15.21 last year.
Early Score: Tampa Bay’s 17-0 win over Philadelphia was the highest rated “Monday Night Football” telecast in two years. The game was watched by 13 percent of the 108.4 million U.S. households with televisions, 2 percent higher than last year’s season-opener on ABC.
Blair Files: Having been turned down by the major New York publishers, ex-New York Times reporter Jayson Blair has made a deal with Beverly Hills-based New Millennium Press to publish his memoir. The book, “Burning Down My Master’s House: My Life and the New York Times,” will be ready for release next spring. Separately, New Millennium Entertainment sought bankruptcy protection after it was ordered to pay $2.8 million to a bookstore owner for breach of contract.
Earnings Results: Earl Scheib Inc. reported first-quarter net income of $118,000, compared with a net loss of $369,000 for the like period a year ago. Revenue for the Sherman Oaks-based paint and body shop operator rose 1.4 percent, to $13.3 million. Korn/Ferry International reported a first-quarter loss of $9.2 million, compared with a loss of $583,000 for the like period a year ago. Revenue for the Los Angeles-based executive recruiting firm fell 13 percent, to $89.8 million.
Bonus Time?: Vivendi Universal SA executives may receive bonuses after the media company finishes selling a controlling stake in its entertainment assets to NBC, the New York Daily News reported. Universal Studios President Ron Meyer and Chairman Stacey Snider are among a group of 20 executives who may receive bonuses for aiding in the sale.
PREVIEW
September 15 – 21
Food Finds: The annual Taste of Santa Monica cooks up samples from 40 local restaurants on Sunday (21st) at the Santa Monica Pier from noon to 5 p.m. Live music and chef demonstrations will run throughout the day. For information: 310-393-9825.
Sports Beat: The Dodgers are home Tuesday-Thursday (16th-18th) against Arizona and Friday-Sunday (19th-21st) against San Francisco (though the lure of that series has long since faded with the Giants cruising to a divisional title). On the college football front, USC has the week off and UCLA is away against top-ranked Oklahoma. Ouch! The Galaxy is home against DC United.
Show Biz Chat: A panel of officials from the major Hollywood unions (including SAG, WGA, AFTRA) will participate in the Hollywood Chamber of Commerce’s “State of the Unions” on Wednesday (17th) from noon to 1:30 p.m. at the Renaissance Hollywood Hotel. L.A. City Councilman Martin Ludlow will moderate. For information: 323-469-8311.
Economic Reports: Monday (15th): Industrial production and capacity utilization for August (an especially important report because it could provide clues on whether inventories are low enough to warrant a ramping up of production). Tuesday (16th): Consumer Price Index. Wednesday (17th): Housing starts for September. Thursday (18th): The Conference Board’s leading indicators for August.
Emmy Time: The best from primetime television is recognized on Sunday at the Shrine Auditorium in the 55th annual Emmy Awards. Fox will broadcast the event and, as usual, L.A. will see it on a tape-delay basis.
Terrorism Series: The L.A. Public Library’s lecture series on terrorism continues on Thursday (18th) at noon with “The Strange Case of North Korea.” Featured speaker will be Peter Berton, USC distinguished emeritus professor of international relations. For information: 213-228-7000.
Celebrating Small: On the 50th anniversary of the Small Business Administration, President Bush declares Sept. 15-19 National Small Business Week. Also, the National Federal of Independent Business releases its latest report on small business economic trends.
RoadShow: Performers in search of marketing partnerships will be on hand Tuesday (16th) for RoadShow Music Day at the Henry Fonda Music Box Theater. Jonathan McHugh, president of the Los Angeles chapter of the Recording Academy, will provide the keynote. Plus, lots of musical performances. For information: 310-275-2088.
