U.S. settles with Penguin Group in e-book price-fixing lawsuit









The Justice Department announced Tuesday that it has reached a settlement with Penguin Group (USA) Inc. in its lawsuit accusing the nation's largest book publishers of colluding with Apple Inc. to raise e-book prices on customers.

The settlement, if approved by a federal judge, leaves Apple Inc. and Holtzbrinck Publishers, which does business as Macmillan, as the only defendants in the federal government's lawsuit accusing Apple, the multimedia and computer giant, of conspiring with several publishers in 2009 to force e-book prices several dollars above the $9.99 charged by Amazon.com Inc. on its Kindle device.

The Justice Department, which sued in April, settled with Hachette Book Group Inc., HarperCollins Publishers and Simon & Schuster Inc. earlier this year. The trial is scheduled to begin in June.








"The proposed settlement with Penguin will be an important step toward undoing the harm caused by the publishers' anti-competitive conduct and restoring retail price competition so consumers can pay lower prices for Penguin's e-books," said Jamillia Ferris, chief of staff and counsel at the Justice Department's antitrust division.

Apple has said the government's accusation that it conspired with major book publishers to raise the price of e-books is untrue.

The proposed settlement was filed in federal court in New York.

The settlement had been expected by some industry observers as a means to simplify Penguin's impending merger with Random House, which is not a defendant in the case. That deal would create the world's largest publisher of consumer books.

Under the settlement, Penguin "will be prohibited for two years from entering into new agreements that constrain retailers' ability to offer discounts or other promotions to consumers to encourage the sale of the Penguin's e-books," and must submit to "a strong antitrust compliance program" that includes telling federal officials about any joint e-book ventures or any communications with other publishers, Justice Department officials said.

The Justice Department's lawsuit stems from agreements reached between major publishers and Apple in 2010 that allowed publishers to set their own prices for e-books, an effort to counter Amazon's deep discounts of bestsellers. The department and 15 states said Apple and the publishers cost consumers more than $100 million in the last two years by adding $2 or $3, and sometimes as much as $5, to the price of each e-book.





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China cracking down on doomsday group









BEIJING — For members of a doomsday cult in China, the end may indeed be near.


Authorities have in recent weeks arrested more than 100 members of a fringe Christian-inspired group known as Almighty God that is prophesying the world will end Dec. 21, according to state media.


Members of the group had been distributing apocalyptic literature and sending text messages throughout China when the government began detaining them this month. On Dec. 8, police arrested 34 members in Fujian province, which lies on China's southeastern coast. On Thursday, they arrested 37 members, including seven leaders in Xining, a city in the west-central province of Qinghai. There have also been arrests in Sichuan and Hubei provinces and elsewhere.





"Dec. 21 is approaching, and on that day half of the world's good people will die, and all evil people will die out — only if you join the Almighty God movement can you avoid death and be saved," warned a pamphlet confiscated by police in Shaoxing city, in the eastern province of Zhejiang, and quoted by state media. A text message predicted, "Great tsunamis and earthquakes are about to happen around the world."


Perhaps more threatening to the Chinese government, the group also urged followers to wage war on what it called the "big red dragon," referring to the Communist Party.


In Henan province, authorities said that the suspect held in a slashing attack that injured 23 schoolchildren Friday had acted "under the influence of doomsday beliefs." It was unclear, however, whether the authorities were linking the man to the same group.


The suspect, Min Yongjun, had believed a local woman who had been telling villagers that “the end of the world is coming and the Earth will explode,” Ouyang Mingxing, a deputy director of Guangshan’s public security bureau, told the state-run Global Times. The official added that police found more than 70 pamphlets in the woman's home.


Unmonitored religious sects are regarded as a serious threat by the Chinese Communist Party. Falun Gong, an indigenous religious group that began agitating against the government in the 1990s, likewise calls for the party's downfall.


The government's wariness stems in part from the powerful influence such groups can exert in a land largely devoid of organized religion but riddled with a lack of trust, said sociologist Zhou Xiaozheng of People's University.


"Because China has no established religion, people looking for a way to set their minds at ease may turn to cults," said Zhou. "People don't believe in what the government says, so they may wind up believing in wild rumors."


Major rebellions against Chinese authority have sprung from Christian sects in the past. The Taiping Rebellion in the 19th century, started by a man who claimed to be the younger brother of Jesus Christ, led to civil war and contributed to the fall of the last Chinese dynasty.


Several Protestant groups currently active in China have published accounts of their dealings with the Almighty God movement, also known as Eastern Lightning. According to the Christian Research Journal, a man named Zhao Weishan founded the movement in Heilongjiang province in 1989. Zhao later moved to Henan province, where he began to teach that Jesus Christ had returned to Earth in the form of a Henan woman named Deng. Zhao reportedly immigrated to America in 2000.


The Almighty God movement has given other religious groups and the government cause for concern. Some Protestant groups say the sect — which one group, China for Jesus, estimates is 1 million strong — has engaged in kidnapping, coercion and blackmail directed against other churches.


Doomsday theories have proved popular in China in recent years. The film "2012," which describes a set of catastrophic geological events, set box-office records when it was released in China in 2009. Columbia Pictures released a 3-D version for the Chinese audience late this year.


Chinese authorities are trying to keep people from taking the latest apocalyptic scenario too seriously, warning that the rumors are causing "unrest and panic buying … undermining social order and cheating people out of their money," as the official China Daily newspaper put it.


Stores in some areas were reported to be out of candles because of predictions of three days of darkness.


Scientists have been urged to speak out in public about the fallacy of the predictions.


"Dec. 21 is the winter solstice and it's just the change of seasons.... The day is short and the night is long, but it's a normal, natural event," Yang Guang, an astronomer at the National Astronomical Observatories satellite observation station in Changchun, was quoted as telling the China Daily.


At least one company in the southern city of Kunming was reported by state media to be offering its employees a day off work and survival kits — partly as a joke.


Fears of a fast-approaching day of reckoning have also provided inspiration to Chinese inventors. A farmer in Hebei province and a businessman in Yiwu, a town south of Shanghai, separately developed large survival pods for use in case of calamity. The Yiwu entrepreneur said customers had ordered 28 pods for delivery before Dec. 21.


Hannon is an intern in The Times' Beijing bureau. Times staff writer Barbara Demick contributed to this report.





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'The Hobbit' tops box office with record $84.6M


NEW YORK (AP) — Peter Jackson's "The Hobbit" led the box office over the weekend with $84.6 million, a record-setting opening better than the three previous "Lord of the Rings" films.


The 3-D Middle Earth epic, the first of three planned films adapted from J.R.R. Tolkien's novel, was the biggest December opening ever, surpassing Will Smith's "I Am Legend," which opened with $77.2 million in 2007.


The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:


1. "The Hobbit: an Unexpected Journey," Warner Bros., $84,617,303, 4,045 locations, $20,919 average, $84,617,303, one week.


2. "Rise of the Guardians," Paramount, $7,143,445, 3,387 locations, $2,109 average, $71,085,268, four weeks.


3. "Lincoln," Disney, $7,033,132, 2,285 locations, $3,078 average, $107,687,319, six weeks.


4. "Skyfall," Sony, $6,555,732, 2,924 locations, $2,242 average, $271,921,795, six weeks.


5. "Life of Pi," Fox, $5,413,066, 2,548 locations, $2,124 average, $69,572,472, four weeks.


6. "The Twilight Saga: Breaking Dawn, Part 2," Summit, $5,136,074, 3,042 locations, $1,688 average, $276,826,143, five weeks.


7. "Wreck-It Ralph," Disney, $3,216,043, 2,249 locations, $1,430 average, $168,721,592, seven weeks.


8. "Playing For Keeps," FilmDistrict, $3,146,443, 2,840 locations, $1,108 average, $10,737,535, two weeks.


9. "Red Dawn," FilmDistrict, $2,408,882, 2,250 locations, $1,071 average, $40,904,305, four weeks.


10. "Silver Linings Playbook," Weinstein Co., $2,109,274, 371 locations, $5,685 average, $16,979,323, five weeks.


11. "Flight," Paramount, $1,910,666, 1,823 locations, $1,048 average, $89,418,704, seven weeks.


12. "Argo," Warner Bros., $1,170,175, 667 locations, $1,754 average, $104,955,079, 10 weeks.


13. "Hitchcock," Fox Searchlight, $1,107,659, 561 locations, $1,974 average, $3,071,871, four weeks.


14. "Anna Karenina," Focus, $1,022,214, 409 locations, $2,499 average, $8,380,517, five weeks.


15. "Killing Them Softly," Weinstein Co., $1,008,127, 1,427 locations, $706 average, $14,140,432, three weeks.


16. "The Collection," LD Entertainment, $529,158, 621 locations, $852 average, $6,520,794, three weeks.


17. "Hyde Park On Hudson," Focus, $292,796, 36 locations, $8,133 average, $404,816, two weeks.


18. "Taken 2," Fox, $288,772, 339 locations, $852 average, $138,132,493, 11 weeks.


19. "Pitch Perfect," Universal, $245,680, 332 locations, $740 average, $63,869,423, 12 weeks.


20. "Talaash," Reliance Big Pictures, $168,828, 113 locations, $1,494 average, $2,706,375, three weeks.


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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N.I.H. to Start Initiatives to Raise Number of Minority Scientists





Few blacks enter biomedical research, and those who do often encounter obstacles in their career paths.




A study published last year found that a black scientist was markedly less likely to obtain research money from the National Institutes of Health than a white one — even when differences of education and stature were taken into account.


The institute has now announced initiatives aimed at helping blacks and other ethnic and racial groups who have been unrepresented among medical researchers, including a pilot program that will test a grant review process in which all identifying information about the applicant is removed.


The initiatives take a step further than addressing the problem identified in the study — the goal is to entice more minorities into the field.


“It needed to go well beyond that,” said Francis S. Collins, director of the N.I.H., “because even if we fixed that, it would still be the case that there would be a very distressingly low number of individuals from underrepresented groups who are part of what we’re trying to do in science.”


The N.I.H. program will provide research opportunities for undergraduate students, financial support for undergraduate and graduate students, and set up a mentoring program to help students and researchers beginning their careers.


When the program ramps up, it will cost about $50 million a year and support about 600 students.


The N.I.H. formed a group of 16 scientists to study the causes of the problem, and the group presented its recommendations in June. At a meeting this month of his advisory committee, Dr. Collins and other officials discussed how to implement the recommendations.


At the meeting, Dr. Reed Tuckson, an executive vice president and the chief of medical affairs for UnitedHealth Group, who was one of the group’s co-chairman, acknowledged the controversies that would inevitably accompany the effort, especially as the N.I.H., like the rest of the federal government, could soon face sizable cuts in its budget.


“This is a heavy, laden issue which no matter which way you turn, someone is going to be irritated,” he said.


Dr. Tuckson, who is black, urged his colleagues to support the efforts. “A lot of people put themselves on the line,” he said.


The study last year, published in the journal Science, reviewed 83,000 grant applications between 2000 and 2006. For every 100 applications submitted by white scientists, 29 were awarded grants. For every 100 applications from black scientists, only 16 were financed.


After statistical adjustments to ensure a more apples-to-apples comparison, the gap narrowed but persisted.


That raised the uncomfortable possibility that the scientists reviewing the applications were discriminating against black scientists, possibly reflecting an unconscious bias. Members of other races and ethnic groups, including Hispanics, do not appear to run into the same difficulties, the study said.


Only about 500 doctoral degrees in a year in biological sciences go to underrepresented minorities, like blacks, Hispanics and Native Americans.


To persuade more students to pursue this as a career, the N.I.H. aims to provide more summer research opportunities for undergraduates.


“That is the single strongest predictor of somebody deciding that that’s the career they want to pursue,” Dr. Collins said of mentored research.”


The program will also provide money to professors so that they can have more time to mentor students or train new mentors.


“They’re talking about a multipronged approach, which I think is a smart approach,” said Dr. Raynard S. Kington, president of Grinnell College in Iowa and a former deputy director of N.I.H. who was a co-author of the Science paper. “If they had just said, ‘We’re going to focus on review,’ I would have been deeply disappointed.”


Donna K. Ginther, an economics professor at the University of Kansas who led the Science study, has taken a closer look at a subset of 2,400 proposals included in the original study. It turns out, she said, that the black applicants published fewer papers and have fewer co-authors than other scientists.


That helps explain the financing gap, but also suggests that the professional networks of black scientists are smaller. “The hypothesis being that professionally, they’re not as integrated,” Dr. Ginther said, “and that’s why I think the mentoring network is such a good idea.”


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Lincoln accused of 'tricky' tire switch by automotive website









Automotive website Edmunds.com on Monday excoriated Lincoln for lending it a car that had high performance tires, which Lincoln acknowledged almost none of its buyers will select.

The tires in question are Michelin Pilot Super Sports. They're found on much more exotic cars like BMW's M5 and Ferrari's F12 Berlinetta. The tires are available as part of a $1,565 package on Lincoln MKZ sedans with optional all-wheel-drive.

But a Lincoln spokesman confirmed that the company only expects less than 1 percent of MKZ buyers to take home a car with these tires. Lincoln says AWD models will account for a quarter of all MKZ sales. Of those AWD sales, 1% to 2% will go home with these Michelins.

The impact tires have on a car's performance cannot be overstated. Because they're the only point of contact between a vehicle and the road, a good tire can yield significant gains in traction, acceleration, braking, and cornering.

In its review of the MKZ, Santa Monica-based Edmunds.com takes Lincoln to task for including on a car for media tires that don't accurately reflect what buyers will take home. After noting that the MKZ completed Edmunds' slalom course faster than a BMW M5, author Erin Riches says this information is misleading and masks the car's many shortcomings.

"That's exactly the kind of data point those tricky tire-switching Lincoln engineers were hoping for. Foolish. Instead of trying to game the media, Lincoln should have designed and engineered a better car," Riches' review states.

Edmunds also faulted the MKZ for having less interior space than the Ford Fusion on which it's based, a low-rent interior construction and a forgettable V-6 engine. Riches concluded by saying: "Lincoln's future is on the line, and this redesigned 2013 Lincoln MKZ won't be enough to reverse its downward spiral."


ALSO:


Automakers eye market share gains with year-end deals





Photos: Million-dollar classic cars headed to Arizona auction


More women than men have a driver's license -- and that's good news


The Times is currently testing a different Lincoln MKZ. Though the car has the smaller base engine -- a turbocharged four-cylinder -- it also came with AWD and the optional Michelin tires.





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Connecticut school gunman shot mother multiple times, autopsy finds









NEWTOWN, Conn. -- School shooter Adam Lanza killed his mother with "multiple" shots to her head and killed himself with a single shot to his head, according to a coroner’s report released Sunday.


After killing his mother in the home they shared, Lanza, 20, drove her car to Sandy Hook Elementary School, where he opened fire in two classrooms Friday morning, killing 20 children and six adults. He then turned the gun on himself.


The autopsy reports were released by Connecticut Chief Medical Examiner Dr. H. Wayne Carver II, who said earlier that all the children had been shot multiple times.





Officials have not identified the make of Lanza's weapon, which Carver has described only as a “long gun.”


As the autopsy reports were being released Sunday, a threatening phone call to a local church prompted a mid-service evacuation that jarred a day of mourning as residents throughout this community grappled with the aftermath of the elementary school massacre.


FULL COVERAGE: Connecticut school shooting


A church spokesman said police gave an all-clear soon after the evacuation at St. Rose of Lima Church. A SWAT team had surrounded the rectory across the parking lot from the main church building and hundreds of parishioners were forced to leave services that had been packed all morning.


"This is a very difficult time for all the families. We have seen incredible dignity in the faces of these people," church spokesman Brian Wallace said. The church was locked following the all-clear to "restore calm," Wallace said.


"I don't think anyone can be surprised about anything after what has happened," he said.


Earlier police said in a morning briefing that they may have to interview the youngest survivors of the school shooting as they try to determine the motive of the gunman.


State Police Lt. Paul Vance and Newtown Police Lt. George Sinko offered few new details of the crime or the investigation into the so-far inexplicable rampage at the elementary school.


Any motive -- speculation about Lanza's video game habits, and his relationship with the school and with his mother -- remained unconfirmed. Two days later, police still aren't saying why he did what he did.


PHOTOS: Connecticut school shooting


“For us to be able to give you the summary of the motive, we have to complete the investigation; we have to have the whole picture to say how and why this occurred," said Vance of the Connecticut State Police, the lead agency on the investigation. "There are weeks’ worth of work left for us to complete this."


Lanza's mother legally purchased the guns later recovered at the scene of the massacre, law enforcement officials have said. Officials have previously said those weapons included a military-style Bushmaster .223 rifle, a Glock 9-millimeter pistol and a Sig Sauer semiautomatic pistol, officials said.


Vance said police would be tracing the weapons' origins "back to their origin" at their manufacturers.


Connecticut Gov. Dan Malloy told CNN on Sunday morning: "What we know is he shot his way into the building, so he penetrated the building -- he wasn't buzzed in. He penetrated the building by literally shooting an entrance into the building."

Sinko, meanwhile, said it was "too early" to say if children ever would return to the two classrooms where the killings occurred. "It's too early to say, but I would find it very difficult for them to do that," he said.


Arrangements were under way for some children to report to another elementary school in Newtown when classes resume.


"We want to keep these kids together," said Sinko, explaining that they hoped children who were moved to new schools could stay with their classmates. "We want to move forward very slowly and respectfully," he added, by way of explaining why it was expected to take so long to interview surviving children.


At the news conference, Vance also said the FBI had been asked to help investigate false postings on social media sites that included "some things in somewhat of a threatening manner," and some that purported to be messages from the shooter himself or others involved in the incident.


"There are quotes by people who are posing as the shooter.... Suffice it to say, the information has been deemed as threatening," he said when asked to elaborate.


ALSO:


Suspect in massacre tried to buy rifle days before, sources say


In Newtown, death's chill haunts the morning after school shooting


Connecticut shooting: Gunman forced his way into school, police say






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Cisco hires bank to sell home wireless router unit: report






(Reuters) – Networking equipment company Cisco Systems Inc has hired Barclays to sell its Linksys home router unit, a report said on Sunday.


The business, which Cisco acquired for $ 500 million in 2003, will likely be valued for less because it has low margins, according to Bloomberg.






The sale is part of Cisco’s strategy to shed its consumer unit and focus on its software and technology services businesses.


Last year, Cisco axed its Flip camera business as part of this strategy.


(Reporting By Olivia Oran; Editing by Marguerita Choy)


Tech News Headlines – Yahoo! News





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'Hobbit' bests 'Rings' with $84.8 million opening


NEW YORK (AP) — Peter Jackson's "The Hobbit" led the box office with a haul of $84.8 million, a record-setting opening better than the three previous "Lord of the Rings" films.


The Warner Bros. Middle Earth epic was the biggest December opening ever, surpassing Will Smith's "I Am Legend," which opened with $77.2 million in 2007, according to studio estimates Sunday. "The Hobbit: An Unexpected Journey" also passed the December opening of "Avatar," which opened with $77 million. Internationally, "The Hobbit" also added $138.2 million, for an impressive global debut of $223 million.


Despite weak reviews, the 3-D adaptation of J. R. R. Tolkien's first novel in the fantasy series was an even bigger draw than the last "Lord of the Rings" movie, "The Return of the King." That film opened with $72.6 million. "The Hobbit" is the first of another planned trilogy, with two more films to be squeezed out of Tolkien's book.


While Jackson's "Rings" movies drew many accolades — "The Return of the King" won best picture from the Academy Awards — the path for "The Hobbit" has been rockier. It received no Golden Globes nominations on Thursday, though all three "Rings" films were nominated by the Hollywood Foreign Press Association for best picture.


Particularly criticized has been the film's 48-frames-per-second (double the usual rate), a hyper-detailed look that some have found jarring. Most moviegoers didn't see "The Hobbit" in that version, though, as the new technology was rolled out in only 461 of the 4,045 theaters playing the film.


Regardless of any misgivings over "The Hobbit," the film was a hit with audiences. They graded the film with an "A'' CinemaScore.


"What's really important, what makes this special is the CinemaScore," said Dan Fellman, president of domestic distribution for Warner Bros. "All these things point to a great word of mouth. We haven't even made it to the Christmas holidays yet. Kids are still in school this week."


The strong opening culminated a long journey for "The Hobbit," which was initially delayed when a lawsuit dragged on between Jackson and "Rings" producer New Line Cinema over merchandizing revenue. At one point, Guillermo del Toro was to direct the film with Jackson producing. But eventually the filmmaker opted to direct the movie himself, originally envisioning two "Hobbit" films. The production also went through the bankruptcy of distribution partner MGM and a labor dispute in New Zealand, where the film was shot.


The long delay for "The Hobbit," nearly a decade after the last "Lord of the Rings" film, made it "one of those movies that had everyone scratching their heads as to how it would open," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com.


"It's been a decade since the 'Lord of the Rings' trilogy concluded," said Dergarabedian. "There's been so much anticipation for this film and having Peter Jackson back at the helm just made it irresistible both to fans and the non-initiated alike."


"The Hobbit" was far and away the biggest draw in theaters, with no other new wide release. Paramount's "Rise of the Guardians" continued to draw the family crowd, with $7.4 million, bringing its cumulative total to $71.4 million. The Oscar contender "Lincoln" from Walt Disney crossed the $100 million mark, adding another $7.2 million to bring its six-week total to $107.9 million. And Sony's James Bond film "Skyfall," with another $7 million domestically, drew closer to a global take of $1 billion.


The box office continued to be on the upswing and with anticipated releases like "Les Miserables," ''Django Unchained" and "The Guilt Trip" approaching in the holiday moviegoing season. Dergarabedian expects the year to break the 2009 record of $10.6 billion. With some $10.2 billion in revenue thus far, he said, "We're on track to be in that realm."


Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.


1. "The Hobbit: An Unexpected Journey," $84.8 million ($138.2 million international).


2. "Rise of the Guardians," $7.4 million ($20.1 million international).


3. "Lincoln," $7.2 million.


4. "Skyfall," $7 million ($12.2 million international).


5. "Life of Pi," $5.4 million ($11.5 million international).


6. "The Twilight Saga: Breaking Dawn, Part 2," $5.2 million ($13 million international).


7. "Wreck-It Ralph," $3.3million ($4.7 million international).


8. "Playing for Keeps," $3.2 million ($1.4 million international).


9. "Red Dawn," $2.4 million.


10. "Silver Linings Playbook," $2 million ($370,000 international).


___


Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:


1. "The Hobbit: An Unexpected Journey," $138.2 million.


2. "Rise of the Guardians," $20. 1 million.


3. "The Twilight Saga: Breaking Dawn, Part 2," $13 million.


4. "Skyfall," $12.2 million.


5. "Life of Pi," $11.5 million.


6. "Wreck-It Ralph," $4.7 million.


7. "26 Years," $3.5 million.


8. "Whatcha Wearin'? (My P.S. Partner)," $3 million.


9. "Tutto Tutto Niente Niente," $2.4 million.


10. "Pitch Perfect," $2.3 million.


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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Mislabeled Foods Find Their Way to Diners’ Tables





ATLANTA — The menu offered fried catfish. But Freddie Washington, a pastor in Tuscaloosa, Ala., who sometimes eats out five nights a week and was raised on Gulf Coast seafood, was served tilapia.







Dustin Chambers for The New York Times

Consumers are misled most frequently when they buy fish, investigators say, because diners have such limited knowledge about seafood. 







It was a culinary bait and switch. Mr. Washington complained. The restaurant had run out of catfish, the manager explained, and the pastor left the restaurant with a free dinner, an apology and a couple of gift certificates.


“If I’m paying for a menu item,” Mr. Washington said, “I’m expecting that menu item to be placed before me.”


The subject of deceptive restaurant menus took on new life last week when Oceana, an international organization dedicated to ocean conservation, released a report with the headline “Widespread Seafood Fraud Found in New York City.”


Using genetic testing, the group found tilapia and tilefish posing as red snapper. Farmed salmon was sold as wild. Escolar, which can also legally be called oil fish, was disguised as white tuna, which is an unofficial nickname for albacore tuna.


Every one of 16 sushi bars investigated sold the researchers mislabeled fish. In all, 39 percent of the seafood from 81 grocery stores and restaurants was not what the establishment claimed it was.


“This thing with fish is age old, it’s been going on forever,” said Anne Quatrano, an Atlanta chef who opened Bacchanalia 20 years ago and kick-started the city’s sustainable food movement. “Unless you buy whole fish, you can’t always know what you’re getting from a supplier.”


Swapping one ingredient for a less expensive one extends beyond fish and is not always the fault of the person who sells food to the restaurant. Many a pork cutlet has headed to a table disguised as veal, and many an organic salad is not.


The term organic is regulated by the Department of Agriculture, but many other identifying words on a menu are essentially marketing terms. Unscrupulous chefs can falsely claim that a steak is Kobe beef or say a chicken was humanely treated without penalty.


In cases of blatant mislabeling, a chef or supplier often takes the bet that a local or federal agency charged with stopping deceptive practices is not likely to walk in the door. “This has been going on for as long as I’ve been cooking,” said Tom Colicchio, a New York chef and television personality. “When you start really getting into this stuff, there’s so many things people mislabel.”


At Mr. Colicchio’s New York restaurants, all but about 5 percent of the meat he serves is from animals raised without antibiotics, he said. It costs him about 30 percent more, so he charges more. “Yet I have a restaurant down the street that says they have organic chicken when they don’t, and they charge less money for it,” he said. “It’s all part of mislabeling and duping the public.”


Consumers are misled most frequently when they buy fish, investigators say, because there are so many fish in the sea and such limited knowledge among diners. The Food and Drug Administration lists 519 acceptable market names for fish, but more than 1,700 species are sold, said Morgan Liscinsky, a spokesman with the agency.


Marketing thousands of species in the ocean to a dining public who often has to be coaxed to move beyond the top five — shrimp, tuna, salmon, pollock and tilapia — is not an exact science.


The line between marketing something like Patagonian toothfish as Chilean sea bass or serving langostino and calling it lobster is a fine one.


Robert DeMasco, who owns Pierless Fish, a wholesaler in New York, used a profanity to describe someone who buys farm-raised fish and sells it as wild. “But on some of this, they’re splitting hairs,” he said.


In 2005, a customer sued Rubio’s, a West Coast taco chain, for misleading the public by selling a langostino lobster burrito. The FDA ruled that practice acceptable, which allowed chains like Long John Silver’s and Red Lobster to sell the crustacean called langostino and legally attach the word lobster to it. Maine lobstermen and lawmakers fought the decision unsuccessfully.


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Don't impoverish yourself to pay kids' student loans








Dear Liz: I'm in my 50s. My kids have college loan debts that might total more than $200,000. I allowed them to take out loans because I expected to inherit $300,000 to help them pay off the debt. Now that inheritance will not happen.


I have $250,000 saved for retirement. When I'm 58 1/2 years old, I would like to pull that money out and pay some or all of these debts. Or use home equity. I've recently been downsized in employment, but I am looking to increase my income so I can help with their debt. Advice?


Answer: If your goal is to impoverish yourself so your kids will have to take care of you in your old age, by all means proceed with your plan. Otherwise, you need to rethink this.






You've been laid off in the middle of what should be your peak earning years. Older workers often have a tougher time than younger ones finding replacement jobs, even in a better economy than this one. You may not be able to replace your former income, which means you may not be able to add much to the amount you've already saved. You should be conserving your resources, including your home equity, and not squandering it repaying debts that aren't yours.


And "squandering" is the right word. You may be able to avoid paying federal and state tax penalties on withdrawals under certain conditions; distributions made after age 59 1/2 avoid the penalties, as do those made if you're "separated from service" if the job termination occurred in or after the year you turn 55. But you'll still owe income taxes on the withdrawal, and those can be considerable.


Your children are the ones who will benefit from their educations. Those educations should allow them to earn incomes to repay these loans. The amount of debt they've accrued might be excessive — you didn't specify how many kids, or whether this debt is being incurred pursuing undergraduate or graduate degrees. Ultimately, though, they will be in a better position to pay the debt than you are.


If you promised them help you can't deliver, sit down with them now to break the bad news and strategize on how they can finish their educations without incurring substantially more debt.


Your story also should serve as a cautionary tale for anyone counting on an inheritance to pay future bills. Until the money is in your bank account, it's not yours and shouldn't be part of your financial planning.


Refinancing mortgage in divorce may not be wise move


Dear Liz: My soon-to-be ex wants to refinance our mortgage to pay for renovations so we can sell it for more money. He also wants to take out some cash to pay off unsecured loans. (I have $11,000 in credit card debt, and he has over $50,000.) The house recently appraised for $310,000 and we owe $158,000 on it. Is it wise to refinance in this circumstance?


Answer: A cash-out refinance would be a risky maneuver even if you intended to stay married. Renovations rarely boost a home sale price enough to cover their cost. Also, home equity that's used to pay off credit card bills is often wasted, since the borrower never fixes the problem that led to overspending in the first place and simply runs up more debt. Since he would be getting the bulk of the benefit by having more of his debt paid off, you also would need to adjust the rest of your property settlement.


Often, the best and easiest solution in a divorce is to simply sell the house. You certainly wouldn't want to remain on a mortgage with an ex after the divorce was final, if you could possibly avoid it. A good divorce attorney can give you advice about how to proceed from here.


Make saving money automatic


Dear Liz: What's the easiest way to save money? I have the hardest time. I want to save, but I feel that I don't make enough to start saving.


Answer: The easiest way to save is to do it without thinking about it.


That usually means setting up automatic transfers either from your paycheck or from your checking account. If you have to think about putting aside money, you'll probably think of other things to do with that cash. If it's done automatically, you may be surprised at how fast the money piles up.


The second part of this equation is to leave your savings alone. If you're constantly dipping into savings to cover regular expenses, you won't get ahead.


People manage to save even on small incomes because they make it a priority. They "pay themselves first," putting aside money for savings before any other bills are paid. Start with small, regular transfers and increase them as you can.


Questions may be sent to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the "Contact" form at asklizweston.com. Distributed by No More Red Inc.






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