Claire Danes and Hugh Dancy welcome a baby boy

NEW YORK (AP) — Claire Danes and Hugh Dancy's "Homeland" just got bigger.

Danes' rep confirms the couple welcomed a baby boy named Cyrus Michael Christopher.

People.com first reported Monday's birth.

It's the first child for 33-year old Danes and 37-year-old Dancy. They were married in 2009.

There's no word yet whether the new mom will attend the Golden Globe Awards on Jan. 13. She's nominated for Best Performance by an Actress in a Television Series for her work on Showtime's "Homeland."

Up next, Dancy stars in NBC's "Hannibal," an adaptation of Thomas Harris' novel "Red Dragon."

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Amgen Workers Helped U.S. in Aranesp Marketing Inquiry

“I hope no one is taping this,” the Amgen manager remarked at a company sales meeting in 2005.

The manager then boasted of how she had given a $10,000 unrestricted grant to a pet project of a doctor who was an adviser to the local Medicare contractor. In turn, she said, the doctor would help persuade the contractor to provide reimbursement for an unapproved use of Amgen’s anemia drug, Aranesp.

Someone, it turned out, was taping it. Jill Osiecki, a longtime sales representative at Amgen, was wearing a recording device under her clothes, transmitting the proceedings to agents of the Department of Health and Human Services.

The result of Ms. Osiecki’s undercover work, and information provided by other whistle-blowers, led to Amgen’s agreement this week to pay $762 million to settle federal investigations regarding the marketing of some of its top-selling drugs.

Judge Sterling Johnson Jr. of Federal District Court in Brooklyn accepted the settlement on Wednesday, clearing the way for 10 whistle-blower lawsuits to be unsealed.

Amgen, the world’s largest biotechnology company, will pay $150 million in criminal penalties after pleading guilty to one misdemeanor count of marketing Aranesp for unapproved uses and in unapproved doses.

The rest of the money — $612 million — will go to settle civil false claims lawsuits filed by the federal government, states and whistle-blowers. These contain accusations that go well beyond the off-label marketing of Aranesp.

They include off-label marketing of other drugs like Enbrel for psoriasis and Neulasta, which increases the levels of white blood cells. Amgen is also accused of offering kickbacks to doctors and clinics to induce them to use its drugs. These reportedly came as cash, rebates, free samples, educational and research grants, dinners and travel, and other inducements. The government also accused the company of knowingly misreporting the prices of some of its drugs.

Except for those in the criminal count, Amgen denied the other accusations, though it did issue a statement on Wednesday acknowledging the settlement.

“The government raised important concerns in the criminal prosecution,” Cynthia M. Patton, chief compliance officer at Amgen, said in the statement. “Amgen acknowledges that mistakes were made, and we did not live up to our standards.”

Ms. Osiecki, 52, was one of the main whistle-blowers and will be entitled to a share of the settlement. The amount each whistle-blower will receive has not been determined or is being kept confidential, their lawyers said.

Ms. Osiecki worked as a sales representative for Merck for nine years before joining Amgen in 1990, soon after the biotechnology company won regulatory approval for its first product. The company, based outside Los Angeles, had “good science, good products, strong ethics,” Ms. Osiecki said in an interview.

But, she said, the corporate culture changed starting around 2000. That was when new management came in and Aranesp was approved, setting up a fierce marketing battle with Johnson & Johnson and its rival anemia drug, Procrit.

“It was more important to make your numbers than to follow the rules,” said Ms. Osiecki, who was based in Milwaukee and sold Aranesp.

In August 2004, with her concerns mounting, Ms. Osiecki called the Office of Inspector General of the Department of Health and Human Services and left a message. Within days, she was called back, and she went to see an agent, who persuaded her to secretly record meetings. She did that 13 times over about 15 months, mainly sales meetings.

Aranesp is used mainly in a hospital, clinic or physician’s office. It is bought by the medical practice, which can make a profit if the patient and insurers pay more for the use of the drug than the practice paid.

Ms. Osiecki said Amgen “marketed the spread,” trying to make it more profitable for doctors to use Aranesp rather than Procrit.

Such financial inducements could also spur greater overall use of a drug and can violate anti-kickback laws, said Ms. Osiecki’s lawyer, Brian P. Kenney of Kenney & McCafferty in Blue Bell, Pa.

Ms. Osiecki said the first sales meeting at which she wore the recording device, wrapped around her midriff under baggy clothes, was in October 2004 in a Milwaukee hotel. She could look down from the meeting room and see the car parked across the street containing the agent with the receiving device. She said she was not particularly nervous.

The speaker was a pharmacist from an oncology practice going through the numbers on how his practice could make a million dollars more a year using Aranesp rather than Procrit.

Ms. Osiecki said Amgen was careful to cover up such marketing. Spreadsheets showing doctors how much more money they could make using Aranesp were “homemade bread,” meaning they were created by each sales representative, not by the company. And representatives were told not to leave the presentations behind after showing them to doctors.

Her 107-page complaint, filed in late 2004, contains many other accusations.

Other whistle-blowers made other accusations. Kassie Westmoreland, a former sales representative, said Amgen overfilled vials of Aranesp, essentially providing free drugs to doctors. They could then bill Medicare or private insurers for the use of that drug, making an extra profit.

“Amgen was offering a kickback in the form of extra product subsidized by the taxpayers,” said Robert M. Thomas Jr., one of Ms. Westmoreland’s lawyers.

Elena Ferrante and Marc Engelman, both former sales representatives, contended that Amgen promoted Enbrel’s off-label use for mild psoriasis when the drug was approved only for moderate or severe cases of the disease.

Lydia Cotz, one of their lawyers, said the two refused to go along with the off-label marketing. They are now pursuing wrongful termination claims against Amgen in arbitration proceedings that Amgen requires be kept confidential, she said.

“It’s been a very long heroic journey for my clients,” she said.

Ms. Osiecki is now also a former Amgen sales representative. She said that she was fired in December 2005 after she let slip that she had retained a company voice mail message that she thought provided evidence of illegal activity. Leaving the pharmaceutical industry, she moved to Amelia Island, Fla. She now works for a small business.

Mosi Secret and Barry Meier contributed reporting.

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FTC unveils broader rules to protect kids' privacy online

Columnist David Lazarus talks with Mark Blafkin, spokesman for the Assn. of Competitive Technology, an organization of app developers, and Alan Simpson of Common Sense Media, an advocacy group for parents.

SAN FRANCISCO — In a major step to protect kids' online privacy, the Federal Trade Commission has unveiled new rules that require mobile apps and websites to obtain parental consent before collecting personal information from children.

The agency's chairman, Jon Leibowitz, said Wednesday that federal regulators were trying to keep pace with the growing use of mobile devices by those under age 13 — and the rapidly evolving tactics and tracking tools of marketers and data brokers that collect detailed dossiers on Americans and their online activities.

The new rules — the first major update to federal laws on children's online privacy in 14 years — require a parent's consent to collect those kinds of personal details that can be used to identify, locate or contact a child and pass that information on to third parties.

The FTC struck a balance between shielding kids from potential harm and ensuring that the marketplace for kids' mobile apps and online services would continue to flourish, Leibowitz said during a Capitol Hill news conference.

Under the broader rules, the FTC said companies must get permission from parents before collecting photographs and videos as well as deploying tracking tools, such as cookies, which use IP addresses and mobile device IDs to follow a child on the Web.

Quiz: What set the Internet on fire in 2012?

The move comes one week after the agency said it was investigating mobile app developers who might have gathered information from kids without their parents' consent. The agency did not name the companies or say how many it was investigating.

"We are at a critical moment in the growth of the children's digital marketplace as social networks, mobile phones and gaming platforms become an increasingly powerful presence in the lives of young people," said Kathryn Montgomery, a children's advocate and a professor of communications at American University. "The new rules should help ensure that companies targeting children throughout the rapidly expanding digital media landscape will be required to engage in fair marketing and data collection practices."

Federal regulators had not significantly updated online privacy rules for kids since 1998 when the Children's Online Privacy Protection Act was enacted. That law required online services geared toward kids to notify parents and get their permission before collecting or sharing basic personal information such as names, email addresses or home addresses from those under 13.

The law did not envision today's Internet in which the rapid adoption of mobile devices loaded with apps can relay a person's location and other personal details highly prized by advertisers and data brokers. The FTC began a review of the law in 2010.

James Steyer, chief executive of Common Sense Media Inc., a nonprofit group in San Francisco that studies kids' use of technology, said the new rules put parents — not corporations — back in charge as gatekeepers for kids.

"All of the companies and developers in the online and mobile space benefit from the share and use of personal information. But they also have a responsibility for providing parents with information and tools so they can make smart choices about what their young children do and share online, and so far, most of these companies have failed to live up to that responsibility," Steyer said.

But software developers — many of whom are parents themselves — said the FTC is giving their industry, which makes products including educational tools and games for kids, a bad rap.

"It's a little alarming that the FTC has chosen to paint all children's apps with the same brush," said Rick Richter, CEO of Ruckus Media Group Inc. "What this is all about is notifying parents about information we are gathering. We have been fastidious as a company about doing that."

Some app developers warned that the cost of complying with the new regulations would force many of them to stop building apps for kids.

Liability for violating the rules does not extend to Google, Apple and other technology giants that operate online stores that sell kids' apps.

The Application Developers Alliance said the kids' software industry is mostly made up of entrepreneurs who can't afford lawyers to help them navigate the complex new rules governing kids' privacy.

"Ultimately it's the kids, parents and teachers who will suffer," said Tim Sparapani, vice president of law policy and government relations at the alliance.

Josh Hartwell, who runs Mobile Deluxe, a mobile game developer and publisher in Santa Monica, has three kids and a fourth on the way. He said he and many other app developers agree that protecting children's privacy is "paramount" and supports weeding out "bad actors." But he worries that the burdensome new rules will stifle innovation.

"Some of the compliance issues are going to make it tougher for people to create apps for kids," Hartwell said.

But Samantha Lurey, CEO of Go Trexx in Mission Viejo, which makes travel apps for kids, applauded the effort to increase privacy protections for children.

"This is something our firm has wanted to see for a while now. We feel that federal regulators are going in the right direction," Lurey said. "Because our apps are designed for kids, we felt it was really important that we were not capturing any sensitive information. I think other developers will find that it's relatively easy to construct apps that are engaging, entertaining and useful without capturing sensitive information."

jessica.guynn@latimes.com

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Two more funerals in Newtown; NRA responds to school massacre

NEWTOWN, Conn. -- Two more of the children killed by a gunman who invaded a Connecticut elementary school were buried on Tuesday as officials released new details of the deadly spree that has reshaped the debate over gun control.

The National Rifle Assn., which has been under pressure to comment on the Newtown shootings, broke its silence and issued a statement saying it was ready to offer its plans at a Friday news conference.

“We were shocked, saddened and heartbroken by the news of the horrific and senseless murders in Newtown,” said the pro-gun rights lobbying group, which has repeatedly fought gun-control legislation on the national, state and local levels. “The NRA is prepared to offer meaningful contributions to help make sure this never happens again.”

PHOTOS: Mourning after the massacre

Both funerals were held at St. Rose of Lima Catholic Church, which has been one of the centers for consoling the bereaved and for memorial services that began Friday evening, hours after Adam Lanza opened fire inside Sandy Hook Elementary School.

Primarily using a Bushmaster AR-15-style rifle, Lanza killed 20 children and six adults in the school before turning a handgun on himself, authorities said. The rampage began Friday morning when Lanza killed his mother, Nancy, in the home they shared.

Dr. H. Wayne Carver, the state’s chief medical examiner, told reporters on Tuesday that Nancy Lanza was shot four times in the head with a .22-caliber rifle. She was most likely asleep when she was killed, Carver said, according to the Hartford Courant.

After shooting his mother, Adam Lanza took her car and several of her guns and went to the school, where he forcibly entered and opened fire. The Bushmaster and two handguns were later recovered from the building and a shotgun was found in the car, officials said.

Sandy Hook Elementary remains closed, most likely for months, as investigators continue their work seeking to understand why Lanza did what he did. The hundreds of students at the school are being relocated to a school in nearby Monroe, Conn.

In the rain and cold Tuesday, other Newtown students returned to their schools where teachers were prepared to help them cope with the massacre. Campuses also had a sizable police presence to reassure parents.

One Newtown school, Head O'Meadow Elementary, was locked down Tuesday due to an unspecified threat. The principal told parents to keep their children home, according to a letter from the principal published by WFSB-TV. Police have said they will deal harshly with hoaxes and threats, including two directed over the weekend at St. Rose.

The first funeral Tuesday morning was for James Mattioli, 6. In what has become an ongoing sight, mourners kept their heads down and walked quickly into the building, and refused to comment. The families have repeatedly asked for privacy for their grief, a position backed by local police.

James' funeral was the first of eight to be held at the church. By noon, flowers for the second service, for Jessica Rekos, also 6, had begun to arrive.

James has been described by family members as a budding “numbers guy.” Jessica was a horse enthusiast who wanted cowgirl boots for Christmas, relatives told reporters.

A wake was scheduled Tuesday night for slain teacher Victoria Soto. Police were to be part of an honor guard for Soto, who died trying to protect her students by getting them into a closet and putting her body between the gunman and her charges.

The shootings have reopened the debate on gun-control laws, specifically whether to renew the expired national ban on assault weapons. President Obama has asked his staff to come up with proposals, though no time frame for action has been given. Even staunch pro-gun rights lawmakers have also called for reopening discussion on some bans.

ALSO:

'Puppies for Rent' business in Utah sparks criticism

L.A. girls pay tribute in visit, but Newtown is a day of hearses

'No, no, no': Harrowing 911 call, then 4 dead near Longmont, Colo.

Susman reported from Newtown, Conn., and Muskal from Los Angeles.

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Samsung Galaxy Muse is like an iPod Shuffle that Syncs with Your Phone

In perhaps the most awkwardly titled tech press release ever, Samsung Mobile announced the launch of the new Samsung Galaxy Muse, a device which appears to have nothing to do with “CORRECTING and REPLACING and ADDING MULTIMEDIA” but everything to do with being a music player crossed with a smartphone accessory.

​Say goodbye to iTunes?

While most handheld music players (and smartphone or tablets with music apps) sync with a PC or Mac music app, like iTunes or Banshee, the Samsung Galaxy Muse syncs with your Android phone itself. It uses the Muse Sync app, which Google Play says will install on devices like the Nexus 7 tablet but which Samsung says will only work with the Galaxy S II, Galaxy S III, Galaxy Note and Galaxy Note II smartphones.

​Plug it in, turn it on

The pebble-shaped Muse connects to your Samsung phone via its headset jack. It doesn’t have a screen, so you have to control it iPod Shuffle style, and use the Muse Sync app to see how much of its 4 GB of space are free and decide which playlists to sync. Since it only has those 4 GB, it can only hold a fraction of the music that can be put on the much more powerful smartphones.

​Who is Samsung selling the Galaxy Muse to?

Samsung says “users can sync the songs they want and leave their phone behind,” the usefulness of which may depend on whether or not you feel limited by having to bring your smartphone with you. The press release mentions its “wearable design and small form factor,” and suggests taking it “in place of [your] smartphone … at the gym or on the go.”

​What other gadgets are like the Galaxy Muse?

The most obvious comparison is to the iPod Shuffle, Apple’s similarly tiny and screen-less portable music player. At $ 49, it costs the same as the Galaxy Muse (although a Droid-Life tipster found a $ 25 off coupon code for the Muse), but comes in seven different colors and has an embossed click-wheel controller instead of a flat and featureless surface. It requires you to use iTunes on a desktop PC or Mac, though.

​On the upside

The Galaxy Muse’s six hours of battery life may not be suitable for all-day listening, but may at least take the pressure off of a battery-hungry smartphone (so long as it’s one of Samsung’s flagship models). And as PCMag’s Chloe Albanesius notes, “it’s not very convenient to strap a 5.5-inch Galaxy Note II to your arm when you hit the gym.”

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
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Newsman's disappearance largely kept secret

NEW YORK (AP) — NBC was able to keep the abduction of chief Middle East correspondent Richard Engel in Syria largely a secret until he escaped late Monday because it persuaded some of this country's most prominent news organizations to hold back on the story.

Otherwise, the disappearance of Engel — probably the most high-profile international television reporter on a U.S. network — would have been big news.

Engel and three colleagues, producers Ghazi Balkiz and Aziz Akyavas and photographer John Kooistra, escaped during a firefight between rebels and their captors, forces sympathetic to the Syrian government. The journalists were dragged from their cars, kept bound and blindfolded and threatened with death.

NBC said it did not know what had happened to the men until after their escape. The first sign of trouble came last Thursday, when Engel did not check back with his office at an agreed-upon time.

The Associated Press learned of Engel's disappearance independently and was asked to keep the news quiet upon contacting NBC, said John Daniszewski, the AP's vice president and senior managing editor.

"A general principle of our reporting is that we don't want to write stories that are going to endanger the lives of the people that we are writing about," Daniszewski said. The first few days after an abduction are often crucial to securing the captive's release.

In any case, he said, the AP never had enough information to report to its standards. "The fragmentary information we did receive was not solid or sourced in a way we could use. We had no actual news to report until they got out on Tuesday and NBC went public with the story," he said.

CBS News also said that it had honored NBC's request, but a spokeswoman declined to discuss it. ABC, Fox News and CNN were also contacted by NBC.

CNN, in an editor's note affixed to a website story on Engel's escape, noted NBC's request. CNN said it complied to allow fact-finding and negotiations to free the captors before it became a worldwide story.

"Hostage negotiators say that once the global spotlight is on the missing, the hostages' value soars, making it much harder to negotiate their freedom," CNN said.

For similar reasons, the AP did not report its own news several years ago when a photographer was kidnapped in the Gaza Strip, securing his release within a day. In one celebrated case of secrecy, The New York Times withheld news that reporter David Rohde was kidnapped while trying to make contact with a Taliban commander in Afghanistan. Rohde escaped after seven months in captivity.

It wasn't clear whether Engel's abductors knew what they had at the time. That knowledge, CNN argued, could have greatly complicated any negotiations. In this case, the captors did not make any ransom demands during the time he was missing.

This isn't simply a professional courtesy; the AP has withheld news involving overseas contractors in the past, Daniszewski said. For similar reasons, the organization does not reveal details of military or police actions it learns about beforehand if the news will put people at risk, and doesn't write about leaders heading into war zones until they are safely there.

Still, it's not a decision lightly taken by news organizations. "The obligation of journalists is to report information, not withhold it, except in exceptional circumstances," said Robert Steele, a journalism ethics professor at DePauw University.

The news that Engel was missing was first reported Monday by Turkish journalists who had heard about Akyavas' involvement, and was picked up by the U.S. website Gawker.com. In explaining why the news was reported, Gawker's John Cook wrote that no one had told him of a specific or even general threat to Engel's safety.

"I would not have written a post if someone had told me that there was a reasonable or even remote suspicion that anything specific would happen if I wrote the post," Cook wrote.

He also noted that China's Xinhua News Agency and the Breitbart website had also reported on Engel's disappearance. Breitbart's John Nolte attached a note to his report saying that he wasn't even aware of any news embargo until after hearing that Engel had been released.

The news was also tweeted by a small number of journalists, apparently unaware of the embargo request.

Whether a disappearance has become widely known could influence a decision by AP on whether to withhold the news, Daniszewski said. In this case, it wasn't clear that it had been widely circulated, he said.

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Attackers in Pakistan Kill Anti-Polio Workers

Rizwan Tabassum/Agence France-Presse — Getty Images

A Pakistani mother mourned her daughter, who was killed on Tuesday in an attack on health workers participating in a drive to eradicate polio from Pakistan.

ISLAMABAD, Pakistan — Gunmen shot dead five female health workers who were immunizing children against polio on Tuesday, causing the Pakistani government to suspend vaccinations in two cities and dealing a fresh setback to an eradication campaign dogged by Taliban resistance in a country that is one of the disease’s last global strongholds.

“It is a blow, no doubt,” said Shahnaz Wazir Ali, an adviser on polio to Prime Minister Raja Pervez Ashraf. “Never before have female health workers been targeted like this in Pakistan. Clearly there will have to be more and better arrangements for security.”

No group claimed responsibility for the attacks, but most suspicion focused on the Pakistani Taliban, which has previously blocked polio vaccinators and complained that the United States is using the program as a cover for espionage.

The killings were a serious reversal for the multibillion-dollar global polio immunization effort, which over the past quarter century has reduced the number of endemic countries from 120 to just three: Pakistan, Afghanistan and Nigeria.

Nonetheless, United Nations officials insisted that the drive would be revived after a period for investigation and regrouping, as it had been after previous attacks on vaccinators here, in Afghanistan and elsewhere.

Pakistan has made solid gains against polio, with 56 new recorded cases of the diseases in 2012, compared with 192 at the same point last year, according to the government. Worldwide, cases of death and paralysis from polio have been reduced to less than 1,000 last year, from 350,000 worldwide in 1988.

But the campaign here has been deeply shaken by Taliban threats and intimidation, though several officials said Tuesday that they had never seen such a focused and deadly attack before.

Insurgents have long been suspicious of polio vaccinators, seeing them as potential spies. But that greatly intensified after the C.I.A. used a vaccination team headed by a local doctor, Shakil Afridi, to visit Osama bin Laden’s compound in Abbottabad, reportedly in an attempt to obtain DNA proof that the Bin Laden family was there before an American commando raid attacked it in May 2011.

In North Waziristan, one prominent warlord has banned polio vaccinations until the United States ceases drone strikes in the area.

Most new infections in Pakistan occur in the tribal belt and adjoining Khyber-Pakhtunkhwa Province — some of the most remote areas of the country, and also those with the strongest militant presence. People fleeing fighting in those areas have also spread the disease to Karachi, the country’s largest city, where the disease has been making a worrisome comeback in recent years.

After Tuesday’s attacks, witnesses described violence that was both disciplined and well coordinated. Five attacks occurred within an hour in different Karachi neighborhoods. In several cases, the killers traveled in pairs on motorcycle, opening fire on female health workers as they administered polio drops or moved between houses in crowded neighborhoods.

Of the five victims, three were teenagers, and some had been shot in the head, a senior government official said. Two male health workers were also wounded by gunfire; early reports incorrectly stated that one of them had died, the official said.

In Peshawar, the capital of Khyber-Pakhtunkhwa Province, gunmen opened fire on two sisters participating in the polio vaccination program, killing one of them. It was unclear whether that shooting was directly linked to the Karachi attacks.

In remote parts of the northwest, the Taliban threat is exacerbated by the government’s crumbling writ. In Bannu, on the edge of the tribal belt, one polio worker, Noor Khan, said he quit work on Tuesday once news of the attacks in Karachi and Peshawar filtered in. “We were told to stop immediately,” he said by phone.

Still, the Pakistani government has engaged considerable political and financial capital in fighting polio. President Asif Ali Zardari and his daughter Aseefa have been at the forefront of immunization drives. With the help of international donors, including the Bill and Melinda Gates Foundation, they have mounted a huge vaccination campaign aimed at up to 35 million children younger than 5, usually in three-day bursts that can involve 225,000 health workers.

The plan seeks to have every child in Pakistan immunized at least four times per year, although in the hardest-hit areas one child could be reached as many as 12 times in a year.

Declan Walsh reported from Islamabad, and Donald G. McNeil Jr. from New York. Salman Masood contributed reporting from Islamabad, and Zia ur-Rehman from Karachi, Pakistan.

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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.

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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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