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Feb 28, 2015

Buffett says ‘sprawl’ is good, but may not be good enough

NEW YORK (Reuters) – Warren Buffett wants to buy more businesses to add to Berkshire Hathaway Inc’s (BRKa.N: Quote, Profile, Research, Stock Buzz) “sprawl,” but cautioned it may not keep the company he has run for 50 years from evolving into something rarely used to describe it up until now: average.

In his annual letter to shareholders, Buffett on Saturday said Berkshire’s huge balance sheet gives him the power to funnel capital to some of the more than 80 operating units that deserve it, while its decentralized structure makes it the “home of choice” for many businesses looking to sell.

Feb 28, 2015

Warren Buffett says Berkshire has ‘right person’ as heir

NEW YORK (Reuters) – Warren Buffett told investors on Saturday that Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) had found his successor, giving more details than ever about the heir to the company he has run for 50 years.

“Both the board and I believe we now have the right person to succeed me as CEO – a successor ready to assume the job the day after I die or step down,” the billionaire, 84, said in his annual letter to Berkshire shareholders.

Feb 27, 2015

Sleepy’s defamation case vs Select Comfort is revived -US court

NEW YORK, Feb 27 (Reuters) – A federal appeals court in New
York has revived a lawsuit accusing bedding retailer Select
Comfort Corp of defamation for employing sales staff
who discouraged undercover shoppers from buying beds at rival
Sleepy’s LLC.

The 2nd U.S. Circuit Court of Appeals on Friday overturned a
lower court’s dismissal of Sleepy’s lawsuit against Select
Comfort, which also accused the maker of “Sleep Number”
adjustable beds of breach of contract.

Feb 27, 2015

U.S. appeals court throws out investor action against UBS

By Jonathan Stempel and Joshua Franklin

(Reuters) – A U.S. appeals court on Friday upheld a 2013
ruling that UBS AG was not liable to shareholders for saying it
was able to control risk even as a rogue trader caused $2.3
billion in losses.

Plaintiffs led by two pension funds in Elmsford, New York,
claimed that before former UBS trader Kweku Adoboli’s trades
were revealed on Sept. 15, 2011, UBS officials had misled
investors by frequently touting the Swiss bank’s internal
controls and “disciplined” risk culture.

Feb 27, 2015

Buffett, a cheerleader for America, takes his checkbook abroad

NEW YORK (Reuters) – Warren Buffett, in his annual letter to Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) shareholders last year, called America “the mother lode of opportunity.”

This year, his 50th at Berkshire’s helm, the world’s third-richest person could write something quite different.

Feb 27, 2015

Preview – Buffett, a cheerleader for America, takes his checkbook abroad

NEW YORK (Reuters) – Warren Buffett, in his annual letter to Berkshire Hathaway Inc shareholders last year, called America “the mother lode of opportunity.”

This year, his 50th at Berkshire’s helm, the world’s third-richest person could write something quite different.

Feb 26, 2015

U.S. court revives Macy’s claims vs JC Penney over Martha Stewart

NEW YORK, Feb 26 (Reuters) – A New York state appeals court
on Thursday revived most of Macy’s Inc’s lawsuit accusing
JC Penney Co of interfering improperly with its
exclusive merchandising contract with Martha Stewart Living
Omnimedia Inc.

The decision by the Appellate Division in Manhattan restored
two claims by Macy’s that a lower court judge had dismissed. It
also agreed that Macy’s third claim against JC Penney was valid,
but that Macy’s did not deserve punitive damages.

Feb 26, 2015

U.S. court restores $18 mln award to man freed in NYC rape case

By Jonathan Stempel

(Reuters) – A federal appeals court on Thursday restored an
$18 million jury verdict against New York City and in favor of a
man who sued after spending 22 years behind bars for a rape he
did not commit.

The 2nd U.S. Circuit Court of Appeals said the city
intentionally or recklessly deprived Alan Newton of his due
process rights by taking more than a decade to locate a rape kit
that showed his DNA did not match samples from the victim.

Feb 26, 2015

Bank of America in $300 mln Fontainebleau Las Vegas settlement

By Jonathan Stempel

(Reuters) – Bank of America Corp on Wednesday said
it reached a $300 million settlement of a lawsuit brought by
lenders that helped finance construction of the failed
Fontainebleau Resort and Casino in Las Vegas, which filed for
bankruptcy protection in June 2009.

The bank, which had arranged a $1.85 billion credit
facility, was accused of funneling money into Fontainebleau long
after it should have known that financial prospects for the
projected $2.9 billion project were worsening.

Feb 25, 2015

Engineer pleads guilty in U.S. to trying to take jet materials to Iran

By Jonathan Stempel

(Reuters) – A former engineer for Pratt & Whitney and other defense contractors pleaded guilty on Wednesday to trying to export sensitive information about U.S. military jets to his native Iran, where he hoped to find a job, the U.S. Department of Justice said.

Mozaffar Khazaee, 60, admitted to violating the federal Arms Export Control Act, after being accused of trying between 2009 and 2013 to send stolen materials that related to engines used in the U.S. Air Force’s F35 Joint Strike Fighter program and the F-22 Raptor program.

    • About Jonathan

      "I cover legal and regulatory matters, and am based in New York. I have covered banking, finance, Warren Buffett and corporate bonds."
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