Newspaper article The Florida Times Union

Morning Briefing

Newspaper article The Florida Times Union

Morning Briefing

Article excerpt

CAPITAL ONE WARNED SOME OF PROBE

Capital One Financial Corp. gave advance notice to some of its lenders and advisers that its chief financial officer planned to resign amid an insider trading probe.

The McLean, Va.-based consumer credit company said in a prepared statement yesterday that it had discussions with some of its "lenders under its corporate credit facility, advisers, rating agencies and regulators shortly before the public announcement" last week of the probe and the resignation of finance chief David Willey.

In the March 3 announcement, Capital One said Willey resigned after receiving notice that the SEC's staff planned to recommend that the securities agency file a lawsuit alleging that Willey "traded in the company's stock while in possession of material nonpublic information."

Capital One said that its advance discussions with its lenders and others, some of whom the company said were holders of its asset-backed securities, were "subject to confidentiality obligations."

JUDGE LIMITS DISCRIMINATION SUIT

A federal judge in Georgia has denied class-action status to a lawsuit against Cracker Barrel Old Country Store Inc., which alleged discrimination against African-American workers at the company's restaurants.

In a 175-page ruling issued Friday, U.S. District Court Judge Harold Murphy said the employees did not prove the merits of a national class-action suit.

It was the second time in six months that Murphy rejected a class-action lawsuit brought by the same attorneys against the Lebanon, Tenn.-based restaurant chain.

TISSUE EXECS FACE FRAUD CHARGES

Federal authorities yesterday announced criminal charges against former top executives of American Tissue Inc., once one of the nation's biggest makers of paper tissue, saying the company lied and cheated to keep up the facade of profitability.

Mehdi Gabayzadeh, the former chief executive officer and part owner of American Tissue, was among four ex-executives accused in court papers of swindling banks, financial institutions and investors of nearly $300 million.

A former employee of the public accounting firm Arthur Andersen LLP also was arrested for allegedly destroying American Tissue accounting documents.

TV GUIDE REVISES 3 YEARS' EARNINGS

Gemstar-TV Guide International Inc. said yesterday it will cut revenue and profit for parts of 2000, 2001 and 2002 after an accounting review by its new auditor.

The Pasadena, Calif., publisher of TV Guide magazine said the restatement will reduce revenue by $110.9 million, and slash income before taxes and some costs by $36.3 million.

Earnings before interest, taxes, depreciation and amortization will be reduced by $45.2 million, the company said.

The restatements will affect the first quarter and fourth quarter of 2000, the fourth quarter of 2001, and the first three quarters of 2002. …

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