Business news briefs for March 29, 2004

Monday, March 29, 2004 | 11:26 a.m.

Shareholders sue

A class action shareholders' lawsuit was filed last week against Universal Health Services Inc. -- parent company of Spring Valley, Desert Springs, Valley and Summerlin hospitals in Las Vegas -- alleging Universal overstated its financial situation, harming shareholders when UHS stock fell earlier this month.

Attorneys with Schiffrin & Barroway LLP filed the lawsuit in U.S. District in Pennsylvania.

The complaint alleges King of Prussia, Pa.-based Universal Health failed to disclose that it was facing increased competition in some of its markets including Las Vegas. The complaint also alleges Universal failed to indicate that its payer mix deteriorated while its bad debt rose to "unfathomable levels." Another allegation is that Universal didn't provide an adequate allowance for doubtful accounts, which led to overstated operating income.

UHS officials could not be reached for comment on the allegations.

HOUSTON:

Lyondell Chemical Co. agreed to buy Millennium Chemicals Inc. for $1 billion in stock to gain the world's No. 2 producer of titanium dioxide.

SPRINGDALE, Ark.:

Tyson Foods Inc. said today that the Securities and Exchange Commission is investigating benefits received by some board members and company officers.

Medical operator Tularik sold

THOUSAND OAKS, Calif. -- Amgen Inc., the world's biggest biotechnology company, today said it agreed to buy Tularik Inc. for about $1.3 billion in stock to gain experimental treatments for cancer, obesity and heart disease.

Exec gets 24 years in fraud

HOUSTON -- A federal judge ordered a crushing 24-year prison sentence last week for a former Dynegy Inc. executive in an accounting fraud case that fell under tough new punishment rules aimed at discouraging corporate corruption.

Jamie Olis, a former senior director of tax planning for the energy company, is obliged to serve nearly all of his sentence of 24 years and four months because there is no parole in the federal system. He is 38, and would be behind bars until he is 62.

"I take no pleasure in sentencing you to 292 months," U.S. District Judge Sim Lake said in ordering the prison term last week. "Sometimes good people commit bad acts, and that's what happened in this case."

The punishment "reflects Congress' intent that white-collar corporate fraud defendants receive harsh sentences," Lake observed from the bench.

Judge throws out lawsuit

LOS ANGELES -- A judge today dismissed the Winnie the Pooh lawsuit against the Walt Disney Co. with prejudice, concluding that Pooh rights owner Stephen Slesinger Inc. "tampered with the administration of justice" by unlawfully obtaining Disney documents in the case.

The ruling by Superior Court Judge Charles W. McCoy Jr. came in response to a motion to dismiss by Disney, which alleged SSI had withheld, stolen and possibly manufactured documents in the long-running case.

McCoy sided with Disney, calling SSI's actions "egregious and inexcusable."

"After 13 years in the courts, the Winnie the Pooh case is finally over," said Daniel Petrocelli, attorney for the Walt Disney Co. "Disney's position has been vindicated in its entirety. We're obviously extremely pleased with the outcome and we think it was the only appropriate one."