TOP STORIES
A computer virus called “ILoveYou” and a second one called “VERRY FUNNY” raced through OC and around the world, disrupting millions of computers, including systems at UCI, Fluor Corp., Ingram Micro Inc. and Broadcom Corp. … Broadcom Corp., Irvine, entered the fiber-optic market with a 10-gigibit-per-second circuit, about 10 times faster than current circuits; Broadcom also introduced a chip to allow set-top boxes to double as high-speed Internet modems … Paul Reddam resigned as chairman of Costa Mesa-based Ditech.com, and owner GMAC Residential Holdings said it had sent several executives to assist its unit after three DiTech managers (Vincent Pozzuoli, Gregory DeLong and Jay Marx) were indicted on federal extortion charges … SM & A; Corp., Newport Beach, changed its name to Emergent Information Technologies Inc. and shook up top management and the board (see story page 80) Unsealed search-warrant affidavits showed that police believe Dr. Larry Ford masterminded the assassination attempt against his business partner, Irvine-based Biofem Inc. CEO James Patrick Riley, and had information that Ford, who committed suicide shortly after the failed attempt on Riley, had planted toxic chemicals in his home and those of associates, had experimented on unwitting patients and that he and his alleged mistress had drugged people before having sex with them … Equitable Distributors Inc., Newport Beach, a subsidiary of the French firm Axa Financial Inc., said it will move its headquarters and 110 jobs to New York.
FINANCIAL
PrintNation.com, Irvine, received $25.5 million in funding from a group led by Lehman Bros. Venture Partners … NeoTherapeutics Inc., Irvine, completed an $7 million private placement (see item on page 89) … Log On Data Corp., Orange, received $5 million in equity funding from the Darwin Group, which will get two of five Long On board seats … Eight officers of Irvine-based Allergan Inc. filed to sell a total of 1.31 million shares of the company … PharmaPrint Inc., Irvine, was delisted by Nasdaq … Shares of Oakley Inc., Foothill Ranch, rose on a reported rise in quarterly sales Shares of Wet Seal Inc., Foothill Ranch, fell after an earnings warning … Shares of Pacific Sunwear of California Inc., Anaheim, fell after a disappointing April sales report … Day Runner Inc., Fullerton, approved a 1-for-5 reverse stock split.
WHAT’S NEW
Western Digital Corp., Irvine, and 11 other firms said they will invest $100 million to create an Internet marketplace for PC parts … Downey Savings & Loan, Newport Beach, said it will install 221 ATMs in Ralph supermarkets statewide … Endocare Inc., Irvine, reported encouraging results of studies of its cryoablation technology for the treatment of kidney disease … ICN Pharmaceuticals Inc., Costa Mesa, received FDA approval to market Nystatin, an antifungal agent … Rainbow Technologies Inc., Irvine, received a contract to supply Pitney Bowes Inc. with encryption technology … CooperVision, Lake Forest, said it will launch a new line of colored contact lenses … MedCom USA Inc., Irvine, said it will build a data warehouse and ASP center in Lakeland, Fla. CEO Jane M. Christie added the title of chairwoman of General Automation Inc., Irvine, succeeding interim chairman Robert McClure, who had filled in following the death of Lawrence Michaels.
DEALS
Bascom Group, Irvine, acquired the Hillpointe Apartments in Mission Viejo from Polygon Management for $21.2 million … InSight Health Services Corp., Newport Beach, said it will acquire a 90% stake in a diagnostic-imaging center in Wilkes-Barre, Pa. … Bridge Technology Inc., Garden Grove, said it had acquired another 30% of Hong Kong-based CMS Technology Ltd., bringing its total stake to 90% … Corinthian Colleges Inc., Santa Ana, said it will acquire Academy of Business Inc., Phoenix … Internet Business’s International Inc., Newport Beach, acquired Atlas Capital Corp., Irvine … Telenetics Corp., Lake Forest, completed its acquisition of Racon Inc., Seattle … GoPublicNow.com, Newport Beach, said it will acquire So Cal Securities, Dana Point … Churm Publishing (OC Metro magazine) of Newport Beach acquired controlling interest in Golf Media Group, publisher of Orange County Golf Beckman Coulter Inc., Fullerton, concluded a revised agreement worth $45 million to supply its immunoassay system to Novation, Irvine, Texas.
GOVERNMENT
LA Superior Court Judge S. James Otero ruled that OC can resume spending money on planning an airport at El Toro because a Measure F provision on spending limits is too vague to be enforceable; supervisors said they are considering placing an advisory vote on the proposed El Toro airport on the November ballot; supervisor Chuck Smith expressed support for the so-called “V plan” for an El Toro airport that would realign the runways … John Wayne Airport was second in the nation behind LAX in the number of near-collisions involving planes on runways, with nine last year, according to the FAA …The House Judiciary Committee approved a five-year extension of the moratorium, co-sponsored by OC Rep. Chris Cox, on new taxes that target Internet commerce … Preliminary design costs for the Foothill South (241) Toll Road could rise from the $16.5 million approved in 1998 to more than $29 million, officials said, and the cost of building the proposed road will certainly exceed the prior $644 million estimate … The OC Water District approved a rate hike of about 7%.
LITIGATION, INVESTIGATIONS
Nanogen Inc., San Diego, sued to invalidate a DNA-technology patent licensed to Beckman Coulter Inc., Fullerton, by MIT (see related story on page 1) … Three OC creditors of Pixelon Corp., San Juan Capistrano, filed a petition to force the company into Chapter 7 bankruptcy … The SEC charged Mark Malatesta of San Clemente with fraudulently touting over-the-counter stocks on the Internet … Former Coto de Caza resident William Madon was charged with securities fraud for allegedly running a phony mutual fund that received nearly $20 million from about 250 investors.
IN CONCLUSION
The Laguna Beach Council OK’d a new lease offer to the Festival of the Arts that would give the Festival a greater say in how the rent money is spent by the city; the San Clemente Council extended its negotiations with the festival … The chihuahua spokesdog of Irvine-based Taco Bell Corp. became the first animal to open trading on the NYSE.
