Compiled by Julie Leupold
TECHNOLOGY
A former human resources executive at Irvine’s Broadcom Corp. agreed to settle a civil case with the Securities and Exchange Commission for her role in the backdating of stock options at the chipmaker. Nancy Tullos is set to pay $1.4 million without admitting or denying wrongdoing. In a separate criminal probe, Tullos struck a deal with federal prosecutors late last year and agreed to plead guilty to one count of obstruction of justice in exchange for her cooperation. In other news, Broadcom bought Sunnyvale-based Sunext Design Inc., a maker of chips for high-definition video players, for up to $48 million if Sunext meets certain sales goals.
Aliso Viejo-based Quest Software Inc. received notice that the SEC plans to sue the company, Chief Executive Vinny Smith, another employee and two former chief financial officers for suspected violation of securities laws related to misdated stock options. The notice indicates regulators plan to recommend civil action and give the recipients a chance to respond.
Shares of Aliso Viejo’s Smith Micro Software Inc., a maker of cell phone software, soared late last week after it gave a yearly sales estimate that topped Wall Street’s expectations. The stock was up 20% on a recent market value of about $190 million. Smith Micro said it expects revenue of $95 million to $105 million for 2008. Analysts had expected about $102 million.
HEALTHCARE
Allergan Inc. received a federal subpoena for documents relating to its Botox drug. The Irvine drug maker said the request from the U.S. Attorney’s Office in Georgia covers materials related to promotional, educational and other activities for Botox. Allergan said it believes the subpoena relates to off-label use of Botox for headaches.
Valeant Pharmaceuticals International sold its Asia-Pacific operations to Invida Pharmaceutical Holdings Pte Ltd. of Singapore for $37.8 million. Aliso Viejo-based Valeant said Invida acquired licensing rights and operations for products sold in 12 Asian markets. Separately, the drug maker said in an SEC filing that it would restate results from 2002 to last Sept. 30 to fix accounting errors at some foreign operations.
REAL ESTATE
Hotel owner Sunstone Hotel Investors Inc. said Chief Executive Steven R. Goldman resigned to take a job at Hilton Hotels Corp. as president of global real estate and development. Chairman and former chief executive Robert “Bob” Alter was named interim chief, effective March 31.
A lender foreclosed on two apartment buildings in Tustin where SunCal Cos. planned to build townhomes. That brings to four the number of properties the Irvine-based developer has lost to foreclosure. SunCal also lost a Santa Ana complex this month and a 1,300-acre tract near Reno, Nev., last month. Liens, lawsuits and complaints have been filed alleging the company owes at least $5.8 million in unpaid debts and is behind on two developments.
APPAREL
Costa Mesa-based Paul Frank Industries Inc. sold rights to the clothing company’s designs and trademark cartoon characters to Australia’s Creata and confirmed that designer Mossimo Giannulli has become an investor. Giannulli appears to be a key force behind the licensing deal, terms of which weren’t disclosed. The move is expected to bring layoffs at Paul Frank this year.
Huntington Beach-based Quiksilver Inc. reported a wider-than-expected loss for the three months ended Jan. 31 but shares rose on word the company plans to “reduce or eliminate” its slumping ski and snowboard business. Quiksilver lost $14.9 million, excluding results from the company’s golf gear business that was sold off last year. Analysts had expected a loss of $12.5 million. Revenue rose 15% to $605.3 million, beating Wall Street’s expected $561 million.
FINANCE
Australia’s Macquarie Bank Ltd. is buying a majority stake in Huntington Beach-based bond fund manager Allegiance Investment Management LLC, which will be renamed Macquarie Allegiance Capital LLC. Terms weren’t disclosed for the deal set to close in the second quarter.
GOVERNMENT
The Anaheim City Council essentially stripped itself of the power to add homes and other non-tourism uses to the city’s Resort District near Disneyland. The 3-2 vote is seen as a victory for Walt Disney Co. in its effort to keep housing out of the area. Anaheim voters now will have the final say on any housing project the City Council approves. After the vote, developer Urban West withdrew a proposal to build 449 condominiums and commercial space in the area. Another developer is evaluating the future of the site of a closed Toys “R” Us building on Harbor Boulevard, where 191 condos and a 102-room hotel were proposed.
