TOP STORY
Irvine-based chipmaker Broadcom Corp. paid $160 million to settle a class action shareholder lawsuit related to stock options backdating. Under the settlement, claims against Broadcom and some former executive officers and directors will be dropped in exchange for a payment by Broadcom. The proposed settlement still must be approved by a judge. The company and the individual defendants, all former Broadcom executives and board members, “vigorously contested” the allegations. The settlement allows them to deny any wrongdoing. Broadcom said it expects to record the payment as a onetime charge against results for the fourth quarter. The lawsuit was brought on behalf of investors who bought or acquired Broadcom’s shares from July 21, 2005, to July 13, 2006. Former Broadcom finance chief Bill Ruehle and cofounder and technology adviser Henry Samueli—both cleared last month of criminal charges for backdating stock options—are named as defendants, along with Broadcom itself.
TECHNOLOGY
Irvine-based Newport Corp., a maker of lasers that are used in chip making, scientific research and medical devices, recently was upgraded by an analyst. Ajit Pai of Thomas Weisel Partners LLC changed his rating to “overweight” from “market weight,” suggesting clients buy more of Newport’s shares. The upgrade was based on overall better prospects for the chip industry and the profit boost Newport is set to see after paying down some of its debt. He also lifted his price target to $12 per share, up from an earlier estimate of $8 per share. The stock was trading at around $9 per share last week. Earlier in December, Newport said it paid down $20 million in debt. It still has about $127 million in outstanding debt set to come due in 2012.
HEALTHCARE
Aliso Viejo-based drug maker Valeant Pharmaceuticals International said its seizure drug retigabine is being reviewed for possible approval by U.S. and European regulators. Valeant wants to sell retigabine as a treatment for adult epilepsy patients with partial onset seizures. In September, Valeant said it planned to submit applications for retigabine with the Food and Drug Administration and the European Union’s European Medicines Agency. The company’s announcement last week confirmed its applications have been accepted by regulators.
REAL ESTATE
Santa Ana-based First American Corp. is opening a Phoenix call center where the company expects to employ about 400 people within two years. First American, which provides title insurance and real estate-related data, is opening the call center in March, according to the company. The company expects the center to have 100 workers when it opens, 200 by the end of 2010 and 400 by 2012. First American expects to hire customer service representatives, claims agents and managers. First American Home Buyers Protection Corp., a unit that offers warranties to homebuyers, is starting the center.
RETAIL
After weeks of speculation, Dean & DeLuca won’t open a gourmet grocery store at Fashion Island as planned. For the past few months, retail watchers have speculated about the fate of the planned Fashion Island store, which saw a stall in construction and its opening date pushed back. A spokesman for Irvine Company, which runs the Newport Beach mall, confirmed last month that Dean & DeLuca doesn’t plan to move ahead with the store. The company is looking for another tenant to take the space Dean & DeLuca had been looking to occupy.
FINANCE
Bill Gross, who stepped in to run the $7.61 billion Pimco High Yield Fund in May after its former manager left the company, will hand over the reins to Andrew Jessop at the start of next year. Jessop, an executive vice president at the Newport Beach-based Pacific Investment Management Co., joined as a senior member of the high-yield team in November from Goldman Sachs Group Inc. The Pimco High Yield Fund previously was managed by Mark Hudoff, who left to work at Los Angeles-based Hotchkis & Wiley Capital Management. At the time, Pimco said Gross would fill a “temporary gap” until a permanent successor was found.
OTHER NEWS
The Department of Housing and Urban Development awarded the County of Orange $11 million for homeless assistance. The money will provide transitional shelter and support services for families and individuals, as well as permanent supportive housing for the disabled and those with special needs.
