roadcom Corp. said Tuesday that it will pay more than $160 million in cash to settle a class-action investor lawsuit related to stock option backdating but did not admit wrongdoing. The Irvine, Calif.-based chipmaker said in a statement that it would take the settlement, which still needs a judge’s approval, as a one-time charge in the fourth quarter. The deal would represent the second-largest up-front cash recovery from a company accused of stock option backdating, said Thomas A. Dubbs, attorney for the lead plaintiff, the New Mexico State Investment Council. The current Broadcom lawsuit was filed by investors who bought or acquired shares of the company’s common stock between July 21, 2005, and July 13, 2006, and includes several million shareholders. — The Associated Press
Outback settles sex-discrimination case
Outback Steakhouse has agreed to pay $19 million to female workers and take other steps, including hiring a new human-resources executive, to settle a sex-discrimination lawsuit. A consent decree describing the settlement between the Tampa, Fla.-based restaurant chain and the U.S. Equal Employment Opportunity Commission was filed in U.S. District Court in Denver on Tuesday. The commission filed a lawsuit against Outback there in 2006, claiming that female workers were denied favorable jobs. — The Associated Press
Dallas bank agrees to order from FDIC
Equity Bank SSB of Dallas agreed to an order from the Federal Deposit Insurance Corp. requiring the bank to cease "unsafe or unsound banking practices." Among those stipulations, Equity Bank is forbidden from operating with an excessive level of delinquent loans and an inadequate system for problem loan identification, and it must maintain at least 15 percent of its deposits in the loan categories required by Texas statute. Equity Bank, which neither admitted nor denied the FDIC’s findings, has two Dallas branches. It reported $251 million in assets as of Sept. 30. —Star-Telegram
Florida edges Texas in insurance cost survey
Texas is no longer the most expensive state for homeowners insurance, according to the National Association of Insurance Commissioners’ latest survey, released Tuesday. The group, which represents state insurance regulators, said that in 2007 Florida was No. 1, at an average $1,534. That topped Texas’ $1,448, which was just ahead of No. 3 Louisiana at $1,400. The U.S. average was $822. The group noted that because Texas produces its own policy forms, which vary from national forms, "Texas data should not be compared directly with any other state." It also noted that Florida’s state-run insurer writes wind-only policies in some parts of the state, and therefore the cost of comprehensive coverage may be significantly underestimated in large parts of the state. The association said factors that affect home insurance rates include real estate values, construction costs and exposure to natural catastrophe risks. — Star-Telegram
Sikorsky unit wins helicopter contract
United Technologies Corp.’s Sikorsky unit won a $171 million contract for 14 UH-60 helicopters designed for the United Arab Emirates. The contract was awarded on Dec. 22, the Pentagon said Tuesday on its Web site.
— Bloomberg News
Source: Billions more in GMAC aid discussed
GMAC Inc., the home and auto lender, is discussing with the Obama administration an additional aid package of about $3 billion to $4 billion, according to a person familiar with the matter. The size of the assistance remains under negotiation, the person said on condition of anonymity because the talks are private. A deal may be reached within days as Detroit-based GMAC incorporates losses from its home-loan businesses, the person also said. — Bloomberg News
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