Koop, who transformed surgeon general post, dies


With his long silver beard and uniform with braided trim, former Surgeon General C. Everett Koop became one of the most recognizable figures of the Reagan era — and one of the most unexpectedly enduring.


His nomination in 1981 met a wall of opposition from women's groups and liberal politicians, who complained President Ronald Reagan selected Koop, a pediatric surgeon and evangelical Christian from Philadelphia, only because of his conservative views, especially his staunch opposition to abortion.


Soon, though, he was a hero to AIDS activists, who chanted "Koop, Koop" at his appearances but booed other officials. And when he left his post in 1989, he left behind a landscape where AIDS was a top research and educational priority, smoking was considered a public health hazard, and access to abortion remained largely intact.


Koop, who turned his once-obscure post into a bully pulpit for seven years during the Reagan and George H.W. Bush administrations and who surprised both ends of the political spectrum by setting aside his conservative personal views on issues such as homosexuality and abortion to keep his focus sharply medical, died Monday at his home in Hanover, N.H. He was 96.


An assistant at Koop's Dartmouth College institute, Susan Wills, confirmed his death but didn't disclose its cause.


Although the surgeon general has no real authority to set government policy, Koop described himself as "the health conscience of the country" and said modestly just before leaving his post that "my only influence was through moral suasion."


A former pipe smoker, Koop carried out a crusade to end smoking in the United States; his goal had been to do so by 2000. He said cigarettes were as addictive as heroin and cocaine. And he shocked his conservative supporters when he endorsed condoms and sex education to stop the spread of AIDS.


"A lot of people don't realize what an important role he played in the beginning of the AIDS epidemic. At the time, he really changed the national conversation, and he showed real courage in pursuing the duties of his job," said Chris Collins, a vice president of amFAR, the Foundation for AIDS Research.


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


Although Koop eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy, his nomination met staunch opposition.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed after he told a Senate panel he would not use the surgeon general's post to promote his religious ideology. He kept his word.


In 1986, he issued a frank report on AIDS, urging the use of condoms for "safe sex" and advocating sex education as early as third grade.


He also maneuvered around uncooperative Reagan administration officials in 1988 to send an educational AIDS pamphlet to more than 100 million U.S. households, the largest public health mailing ever.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop further angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


Koop maintained his personal opposition to abortion, however. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day, but Reagan would not interfere.


Koop, worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, opened his institute at Dartmouth to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was born in the New York City borough of Brooklyn, the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats.


He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


Koop received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it.


In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children — Allen, Norman, David and Elizabeth. David, their youngest son, was killed in a mountain climbing accident when he was 20.


Koop was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine.


He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was by far the best-known surgeon general, and for decades afterward was still a recognized personality.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


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Ring reported from Montpelier, Vt. Cass reported from Washington. AP Medical Writer Lauran Neergaard in Washington contributed to this report.


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'Identity Thief' tops box office with $14 million


NEW YORK (AP) — A week after losing the box office title to Bruce Willis, Melissa McCarthy took it back again.


McCarthy's road trip comedy "Identity Thief" topped the box office in its third week of release on Oscar weekend with $14 million for Universal. 20th Century Fox's "A Good Day to Die Hard," starring Willis, slid to fifth with $10.1 million.


The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:


1. "Identity Thief," Universal, $14,017,085, 3,222 locations, $4,350 average, $93,619,615, three weeks.


2. "Snitch," Lionsgate, $13,167,607, 2,511 locations, $5,244 average, $13,167,607, one week.


3. "Escape From Planet Earth," Weinstein Co., $10,682,037, 3,353 locations, $3,186 average, $34,812,699, two weeks.


4. "Safe Haven," Relativity Media, $10,454,713, 3,223 locations, $3,244 average, $47,916,356, two weeks.


5. "A Good Day to Die Hard," Fox, $10,165,633, 3,555 locations, $2,860 average, $51,967,897, two weeks.


6. "Dark Skies," Weinstein Co., $8,189,166, 2,313 locations, $3,540 average, $8,189,166, one week.


7. "Silver Linings Playbook," Weinstein Co., $5,750,866, 2,012 locations, $2,858 average, $107,176,012, 15 weeks.


8. "Warm Bodies," Lionsgate, $4,825,388, 2,644 locations, $1,825 average, $58,243,441, four weeks.


9. "Beautiful Creatures," Warner Bros., $3,608,333, 2,950 locations, $1,223 average, $16,570,598, two weeks.


10. "Side Effects," Open Road Films, $3,357,039, 2,070 locations, $1,622 average, $25,099,555, three weeks.


11. "Zero Dark Thirty," Sony, $2,230,084, 1,197 locations, $1,863 average, $91,539,075, 10 weeks.


12. "Argo," Warner Bros., $1,827,165, 802 locations, $2,278 average, $129,653,502, 20 weeks.


13. "Hansel and Gretel: Witch Hunters," Paramount, $1,684,532, 1,425 locations, $1,182 average, $52,945,086, five weeks.


14. "Life of Pi," Fox, $1,605,366, 572 locations, $2,807 average, $113,525,126, 14 weeks.


15. "Lincoln," Disney, $1,481,081, 875 locations, $1,693 average, $178,603,571, 16 weeks.


16. "Mama," Universal, $1,173,900, 1,163 locations, $1,009 average, $70,230,570, six weeks.


17. "Quartet," Weinstein Co., $1,125,886, 356 locations, $3,163 average, $8,844,950, seven weeks.


18. "Django Unchained," Weinstein Co., $971,655, 659 locations, $1,474 average, $158,783,430, nine weeks.


19. "Amour," Sony Pictures Classics, $716,186, 328 locations, $2,183 average, $5,147,242, 10 weeks.


20. "Wreck-It Ralph," Disney, $645,870, 402 locations, $1,607 average, $186,676,411, 17 weeks.


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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Online:


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Horsemeat found in IKEA meatballs









PRAGUE/STOCKHOLM (Reuters) - Sweden's Ikea stopped nearly all sales of meatballs at its furniture store cafeterias across Europe after tests in the Czech Republic on Monday showed some contained horsemeat.

The world's No. 1 furniture retailer, known also for the signature restaurants at its huge out-of-town stores, said it was pulling all meatballs produced by its main supplier in Sweden after the tests showed horsemeat in its beef and pork meatballs.

A European scandal erupted last month when tests in Ireland revealed some beef products contained horsemeat, triggering recalls of ready-made meals in several countries and damaging confidence in Europe's vast and complex food industry.

Meatballs, a famous Swedish dish often served with mashed potatoes, gravy and lingonberry jam, have become a trademark for IKEA, which sells them hot from the in-store cafeterias and packaged off the shelf.

The vast majority of Ikea's meatballs are made by Sweden's Familjen Dafgard, which said on its website that it was investigating the situation and would receive further test results in coming days.

The withdrawals did not affect meatballs in Norway, Russia, nor some in Switzerland or Poland, which were made by other suppliers, said Ikea spokeswoman Ylva Magnusson at the company's headquarters in Helsingborg, southern Sweden.

"We are now getting to the bottom of this and making extra tests, but we have decided to stop the meatball sales for a few days, so that no one needs to worry, until we have the results," Magnusson said.

IKEA stores in the United States, Canada, Australia and Japan were unaffected as they too have other suppliers.

Besides the Czech Republic, the batch containing horsemeat had also been on sale in Britain, Portugal, Netherlands, Belgium, Slovakia, Hungary, France, Italy, Spain, Greece, Cyprus and Ireland.

Magnusson said the test results would determine the percentage of horsemeat in the specific batch of meatballs. There was no indication that any other batch had been affected.

Earlier this month, food manufacturer Findus was forced to recall thousands of packages of frozen beef lasagnes in Sweden after discovering they contained 60 to 100 percent horsemeat.

On the sidelines of a meeting in Brussels, Sweden's rural affairs minister Eskil Erlandsson called the test results awful.

"Consumers should know that what is labelled on the package should also be inside the package and nothing else," he told Reuters, adding that it may damage IKEA's reputation.

"All fraud has an impact on the reputation of a company, especially when you talk about meat or other foodstuffs."

However, he did not see a need for the European Union to enforce mandatory origin labels for processed meat.

In Italy, consumer rights group Codacons called for checks on all meat products sold by IKEA in the country.

"We are ready to launch legal action and seek compensation not only against the companies who are responsible but also those whose duty it was to protect citizens," Codacons President Carlo Rienzi said in a statement.

The Czech State Veterinary Administration had reported its findings to the EU's Rapid Alert System for Food and Feed, it said in a statement.

The inspectors took samples for DNA tests in IKEA's unit in the city of Brno from a product labelled as "beef and pork meatballs", it said.

(Additional reporting by Mia Shanley in Stockholm, Maria Pia Quaglia in Milan and Charlie Dunmore in Brussels; Writing by Anna Ringstrom; Editing by Tom Pfeiffer)



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Oscars 2013 live: Rolling out the red carpet









LOS ANGELES -- The Oscars rolled out the red carpet on Sunday for the movie industry's biggest night, with Iran hostage drama "Argo" and presidential drama "Lincoln" in a tight race for Best Picture.


With several contests too close to call, a slate of big box office hits to celebrate and an unpredictable first-time host in Seth MacFarlane, movie fans could be in for surprises when the curtain rises on the 85th annual Academy Awards.


Before the festivities begin, nominees including Jennifer Lawrence, Hugh Jackman, Sally Field, Jessica Chastain, British singer Adele and "Argo" producer George Clooney, along with performers Barbra Streisand and Jennifer Hudson will parade along the 500-ft long (152 meter) red carpet before dozens of photographers and camera crews.








MORE OSCARS: Red carpet pics | Live stream | Oscars trivia quiz


Inside Hollywood's Dolby Theatre, Academy Awards history could be re-written.


Daniel Day-Lewis as U.S. President Abraham Lincoln is considered an unstoppable force to become the first man to win three Best Actor Oscars.


Buzz is building over a possible late upset by France's Emmanuelle Riva, 86, in the Best Actress contest that would make the star of harrowing Austrian entry "Amour" the oldest person ever to win an acting Oscar.


"Lincoln" goes into Sunday's three-hour plus ceremony with a leading 12 nominations, including a directing nod for double Oscar winner Steven Spielberg.

But its front-runner Best Picture status has been dented by the six-week victory streak enjoyed at other Hollywood awards by Ben Affleck's "Argo."

"It's been an interesting year," said Matt Atchity, editor in chief of movie review website Rotten Tomatoes.

"I think 'Argo' probably has the best shot. It's certainly got the momentum. It has won so many top awards, and I think it's probably the movie to beat," Atchity told Reuters.

If "Argo" does prevail for the top prize, it will be the first movie to win Best Picture without its director even getting a nomination since "Driving Miss Daisy" in 1990.

ANNE HATHAWAY OSCAR BOUND

Musical "Les Miserables," comedy "Silver Linings Playbook," shipwreck tale "Life of Pi," Osama bin laden thriller "Zero Dark Thirty," slavery Western "Django Unchained," indie film "Beasts of the Southern Wild," and "Amour" round out the contenders for the best film of 2012.

In other categories, only Anne Hathaway is considered a sure bet to take home a golden statuette after starving herself and chopping off her long brown locks for her supporting turn as tragic heroine Fantine in "Les Miserables."

Awards pundits says Spielberg could lose out in the director's race to Taiwan's Ang Lee for his technical and imaginative feat in filming fantastical adventure "Life of Pi" with a cast of exotic animals.

And the supporting actor Oscar could go to any of the five nominees - Robert De Niro ("Silver Linings Playbook"), Alan Arkin ("Argo"), Christoph Waltz ("Django Unchained"), Tommy Lee Jones ("Lincoln") and Philip Seymour Hoffman ("The Master").

The Oscar winners are chosen in secret ballots by some 5,800 members of the Academy of Motion Picture Arts and Sciences and handed out before an audience of 3,300 guests and tens of millions more watching around the world on television.

After several years of nominating little-seen movies, this year's nine Best Picture contenders have pulled in more than $2 billion in tickets worldwide.

"We are so fortunate to inherit this great group of films that are also popular at the box office ... We just lucked out and had this fantastic year in film," Academy Awards telecast co-producer Neil Meron told Reuters.

Producers are promising a fast-paced show packed with music and big performances. But the man getting the early attention will be MacFarlane, the provocative comedian behind animated TV series "Family Guy" and an unknown quantity as Oscar host.

"We are not going to know what works until we put it out there and see what plays in front of an audience," co-producer Craig Zadan said.

"It's a live show and that is always unpredictable. Once the train has left the station, whatever happens, happens."





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Apple signals emerging-market rethink with India push


NEW DELHI/BANGALORE (Reuters) - As BlackBerry launches the first smartphone from its make-or-break BB10 line in India, one of its most loyal markets, the company faces new competition from a formidable rival that has long had a minimal presence in the country.


More than four years after it started selling iPhones in India, Apple Inc is now aggressively pushing the iconic device through installment payment plans that make it more affordable, a new distribution model and heavy marketing blitz.


"Now your dream phone" at 5,056 rupees ($93), read a recent full front-page ad for an iPhone 5 in the Times of India, referring to the initial payment on a phone priced at $840, or almost two months' wages for an entry-level software engineer.


The new-found interest in India suggests a subtle strategy shift for Apple, which has moved tentatively in emerging markets and has allowed rivals such as Samsung and Blackberry to dominate with more affordable smartphones. With the exception of China, all of its Apple stores are in advanced economies.


Apple expanded its India sales effort in the latter half of 2012 by adding two distributors. Previously it sold iPhones only through a few carriers and stores it calls premium resellers.


The result: iPhone shipments to India between October and December nearly tripled to 250,000 units from 90,000 in the previous quarter, according to an estimate by Jessica Kwee, a Singapore-based analyst at consultancy Canalys.


At The MobileStore, an Indian chain owned by the Essar conglomerate, which says it sells 15 percent of iPhones in the country, iPhone sales tripled between December and January, thanks to a monthly payment scheme launched last month.


"Most people in India can't afford a dollar-priced phone when the salaries in India are rupee salaries. But the desire is the same," said Himanshu Chakrawarti, its chief executive.


Apple, the distributors, retailers and banks share the advertising and interest cost of the marketing push, according to Chakrawarti. Carriers like Bharti Airtel Ltd, which also sell the iPhone 5, run separate ads.


India is the world's No. 2 cellphone market by users, but most Indians can't afford fancy handsets. Smartphones account for just a tenth of total phone sales. In India, 95 percent of cellphone users have prepaid accounts without a fixed contract. Unlike in the United States, carriers do not subsidize handsets.


Within the smartphone segment, Apple's Indian market share last quarter was just 5 percent, according to Canalys, meaning its overall penetration is tiny.


Still, industry research firm IDC expects the Indian smartphone market to grow more than five times from about 19 million units last year to 108 million in 2016, which presents a big opportunity.


Samsung Electronics dominates Indian smartphone sales with a 40 percent share, thanks to its wide portfolio of Android devices priced as low as $110. The market has also been flooded by cheaper Android phones from local brands such as Micromax and Lava.


Most smartphones sold in India are much cheaper than the iPhone, said Gartner analyst Anshul Gupta.


"Where the masses are - there, Apple still has a gap."


'I LOVE INDIA, BUT...'


Apple helped create the smartphone industry with the iPhone in 2007, but last year lost its lead globally to Samsung whose free Android software is especially attractive in Asia.


Many in Silicon Valley and Wall Street believe the surest way to penetrate lower-income Asian markets would be with a cheaper iPhone, as has been widely reported but never confirmed. The risk is that a cheap iPhone would cannibalize demand for the premium version and eat into Apple's peerless margins.


The new monthly payment plan in India goes a long way to expanding the potential market, said Chakrawarti.


"The Apple campaign is not meant for really the regular top-end customer, it is meant to upgrade the 10,000-12,000 handset guy to 45,000 rupees," he said.


Apple's main focus for expansion in Asia has been Greater China, including Taiwan and Hong Kong, where revenue grew 60 percent last quarter to $7.3 billion.


Asked last year why Apple had not been as successful in India, Chief Executive Tim Cook said its business in India was growing but the group remained more focused on other markets.


"I love India, but I believe that Apple has some higher potential in the intermediate term in some other countries," Cook said. "The multi-layer distribution there really adds to the cost of getting products to market," he said at the time.


Apple, which has partly addressed that by adding distributors, did not respond to an email seeking comment.


Ingram Micro Inc, one of its new distributors, also declined comment. Executives at Redington (India) Ltd, the other distributor, could not immediately be reached.


BlackBerry, which has seen its global market share shrivel to 3.4 percent from 20 percent over the past three years, is making what is seen as a last-ditch effort to save itself with the BB10 series.


The high-end BlackBerry Z10 to be launched in India on Monday is expected to be priced not far from the 45,500 rupees price tag for an iPhone 5 with 16 gigabytes of memory. Samsung's Galaxy S3 and Galaxy Note 2, Nokia's Lumia 920 and two HTC Corp models are the main iPhone rivals.


Until last year, Blackberry was the No. 3 smartphone brand in India with market share of more than 10 percent, thanks to a push into the consumer segment with lower-priced phones. Last quarter its share fell to about 5 percent, putting it in fifth place, according to Canalys. Apple was sixth.


($1 = 54.2000 Indian rupees)


(Additional reporting by Aradhana Aravindan in MUMBAI and Poornima Gupta in SAN FRANCISCO; Editing by Tony Munroe and Mark Bendeich)



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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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Promise, peril seen for crowd-funding investors









Crowd funding is widely seen as a revolutionary idea.


A 2012 federal law known as the JOBS Act opens the door to allowing small, privately owned businesses to market ownership stakes in their ventures to people over the Internet.


Companies will be able to sell up to $1 million in equity a year to ordinary investors without having to register the offering with the Securities and Exchange Commission or state regulators.





Before the average person can use crowd funding to stake a claim in a startup, the SEC still must draft rules that the Obama administration hopes will result in U.S. businesses growing and adding jobs. At the same time, the securities cop needs to include safeguards that protect less sophisticated individual investors drawn to inherently risky startups.


That's why equity crowd funding under JOBS, or Jumpstart our Business Startups, has some longtime regulators and securities lawyers squirming.


"It can be an invitation for fraudsters to steal money," Matthew Brown, a Katten Muchin Rosenman lawyer, said last month at a CFA Society of Chicago event at 1871, a center for digital startups in Chicago.


But Brown also noted that equity crowd funding also democratizes small-business financing, a process that historically has given access mostly to wealthier — or, as they're known in high-finance circles, "accredited" — investors.


"The world has changed dramatically, and who's to say who is smarter than anyone else?" Brown added.


Many existing crowd-funding platforms such as Kickstarter don't sell equity stakes in businesses to average investors. Rather, they give consumers the chance to donate money to an enterprise or to get an early or discounted crack at a new product. Since Kickstarter's launch in April 2009, more than $450 million has been pledged by more than 3 million people funding more than 35,000 projects, the New York-based company's website says.


Their acceptance suggests that consumers are willing to engage with companies on a deeper level. As such, enabling unaccredited consumers to invest in companies in small increments online has promise and could become part of the fundraising "ecosystem," says one Chicago entrepreneur.


Abe's Market, a Chicago-based e-commerce site selling natural and organic products from more than 1,000 suppliers, said it would consider crowd funding under the JOBS Act, saying it and its vendors have "die-hard fans" and "a core group of customers" who might like to invest in their vision.


Last month, Abe's raised $5 million from Carmel Ventures, Index Ventures, Beringea and Accel Partners, a Groupon backer. New backers include OurCrowd, a crowd-funding site for accredited investors.


"If you can get passionate people to invest in your business, you're not just gaining investors, you're gaining evangelists," Abe's Chief Executive Richard Demb said. "The challenge for any consumer brand is: How do you find not just customers, but the right customers who are going to tell their friends?"


But there would also be potential headaches for companies raising equity financing through crowd funding, he said.


"You have to make sure that expectations would be set fairly, that no one is putting their life savings into the investment, and that they don't also come back and become a challenge to manage as the business grows," Demb said. "You don't want someone who invested $250 to come back and say, 'I don't think we should expand to the West Coast.'"


Safeguards for average investors exist in the JOBS Act. They include capping nonaccredited individuals' crowd-funding investments at $2,000, or 5 percent of annual income or net worth of less than $100,000, whichever is greater.


Snapclass, launched a few weeks ago at 1871, provides software enabling businesses to provide training online. Co-founder Scott Mandel, who has financed the company himself, doesn't expect to take advantage of equity crowd funding in the future and instead would seek, say, venture capital funding.


"Not all checks are the same," said Mandel, previously a trader and professional poker player. "I'd want someone who could add more than just the cash, such as connections and experience and help with things that I'm not an expert in."


One of 1871's fastest-growing startups is MarkITx. It recently raised $1.2 million from wealthy individuals in its first fundraising round, has seven employees and is looking to add sales jobs. It's an online exchange for businesses wanting to buy and sell used information technology equipment, from iPads to Oracle servers.


"For us, it wouldn't be the sole way to raise money, but it definitely is a viable vehicle to look at raising money," MarkITx partner Marc Brooks said of equity crowd funding under the JOBS Act.





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Multi-car wreck injures spectators of NASCAR race

YouTube video posted by user tyler4dx that shows fans being injured by debris coming into the grandstand area at Daytona International Speedway.









DAYTONA BEACH – At least 15 people in the stands were reportedly injured at Daytona International Speedway when a multi-car accident sent wreckage into the safety fence in front of the grandstand Saturday afternoon.


The accident came on the final lap of the NASCAR Nationwide Series DRIVE4COPD 300.


Initial reports say at least 15 fans were injured, including four who were strapped to backboards.








Volusia County emergency responders transported eight race fans, six of which were trauma level patients with serious injuries, said Volusia County government spokesman Dave Byron.


Six of those patients were sent to Halifax Health Medical Center, one was taken to Florida Hospital Memorial Medical Center in Daytona Beach and one at Halifax Medical Center in Port Orange.


Florida Hospital spokeswoman Lindsay Rew confirmed they currently have one patient but are expecting four more.


Halifax Health Medical Center officials have not confirmed the number of patients at their facility but sources say there are about 10.


"The important thing is what's going on the front stretch right now," race winner Tony Stewart said."We've always known since racing was started this is a dangerous sport. But it's hard. We assume that risk. It's hard when the fans get caught up in it.


"As much as we want to celebrate right now, as much as this is a big deal to us, I'm more worried about the drivers and fans in the stands right now. I could see it all in the mirror and it didn't look good from where I was either."


As drivers jockeyed for position on the final lap, a number of cars made contact. Kyle Larson's' car was essentially sheared in half as cars spun out of control..


His engine ending up in front of fans along the front stretch after the car tore through the catch fence _ designed to protect fans in case of accidents. The debris splattered all over, going as far as to hit a spectator 45 rows up in the stands at Daytona International Speedway. Other car parts -- included a tire -- also flew into the stands.


"I know I took a couple of big hit there and saw my engine was gone," Larson said.


Although no driver was seriously hurt, NASCAR officials were still trying to assess if any fans had been seriously hurt.


"You've been able to see and explain," said Mike Helton, NASCAR President on the ESPN broadcast following the race. "There was some intrusion into the fence and there were plenty of emergency worker ready to go and jumped right into it quickly."


"They are moving folks into the care center and Halifax Medical Center."


Driver Michael Annett was transported to Halifax Medical Center after his car slammed into the SAFER barrier head on during an earlier incident during the race.


NASCAR spokesman Kerry Tharp said the damage to the stands in time for the running of the 55th Daytona 500 Sunday afternoon.


Sentinel staff writer Arelis R. Hernández contributed to this report. Read George Diaz's blog at OrlandoSentinel.com/enfuego or e-mail him at gdiaz@orlandosentinel.com



 




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Einhorn scores legal victory versus Apple in cash scuffle


NEW YORK (Reuters) - A U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with Apple Inc on Friday, blocking the iPhone maker from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


U.S. District Judge Richard Sullivan in Manhattan granted a motion by Einhorn's Greenlight Capital for a preliminary injunction stopping a vote on that proposal, scheduled for the company's February 27 stockholders' meeting.


The decision could hand Einhorn more leverage as he pursues his pitch for Apple to issue what he has called the "iPref": preferred stock with a perpetual dividend that he contends would reward investors and help boost the company's share price.


Greenlight sued Apple on February 7 as part of a broader pitch to unlock more of its $137 billion in cash. The hedge fund manager has lobbied Apple to issue preferred stock with a perpetual 4 percent dividend, and on Thursday made a direct appeal to shareholders on a teleconference.


Apple Chief Executive Tim Cook last week dismissed the lawsuit as a "silly sideshow."


The lawsuit itself challenged a measure called Proposal No. 2 that Apple put forward, which would eliminate its power to issue preferred shares without a shareholder vote.


At issue is Apple's "bundling" of that measure with two other unrelated matters into a single proxy proposal.


Greenlight said it supported two of the proposed amendments, but not the one on preferred shares.


In his ruling, Sullivan said Greenlight and another investor who also sued Apple "are likely to succeed on the merits and face irreparable harm if the vote on Proposal No. 2 is permitted to proceed."


"We are disappointed with the court's ruling. Proposal No. 2 is part of our efforts to further enhance corporate governance and serve our shareholders' best interests," Apple spokesman Steve Dowling said. "Unfortunately, due to today's decision, shareholders will not be able to vote on Proposal No. 2 at our annual meeting next week."


A spokesman for Greenlight called the ruling a "significant win for all Apple shareholders and for good corporate governance."


But not all shareholders were happy. California pension fund Calpers, a major Apple investor and public supporter of Apple's proposal, said implementation of "majority voting and shareholder approval for the issuance of new stock - preferred or otherwise - is worth waiting for."


"We encourage Apple to reintroduce these measures as soon as is practical so that all investors can be heard," Anne Simpson, Calpers' director of global governance, said in a statement.


BUNDLES


The ruling could be a warning for other companies when issuing proxy proposals, said James Cox, a professor at Duke University School of Law.


"It's going to make managers reluctant to bundle things together, because you're never going to know when you send them out if there's an Einhorn out there," he said.


The lawsuit was centered on a narrow issue of whether Apple violated U.S. Securities and Exchange Commission rules by "bundling" the preferred shares item with two other unrelated matters into one proxy proposal.


Greenlight's lawyers contended the SEC rules were intended to protect shareholders from being forced to vote for a proxy proposal involving materially different issues that the investors might not entirely support.


Apple had argued Proposal No. 2, which only dealt with amendments to its charter, constitute a single matter and wasn't bundled. Sullivan called the company's arguments "unavailing."


"Given the language and purpose of the rules, it is plain to the Court that Proposal No. 2 impermissibly bundles 'separate matters' for shareholder consideration," Sullivan wrote.


Judge Sullivan also found that Greenlight would be irreparably harmed without the injunction, since it would be forced to vote against its own interests. Denying Greenlight's motion would prevent it and other investors from exercising their rights to a fair vote, Sullivan said.


Sullivan separately declined to block a vote from going forward on a separate proxy proposal, Proposal No. 4, which sought an advisory "say on pay" vote on Apple executives' compensation.


The proposal had been challenged by investor Brian Gralnick of Pennsylvania, who contends Apple did not disclose enough details about how it made its compensation decisions.


Sullivan rejected that argument, saying Apple's disclosures were "plainly sufficient under SEC rules."


Arnold Gershon, a lawyer for Gralnick at Barrack, Rodos & Bacine, said he was "very pleased" with Sullivan's decision to the extent it enjoined the Proposal No. 2 vote, though said he would have to decide what to do next with regard to the say-on-pay proposal.


Sullivan directed the parties to submit a joint letter by March 1 outlining the next contemplated steps in this case.


Apple shares closed up 1.1 percent at $450.81 on Friday.


The case is Greenlight Capital LP, et al., v. Apple Inc., U.S. District Court, Southern District of New York, 13-900.


(Reporting by Nate Raymond in New York; Additional reporting by Poornima Gupta in San Francisco; Editing by Martha Graybow, Gary Hill, Leslie Adler, Carol Bishopric and Lisa Shumaker)



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Fans injured when car sails into fence at Daytona


DAYTONA BEACH, Fla. (AP) — At least 12 NASCAR fans were injured Saturday when large chunks of debris, including a tire, sailed into the grandstands when a car flew into the fence at Daytona International Speedway on a frightening last-lap accident in the second-tier Nationwide Series race.


The crash began as the field closed in on the finish line and sent rookie Kyle Larson's car sailing into the fence that separates the track from the seats.


Large chunks of Larson's car landed in the grandstands. The car itself had its entire front end sheared off, with the burning engine wedged through a gaping hole in the fence.


Volusia County spokesman Dave Byron said six people with serious injuries were taken by ambulance to Halifax Health Medical Center in Daytona Beach.


"Those six met the condition of trauma patients," Byron said, adding one person was also taken to Halifax in Port Orange. That injury was not serious.


Lindsay Rew, a spokeswoman for Florida Hospital Memorial Medical Center, said its Daytona Beach hospital had one fan there who was in good condition. She said they were expecting three more people who were coming by ambulance, but she didn't yet know their conditions.


NASCAR and Daytona International Speedway officials were scheduled to discuss the accident at 7 p.m. EST on Saturday night.


"There obviously was some intrusion into the fence and fortunately with the way the event's equipped up, there were plenty of emergency workers ready to go and they all jumped in on it pretty quickly," NASCAR President Mike Helton said after the accident. "Right now, it's just a function of determining what all damage is done. They're moving folks, as we've seen, to care centers and take some folks over to Halifax Medical."


As emergency workers tended to injured fans and ambulance sirens wailed in the background, a somber Tony Stewart skipped the traditional post-race victory celebration.


Stewart, who won for the 19th time at Daytona and seventh time in the last nine season-opening Nationwide races, was in no mood to celebrate.


"The important thing is what going on on the frontstretch right now," said Stewart, the three-time NASCAR champion. "We've always known, and since racing started, this is a dangerous sport. But it's hard. We assume that risk, but it's hard when the fans get caught up in it.


"So as much as we want to celebrate right now and as much as this is a big deal to us, I'm more worried about the drivers and the fans that are in the stands right now because that was ... I could see it all in my mirror, and it didn't look good from where I was at."


The accident spread into the upper deck and emergency crews treated fans on both levels. There were five stretchers that appeared to be carrying fans out, and a helicopter flew overhead. A forklift was used to pluck Larson's engine out of the fence, and there appeared to be a tire in the stands.


Daytona President Joie Chitwood waited by steps as emergency workers attended to those in the stands. Across the track, fans pressed against a fence and used binoculars trying to watch. Wrecked cars and busted parts were strewn across the garage.


"It's a violent wreck. Just seeing the carnage on the racetrack, it's truly unbelievable," driver Justin Allgaier said.


It was a chaotic finish to a race that was stopped nearly 20 minutes five laps from the finish by a 13-car accident that sent driver Michael Annett to a local hospital, where his Richard Petty Motorsports team said he would be held overnight with bruising to his chest.


The race resumed with three laps to go, and the final accident occurred with Regan Smith leading as he headed out of the final turn to the checkered flag. He admittedly tried to block Brad Keselowski to preserve the win.


"I tried to throw a block, it's Daytona, you want to go for the win here," Smith said. "I don't know how you can play it any different other than concede second place, and I wasn't willing to do that today. Our job is to put them in position to win, and it was, and it didn't work out."


As the cars began wrecking all around Smith and Keselowski, Stewart slid through for the win, but Larson plowed into Keselowski and his car was sent airborne into the stands. When Larson's car came to a stop, it was missing its entire front end. The 20-year-old, who made his Daytona debut this week, stood apparently stunned, hands on his hips, several feet away from his car, before finally making the mandatory trip to the care center.


He later said his first thought was with the fans.


"I hope all the fans are OK and all the drivers are all right," Larson said. "I took a couple big hits there and saw my engine was gone. Just hope everybody's all right."


He said he was along for the ride in the last-lap accident.


"I was getting pushed from behind, I felt like, and by the time my spotter said lift or go low, it was too late," Larson said. "I was in the wreck and then felt like it was slowing down and I looked like I could see the ground. Had some flames come in the cockpit, but luckily I was all right and could get out of the car quick."


It appeared fans were lined right along the fence when Larson's car sailed up and into it.


"Honestly, the race itself pales in comparison to the injuries sustained by the fans," said Chip Ganassi, the team owner who has Larson in his driver development program. "Our thoughts and prayers go out to all the fans that were injured as a result of the crash. As for Kyle, I am very happy that he is OK."


Keselowski watched a replay of the final accident, but said his first thoughts were with the fans. As for the accident, he agreed he tried to make a winning move and Smith tried to block.


"He felt like that's what he had to do, and that's his right. The chaos comes with it," Keselowski said. "I made the move and he blocked it, and the two of us got together and started the chain events that caused that wreck. First and foremost, just want to make sure everyone in the stands is OK and we're thinking about them."


Keselowski said the incident could cast a pall on Sunday's Daytona 500.


"I think until we know exactly the statuses of everyone involved, it's hard to lock yourself into the 500," Keselowski said. "Hopefully, we'll know soon and hopefully everyone's OK. And if that's the case, we'll staring focusing on Sunday."


___


AP Sports Writer Dan Gelston in Daytona Beach and Associated Press writer Jennifer Kay in Miami contributed to this report.


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