Judge stops sales of Cocaine drink in Texas
A judge has halted sales of the energy drink Cocaine in Texas, keeping the beverage on the shelf at least until the manufacturer’s November court date with the state over accusations it may be selling an unapproved drug.
Texas Attorney General Greg Abbott sought the injunction at least until the Nov. 5 trial date in Dallas County District Court.
“Texans have zero tolerance for those who peddle products meant to mimic illegal drugs,” Abbott said in a statement Wednesday. “This advertising campaign enticed young people with illegal drug references and false claims of health benefits.”
The court issued the injunction Tuesday prohibiting Nevada-based Redux Beverages and its distributors from marketing, warehousing and distributing the drink. Redux, which did not immediately return an e-mail request Wednesday for comment, agreed to the injunction without admitting wrongdoing, Abbott said.
Federated reverses loss, misses estimates
Federated Department Stores said Wednesday it swung to first-quarter profit, but adjusted earnings missed Wall Street estimates as sales at newly converted Macy’s stores remained weak.
The company earned $36 million, or 8 cents per share, in the quarter ended May 5, compared with a year-ago loss of $52 million, or 9 cents per share, hurt by a hefty charge.
Excluding costs associated with the company’s integration of May Department Stores Co., which it acquired in 2005, earnings rose to 16 cents per share from 1 cent per share last year. Analysts had forecast a profit of 19 cents per share.
Sales slipped 0.1 percent to $5.92 billion from $5.93 billion, missing estimates for $5.99 billion.
‘Hillbillies’ actor sells Carson City land parcel
Max Baer Jr. has sold the old Wal-Mart site in Carson City for $8.5 million to a firm that seeks to bring new life to old commercial buildings, a broker for the deal said.
“The company purchases buildings like these and puts new tenants in them,” said broker Gary Johnson of NAI Alliance in Reno.
A sales deed filed with the Carson City Recorder’s office shows the property was purchased by Carson Southgate, a firm in Bellevue, Wash.
Baer, who played Jethro in the 1960s television sitcom, “The Beverly Hillbillies,” paid $4.3 million for the site in August 2003. The property includes nearly 13 acres and a 119,000-square-foot building.
AMR shareholders defeat exec pay plan
Shareholders of American Airlines parent AMR Corp. rejected a proposal that would have given them a nonbinding vote on top executives’ compensation.
About 59 percent of shareholders opposed the plan by the Allied Pilots Association, representing 12,000 employees at Fort Worth, Texas-based American. AMR’s board urged shareholders to turn down the plan, saying it would hurt recruiting of managers.
The vote pitted the board against pilots and other labor groups critical of bonuses paid last month to 874 executives and managers, including $6.64 million to Chief Executive Officer Gerard Arpey. Unionized employees are still working under wage concessions made in 2003 to help AMR avert bankruptcy.
Northwest overcomes bankruptcy hurdle
Northwest Airlines Corp. overcame a major obstacle on its path to exiting bankruptcy Wednesday when a judge approved a settlement with a shareholder group that had opposed the carrier’s reorganization.
Judge Allan Gropper approved the $5 million settlement at the start of a Northwest hearing to seek acceptance of its restructuring plan. The hearing was scheduled to continue today.
MOUNTAIN VIEW, Calif.
Google adding video to main search page
In its latest technological leap, online search leader Google will begin showing videos on its main results page Wednesday along with photos, books and other content previously separated into different categories.
Under a new “universal search” approach that Google began introducing Wednesday afternoon, some requests will produce more than just a series of links and snippets pointing to other Web sites.
As an example, the results to the search request “I have a dream” will include an actual video showing Martin Luther King Jr.’s famous 1963 speech along with the usual assortment of Web links.
The videos will be shown on Google’s results page if it’s contained in the company’s own database or the vast library of its YouTube subsidiary. A thumbnail will direct traffic to videos hosted on other sites like Metacafe.com.
Bond prices decline after economic news
Treasury bonds fell somewhat Wednesday due to a batch of stronger-than-expected economic data.
At 5 p.m. EDT, the 10-year Treasury note was down 63 cents per $1,000 in face value, or 0.06 points, from its level at 5 p.m. Tuesday. Its yield was unchanged at 4.71 percent.
The 30-year bond fell 0.06 points, with its yield holding at 4.88 percent.