Investors sue Lehman Brothers
A group of investors is suing Lehman Brothers Inc. for $100 million, claiming a predecessor of the securities firm used deceptive tactics to sell real-estate limited partnerships that were arranged in a way that left them worthless, said the group's attorney.
The attorney said his clients filed suit, seeking class-action status, yesterday in U.S. District Court in Dallas on behalf of thousands of investors in four of 11 similar partnerships sold by E. F. Hutton in the 1980s that raised $250 million.
Lehman hadn't seen the lawsuit, a spokeswoman said, but the firm expects to contest it.
Chicago Sun-Times will be sold
The Chicago Sun-Times, the nation's 11th-largest daily newspaper, will be bought by the Canadian publishing company Hollinger Inc. for about $180 million in cash, the companies said yesterday. The agreement includes 60 weekly and biweekly suburban papers published by the Sun-Times Co.'s Pioneer Press and Star Newspapers units.
The Sun-Times, a tabloid, had a weekday circulation of 535,793. Hollinger's U.S. division, American Publishing Co., publishes 97 daily newspapers with a total paid circulation of about 540,000.
Blockbuster shareholders act
Blockbuster Entertainment Corp. shareholders yesterday filed a court motion seeking to block the company from taking any step to complete its sale of a majority stake to Viacom Inc. The motion, filed in Delaware Chancery Court, seeks a temporary restraining order until a court hearing can be held. Viacom shares have declined sharply, largely because of Viacom's victory in the marathon takeover battle for Paramount Communications Inc.
Humana takes over HMO
Humana Inc. yesterday completed its purchase of the ailing Group Health Association, a health maintenance organization serving Washington and the Maryland suburbs. The $50 million sale, approved by GHA's 130,000 members last fall, gives the Louisville, Ky.-based Humana a foothold in one of the hottest health care markets in the country. GHA President and CEO Robert P. Pfotenhauer resigned effective today.
U.S. warns France on exports
The United States warned Paris yesterday to stop blocking its fish exports, raising fears of a tit-for-tat strike against French wine and cheese. The food fight erupted early last month, when France began restricting a range of foreign fish, leaving it to rot on the docks to appease French fishermen leery of cheaper imports. The Clinton administration says it has yet to decide what French product to target if the fish standoff is not resolved, but wine and cheese were reported high on the list, and action was expected to come soon.