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British Pharma Company Seeks FDA Approval for Marijuana Drug

Brand X Pictures/Thinkstock(LONDON) -- A British pharmaceutical wants the F.D.A. to approve the world's first "prescription" drug developed from key ingredients of marijuana.

It would be a medical milestone that would give some legitimacy to a plant that's caused so much controversy in this country. GW Pharmaceuticals of Britain has developed a mouth spray called "Sativex", that contains marijuana's two best known psychoactive ingredients, Delta-9 T-H-C and cannabinoids. The drug has already been approved in Canada, New Zealand, and eight European countries for relieving muscle spasms in patients with multiple sclerosis.

The drug company is in advanced trials to get the spray approved in the U.S. as treatment for severe cancer pain.

Copyright 2012 ABC News Radio?

Study: Racial Disparities in Bankruptcy Filings

Comstock/Thinkstock(TUCSON, Ariz.) -- Racial disparities in bankruptcy filings last year show African-Americans are more likely to file for Chapter 13 bankruptcy than people from other races, says a new study.

The study, "Race, Attorney, Influence, and Bankruptcy Chapter Choice" was conducted by Jean Braucher of the James E. Rogers College of Law at the University of Arizona, Dov Cohen of the University of Illinois and Robert M. Lawless of the University of Illinois College of Law and is forthcoming in the Journal of Empirical Legal Studies.

The study discussed the two forms of bankruptcy, "The chief feature of a chapter 13 bankruptcy case is a plan under which the debtor must devote all of his or her disposable income to creditor repayment over a 3- to 5-year period. Chapter 7, in contrast, requires only that the debtor turn over all nonexempt assets, with over 90% of chapter 7 debtors having no assets to turn over."

Chapter 7 costs less than Chapter 13. The study showed that bankruptcy lawyers tended to suggest African-Americans file Chapter 13 bankruptcy while recommending Chapter 7 filing for white clients with a similar financial history.

Copyright 2012 ABC News Radio

Road Warriors: Mayors Bringing Back Our Roads

iStockphoto/Thinkstock(NEW YORK) -- "See the USA in Your Chevrolet" the iconic 1956 musical sales pitch went, beckoning us to the great American road and heralding in a new chapter in the 20th century.

Those words, that call, were built on the Eisenhower expansion program, which created the best and biggest highways and roads in the world, and came to symbolize America's postwar vitality and promise -- 4 million miles of freedom bringing Americans from front porches to drive-ins to national parks.

But in the decades since the highway-building heyday, America's once celebrated roads are now ranked 20th -- behind Cyprus' and Malaysia's.

Today, one-third of America's major roads are in poor or mediocre condition, according to Building America's Future Educational Fund, a bipartisan organization of politicians dedicated to investing in infrastructure. The rundown roads contribute to half of all auto accidents because of things like narrow shoulders and frayed asphalt.

But enter a group of road warriors, the nation's mayors, shaking up Congress, saying, let's fix those potholes and clogged highways.

ABC News spoke with Mayors Antonio Villaraigosa of Los Angeles, Michael Nutter of Philadelphia and Scott Smith of Mesa, Ariz., about the steps they're taking to bring America back.

"If they pass the surface transportation bill and America Fast Forward, it will allow us to accelerate the building of that 30-year project in a 10-year period of time, creating 166,000 jobs," Villaraigosa said. "These are the kinds of innovative things that the Congress has an opportunity to do that they haven't done up to now. ... Their failure to address the No. 1 issue in America, the jobs issue, is akin to the captain of the Concordia jumping off the ship before the passengers had been rescued. This Congress needs to get back on that ship and do their job."

While the mayors would like the support of Capitol Hill, they aren't waiting to take action. Even in an economic downturn these mayors have managed to convince their constituents to raise revenue to build better roads and create jobs.

Smith passed a quarter of a penny sales tax in Mesa. Villaraigosa passed a similar tax in Los Angeles.

The mayors are also using public-private partnerships to get results and control costs. In Philadelphia, more children are able to ice skate because of a partnership between the city and Flyers owner Ed Snider.

"We have five ice rinks in the city that we operate. Unfortunately, I had to announce that in the next budget year, we would only be able to operate two of those five," Nutter told ABC News. "Ed Snider partnered with the city of Philadelphia, agreed to operate the other three that we were not going to be able to open. And ultimately, signed a lease with us to now operate all five."

These mayors say investing in the infrastructure of cities is the secret to jump-starting the economy.

"Ninety percent of the country's GDP happens in cities and metro areas," Nutter said. "If you have a company where 90 percent of your output was coming from one place, you wouldn't cut that area, you'd invest. You'd invest in research and innovation. You'd put more resources in that particular area."

It's a secret Villaraigosa said the rest of the world is acting on, and he argues it's about time America did too.

"If you go to China, Japan and Korea ... you don't have to tell any of those countries that modernizing their airports, building their ports and their roads are what you have to do if you want to compete around the world."

Copyright 2012 ABC News Radio

Cruise Survivors Consider Legal Action, Piece Lives Back Together

ANDREAS SOLARO/AFP/Getty Images(NEW YORK) -- One week after the Costa Concordia cruise ship crashed off the coast of Italy, leaving at least 11 people dead and 21 missing, newlyweds Benji Smith and Emily Lau said they were still trying to get their lives back together as they figured out how to hold those determined responsible for the accident accountable.

"When we first got off the ship we had the adrenaline to keep us pumping and moving," Smith said. "It's hard for us to imagine even working. This is all we can focus on."

The couple believes the cruise company, Costa Concordia, and not just the ship's captain, should be held responsible for the 11 deaths, and the emotional and physical injuries of the survivors. But Smith and Lau also voiced anger at Italian authorities and the U.S. Embassy for what they believed was their unresponsiveness after the escape on the island of Giglio.

More than 120 U.S. citizens were reportedly on the cruise ship, including a missing couple from Minnesota, Jerry and Barbara Heil.

Since returning to their Cambridge, Mass., home this week, Smith and Lau said they had been busy with doctors' appointments, and obtaining new driver's licenses, documentation and replacement car keys.

Smith, a computer scientist, and Lau, a musician, survived the crash by climbing down a rope on the side of the sinking ship. They said they still struggled with their physical and emotional well-being. Lau said she lost access to the entire upper range of her voice, which is problematic for a singer.

The couple had been married 14 days before the accident, which the CEO of the cruise company attributed to "human error" by Capt. Francesco Schettino. Authorities are investigating Schettino for suspected manslaughter and abandoning his ship, among other possible charges.

Under house arrest, Schettino told a judge he had tripped into a lifeboat and did not abandon his ship. Domnica Cemortan, a potential witness, said on Moltovan TV that Schettino was a hero and "the captain saved 3,000 to 4,000 people."

According to the Italian navigation code, a captain who abandons a ship in danger can face up to 12 years in prison.

Costa Crociere S.p.A., doing business as Costa Cruises, owned the cruise ship that carried about 4,200 people. Its parent is British-American company Carnival Corp., the largest company in the cruise industry, with more than 100 ships in service and 11 international brands.

Carnival Corp. did not respond to ABC News' requests for comment, but Carnival's CEO said in a statement: "This tragedy has called into question our company's safety and emergency response policies and procedures."

Morningstar, an independent investement research firm, has estimated the company will face an $85 million to $95 million loss in revenue while the ship is out of service. The capsizing cruise ship could cost its owners $130 million if the ship can be salvaged. If the $650 million luxury liner is too badly damaged, Costa and Carnival will have to absorb that cost too.

Survivors Arthur Beach, a civil defense lawyer, and his wife, Alex Beach, of Albuquerque, N.M., said they would not pursue any legal action, but seek compensation for their lost items.

Oscar Rosales and his family of El Paso, Texas, said they had not yet had the chance to consider whether they would participate in a legal response. Rosales, his wife, daughter and family friend, who all chose to stay in Rome for a few days after the accident, are returning to the U.S. Friday.

"For starters, I don't think they've done enough for the passengers, and so we'll just have to see what they're going to do next," Rosales said, who said the directions to hotels and flights home were "poorly mismanaged."

John H. "Jack" Hickey, a maritime trial attorney in Miami, said passengers seeking to bring claims against the Costa Concordia cruise company would have to do so in Genoa, Italy, where Costa is based, according to Carnival's ticket contract. Hickey represented passengers who suffered severe injuries in July 2006, after the Crown Princess cruise ship tilted nearly 24 degrees.

The ticket contract is about eight pages of legal terminology, which states "the Passenger assumes responsibility for his or her own safety and the Carrier cannot guarantee the Passenger's safety while on or off the Vessel," Forbes reported. If the cruise line had touched a U.S. port, passengers would be able to sue in Fort Lauderdale, Fla., Hickey said.

Hickey said he is considering whether to become involved in legal action. Four or five survivors of the recent crash have contacted his law office, and he has begun working with a lawyer in Italy. Hickey said those with physical and emotional injuries could potentially receive compensation in the Italian legal system, and all death claims should be pursued.

A class action has been initiated by an Italian consumer defense group, Codacons. About 70 passengers have reportedly joined the suit.

Carlo Rienzi, Codacons head, told the Agence France-Presse he hoped to get each passenger at least $12,774 in compensation for material and emotional damage.

Benji Smith and Emily Lau have said they are working on how to pursue legal action and which legal opinions to trust. The couple said they were reluctant to trust the cruise company even with the reimbursement of their lost luggage.

"We've just been failed, neglected and abandoned over and over again," Smith said.

Copyright 2012 ABC News Radio

California Woman Sues OJ Giant Tropicana Over Flavor Packs

Tim Boyle/Getty Images(VACAVILLE, Calif.) -- A California mother is taking on orange juice giant Tropicana, alleging in a lawsuit that the company's not-from-concentrate Pure Premium juice is "heavily processed" and not a "natural" product.

In a class-action suit filed Jan. 6 in U.S. District Court, Eastern District of California, Angelena Lewis, 32, of Vacaville alleges that the addition of aromas and flavor packs "changes the essential nature" of the juice.

"While Tropicana claims that 'making Tropicana orange juice is truly art,' it is far more a science," the lawsuit alleges.

If the class action moves forward, the lawsuit would represent anyone in the nation who had bought Tropicana Pure Premium, which is made by Tropicana Products, a division of Purchase, N.Y.-based PepsiCo Inc.

They allege that advertising claims are misleading and that Tropicana Products has violated consumer fraud statutes in various states, including California's false-misleading advertising law.

Lawyers have also made their claim under California's Legal Remedies Act and the Unfair Competition Law.

The lawsuit cites the packaging of the Pure Premium brand, "an illustration of an orange with a straw stuck into it, which is meant to convey the message that [not-from-concentrate] juice is fresh from the orange. This reinforces the '100 percent Pure and Natural Orange Juice' claim in large prominent type."

"It is not natural orange juice," according to the complaint. "It is instead a product that is scientifically engineered in laboratories, not nature, which explains its shelf-life of more than two months."

Tropicana spokesman Michael Torres would not address allegations of false advertising, but instead provided a written statement to ABC News.

"Our juice is safe, nutritious and Tropicana remains committed to offering great-tasting 100 percent orange juice with no added sugars or preservatives," Torres wrote. "We take the faith that consumers place in our products seriously and are committed to full compliance with labeling laws and regulations."

Tropicana holds about 40 percent of the market share of all orange juice sold each year and had worldwide retail sales of about $5 billion in 2010, according to the lawsuit.

On its website, Tropicana said each 59-ounce container of Pure Premium has "16 fresh-picked oranges squeezed into it."

"Angelina purchased Tropicana for her family based on the representation Tropicana made on its product label," Lewis' lawyer, Sarah N. Westcot, said. "I think they know people have a preference for natural products and capitalize on that. ... She wouldn't have bought the product if she knew what went in to making the juice."

Under California law involving class action suits, the litigants are seeking an aggregate of at least $5 million, she said.

Tropicana has 21 days to file their response.

The lawsuit comes on the heels of news that trace amounts of the fungicide carbendazim was recently found in some Minute Maid orange juice made by Coca Cola and juices of some of its competitors.

The juices in question were made of oranges imported from Brazil, where that fungicide is legal, and Coca Cola alerted the FDA of the trees had been sprayed with the chemical.

The FDA found no chemicals in Tropicana brands and the company has subsequently said it will use only Florida oranges going forward.

Copyright 2012 ABC News Radio

Penn State Still Paying Big Salaries to Dismissed Officials

Justin K. Aller/Getty Images(UNIVERSITY PARK, Pa.) -- Penn State University continues to pay lucrative salaries and foot the legal bills of five officials it fired, suspended or forced out of office over the school's sex abuse scandal, but refuses to make public what the former administrators are making.

The university's Board of Trustees, meeting Friday for only the second time since the scandal broke, has insisted that the financial arrangements with former school president Graham Spanier and legendary football coach Joe Paterno are confidential.

Spanier was forced to resign and Paterno was dismissed after a grand jury indicted former assistant coach Jerry Sandusky on charges of molesting boys over a 15 year period. The grand jury report suggested that school officials failed to act on witness accusations about Sandusky's alleged behavior.

Two other school officials, former vice president for finance Gary Shultz and former athletic director Tim Curley, were charged with perjury and failure to report sexual abuse of a child. Curly was put on administrative leave from the university and Shultz resigned.

Assistant coach Mike McQueary who witnessed the alleged sexual assault of a boy in a Penn State lockerroom, has been put on paid leave. He reported the incident to Paterno, but critics have questioned why he didn't intervene to stop the assault, waited a day to tell Paterno and never went to police.

Multiple board members and the board's attorney did not return calls for comment on this story.

Michael Boni, the attorney representing Victim 1 in the case against Sandusky, said Penn State's continued compensation and refusal to discuss it doesn't surprise him.

"Penn State appears to continue to seem to care more about its own than the victims, as demonstrated by this conduct," Boni said.

Spanier, who was the president of Penn State until he handed in his resignation the night the board met to fire Paterno, was paid $813,855 in 2009, the most recent record available. He remains employed by the university despite stepping down as president.

According to school spokeswoman Lisa Powers, Spanier is a tenured faculty member in the Department of Human Development and Family Studies, with the additional title of president emeritus.

Powers said that she could not comment on Spanier's current compensation because of a confidentiality agreement in his contract, despite his salary previously being made public on the school's website.

Paterno, who was fired as head coach by the Board of Trustees after Sandusky's arrest, also continues to be employed at the university, where his last publicized salary was more than $1 million, according to financial records and university statements.

Paterno is a tenured member of Penn State's faculty in the college of Health and Human Services, Powers said.

Powers said she couldn't release Paterno's current compensation because his "continued service" to the university has not yet been determined, and will be publicized once a retirement package is finalized.

According to the Pennsylvania State Employees' Retirement System, Paterno will receive more than half a million dollars per year in retirement, not including any separate arrangement worked out with the university.

Curley continues to receive the same compensation he was getting before he was charged criminally, in addition to his legal defense costs, including any civil suits that arise. His salary has never been made public and is excluded from a publicized list of the 25 top salaries at the university, meaning he makes less than $427,494 a year.

Shultz, the former vice president of business and finance, is no longer on the payroll, though he is part of the State Employee Retirement System, through which he makes $330,699 a year, and has a retirement agreement with the university, which Powers said is not public information.

Copyright 2012 ABC News Radio

Mixed Stocks to Close the Week on Wall Street

Hemera/Thinkstock(NEW YORK) -- Strong earnings reports pushed the Dow Higher Friday. The Dow surged just over 96 points. Meanwhile, the S&P remained nearly unchanged, and the Nasdaq lost about two points Friday.

The Dow's positive close was driven mainly by stronger than expected earnings reports from tech giants Microsoft and IBM. But Google missed its mark and the stock plunged eight percent, pulling down the Nasdaq. Still, all three indexes ended the week with gains of two percent or more.

Oil prices have slipped under the $100 a barrel mark after falling more than $2 on new concerns about Europe's financial problems that could hurt the global economy. The American Automobile Association (AAA) says the national average for gasoline remains unchanged this week at $3.38 a gallon -- 18 cents higher than a month ago and 27 cents more than a year ago.

Copyright 2012 ABC News Radio

Boehner Sees Election as Referendum on Obama?s Economic Policies

SAUL LOEB/AFP/Getty Images(WASHINGTON) -- Taking a break from the GOP’s annual issues conference in Baltimore on Friday, House Speaker John Boehner of Ohio predicted that the election this fall will be a referendum on the president’s economic policies and the divided Congress provides his Republican colleagues an opportunity to draw a stark distinction with Democrats in the next 10 months.

“President Obama’s policies have not helped our economy,” Boehner said. “As a matter of fact, his policies have made our economy worse. It’s pretty clear to the American people that these policies are not working and when you look at this election that’s coming up, it’s pretty clear it’s going to be a referendum on the president’s policies regarding our economy.”

To paint a clearer picture of what Republicans consider the failed policies of the White House, Boehner said he has asked all House Republicans to examine the effect of the administration’s policies in order to make sure Americans “understand the devastating impact of these policies on our economy.”

“When it comes to oversight, it’s pretty clear to me that there are a lot of members of Congress who really don’t have a good understanding of how our economy works,” Boehner said.

The speaker added that with “more extensive oversight focused on these policies, we’d be able to educate members of Congress on both sides of the aisle, which, frankly, would be the best path forward in order to get any of that changed.

“Maybe we can convince some of our colleagues across the aisle, maybe we can even convince the president of the United States that these policies are not only not helping, but they’re hurting the ability of small businesses to create jobs in our country,” Boehner said. “Our focus over the course of this year will be on the economy and on jobs and making sure that hard-working taxpayers have a real opportunity at a good job in our country.”

Copyright 2012 ABC News Radio

Plouffe Promises an Obama ?Blueprint? for the Middle Class

ABC News(WASHINGTON) -- President Obama’s State of the Union address Tuesday evening will include specific details on how to return jobs to the middle-class, David Plouffe, one of Obama’s top advisers, said Friday.

Plouffe told a gathering of mayors in Washington, D.C., that Obama would lay out plans on energy, manufacturing, education and other “reforms.”

He used words such as “concrete ideas” and “blueprint” to describe the portion of Obama’s speech that would zero in on the middle class. Obama would be “putting some flesh on the bones there,” he said.

“He’s working on it as we speak,” Plouffe added.

But Plouffe also asked his audience at the mayors’ conference to help the administration out. “Seriously, if you’ve got ideas, send them our way,” Plouffe said.

Plouffe’s message wasn’t political, and the former campaign manager repeatedly downplayed the presidential election that is dominating the headlines. He brushed aside a reporter afterward who asked about Thursday night’s Republican debate.

“The election is still 10 long months away,” he said in his speech.

Plouffe addressed a sprawling ballroom at the Capital Hilton Hotel, although it was only about half-full, with fewer than 100 people (mayors and their staffs) listening.

Copyright 2012 ABC News Radio

Business News - ABC News Radio Sun, 22 Jan 2012 20:43:13 +0000

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