Ashton Kutcher files for divorce from Demi Moore


LOS ANGELES (AP) — Ashton Kutcher filed court papers Friday to end his seven-year marriage to actress Demi Moore.


The actor's divorce petition cites irreconcilable differences and does not list a date that the couple separated. Moore announced last year that she was ending her marriage to the actor 15 years her junior, but she never filed a petition.


Kutcher's filing does not indicate that the couple has a prenuptial agreement. The filing states Kutcher signed the document Friday, hours before it was filed in Los Angeles Superior Court.


Kutcher and Moore married in September 2005 and until recently kept their relationship very public, communicating with each other and fans on the social networking site Twitter. After their breakup, Moore changed her name on the site from (at)mrskutcher to (at)justdemi.


Kutcher currently stars on CBS' "Two and a Half Men."


Messages sent to Kutcher's and Moore's publicists were not immediately returned Friday.


Moore, 50, and Kutcher, 34, created the DNA Foundation, also known as the Demi and Ashton Foundation, in 2010 to combat the organized sexual exploitation of girls around the globe. They later lent their support to the United Nations' efforts to fight human trafficking, a scourge the international organization estimates affects about 2.5 million people worldwide.


Moore was previously married to actor Bruce Willis for 13 years. They had three daughters together — Rumer, Scout and Tallulah Belle — before divorcing in 2000. Willis later married model-actress Emma Heming in an intimate 2009 ceremony at his home in Parrot Cay in the Turks and Caicos Islands that attended by their children, as well as Moore and Kutcher.


Kutcher has been dating former "That '70s Show" co-star Mila Kunis.


The divorce filing was first reported Friday by People magazine.


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Anthony McCartney can be reached at http://twitter.com/mccartneyAP.


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UPS drivers go digital with hand-held computers









When Keith Short began delivering packages for United Parcel Service Inc. 23 years ago, he used bulky pads of paper to track parcels and pens that froze in the cold. Today, he scans packages on and off his truck with a hand-held computer that tells him what to deliver where and when, and can even direct him turn by turn.


"The whole route is in here," Short said about his DIAD, or Delivery Information Acquisition Device.


The hand-held computers — now in the fifth generation — have made UPS drivers' jobs more efficient, especially during the peak holiday season, when the Atlanta shipping company picks up and drops off millions of packages each day.





The ideas for improving the technology percolate in the offices of UPS' Information Services Group in Timonium, Md. A team of 80 mathematicians and engineers makes forecasts about the shipping world of the future. Statisticians perform advanced math to figure future shipment demand, industrial engineers conduct time- and work-flow studies and software designers write the programs to apply what is learned.


It all ends up in the technology behind the routing and dispatching of packages handled by the brown delivery trucks.


"It's my job to set up a road map of where we need to be," said Jack Levis, an engineer and director of the group, "and look out 10 years."


Years ago, the group foresaw the growth of the Internet as a marketplace for buying and tracking goods that UPS would need to deliver, but few could have predicted exactly how e-commerce would reshape the shipping business.


The growth of online shopping has brought rising expectations. Consumers want free shipping incentives, shorter delivery times and more last-minute shipping options, such as same-day shipping, and even the same-day delivery that some retailers have begun promoting, experts say.


To offer same-day shipping, retailers have resorted to sending packages from their store inventory rather than from a warehouse, said Al Sambar, a retail strategist with consulting firm Kurt Salmon. Those promising same-day delivery might use couriers instead of conventional delivery services such as UPS or FedEx to get it there on time, he said.


"You really see the dates expanding much closer to the holiday than you would have seen in years past," Sambar said. "Many, many more retailers have added or expanded their ability to ship same day by creating the ability to ship from their own store inventory. [That way] they can ship even later into the season."


Anticipating what customers will want years down the road is part of the role of UPS' "package process management group" in Timonium.


At the core of what the group oversees is something called "package flow technologies," a data project started in 2000 and first used in 2003 that was aimed at more efficiently moving packages through hubs and loading them on trucks. Before 2003, workers who loaded delivery trucks had to memorize as many as 2,000 pieces of information and undergo six weeks of training to master the system.


The Timonium group turned the data behind the delivery operation into a computerized system that relies on "smart labels" that tell where packages go, while enabling UPS to customize deliveries.


"The old system worked fine," Lewis said, "but everyone had to have the knowledge of the operation in their heads. Before, we were training thousands of people where packages went. Now we just update a database, and we've made our models smarter and smarter."


Mirabella writes for the Baltimore Sun/McClatchy.





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A tortilla flap over whether Henry's Tacos folds









The first time Matthew Schwartz ditched junior high in the early 1980s, some upperclassmen smuggled him in the back seat of a car and drove to Henry's Tacos.


"We could have gone anywhere, but we went to Henry's," said Schwartz, 42, a Pasadena lawyer. "It was the place to go."


Schwartz has been coming to the taco stand in Studio City since he was a second-grader. Other than price inflation, the bare-bones menu has stayed the same for 51 years: ground beef tacos, refried bean and orange-cheese burritos, and "taco burgers."





"Is it authentic Mexican food? No. But it is a classic example of what I call gringo-Mex, in the most loving sense I could possibly mean that," he said.


To its fans, there is something quintessentially L.A. about Henry's Tacos, which was opened in 1961 by a white guy from Nebraska, had bit parts in movies and TV shows like "Adam 12" and boasted loyal customers ranging from working Joes to Hollywood celebrities.


So when the owner announced earlier this month that Henry's Tacos would close at the end of year, fans rose up in protest.


Suddenly, long lines started forming around the modest midcentury stand at the corner of Moorpark Street and Tujunga Avenue. Celebrities such as Aaron Paul and Elijah Wood showed up to buy tacos and lend their support. And a Web campaign has taken off, including Facebook groups like "Occupy Tujunga" and hundreds of Twitter posts with the hashtag #SaveHenrysTacos.


The battle focuses in part on whether Henry's is more than a taco stand — whether it's actually a piece of history worthy of official preservation. In a city that boomed after World War II, L.A. has debated giving historic status to a car wash and space-age Googie buildings. But for devotees of Henry's, it's less about the architecture than the lifestyle it conjures.


"Every place has different landmarks that help define it, and for the Valley its history is mid-20th century," said Adrian Scott Fine, director of advocacy for the Los Angeles Conservancy. "A place that was built in 1961 and is still there today says a lot because so much has changed in the Valley over the years and you have so few places that have stood the test of time."


Henry's Tacos is the latest food stand involved in a fight to win some level of historical status. In 2005, West Hollywood made national headlines when it named the Irv's Burger stand on Santa Monica Boulevard an official "cultural resource." Two years ago, preservationists in Hollywood lost a fight to keep the historic Molly's Burger stand on Vine Street going. For years, fans have hoped that the Tail O' the Pup, the famed hot-dog-shaped stand that used to be near the Beverly Center, would reopen (the stand is now in storage).


Henry's Tacos' impending closure is the result of year-long dispute that started when owner Janis Hood applied for a historical monument designation for the stand last year. Hood said her landlord increased her rent 50% and has refused to renew her lease since last December.


Hood believes the landlord, Beverly Hills businessman Mehran Ebrahimpour, was irked because a historical designation would put land-use restrictions on the property. Ebrahimpour could not be reached for comment through his lawyer.


L.A.'s Cultural Heritage Commission unanimously approved Henry's as a historical landmark last year, but the city's Planning and Land Use Management Committee postponed a vote on it earlier this year until Hood's lease was renewed.


Hood has lined up several prospective buyers, but all have been turned down by the landlord, she said.


The restaurant has always been a family business. Hood's grandfather, Henry Comstock — the stand's namesake — moved from Nebraska in the late 1950s and became interested in the concept of a roadside taco stand. He opened less than a year before Taco Bell was founded in Downey in 1962. Hood's mother later owned the restaurant for 47 years before she died in 2009. Hood then took over.


The support for Henry's has been overwhelming, she said. More than 5,600 people have signed an online petition to save the restaurant, and loyal patrons have posted video testimonials online.


"I knew I wasn't the only one who grew up with Henry's and loved it," said Hood, of Sherman Oaks. "Henry's is one of the very few places that is still around and hasn't changed. Someone said it's like eating a memory."


Last Sunday, the stars came out in support.


Wood and Paul were among hundreds of hungry customers who braved the rain and stood in a line that snaked around the block. Wood told paparazzi that the soft-shell beef tacos are his favorite, and he later posed with Hood in front of the restaurant.


Comedian George Lopez paid for everyone's food for an hour — ringing up a $945 tab, Hood said.


Food stands like Henry's Tacos began popping up around Los Angeles in the 1940s and became popular quick-lunch destinations in a city with a mild climate. Many have closed in this era of the drive-through, but Fine said it's no surprise residents cherish those that remain.


"Communities care about their locally owned Main Street businesses. People have a connection to it because it's local," he said.


Schwartz made his pilgrimage back to Henry's on Tuesday and waited in line with more than 20 people doing the same.


The stream of memories kept coming. In fifth grade, his friends would eat at Henry's and dare one another to drink hot sauce straight out of the cup — a childhood rite of passage.


"After you drank one, it would be how many can you do?" he said. "Henry's is an icon of the community, and it would really be a shame for it to go."


ben.poston@latimes.com





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Twitter post offers clue to The Civil Wars' future


NASHVILLE, Tenn. (AP) — While there still remain questions about the future of The Civil Wars, there's new music on the way.


Joy Williams, one half of the Grammy Award-winning duo with John Paul White, said Thursday during a Twitter chat that she was in the studio listening to new Civil Wars songs.


It's a tantalizing clue to the future of the group, which appeared in doubt when a European tour unraveled last month due to "irreconcilable differences."


At the time, the duo said it hoped to release an album in 2013. It's not clear if Williams was referring Thursday to music for a new album or for a documentary score they have composed with T Bone Burnett. They're also set to release an "Unplugged" session on iTunes on Jan. 15.


Nate Yetton, the group's manager and Williams' husband, had no comment — though he has supplied a few hints of his own by posting pictures of recording sessions on his Instagram account recently. The duo announced last summer it would be working with Charlie Peacock, who produced its gold-selling debut "Barton Hollow." The photos do not show Williams or White, but one includes violin player Odessa Rose.


Rose says in an Instagram post: "Playing on the new Civil Wars record... Beautiful sounds."


Even with its future in doubt, the duo continues to gather accolades. Williams and White are up for a Golden Globe on Jan. 13, and two Grammy Awards on Feb. 10, for their "The Hunger Games" soundtrack collaboration "Safe & Sound" with Taylor Swift.


Williams' comments came during an installment of an artist interview series with Alison Sudol of A Fine Frenzy sponsored by The Recording Academy.


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Online:


http://thecivilwars.com


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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Op-Ed Contributor: Labs, Washed Away





BEDPAN ALLEY is the affectionate name given to a stretch of First Avenue in Manhattan that is packed with more hospitals than many cities possess. This stretch also happened to be right in the flood zone during Hurricane Sandy. Water damage and power failures closed down all three of the New York University teaching hospitals — Bellevue Hospital, Tisch Hospital and the Manhattan V.A. Two months later, they are still not admitting patients, though two are on schedule to begin doing so shortly.




The harrowing evacuation of hundreds of patients made headlines nationwide. The disruption of regular medical care for tens of thousands of outpatients was a clinical nightmare that is finally easing. And the education of hundreds of medical students and residents is being patched back together.


All academic medical centers, however, rest on a tripod — patient care, education and research. The effect of the hurricane on the third leg of that tripod — research — has gotten the least attention, partly because rescuing cell cultures just isn’t as dramatic as carrying an I.C.U. patient on a ventilator down flights of stairs in the dark.


But, of course, there is an incontrovertible link between those cell cultures and that patient. For every medication that a patient takes, someone researched the basic chemistry of the drug, someone designed the clinical trial to test its efficacy, and of course a volunteer stepped forward to be the first to take the pill. Scientific research has engineered the impressive advancements of medical treatment, and every patient is a beneficiary.


When the hospitals were hit by Hurricane Sandy, hundreds of experiments were obliterated by the loss of power. Precious biological samples carefully frozen over years were destroyed. Temperature-sensitive reagents and equipment were ruined. Medications and records for patients in clinical trials were rendered inaccessible. And sadly, many laboratory mice and rats perished (though 600 cages of animals were rescued during the night by staff members who used crowbars on inaccessible doors and carried the cages out through holes cut in the ceiling).


On a slushy, rainy day earlier this month, I sat in on a meeting of N.Y.U.’s research community. Hundreds of scientists packed the chilly lecture hall to discuss what the future might hold. It was clear that the damage to laboratories and samples would not be amenable to easy repair. Some 400 researchers were being relocated to a patchwork of temporary sites so that they could restart their work.


But scientists can’t just walk in to a new space with a lab coat and a notebook; they need centrifuges, deep-freezes, lab animals, electron microscopes, incubators, autoclaves, gamma counters, PET scanners. They come with graduate students, lab techs, post-docs and collaborating investigators. For clinical researchers, there are also the patients enrolled in their clinical trials, with their medications and voluminous records.


Even beyond their eagerness to get back to work, researchers felt a sense of loss, not just in time, money, momentum, samples and grants, but of a part of their lives. Some senior scientists lost decades of archived samples. Others lost irreplaceable mice with genetic mutations for studying how coronary plaques resolve, the role of inflammation in lymphoma and the development of neural networks. At the other end of the spectrum were post-docs whose nascent careers were suddenly up in the air. Some were in tears.


Walking down First Avenue after the meeting, I passed a young researcher pushing a cart laden with cages, transporting lab rats to their new home. There was a blanket over the cages to protect them from the rain, but it kept slipping. She slogged up the wet avenue, one hand pushing the cart, the other struggling to keep the cover over her charges.


The logistical efforts to relocate and reignite such a vast research enterprise are staggeringly complicated. But the administration has cataloged each person’s research needs to match them with available space elsewhere, and hundreds of researchers have successfully rekindled their investigations despite the prodigious challenges.


Bellevue and Tisch are returning to their clinical operations and will be able to admit patients shortly. But even after the hospital wards and clinics are bustling at full capacity, the ribbon won’t feel ready to snip until the researchers are restored to their homes as well. For many patients, the thrum of research within a medical center is invisible. But it is an integral — and very human — part of a hospital. When a hurricane disrupts research, it is a loss that resonates well beyond the laboratories.


Danielle Ofri, an associate professor at New York University School of Medicine, is the editor of the Bellevue Literary Review and the author, most recently, of “Medicine in Translation: Journeys With My Patients.”



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Bernard Madoff's brother is sentenced to 10 years in prison









NEW YORK — The brother of imprisoned financier Bernard Madoff was sentenced to 10 years in prison for crimes committed in the shadow of his notorious sibling by a judge who said she disbelieved his claims that he did not know about the epic fraud.


Peter Madoff, 67, agreed to serve the maximum sentence allowable to the charges of conspiracy and falsifying the books and records of an investment advisor that he pleaded guilty to in June.


U.S. District Judge Laura Taylor Swain urged him to tell the truth even after he reports to prison Feb. 6 about what he knows about the multi-decade fraud that cost thousands of investors their original $20 billion investment.





The judge said Peter Madoff was "frankly not believable" when he said at his plea that he learned about the fraud only when his brother revealed it to him just before he surrendered to authorities.


Peter Madoff spoke only briefly Thursday before he was sentenced, saying: "I am deeply ashamed of my conduct and have tried to atone by pleading guilty and have agreed to forfeit all of my present and future assets."


He added: "I am profoundly sorry that my failures let many people down, including my loved ones."


Two investors spoke during the proceeding, which ended in less than an hour.


Investor Michael T. De Vita, 62, also demanded that the truth be forced out.


"I believe it to be physically impossible for a single person to carry out such a gargantuan task all by himself," he said.


De Vita said investors "have waited four years for others to accept responsibility for this massive crime. We are still waiting for that today."


"All of this was preventable if only one person was willing to do the right thing and stop this in its tracks years ago. Peter Madoff could have been that person," he said.


The sentencing comes four years and a week after Bernard Madoff first revealed the fraud, which occurred over several decades as the former Nasdaq chairman built a reputation for delivering unparalleled investment results, even in bad times. The revelation came only days after the business sent out statements that made investors think their investments had grown to a total of more than $65 billion.


Peter Madoff said at his plea that he had no idea his brother was running a massive Ponzi scheme, paying off longtime investors at times with money from newer investors.


"My family was torn apart as a result of my brother's atrocious conduct," he said. "I was reviled by strangers as well as friends who assumed that I knew about the Ponzi scheme."


But he conceded that he followed his brother's instructions and helped him decide which favored friends, clients and family members would receive the $300 million that remained in the company's accounts. The checks were never sent.


Peter Madoff, who joined his brother's firm after graduating from Fordham Law School in 1970, has been free on $5-million bail after he agreed to surrender all his assets.


Before the sentencing, his lawyer, John Wing, said in a memorandum that Peter Madoff will "almost certainly live out his remaining days as a jobless pariah, in or out of prison." He called him a victim of his loyalty to his brother, saying he had been mistreated by the sibling who was eight years older and was viewed as "the prince" by his mother.


As part of a forfeiture agreement, Madoff's wife, Marion, and daughter Shana must forfeit nearly all of their assets. The government said those assets and assets that will be forfeited by other family members include several homes, a Ferrari and more than $10 million in cash and securities. It said his wife will be left with $771,733. Besides the Madoff brothers, no other family members have been arrested.





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Robert H. Bork, pivotal figure in Supreme Court history, dies at 85









Robert H. Bork, the conservative legal champion whose bitter defeat for a Supreme Court seat in 1987 politicized the confirmation process and changed the court's direction for decades, died Wednesday. He was 85.


The former Yale law professor and judge on the U.S. Court of Appeals for the District of Columbia Circuit died at Virginia Hospital Center in Arlington, Va., from complications of heart disease, said his son Robert H. Bork Jr.


A revered figure on the right, Bork inspired a generation of conservatives with his critiques of the liberal-dominated high court in the 1960s and '70s. In speeches, law reviews and op-ed articles, Bork argued that the liberal justices were abusing their power and remaking American life by ending prayers in public schools, extending new rights to criminals, ordering cross-town busing for desegregation and striking down laws on birth control, abortion and the death penalty. Bork said the Constitution, as originally written, left these matters to the wishes of the majority.





Bork was more than a legal theorist. He was also a highly regarded constitutional lawyer. When he served as U.S. solicitor general under Presidents Nixon and Ford, the Supreme Court justices praised Bork as one of the finest advocates they had ever seen.


As solicitor general, he served as a footnote to the Watergate scandal that brought down Nixon. In what became known as "the Saturday Night Massacre," the embattled chief executive ordered the firing of special prosecutor Archibald Cox because he had demanded Nixon's secret White House tapes. The attorney general and then the deputy attorney general resigned rather than carry out the order. Bork, who was then in the No. 3 post as solicitor general, carried out the order and fired Cox.


When Ronald Reagan was elected president in 1980, Bork's name rose to the top of the list of potential court nominees. Reagan aspired to transform the Supreme Court, and Bork, then teaching law at Yale, was offered a seat on the Court of Appeals in Washington. It was seen as a stepping stone to the high court.


But it turned into a long wait for Bork.


Reagan chose Sandra Day O'Connor in 1981, fulfilling a campaign promise to appoint the first woman to the Supreme Court. A fateful moment came in 1986 when a second seat became vacant. Reagan and his advisors passed over Bork for his younger colleague, then-Judge Antonin Scalia, who won a unanimous confirmation in a Senate still under Republican control.


Bork's time finally came in the summer of 1987 when Justice Lewis Powell, the swing vote on the closely divided court, announced his retirement. By then, however, the Democrats had taken control of the Senate, and Reagan had been weakened by the Iran-Contra scandal.


On July 1, 1987, Reagan introduced the burly, bearded Judge Bork as his nominee, but within an hour the president's words were drowned out by a fierce attack from Capitol Hill led by Sen. Edward M. Kennedy (D-Mass.).


"Robert Bork's America is a land in which women would be forced into back-alley abortions, blacks would sit at segregated lunch counters, [and] rogue police could break down citizens' doors in midnight raids," Kennedy said. No one could remember such a harsh assault on a president's court nominee, and it set the tone for a campaign-style attack that lasted into the fall.


Bork gave the Democrats plenty of ammunition, however.


As a Yale professor in 1963, he had condemned the pending civil rights bill that would have given blacks an equal right to be served in hotels, restaurants and other public places across the nation. He called this a threat to individual freedom, and he advised Arizona Sen. Barry Goldwater, the Republican presidential nominee, to cast a "no" vote against what became the Civil Rights Act of 1964. Bork wrote critically of the Voting Rights Act and various school desegregation measures. He also denounced the court's "right to privacy" rulings that led to the Roe vs. Wade decision guaranteeing a woman's right to have an abortion.


When Bork made his case before the Senate Judiciary Committee, he faced a hostile majority of Democrats, including its new chairman, Sen. Joseph Biden of Delaware. Because of his long "paper trail," Bork had no choice but to try to explain his views. He did so, at length, but he did not win over many converts. And viewers watching on television told pollsters they saw the stiff, scowling judge as an intimidating figure. Bork helped his opponents paint a portrait of him as a nominee who was more attuned to legal theory than to doing justice. When asked why he wanted to serve on the nation's highest court, Bork told one senator the job would be "an intellectual feast."


When the hearings ended, the Reagan White House knew Bork could not be confirmed. But the judge refused to withdraw, and the Senate rejected his nomination on a 58-42 vote.


Conservatives were furious, insisting that partisan attacks had maligned the reputation of one of the most accomplished jurists to come before the Senate. The phrase "to bork" became shorthand for inflicting a harsh, unfair public attack. Liberals and Democrats countered that Bork went down to defeat because most Americans did not share his views.


But no one disputed that the Bork battle changed how presidents choose nominees and how the Senate debates them. In the wake of Bork's defeat, presidential legal advisors looked for judicial nominees who had said or written little on the major legal controversies. In 1990, for example, President George H.W. Bush chose a little-known New Hampshire judge for the Supreme Court because his views were unknown. Justice David H. Souter easily won confirmation, but then surprised his Republican backers when he became a reliable liberal on the court.


Court nominees after Bork refused to follow his tack of seeking to explain his views in answer to questions from senators, instead choosing to duck them. Bork's defeat also had a profound and lasting impact on the Supreme Court itself. Had Bork won confirmation, the court's conservative bloc, led by Chief Justice William H. Rehnquist, would have had a majority to overturn Roe vs. Wade as well as the strict ban on school-sponsored prayers and invocations. Instead, Justice Anthony M. Kennedy, the Reagan nominee who eventually filled Powell's seat, cast a deciding vote in 1992 to preserve the right to abortion and the ban on school prayers. Kennedy has also been a strong foe of laws that discriminate against gays and lesbians, and he is seen as holding the decisive vote in the upcoming cases involving same-sex marriage.


Bork's influence on conservative legal thought was also lasting. In the 1970s, he was among the first to argue for interpreting the Constitution based on its "original intent," an idea that was later championed by Scalia and Justice Clarence Thomas.


As a scholar of antitrust law, Bork helped fundamentally change the thinking behind the law. He criticized those who targeted "big" businesses as monopolies and said antitrust law should focus instead on the welfare of consumers. At Yale, students joked that Bork taught "pro-trust," not antitrust. But his views are now widely accepted.


Bork stepped down from the bench a year after his Senate defeat, and he wrote several books renewing his criticism of liberalism. In the last year, he served as a chairman of Republican presidential nominee Mitt Romney's advisory committee on the judiciary and the courts.


Scalia praised Bork as "one of the most influential legal scholars of the past 50 years. His impact on legal thinking in the fields of antitrust and constitutional law was profound and lasting. More important for the final accounting, he was a good man and a loyal citizen."


Bork was born in Pittsburgh on March 1, 1927, and served in the Marines. He graduated from the University of Chicago and its law school and worked as a lawyer in New York and Chicago before joining the Yale faculty in 1962.


His first wife, Claire Davidson, died in 1980. He married Mary Ellen Bork, a former nun, in 1982. She survives him, along with three children from his first marriage, sons Robert and Charles Bork and daughter Ellen Bork, and two grandchildren.


david.savage@latimes.com





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Claire Danes and Hugh Dancy welcome a baby boy


NEW YORK (AP) — Claire Danes and Hugh Dancy's "Homeland" just got bigger.


Danes' rep confirms the couple welcomed a baby boy named Cyrus Michael Christopher.


People.com first reported Monday's birth.


It's the first child for 33-year old Danes and 37-year-old Dancy. They were married in 2009.


There's no word yet whether the new mom will attend the Golden Globe Awards on Jan. 13. She's nominated for Best Performance by an Actress in a Television Series for her work on Showtime's "Homeland."


Up next, Dancy stars in NBC's "Hannibal," an adaptation of Thomas Harris' novel "Red Dragon."


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Amgen Workers Helped U.S. in Aranesp Marketing Inquiry





“I hope no one is taping this,” the Amgen manager remarked at a company sales meeting in 2005.




The manager then boasted of how she had given a $10,000 unrestricted grant to a pet project of a doctor who was an adviser to the local Medicare contractor. In turn, she said, the doctor would help persuade the contractor to provide reimbursement for an unapproved use of Amgen’s anemia drug, Aranesp.


Someone, it turned out, was taping it. Jill Osiecki, a longtime sales representative at Amgen, was wearing a recording device under her clothes, transmitting the proceedings to agents of the Department of Health and Human Services.


The result of Ms. Osiecki’s undercover work, and information provided by other whistle-blowers, led to Amgen’s agreement this week to pay $762 million to settle federal investigations regarding the marketing of some of its top-selling drugs.


Judge Sterling Johnson Jr. of Federal District Court in Brooklyn accepted the settlement on Wednesday, clearing the way for 10 whistle-blower lawsuits to be unsealed.


Amgen, the world’s largest biotechnology company, will pay $150 million in criminal penalties after pleading guilty to one misdemeanor count of marketing Aranesp for unapproved uses and in unapproved doses.


The rest of the money — $612 million — will go to settle civil false claims lawsuits filed by the federal government, states and whistle-blowers. These contain accusations that go well beyond the off-label marketing of Aranesp.


They include off-label marketing of other drugs like Enbrel for psoriasis and Neulasta, which increases the levels of white blood cells. Amgen is also accused of offering kickbacks to doctors and clinics to induce them to use its drugs. These reportedly came as cash, rebates, free samples, educational and research grants, dinners and travel, and other inducements. The government also accused the company of knowingly misreporting the prices of some of its drugs.


Except for those in the criminal count, Amgen denied the other accusations, though it did issue a statement on Wednesday acknowledging the settlement.


“The government raised important concerns in the criminal prosecution,” Cynthia M. Patton, chief compliance officer at Amgen, said in the statement. “Amgen acknowledges that mistakes were made, and we did not live up to our standards.”


Ms. Osiecki, 52, was one of the main whistle-blowers and will be entitled to a share of the settlement. The amount each whistle-blower will receive has not been determined or is being kept confidential, their lawyers said.


Ms. Osiecki worked as a sales representative for Merck for nine years before joining Amgen in 1990, soon after the biotechnology company won regulatory approval for its first product. The company, based outside Los Angeles, had “good science, good products, strong ethics,” Ms. Osiecki said in an interview.


But, she said, the corporate culture changed starting around 2000. That was when new management came in and Aranesp was approved, setting up a fierce marketing battle with Johnson & Johnson and its rival anemia drug, Procrit.


“It was more important to make your numbers than to follow the rules,” said Ms. Osiecki, who was based in Milwaukee and sold Aranesp.


In August 2004, with her concerns mounting, Ms. Osiecki called the Office of Inspector General of the Department of Health and Human Services and left a message. Within days, she was called back, and she went to see an agent, who persuaded her to secretly record meetings. She did that 13 times over about 15 months, mainly sales meetings.


Aranesp is used mainly in a hospital, clinic or physician’s office. It is bought by the medical practice, which can make a profit if the patient and insurers pay more for the use of the drug than the practice paid.


Ms. Osiecki said Amgen “marketed the spread,” trying to make it more profitable for doctors to use Aranesp rather than Procrit.


Such financial inducements could also spur greater overall use of a drug and can violate anti-kickback laws, said Ms. Osiecki’s lawyer, Brian P. Kenney of Kenney & McCafferty in Blue Bell, Pa.


Ms. Osiecki said the first sales meeting at which she wore the recording device, wrapped around her midriff under baggy clothes, was in October 2004 in a Milwaukee hotel. She could look down from the meeting room and see the car parked across the street containing the agent with the receiving device. She said she was not particularly nervous.


The speaker was a pharmacist from an oncology practice going through the numbers on how his practice could make a million dollars more a year using Aranesp rather than Procrit.


Ms. Osiecki said Amgen was careful to cover up such marketing. Spreadsheets showing doctors how much more money they could make using Aranesp were “homemade bread,” meaning they were created by each sales representative, not by the company. And representatives were told not to leave the presentations behind after showing them to doctors.


Her 107-page complaint, filed in late 2004, contains many other accusations.


Other whistle-blowers made other accusations. Kassie Westmoreland, a former sales representative, said Amgen overfilled vials of Aranesp, essentially providing free drugs to doctors. They could then bill Medicare or private insurers for the use of that drug, making an extra profit.


“Amgen was offering a kickback in the form of extra product subsidized by the taxpayers,” said Robert M. Thomas Jr., one of Ms. Westmoreland’s lawyers.


Elena Ferrante and Marc Engelman, both former sales representatives, contended that Amgen promoted Enbrel’s off-label use for mild psoriasis when the drug was approved only for moderate or severe cases of the disease.


Lydia Cotz, one of their lawyers, said the two refused to go along with the off-label marketing. They are now pursuing wrongful termination claims against Amgen in arbitration proceedings that Amgen requires be kept confidential, she said.


“It’s been a very long heroic journey for my clients,” she said.


Ms. Osiecki is now also a former Amgen sales representative. She said that she was fired in December 2005 after she let slip that she had retained a company voice mail message that she thought provided evidence of illegal activity. Leaving the pharmaceutical industry, she moved to Amelia Island, Fla. She now works for a small business.


Mosi Secret and Barry Meier contributed reporting.



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FTC unveils broader rules to protect kids' privacy online

Columnist David Lazarus talks with Mark Blafkin, spokesman for the Assn. of Competitive Technology, an organization of app developers, and Alan Simpson of Common Sense Media, an advocacy group for parents.









SAN FRANCISCO — In a major step to protect kids' online privacy, the Federal Trade Commission has unveiled new rules that require mobile apps and websites to obtain parental consent before collecting personal information from children.


The agency's chairman, Jon Leibowitz, said Wednesday that federal regulators were trying to keep pace with the growing use of mobile devices by those under age 13 — and the rapidly evolving tactics and tracking tools of marketers and data brokers that collect detailed dossiers on Americans and their online activities.


The new rules — the first major update to federal laws on children's online privacy in 14 years — require a parent's consent to collect those kinds of personal details that can be used to identify, locate or contact a child and pass that information on to third parties.








The FTC struck a balance between shielding kids from potential harm and ensuring that the marketplace for kids' mobile apps and online services would continue to flourish, Leibowitz said during a Capitol Hill news conference.


Under the broader rules, the FTC said companies must get permission from parents before collecting photographs and videos as well as deploying tracking tools, such as cookies, which use IP addresses and mobile device IDs to follow a child on the Web.


Quiz: What set the Internet on fire in 2012?


The move comes one week after the agency said it was investigating mobile app developers who might have gathered information from kids without their parents' consent. The agency did not name the companies or say how many it was investigating.


"We are at a critical moment in the growth of the children's digital marketplace as social networks, mobile phones and gaming platforms become an increasingly powerful presence in the lives of young people," said Kathryn Montgomery, a children's advocate and a professor of communications at American University. "The new rules should help ensure that companies targeting children throughout the rapidly expanding digital media landscape will be required to engage in fair marketing and data collection practices."


Federal regulators had not significantly updated online privacy rules for kids since 1998 when the Children's Online Privacy Protection Act was enacted. That law required online services geared toward kids to notify parents and get their permission before collecting or sharing basic personal information such as names, email addresses or home addresses from those under 13.


The law did not envision today's Internet in which the rapid adoption of mobile devices loaded with apps can relay a person's location and other personal details highly prized by advertisers and data brokers. The FTC began a review of the law in 2010.


James Steyer, chief executive of Common Sense Media Inc., a nonprofit group in San Francisco that studies kids' use of technology, said the new rules put parents — not corporations — back in charge as gatekeepers for kids.


"All of the companies and developers in the online and mobile space benefit from the share and use of personal information. But they also have a responsibility for providing parents with information and tools so they can make smart choices about what their young children do and share online, and so far, most of these companies have failed to live up to that responsibility," Steyer said.


But software developers — many of whom are parents themselves — said the FTC is giving their industry, which makes products including educational tools and games for kids, a bad rap.


"It's a little alarming that the FTC has chosen to paint all children's apps with the same brush," said Rick Richter, CEO of Ruckus Media Group Inc. "What this is all about is notifying parents about information we are gathering. We have been fastidious as a company about doing that."


Some app developers warned that the cost of complying with the new regulations would force many of them to stop building apps for kids.


Liability for violating the rules does not extend to Google, Apple and other technology giants that operate online stores that sell kids' apps.


The Application Developers Alliance said the kids' software industry is mostly made up of entrepreneurs who can't afford lawyers to help them navigate the complex new rules governing kids' privacy.


"Ultimately it's the kids, parents and teachers who will suffer," said Tim Sparapani, vice president of law policy and government relations at the alliance.


Josh Hartwell, who runs Mobile Deluxe, a mobile game developer and publisher in Santa Monica, has three kids and a fourth on the way. He said he and many other app developers agree that protecting children's privacy is "paramount" and supports weeding out "bad actors." But he worries that the burdensome new rules will stifle innovation.


"Some of the compliance issues are going to make it tougher for people to create apps for kids," Hartwell said.


But Samantha Lurey, CEO of Go Trexx in Mission Viejo, which makes travel apps for kids, applauded the effort to increase privacy protections for children.


"This is something our firm has wanted to see for a while now. We feel that federal regulators are going in the right direction," Lurey said. "Because our apps are designed for kids, we felt it was really important that we were not capturing any sensitive information. I think other developers will find that it's relatively easy to construct apps that are engaging, entertaining and useful without capturing sensitive information."


jessica.guynn@latimes.com





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