Rogers & Wells Ready to Settle?
Speculation is abounding that the Rogers & Wells law firm, which represented J. David & Co., is negotiating a settlement of the lawsuits filed against it by investors in the fallen La Jolla investment firm.
Investors have sued for damages of more than $122 million, but the New York-based law firm, headed by former U.S. Secretary of State William Rogers, has insurance to cover only about $80 million in claims.
Sources close to the J. David case speculate that a settlement could reach $40 million. Parties on both sides of the lawsuits are mum on the topic.
For those keeping track, J. David & Co. was forced into involuntary bankruptcy by a group of disgruntled investors two years ago Thursday.
Spanos Rumor Was Out of Bounds
Yes, there is a deal shaping up to buy the posh Radisson Hotel in Mission Valley, now in Chapter 11 reorganization bankruptcy.
But, no, San Diego Chargers’ owner Alex Spanos probably will not be one of the investors in the group that might offer as much as $32 million for the 13-story, 264-room hotel.
Spanos’ name was bandied about among hotel industry sources as one of the would-be buyers. However, it turns out that a proposal was made only to a Spanos Construction Co. manager, and not to Spanos or his son, Dean, who manages his father’s company in San Diego.
“We are not interested” in buying the Radisson, Dean Spanos said last week. “It’s not our (type of) business--we build apartments and office buildings. We aren’t in the hotel or motel business.”
The investor group reportedly includes at least one well-known entertainment industry figure, according to several hotel industry sources.
Oak’s Insurance Held to Be Valid
Without much fanfare, U.S. District Judge Earl Gilliam ruled last week that Oak Industries’ insurance policy covering officers and directors is valid and in force, and that the insurance company has no grounds to rescind the policy.
Gilliam’s ruling seems to pave the way for a settlement of the class-action suit filed by shareholders against former officers and directors of the financially ailing Rancho Bernardo-based manufacturer of media and cable TV equipment.
The insurance company had argued that it had been defrauded into issuing the policy, so the policy should be declared invalid.
An earlier class-action suit against the company itself--filed on behalf of shareholders by attorney Bill Lerach--was settled for $13.25 million in October.
The company faces yet another lawsuit, filed on behalf of former general counsel Carl J. Bradshaw. That suit alleges wrongful termination, fraud and violation of the Racketeer Influenced and Corrupt Practices Act (RICO). One intriguing aspect of the suit is that Bradshaw was named a defendant in Lerach’s lawsuit.
Light From New Fires
William McElroy, the former UC San Diego chancellor, has seen his share of stressful business dealings, serving on the boards of San Diego Gas & Electric, Sun Savings and the now-departed Kratos.
But McElroy will impart his knowledge on a very different matter when he addresses the San Diego Chamber of Commerce’s North City Forum on Feb. 26.
McElroy’s topic: His biomolecular engineering research on fireflies and how it has led to medical discoveries and a profitable business.
Publication Is Out to Make News
The nearly 5-year-old Business News biweekly has been sold, and its new owner plans expansion, a major face lift and a new, aggressive style of covering business.
“Business news is exciting and has a life force of its own,” said new publisher Alan Lipscomb, who purchased the 12-page tabloid from veteran advertising man Hal Betancourt last month. The purchase price wasn’t disclosed.
“This is an era of corporate takeovers, mergers--even things like ‘Dallas’ and ‘Dynasty’ on television. . . . People have learned that business is exciting. We want to show that to San Diego.”
To date, the publication has featured mostly verbatim press releases from companies and several people-oriented columns by free-lance writers.
Lipscomb said he will revamp the format to look “more like Advertising Age” magazine, and will increase the 10,000 circulation to 15,000 by month’s end, with a goal of 25,000 by the end of the year.
“We want to make news while reporting news,” he said. “What’s happening in business is under-reported.”
He criticized daily newspaper coverage of business for its lack of in-depth stories. “We can look at things deeper because we’re not on as crucial a schedule,” he said.
