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* Aetna Inc. said that a federal court has dismissed claims of fraud and other allegations against its U.S. Healthcare unit, the largest U.S. managed-care company with about 29 million members. The suit, brought by Coram Healthcare Corp., involved Coram’s agreement to provide home health-care services to Aetna U.S. Healthcare members, Aetna said. A spokesperson for Coram was not available for comment. In a ruling in U.S. District Court in Pennsylvania, Judge Harvey Bartle dismissed all of Coram’s claims except its breach-of-contract claim, Aetna said. (Reuters)

* Restoration Hardware Inc. reported a larger-than-expected loss of $1.7 million, or 10 cents a share, for its third quarter as lowered inventory levels in the early fall hampered its ability to meet consumer demand. The Corte Madera-based home furnishings retailer had a profit of $13,000, or 0 cents per share, a year ago. Analysts were expecting a 7-cent loss. Sales grew 31% to $64.8 million, but sales at stores open at least a year edged down 0.2%. The results were announced after the markets closed. Restoration Hardware shares rose 25 cents to close at $7.25 on Nasdaq.

* Ross Stores Inc.’s profit rose 27% in its fiscal third quarter to $34.6 million, or 38 cents, a penny higher than analyst forecasts, as administrative expenses declined and revenue rose 15% to $608.7 million. Same-store sales grew 7%.

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