Business Briefing

American accused of more lapses

Federal regulators are proposing more maintenance-related penalties against American Airlines.

The Federal Aviation Administration said it would fine American $787,500 for three cases of alleged maintenance problems.

In the most serious case, regulators say American operated a plane without replacing a central computer on the jet. In April 2008, pilots landing in Los Angeles noticed warning indicators going off and mechanics traced the problem to the computer, according to an FAA document. Instead of fixing the computer as required by federal rules, the mechanics wrote up the incident as a problem with the auto throttle and the plane flew 10 flights with a broken computer, the FAA said.

A spokesman said American was reviewing the FAA charges.

INTERNET

Scammers pose as FBI, says FBI

The cost of Internet fraud doubled in 2009 to about $560 million, the FBI said. The most common type of frauds reported were scams from people falsely claiming to be from the FBI.

Individual complaints of Internet scams grew more than 20% last year, according to a report issued by the FBI in partnership with a private fraud-fighting group, the Internet Crime Complaint Center.

The amounts taken by individual frauds ranged from less than $30 to more than $100,000, officials said.

PRIVACY

Netflix cancels rating contest

Netflix has canceled a sequel to a $1-million contest to improve its movie recommendations.

The DVD-by-mail-and-download service wants to avoid a legal showdown over the privacy rights of its subscribers. The retreat was triggered by a lawsuit alleging that Netflix violated a federal law prohibiting video rental firms from publicly sharing their customers’ movie preferences.

Netflix released millions of records on how its subscribers rated movies they watched in a 2006 contest aimed at improving its movie-recommendation system. No names were provided, but critics contend there was still enough information to identify subscribers.

DRUGS

Plavix label gets FDA black box

The Food and Drug Administration is adding its strongest warning to the label for Plavix, cautioning that some patients do not respond well to the blockbuster blood thinner.

The FDA said certain patients with a genetic variation cannot metabolize the drug, leaving them at increased risk for heart attack and stroke.

Patients can determine whether they are “poor metabolizers” by taking a genetic test. The FDA advises those patients to use other blood thinners.

The FDA added similar language to Plavix’s label in November, but the new warning appears within a black box, the FDA’s most severe safety labeling.

EQUITIES

New market for Verizon shares

Verizon Communications Inc. began listing its shares on the Nasdaq Global Select Market in addition to the New York Stock Exchange to attract more investors.

Verizon, which previously was listed only on the NYSE, has pulled out of other exchanges as part of an overhaul of the markets where shares are available.

-- times wire reports