Business Briefing

Nicholas asks judge to dismiss suit

Former Broadcom Corp. Chief Executive Henry T. Nicholas III sought dismissal of a lawsuit brought by the Securities and Exchange Commission accusing him of participating in a scheme to backdate stock options.

The allegations fail to state a claim, are too vague or are too late, lawyers for Nicholas said in a request filed in Santa Ana.

The SEC seeks penalties rather than court orders prohibiting Nicholas from engaging in specific activities, which means there is a five-year limit for enforcement actions, according to the request. Almost all the alleged violations occurred before Nov. 12, 2002, Nicholas’ lawyers said in court documents.

Bill would change FAA procedures

A bipartisan group of lawmakers introduced a bill aimed at ending what they deemed to be the Federal Aviation Administration’s sometimes cozy relationship with the airline industry and reversing purported complacency on safety oversight.

The House bill would create an independent office within the FAA that would investigate safety complaints, halt the practice of allowing airlines to choose which FAA inspectors would inspect their operations and set a two-year cooling-off period before FAA inspectors could go to work for an airline.

Airlines are “not customers,” Rep. James L. Oberstar (D-Minn.) said.

American to cut 200 pilot jobs

American Airlines is cutting 200 pilot jobs as it sheds 8% of its workforce to cope with higher costs for jet fuel.

American, the nation’s largest airline, gave its pilots union a plan that includes incentives for senior pilots to leave voluntarily.

A spokesman for the Allied Pilots Assn. said the union needed time to review the proposal.

IBM to create 1,000 jobs in N.Y.

IBM Corp. agreed to invest $1.5 billion for computer-chip manufacturing and research in New York state, creating 1,000 jobs aided by $140 million in government subsidies.

The agreement, announced by company executives and state officials, also calls for IBM to retain more than 1,000 existing jobs at its East Fishkill research and manufacturing facilities, which are to be upgraded.

Tennessee to get Volkswagen site

Volkswagen has picked Chattanooga, Tenn., over sites in two other states for its new U.S. auto plant.

Sites in Alabama and Michigan were also considered for the plant, which is part of Volkwagen’s strategy to increase its presence in the U.S.

Volkswagen closed its last U.S. production facility in 1988.

MillerCoors picks Chicago as base

MillerCoors executives say the headquarters for their new joint venture will be in Chicago.

The company chose not to settle in Milwaukee, where Miller Brewing Co. is based, or in Golden, Colo., the home of Molson Coors Brewing Co.

MillerCoors said early on that it wanted to settle in a neutral site, but executives pledged to maintain a strong presence in each hometown.

The company said it would invest $50 million in the Milwaukee brewery to increase production and pour $100 million into the Golden plant to reconfigure operations.

From Times Wire Services