Sunbeam Corp

Sunbeam Corp. said the executive who disclosed the small-appliance maker's deteriorating financial condition left the company last week. David Fannin, executive vice president and chief legal officer, warned Sunbeam's directors about the company's finances shortly before the board fired Chairman Al Dunlap in June. Fannin couldn't be reached for comment. A spokeswoman for the Delray Beach, Fla.-based company said Fannin's resignation was voluntary but declined to elaborate.

Accounting firm Andersen has agreed to pay $110 million to Sunbeam Corp. shareholders to settle a fraud lawsuit concerning its work for the struggling appliance maker. The settlement is the second-largest ever paid by an accounting firm in a securities lawsuit, said Robert Kornreich, an attorney for shareholders. Boca Raton, Fla.

Sunbeam Corp. fired its vice chairman and chief financial officer, Russell Kersh, a longtime aide to ousted Chairman Al Dunlap. The household appliance maker named Robert Gluck, vice president and controller, as acting chief financial officer. Kersh joined Sunbeam in July 1996, four days after Sunbeam hired Dunlap. He had worked with the turnaround expert at Scott Paper Co., where he was executive vice president for finance and administration.

Albert Dunlap, former chairman and chief executive of Sunbeam Corp., sued his ex-employer for allegedly dragging its feet in paying $500,000 in legal fees he and another executive have racked up defending themselves in securities fraud lawsuits. In a suit filed in Delaware Chancery Court in Wilmington, Del.

Sunbeam Corp. said it suffered an operating loss last year, rather than the turnaround touted by its ousted chief executive, downsizing specialist Al "Chainsaw Al" Dunlap. In restating its results, the maker of small household appliances blamed improper accounting practices during Dunlap's tenure. Last year's profit came at the expense of 1996 and the first quarter of 1998, which also were restated.

Sunbeam Corp. reported a loss for the third quarter in a row as retailers slashed orders to reduce inventories, but said its businesses are picking up and should gain momentum in 1999. The maker of small household appliances said it lost $99.9 million, or 99 cents a share, before a charge, contrasted with profit of $24.8 million, or 28 cents, a year ago. Analysts were expecting a loss of 13 cents. However, the Delray Beach, Fla.

Sunbeam Corp.'s exclusive marketing agreement with the American Medical Assn., which lets the company use the group's symbol on its products, is being reviewed by the association after it drew widespread criticism. Consumer and watchdog groups worry that the endorsement, unveiled last week, will detract from the AMA's reputation as an unbiased source of medical information. The nation's largest doctors organization will announce sometime this week its decision on the five-year agreement.

Sunbeam Corp. said it's creating a new division as it unveils a line of "smart" consumer appliances, such as an alarm clock that can turn off an electric blanket or turn on a coffee maker without wires or special programming. Separately, Maytag Corp., maker of washers, dryers and Hoover vacuums, said it's allying with software giant Microsoft Corp. to develop appliances that will talk to each other via computer.

Al Dunlap, fired last month as Sunbeam Corp. chairman after six months of losses, called his ouster unfair and said he's certain he would have turned the largest U.S. small-appliance maker around in 1999. Dunlap, 60, also said in a statement released Thursday that he has full confidence in the accuracy of financial statements issued during his two-year tenure.