Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 20, 1993 TAG: 9302200172
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
IN BUSINESS
Md. grand jury probes Eli LillyINDIANAPOLIS - Eli Lilly and Co. said Friday it is the target of a federal grand jury investigation into its compliance with government rules covering the company's drug manufacturing operations.
The inquiry centers on an agreement Lilly made in 1989 with the U.S. Food and Drug Administration to improve quality control systems, the company said in a statement. That agreement came after the FDA issued a highly critical report on manufacturing at the company's Indianapolis plant.
Lilly said the government hasn't questioned the safety or effectiveness of any of its drugs. The company said it is cooperating fully with the investigation by a grand jury in Maryland, where the FDA is located.
Lilly's stock price closed down $3.125 to $48.75 in trading Friday on the New York Stock Exchange. - Associated Press
Dominion Resources quarterly dividend
Dominion Resouces Inc., parent of Virginia Power, on Friday declared a quarterly dividend on its common stock of 61.5 cents per share payable March 20 to shareholders on March 2. - Wire report
Comair holdings completes offering
Comair Holdings Inc., parent of a Cincinnati and Orlando, Fla.-based regional airline operating in Roanoke as the Delta Connection, on Friday announced the completion of the public offering of 1,750,000 shares of its common stock at $26.25 per share.
Net proceeds of the offering are estimated to be approximately $43.5 million and will be used to finance a portion of the costs of acquiring the Canadair Regional Jets, equipment and the new terminal facilities at the Cincinnati/Northern Kentucky International Airport. - Wire report
Smith-Packett to develop in N.C.
Smith-Packett Med Com of Roanoke said it will develop about 150 beds at three North Carolina nursing homes under a settlement of claims against the state of North Carolina.
The company, headed by Jim Smith of Roanoke, proposed to develop 358 beds but was denied the larger number under a regulatory technicality.
A lawyer for Smith-Packett said the state did not follow proper rule-making procedures in adopting a plan for applying for approval. State officials said the technicality has been corrected.
The company owns about 20 nursing homes, operating more than 2,000 beds, in Virginia and North Carolina and two others are under construction in South Carolina and Florida, Smith said. He and three other investors own the company, started about 10 years ago.
The company appealed denials of applications for nursing homes in six North Carolina counties. - Staff report
PaineWebber settles with SEC
WASHINGTON - PaineWebber Inc. won't be able to take any new customers at five branch offices for a month as part of a settlement stemming from alleged wrongdoing - including fraud and theft - by account executives.
The Securities and Exchange Commission accused PaineWebber in an administrative action Thursday of failing to properly supervise employees at offices in Birmingham, Ala.; Beverly Hills, Calif.; Northbrook and Oakbrook, Ill.; and Houston. The securities brokerage operates an office in Roanoke.
Without admitting wrongdoing, PaineWebber agreed to settle the charges and to submit to a 30-day ban against opening new accounts at the five offices involved.
In addition, PaineWebber must hire an outside consultant to advise the firm on handling sales practices and conduct training seminars for all supervisors and managers at branch offices.
From November 1986 to June 1988, according to the SEC, PaineWebber account executives at the five offices engaged in abusive sales practices including: misleading clients about the riskiness of some investments, stealing money from customer accounts and selling unsuitable investments.
- Associated Press
American Woodmark earnings report
American Woodmark Corp., Winchester maker of kitchen cabinets and vanities, on Friday reported that sales for its third quarter, ended Jan. 31, rose 36 percent to $40.2 million compared $29.6 million in the like period in 1992.
However, the company recorded a loss of $497,000 or 7 cents per share for the quarter, compared to a loss of $2.3 million or 34 cents per share in the like period last year.