Abbott settles in baby formula suitAbbott Laboratories...

BUSINESS DIGEST

May 25, 1993

Abbott settles in baby formula suit

Abbott Laboratories, the nation's largest producer of infant formula, agreed last week to pay more than $140 million to settle lawsuits charging that it conspired with other major producers to drive up the price.

In a series of agreements concluded on the eve of a trial against Abbott in Tallahassee, Fla., the company agreed to pay $79 million to wholesale purchasers of formula to settle a class-action suit, $8 million to the state of Florida, and $53 million to three major supermarket chains -- Albertson's, Safeway and American Stores.

Tokyo firms join multimedia effort

Kaleida Labs, a joint venture of Apple Computer Inc. and International Business Machines Corp., announced in Tokyo yesterday that three Japanese electronics giants had joined its quest to create a standard for computers that can display video images and reproduce music and voices.

Hitachi Ltd., Mitsubishi Electric Corp. and Toshiba Corp. -- along with Apple and IBM -- have become charter members of an alliance to use Script X, Kaleida's computer language for the creation and playback of multimedia programs.

Atlanfed declares 5-for-4 split

Atlanfed Bancorp Inc., the parent of Atlantic Federal Savings Bank, declared a 5-for-4 stock split in the form of a 25 percent stock dividend to be paid June 25 to stockholders of record as of June 8. The number of shares outstanding will increase to about 1.36 million after payment of the dividend.

NVR re-amends Chapter 11 plan

NVR L.P., the parent of Ryan Homes and NVHomes, has filed a second set of amendments to the reorganization plan it hopes will bring the company out from under the protection of a federal bankruptcy court in Virginia. NVR, which filed for Chapter 11 reorganization in 1992, said the plan provides that owners of NVR partnership units -- including bondholders who would swap their bonds for units -- would vote on whether NVR will convert from a partnership to a corporation.

More credit for Integrated Health

Integrated Health Services Inc. of Hunt Valley said it obtained a $100 million revolving credit facility provided by Citicorp USA and six other banks. Integrated Health is a leading provider of specialty medical care for the elderly.

GEICO units to pay rebates

GEICO Corp. said four of its units will pay a total of $21 million in rebates to their California customers under the state's insurance rate rollback law.

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