Orange Co. sues Merrill LynchOrange County is seeking more...

BUSINESS DIGEST

January 13, 1995

Orange Co. sues Merrill Lynch

Orange County is seeking more than $2 billion from Merrill Lynch & Co., its main broker, charging that it encouraged the county to gamble with taxpayers' money.

The Orange County Board of Supervisors voted unanimously yesterday to sue the nation's biggest securities firm for its role in the nation's biggest municipal bankruptcy. The county filed suit in U.S. Bankruptcy Court in Santa Ana, Calif.

The brokerage firm said the investment risks were fully disclosed to the county by former Treasurer Robert L. Citron. It said the Board of Supervisors applauded his efforts, which had for years brought high returns, and urged him to continue.

Frederick bank raises dividend

FCNB Corp., a bank holding company in Frederick, yesterday reported a 3 percent increase in fourth-quarter earnings, to $1.25 million, or 52 cents a share, from $1.21 million, or 51 cents a share a year ago. The company, which has $438 million in assets, also increased its quarterly cash dividend by 1 cent, to 16 cents a share, and declared a special 5-cent cash dividend. Both will be paid Jan. 31 to shareholders of record Jan. 20.

Richardson quits as Flagstar CEO

Jerry Richardson resigned as chief executive of Flagstar Cos. Inc. yesterday.

Mr. Richardson, a former Baltimore Colt, will remain chairman of the Spartanburg, S.C.-based restaurant company but said he wanted to devote more time to his NFL franchise -- the Carolina Panthers. James B. Adamson, Burger King Corp.'s chief executive, will succeed Mr. Richardson.

Varvatos resigns London Fog posts

London Fog Corp. yesterday announced that its former chairman, John Varvatos, has resigned his other titles of vice chairman and president of design and merchandising. He will continue as a design consultant to the company as he forms his own design studio, the company said.

Mr. Varvatos, 40, last week said he was leaving the company with the appointment of Robert E. Gregory Jr. as chairman and chief executive officer and C. William Crain as president and chief operating officer. James Milligan, 55, the former chief executive officer, also resigned his position, but will stay on London Fog's board of directors.

Lockheed gets $1.1 billion AF pact

Lockheed Corp. received a $1.1 billion Air Force order for two satellites destined to be part of the Military Strategic and Tactical Relay satellite cluster, the Pentagon said yesterday.

Milstar is planned as a cluster of satellites that would allow the military to communicate in the event of a nuclear war. Lockheed, which received government approval this week to merge with Martin Marietta Corp., is the prime contractor.

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