Virginia Businesses in the News


Legal and Regulatory

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For the Record is compiled from company releases, business journals and newspaper reports from around the state. If you have an item for these listings: • Mail it to: For the Record Virginia Business Magazine P.O. Box 85333 Richmond, VA 23293 • E-mail it to ForTheRecord@va-business.com • Fax it to (804) 649-6311

The General Accounting Office rejected objections from Specialty Martine of Chesapeake that the Navy had improperly folded work on two tugs into a larger maintenance contract. Previously, such work had been awarded on a separate, smaller contract. The trend in awarding Navy contracts has been to award bigger contracts to fewer shipyards, a process smaller yards argue makes it harder to compete. (06/22/2004, The Virginian-Pilot)

Virginia, along with the states of New York, Connecticut, New Mexico and Arkansas, were sued by Commonwealth Brands of Bowling Green, Ky. The cigarette company charged the states with failure to enforce provisions of the national tobacco settlement intended to maintain a level playing field for cigarette companies. The suit seeks to force the states into arbitration to settle how money the company owes under terms of the settlement. (05/17/2004, Richmond Times-Dispatch)

Philip Morris, a Richmond-based cigarette manufacturer, had an $80 million judgment against it reaffirmed by an Oregon state appeals court. The U.S. Supreme Court had ordered the Oregon court to re-examine the 1999 verdict in a case brought by the family of the late Jesse D. Williams, an Oregon janitor who died of lung cancer. The court concluded the award was justified because the company had knowingly marketed a harmful product for some time. Philip Morris’ parent company, Altria Group Inc., plans to ask the Oregon Supreme Court to review the decision. (06/10/2004, The Associated Press)

Davenport & Co., a Richmond-based brokerage firm, was fined $450,000 and ordered to pay $228,000 in restitution for aiding deceptive trading practices involving variable annuities. (06/02/2004, The Virginian-Pilot)

Dan River, a Danville-based textile manufacturer, received approval from bankruptcy court for the $145 million debtor-in-possession credit facility led by Deutsche Bank Trust Company Americas. The DIP financing, which expires March 31, 2005, along with cash from company operations, will fund Dan River during its Chapter 11 process. (05/28/2004, Business Wire)

Smithfield Foods, a meat products producer headquartered in Smithfield, lost a decision by the 8th U.S. Circuit Court of Appeals, which ruled an Iowa law banning meatpackers from raising animals they slaughter may be legal and sent the case back to district court for trial. (05/25/2004, Daily Press)