AIG settles misreporting complaint for $146.5M
TALLAHASSEE, Fla. – American International Group Inc. and its affiliates have agreed to pay $146.5 million to all 50 states and the District of Columbia to settle a complaint that it misreported billions of dollars in workers’ compensation premiums in past years.
Florida Insurance Commissioner Kevin McCarty, whose state was among those pressing the complaint, announced the settlement Monday.
AIG was accused of misreporting $21.1 billion in workers’ compensation premium as other lines of insurance in past years.
The company agreed to pay a $100 million national penalty and $46.5 million in additional premium taxes and assessments.
McCarty said Florida’s share of the settlement will total $14.3 million. He said the misreported premiums had wrongly reduced AIG’s taxes and assessments.
Costco complies, pays $3.6M to California
OAKLAND, Calif. – Retail giant Costco will pay $3.6 million for alleged environmental violations under a settlement with the district attorneys of more than two dozen California counties.
A Northern California judge approved the settlement Friday. It stems from a civil case brought by the district attorneys, who alleged Costco violated state laws for the safe storage, handling and disposal of hazardous waste, including pharmaceutical waste.
Prosecutors say the violations first came to light in San Joaquin County, but occurred from 2007 to 2012 at Costco stores and distribution centers across the state.
The $3.6 million settlement includes civil penalties, costs and funds for environmental projects.
Prosecutors say Costco officials were cooperative and quickly came into compliance with regulations.
Starbucks buys bakery to improve food offerings
NEW YORK – Starbucks Corp. is looking to offer a more tempting menu, with a $100 million cash deal to buy a small bakery chain.
The Seattle-based coffee shop chain says baked goods from La Boulange will start replacing its current lineup early next year, starting with French pastries such as the croissant. Products will start appearing in Bay Area stores first then roll out nationally.
Starbucks also says it plans to make the San Francisco-area bakery into a national presence in the years ahead.
“We’ll take it one store at a time, starting in metropolitan areas around the U.S. where there’s demand,” said Cliff Burrows, president of Starbucks Americas.
Food has become an important part of Starbucks’ revenue stream in recent years, with the segment now generating $1.5 billion a year. About a third of the purchases in its U.S. locations include a food item.
La Boulange, which also serves salads and sandwiches in a casual sit-down setting, has 19 locations in the Bay Area. The chain is being sold to Starbucks by Next World Group, a privately held investment firm based in San Francisco.