Tuesday headlines include: General Motors paying claims for 19 deaths connected to ignition switches, Boeing and Lockheed teaming up with Amazon founder Jeff Bezos to build new rocket engines, Allergan settling one of its suits against Bill Ackman and Valeant, Walmart's chief spokesman resigning over a falsified resume, and General Electric foregoing gears in a new jet engine to save weight.
Automaker General Motors (GM) will pay compensation claims in connection with 19 deaths linked to faulty ignition switches according to Ken Feinberg, the outside attorney in charge of the company's compensation fund. Feinberg is still reviewing claims. The amount the company will pay to compensate victims has not yet been released.
Aerospace giant Boeing (BA) is teaming up with Lockheed Martin (LMT) and Blue Origin, a company run by Amazon (AMZN) founder Jeff Bezos to build a new rocket engine. United Launch Alliance, a jount venture between Boeing and Lockheed, currently uses rocket engines used in Russia to power some of its vehicles.
Botox-maker Allergan (AGN) settled a lawsuit with Valeant (VRX) and William Ackman's Pershing Square Capital Management over the timing of a special meeting of shareholders. The meeting is now set for Dec. 18. Shareholders as of Oct. 30 will be eligible to receive notice of the meeting and to vote. Allergan is still urging that shareholders vote against Valeant's offer for the company, calling it “grossly inadequate.” Allergan is still pursuing a separate lawsuit in California that claims Ackman and Valeant used insider information when preparing their bid for the company.
The chief spokesman for Walmart (WMT) resigned last week after the company discovered that he had lied about his academic credentials on his resume. David Tovar claimed he had received a bachelor of arts degree from the University of Delaware in 1996, but records from the University confirmed to Bloomberg that Tovar never received a diploma.
Industrial conglomerate General Electric (GE) decided not to use gears in a turbofan engine that it is developing for the Airbus A320. General Electric, in partnership with French firm Safran, is competing with United Technologies (UTX) unit Pratt & Whitney to make new engines for the plane. Mark Little, GE's chief technology officer said at an investor conference that the company made the decision based on the idea that adding additional components would add weight to the engine as well as raising new reliability concerns.