S.F. mourns a twin with a passion for fashion









SAN FRANCISCO — They were known simply as the San Francisco Twins.


At 5-foot-1 and about 100 pounds apiece, the fashion enthusiasts were an integral part of the city fabric for four decades. With matching furs, hats and high-end purses, they completed one another's sentences, posed for countless tourist snapshots and modeled for the likes of Reebok, Joe Boxer and IBM.


Now one is gone.





Vivian Brown, 85, who had Alzheimer's, died in her sleep Wednesday, leaving behind Marian, who was eight minutes younger. The illness, and news of the twins' financial distress, brought an outpouring of support from city residents in recent months.


Donations managed by Jewish Family and Children Services helped Vivian move into an elegant assisted living facility in Lower Pacific Heights and provided for a car service so Marian could visit "as much as she wanted to," Development Director Barbara Farber said. "The community really responded.…It's been a beautiful thing."


At a benefit concert for the twins in August, the Go-Go's Jane Wiedlin and other musicians honored Marian. Cash flowed in to cover her meals at Uncle Vito's Pizza on Nob Hill, long one of the ladies' regular haunts.


On Friday, fans offered collective condolences as they swallowed some bitter medicine: The sightings that brought joy to many — of the twins in leopard-print cowboy hats parading up and down Powell Street and window shopping at Union Square — are forever a thing of the past.


In saying goodbye to Vivian, the city has ushered out an era of style.


"All of that has gone, and that's true of all cities," said Ann Moller Caen, the widow of Pulitzer Prize-winning San Francisco columnist Herb Caen, who wrote often about the twins. "They've lost the elegant few."


Mayor Ed Lee echoed residents' grief in online postings throughout the day, saying that "San Francisco is heartbroken" over Vivian's passing and was "fortunate to have called her a true friend."


The twins, who were born in Kalamazoo, Mich., and held degrees in business administration, moved to San Francisco in 1973, lured by Vivian's chronic bronchial condition. Once on the West Coast, Vivian became a legal secretary and Marian worked at a bank.


But fashion was their passion, and they cut a striking double image.


There were the fitted white suit jackets with pleated skirts, veiled hats and white fur coats; the red wool Ellen Tracy suits with black felt hats and black gloves.


"When you first came to the city and saw them, you might think it was a little joke. But it really wasn't," Caen said Friday. "They were very warm and very pleasant to everyone, and they just loved Herb. And he loved them."


Evelyn Adler recalled that her father, who sold shoes at the Emporium on San Francisco's Market Street in the 1970s, had regularly waited on "the girls," as he called them.


"They were always at the very height of sometimes ridiculous fashion," said Adler, 82. Her father, she said, had talked of how years of wearing pointy shoes left the twins with overlapping toes. (They later embraced lower heels that were "much more suited to their feet," Adler said.)


As a volunteer for Jewish Family Services, Adler recently shopped for a new wardrobe for Vivian — and was taken aback by the sight of the twins in separate outfits. About a quarter-century ago, the twins admitted to an interviewer that after a six-month attempt to dress differently in their 20s, they had abandoned the project forever. Even their lingerie matched.


They had their regular haunts, which Marian now frequents solo.


David Dubiner, owner of Uncle Vito's Pizza, said the sisters began coming in nearly two decades ago. They always sat at the table by the window, chatting with tourists for so long that their food had to be reheated.


Vivian often did more talking, Dubiner said, but Marian now holds court for two


On Thursday evening, Marian arrived alone at the Sir Francis Drake Hotel on Union Square to "have a glass of champagne and toast her sister goodbye," said Tom Sweeney, chief doorman at the hotel who for the last 37 years watched the twins descend the four blocks from their Nob Hill apartment.


"They're quite the personalities of San Francisco," Sweeney said. "We'll definitely miss Vivian."


lee.romney@latimes.com





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Britney Spears and fiance end yearlong engagement


LOS ANGELES (AP) — Britney Spears announced Friday that she has ended her yearlong engagement, capping a week of changes that included her leaving "The X Factor" and promising fans she was returning her focus to music.


Within hours of confirming her departure from the Fox reality series, Spears also announced that her relationship with talent agent Jason Trawick had ended.


"Jason and I have decided to call off our engagement," Spears said in the statement. "I'll always adore him and we will remain great friends."


Spears' publicist Jeff Raymond said the breakup was a difficult decision made by "two mature adults."


"I love and cherish her and her boys, and we will be close forever," Trawick said in a joint statement that was first reported by People magazine.


Trawick also resigned his role Friday as a Spears' co-conservator, with Superior Court Judge Reva Goetz approving his departure from the case.


Spears and Trawick got engaged in December 2011 and he was added as her co-conservator in April.


Spears, 31, has been under a court-supervised conservatorship since February 2008, with her father and another co-conservator, Andrew Wallet, having control over numerous aspects of her personal life. The case was opened after several incidents of erratic behavior by the pop singer and a pair of hospitalizations, but Spears has recovered and she appeared weekly on "X Factor."


She said in a statement that judging young talent made her miss performing. "I can't wait to get back out there and do what I love most," she said in a statement.


Her father Jamie Spears met with Goetz for about an hour on Friday but left before a hearing where Trawick's resignation was announced.


Trawick has served as Spears' agent and the pair started dating in 2009.


Trawick did not have authority over Spears' finances, which have rebounded since her public meltdown. Goetz recently reviewed and approved of an accounting that showed Spears ended 2010 with more than $27.5 million in assets, including nearly $15 million in cash.


Attorneys handling the case are expected to file updated financial statements in the coming months.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP .


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Former Lab Technician Denies Faulty DNA Work in Rape Cases





A former New York City laboratory technician whose work on rape cases is now being scrutinized for serious mistakes said on Friday that she had been unaware there were problems in her work and, disputing an earlier report, denied she had resigned under pressure.




The former lab technician, Serrita Mitchell, said any problems must have been someone else’s.


“My work?” Ms. Mitchell said. “No, no, no, not my work.”


Earlier, the city medical examiner’s office, where Ms. Mitchell said she was employed from 2000 to 2011, said it was reviewing 843 rape cases handled by a lab technician who might have missed critical evidence.


So far, it has finished looking over about half the cases, and found 26 in which the technician had missed biological evidence and 19 in which evidence was commingled with evidence from other cases. In seven cases where evidence was missed, the medical examiner’s office was able to extract a DNA profile, raising the possibility that detectives could have caught some suspects sooner.


The office declined to identify the technician. Documents said she quit in November 2011 after the office moved to fire her, once supervisors had begun to discover deficiencies in her work. A city official who declined to be identified said Ms. Mitchell was the technician.


However, Ms. Mitchell, reached at her home in the Bronx on Friday, said she had never been told there were problems. “It couldn’t be me because your work gets checked,” she said. “You have supervisors.”


She also said that she had resigned because of a rotator cuff injury that impeded her movement. “I loved the job so much that I stayed a little longer,” she said, explaining that she had not expected to stay with the medical examiner’s office so long. “Then it was time to leave.”


Also on Friday, the Legal Aid Society, which provides criminal defense lawyers for most of the city’s poor defendants, said it was demanding that the city turn over information about the cases under review.


If needed, Legal Aid will sue the city to gain access to identifying information about the cases, its chief lawyer, Steven Banks, said, noting that New York was one of only 14 states that did not require routine disclosure of criminal evidence before trial.


Disclosure of the faulty examination of the evidence is prompting questions about outside review of the medical examiner’s office. The City Council on Friday announced plans for an emergency oversight committee, and its members spoke with outrage about the likelihood that missed semen stains and “false negatives” might have enabled rapists to go unpunished.


“The mishandling of rape cases is making double victims of women who have already suffered an indescribably horrific event,” said Christine C. Quinn, the Council speaker.


A few more details emerged Friday about a 2001 case involving the rape of a minor in Brooklyn, in which the technician missed biological evidence, the review found. The victim accused an 18-year-old acquaintance of forcing himself on her, and he was questioned by the police but not charged, according to a law enforcement official.


Unrelated to the rape, he pleaded guilty in 2005 to third-degree robbery and served two years in prison. The DNA sample he gave in the robbery case was matched with the one belatedly developed from evidence the technician had overlooked in the 2001 rape, law enforcement officials said. He was recently indicted in the 2001 rape.


Especially alarming to defense lawyers was the possibility that DNA samples were cross-contaminated and led to false convictions, or could do so in the future.


“Up to this point,” Mr. Banks said, “they have not made information available to us, as the primary defender in New York City, to determine whether there’s an injustice that’s been done in past cases, pending cases, or allowing us to be on the lookout in future cases.” He added, “If it could happen with one analyst, how does anyone know that it stops there?”


The medical examiner’s office has said that the risk of cross-contamination was extremely low and that it does not appear that anyone was wrongly convicted in the cases that have been reviewed so far. And officials in at least two of the city’s district attorneys’ offices — for Brooklyn and Manhattan — said they had not found any erroneous convictions.


But Mr. Banks said the authorities needed to do more, and that their statements thus far were the equivalent of “trust us.”


“Given what’s happened,” he said, “that’s cold comfort.”


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Boeing Dreamliner to undergo federal safety review









Plagued by one mishap after another, Boeing Co.'s much-heralded 787 Dreamliner passenger jet for the 21st century is feeling new heat from federal regulators.


Days after one of the planes caught fire while parked in Boston and another experienced a fuel leak, the Federal Aviation Administration has launched an unusual "comprehensive safety review of Boeing 787 critical systems." This includes a sweeping evaluation of the way Boeing designs, manufactures and assembles the aircraft.


The review — just 17 months after the FAA gave the go-ahead to the new $200-million-plus plane — does not ground the 50 Dreamliners currently being flown by eight airlines around the globe.





Since the inception of its next-generation passenger jet, Boeing has touted the revolutionary way the Dreamliner is made and the way it operates. But those novel technologies will now attract greater scrutiny from U.S. regulators after recent events have raised questions about Dreamliner safety.


New planes, in general, have "teething" issues as they are introduced. But, industry analysts said, the type of review the Dreamliner is undergoing is rare, and passenger jets haven't been subject to this sort of sweeping government review for decades.


Boeing said it will participate in the review with the FAA and believes the process will underscore customers' and the traveling public's confidence in the reliability of the aircraft.


U.S. Transportation Secretary Ray LaHood and FAA chief Michael Huerta launched the effort Friday at a news conference in Washington, revealing plans for a "comprehensive safety review of Boeing 787 critical systems." This includes a complete evaluation of the aircraft, including an assessment of the way Boeing designs, manufactures and assembles the aircraft.


The move comes despite the "unprecedented" certification process in which FAA technical experts logged 200,000 hours of work over nearly two years and flew on numerous test flights, Huerta said. There were more than a dozen new special conditions developed during the certification process because of the Dreamliner's innovative design.


"The purpose of the review is to validate the work that we've done," Huerta said, "and to look at the quality and other processes to ensure that effective oversight is being done."


Certification of the Dreamliner was completed Aug. 25, 2010, and the first plane was delivered to All Nippon Airways a month later. It was more than three years late because of design problems and supplier issues.


The Dreamliner, a twin-aisle aircraft that can seat 210 to 290 passengers, is the first large commercial jet with more than half its structure made of composite materials (carbon fibers meshed together with epoxy) rather than aluminum sheets. Another innovative application is the changeover from hydraulically actuated systems typically found on passenger jets to electrically powered systems involving lithium ion batteries.


For instance, Boeing has said electric brakes "significantly reduce the mechanical complexity of the braking system and eliminate the potential for delays associated with leaking brake hydraulic fluid, leaking valves and other hydraulic failures." Because of these technologies, Boeing says, the new plane burns 20% less fuel than other jetliners of a similar size.


But the use of such extensive electronic systems was called into question when a smoldering fire was discovered Monday on the underbelly of a Dreamliner operated by Japan Airlines Co. after the 173 passengers and 11 crew members had deplaned at the gate.


The incident prompted the FAA and the National Transportation Safety Board to investigate.


"We don't know the cause of the fire, but it's a serious issue," said Scott Hamilton, an aviation industry consultant and managing director of Leeham Co. in Issaquah, Wash. "Did the FAA miss something? Did Boeing have an oversight in the design process? Was there a problem in the supply chain? These are questions we don't have answers to."


In December, the FAA ordered inspections of fuel line connectors because of risks of leaks and fires.


On the same day, a United Airlines Dreamliner flight from Houston to Newark, N.J., was diverted to New Orleans after an electrical problem popped up mid-flight. Qatar Airways, which had accepted delivery of a Dreamliner just a month earlier, grounded the aircraft for the same problem that United experienced.


Still, both LaHood and Huerta insist the Dreamliner is safe. Ray Conner, Boeing's chief executive of commercial aircraft, attended the conference and said the company was "fully committed to resolving any issue related to the safety" of the Dreamliner.


The Chicago company has taken 848 orders for Dreamliners from airlines and aircraft leasing firms around the world. The price ranges from $206.8 million to $243.6 million per jet, depending on the version ordered.


Major parts for the plane are assembled at various locations worldwide — including Southern California, Russia, Japan and Italy — and then shipped to Boeing's facilities in Everett, Wash., where they are "snapped together" in three days once production hits full speed, compared with a month the conventional way.


Boeing currently is making five Dreamliners a month. The company plans to reach 10 a month late this year.


Richard Aboulafia, an aerospace analyst with Teal Group Corp., a Virginia research firm, said the review will be beneficial for the Dreamliner program in the long run.


"There's no showstopper here; it's a short-term embarrassment for the company," he said. "Then again, this program is full of short-term embarrassments."


william.hennigan@latimes.com





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Villaraigosa backs Feuer in hotly contested city attorney's race









Making his first citywide endorsement of this municipal elections season, Los Angeles Mayor Antonio Villaraigosa on Thursday backed former Assemblyman Mike Feuer in the hotly contested race for city attorney.


Villaraigosa, appearing with Feuer outside the Variety Boys and Girls Club in Boyle Heights, praised the former lawmaker "as a tireless advocate, as a ferocious fighter for public safety and for kids."


The endorsement came the same day that campaign finance reports filed with the city showed Feuer to be in the best financial shape of the four candidates on the ballot as the March 5 primary nears.





Counting the $300,000 in matching public funds he qualified for, Feuer had raised nearly $1.2 million by the end of the year and had some $940,000 left to spend. City Atty. Carmen Trutanich, whom Feuer and two others are trying to unseat, reported raising $381,000, which included nearly $159,000 in matching funds, and had $313,000 in cash on hand.


Of the others on the ballot, private attorneys Greg Smith and Noel Weiss, Smith lent his campaign $616,000 — much of it during the last three months of 2012 — and reported raising $8,900 in contributions from others, bringing his total contributions to date to $97,000. Smith had $473,000 remaining and has rejected public funds. Weiss has agreed to accept the spending-limit terms attached to receiving campaign cash from taxpayers but has not qualified for any because he has not raised anything.


In another citywide race, for controller, Councilman Dennis Zine raised the most of any of the six candidates for the open seat: nearly $1 million, counting a $25,000 loan and $267,000 in matching funds.


Trutanich downplayed both Feuer's financial advantage and the mayor's endorsement. The city attorney said he had only recently begun raising money — he announced he would seek reelection shortly after failing to make the runoff in last year's district attorney election. And Trutanich also held a news conference Thursday to discount the mayor's endorsement of Feuer.


"The mayor has an appreciation for what those folks do across the street," Trutanich said, pointing to police headquarters. "But I don't think he has an appreciation for what we do in this office."


The mayor and Trutanich have had a cool relationship since 2009, when Trutanich, then an attorney in private practice, beat Villaraigosa's close political ally, then-Councilman Jack Weiss, to win the city's top legal post.


Others said the mayor's endorsement is valuable, though not likely to be the game-changer that the Feuer campaign predicted it would be.


Democratic campaign consultant Eric Hacopian, who is not working for any of the city attorney candidates, said the endorsement, though important, will probably have the most impact with those already inclined to go with Feuer, because the two men appeal to many of the same voters.


Raphael Sonenshein, a longtime observer of Los Angeles politics who heads the Pat Brown Institute at Cal State L.A., said the mayor's endorsement also could help Feuer with Latinos and African Americans, groups that sided with Rocky Delgadillo when he defeated Feuer for city attorney in 2001.


"The only silver lining for Trutanich," Sonenshein said, is that it would give him an opportunity to remind voters that he defeated an establishment candidate in the 2009 race. "He could say it's the City Hall machine" at work, but "on balance it's a good endorsement for Feuer."


jean.merl@latimes.com


wesley.lowery@latimes.com





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Baby Bones Found Scattered in Ancient Italian Village






SEATTLE — The death of an infant may not have been an occasion for mourning in ancient Italy, according to archaeologists who have found baby bones scattered on the floor of a workshop dating to the seventh century B.C.


The grisly finds consist of bone fragments uncovered over years of excavation at Poggio Civitate, a settlement about 15 miles (25 kilometers) from the city of Siena in what is now Tuscany. The settlement dates back to at least the late eighth century B.C. Archaeologists excavating the site have found evidence of a lavish residential structure as well as an open-air pavilion that stretches an amazing 170 feet (52 meters) long. Residents used this pavilion was as a workshop, manufacturing goods such as terracotta roof tiles.






In 1983, scientists uncovered a cache of bones on the workshop floor, consisting mostly of pig, goat and sheep remains. But among the bony debris was a more sobering find: two arm bones from an infant (or infants) who died right around birth.


In 2009, another baby bone surfaced at the workshop, this one a portion of the pelvis of a newborn. [See Images of the Infant Bones]


The bones “were either simply left on the floor of the workshop or ended up in an area with a concentration of discarded, butchered animals,” said Anthony Tuck, an archaeologist at the University of Massachusetts, Amherst, who presented an analysis of the bones Friday (Jan. 4) at the annual meeting of the Archaeological Institute of America.


Abandoned bones


The discovery of the discarded infant bones in an area used for work could suggest that the people who labored in the workshop had little social status, Tuck said. They may have been slaves or servants whose lost infants would garner little sympathy from the community at large.


However, a third find complicates the picture. In 1971, archaeologists found an arm bone from another newborn or near-term fetus pushed up against the wall of the lavish residence along with other bones and debris. It seems as if someone swept the debris up against the wall, not differentiating between baby bones and garbage, Tuck said. [8 Grisly Archaeological Discoveries]


There’s no way to know whose infant came to rest up against the wall of a wealthy person’s home, said Tuck, who plans to submit the findings to the journal Etruscan Studies. Perhaps the infant belonged to a desperate servant, or perhaps to a member of the family. If so, it may be that even high-status families didn’t consider babies worth mourning when they died in infancy.


The possibility can sound horrifying to modern ears, Tuck said.


“This kind of new data makes people a bit uncomfortable,” he told LiveScience. “People have a tendency to romanticize the past, especially in a place like Tuscany. When we have direct evidence for this kind of behavior, it can be a little tricky to present.”


Death in infancy


Nevertheless, Tuck said, there is reason to think that people have not always given infants the same community status as adults or older children. However, baby bones tend not to preserve well, which makes it difficult to know how ancient Italians in Tuscany treated their deceased infants.


Very few signs of infant burial appear in central Italian cemeteries from this time period, though, Tuck said. The handful of coffins containing baby bones that have been found are loaded with ornaments and jewelry, suggesting that only families of great wealth could have given a lost baby an adult-style funeral.


Even in modern times, societies have sometimes seen babies as belonging to a different category than adults, Tuck said. In areas of extreme poverty and stress that have high infant mortality, the death of a newborn may not trigger many outward displays of mourning, he said.


And many cultures have naming traditions that only recognize the baby’s identity significantly after birth. For example, in traditional Jewish culture, a baby boy’s name isn’t revealed outside the family until the bris, or the ritual of circumcision eight days after birth. According to superstition, naming the baby before then would attract the attention of the Angel of Death.


The Maasai people of Africa give their newborns temporary names until a ceremony as late as age 3, in which the child receives a new name and has his or her head shaved to symbolize a fresh start in life.


On the other hand, not all ancient cultures differentiate between the burials of babies and adults. Stone Age infant graves found in Austria in 2006 date back to 27,000 years ago and contain the same beads and pigments as adult gravesites.


The people who lived in Poggio Civitate more than 2,000 years ago have left little evidence of how they viewed infants, but Tuck and his colleagues expect more finds to emerge as the researchers continue to dig in the Tuscany hills. More evidence that high- and low-class babies were buried differently would suggest that the civilization had a rigid hierarchy, they said.


Images of more than 25,000 objects recovered from the site can be found at Open Context, an open-source research database developed by the Alexandra Archive Institute.


Follow Stephanie Pappas on Twitter @sipappas or LiveScience @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Warner wins legal victory for control of Superman


SAN FRANCISCO (AP) — Just in time for the summer release of a hoped-for blockbuster movie "Man of Steel," Warner Bros. won a second significant legal victory Thursday giving it complete commercial control of the lucrative Superman franchise.


A three-judge panel of the 9th U.S. Circuit of Appeals unanimously ruled that the heirs of Superman's co-creator Jerome Siegel must abide by a 2001 letter written by the family's attorney accepting Warner Bros.' offer for their 50 percent share of Superman. Though the five-page letter was never formalized into a contract, the appeals court said it was still binding.


"Statements from the attorneys for both parties establish that the parties had undertaken years of negotiations, that they had resolved the last outstanding point in the deal during a conversation on Oct. 15, 2001, and that the letter accurately reflected the material terms they had orally agreed to on that day," Judge Stephen Reinhardt wrote for the panel.


The ruling Thursday undoes a 2008 trial court decision ordering Warner Bros. to share an undetermined amount of money earned since 1999 with the heirs, and to give the family control of key components of the Superman story, including his costume. If that decision were to stand, the studio would have had to negotiate a new costly royalty agreement with the family.


"The court's decision paves the way for the Siegel finally to receive the compensation they negotiated for and which DC has been prepared to pay for over a decade," Warner Bros. said in a prepared statement, referring to its DC Comics division. "We are extremely pleased that Superman's adventures can continue to be enjoyed across all media platforms worldwide for generations to come."


The family's attorney, Marc Toberoff, didn't respond to a request for comment.


Toberoff said earlier that he would appeal another significant Warner Bros. victory won in October involving the family of Superman's other creator, Joseph Shuster, and their bid for half the commercial rights. Toberoff also represents the Shuster heirs, who lost their bid to retain a 50 percent share of Superman.


A federal judge in Los Angeles had ruled that Shuster's sister and brother relinquished any chance to reclaim Superman copyrights in exchange for annual pension payments from DC Comics. U.S. District Judge Otis Wright noted in that case that the families of both creators have been paid in excess of $4 million since 1978, plus undefined bonuses and medical benefits.


In April, the $412 check that DC Comics wrote in 1938 to acquire Superman and other creative works by Shuster and Siegel sold for $160,000 in an online auction.


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F.D.A. Warns Two Producers on Egg Safety


Two large egg producers have received warning letters from the Food and Drug Administration, which said they violated a two-year-old rule aimed at preventing salmonella contamination.


During inspections conducted last summer, the F.D.A. found failures to prevent pests and wildlife from entering barns housing laying hens, poor record-keeping and other infractions that amounted to what it called “serious violations” of the rule.


The failures meant that eggs the companies produced “may have become contaminated with filth,” agency inspectors wrote in the letters, which were sent late last month and posted on the agency’s Web site on Thursday.


The letters offer a window into the way new regulations the agency proposed last week to enhance food safety might work. The proposed regulations, like the rule cited in the letters, aim to prevent food from being tainted rather than addressing contamination after it has occurred.


Both producers, Midwest Poultry Services of Mentone, Ind., and SKS Enterprises Inc., in Lodi, Calif., failed to comply with plans they had submitted to the agency aimed at preventing salmonella enteritidis, one of the most common types of salmonella bacteria, the F.D.A. said. Such plans were required by a rule set out two years ago.


Officials noted the presence of more than 30 wild birds and their nests in three of the five SKS facilities they inspected between May and August, despite the company’s plans for preventing wildlife from coming into contact with its chickens and eggs.


After the inspection, SKS told the agency it would use chicken wire to prevent wild birds from entering its barns, but the agency said it had not received any follow-up report on that correction.


The F.D.A. also said the company was missing pest control records and failed to conduct tests of its birds within time frames specified by the rule.


A woman who answered the phone at SKS’s offices at about 1 p.m. Pacific time said everyone had gone home for the day.


In Midwest Poultry’s facility in Fort Recovery, Ohio, the agency inspector found records of high levels of rodent activity — in one barn, 113 rodents were caught over a five-day period.


Midwest, which produces some 150 million dozen eggs a year, could not give inspectors any record of actions it had taken to correct the problem, and a subsequent response sent to the F.D.A. in August lacked any new strategy for dealing with rodents, the agency said.


The F.D.A. said Midwest failed to maintain records showing that it had refrigerated eggs within the required 36 hours of laying.


“They cited two violations, both of which were about documentation, and all of that documentation has been sent to them,” said Robert L. Krouse, chief executive of Midwest Poultry. “Now we’re waiting to see if they want any more.”


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Herbalife fires back at hedge fund giant









Herbalife Chief Executive Michael Johnson was tired of a powerful hedge fund manager bad-mouthing his company.


So he put on a show Thursday before hundreds of investors at the Four Seasons hotel in Manhattan, rebutting claims that the Los Angeles nutritional supplement company is a pyramid scheme. The presentation accused hedge fund giant Bill Ackman of lies and snobbery, compared Herbalife to the Girl Scouts and featured the company's president entreating that "the world needs more hugs."


Who says Wall Street is more boring these days?





The company's two-hour defense of itself is the latest in a battle since Ackman's Pershing Square Capital Management labeled Herbalife as "the best-managed pyramid scheme in the history of the world," during a similar presentation he made late last month. The outspoken fund manager has made a $1-billion bet that the stock would plunge in value.


"Just the very nature of the 'battle' has never been seen in the history of the Earth," said Tim Ramey, an analyst with D.A. Davidson and Co. "This was a very, very orchestrated attack."


Herbalife has hired a battalion of researchers to prove that it has a legitimate and stable business model. Executives held back no punches Thursday before a crowd of investors and analysts, labeling Ackman an elitist who made "false statements," "distortions" and "misrepresentations" about Herbalife and vowing to use "every means available to protect our reputation."


"In recent weeks, there's been a tremendous amount of misinformation about Herbalife," Johnson said. "This misinformation has found its way into the marketplace. Therefore we are sitting with you to correct some of this today."


In addition to outside experts brought in to bolster Herbalife's claims, company executives went through Pershing's presentation last month, disputing individual slides.


To the complaint that Herbalife is not focused on its products, Chief Operating Officer Rich Goudis showed figures indicating that the company spends millions on research and development.


To a Pershing slide that accused Herbalife of having a small distribution network, the company countered with a map of more than 300 company-run distribution points and showing its expansion in Indonesia and South Korea.


To a Pershing slide showing Herbalife products as more expensive than competitors' per 200-calorie servings, the company offered its own slide that compared the prices of the products per unit and showed costs in line with those of its competitors.


"Pershing intentionally used a misleading metric," Goudis said. "They did this to knowingly create a false impression."


They paraded out experts.


Kim Rory, representing Lieberman Research Worldwide, said distributors she surveyed had joined Herbalife because they wanted to get a discount on the products for personal use. Few signed up because they thought they'd make a large amount of money, and about two-thirds would recommend being a distributor to friends, she said.


Anne Coughlan, a professor at the Kellogg School of Management, defended Herbalife's marketing structure and disputed the allegation that it is a pyramid scheme.


"I didn't even see a scintilla of evidence that would suggest to me any hint that this company is running anything but a legitimate multi-level marketing program," she said.


Perhaps the most personal attacks came from Herbalife President Des Walsh, who said he was "highly offended" by Ackman's portrayal of Herbalife's nutrition clubs and defended the company for bringing nutritional products to poor neighborhoods.


After showing a video featuring happy distributors in crowded nutrition clubs, Walsh suggested that Ackman was out of touch with real America.


"This doesn't look like a country club in Westchester, Connecticut, but let me tell you, inside this club is real America," he said. (Earlier in the presentation, Walsh explained that people come to the club for a hug, adding, "the world needs more hugs.")


His comments echo a note sent out last week by D.A. Davidson analyst Ramey, who has a "buy" rating on Herbalife.


"Perhaps where Mr. Ackman lives he never sees a car with the 'Lose weight, ask me how' message across the rear window," he wrote. "I can tell Mr. Ackman that in my hometown, which is not quite Chappaqua, Herbalife is an iconic and widely recognized brand."


Ackman responded quickly Thursday, saying that Herbalife's presentation "distorted, mischaracterized and outright ignored large portions of our presentation," and that he had been contacted by people who provided more information into Herbalife's business practices, which he will soon reveal.


The unusual fight on Wall Street ramped up in December, when Ackman laid out his case against Herbalife in a three-hour, 200-plus slide presentation. He questioned whether the company was focused on recruiting new distributors, who pay to join the company, instead of on selling products. His announcement sent the company's stock down 36% and turned heads when analysts heard he'd sold short 20 million Herbalife shares.


Ackman's biggest beef with Herbalife focused on its so-called multi-level marketing model, which he said led to only those at the top of the company making money. More than 90% of distributors break even or lose money, he said. Ackman even drew UCLA into the controversy, saying Herbalife mentioned a lab at the university multiple times during each investor presentation to lend itself legitimacy.


Herbalife shares recovered some of their losses in the weeks after Ackman's presentation as some investors expressed confidence in the company. Hedge fund Third Point said it was taking an 8.2% stake in Herbalife, betting that the company would survive Ackman's assault.


Analysts at Thursday's meeting seemed supportive of Herbalife, with some expressing their belief in the company during a question-and-answer period after the presentation. One analyst urged the company to fight back against Pershing Square's method of "slandering" the company.


"It was a good, thorough presentation that certainly accomplished the job of defending the legitimacy of their business model," Ramey said.


Still, not all investors were convinced by the presentation. Herbalife's stock closed down 71 cents, or 1.8%, at $39.24. That may be because on Wednesday the Securities and Exchange Commission opened an investigation into Herbalife, according to published reports.


alana.semuels@latimes.com





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Irvine City Council overhauls oversight, spending on Great Park









Capping a raucous eight-hour-plus meeting, the Irvine City Council early Wednesday voted to overhaul the oversight and spending on the beleaguered Orange County Great Park while authorizing an audit of the more than $220 million that so far has been spent on the ambitious project.


A newly elected City Council majority voted 3 to 2 to terminate contracts with two firms that had been paid a combined $1.1 million a year for consulting, lobbying, marketing and public relations. One of those firms — Forde & Mollrich public relations — has been paid $12.4 million since county voters approved the Great Park plan in 2002.


"We need to stop talking about building a Great Park and actually start building a Great Park," council member Jeff Lalloway said.





The council, by the same split vote, also changed the composition of the Great Park's board of directors, shedding four non-elected members and handing control to Irvine's five council members.


The actions mark a significant turning point in the decade-long effort to turn the former El Toro Marine base into a 1,447-acre municipal park with man-made canyons, rivers, forests and gardens that planners hoped would rival New York's Central Park.


The city hoped to finish and maintain the park for years to come with $1.4 billion in state redevelopment funds. But that money vanished last year as part of the cutbacks to deal with California's massive budget deficit.


"We've gone through $220 million, but where has it gone?" council member Christina Shea said of the project's initial funding from developers in exchange for the right to build around the site. "The fact of the matter is the money is almost gone. It can't be business as usual."


The council majority said the changes will bring accountability and efficiencies to a project that critics say has been larded with wasteful spending and no-bid contracts. For all that has been spent, only about 200 acres of the park has been developed and half of that is leased to farmers.


But council members Larry Agran and Beth Krom, who have steered the course of the project since its inception, voted against reconfiguring the Great Park's board of directors and canceling the contracts with the two firms.


Krom has called the move a "witch hunt" against her and Agran. Feuding between liberal and conservative factions on the council has long shaped Irvine politics.


"This is a power play," she said. "There's a new sheriff in town."


The council meeting stretched long into the night, with the final vote coming Wednesday at 1:34 a.m. Tensions were high in the packed chambers with cheering, clapping and heckling coming from the crowd.


At one point council member Lalloway lamented that he "couldn't hear himself think."


During public comments, newly elected Orange County Supervisor Todd Spitzer chastised the council for "fighting like schoolchildren." Earlier this week he said that if the Irvine's new council majority can't make progress on the Great Park, he would seek a ballot initiative to have the county take over.


And Spitzer angrily told Agran that his stewardship of the project had been a failure.


"You know what?" he said. "It's their vision now. You're in the minority."


mike.anton@latimes.com


rhea.mahbubani@latimes.com





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