THURSDAY • JULY 25, 2013
C2 Our Region
C4 Nation & World
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Ü 25.50 Dow 15,542.24
€ 0.33 Nasdaq 3,579.60
Dan Eaton • employment attorney with Seltzer Caplan McMahon Vitek
Ü 6.45 S&P 500 1,685.94
€ 0.08 10-yr. T-note 2.59%
Ü $1.84 Oil $105.39
Ü $15.40 Gold $1,319.70
Ü $0.24 Silver $20.01
More than 400,000 phone
recordings sought as part
of probe into its advertising
Euro 0.7579 • Peso 12.6362
STOCKS RETREAT:
Stocks declined
Wednesday, with the
Dow Jones average retreating from the prior
day’s record close, as investors weighed global
manufacturing data
and mixed earnings.
KAREN KUCHER • U-T
California has asked a court to order
San Diego’s Bridgepoint Education to
turn over information about its sales efforts, including hundreds of thousands
of recordings of telephone calls, as part
of an investigation into complaints of
false advertising by for-profit colleges.
The state Attorney General’s Office
filed a petition in Sacramento Superior
Court on Wednesday that said Bridgepoint had produced only a fraction of
the information sought in a January
subpoena.
According to the filing, Bridgepoint
has electronically stored more than
400,000 digital recordings of telephone
calls with people in California. The company has offered to produce 800 of those
calls and has only produced 473 records,
many that were partially redacted, the
state said in the filing.
“The Attorney General requested
these specific materials in order to
M A R K E T BUZ Z
San Diego-based
StockTwits.com founder
Howard Lindzon on what
investors are talking
about in social media.
APPLE SURGES:
Margins are at fiveyear lows, growth is
stagnant, iPads are
losing market share,
but expectations have
become so low that
Apple’s latest earnings
were good enough to lift
its stock by 5.1 percent
Wednesday to $440.51,
a day after the report’s
release. Some investor
reactions (day of week):
@N3WTRADER: $AAPL
iPhone sales up 400% in
India, there is still growth
for Apple. It’s in the emerging markets! low cost
iphone = more growth
@Amit1: $AAPL not sure
what is so positive about
beating lowered expectations and still no new
product launches.
N AT I O N
HOUSING SHINES: Sales
of new U.S. homes rose
more than forecast to
the highest level in five
years, a sign builders are
benefiting from a lack of
supply of existing properties. The Commerce
Department said sales
rose 8.3 percent last
month to a seasonally
adjusted pace of 497,000.
Sales are still below the
700,000 pace consistent
with healthy markets.
FOUNDER SWEETENS
DEAL: Founder Mi-
chael Dell and Silver
Lake Management
sweetened their offer
for Dell by 10 cents to
$13.75 per share, for a
total of $24.6 billion,
conditional upon new
voting rules that would
tilt shareholder support in their favor. The
company delayed the
meeting to vote on the
offer for a second time,
moving it to Aug. 2.
BROADCASTER LOSES:
Fox Broadcasting lost a
second bid to halt Dish
Network’s AutoHop
ad-skipping feature, as
a Los Angeles federal
appeals court refused to
overturn a lower-court
ruling that let the service
continue. Fox argued
that its contract with
Dish, a pay-TV provider,
doesn’t allow services
that skip commercials.
WO RLD
HOPES MOUNT: Financial data company
Markit said its monthly
purchasing managers’
index — a broad gauge of
economic activity — for
the 17-country eurozone rose for the fourth
month running, to 50.4
points in July from 48.7
the previous month. The
increase raised hopes for
eurozone recovery.
U-T NEWS SERVICES
SATURDAY
REAL ESTATE & GROWTH
STATE SEEKS
BRIDGEPOINT
MARKETING
INFORMATION
“California law treats sexual
harassment very, very seriously.”
MARK E TS
FRIDAY
TECHNOLOGY & ENERGY
SEE BRIDGEPOINT • C4
Mayor Bob Filner leads a city with 11,000 employees, but about 30 people work on his floor
every day — a small business that’s part of a much larger business. HAYNE PALMOUR IV • U-T
Would he last in
corporate world?
In private sector, Mayor Filner likely wouldn’t have a choice of whether
to stay or go — a company board of directors would make decision for him
JONATHAN HORN • U-T
Boeing CEO
Harry Stonecipher
T
he public outrage isn’t subsiding.
But neither is Mayor Bob Filner’s
ironclad stance to keep his job.
If he were the CEO of a private company,
a board of directors probably would not
give him a choice. The allegations released
Monday by Irene McCormack Jackson of
Filner’s requests for her to not wear underwear and “Filner Headlocks” would likely be
grounds to oust him in corporate America.
Since Monday, two more women have come
forward with claims of improper behavior
by Filner.
But for the mayor, only a lengthy public
recall can force him out of office, despite the
jarring allegations.
“That’s pretty much the definition of
a hostile work environment,” said Lonny
Zilberman, an employment attorney with
Wilson Turner Kosmo. “You could walk up
to 100 people on the street and I bet 99 of
them would find that conduct both offensive
and inappropriate in the workplace.”
McCormack Jackson received a “right
Resigned in 2005 after
having an affair. Though
she wasn’t a direct report,
Boeing determined the
company’s code of
conduct was violated.
Starwood Hotels
CEO Steven Heyer
Resigned in 2007
amid allegations that
he sent sexually explicit
emails to female
employees, allegations
Heyer denied.
Hewlett-Packard
CEO Mark Hurd
Resigned in 2010 after
he was accused of sexual
harassment by Jodie
Fisher, a contractor who
was represented by
Gloria Allred.
SEE FILNER • C3
A 1 • Third woman comes forward, claims
Filner tried to kiss her at restaurant meeting.
OBAMA TRIES TO SHIFT ATTENTION
BACK TO PUMPING UP U.S. ECONOMY
ROGER RUNNINGEN
BLOOMBERG NEWS
President Barack Obama, facing renewed battles with congressional Republicans over fiscal policy and the debt
ceiling, accused his political opponents
of diverting attention from the need to
boost the U.S. economy.
“With an endless parade of distractions, political posturing and phony
scandals, Washington has taken its eye
off the ball,” Obama said in an address
at Knox College in Galesburg, Ill., the
first of two speeches on the economy he
delivered Wednesday. “I am here to say
this needs to stop.”
Following months when the focus has
been on the president’s second-term job
appointees, his push for a new immigration law, attempts to block his signature
Qualcomm has chips in some
of the most popular smartphones,
including the iPhone 5. BLOOMBERG
QUALCOMM
TOPS EXPECTED
3Q REVENUE
S.D. wireless giant reports
$6.24 billion in sales, up
35 percent from last year
MIKE FREEMAN • U-T
Despite fears of slowing smartphone
sales, Qualcomm on Wednesday posted
higher revenue for its fiscal third quarter
than Wall Street analysts expected and hit
analysts’ target for earnings.
The San Diego wireless giant reported
sales of $6.24 billion for the quarter, up 35
percent from the prior year and above analysts’ estimates of $6.05 billion.
Earnings for the quarter came in at
$1.82 billion, or $1.03 per share, excluding stock-based compensation and other
charges. That’s up 24 percent from the
same quarter a year ago and in line with
what analysts forecast, according to First
Call.
Results would have beaten Wall Street’s
expectations if not for a 6-cent-per-share
SEE QUALCOMM • C2
C4 • Google unveils Nexus 7 tablet,
escalating mobile race against rivals.
Voted San Diego’s
BEST
Commercial Real
Estate Company
2011 & 2012
— U-T Readers Poll
President Barack Obama speaks at
the University of Central Missouri
in Warrensburg, Mo., on Wednesday.
SUSAN WALSH • ASSOCIATED PRESS
health care law and Republican-led
investigations into his administration,
Obama is seeking to put attention back
on the economy. He said Wednesday that
SEE ECONOMY • C4