Autonomy founder fires back at HP after news of DOJ inquiry



Autonomy founder Mike Lynch



(Credit:
HP)


Autonomy founder and former CEO Mike Lynch is firing back at Hewlett-Packard after the release of HP's annual report with the U.S. Securities and Exchange Commission today. The report states that the federal government opened an inquiry into HP's acquisition of Autonomy in November and hints that Autonomy's accounting is partially to blame.

"It is extremely disappointing that HP has again failed to provide a detailed calculation of its $5 billion write-down of Autonomy, or publish any explanation of the serious allegations it has made against the former management team, in its annual report filing today," Lynch said in an e-mailed statement. "Furthermore, it is now less clear how much of the $5 billion write-down is in fact being attributed to the alleged accounting issues, and how much to other changes in business performance and earnings projections."

HP acquired the enterprise software company in August 2011 for $11.1 billion, or 11 times its annual earnings. Since the purchase, controversy, lawsuits, and an $8.8 billion charge against HP's earnings have ensued.

HP and Lynch have traded arguments in the press over who deserves the blame for Autonomy's subpar performance. In its fourth-quarter earnings release last month, HP said it had discovered "extensive evidence" of fraudulent accounting and failed disclosures on Autonomy's part leading up to the sale. Consequently, Lynch set up a Web site that denies HP's charges and says HP mishandled the company after acquiring it.

"We also do not understand why HP is raising these issues now given that Autonomy reported into the HP Finance team from the day the acquisition completed in October 2011, there was an extensive due diligence process and Autonomy was audited as a public company for many years," Lynch said today. "We also note the statement in HP's annual report that it received confirmation from the U.S. Department of Justice on 21 November 2012 (the day after HP's first public statement), that the Department had opened an investigation. We can confirm that we have as yet had no contact from any regulatory authority. We will co-operate with any investigation and look forward to the opportunity to explain our position."


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Study: Cancer drug substitute linked to higher rate of relapse

(CBS News) Abby Alonzo was 10 when she was diagnosed in 2009 with Hodgkin's lymphoma, a cancer of the immune system. With proper treatment, 90 percent of patients survive.

"It wasn't as hard for me as I think it as it was on my mom and my brother and my dad," Abby says.

Abby began a seven-drug regimen. But in 2010, doctors told Abby's mother, Katie, there was a nationwide shortage of one of the medicines -- mechlorethamine.

"I started to get a little hysterical, 'Why is it not available?'" says Katie.

In 2010, 23 cancer drugs had shortages. Reasons include manufacturing problems and low profit margins for the drugs, which became mostly generic, and therefore less expensive, than brand-name.

"There is really nothing you can do," Katie says. "You do what your doctor tells you to do, you take what medications your doctor tells you to take, and you pray that it works. And if one of those medications isn't available, you just take, you know, the next-best thing."

Doctors thought the next-best thing for patients like Abby was a drug called cyclophosphamide.

Life-saving cancer drugs for children stuck in federal legislative limbo

But a new study in the New England Journal of Medicine showed 88 percent treated with the original drug were cancer-free after two years -- compared to only 75 percent of those receiving the replacement drug.

"This is the first study to clearly show that when we substitute one drug for what we think is just an equally good drug, that's not always going to be the case. So it's demonstrating a negative impact on patients," says Dr. Richard Gilbertson, the director of cancer care at St. Jude Children's Research Hospital.

Abby was one of the patients who relapsed. She then needed a bone marrow transplant, radiation and more chemotherapy. Right now, she shows no signs of cancer.

"What if I relapsed again? Or what if something else happens? You know, it is just really scary, that part," Abby says.

The original drug in the study is finally available again after almost three years. But there are still 13 drugs used in cancer therapy, and a total of 100 on the FDA shortage list.

Congress passed legislation last July giving the FDA more authority to deal with cancer drug shortages. That new law has made a big difference, and the key provision is the requirement that drug manufacturers let the FDA know when there's an impending shortage.

Since that law was passed, there has been a doubling of those notifications, so the FDA can increase imports from abroad and tell other manufacturers in the United States to step up production.

Another provision in that law is that the FDA set up a task force looking at other possible solutions to the drug shortage crisis, and they're required to submit that report to Congress by this coming July.

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Toyota Agrees to $1B Settlement in Acceleration Case












Toyota has agreed to pay more than $1 billion to customers to settle a class action lawsuit that alleged its vehicles accelerated dangerously and without warning, according to statements by the carmaker and the plaintiffs' attorney.


The deal, which still needs approval by a federal judge in California, includes a $250 million fund to be paid to Toyota owners who sold their cars at a loss following reports of vehicle malfunctions, as well as the installation of a brake override system in about 3.25 million vehicles


An additional $250 million fund will be created to pay those owners whose vehicles are not eligible for the retrofitted brakes.






David Zalubowski/AP PHoto







Toyota recalled more than 14 million vehicles after reports of sudden, unexplained acceleration in several models began to surface between 2009 and 2010. There were also reports of brake problems with the Prius hybrid.


Toyota insists that it was not an electrical flaw that caused the acceleration problems, but driver error, floor mats and sticky gas pedals.


Both the National Highway Traffic Safety Administration and NASA have said there is nothing in wrong with programs that run the vehicles' onboard computers


"From the very start, this was a challenging case," said Steve Berman, the plaintiffs' lawyer. "We brought in automotive experts, physicists and some of the world's leading theoreticians in electrical engineering to help us understand what happened to drivers experiencing sudden acceleration."


The settlement also includes $30 million to be given to outside groups to study automotive safety.


In a statement, Toyota agreed to the deal.


"In keeping with our core principles, we have structured this agreement in ways that work to put our customers first and demonstrate that they can count on Toyota to stand behind our vehicles." said Toyota spokesman Christopher P. Reynolds.



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Mental illness, poverty haunted Afghan policewoman who killed American


KABUL (Reuters) - The Afghan policewoman suspected of killing a U.S. contractor at police headquarters in Kabul suffered from mental illness and was driven to suicidal despair by poverty, her children told Reuters on Wednesday.


The woman was identified by authorities as Narges Rezaeimomenabad, a 40-year-old grandmother and mother of three who moved here from Iran 10 years ago and married an Afghan man.


On Monday morning, she loaded a pistol in a bathroom at the police compound, hid it in her long scarf and shot an American police trainer, apparently becoming the first Afghan woman to carry out such an attack.


Narges also tried to shoot police officials after killing the American. Luckily for them, her pistol jammed. Her husband is also under investigation.


Her son Sayed, 16, and daughter Fatima, 13, described how they tried to call their parents 100 times after news broke of the shooting, then waited in vain for them to come home.


They recalled Narges's severe mood swings, and how at times she beat them and even pulled out a knife. But the children said she was consistent in bemoaning poverty.


"She was usually complaining about poverty. She was complaining to my father about our conditions. She was saying that my father was poor," Sayid said in an interview in their damp, cold two-room cement house.


On the floor beside him were his mother's prescriptions and a thick plastic bag filled with pills she tried to swallow to end the misery about a month ago. On another occasion, she cut her wrist with a razor, Sayed said.


"My father was usually calm and sometimes would say that she was guilty too because it wasn't a forced marriage. They fell in love and got married."


There was no sign in their neighborhood of the billions of dollars of Western aid that have poured into Afghanistan since the ouster of the Taliban in 2001, or of government investment.


RAW SEWAGE, STAGNANT WATER, DIRT ROADS


The lane outside their home stank of raw sewage.


Dirty, stagnant water filled holes in dirt roads nearby, where children in tattered clothes played and butchers stood by cow's hooves in shops choked by dust.


Afghanistan is one of the world's poorest nations, with a third of its 30 million residents living under the poverty line.


The sole distractions from the daily grind appeared to be a deck of playing cards and a compact disc with songs from Iranian pop singers, scattered on the floor of a room where Narges would lock herself in and weep, or sit in silence.


At times, Narges would try to focus on building her children's confidence, telling them to be guided by the Muslim holy book, the Koran, to tackle life's problems.


Sayed and Fatima said she never spoke badly of the U.S. presence in Afghanistan or of President Hamid Karzai's government.


Neighbor Mohammad Ismail Kohistani was dumbfounded to hear on the radio that Afghan officials were combing Narges' phone records to try to determine whether al Qaeda or the Taliban could have brainwashed her into carrying out a mission.


But he was acutely aware of her mental problems and often heard her scream at her husband, whose low-level job in the crime investigation unit of the police brought home little cash.


Kohistani, who operates a small sewing shop with battered machines, never imagined his neighbor could be accused of a high-profile attack that raised new questions about the direction of an unpopular war.


"I became very depressed and sad," said Kohistani, sitting on the floor few feet from a tiny wood-burning stove in Narges's home, alongside family photographs and a police training manual.


Fatima would often seek refuge in Kohistani's house when her mother's behavior became unbearable. "She did not hate us, but usually she was angry and would not talk to us," said Fatima, her eyes moist with tears.


Nevertheless, she missed her mother. The children were staying with a cousin.


"I ask the government to free my mother, otherwise our future will be destroyed," said Fatima.


Officials described it as another "insider shooting", in which Afghan forces turn on Westerners they are meant to be working with to stabilize the country. There have been over 52 such attacks so far this year.


The shooting at the police headquarters may have alarmed Afghanistan's Western allies. But some Afghans have grown numb to the violence.


Kohistani's 70-year-old father Omara Khan, who sports a white beard, sat twirling prayer beads beneath a photograph of Narges in a black veil beside one of her husband.


Asked what he thought of the attack, he laughed.


"This is common in Afghanistan," said Khan, who lived through decades of upheaval, including the 10-year Soviet occupation and a civil war that destroyed half of Kabul and killed some 50,000 civilians.


"People are killed every day."


(Editing by Ron Popeski)



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Criket: Clarke sets record as Australia turn screw






MELBOURNE: Captain Michael Clarke became Australia's highest runscorer in a calendar year as his team ploughed through the second morning wicketless to grind down Sri Lanka in the second Test.

Clarke passed Ricky Ponting's previous national record of 1,544 runs with a single just before lunch as Australia tightened the screws on the hapless Sri Lankans in Melbourne.

At lunch, the Australians were 238 for three with Clarke unbeaten on 56 and his vice-captain Shane Watson not out 60 in an unbroken fourth-wicket partnership of 121.

Australia had stretched their lead to 82 runs over the tourists with seven wickets still intact, leaving Sri Lanka looking down the barrel.

Clarke began the Melbourne Test needing 56 runs to break Ponting's national record and at the break he had scored 1,545 runs in Australia's final Test of the year.

The Australian skipper, who was in doubt ahead of the game with an injury, has scored a triple century and three double centuries in a trailblazing 2012.

Clarke had a let-off in Rangana Herath's 17th over when Kumar Sangakkara missed a tough stumping chance on 54 and then Mahela Jayawardene put down a high chance at slip off Watson three balls later.

Sri Lanka's injury problems multiplied with paceman Chanaka Welegedara pulling up four balls into his 15th over gripping his right hamstring and he left the field immediately for treatment.

Welegedara went to hospital for scans and left his team a bowler short as Australia continued to build their innings lead.

The tourists went into the second day already without wicketkeeper Prasanna Jayawardene with a hairline thumb fracture suffered while batting in his team's first innings on Boxing Day. Sangakkara took over behind the stumps.

The Australian pair had few problems in the opening session although Sri Lanka's quickest bowler Shaminda Eranga clocked Clarke on the helmet with a surprise bouncer which went for leg-byes.

The 100-run partnership came off 215 balls in 142 minutes.

- AFP/al



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Tap Twitter, control a cockroach





Too bad we can't control all cockroaches through Twitter. Yuck.



(Credit:
Brittany Ransom)


Next time you see a cockroach, don't scurry away faster than it can flee. In fact, if you're a lover of the weirder side of life, the intrusive insect could represent one heck of a science project.


For example, artist Brittany Ransom created Twitter Roach -- a discoid cockroach that can be controlled through tweets that it receives on the popular microblogging service.




As it turns out, humans can actually control cockroaches with a device called RoboRoach -- a tiny electronic backpack that attaches to a cockroach and stimulates the bug's antenna nerves, enabling the controller to turn the insect left or right with the press of a button.


Ransom built upon the Roboroach concept and added some Arduino hardware and custom-programmed software to link the bug to Twitter. While on display at the "Life, in some form" art exhibition by the Chicago Artists Coalition, visitors could send the @TweetRoach account commands such as "#TweetRoachLeft" and #TweetRoachRight."





The Tweet Roach sits while awaiting its next command.



(Credit:
Brittany Ransom)



Those of you concerned about insect welfare can rest easy; the roach didn't stay enslaved all day long. Ransom told Crave via e-mail that the bug "wears the backpack for short intervals" and "is only accessible to the Twitter community during designated times." To avoid a flood of commands, Ransom set the cockroach to receive no more than one tweet every 30 seconds.


Why would someone take on such a strange project? Ransom says she's exploring a kind of insectoid parallel to the digital overstimulation many of us experience today. She aims to see if the cockroach can learn to eventually learn to adapt and ignore the stimulating effects of her setup.


"At what point does its intelligence and ability take over? How much does it take before we are all desensitized to overstimulation? As we, as human beings, grow more cyborgian and interconnected through social media, this project helps us participate in discovering the answer," Ransom said in an e-mail about the project.



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Obama cuts Hawaii trip short to address "fiscal cliff"

KAILUA, Hawaii President Barack Obama is cutting short his traditional Christmas holiday in Hawaii to return to Washington as lawmakers consider how to prevent the economy from going over the so-called fiscal cliff, the White House said Tuesday.

Obama will fly back to the nation's capital Wednesday night, just five days after arriving in Hawaii, White House officials said. In the past, the president's end-of-the-year holiday in his native state has stretched into the new year.

Congress is expected to return to Washington on Thursday. Automatic budget cuts and tax increases are set to begin in January. So far, the president and congressional Republicans have been unable to reach agreement on any alternatives.




Play Video


Seven days 'til the "fiscal cliff"






9 Photos


The Obamas in Hawaii



CBS News correspondent Nancy Cordes reported earlier Tuesday that the president will likely put pressure on Congress to pass a Democratic plan being drafted by Senate Majority Leader Harry Reid.

"There still have been no conversations between Democrats and Republicans Tuesday on how to avert the fiscal cliff," Cordes reported from Hawaii. "That's a sure sign that Reid is working on crafting legislation on his own, which he'd essentially dare Republicans in the House and Senate to pass just before the deadline."

Cordes notes that Reid's bill would likely extend the Bush-era tax cuts for households making less than $250,000 a year. It may also include enough short-term spending cuts to temporarily offset, for about six to eight months, the across-the-board spending cuts set to go into effect on January 1, 2013.

Lawmakers have expressed little but pessimism for the prospect of an agreement coming before Jan. 1. On Sunday, Sen. Kay Bailey Hutchison, R-Texas, said she expects any action in the waning days of the year to be "a patch because in four days we can't solve everything."

The Obamas were spending the holiday at a rented home near Honolulu. On Christmas Day, the president and first lady Michelle Obama visited with Marines to express thanks for their service.

"One of my favorite things is always coming to base on Christmas Day just to meet you and say thank you," the president said. He called being commander in chief his greatest honor as president.

Obama took photos with individual service members and their families.

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Christmas Tornadoes Tear Across South













A nasty Christmastime storm system spawned blizzard conditions in some states and at least 15 reported tornadoes in the South, damaging homes, taking out power lines and dangerously snarling holiday travel.


Severe weather swept across the United States during the Christmas holiday, bringing tornadoes and intense thunderstorms to the Gulf Coast, while dumping heavy snow and freezing rain on the Southern Plains.


At least 15 tornadoes were reported today from Texas to Alabama, putting this storm system potentially on track to be one of the largest Christmas day tornado outbreaks on record.


One large tornado was reported in Mobile, Ala., where there are about 19,000 customers without power and 23,429 statewide, according to Alabama Power. Kerry Burns, a Mobile resident originally from Boston, said the storm "sounded like a freight train."


Some buildings in the area, including some churches and a local high school, were reportedly damaged. Ray Uballe, another Mobile resident, said his dad was shaken up.


"He was in his apartment," Uballe said. "He said it sounded like an airplane and then the door flung open and then there was just debris flying."


Douglas Mark Nix, president of the Infirmary Health System, said one of their Mobile hospitals lost power and sustained damage. There were no early reports of injuries to staff or patients.


"We are operating now on generator power," he said. "We do not have substantial damage but we do have a number of windows out and we have some ceiling tiles down, throughout the facility at the main hospital.


"We can run for at least two weeks but I saw power crews out all over the city so I fully expect power to be restored within the next day or so," Nix added.






Melinda Martinez/The Daily Town Talk/AP Photo















Winter Weather Causes Holiday Travel Problems Watch Video





At least eight states were issued blizzard warnings today, as the storms made highways dangerously slick heading into one of the busiest travel days of the year.


Oklahoma got about 7 inches of snow all over the state making for treacherous road conditions. ABC News affiliate KOCO-TV in Oklahoma City said the weather was being blamed for a 21-vehicle wreck on Interstate 40, but no one was seriously injured.


Ice accumulation in Arkansas bent trees and power lines, leaving at least 50,000 customers across the state without power. About 10 inches of snow fell on Fayetteville, Ark.


The storms, which first wreaked havoc on the West Coast before moving east, are being blamed for at least one death in Texas.


Investigators in the Houston area told ABC state KTRK-TV in Houston that a young man was trying to move a downed tree that was blocking the roadway when another one snapped and fell on top of him. He was later pronounced dead at a hopsital.


The last time a number of tornadoes hit the Gulf Coast area around Christmas Day was in 2009, when 22 tornadoes struck on Christmas Eve morning, National Weather Service spokesman Chris Vaccaro told ABC News over email.


The deadliest Christmastime tornado outbreak on record was Dec. 24 to 26, 1982, when 29 tornadoes in Oklahoma, Missouri, Arkansas, Tennessee and Mississippi killed three people and injured 32.


The last killer tornado around Christmas, Vaccaro said, was a Christmas Eve EF4 in Tennessee in 1988, which killed one person and injured seven. EF4 tornadoes can produce winds up to 200 mph.


No official word yet on the strength of the string of tornadoes reported today.


While some were preparing for a Christmas feast, others were hunkered down.


More than 180 flights nationwide were canceled by midday, according to the flight tracker FlightAware.com. More than half were canceled by American Airlines and its regional affiliate, American Eagle.


The storm system is expected to continue east into Georgia and the Carolinas Wednesday and could potentially spawn more tornadoes, according to the National Weather Service.


ABC News' Matt Gutman, Max Golembo and ABC News Radio contributed to this report.



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Egypt approves constitution drafted by Mursi allies


CAIRO (Reuters) - Egyptian voters overwhelmingly approved a constitution drafted by President Mohamed Mursi's allies, results announced on Tuesday showed, proving that liberals, leftists and Christians have been powerless to halt the march of Islamists in power.


Final elections commission figures showed the constitution adopted with 63.8 percent of the vote in the referendum held over two days this month, giving Mursi's Islamists their third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in a 2011 revolution.


Opposition groups had taken to the streets to block what they see as a move to ram through a charter that mixes politics and religion dangerously and ignores the rights of minorities.


Mursi says the text - Egypt's first constitution since Mubarak's fall - offers enough protection for minorities, and adopting it quickly is necessary to end two years of turmoil and political uncertainty that has wrecked the economy.


"I hope all national powers will now start working together now to build a new Egypt," Murad Ali, a senior official in the Muslim Brotherhood's Freedom and Justice Party, told Reuters.


"I see this as the best constitution in Egypt's history."


In a sign that weeks of unrest have taken a further toll on the economy, the government ordered new restrictions on foreign currency apparently designed to prevent capital flight. Leaving or entering with more than $10,000 cash is now banned.


Two years since waves of unrest broke out across the Middle East and North Africa - sweeping away long-entrenched rulers in Tunisia, Libya and Yemen as well as Egypt - well-organized Islamist parties have emerged as the main beneficiaries.


Urban secularists and liberals who were behind the revolts complain that their success has been hijacked.


"We need a better constitution," said Khaled Dawood, an opposition spokesman. "It does not represent all Egyptians."


Mursi's opponents say the new constitution could allow clerics to intervene in lawmaking, while offering scant protections to minorities and women. Mursi dismisses those criticisms, and many Egyptians are fed up with street protest movements that have prevented a return to normality.


Immediately after the announcement, a small group of protesters set tires on fire and blocked traffic near the central Tahrir square, the cradle of Egypt's uprising, but there were no immediate signs of violence or major demonstrations.


Washington, which provides billions of dollars a year in military and other support for Egypt and regards it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.


"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said. He noted that many Egyptians had voiced "significant concerns" over the constitutional process.


WORSENING ECONOMY


The government says its opponents are worsening the economic crisis by prolonging political upheaval. It has pledged to impose unpopular tax increases and spending cuts to win a loan package from the International Monetary Fund.


The ban on travelling with more than $10,000 in cash followed a pledge by the central bank to take unspecified measures to protect Egyptian banks. Some Egyptians have begun withdrawing their savings in fear of more restrictions.


"I am not going to put any more money in the bank and neither will many of the people I know," said Ayman Osama, father of two young children.


He said he had taken out the equivalent of about $16,000 from his account this week and planned to withdraw more, adding that he had also told his wife to buy more gold jewellery.


The "yes" vote paves the way for a parliamentary election in about two months, setting the stage for another battle between surging Islamists and their fractious opponents.


The final result, announced by the election commission, matched - to the last decimal place - an earlier unofficial tally announced by Mursi's Muslim Brotherhood.


But the opposition said it was disappointed - it had appealed for the result to be amended to reflect what it described as major vote violations during the two-round vote.


Officials said there were no violations serious enough to change the result significantly. "We have seriously investigated all the complaints," said judge Samir Abu el-Matti of the Supreme Election Committee. The final turnout was 32.9 percent.


SENSE OF CRISIS


The referendum has sharpened painful divisions in the Arab world's most populous nation and a growing atmosphere of crisis has gripped Egypt's polarized society.


Anxiety about the economy deepened this week when Standard and Poor's cut Egypt's long-term credit rating. Prime Minister Hisham Kandil told the nation of 83 million on Tuesday the government was committed to fixing the economy.


"The main goals that the government is working towards now is plugging the budget deficit, and working on increasing growth to boost employment rates, curb inflation, and increase the competitiveness of Egyptian exports," he said.


The referendum follows Islamist victories in parliamentary and presidential elections, representing a decisive shift in a country at the heart of the Arab world where Mursi's Muslim Brotherhood was suppressed for generations by military rulers.


However, secularist and liberal opposition members hope they can organize better in time for the next parliamentary vote.


Hossam El-Din Ali, a 35-year-old newspaper vendor in central Cairo, said he agreed the new constitution would help bring some political stability but like many others he feared the possible economic austerity measures lying ahead.


"People don't want higher prices. People are upset about this," he said. "There is recession, things are not moving. But I am wishing for the best, God willing."


(Additional reporting by Patrick Werr, Tamim Elyan, Ahmed Tolba and Marwa Awad; Writing by Maria Golovnina)



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Cyclist trapped under car at junction of Lorong Marzuki






SINGAPORE: A cyclist suffered head injuries after he ended up under a car following a collision.

The accident happened at the junction of Lorong Marzuki and Sims Avenue East in the direction of Bedok, near Kembangan MRT station at about 7:20am.

The Singapore Civil Defence Force (SCDF) personnel extricated the cyclist within five minutes of arriving on the scene.

The cyclist, in his 40s, was conscious and was conveyed to Changi General Hospital.

Police investigations are ongoing.

- CNA/ck



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