Surgeon infected patients during heart procedure, Cedars-Sinai admits









A heart surgeon at Cedars-Sinai Medical Center unwittingly infected five patients during valve replacement surgeries earlier this year, causing four of the patients to need a second operation.


The infections occurred after tiny tears in the latex surgical gloves routinely worn by the doctor allowed bacteria from a skin inflammation on his hand to pass into the patients' hearts, according to the hospital. The patients survived the second operation and are still recovering, hospital officials said.


The outbreak led to investigations by the hospital and both the L.A. County and California departments of public health. The federal Centers for Disease Control and Prevention was also consulted.








Hospital officials called it a "very unusual occurrence" probably caused by an unfortunate confluence of events: the nature of the surgery, the microscopic rips in the gloves and the surgeon's skin condition. Valve replacement requires the surgeon to use thick sutures and tie more than 100 knots, which can cause extra stress on the gloves, they said.


Nevertheless, the hospital's goal is to have zero infections, said Harry Sax, vice chairman of the hospital's department of surgery. "Any hospital-acquired infection is unacceptable," he said.


The infections raise questions about what health conditions should prevent a surgeon from operating and how to get the best protection from surgical gloves. Surgeons with open sores or known infections aren't supposed to operate, but there is no national standard on what to do if they have skin inflammation, said Rekha Murthy, medical director of the hospital's epidemiology department. She added that there were also no national standards on types of gloves used, whether to wear double gloves or how many times surgeons should change those gloves during a procedure.


Healthcare-acquired infections are very common throughout the United States. Each year, infections cause 99,000 deaths in the country, including about 12,000 in California. Hospitals in the state are required to report certain infections to the California Department of Public Health. That reporting makes the public more aware of the quality of care provided at local hospitals and is an important tool for reducing infections, said Debby Rogers, deputy director of the department's Center for Health Care Quality.


Cedars-Sinai has low rates for hospital-acquired infections compared with the state and national average but has not performed as well on other surgical quality measures recently, according to the Leapfrog Group, an employer-backed nonprofit focused on healthcare quality. The organization gave the hospital a C rating last month on its national report card, down from an A in June, though it was not related to the infection outbreak.


"Clearly this hospital is making attempts to reduce infections, but they have more work to do," said Leah Binder, Leapfrog's chief executive.


Cedars-Sinai Medical Center conducts about 360 valve replacement surgeries each year and said infections occur in fewer than 1% of its cases — lower than the national average.


The hospital learned about the problem in June after three patients who had undergone valve replacement surgery showed signs of infection. Doctors diagnosed the patients with an infection called endocarditis. Concerned there might be a connection among the cases, epidemiologists analyzed the bacteria, staphylococcus epidermidis, and determined that it was an identical strain and therefore must have come from a single source. "It led to the question of gee, I wonder where it came from?" Murthy said.


Epidemiologists homed in on the surgeon with the skin inflammation. The bacteria matched, and then they made a surprising discovery: microscopic tears in the gloves typically worn by surgeons after performing valve replacement surgery. The surgeon, whose name was not released, was not allowed to operate again until he healed. He is still a member of the medical staff but no longer performs surgeries at the hospital.


The hospital soon found the same infection in two more patients. Officials also reached out to 67 patients who had heart valve replacements with the same surgeon but didn't find any other cases. One of the five infected patients was treated with antibiotics, and the other four had new valve replacement surgeries. Sax said the hospital apologized to the patients and has continued to monitor their health. The hospital has also covered the cost of their care, including follow-up treatment and all the related surgeries.


All surgeons doing valve replacements are now required to change gloves more frequently, officials said. Some surgeons are wearing double gloves during the operations, Sax said.


Following the outbreak, Cedars-Sinai did the proper follow-up to ensure the safety of their patients, said Dawn Terashita, a medical epidemiologist with L.A. County, who was notified in September. What occurred at Cedars-Sinai was an unintentional consequence of the surgery, she said.


"There is no way to keep a room entirely sterile and all the people in it sterile," she said. "You will always have risk of infection."


anna.gorman@latimes.com





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Lupus forces singer Toni Braxton into LA hospital


LOS ANGELES (AP) — Singer Toni Braxton has been hospitalized in Los Angeles.


The R&B performer says in a Tweet on Friday that she's been hospitalized because of "minor health issues" related to Lupus. A spokeswoman confirmed the hospitalization but had no other details. "But no worries!," Braxton wrote to fans. "I will be out any day now."


The 45-year-old singer of "Un-break My Heart" revealed two years ago she has Lupus, a potentially deadly autoimmune disease that killed Braxton's uncle. She also suffers from a narrowing of the blood vessels in her heart.


Braxton said in a recent "20/20" interview that doctors told her the Lupus diagnosis meant her performing career would likely be diminished and the disease helped push her into a recent bankruptcy.


___


Online:


http://tonibraxton.com


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His goal is to make Evite more inviting









The gig: Since being named president of Evite in 2009, Hans Woolley has been in charge of modernizing the pioneer of online social planning. The West Hollywood firm, owned by Liberty Media, has about 16 million to 18 million unique users a month who create, send and manage email invitations. But by the time Woolley was named to the top post, the then-11-year-old company had fallen behind new rivals such as Facebook Events. Last month, Evite launched Postmark, a line of high-end, customizable e-cards — the company's first new offering since its founding in 1998.


Starting in start-ups: Woolley, 34, was born and raised in Port-au-Prince, Haiti. He graduated from Cal Poly Pomona with a degree in computer science in 2000. With funding from media conglomerate IAC/InterActiveCorp, Woolley co-founded Pronto in 2006. The desktop application for comparing prices on more than 65,000 shopping websites occupied a Manhattan office that was once a nuclear bunker. But Pronto downloads stalled in the months after the launch, and it became clear to Woolley's team that customers wanted their searches to be online. So Pronto spent four months building a Web-based shopping search engine from scratch. Traffic surged from 816,000 unique monthly U.S. visitors in February 2007 to 9.1 million in February 2008. "I learned the importance of accepting that you've messed up," Woolley said. "You have to be flexible, and pivot, and try again."


The big challenge: Woolley took the Evite job in 2009 because he saw room for growth. His greatest challenge was changing the culture of a company that was profitable but stagnant; its online invitations, which lead viewers to an ad-supported Web page, had acquired a reputation for being slow, rude and ugly. ("At the very least, allow me to commend the hostess for not having sent an Evite," a New York Times advice columnist recently sniped.) The Web system had not been overhauled since its launch.





Creating a culture: The new goals for Evite are innovation, speed, willingness to try new things — and the flexibility to fail, if it comes to that, Woolley said. The Evite team hand-coded a new, more seamless Web system to replace a rickety, patched version. In new offices on Sunset Boulevard, Woolley used interior design to instill a more open culture, including more natural light, chalk murals on blackboard walls and red-brick accents for a "New York loft feel." There is a ping-pong room but no cubicles. He hosts "hackathons," during which over-caffeinated employees have 24 hours to build new features for the website.


Innovation in a time of change: The company is learning to ease its customers, who may not be as receptive to change, into new features and modifications. Customer service is available around the clock by email, instant message and phone. The constant evolution of the tech industry makes staying ahead of the curve a challenge, particularly when a company is coming from behind, Woolley said. He has tried to strike a balance between responding to shifts in the industry and making changes that Evite needs, including making the service's much-maligned ads more integrated and artful.


Hiring the right people: He looks for smart people with diverse passions and a deep knowledge of Evite's operations and goals who can work in a collaborative setting. "I don't want to always be told that I'm right," Woolley said. "A little push-back from employees makes everything stronger."


Outside the office: Woolley spends 10 to 12 hours a day at the office, but puts in even more time mentally. "When you love what you do, you always think about it." When he isn't in the office, he enjoys hiking, basketball, soccer and tennis, and spending time with his wife Michelle and 3-month-old son, Max, at their home in West Hollywood. He also volunteers in his native Haiti, where the economy largely depends on tourism and spending by nonprofit organizations. He is helping develop sustainable business plans and increase the availability and cultivation of food, including working with local fish farmers and advising on the board of several nonprofits.


laura.nelson@latimes.com





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Japan's post-quake tsunami warning lifted









TOKYO—





A strong earthquake Friday struck the same Japanese coast devastated by last year's massive quake and tsunami, generating small waves but no immediate reports of heavy damage. Several people along the northeastern coast were reportedly injured and buildings in Tokyo and elsewhere swayed for several minutes.

The earthquake had a preliminary magnitude of 7.3 and struck in the Pacific Ocean off the coast of Miyagi prefecture at 5:18 p.m. (0818 GMT), the Japan Meteorological Agency said. The epicenter was 6.2 miles beneath the seabed and 150 miles offshore.

The area was shaken by repeated, smaller aftershocks, the agency said.

After the quake, authorities issued a warning that a tsunami potentially as high as 2.2 yards could hit. Sirens whooped along the coast as people ran for higher ground.

Ishinomaki, a city in Miyagi, reported a tsunami 1 yard high and other towns reported smaller tsunamis.

About two hours after the quake struck, the tsunami warning was cancelled. The Pacific Tsunami Warning Center earlier said there was no risk of a widespread tsunami.

Aiko Hibiya, a volunteer for the recovery in Minami-Sanriku, a coastal town devastated by last year's tsunami, said she was at a friend's temporary housing when the quake struck.

“It shook for such a long time,” she said.

She said other volunteers who had been in coastal areas were evacuated to a square and a parking lot as they waited for the tsunami warning to be lifted.

Japan has barely begun to rebuild from last year's magnitude-9.0 earthquake, which triggered a tsunami that swelled to 20 meters high in some areas, ravaging dozens of coastal communities in Miyagi and elsewhere. About 19,000 people were killed and some 325,000 people remain displaced from their homes, living in barracks and other temporary quarters.

Miyagi prefectural police said there were no immediate reports of damage from Friday's quake and tsunami, although traffic was being stopped in some places to check on roads.

Public television broadcaster NHK reported that five people were injured, including a 75-year-old woman in Miyagi who fell while fleeing the tsunami. Police said they could not immediately confirm those reports.

Shortly before the earthquake struck, NHK broke off regular programming to warn that a strong quake was due to hit. Afterward, the announcer repeatedly urged all near the coast to flee to higher ground.

The Meteorological Agency has an early warning system that, using data from seismographs scattered across Japan, enables it to provide advance warning of the estimated intensity and timing of a major quake. The warning for Friday's quake was issued six minutes before it struck, according to an unnamed official from the Meteorological Agency who spoke on national television more than an hour after the quake.

The magnitude-9.0 earthquake and ensuing tsunami that slammed into northeastern Japan on March 11, 2011, killed or left missing some 19,000 people, devastating much of the coast. checks after the

Last year's earthquake and tsunami also caused meltdowns at the Fukushima Dai-Ichi nuclear plant in the worst nuclear disaster since the Chernobyl in 1986.

Immediately following Friday's quake, there were no problems at any of the nuclear plants operated by Fukushima Dai-Ichi operator Tokyo Electric Power Co., said a TEPCO spokesman, Takeo Iwamoto. Only two of Japan's 50 nuclear plants are currently operating; the rest have been shut down for maintenance and safety checks while the country re-examines the future of nuclear power there.

All Nippon Airways spokesman Takuya Taniguchi said government officials were checking on the runways at Sendai airport. The two jets that were in the air went to other airports and all seven flights scheduled to go to Sendai for the day were cancelled, he said.

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Netflix says CEO’s Facebook post triggered SEC notice












SAN FRANCISCO (Reuters) – Netflix Inc said on Thursday securities regulators warned they may bring civil action against the company and its chief executive for violating public disclosure rules with a Facebook post, in a case that raises questions about how public companies communicate on social media.


The high-profile Silicon Valley CEO, Reed Hastings, dismissed the contention and said he did not believe the Facebook post was “material” information.












Hastings wrote in the post on the company’s public Facebook page on July 3: “Netflix monthly viewing exceeded 1 billion hours for the first time ever in June.” The post was accessible to the more than 244,000 subscribers to the page.


Netflix received what is known as a Wells Notice from the U.S. Securities and Exchange Commission, which means the SEC staff will recommend the full commission pursue either a cease-and-desist action and/or a civil injunction against Netflix and Hastings over the alleged violation.


Netflix may have run afoul of the SEC’s Regulation FD, adopted in 2000, which requires public companies to make full and fair public disclosure of material non-public information.


“We think posting to over 200,000 people is very public, especially because many of my subscribers are reporters and bloggers,” Hastings said on Thursday in a letter. He also said that he did not believe the Facebook posting was “material” information.


The SEC believes that figure is material information that should have been disclosed in a press release or regulatory filing, according to Hastings’ letter.


“We remain optimistic this can be cleared up quickly through the SEC’s review process,” said Hastings in the public letter to shareholders that the online video streaming company submitted alongside a regulatory filing citing the receipt of the “Wells Notice” from the SEC.


Netflix’s stock jumped from $ 67.85 a share on July 2, the day before Hastings’ post, to $ 81.72 on July 5. On July 25 its stock fell 22 percent to $ 60.28 when the company reported second-quarter earnings fell from $ 68.2 million a year earlier to $ 6.2 million this year.


“It’s totally disingenuous to say that his statement wasn’t material when the stock went from under $ 70 a share to more than $ 80 and the only data point was that post,” said Wedbush Securities analyst Michael Pachter.


REGULATORY GREY AREAS?


But legal and securities experts say the fast-changing world of social media leaves room for regulatory grey areas.


“The evolution of social media presents the SEC with some very interesting regulatory challenges. But if they’re worried about social media, there are ways for them to address that without threatening to sue Reed Hastings. They should have a rulemaking where they can ventilate these issues,” said Joseph Grundfest, former SEC commissioner and Stanford Law School professor.


“This situation has nothing to do with the problems that Regulation FD was designed to address.”


Joseph Marrow, an attorney at the Waltham, Massachusetts law firm Morse Barnes-Brown Pendleton, said there are conflicting views on what constitutes disclosure in circumstances like this, also noting the rules are not settled in this area.


“I would not suggest companies publish material non-public information on Facebook and Twitter without discussing it before with in-house counsel. Companies are putting together social media policies,” he said.


“If Netflix doesn’t have a policy, I bet they will have one very soon,” he said, adding the issue was unlikely to be serious enough to threaten Hastings’ position as CEO of Netflix, but could result in some type of financial penalty for the company.


Netflix shares fell 1.4 percent to $ 85 in after-hours trading on Thursday.


(Reporting by Ronald Grover and Sue Zeidler in Los Angeles Additional reporting by Alexei Oreskovic and Alistair Barr in San Francisco; Editing by Dan Grebler, Phil Berlowitz and Muralikumar Anantharaman)


Social Media News Headlines – Yahoo! News


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AP Interview: Jackson, cast discuss 'The Hobbit'


WELLINGTON, New Zealand (AP) — Many fans are eagerly anticipating a return to the fictional world of Middle-earth with next week's general release of the first movie in "The Hobbit" trilogy. Director Peter Jackson and the film's stars speak to The Associated Press about making "The Hobbit: An Unexpected Journey":


— Jackson on shooting at 48 frames per second instead of the standard 24: "We've seen the arrival of iPhones and iPads and now there's a generation of kids — the worry that I have is that they seem to think it's OK to wait for the film to come out on DVD or be available for download. And I don't want kids to see 'The Hobbit' on their iPads, really. Not for the first time. So as a filmmaker, I feel the responsibility to say, 'This is the technology we have now, and it's different ... How can we raise the bar? Why do we have to stick with 24 frames? ...'"


"The world has to move on and change. And I want to get people back into the cinema. I want to play my little tiny role in encouraging that beautiful, magical, mysterious experience of going into a dark room full of strangers, and being transported into a piece of escapism."


Martin Freeman (Bilbo Baggins) on shooting some scenes without other actors around: "I must admit I found the green screen and all that easier than I thought I would. ... I found the technical aspect of it quite doable. Some of it's difficult, but it's quite enjoyable, actually. It taps into when I used to play 'war' as a 6-year-old. And the Germans were all imaginary. Because I was playing a British person. So yeah, I was on the right side. ..."


On marrying his performance to that of Ian Holm, who played an older Bilbo Baggins in the "Lord of the Rings" trilogy: "I knew I couldn't be a slave to it. Because as truly fantastic as Ian Holm is in everything, and certainly as Bilbo, I can't just go and do an impression of Ian Holm for a year and a half. Because it's my turn. But it was very useful for me to watch and listen to stuff he did, vocal ticks or physical ticks, that I can use but not feel hamstrung by."


— Hugo Weaving (Elrond) on the differences in tone to the "Rings" trilogy: "This one feels lighter, more buoyant, but it's got quite profoundly moving sequences in it, too ... I think it's very different in many ways, and yet it's absolutely the same filmmaker, and you are inhabiting the same world."


— Elijah Wood (Frodo) on returning to Middle-earth in a cameo role: "It was a gift to come back ... what they'd constructed was such a beautiful remembrance of the characters from the original trilogy."


Cate Blanchett (Galadriel) on the toughest part of filming: "Trying to keep my children off the set."


Richard Armitage (Thorin Oakenshield) on being a 6-foot-2 guy playing a dwarf: "It's amazing how quickly you get used to it. And also, we spent most of the shoot much bigger than a 6-foot-2 guy. I mean, I had lifts in my shoes, I was wider, I was taller, and bigger-haired. And I actually think that was quite an interesting place to be, because I do think dwarfs have big ideas about themselves ..."


— Andy Serkis (Gollum) on taking on the additional role of second-unit director: "There were only a couple of times where there were really, really black days where I went away thinking, 'This is it. I can't do it.' But on the whole, Pete (Jackson) was so brilliant at allowing me to set stuff up and then critiquing my work ... but at least I would have my stab at it."


On the film itself: "I think it's a great story. I think it's a beautifully crafted film with great heart. A rollicking adventure, and it feels to me like this really massive feast that everyone will enjoy eating."


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John McAfee hospitalized in Guatemala, delaying his deportation









Tech pioneer John McAfee's deportation to Belize, where he is wanted for questioning in connection with a murder investigation, was delayed when he was hospitalized in Guatemala, according to the U.S. Embassy in that country.

McAfee, 67, was arrested Wednesday in Guatemala City on suspicion of entering the country illegally. He had crossed the border with a 20-year-old girlfriend he calls Sam and two writers from Vice magazine in tow.

He had been dodging Belize police for nearly a month after being named a person of interest in the shooting death of his neighbor Gregory Faull.





No warrant for McAfee's arrest has been issued in Belize, but he claimed that if he was captured by officials there he would be killed. The Guatemalan government had denied his requests for asylum, according to the Associated Press.

McAfee was moved from an immigration detention center in Guatemala to a police-run hospital Thursday afternoon after complaining that he had suffered chest pains overnight, the Associated Press said.

The U.S. Embassy in Guatemala confirmed that McAfee was in the hospital and that embassy officials had provided "standard consular services" to him, but spokesman John Hishmeh said he could not comment further.

"We're following it just as much as you all," Hishmeh said.

McAfee's lawyers said they planned to appeal the denial of asylum to Guatemala's constitutional court. The process could give the American expatriate another day or two in the country, and the court would have to issue a decision within 48 hours, the Associated Press said.

Belize police had expected McAfee to be flown back to that nation Thursday morning, police spokesman Raphael Martinez said. He said the police have been told there was a delay.

"It's just a wait-and-see now," Martinez said. "As soon as he is released, he will be escorted by [Guatemalan] authorities and he will be received at whatever border is determined. "He will then be taken into police custody for detention and questioning."

Throughout this saga, McAfee has been blogging. In a post Thursday titled "Urgent from John," he implored supporters to "please email the president of Guatemala and beg him to allow the court system to proceed, to determine my status in Guatemala."

At a hotel in Guatemala City on Wednesday night, just before authorities whisked him off in a black pickup truck, McAfee turned to a video camera, saying: "Guatemalan jails have beds, dude. And food. That's pretty awesome." The video was released by Vice magazine.

In a post from jail, McAfee said he had been provided "excellent coffee."

"I asked for a computer and one magically appeared," McAfee blogged from behind bars. He said his Guatemalan cell was "vastly superior" to Belize jails.

McAfee was arrested by Belize police in April and charged with weapons possession and unlicensed drug manufacturing. The charges were later dropped.

The ongoing saga has included McAfee's repeated claims that he is innocent and that Belize officials were persecuting him. Documenting the bizarre journey in a blog about life on the run, McAfee detailed a series of elaborate disguises he claimed he used to hide in plain sight, including tamale seller and Speedo-clad German tourist.

It's unclear whether the self-professed prankster was telling the truth, but the blog and a series of videos released by the two Vice writers following him has resulted in a media frenzy.

The software mogul made his fortune when his antivirus company McAfee Associates went public in 1992.

He sold his stock within two years for about $100 million. He subsequently lost millions on real estate investments, bad business ventures and bonds linked to Lehman Bros., he told the New York Times in 2009. At that time, his fortune had dropped to about $4 million.

chrisine.maiduc@latimes.com





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Baca shifts course on compliance with deportation program









Los Angeles County Sheriff Lee Baca has reversed his support for a controversial deportation program, announcing Wednesday that he will not comply with federal requests to detain suspected illegal immigrants arrested in low-level crimes.


The sheriff's dramatic turnaround came a day after California Atty. Gen. Kamala Harris issued a legal directive advising that compliance with the requests is discretionary, not mandatory.


Until then, Baca had insisted that he would honor the requests from U.S. Immigration and Customs Enforcement to hold some defendants for up to 48 hours. He was an outspoken opponent of the Trust Act, which would have required California law enforcement officials to disregard the requests in many cases, declaring that he would defy the measure if it passed.








Baca has also been sued by the American Civil Liberties Union for allegedly denying bail to immigration detainees.


Now, he appears ready to do more or less what was proposed in the Trust Act, which was vetoed by Gov. Jerry Brown in September.


The change of heart from Baca, a Republican in a heavily Democratic county, comes as GOP leaders are warming to immigration reform in an effort to counteract dismal support from Latino voters. Last month, Baca closed the 1,100-bed Mira Loma immigration detention center, which earned his agency up to $154 a day for each detainee, after contract negotiations with ICE broke down.


None of those considerations were at play, a Baca spokesman said. The sheriff's reversal was prompted solely by Harris' opinion, which contradicted advice from Los Angeles County attorneys that the requests were mandatory, said the spokesman, Steve Whitmore.


Baca joins Los Angeles Police Chief Charlie Beck, who announced a similar policy in October. San Francisco and Santa Clara counties also decline to honor some types of ICE holds.


The change may not take effect until early next year. Baca's staff must first flesh out the details of the new policy, which would apply only to those arrested in misdemeanors who do not have significant criminal records. The department would still honor federal detention requests for those accused of serious or violent crimes.


Under the federal Secure Communities program, all arrestees' fingerprints are sent to immigration officials, who flag suspected illegal immigrants and request that they be held for up to 48 hours until transfer to federal custody.


Secure Communities has come under fire for ensnaring minor offenders when its stated purpose is to deport dangerous criminals and repeat immigration violators. According to federal statistics, fewer than half of those deported in Los Angeles County since the program's inception in 2008 have committed felonies or multiple misdemeanors. Critics say immigrants have become fearful of cooperating with police.


"The last thing we want is victims to be frightened to come forward," Whitmore said.


ICE officials said Baca's new policy is in line with federal priorities and will affect only a "very small number" of cases.


"The identification and removal of criminal offenders and other public safety threats is U.S. Immigration and Customs Enforcement's highest enforcement priority," the agency said in a statement.


Immigrant rights advocates called Baca's announcement a long overdue breakthrough.


"This will send a very strong message nationwide that in ... the most multicultural city in the nation, the sheriff is there to protect and to serve, not to deport," said Jorge-Mario Cabrera, communications director for the Coalition for Humane Immigrant Rights of Los Angeles.


Supporters of the Trust Act, which was reintroduced in modified form by Assemblyman Tom Ammiano (D-San Francisco) earlier this week, said it is still necessary because detention policies should not vary by jurisdiction.


"It's imperative that California have a uniform statewide policy. It's essential that people not receive different treatment under the law as they're driving up and down the 5," said Chris Newman, legal director of the National Day Laborer Organizing Network.


Baca has not taken a position on the new Trust Act, which is likely to evolve during the legislative process, Whitmore said.


cindy.chang@latimes.com



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Individuality takes center stage at Grammys


Fun. helped break up the sound of dance and electronic music on Top 40 radio with its edgy pop-rock grooves. Frank Ocean made a bold statement in R&B — with an announcement about his sexuality and with his critically revered, multi-genre album, "channel ORANGE." And Mumford & Sons continued to bring its folk-rock swag and style to the Billboard charts with its sophomore album.


They all were rewarded Wednesday when The Recording Academy announced the nominees for the 2013 Grammy Awards.


Those acts, who scored the most nominations with six each, were joined by typical Grammy contenders like Jay-Z and Kanye West, who also got six nominations. The Black Keys' drummer, Dan Auerbach, is also up for six awards, thanks to his nomination for producer of the year. His band earned five nods, along with R&B singer Miguel and jazz pianist Chick Corea.


"It feels like alternative music is back," said fun. guitarist Jack Antonoff. His band's gold-selling "Some Nights" is up for album of the year, competing with Black Keys' "El Camino," Mumford & Sons' "Babel," Jack White's "Blunderbuss" and "channel ORANGE," the major label debut from Ocean.


Fun. is nominated in all of the major categories, including best new artist, and record and song of the year for its breakthrough anthem "We Are Young."


Ocean, whose mother attended the nominations special, scored nods in three of the top four categories. His song "Thinkin Bout You" — which he originally wrote for another singer — will compete for record of the year with Black Keys' "Lonely Boy" and four No. 1 hits: Taylor Swift's "We Are Never Ever Getting Back Together," ''Somebody I Used to Know" by Gotye and Kimbra, Kelly Clarkson's "Stronger (What Doesn't Kill You)" and "We Are Young" by fun.


Song of the year, too, features some No. 1 hits, including fun. and Clarkson's jams, as well as Carly Rae Jepsen's viral smash "Call Me Maybe." But then there's Ed Sheeran's "The A Team," a slow groove about a homeless prostitute, and Miguel's "Adorn," the R&B singer-songwriter's crossover hit.


"It's like one of those songs that wrote itself and I was the vessel," the 26-year-old said in an phone interview from New York City late Wednesday, where he performed with Trey Songz and Elle Varner.


While Miguel's excited to compete for song of the year, he's more thrilled about his sophomore album's nomination for best urban contemporary album, a new category that recognizes R&B albums with edge and multiple sounds.


"That's a huge complement to say that your entire body of work was the best of the year," he said of "Kaleidoscope Dream." ''That's the one that means the most to me. I'm really hoping maybe, just maybe."


Miguel, along with Gotye, Alabama Shakes and the Lumineers, is part of the pack of nominees who have showcased individuality and have marched to the beat of their own drum in today's music industry.


Though nominated albums by The Black Keys and Mumford & Sons are platinum-sellers, their songs are not regularly heard on Top 40 radio. Electronic and dance music, which has dominated radio airplay for a few years, were left out of the top awards this year. Also, One Direction — the boy band that released two top-selling albums this years and sold-out many arenas — was snubbed for best new artist.


Lionel Richie has one of the year's top-selling albums with his country collaboration collection, "Tuskegee," but he didn't earn any nominations. And Nicki Minaj, who released a gold-selling album this year and had a hit with "Starships," wasn't nominated for a single award.


Jay-Z and West dominated the rap categories, a familiar refrain at the Grammys. Nas scored four nominations, including best rap album for "Life Is Good." Jeff Bhasker, the producer behind fun.'s breakthrough album, also scored four nods.


Swift, who released her latest album, "Red," after the Grammy eligibility date, still scored three nominations, including two for "Safe & Sound" with The Civil Wars. Country acts were mainly left out of the major categories this year, though the genre usually has success at the Grammys. Aside from Swift's pop song competing for record of the year, there is 21-year-old Hunter Hayes, who is up for best new artist against fun., Ocean, Alabama Shakes and the Lumineers.


"I'm so proud to be, as you say, representing country music in the new artist category," said Hayes, who is also nominated for best country album and country solo performance. "I don't even feel worthy of saying that, but it's so cool for me to be able to say that."


Swift hosted the CBS special with LL Cool J and it featured performances by The Who and Maroon 5, who received multiple nominations.


The five-year-old nominations show spent its first year outside Los Angeles, making its debut in Nashville, Tenn., at the Bridgestone Arena. It marked the largest venue the show has been held in.


The 55th annual Grammy Awards take place Feb. 10 in Los Angeles.


___


Online:


http://www.grammys.com


___


AP Music Writer Chris Talbott and AP Writer Caitlin R. King in Nashville contributed to this report.


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Antismoking Outlays Drop Despite Tobacco Revenue





Faced with tight budgets, states have spent less on tobacco prevention over the past two years than in any period since the national tobacco settlement in 1998, despite record high revenues from the settlement and tobacco taxes, according to a report to be released on Thursday.







Paul J. Richards/Agence France-Presse — Getty Images

State antismoking spending is the lowest since the 1998 national tobacco settlement.







States are on track to collect a record $25.7 billion in tobacco taxes and settlement money in the current fiscal year, but they are set to spend less than 2 percent of that on prevention, according to the report, by the Campaign for Tobacco-Free Kids, which compiles the revenue data annually. The figures come from state appropriations for the fiscal year ending in June.


The settlement awarded states an estimated $246 billion over its first 25 years. It gave states complete discretion over the money, and many use it for programs unrelated to tobacco or to plug budget holes. Public health experts say it lacks a mechanism for ensuring that some portion of the money is set aside for tobacco prevention and cessation programs.


“There weren’t even gums, let alone teeth,” Timothy McAfee, the director of the Office on Smoking and Health at the Centers for Disease Control and Prevention, said, referring to the allocation of funds for tobacco prevention and cessation in the terms of the settlement.


Spending on tobacco prevention peaked in 2002 at $749 million, 63 percent above the level this year. After six years of declines, spending ticked up again in 2008, only to fall by 36 percent during the recession, the report said.


Tobacco use is the No. 1 cause of preventable death in the United States, killing more than 400,000 Americans every year, according to the C.D.C.


The report did not count federal money for smoking prevention, which Vince Willmore, the vice president for communications at the Campaign for Tobacco-Free Kids, estimated to be about $522 million for the past four fiscal years. The sum — about $130 million a year — was not enough to bring spending back to earlier levels.


The $500 million a year that states spend on tobacco prevention is a tiny fraction of the $8 billion a year that tobacco companies spend to market their products, according to a Federal Trade Commission report in September.


Nationally, 19 percent of adults smoke, down from over 40 percent in 1965. But rates remain high for less-educated Americans. Twenty-seven percent of Americans with only a high school diploma smoke, compared with just 8 percent of those with a college degree or higher, according to C.D.C. data from 2010. The highest rate — 34 percent — was among black men who did not graduate from high school.


“Smoking used to be the rich man’s habit,” said Danny McGoldrick, the vice president for research at the Campaign for Tobacco-Free Kids, “and now it’s decidedly a poor person’s behavior.”


Aggressive antismoking programs are the main tools that cities and states have to reach the demographic groups in which smoking rates are the highest, making money to finance them even more critical, Mr. McGoldrick said.


The decline in spending comes amid growing certainty among public health officials that antismoking programs, like help lines and counseling, actually work. California went from having a smoking rate above the national average 20 years ago to having the second-lowest rate in the country after modest but consistent spending on programs that help people quit and prevent children from starting, Dr. McAfee said.


An analysis by Washington State, cited in the report, found that it saved $5 in tobacco-related hospitalization costs for every $1 spent during the first 10 years of its program.


Budget cuts have eviscerated some of the most effective tobacco prevention programs, the report said. This year, state financing for North Carolina’s program has been eliminated. Washington State’s program has been cut by about 90 percent in recent years, and for the third year in a row, Ohio has not allocated any state money for what was once a successful program, the report said.


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Netflix buys exclusive rights to Disney movies









Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.


The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.


Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.





VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul


Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.


Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."


"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.


Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.


Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.


Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.


Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.


PHOTOS: Disney without Pixar


However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.


Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.


The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.


With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.


Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.


PHOTOS: Hollywood back lot moments


The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.


Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.





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Secure Communities is optional, Harris says









SAN FRANCISCO — California Atty. Gen. Kamala Harris told local law enforcement agencies Tuesday that they were not obligated to comply with a federal program whose stated goal is to deport illegal immigrants convicted of serious crimes.


It was Harris' first public assessment of Secure Communities. Under the program launched in 2008, all arrestees' fingerprints are sent to immigration officials, who may ask police and sheriff's departments to hold suspects for up to 48 hours after their scheduled release so they can be transferred to federal custody.


Although the intent may have been to improve public safety, Harris said that a review of data from March through June showed that 28% of those targeted for deportation in California as a result were not criminals. Those numbers, she noted, had changed little since U.S. Immigration and Customs Enforcement a year earlier pledged to reform the program to focus on the most serious offenders.





"Secure Communities has not held up to what it aspired to be," Harris said. The law enforcement bulletin she issued Tuesday stated that "immigration detainer requests are not mandatory, and each agency may make its own decision" about whether to honor them.


Harris said her office conducted its analysis after dozens of agencies across the state inquired about whether they were compelled to honor the ICE requests.


Some elected officials and local law enforcement have complained that — in addition to pulling in those found guilty of minor offenses or never convicted — Secure Communities had made illegal immigrants fearful of cooperating with police, even when they were the victims.


Harris, a former prosecutor, echoed that view Tuesday.


"I want that rape victim to be absolutely secure that if she waves down an officer in a car that she will be protected … and not fear that she's waving down an immigration officer," Harris said


While immigrant-rights advocates applauded her announcement, they said it did not go far enough. Allowing police chiefs and sheriffs to craft their own policies without state guidance, they said, could lead to disparate enforcement and enable racial profiling.


This "should eliminate the confusion among some sheriffs about the legal force of detainers," said Reshma Shamasunder, executive director of the California Immigrant Policy Center. "The only logical next step is a strong, statewide standard that limits these burdensome requests."


One attempt by legislators to do just that unraveled in October with Gov. Jerry Brown's veto of the Trust Act. The proposed law by Assemblyman Tom Ammiano (D-San Francisco) would have forbidden police departments to honor federal detainer requests except in cases in which defendants had been convicted of a serious or violent crime.


Ammiano on Monday reintroduced a modified version of the measure. Harris said she had opposed the bill's last iteration for going "too far" and had not seen the current version, but looked forward "to working with the governor and any of our lawmakers to take a look at what we can do to improve consistency."


"It's very difficult to create formulas for law enforcement," she said, noting that local agencies should have the freedom to determine which federal hold requests to honor. For example, she said, an inmate with five previous arrests for forcible rape but no convictions might still be deemed too great a risk for release.


Some law enforcement agencies, including the San Francisco Sheriff's Department and the Santa Clara County Sheriff's Department, have declined to comply with federal requests to hold non-serious offenders. Los Angeles Police Chief Charlie Beck followed suit last month, announcing that suspected illegal immigrants arrested in low-level crimes would no longer be turned over for possible deportation.


Los Angeles County Sheriff Lee Baca, who opposed the Trust Act, is among those who have argued that compliance with Secure Communities was mandatory.


On Tuesday, Los Angeles County sheriff's spokesman Steve Whitmore said that Harris' opinion was welcome guidance that may offer sheriffs more flexibility in how they deal with immigration detainees.


"The attorney general's opinion is going to be taken very seriously," Whitmore said. "The sheriff applauds it and is grateful for it." Baca, he added, has been working with the attorney general and the governor on the issue.


In a written response to Harris' announcement, a spokeswoman for Immigration and Customs Enforcement said the agency's top priorities were the deportation of criminals, recent border-crossers and repeat violators of immigration law.


"The federal government alone sets these priorities and places detainers on individuals arrested on criminal charges to ensure that dangerous criminal aliens and other priority individuals are not released from prisons and jails into our communities," the statement said.


lee.romney@latimes.com


cindy.chang@latimes.com


Romney reported from San Francisco and Chang from Los Angeles.





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Cashing in on Gangnam Style's YouTube fame


SEOUL, South Korea (AP) — As "Gangnam Style" gallops toward 1 billion views on YouTube, the first Asian pop artist to capture a massive global audience has gotten richer click by click. So too has his agent and his grandmother. But the money from music sales isn't flowing in from the rapper's homeland South Korea or elsewhere in Asia.


With one song, 34-year-old Park Jae-sang — better known as PSY — is set to become a millionaire from YouTube ads and iTunes downloads, underlining a shift in how money is being made in the music business. An even bigger dollop of cash will come from TV commercials.


From just those sources, PSY and his camp will rake in at least $7.9 million this year, according to an analysis by The Associated Press of publicly available information and industry estimates. But for online music sales in South Korea, he'll earn less than $60,000.


Here's how it works.


YOUTUBE


"Gangnam Style" with its catchy tune and much imitated horse-riding dance is the most-watched video on YouTube ever.


The viral video has clocked more than 880 million YouTube views since its July release, beating Justin Bieber's "Baby," which racked up more than 808 million views since February 2010. PSY's official channel on YouTube, which curates his songs and videos of his concerts, has nearly 1.3 billion views.


TubeMogul, a video ad buying platform, estimates that PSY and his agent YG Entertainment have raked in about $870,000 as their share of the revenue from ads that appear with YouTube videos. The Google Inc.-owned video service keeps approximately half.


PSY and YG Entertainment also earn money from views of videos that parody his songs.


Google detects videos that use copyrighted content. Artists can have the video removed or allow it to stay online and share ad revenue with YouTube. In the last week of September when "Gangnam Style" had around 300 million views, more than 33,000 videos were identified by the content identification system as using "Gangnam Style."


But since YouTube can be accessed from all over the world, wouldn't Asia be responsible for a significant chunk of the $870,000? The countries with the second and third-highest views of the video are Thailand and South Korea.


"Ads rates vary depending on which country the video is played. Developed countries have higher ad rates and developing countries lower," said Brian Suh, head of YouTube Partnership in Seoul.


And the country with the most views of "Gangnam Style?" The United States.


LEGAL DOWNLOADS, CDs


"Gangnam Style" has been downloaded 2.7 million times in the U.S. and has been the No. 1 or No. 2 seller for most weeks since its debut, according to Nielsen SoundScan.


The song sells for $1.29 on Apple's iTunes Store, the market leader in song downloads. Apple generally keeps about 30 percent of all sales, so the PSY camp could be due more than $2.4 million.


How much PSY keeps and how much goes to his managers, staff and record label is unclear. South Korean industry insiders said PSY likely gets 70 percent and YG Entertainment 30 percent for U.S. downloads.


But earnings from downloads in PSY's homeland are far from an embarrassment of riches.


South Koreans pay less than $10 a month for a subscription to a music service that allows them to download hundreds of songs or have unlimited access to a music streaming service. That makes the cost of a downloaded song about 10 cents on average. The average price for streaming a song is 0.2 cent.


PSY's cut for downloads is 14 percent. That falls to 7.5 percent for streamed songs. Yes, 7.5 percent of 0.2 cent. And that's before PSY's "Gangnam Style" co-composer take his share. The biggest cut goes to his agent and online retailers.


According to South Korea's national Gaon Chart, "Gangnam Style" was downloaded more than 3.6 million times and streamed around 40 million times as of November. That adds up to a little more than $61,000.


It's likely the fast fading music CD industry generated even smaller revenue. PSY's 9 percent cut from sales of 102,000 CDs in South Korea would earn him $50,000 or more, according to an estimate by Kim Dong-hyun, a senior manager at Korea Music Copyright Association.


As for many other parts of Asia, illegal downloads and pirated CDS are so pervasive that only a small minority are willing to pay up for the legal versions.


TV COMMERCIALS


PSY has been jetting around the world, performing on shows such as "The X-Factor Australia" and NBC's "Today Show," but such programs usually cover travel costs and not much else, said Gary Bongiovanni, editor-in-chief of concert trade magazine Pollstar.


It is television commercials that are the big money spinner for the most successful of South Korea's K-pop stars. PSY has been popping up in TV commercials in South Korea for top brands such as Samsung Electronics and mobile carrier LG Uplus.


Chung Yu-seok, an analyst at Kyobo Securities, estimates PSY's commercial deals would amount to 5 billion won ($4.6 million) this year.


The money is cool. The products not so much. PSY is now the face of a new Samsung refrigerator and a major noodle company.


THE FAMILY


A fact little known outside South Korea is that PSY's father, uncle and grandmother own a combined 30 percent of DI Corp., a company which makes equipment that semiconductor companies use to make computer chips.


It's a stretch to plausibly explain how the success of "Gangnam Style" will boost DI's profits but that doesn't matter to the South Korean stock market. Perhaps inspired by the pure power of pop, DI shares surged eightfold from July after PSY's hit reached No. 2 on the Billboard Hot 100 and No. 1 on the U.K. singles chart.


It was time to cash in for PSY's grandmother, who sold 5,378 shares for about $65,000.


The share price has fallen since then but is still about double what it was before the release of "Gangnam Style."


PSY's agent YG Entertainment has also done well. Its share price is up about 30 percent since mid-July. The value of CEO Yang Hyun-suk's stake has swelled to about $200 million, making him among the richest in South Korea's entertainment industry.


THE FUTURE


The question now hanging over PSY is whether he will replicate the blockbuster success of "Gangnam Style" or end up remembered as a one-hit wonder.


"When this slows down, what comes next for PSY?" said Nielsen analytics vice president David Bakula. "Is it the evolution of a new musical style, something audiences are going to be craving en masse, or is it something that's just a passing fancy?"


Analysts say "Gangnam Style" alone will not be enough to propel PSY into the ranks of musicians such as Adele and may not even be enough to make him the top-grossing K-pop star. That will depend largely on his upcoming album, which PSY said will be released in March.


___


Ryan Nakashima contributed to this report from Los Angeles.


Youkyung Lee can be reached via Twitter: www.twitter.com/YKLeeAP


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The New Old Age Blog: For the Old, Less Sense of Whom to Trust

There’s a reason so many older people fall for financial scams, new research suggests. They don’t respond as readily to visual cues that suggest a person might be untrustworthy, and their brains don’t send out as many warning signals that ignite a danger ahead gut response.

The research, published Monday in the Proceedings of the National Academy of Sciences, is the first to show that older adults’ vulnerability to fraud may be rooted in age-related neurological changes.

Specifically, researchers from the University of California, Los Angeles, found that an area in the brain known as the anterior insula was muted when older people looked at photographs of suspicious-looking individuals. This part of the brain activates gut-level feelings that help individuals interpret the reliability of other people and assess potential risks and rewards associated with social interactions.

In one part of the U.C.L.A. study, both younger and older adults were asked to evaluate the trustworthiness of people portrayed in 60 photographs while undergoing brain scans. When the younger adults (21 altogether, from 23 to 46 years of age) labeled a person “not trustworthy,” their anterior insulas lit up. But this wasn’t true for older adults (23 altogether, age 55 to 80).

“The warning signals that convey a sense of potential danger to younger adults just don’t seem to be there for older adults,” said Shelley Taylor, the lead researcher and a psychology professor at U.C.L.A.

In another part of the study, researchers asked 119 older adults (55 to 84 years old) and 24 younger adults (age 20 to 42) to rate people in photographs as trustworthy, neutral or untrustworthy. Signs they were potentially untrustworthy included people with insincere smiles, averted gazes and postures that “leaned away” rather than toward the camera, among others, Dr. Taylor said.

Older adults were equally adept at identifying people judged to be trustworthy or neutral, but much more likely to miss signs of those who may be untrustworthy and view suspicious-looking people as approachable, the study found.

“We believe what’s going on is that older adults have a bias toward positive emotional experience and this keeps them from recognizing negative cues,” Dr. Taylor said.

This so-called “positivity effect” has been documented through research by Laura Carstensen, a professor of psychology and public policy at Stanford University, and it explains why older adults are, on the whole, happier than younger adults.

Asked to comment about the new study, Ms. Carstensen said in an e-mail that it was “very well done,” and observed that for older adults, “there are likely many benefits of looking on the bright side. However, there are likely some contexts where looking away from the negative and focusing on the positive is not good,” including financial scams and fraud.

Alexander Todorov, a professor of psychology at Princeton University, called the findings “interesting,” but warned that “there is an implicit assumption that these trustworthiness evaluations based on facial appearance are accurate. This is far from clear.”

Dr. Taylor became acutely aware of financial fraud practiced on the elderly almost 20 years ago when her elderly father handed $17,000 to two men who approached him on the street and walked with him to his bank.

“I got descriptions of the two men from someone who lived nearby — one had few teeth, both were dressed in a slovenly manner, and they’d been seen sleeping in doorways and were using the drug rehab center nearby,” the professor explained in an e-mail.

In other words, they would have been viewed skeptically by most people, but weren’t seen in that light by Dr. Taylor’s father.

Statistics show that financial exploitation of the elderly is on the rise. According to a study published last year by the MetLife Mature Market Institute and the National Committee for the Prevention of Elder Abuse, elder financial abuse — everything from fraudulent sweepstakes to bank accounts emptied out by guardians — totaled $2.9 billion in 2010, a 12 percent increase from only two years before.

Earlier this year, the Government Accountability Office weighed in on the issue, noting the inadequacy of existing safeguards and calling for a new national strategy to address the problem.

On Tuesday my colleague Paula Span wrote about a just-published consumer guide, “Protect Your Pocketbook,” intended for older adults and families who wanted to understand what put them at risk, how to prevent fraud, and where to turn for help.

As for Dr. Taylor, she advises that seniors never agree on the spot to a phone offer or a pitch from a door-to-door salesman. “Either hang up or wait and get someone else involved in your life to evaluate what’s being presented,” she said.

With financial fraud, almost half the time seniors end up being taken in by a caretaker or someone posing as a friend. “Make absolutely sure that you’ve carefully checked out the people taking care of an older relative,” or any “surprising new friend” that you’ve never heard of before that’s now on the scene, she tells family members.

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Netflix buys exclusive rights to Disney movies









Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.


The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.


Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.





VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul


Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.


Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."


"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.


Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.


Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.


Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.


Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.


PHOTOS: Disney without Pixar


However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.


Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.


The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.


With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.


Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.


PHOTOS: Hollywood back lot moments


The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.


Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.





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Mexico port picks up slack from strike at L.A., Long Beach complex









ENSENADA — This sluggish port city is coming alive.


Standing atop a pier with a hulking cargo ship behind him, dock manager Rogelio Valenzuela Gonzalez motioned Monday toward four cranes as they plucked metal containers from the vessel.


Operators swiveled the cranes toward a line of flatbed trucks. Supervisors in reflective vests and hard hats watched from below, using two-way radios to dispatch trucks as they filled up.





Not even during the peak fall shipping season is this port so busy.


But a strike that has effectively shut down rival ports in Los Angeles and Long Beach has diverted ships south of the border. It has become a windfall for the port located about 50 miles from the border, its workers and the region's struggling economy.


"It's good for the workers' families," said Gonzalez, adding that the extra work will pay for additional Christmas presents. "We all know it's temporary, but it definitely helps out at the end of the year."


The Southern California strike ended its first week Monday, with negotiations continuing but no signs of an immediate resolution.


The strike by the International Longshore and Warehouse Union Local 63 Office Clerical Unit, which handles paperwork for incoming and outgoing ships, has crippled the nation's two busiest cargo ports.


The dispute centers on the charge by the union that employers — large shipping lines and terminal operators — have steadily outsourced jobs through attrition. The union says the employers have transferred work from higher-paid union members to lower-paid employees in other states and countries.


The employers dispute that claim, saying they've offered the workers full job security and generous wage and pension increases. Though the union has only 800 members, the 10,000-member dockworkers union is honoring the picket lines.


Economists estimate the effect of the work stoppage at $1 billion a day in forfeited worker pay, missing revenue for truckers and other businesses and the value of the cargo that hasn't been able to reach its destination. The two ports are directly responsible for an estimated 595,000 jobs in Southern California.


But while thousands of Southern California workers sit idle in Los Angeles and Long Beach, the walkout is giving Ensenada a hoped-for chance to showcase itself.


Collectively, Los Angeles and Long Beach handle 100 times more cargo each year than Ensenada.


Long seen as a backup port, Ensenada is eager to win more business from shippers inconvenienced by the second major work dispute at the L.A. and Long Beach ports in a decade.


"It's a great opportunity to show that the Port of Ensenada presents an alternative method for bringing in products from Asia and the Pacific Rim," said Kenn Morris, president of Crossborder Group, a San Diego consulting firm. "The Ensenada port can really show itself off as being something a lot of people hadn't expected."


Uncertain how long the strike may last, retailers have scrambled to find alternate ways to get their products onto shelves. Given their typically thin profit margins, retailers are concerned about the added shipping costs.


"These blockages are dead-weight losses to the system," said Carl Voigt, an international business professor at USC. "They raise costs for everybody. Everybody's goods and services are more expensive."


Ensenada is used to seeing the occasional cruise ship and maybe half a dozen cargo ships a week. Two ships have made unplanned dockings and unloaded cargo here in the last week. Three others have docked in Manzanillo, a Mexican port city 1,200 miles to the south of Ensenada.


Altogether, 17 ships bound for the L.A. or Long Beach port have been diverted elsewhere, including nine to Oakland, one to Mazatlan, Mexico, and one to Panama.


In Ensenada, dockworkers made quick work unloading 100 cargo containers from the Maersk Merlion. The giant cargo vessel was diverted over the weekend and docked early Monday morning.


Since late last week, Ensenada has been preparing for a hoped-for influx of diverted ships. The port has 200 dockworkers when operating at capacity, and an additional hundred clerical and customs workers.


Equipment is on standby. Workers are at the ready. And trucking lines have been placed on alert that cargo may need to be hauled.


"It's hard to guess how many ships we'll receive, but we are preparing for more," said Juan Carlos Ochoa, the port's trade development manager.


Ensenada is still handicapped by longer-standing obstacles, primarily its lack of railway access to move goods.


And for now, the cargo unloaded from the Maersk Merlion will sit at the port as the shipping line weighs whether to move it by truck to its final destination or have another ship pick up the containers at a later date.


The strike "is an extraordinary situation," Gonzalez said. "But it'll show our clients that this port is a good option. It's efficient, reliable and secure."


ricardo.lopez2@latimes.com


walter.hamilton@latimes.com


Lopez reported from Ensenada, and Hamilton from Los Angeles.





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Court upholds $319M verdict in 'Millionaire' case


LOS ANGELES (AP) — A federal appeals court on Monday upheld a $319 million verdict over profits from the game show "Who Wants to Be a Millionaire" and rejected Walt Disney Co.'s request for a new trial.


A jury decided in 2010 that Disney hid the show's profits from its creators, London-based Celador International. The ruling Monday by a three-judge panel of the 9th U.S. Circuit Court of Appeals found no issues with the verdict or with a judge's rulings in the case.


"I am pleased that justice has been done," Celador Chairman Paul Smith said in a statement.


Disney did not immediately comment on the decision.


The ruling comes more than two years after the jury ruled in Celador's favor after a lengthy trial that featured testimony from several top Disney executives. The company sued in 2004, claiming Disney was using creative accounting to hide profits from the show, which first ran in the United States from August 1999 to May 2002 and was a huge hit for ABC.


The jury found that Celador was owed $269.2 million, and a judge later added $50 million in interest to the judgment.


The appeals court determined the verdict was not "grossly excessive or monstrous" and that it was not based on speculation or guesswork.


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Software Programs Help Doctors Diagnose, but Can’t Replace Them





SAN FRANCISCO — The man on stage had his audience of 600 mesmerized. Over the course of 45 minutes, the tension grew. Finally, the moment of truth arrived, and the room was silent with anticipation.




At last he spoke. “Lymphoma with secondary hemophagocytic syndrome,” he said. The crowd erupted in applause.


Professionals in every field revere their superstars, and in medicine the best diagnosticians are held in particularly high esteem. Dr. Gurpreet Dhaliwal, 39, a self-effacing associate professor of clinical medicine at the University of California, San Francisco, is considered one of the most skillful clinical diagnosticians in practice today.


The case Dr. Dhaliwal was presented, at a medical  conference last year, began with information that could have described hundreds of diseases: the patient had intermittent fevers, joint pain, and weight and appetite loss.


To observe him at work is like watching Steven Spielberg tackle a script or Rory McIlroy a golf course. He was given new information bit by bit — lab, imaging and biopsy results. Over the course of the session, he drew on an encyclopedic familiarity with thousands of syndromes. He deftly dismissed red herrings while picking up on clues that others might ignore, gradually homing in on the accurate diagnosis.


Just how special is Dr. Dhaliwal’s talent? More to the point, what can he do that a computer cannot? Will a computer ever successfully stand in for a skill that is based not simply on a vast fund of knowledge but also on more intangible factors like intuition?


The history of computer-assisted diagnostics is long and rich. In the 1970s, researchers at the University of Pittsburgh developed software to diagnose complex problems in general internal medicine; the project eventually resulted in a commercial program called Quick Medical Reference. Since the 1980s, Massachusetts General Hospital has been developing and refining DXplain, a program that provides a ranked list of clinical diagnoses from a set of symptoms and laboratory data.


And I.B.M., on the heels of its triumph last year with Watson, the Jeopardy-playing computer, is working on Watson for Healthcare.


In some ways, Dr. Dhaliwal’s diagnostic method is similar to that of another I.B.M. project: the Deep Blue chess program, which in 1996 trounced Garry Kasparov, the world’s best player at the time, to claim an unambiguous victory in the computer’s relentless march into the human domain.


Although lacking consciousness and a human’s intuition, Deep Blue had millions of moves memorized and could analyze as many each second. Dr. Dhaliwal does the diagnostic equivalent, though at human speed.


Since medical school, he has been an insatiable reader of case reports in medical journals, and case conferences from other hospitals. At work he occasionally uses a diagnostic checklist program called Isabel, just to make certain he hasn’t forgotten something. But the program has yet to offer a diagnosis that Dr. Dhaliwal missed.


Dr. Dhaliwal regularly receives cases from physicians who are stumped by a set of symptoms. At medical conferences, he is presented with one vexingly difficult case and is given 45 minutes to solve it. It is a medical high-wire act; doctors in the audience squirm as the set of facts gets more obscure and all the diagnoses they were considering are ruled out. After absorbing and processing scores of details, Dr. Dhaliwal must commit to a diagnosis. More often than not, he is right.


When working on a difficult case in front of an audience, Dr. Dhaliwal puts his entire thought process on display, with the goal of “elevating the stature of thinking,” he said. He believes this is becoming more important because physicians are being assessed on whether they gave the right medicine to a patient, or remembered to order a certain test.


Without such emphasis, physicians and training programs might forget the importance of having smart, thoughtful doctors. “Because in medicine,” Dr. Dhaliwal said, “thinking is our most important procedure.”


He added: “Getting better at diagnosis isn’t about figuring out if someone has one rare disease versus another. Getting better at diagnosis is as important to patient quality and safety as reducing medication errors, or eliminating wrong site surgery.”


Clinical Precision


Dr. Dhaliwal does half his clinical work on the wards of the San Francisco V. A. Medical Center, and the other half in its emergency department, where he often puzzles through multiple mysteries at a time.


One recent afternoon in the E.R., he was treating a 66-year-old man who was mentally unstable and uncooperative. He complained of hip pain, but routine lab work revealed that his kidneys weren’t working and his potassium was rising to a dangerous level, putting him in danger of an arrhythmia that could kill him — perhaps within hours. An ultrasound showed that his bladder was blocked.


There was work to be done: drain the bladder, correct the potassium level. It would have been easy to dismiss the hip pain as a distraction; it didn’t easily fit the picture. But Dr. Dhaliwal’s instinct is to hew to the ancient rule that physicians should try to come to a unifying diagnosis. In the end, everything — including the hip pain — was traced to metastatic prostate cancer.


“Things can shift very quickly in the emergency room,” Dr. Dhaliwal said. “One challenge of this, whether you use a computer or your brain, is deciding what’s signal and what’s noise.” Much of the time, it is his intuition that helps figure out which is which.


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A new brand of cyber security: hacking the hackers









WASHINGTON — As head of the FBI's cyber crimes division, Shawn Henry often had to deal with exasperated company executives after his agents informed them that their networks had been hacked and their secrets pilfered.


"By whom?" the company officials would ask. "What have they taken? Where did it go?"


"Sorry," Henry's agents had to reply, "that's classified."





Even though the FBI in many cases had evidence the attacker had been backed by a foreign intelligence agency, agents couldn't disclose it because the U.S. government believed doing so could compromise top-secret sources and methods.


Henry, 50, decided this year that such a dichotomy shouldn't put companies at such a disadvantage. So after 24 years of service, he left the FBI to become president of CrowdStrike, an Internet security start-up in Irvine.


His new mission: to make life difficult for hackers trying to attack American institutions.


CrowdStrike is at the forefront of a new business model for cyber security, one that identifies sophisticated foreign attackers trying to steal U.S. intellectual property and uses the attackers' own techniques and vulnerabilities to thwart them.


The firm is marketing itself as a private cyber intelligence agency, staking out networks to catch infiltrators, assembling dossiers on hackers and fooling intruders into stealing bogus data.


In the process, the firm has waded into a debate about how far companies should go in defending themselves from cyber attack.


"The traditional way of trying to defend your network is just not going to cut it. You have to do something different," said Irving Lachow, who directs the Program on Technology and National Security at the Center for a New American Security.


"One way is to engage the adversary. CrowdStrike represents a new breed of company that is focused on doing exactly that," he said.


When somebody is shooting at you, "you don't ask, 'Is that a 9-millimeter or a .45,'" said CrowdStrike Chief Executive George Kurtz. "You ask: 'Who is shooting at me and why are they shooting at me?'"


The attackers often breach company networks using a tactic known as spear phishing, a practice that gets an employee to download a malware file by disguising it, for example, in an email purporting to be from someone the worker knows. Firewalls and anti-virus software are almost useless against such techniques.


So CrowdStrike uses decoys to lure hackers into a controlled environment so investigators can watch and trace the attack. Sometimes the company feeds hackers false information, as in a case recently when a client was entering negotiations in China and expected to be hacked.


CrowdStrike, which employs Chinese linguists and former U.S. government cyber warriors, also has identified Chinese hackers using clues in their malware. It then profiles them — complete with real names and photos — using information gathered from a variety of sources.


That has helped the company, for example, identify a Chinese hacker who targets financial institutions and tends to seek merger and acquisition information. The company assigned the hacker a code name, Capital Panda, in the profile.


Profiles enable a more targeted defense by helping CrowdStrike know when an attacker is likely to strike, how he communicates, what malware he uses and how he tries to take the stolen data.


Kurtz, a former chief technology officer at security firm McAfee Inc., started CrowdStrike in February with fellow McAfee alum Dmitri Alperovitch and $26 million in financing from private equity firm Warburg Pincus.


Alperovitch rose to prominence last year when he wrote a white paper on what he called Operation Shady Rat, a series of state-sponsored cyber penetrations of more than 70 government agencies, companies and institutions. He didn't say publicly the intrusions came from China, but that was obvious to other experts.


China denies engaging in cyber espionage. U.S. intelligence officials said hackers sponsored by China and, to a lesser extent, Russia, are responsible for what Gen. Keith B. Alexander, director of the National Security Agency, has called "the greatest transfer of wealth in history" by siphoning bid documents, formulas, business plans and other intellectual property from Western companies.





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For dropouts, a way to drop back in









The corner of 4th and Gless streets in East Los Angeles, once a center of prostitution and drugs, now houses a place of soaring dreams.


Inside the gleaming Boyle Heights Technology Youth Center, a classroom of young people battered by hard luck or bad choices is filled with quiet, focused energy.


Marcos Avila, a 19-year-old who was kicked out of high school for fighting, is learning to compare and contrast two essays. Vincent Guzman, 18, who left school after his brother was killed in a drive-by shooting, is puzzling over two-step algebraic problems.





Until recently, the two men were part of a growing epidemic of young people who have dropped out of school, can't find steady work and are disconnected from any path to better lives. According to a study released Monday, the number of Californians ages 16 to 24 who neither work nor attend school has grown to 868,000, an increase of 35% since 2000.


The study by two children's advocacy organizations, the Annie E. Casey Foundation and Children Now, found that the recession had boosted the rates of these young people — particularly in African American, Latino and low-income communities. Many of them were caught in a squeeze between fewer jobs and a demand for higher skills, the report said.


Among African Americans, 45% of young people don't work or attend school; the figure is 39% for Latinos, 28% for whites and 26% for Asians. Young people whose families earn less than $20,000 a year are three times more likely to be out of work or school than those in higher-income families.


"These numbers are eye-opening and unacceptable," said Ted Lempert, president of Children Now, an Oakland-based nonpartisan policy and advocacy organization. "California's next generation is getting off on the wrong start and it's a real precarious situation for their future and ours."


The report calls for more funding for young people, saying federal money is primarily aimed at adult employment programs. The report also promotes a shift from piecemeal programs to a comprehensive effort to get young people back on track through integrated education, training and support services across city, county and school systems. Strong relationships with caring adults are also key, the report said.


That's exactly the approach the city is taking in its new program in Boyle Heights and elsewhere, said Robert Sainz, assistant general manager of the Los Angeles Community Development Department.


The $13-million federally funded program features an unusual partnership between the city and Los Angeles Unified School District. The city has long offered job training programs for dropouts, commissioning a study seven years ago that found nearly 20% of 492,000 Los Angeles residents ages 16 to 24 had left school and weren't working. A follow-up study in 2009 found the problem had not diminished.


"You had basically a small city of people neither at school or work," Sainz said. "When you have a group not progressing socially or academically, you're not going to be developing a work pool of the future."


The new program expects to reach 10,000 young people in a year.


As national attention honed in on the dropout problem, Sainz and his team visited several cities in search of effective programs and decided to shift the majority of their federal workforce development money to this group. But a key issue was trying to find the dropouts, since their names, addresses and phone numbers are confidential school records.


That's when the city and Los Angeles Unified agreed to team up and share the $120,000 annual cost of placing a school counselor in each of the city's 13 youth centers that are hosting the program. With access to school records, the pupil services and attendance counselors can hunt down dropouts and give them an academic assessment on how many credits they need to earn a high school diploma or equivalent credential known as a GED.


That's how Maria Ocampo, 18, ended up at the Boyle Heights tech center. The bright, articulate student hails from a Mexican immigrant family of teachers and nurses, but dropped out of Roosevelt High School in May to take care of her ill mother.


In August, Los Angeles Unified counselor Sara Puma tracked her down — just in time to join the program's first class in September. A strength of the program, students said, is the supportive staff, including a social worker who gives them a mental health assessment and case workers who keep them on track.


Case worker Marie Landeros, for instance, found one young charge who missed class and sternly told him that sleeping in "isn't going to work for me" because the center is paying for his education; he now attends and calls if he's going to be late.


Landeros, who grew up in Boyle Heights, keeps her door open and candy jar filled to develop the trusting relationships that she and others say are important to their success with students.


Ocampo is completing course work for her English composition class and expects to earn her diploma in June after finishing health, algebra and history classes. She said it was easier to focus at the center, where the curriculum is self-paced and there is no peer pressure to ditch class.


But academics are not the program's only benefit. The center also helps students find internships and jobs. Ocampo, for instance, found an internship with the California Democratic Party, where she worked on the successful Proposition 30 school tax initiative. Along the way she met a bevy of elected officials, including former President Clinton, Los Angeles Mayor Antonio Villaraigosa and Los Angeles school board President Monica Garcia.


The experience has given her a new dream: attend Mills College in Oakland and eventually run for elective office.


"This program helps you achieve what you really want," she said.


Avila, who was kicked out of two high schools and left a third, has traded aimless days of video games, basketball and TV for a path to a diploma and what he hopes will be a career as a video game designer. He said his brother told him about the program after hearing about it in a firefighting training class.


He said he was known for his "fists of fury" in high school, but not anymore. "I've cooled down and realize what's more important is school," he said.


Guzman hopes to earn his GED and dreams of feeding his passion for cars as a Mercedes-Benz technician.


Other former dropouts say they want to become electricians, filmmakers, artists.


"A lot of people look at dropout kids as throwaways, but we have the fundamental belief that they can succeed," Sainz said.


teresa.watanabe@latimes.com





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