Bank of America settles securities investigations

Bank of America Corp. agreed to settle investigations into its auction-rate securities sales with the Securities and Exchange Commission, New York Attorney General Andrew M. Cuomo, and other state regulators. The deal formalizes the same terms the banking giant reached with the Massachusetts Securities Division last month - to buy back up to $4.7 billion worth of investments from 5,500 customers. Bank of America also agreed to pay the states fines of $50 million and make an additional $5 billion available to help large businesses and institutional investors exit auction-rate securities. Separately, the SEC said it has an agreement in principle with RBC Capital Markets Corp. to buy back $850 million in auction-rate securities from 2,200 customers. RBC will pay the states fines of $9.8 million. The settlements conclude investigations into allegations the firms misled clients by falsely assuring them these investments were as safe and liquid as cash. (Beth Healy)

Attorney General Martha Coakley says Massachusetts will receive more than $1.6 million as its share of a multistate settlement with Eli Lilly & Co. The drug maker agreed to pay 32 states and the District of Columbia a total of $62 million to resolve allegations of improper marketing of its top-selling antipsychotic drug, Zyprexa. Coakley's office said the money will be used for consumer education programs and to pay legal fees. (AP)

Boston Scientific Corp., the top seller of artery-opening heart stents, said it expects to record a pretax operating charge of $334 million, or 18 cents a share after taxes, in the third quarter as a result of a ruling in favor of Johnson & Johnson in a patent case. The Natick company also will record a pretax gain of $250 million, or 12 cents a share after taxes, as a result of a milestone payment from Abbott Laboratories, Boston Scientific said. The company will also take an after-tax charge of 8 to 10 cents a share for impairment on intangible assets and a gain of 1 cent a share on liquidation of its investments when it reports third-quarter earnings. Shares fell $1.01, or 10.1 percent, to $8.95. (Bloomberg)

The Army has awarded two contracts worth $66 million to General Dynamics for MK19 grenade launchers to be built in Saco, Maine. General Dynamics Armament and Technical Products says deliveries of the weapons are expected to begin next year and extend through late 2012. General Dynamics' unit plant in Saco has produced 36,000 MK19 systems since 1984. The division's engineering center is in Burlington, Vt. (AP)

Walgreen Co. withdrew its $2.8 billion proposal to acquire Longs Drug Stores Corp., saying it wasn't in the best interest of shareholders at both companies to leave the situation unresolved "for an extended period of time." Longs, which agreed to a $2.7 billion takeover by CVS Caremark Corp., had declined to enter discussions with Walgreen over the higher bid. The "deterioration of the national economic outlook over the past few weeks" also led to its decision to abandon the Sept. 12 offer, Walgreen said. Woonsocket, R.I.-based CVS, the second-biggest US drugstore chain, said Aug. 13 that it had agreed to pay $71.50 a share for Longs. (Bloomberg)

General Mills Inc. is removing monosodium glutamate from all 80 of its Progresso soups, responding to competitors' advertising. The company said 26 Progresso soups are already MSG free and it plans to remove the additive from its other Progresso varieties. MSG is added to soups, stocks, potato chips, instant noodles, and other foods to add a savory taste. General Mills said it will make the reformulation after Campbell Soup Co. launched an ad campaign for Select Harvest soup that criticized Progresso's inclusion of MSG in recipes. (AP)

The New York Times's website will absorb a sister site for the International Herald Tribune in the spring. Visitors outside the United States will get a global version of the Times website whether they type in NYTimes.com or IHT.com. A cobranded global home page and section fronts for business, travel, culture, sports, style, and opinion will highlight stories of special interest to international readers. US visitors will be able to choose the website's global version. (AP)