Business: Business digest

Business digest

Compiled from Times wires

AMERICAN EXPRESS SETTLES BIAS SUIT: American Express Co. has agreed to a $31-million settlement of a sex and age discrimination suit filed by 17 women who say they were unfairly denied promotions and pay. The plaintiffs' attorney says the agreement changes the way American Express hires and promotes employees. The deal, which must be approved by a federal judge, also would require American Express Financial Advisors to begin diversity training and install a diversity officer. It also requires the company to make sure 32 percent of new hires for its financial adviser team are women. Company spokeswoman Luz Marie Davis confirmed the agreement but denied the allegations. She said American Express is proud of its hiring and promotion record and settled the suit to avoid expensive litigation.

BOEING TO CUT SATELLITE JOBS: Boeing Co. plans to cut as many as 1,050 jobs at its California satellite-making unit in El Segundo and Torrance because of falling demand from telecommunications companies. Boeing expects to fire up to 700 workers and offer transfers to 350 more. The reductions represent 11 percent of the unit's staff. Boeing said more cuts at the unit are possible.

IRS CLARIFIES FREQUENT FLIER STANCE: Business travelers who use their frequent flier miles for personal trips won't be taxed by the IRS. Seeking to clear up confusion, the Internal Revenue Service said it will not assert that frequent flier miles accrued on business or official travel should be counted as taxable income when used for personal reasons. The IRS hadn't attempted an enforcement program on frequent flier miles or similar benefits from business trips because of valuation questions and other difficulties.

POWER PLANT APPROVAL CALLED PROPER: The state Supreme Court ruled unanimously that the Public Service Commission acted properly in approving Florida Power's plan to build the $198-million Hines 2 power plant in Polk County. Panda Energy International, an independent power producer, contended it could provide the energy for less. Panda also said Florida Power ratepayers won't need that much additional power and that the St. Petersburg utility really planned to sell part of the output on the wholesale market. But the court found the PSC "properly applied the criteria" in ruling the new plant was needed.

FINGERHUT MAY HAVE BUYER: A group led by turnaround specialist Peter Lytle has signed a non-binding letter of intent to purchase Federated Department Stores' troubled catalog company Fingerhut. Federated said the deal with Business Development Group Acquisitions of Wayzata, Minn., is subject to additional investigation by BDGA and the group's ability to obtain the necessary financing. The Cincinnati department store chain has said it would shut Fingerhut and lay off its 6,000 employees in Minnesota and Tennessee if it couldn't find a buyer. Last year, Fingerhut closed two call centers in Tampa, eliminating 950 jobs.

UNITEDHEALTH ACCUSED OF OVERCHARGES: UnitedHealth Group faces a class-action lawsuit that claims it overcharged customers for prescription drugs. The suit accuses UnitedHealth of collecting full co-payments for drugs purchased by health plan members even when the cost of the drug was lower than the co-payment. The health insurer, second largest in the nation with 16.6-million members, denied wrongdoing.

UNITED TO BRING BACK 1,200 ATTENDANTS: United Airlines said it's recalling another 1,200 of the 2,700 flight attendants it laid off last fall, citing its plan to add flights in April partly because of stronger customer demand. That brings to 2,000 the number of flight attendants recalled in three weeks. United said this month it would add 127 flights to its daily schedule -- currently about 1,700 flights -- recall some flight attendants and furlough fewer pilots. "Slowly people are returning to air travel," United senior vice president Larry De Shon said, but noted "we still have a long road ahead of us."