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Today’s headlines
Kane's accused of false advertising
The furniture store first refuses a settlement by the Attorney's General Office, then sues that same agency.

Earnings fears lead to drop in stocks
Second-quarter reports are due out later this month, and investors' expectations are not very high.

Business today
IRS, JUSTICE DEPARTMENT SUE ACCOUNTING FIRMS: The government filed federal lawsuits Tuesday seeking documents from two major accounting firms detailing tax shelters they have promoted, part of a broader crackdown on arrangements done solely to escape taxes. The Justice Department, on behalf of the Internal Revenue Service, filed the lawsuits in Washington against KPMG LLP and in Chicago against BDO Seidman LLP. Government lawyers contend neither firm gave the IRS the documents it seeks for its investigation of tax shelters.

Robert Trigaux
Shades of gray dim Bush's speech
Heard the latest flap over the director of a public corporation who sold his shares for $848,560 just before the company reported heavy losses? This same director served on the company's audit committee, which okayed how to count the sale of a subsidiary. But the SEC later forced the company to restate its books to reflect $10-million in losses hidden by that sale.