Retail sales pick up in January after lackluster holidays

Retailers got a much-needed boost in January after a lackluster holiday shopping season, using post-holiday clearance deals to lure cagey consumers worried about higher payroll taxes.

H&M's coupon for 30% off this week drew Toluca Lake payroll accountant Katy Genovese to the store at the Americana at Brand shopping center. She walked out with a $20 dress and $30 in shirts.

Genovese, 57, and her shopping partner, Lori Berlanga, 45, said they spent January hitting up malls for bargains that are increasingly plentiful and longer-lasting. Instead of targeted discounts on specific items, retailers are offering more storewide deals with deeper markdowns.

"We celebrated Christmas after Christmas to hit all the sales," said Berlanga, a Studio City film production coordinator. "Stores are being much more competitive with each other."

Quiz: Do you know your premium jeans?

For a cross section of major retailers, that translated into a 5.8% sales upswing last month from January 2012. Analysts had expected a 3.5% boost.

The data from Thomson Reuters feature a roundup of 18 retailers' same-store sales, which account for revenue at retail locations operating for at least a year to strip out the fluctuations of recent openings and closings.

Some experts say the figures represent at most a snapshot of retail health because the report doesn't include behemoths such as Wal-Mart Stores Inc. and Best Buy Co. And more chains, including Macy's Inc. and Target Corp., are planning to ditch their monthly sales reports to focus on quarterly earnings.

The numbers that retailers did disclose surprised analysts with their strength, given the economic strain weighing down shoppers.

A higher payroll tax went into effect last month. Consumer confidence slid to its lowest level since November 2011, according to the Conference Board last week.

"Our guests continue to shop with discipline in the face of a slow economic recovery and new pressures," Target Chief Executive Gregg Steinhafel said.

The discount chain still enjoyed a 3.1% increase in same-store sales, which he attributed to holiday inventory clearance.

"The good news is that consumers are still showing resilience despite the increase in taxes," said Marshal Cohen, an analyst at the research firm NPD Group. "The bad news is that a lot of that business came at a discount as pent-up demand from December rolled over into January."

Department stores were the best-performing retail segment, bumping up 8.1% in January, according to a separate report from Retail Metrics Inc. analyst Ken Perkins.

Macy's was so heartened by its 11.7% advance in January that it raised its earnings forecast for its fiscal fourth quarter, which it will report Feb. 26. The retailer, which also owns the Bloomingdale's brand, predicts fourth-quarter earnings of $1.94 to $1.99 a share, up from its earlier projection of $1.91 to $1.96.

Perkins deemed teen apparel sellers the worst in show, with the sector taking a 2.2% dip. Wet Seal Inc., which is based in Foothill Ranch, suffered a 9.4% same-store sales slump.

Anthropologie and Free People owner Urban Outfitters Inc. said independently that comparable sales from its stores were flat for its fourth quarter, which ended Jan. 31.

Some shoppers spent January in hibernation.

North Hollywood actor Topher Johnson, 22, said he "got carried away" hunting through Black Friday sales in November and spending some $600 on Christmas presents. Now, with his tax refund coming and work starting to pick up after the holiday slump, he said he's slowing ratcheting up his purchases.

"January, though, was only food, gas and random stuff," he said.

The persistent cold weather was a mixed blessing, Perkins said. Sales of outerwear, which had lagged during the warm December, perked up.

But once after-holiday sales waned, the frigid temperatures caused shopper traffic to slow toward the end of the month, he said. Moving into February, the chilly climes could dampen sales of home improvement products and lighter apparel starting to roll out for spring.

"Valentine's Day and Presidents Day are blips on the retail radar screen," Perkins said. "There really aren't any spending catalysts until the weather warms up."

The trade group International Council of Shopping Centers, in yet another same-store sales report, said that chain retailers in the U.S. — including drugstores buoyed by flu shots — posted a 4.5% gain in January. The jump was the largest since September 2011.

This month, however, the group predicts that the growth rate will sink to roughly 3%.

"There's no ebullient retail sales trend showing that things are materially better," said Larry Palmer, managing director of private wealth management for Morgan Stanley. "There's cautious optimism, but there's also cautious skepticism."

tiffany.hsu@latimes.com

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Obama names REI chief to lead the Interior Department

President Obama nominated REI business executive Sally Jewell to lead his second-term Interior Department.

WASHINGTON – President Obama on Wednesday nominated Sally Jewell, a former oil engineer and banker and current chief executive of a national outdoor retailer, to lead the Interior Department, making an unorthodox pick for his first woman nominee to his second-term Cabinet.

The president and CEO of Recreational Equipment Inc., Jewell has no government and little public policy experience, and has spent her career far from Washington. But her resume has elements that appealed to both of the two feuding interests that consume much of the debate at the department that controls public lands: the oil and gas extraction industries seeking access to public lands, as well as environmentalists seeking to preserve them.

Jewell, 56, started her career as a petroleum engineer working in the oil fields of Oklahoma and Colorado for Mobil Oil Corp. She then moved to the corporate banking industry, and joined the REI board in 1996,  becoming chief operating officer four years later.

PHOTOS: President Obama’s past

She has been credited with expanding the Washington state-based retailer's Internet operations and contributing the membership cooperative’s resources to environmental stewardship. Jewell, an avid outdoorswoman, serves on the board of the National Parks Conservation Assn. as well as the Board of Regents of the University of Washington.

In announcing his choice, Obama cast her as someone who would seek a balance between protection and economic development of public lands. 

“She knows the link between conservation and good jobs,” Obama said in remarks at the White House. “She knows that there’s no contradiction between being good stewards of the land and our economic progress, that in fact, those two things need to go hand-in-hand. She’s shown that a company with more than $1 billion in sales can do the right thing for our planet.”

In fact, little is known about Jewell’s policy positions. And while environmental groups largely praised her nomination, Republicans and some Democrats withheld judgment.

“The livelihoods of Americans living and working in the West rely on maintaining a real balance between conservation and economic opportunity,” said Sen. Lisa Murkowski (R-Alaska), the ranking member of the Senate committee on energy and national resources.  “I look forward to hearing about the qualifications Ms. Jewell has that make her a suitable candidate to run such an important agency, and how she plans to restore balance to the Interior Department.”

PHOTOS: President Obama’s second inauguration

If confirmed, Jewell will replace Ken Salazar, who served in the post throughout the president’s first term and led a period of expansion of oil and gas drilling on public lands. Salazar plans to return to Colorado. Obama on Wednesday praised the former senator as a close friend and trusted advisor.

Salazar, he said, had “ushered in a new era of conservation of our land, our water and our wildlife.”

“He’s opened more public land and water for safe and responsible energy production – not just gas and oil, but also wind and solar – creating thousands of new jobs and nearly doubling our use of renewable energy in this country,” Obama said. 

Jewell is the first woman to be named to lead a Cabinet-level department in the second term. After naming a few white men to top jobs, Obama said the next round of nominees would include more women and be more racially diverse.

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Kathleen.hennessey@latimes.com

Twitter: @khennessey

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Chris Brown returns to court for probation issues

LOS ANGELES (AP) — With the woman he assaulted throwing him a kiss, Chris Brown walked into court Wednesday to face allegations he failed to complete his community labor sentence for Rihanna's 2009 beating.

A judge asked for more information and scheduled another hearing in two months.

Rihanna, the glamorous singer whose bruised face became a tabloid fixture after she was beaten by her then-boyfriend on the way to the Grammys, has been dating Brown again.

She arrived with the R&B star, his mother and two other women and blew him a kiss as he entered the courtroom. They left together after the short proceeding in which Superior Court Judge James Brandlin set the next hearing for April 5.

Brown's lawyer, Mark Geragos, said he was disturbed about the way the district attorney handled the matter and said he would be filing a motion opposing the prosecution's move to modify Brown's fulfillment of his community labor sentence.

Prosecutors, who said they could find no credible evidence that Brown had completed his community labor in his home state of Virginia, asked that he start all over and put in 180 days in Los Angeles County.

Prosecutors have suggested there was either sloppy record keeping or fraudulent reporting.

The judge noted during the brief court session that a prosecution filing did not request revocation of Brown's probation and he, therefore, would not revoke it.

A motion filed Tuesday also raised for the first time in Brown's felony assault case several incidents that prosecutors said demonstrate Brown has ongoing anger management issues.

The motion cited a Jan. 27 fight between Brown and fellow R&B star Frank Ocean, and a 2011 outburst in which Brown threw a chair through a window after he was asked about the Rihanna attack on "Good Morning America."

The filing represents a dramatic shift in the case against Brown, who was repeatedly praised by the judge overseeing his case for his completion of domestic violence courses and his community service work in his home state of Virginia.

That changed in September, when prosecutors raised concerns about Brown's community service after he logged 701 hours in seven months — an amount that had previously taken him more than two years to achieve.

Los Angeles investigators traveled to Richmond, Va., to investigate Brown's service, which was only described in broad strokes by Richmond Police Chief Bryan Norwood, who was overseeing the singer's community labor.

"This inquiry provided no credible, competent or verifiable evidence that defendant Brown performed his community labor as presented to this court," Deputy District Attorney Mary Murray wrote.

Brown's attorney Geragos blasted the court filing, saying the prosecutor ignored interviews "where sworn peace officers stated unequivocally that Mr. Brown was supervised and did all of the community service."

"I plan on asking for sanctions from the DA's office for filing a frivolous, scurrilous and frankly defamatory motion," he said Tuesday.

Brown's case was transferred to Brandlin after a recent shuffling of judicial assignments.

After pleading guilty to the Rihanna attack, Brown was given permission to serve 180 days of community labor in his home state of Virginia, but only as long as he performed manual labor such as graffiti removal and roadside cleanup.

Given problems with documentation and statements from some witnesses who contradict Brown's claims of work, prosecutors asked Brandlin to order Brown to repeat his service in Los Angeles.

Brown spent one-third of the hours he logged in Virginia working night shifts at a day care center in rural Virginia where his mother once served as director and where the singer spent time as a child.

A detective who checked on Brown's work nine times at the Tappahannock Children's Center found the singer, his mother and a bodyguard at the center on each visit.

The records said Brown waxed floors or performed general cleaning at the center.

A professional floor cleaner contracted to work at the daycare center told investigators he had been cleaning the floors during the months Brown reported working at the facility.

"Claims that the defendant cleaned, stripped and waxed floors at that location have been credibly contradicted," prosecutors said in the filing.

Brown's mother, Joyce Hawkins, no longer had a formal role at the day care center but had her own set of keys and coordinated her son's work at the facility, prosecutors said.

Murray stated in her filing that Norwood's report on Brown's service was "at best sloppy documentation and at worst fraudulent reporting."

Richmond police spokesman Gene Lepley declined to discuss the allegations.

"We believe it would inappropriate to comment on a matter that's before the court," Lepley said.

According to the motion, officials with Virginia's probation office told investigators that Brown's arrangement to be supervised by Norwood was "extremely unusual" and had not been approved by the agency. No one from Virginia's probation department oversaw Brown's hours, prosecutors said.

The motion noted that the only records the department has to indicate Brown was supervised were officers' overtime sheets. Five of 21 days that officers logged overtime for Brown were spent providing security for the singer's concerts.

The allegations are the latest pre-Grammy controversy for Brown, who was arrested shortly after the 2009 ceremony for his attack on Rihanna. He has since returned to the awards show by performing and winning an award in 2011 for his album "F.A.M.E."

Brown and Ocean are competing against one other for the Best Urban Contemporary Album category at Sunday's Grammys.

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AP writers Anthony McCartney and Ryan Pearson contributed to this report.

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Personal Health: Effective Addiction Treatment

Countless people addicted to drugs, alcohol or both have managed to get clean and stay clean with the help of organizations like Alcoholics Anonymous or the thousands of residential and outpatient clinics devoted to treating addiction.

But if you have failed one or more times to achieve lasting sobriety after rehab, perhaps after spending tens of thousands of dollars, you’re not alone. And chances are, it’s not your fault.

Of the 23.5 million teenagers and adults addicted to alcohol or drugs, only about 1 in 10 gets treatment, which too often fails to keep them drug-free. Many of these programs fail to use proven methods to deal with the factors that underlie addiction and set off relapse.

According to recent examinations of treatment programs, most are rooted in outdated methods rather than newer approaches shown in scientific studies to be more effective in helping people achieve and maintain addiction-free lives. People typically do more research when shopping for a new car than when seeking treatment for addiction.

A groundbreaking report published last year by the National Center on Addiction and Substance Abuse at Columbia University concluded that “the vast majority of people in need of addiction treatment do not receive anything that approximates evidence-based care.” The report added, “Only a small fraction of individuals receive interventions or treatment consistent with scientific knowledge about what works.”

The Columbia report found that most addiction treatment providers are not medical professionals and are not equipped with the knowledge, skills or credentials needed to provide the full range of evidence-based services, including medication and psychosocial therapy. The authors suggested that such insufficient care could be considered “a form of medical malpractice.”

The failings of many treatment programs — and the comprehensive therapies that have been scientifically validated but remain vastly underused — are described in an eye-opening new book, “Inside Rehab,” by Anne M. Fletcher, a science writer whose previous books include the highly acclaimed “Sober for Good.”

“There are exceptions, but of the many thousands of treatment programs out there, most use exactly the same kind of treatment you would have received in 1950, not modern scientific approaches,” A. Thomas McLellan, co-founder of the Treatment Research Institute in Philadelphia, told Ms. Fletcher.

Ms. Fletcher’s book, replete with the experiences of treated addicts, offers myriad suggestions to help patients find addiction treatments with the highest probability of success.

Often, Ms. Fletcher found, low-cost, publicly funded clinics have better-qualified therapists and better outcomes than the high-end residential centers typically used by celebrities like Britney Spears and Lindsay Lohan. Indeed, their revolving-door experiences with treatment helped prompt Ms. Fletcher’s exhaustive exploration in the first place.

In an interview, Ms. Fletcher said she wanted to inform consumers “about science-based practices that should form the basis of addiction treatment” and explode some of the myths surrounding it.

One such myth is the belief that most addicts need to go to a rehab center.

“The truth is that most people recover (1) completely on their own, (2) by attending self-help groups, and/or (3) by seeing a counselor or therapist individually,” she wrote.

Contrary to the 30-day stint typical of inpatient rehab, “people with serious substance abuse disorders commonly require care for months or even years,” she wrote. “The short-term fix mentality partially explains why so many people go back to their old habits.”

Dr. Mark Willenbring, a former director of treatment and recovery research at the National Institute for Alcohol Abuse and Alcoholism, said in an interview, “You don’t treat a chronic illness for four weeks and then send the patient to a support group. People with a chronic form of addiction need multimodal treatment that is individualized and offered continuously or intermittently for as long as they need it.”

Dr. Willenbring now practices in St. Paul, where he is creating a clinic called Alltyr “to serve as a model to demonstrate what comprehensive 21st century treatment should look like.”

“While some people are helped by one intensive round of treatment, the majority of addicts continue to need services,” Dr. Willenbring said. He cited the case of a 43-year-old woman “who has been in and out of rehab 42 times” because she never got the full range of medical and support services she needed.

Dr. Willenbring is especially distressed about patients who are treated for opioid addiction, then relapse in part because they are not given maintenance therapy with the drug Suboxone.

“We have some pretty good drugs to help people with addiction problems, but doctors don’t know how to use them,” he said. “The 12-step community doesn’t want to use relapse-prevention medication because they view it as a crutch.”

Before committing to a treatment program, Ms. Fletcher urges prospective clients or their families to do their homework. The first step, she said, is to get an independent assessment of the need for treatment, as well as the kind of treatment needed, by an expert who is not affiliated with the program you are considering.

Check on the credentials of the program’s personnel, who should have “at least a master’s degree,” Ms. Fletcher said. If the therapist is a physician, he or she should be certified by the American Board of Addiction Medicine.

Does the facility’s approach to treatment fit with your beliefs and values? If a 12-step program like A.A. is not right for you, don’t choose it just because it’s the best known approach.

Meet with the therapist who will treat you and ask what your treatment plan will be. “It should be more than movies, lectures or three-hour classes three times a week,” Ms. Fletcher said. “You should be treated by a licensed addiction counselor who will see you one-on-one. Treatment should be individualized. One size does not fit all.”

Find out if you will receive therapy for any underlying condition, like depression, or a social problem that could sabotage recovery. The National Institute on Drug Abuse states in its Principles of Drug Addiction Treatment, “To be effective, treatment must address the individual’s drug abuse and any associated medical, psychological, social, vocational, and legal problems.”

Look for programs using research-validated techniques, like cognitive behavioral therapy, which helps addicts recognize what prompts them to use drugs or alcohol, and learn to redirect their thoughts and reactions away from the abused substance.

Other validated treatment methods include Community Reinforcement and Family Training, or Craft, an approach developed by Robert J. Meyers and described in his book, “Get Your Loved One Sober,” with co-author Brenda L. Wolfe. It helps addicts adopt a lifestyle more rewarding than one filled with drugs and alcohol.

This is the first of two articles on addiction treatment.

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Going good postal

The U.S. Postal Service, in its latest bid to save a few billion bucks, plans to stop delivering mail on Saturdays.

It's not enough.

The ugly truth is that the Postal Service's commitment to universal mail service is no longer financially viable in the age of email, text messages, Facebook and Twitter. As currently configured, it will never again be able to meet its legal obligation to pay its own way.

To survive, the Postal Service will need to reinvent itself for the digital age. I have a few ideas on how to do that, which I'll get back to in a moment.

First, let's look briefly at how we got into this mess.

A big part of the problem is a 2006 law requiring the Postal Service to pay about $5.5 billion a year into a health-benefit fund for retirees. No other government agency faces such a requirement.

Then again, the Postal Service isn't like any other government agency. Many people might not know it, but the Postal Service isn't supported by tax dollars. It has to cover its own nut, yet is unable to do anything without Congress' say-so.

Until now, the agency was able to scrape by because it was allowed by federal law to borrow up to $3 billion a year from the Treasury Department. But its debt couldn't top $15 billion, and the Postal Service maxed out its credit card last year.

That caused it to default for the first time on its payments into the retiree fund and caused the agency to start racking up losses of nearly $36 million a day. The Postal Service's net loss for last year hit a staggering $15.6 billion.

By 2016, if things continue as they're going, the service estimates its annual losses will reach about $21 billion.

Even Pets.com did better than that.

So here we are. On Wednesday, Postmaster General Patrick Donahoe said that Saturday delivery of letters would stop in August, though weekend delivery of packages will continue. This would save about $2 billion a year.

Meanwhile, the Postal Service will continue a massive restructuring that aims to cut its workforce by 193,000, or 28%, and consolidate more than 200 mail processing locations.

"The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said.

"The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. mail," he said.

I don't care how many packages stream through post offices. It'll never be enough to cover the huge expense of meeting a federal obligation to deliver mail to every home in the country.

Here's the bottom line: The total volume of first-class mail plunged to 73.5 billion pieces of mail in 2011 from about 102 billion in 2002. That's a 28% decrease.

Video killed the radio star. The Internet is killing letters.

Privatizing mail delivery isn't realistic. I've spoken with both FedEx and UPS. They say they're open to dropping off people's letters and catalogs and stuff, but they don't want the responsibility of having to deliver everywhere.

So what's the solution? In an earlier column I floated the idea of forgoing mail delivery to some rural areas, restoring the old-fashioned notion of people coming to the post office for their deliveries.

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L.A. Archdiocese considering $200-million fund-raising campaign

In the midst of renewed public outrage over its handling of the priest molestation cases, the Los Angeles Archdiocese is considering a $200-million fund-raising campaign.

The archdiocese has hired a New York company, Guidance in Giving, to study the feasibility of a capital campaign that would shore up the church’s finances.

The archdiocese is $80 million in debt, according to a recent church financial report. In 2007, the archdiocese agreed to a record $600-million settlement with more than 500 alleged victims of priest abuse.

The consultants conducting the six-month study are interviewing every pastor in the archdiocese, as well as lay leaders.

A spokesman for the church said initial feedback has been “very positive.” The funds used would “be put into various endowments earmarked to support the pastoral priorities of the archdiocese, as well as for the general repair and upkeep of our parish churches and schools,” spokesman Tod Tamberg said in a statement.

The campaign would be the archdiocese’s first in 60 years. During the Truman administration, the church raised $3.5 million for new schools in just three weeks. At the time of that 1949 drive, there were about 650,000 Catholics in the archdiocese. Now there are more than 5 million, according to church figures.

The church has not announced the possibility of a campaign to the faithful, but Tamberg acknowledged it in response to questions from The Times on Tuesday.
Last week, Archbishop Jose Gomez publicly rebuked his predecessor, Cardinal Roger M. Mahony, and a high-ranking bishop, Thomas J. Curry, for their handling of molestation claims in the 1980 and 1990s. Files made public last month showed Mahony and Curry working to conceal priests’ sex abuse of children from the police.

At the same time he condemned their actions, the church posted 12,000 pages of priest personnel files on its website that revealed many more instances where officials covered up for abusers. Gomez, who got his undergraduate degree in accounting, assembled a special committee last year to evaluate the possibility of a large-scale campaign, according to the church financial report.

The archdiocese is still paying back a $175-million loan it received to pay victims in the civil settlement. “The archbishop considers stewardship of the church’s financial resources and sound fiscal planning to be a vital dimension of the new evangelization,” church auditors wrote in a recent report.

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Disney working on stand-alone 'Star Wars' films

LOS ANGELES (AP) — Disney is mining The Force for even more new films.

Walt Disney Co. CEO Bob Iger said Tuesday that screenwriters Larry Kasdan and Simon Kinberg are working on stand-alone "Star Wars" movies that aren't part of the new trilogy that's in the works.

"There has been speculation about some standalone films that have been in development, and I can confirm to you today that in fact we are working on a few stand-alone films," Iger told CNBC.

Iger said the movies would be based on "great 'Star Wars' characters that are not part of the overall saga." The films would be released during the six-year period of the new trilogy, which starts in 2015 with "Star Wars: Episode VII."

Disney confirmed last month that "Star Trek" director J.J. Abrams will direct the seventh installment of the "Star Wars" saga.

Disney bought "Star Wars" maker Lucasfilm last year for more than $4 billion.

The last "Star Wars" trilogy, a prequel to the original films, was released from 1999 to 2005.

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Online:

http://www.starwars.com/

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Well: Warning Too Late for Some Babies

Six weeks after Jack Mahoney was born prematurely on Feb. 3, 2011, the neonatal staff at WakeMed Hospital in Raleigh, N.C., noticed that his heart rate slowed slightly when he ate. They figured he was having difficulty feeding, and they added a thickener to help.

When Jack was discharged, his parents were given the thickener, SimplyThick, to mix into his formula. Two weeks later, Jack was back in the hospital, with a swollen belly and in inconsolable pain. By then, most of his small intestine had stopped working. He died soon after, at 66 days old.

A month later, the Food and Drug Administration issued a caution that SimplyThick should not be fed to premature infants because it may cause necrotizing enterocolitis, or NEC, a life-threatening condition that damages intestinal tissue.

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Catherine Saint Louis speaks about using SimplyThick in premature infants.

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Experts do not know how the product may be linked to the condition, but Jack is not the only child to die after receiving SimplyThick. An F.D.A. investigation of 84 cases, published in The Journal of Pediatrics in 2012, found a “distinct illness pattern” in 22 instances that suggested a possible link between SimplyThick and NEC. Seven deaths were cited; 14 infants required surgery.

Last September, after more adverse events were reported, the F.D.A. warned that the thickener should not be given to any infants. But the fact that SimplyThick was widely used at all in neonatal intensive care units has spawned a spate of lawsuits and raised questions about regulatory oversight of food additives for infants.

SimplyThick is made from xanthan gum, a widely-used food additive on the F.D.A.’s list of substances “generally recognized as safe.” SimplyThick is classified as a food and the F.D.A. did not assess it for safety.

John Holahan, president of SimplyThick, which is based in St. Louis, acknowledged that the company marketed the product to speech language pathologists who in turn recommended it to infants. The patent touted its effectiveness in breast milk.

However, Mr. Holahan said, “There was no need to conduct studies, as the use of thickeners overall was already well established. In addition, the safety of xanthan gum was already well established.”

Since 2001, SimplyThick has been widely used by adults with swallowing difficulties. A liquid thickened to about the consistency of honey allows the drinker more time to close his airway and prevent aspiration.

Doctors in newborn intensive care units often ask non-physician colleagues like speech pathologists to determine whether an infant has a swallowing problem. And those auxiliary feeding specialists often recommended SimplyThick for neonates with swallowing troubles or acid reflux.

The thickener became popular because it was easy to mix, could be used with breast milk, and maintained its consistency, unlike alternatives like rice cereal.

“It was word of mouth, then neonatologists got used to using it. It became adopted,” said Dr. Steven Abrams, a neonatologist at Texas Children’s Hospital in Houston. “At any given time, several babies in our nursery — and in any neonatal unit — would be on it.”

But in early 2011, Dr. Benson Silverman, the director of the F.D.A.’s infant formula section, was alerted to an online forum where doctors had reported 15 cases of NEC among infants given SimplyThick. The agency issued its first warning about its use in babies that May. “We can only do something with the information we are provided with,” he said. “If information is not provided, how would we know?”

Most infants who took SimplyThick did not fall ill, and NEC is not uncommon in premature infants. But most who develop NEC do so while still in the hospital. Some premature infants given SimplyThick developed NEC later than usual, a few after they went home, a pattern the F.D.A. found unusually worrisome.

Even now it is not known how the thickener might have contributed to the infant deaths. One possibility is that xanthan gum itself is not suitable for the fragile digestive systems of newborns. The intestines of premature babies are “much more likely to have bacterial overgrowth” than adults’, said Dr. Jeffrey Pietz, the chief of newborn medicine at Children’s Hospital Central California in Madera.

“You try not to put anything in a baby’s intestine that’s not natural.” If you do, he added, “you’ve got to have a good reason.”

A second possibility is that batches of the thickener were contaminated with harmful bacteria. In late May 2011, the F.D.A. inspected the plants that make SimplyThick and found violations at one in Stone Mountain, Ga., including a failure to “thermally process” the product to destroy bacteria of a “public health significance.”

The company, Thermo Pac, voluntarily withdrew certain batches. But it appears some children may have ingested potentially contaminated batches.

The parents of Jaden Santos, a preemie who died of NEC while on SimplyThick, still have unused packets of recalled lots, according to their lawyer, Joe Taraska.

The authors of the F.D.A. report theorized that the infants’ intestinal membranes could have been damaged by bacteria breaking down the xanthan gum into too many toxic byproducts.

Dr. Qing Yang, a neonatologist at Wake Forest University, is a co-author of a case series in the Journal of Perinatology about three premature infants who took SimplyThick, developed NEC and were treated. The paper speculates that NEC was “most likely caused by the stimulation of the immature gut by xanthan gum.”

Dr. Yang said she only belatedly realized “there’s a lack of data” on xanthan gum’s use in preemies. “The lesson I learned is not to be totally dependent on the speech pathologist.”

Julie Mueller’s daughter Addison was born full-term and given SimplyThick after a swallow test showed she was at risk of choking. It was recommended by a speech pathologist at the hospital.

Less than a month later, Addison was dead with multiple holes in her small intestine. “It was a nightmare,” said Ms. Mueller, who has filed a lawsuit against SimplyThick. “I was astounded how a hospital and manufacturer was gearing this toward newborns when they never had to prove it would be safe for them. Basically we just did a research trial for the manufacturer.”

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Nasdaq reportedly in settlement talks over flubbed Facebook IPO

Facebook founder Mark Zuckerberg, center, rings the Nasdaq opening bell May 18 from Facebook headquarters in Menlo Park, Calif. (Zef Nikolla / Associated Press / February 5, 2013)

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Report: FBI was watching bunker hostage-taker the whole time

Federal Bureau of Investigation negotiators were watching Jimmy Lee Dykes, 65, "the whole time" as they prepared to enter the bunker where Dykes was holding a 5-year-old boy hostage, CBS News reported in its Monday evening broadcast.

Officials rescued the boy, named Ethan, early Monday evening in a surprise raid that left Dykes dead, ending a nearly weeklong standoff that began after Dykes boarded a bus and killed a bus driver before taking the boy to his underground bunker.

Citing unnamed federal sources, CBS News reported that the FBI rescue team created two diversions to distract Dykes before they entered the bunker from the top.

Officials said at a news conference that negotiations had deteriorated over the past 24 hours and that they had seen Dykes with a gun inside the bunker.

“At this point, FBI agents, fearing the child was in imminent danger, entered the bunker and rescued the child," Stephen E. Richardson, the special agent in charge of the FBI’s office in Mobile, Ala., said at a nationally televised news conference.

Officials did not go into further detail at the news conference, promising more information soon.

CBS News reported that officials had lowered a camera into the Dykes' bunker and "had eyes on him the whole time."

Dykes attacked the school bus a day before he was to appear in local court to answer charges of menacing a neighbor. According to residents of Midland City, Dykes was a fierce presence, firing shots at people and beating to death a dog that trespassed on his property.

Authorities maintained contact with Dykes through a 4-inch PVC pipe through which medicine was sent into the underground shelter, built by Dykes. Ethan was said to have a form of autism.

Michael Muskal contributed to this report.

ALSO:

Alabama standoff ends with child released, captor dead

Texas judge faces 'court of inquiry' into wrongful conviction

Ed Koch remembered as 'Uncle Eddie' and a savior of New York

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