Deepwater Horizon Owner Settles With U.S. Over Oil Spill in Gulf of Mexico





The driller whose floating Deepwater Horizon oil rig blew out in 2010 to cause the nation’s biggest oil spill has agreed to settle civil and criminal claims with the federal government for $1.4 billion, the Justice Department announced Thursday.




The Deepwater Horizon exploded, burned and sank in April 2010. Eleven men were killed and millions of gallons of oil flowed into the Gulf of Mexico and fouled the shores of coastal states. The well, known as Macondo, was owned by British oil giant BP, which settled its own criminal charges and some of its civil charges in November for $4.5 billion.


While this settlement resolves the government’s claims against Transocean, that company and the others involved in the spill still face the sprawling, multistate civil case, which is scheduled to begin in February in New Orleans. In a deal filed in federal court in New Orleans, a subsidiary, Transocean Deepwater, agreed to one criminal misdemeanor violation of the Clean Water Act and will pay a fine of $100 million. Over the next five years, the company will pay civil penalties of $1 billion, the largest ever under the act.


As part of the criminal settlement, Transocean also agreed to pay the National Academy of Sciences and the National Fish and Wildlife Foundation $150 million each. Those funds will be applied to oil spill prevention and response in the Gulf of Mexico and natural resource restoration projects. The agreement will be subject to public comment and court approval. The company agreed to five years of monitoring of its drilling practices and improved safety measures.


In a statement, Transocean Ltd., the Switzerland-based parent of the rig owner, said that the company thought these were “important agreements” and called them a “positive step forward” that were “in the best interest of its shareholders and employees.” Of the 11 men killed on the rig, the company said, “their families continue to be in the thoughts and prayers of all of us at Transocean.”


The company announced in September that it had set an “estimated loss contingency” of $1.5 billion against the Justice Department’s claims.


Shares of Transocean Ltd. rose nearly 3 percent on the news, to close at $49.20.


In a statement, Lanny A. Breuer, assistant attorney general for the Justice Department’s Criminal Division, seemed to suggest that Transocean had played a subservient and lesser role in the disaster to that of BP: “Transocean’s rig crew accepted the direction of BP well site leaders to proceed in the face of clear danger signs — at a tragic cost to many of them.” He said that the $1.4 billion “appropriately reflects its role in the Deepwater Horizon disaster.”


Under a law passed last year, 80 percent of the penalty will be applied to projects for restoring the environment and economies of gulf states.


That fact was applauded by a coalition of Gulf Coast restoration groups, including the Environmental Defense Fund and the National Audubon Society. A joint statement called this “a great day for the gulf environment and the communities that rely on a healthy ecosystem for their livelihoods.”


Still, the penalty struck some experts in environmental law as somewhat light. David M. Uhlmann, who headed the Justice Department’s environmental crimes section from 2000 to 2007, praised the size of the civil settlement, which he said “reflects the scope of the gulf oil spill tragedy.”


He argued, however, that the criminal penalty should have been at least as onerous, “given Transocean’s numerous failures to drill in a safe manner, which cost 11 workers their lives and billions of dollars in damages to communities along the gulf.” The settlement, he said, should have included seaman’s manslaughter charges, which were part of the BP settlement.


As for the company’s role in following the lead of BP, he said, “following orders is not a defense to criminal charges.”


At the Environmental Protection Agency, Cynthia Giles, assistant administrator for the office of enforcement and compliance assurance, called the settlement “an important step” toward holding Transocean and others involved in the spill accountable. “E.P.A. will continue to work with D.O.J. and its federal partners to vigorously pursue the government’s claims against all responsible parties and ensure that we are taking every possible step to restore and protect the Gulf Coast ecosystem,” she said.


The multistate trial over claims in the Deepwater Horizon cases that have not been settled are scheduled to begin in February. Stephen J. Herman and James P. Roy, lawyers who represent the steering committee of plaintiffs in the cases, said that Thursday’s settlement did not change the case, and that the plaintiffs thought that BP, Transocean and Halliburton “will be found grossly negligent” at trial.


BP continued its longstanding argument that the accident, in the words of the spokesman Geoff Morrell, “resulted from multiple causes, involving multiple parties,” and that other companies had to shoulder their share of the blame.


Transocean, Mr. Morrell said in a statement, “is finally starting, more than two-and-a-half years after the accident, to do its part for the Gulf Coast.” He then turned his attention to the other major contractor on the well, and said, “Unfortunately, Halliburton continues to deny its significant role in the accident, including its failure to adequately cement and monitor the well.”


Beverly Blohm Stafford, a Halliburton spokeswoman, said that the company “remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP’s specifications for its well construction plan and instructions,” and so Halliburton, she said was protected from liability through indemnity provisions of its drilling contract.


“We continue to believe that we have substantial legal arguments and defenses against any liability and that BP’s indemnity obligation protects us,” she said. “Accordingly we will maintain our approach of taking all proper actions to protect our interests.”


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5-Hour Energy’s ‘No Crash Later’ Claim Is Disputed





The distributor of the top-selling energy “shot,” 5-Hour Energy, has long claimed on product labels, in promotions and in television advertisements that the concentrated caffeine drink produced “no crash later” — the type of letdown that consumers of energy drinks often feel when the beverages’ effects wear off.




But an advertising watchdog group said on Wednesday that it had told the company five years ago that the claim was unfounded and had urged it then to stop making it.


An executive of the group, the National Advertising Division, also said that 5-Hour Energy’s distributor, Living Essentials, had publicly misrepresented the organization’s position about the claim and that it planned to start a review that could lead to action against the company by the Federal Trade Commission.


“We recommended that the ‘no crash’ claim be discontinued because their own evidence showed there was a crash from the product,” said Andrea C. Levine, director the National Advertising Division. The organization, which is affiliated with the Council of Better Business Bureaus, reviews ad claims for accuracy.


The emerging dispute between Living Essentials and the National Advertising Division is unusual because the $10 billion energy drink industry is rife with questionable marketing. And Living Essentials, which recently cited the advertising group’s support in seeking to defend the “no crash” claim, may have opened the door to greater scrutiny.


Major producers like 5-Hour Energy, Red Bull, Monster Energy and Rockstar Energy all say their products contain proprietary blends of ingredients that provide a range of mental and physical benefits. But the companies have conducted few studies to show that the costly products provide anything more than a blast of caffeine, a stimulant found in beverages like coffee, tea or cola-flavored sodas.


The dispute over 5-Hour Energy’s claim also comes as regulatory review of the high-caffeine drinks is increasing. The Food and Drug Administration recently disclosed that it had received reports over the last four years citing the possible role of 5-Hour Energy in 15 deaths. The mention of a product in an F.D.A. report does not mean it caused a death or injury. Living Essentials says it knows of no problems related to its products.


The issue surrounding the company’s “no crash” claim dates to 2007, when National Advertising Division began reviewing all of 5-Hour Energy’s marketing claims. That same year, the company conducted a clinical trial of the energy shot that compared it to Red Bull and Monster Energy.


At the time, Living Essentials was already using the “No crash later” claim. An article on Wednesday in The New York Times reported that the study had shown that 24 percent of those who used 5-Hour Energy suffered a “moderately severe” crash hours after consuming it. The study reported higher crash rates for Red Bull and Monster Energy.


When asked how those findings squared with the company’s “no crash” claim, Elaine Lutz, a spokeswoman for Living Essentials, said the company had amended the claim after the 2007 review by the National Advertising Division. In doing so, it added an asterisklike mark after the claim on product labels and in promotions. The mark referred to additional labeling language stating that “no crash means no sugar crash.” Unlike Red Bull and Monster Energy, 5-Hour Energy does not contain sugar.


Ms. Lutz said that based on the modification, the advertising accuracy group “found all of our claims to be substantiated.”


However, Ms. Levine, the advertising group’s director, took sharp exception to that assertion, saying it mischaracterized the group’s decision. And a review of the reports suggested that Living Essentials had simply added language of its choosing to its label rather than doing what the group had recommended — drop the “no crash” claim altogether.


That review concluded that the company’s 2007 study had shown there was evidence to support a “qualified claim that 5-Hour Energy results in less of a crash than Red Bull and Monster” Energy. But it added the study, which showed that 5-Hour Energy users experienced caffeine-related crashes, was inadequate to support a “no crash” claim.


Ms. Levine said Living Essentials had apparently decided to use the parts of the group’s report that it liked and ignore others.


Companies “are not permitted to mischaracterize our decisions or misuse them for commercial purposes,” she said.


She said the group planned to notify Living Essentials that it was reopening its review of the “no crash later” claim. If the company fails to respond or provides an inadequate response, the National Advertising Division will probably refer the matter to the F.T.C., she said.


A Democratic lawmaker, Representative Edward Markey of Massachusetts, has asked that the agency review energy drink marketing claims.


Asked about the position of the National Advertising Division, Ms. Lutz, the 5-Hour Energy spokeswoman, stated in an e-mail that the “no sugar crash” language had been added to address the group’s concern.


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5-Hour Energy’s ‘No Crash Later’ Claim Is Disputed





The distributor of the top-selling energy “shot,” 5-Hour Energy, has long claimed on product labels, in promotions and in television advertisements that the concentrated caffeine drink produced “no crash later” — the type of letdown that consumers of energy drinks often feel when the beverages’ effects wear off.




But an advertising watchdog group said on Wednesday that it had told the company five years ago that the claim was unfounded and had urged it then to stop making it.


An executive of the group, the National Advertising Division, also said that 5-Hour Energy’s distributor, Living Essentials, had publicly misrepresented the organization’s position about the claim and that it planned to start a review that could lead to action against the company by the Federal Trade Commission.


“We recommended that the ‘no crash’ claim be discontinued because their own evidence showed there was a crash from the product,” said Andrea C. Levine, director the National Advertising Division. The organization, which is affiliated with the Council of Better Business Bureaus, reviews ad claims for accuracy.


The emerging dispute between Living Essentials and the National Advertising Division is unusual because the $10 billion energy drink industry is rife with questionable marketing. And Living Essentials, which recently cited the advertising group’s support in seeking to defend the “no crash” claim, may have opened the door to greater scrutiny.


Major producers like 5-Hour Energy, Red Bull, Monster Energy and Rockstar Energy all say their products contain proprietary blends of ingredients that provide a range of mental and physical benefits. But the companies have conducted few studies to show that the costly products provide anything more than a blast of caffeine, a stimulant found in beverages like coffee, tea or cola-flavored sodas.


The dispute over 5-Hour Energy’s claim also comes as regulatory review of the high-caffeine drinks is increasing. The Food and Drug Administration recently disclosed that it had received reports over the last four years citing the possible role of 5-Hour Energy in 15 deaths. The mention of a product in an F.D.A. report does not mean it caused a death or injury. Living Essentials says it knows of no problems related to its products.


The issue surrounding the company’s “no crash” claim dates to 2007, when National Advertising Division began reviewing all of 5-Hour Energy’s marketing claims. That same year, the company conducted a clinical trial of the energy shot that compared it to Red Bull and Monster Energy.


At the time, Living Essentials was already using the “No crash later” claim. An article on Wednesday in The New York Times reported that the study had shown that 24 percent of those who used 5-Hour Energy suffered a “moderately severe” crash hours after consuming it. The study reported higher crash rates for Red Bull and Monster Energy.


When asked how those findings squared with the company’s “no crash” claim, Elaine Lutz, a spokeswoman for Living Essentials, said the company had amended the claim after the 2007 review by the National Advertising Division. In doing so, it added an asterisklike mark after the claim on product labels and in promotions. The mark referred to additional labeling language stating that “no crash means no sugar crash.” Unlike Red Bull and Monster Energy, 5-Hour Energy does not contain sugar.


Ms. Lutz said that based on the modification, the advertising accuracy group “found all of our claims to be substantiated.”


However, Ms. Levine, the advertising group’s director, took sharp exception to that assertion, saying it mischaracterized the group’s decision. And a review of the reports suggested that Living Essentials had simply added language of its choosing to its label rather than doing what the group had recommended — drop the “no crash” claim altogether.


That review concluded that the company’s 2007 study had shown there was evidence to support a “qualified claim that 5-Hour Energy results in less of a crash than Red Bull and Monster” Energy. But it added the study, which showed that 5-Hour Energy users experienced caffeine-related crashes, was inadequate to support a “no crash” claim.


Ms. Levine said Living Essentials had apparently decided to use the parts of the group’s report that it liked and ignore others.


Companies “are not permitted to mischaracterize our decisions or misuse them for commercial purposes,” she said.


She said the group planned to notify Living Essentials that it was reopening its review of the “no crash later” claim. If the company fails to respond or provides an inadequate response, the National Advertising Division will probably refer the matter to the F.T.C., she said.


A Democratic lawmaker, Representative Edward Markey of Massachusetts, has asked that the agency review energy drink marketing claims.


Asked about the position of the National Advertising Division, Ms. Lutz, the 5-Hour Energy spokeswoman, stated in an e-mail that the “no sugar crash” language had been added to address the group’s concern.


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DealBook: Car Sharing Catches On as Zipcar Sells to Avis

8:51 p.m. | Updated

Last year, Lane Becker and his wife, Courtney Skott, plotted out the costs of owning a car versus renting one through Zipcar, the popular car-sharing service.

They ultimately decided to give away their car. Mr. Becker, who is 39 and lives in San Francisco, said he had few regrets, despite some difficulty securing a Zipcar on weekends, when he competes with other customers.

“It’s a lot easier to rent than to own in a city these days, and Zipcar is an easy way to do it,” he said.

But on Wednesday, Avis Budget Group, the car rental conglomerate, announced that it was buying Zipcar for about $500 million. And that has Mr. Becker and some other “Zipsters,” as Zipcar customers are known, worried that the company’s communal cachet could be tarnished by a corporate behemoth.

“Please don’t let them screw it up,” Mr. Becker said.

For Zipcar, based in Cambridge, Mass., the deal represents perhaps an inevitable evolution for a company that has been more successful as a collectivist concept than as a profit-making venture (though it announced in November that it would post an annual profit for the first time).

Zipcar, which will operate as a subsidiary of Avis, should realize significant savings on things like vehicle purchases and insurance, while being able to tap Avis’s fleet to meet demand on weekends, when it is often short of cars.

For Avis, the purchase represents a new direction in a fiercely competitive car rental market, and an about-face for Ronald L. Nelson, the company’s chairman and chief executive, who had resisted entering the car-sharing segment.

“I’ve been somewhat dismissive of car sharing in the past,” Mr. Nelson said Wednesday morning in a phone call with analysts. He said he had come to the realization that car sharing could complement Avis’s more traditional car rental business and help it unlock new business opportunities abroad and with younger consumers. Avis’s rivals, Hertz Global and Enterprise Rent-A-Car, already offer hourly rental services that compete with Zipcar.

Shares of Avis Budget Group closed up about 5 percent on Wednesday, at $20.77. Shares of Zipcar closed up nearly 48 percent, at $12.18.

Avis said it expected savings of $50 million to $70 million a year from combining the two companies.

“Avis Budget’s existing infrastructure, scale and experience with managing multiple brands make it uniquely positioned to accelerate the growth and profitability of Zipcar,” Mr. Nelson said in prepared remarks. “At the same time, we are committed to retaining the elements of the Zipcar brand and culture that have allowed Zipcar to achieve such rapid growth and success.”

Avis paid $12.25 a share in cash, a 49 percent premium over the closing price of Zipcar on Monday. (The price, however, is well below Zipcar’s value in April 2011, when it went public at $18 a share.)

Among the beneficiaries will be Zipcar’s early investors, including the tech titan Steve Case. He and his investment fund own about 19 percent of Zipcar’s outstanding shares.

The idea for Zipcar dates to 1999, when a 42-year-old woman named Robin Chase learned about car sharing from a friend who had just returned from Berlin. A mother of three with an M.B.A. from the Massachusetts Institute of Technology, Ms. Chase wrote up a business plan and secured financing. Zipcar was started in 2000.

Environmentalists have embraced the idea of car sharing from the start, but Ms. Chase marketed Zipcar more on the idea of convenience, with the slogan “Wheels When You Want Them.” The company grew quickly but fitfully, and Ms. Chase was forced out in 2003.

Her successor as chairman and chief executive, Scott Griffith, expanded Zipcar across the country and into Europe. A flat, hourly rate that covers gas and insurance for customers proved to be alluring: the service now has more than 760,000 members, with locations in 20 metropolitan areas in the United States, Canada and Europe, as well as on many college campuses.

“Since the founding, I knew that Zipcar would end up being the winning model for drivers, and that car rental companies would eventually have to come around and adopt our technology and approach,” Ms. Chase said in an e-mail on Wednesday.

She said she expected the deal to improve Zipcar’s profitability, but added, “Like all big company acquisitions of small companies, there is worry that they won’t be able to do what it takes to succeed in the new economy: more innovation, more customer participation, more thinking outside of the box.”

Zipcar fans praise its convenience, its plentiful urban locations and its friendly customer service. Victor Neufeld, a media executive who lives in Manhattan, said renting a car in New York City was always an annoyance before Zipcar came along.

“Every time I need a car for two hours, I go online and get a car within two blocks of my home,” said Mr. Neufeld, who declined to give his age. “I also like it because originally I heard about it through word of mouth. I did not learn about it through advertising or some other marketing. It was very organic.”

Maggie Marquis, 31, who lives with her husband in Chicago, said she started using Zipcar about six months ago and was generally pleased. “Just today, I decided that I wanted to run out and do some errands, and decided it would be easiest and cheapest to get a Zipcar,” she said.

But Ms. Marquis said she was surprised by “small hints of disorganization.“ The company sent her multiple membership cards and would not allow her to sign her husband up for the same account, and she said she often received text messages about her rentals even after she had returned a car.

She said she hoped the influence of a larger corporation would “take their service to a new level of sophistication.”

Several other Zipcar fans said they, too, hoped there would be benefits to the Avis deal, particularly more cars available on weekends.

Claire Frisbie, 31, who lives in Brooklyn, said she liked Zipcar for many reasons, but that one of the biggest was the ability to avoid the bureaucracy of traditional car rental companies: the waiting, the insurance, the added fees.

“I wouldn’t want it to make it more difficult,” she said of the deal. “I would be worried that the easy breeziness of it would be gone.”

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Dozens of Syrians Killed in Explosions Around Damascus





BEIRUT, Lebanon — An explosion at a gas station outside Damascus, the Syrian capital, on Wednesday turned a long line of cars waiting for rarely available fuel into a deadly inferno that killed at least 30 people sitting in their cars or on motorcycles, according to videos and reports from witnesses who blamed a government airstrike.




The violence came as the United Nations released a study showing that more than 60,000 people had been killed in Syria’s 22-month-old conflict, a number that is a third higher than estimates by antigovernment activist groups.


Also on Wednesday, the family of James Foley, a freelance reporter for Agence France-Presse, the Global Post Web site and other media outlets, announced that Mr. Foley had been kidnapped on Nov. 22 by unidentified gunmen in northwest Syria. Mr. Foley had survived detention by government forces in Libya while covering the conflict there.


A flurry of diplomatic activity by Russia, the United Nations’ special envoy and others aimed at finding a political solution in Syria has appeared to founder in recent days as neither Bashar al-Assad, the Syrian president, nor his opponents have expressed a willingness to make concessions to end the bloody conflict.


The explosion near Damascus took place in a heavily contested suburban area where scores of people had lined up at a gas station for fuel, which had just become available there after about a month, witnesses said. Videos posted by antigovernment activists showed charred and dismembered bodies.


One man, who gave only his nickname, Abu Fuad, for safety reasons, said in a telephone interview that he had just filled up his gas tank and was driving away when he heard the screech of fighter jets.


He said he was less than a quarter-mile away when he heard the explosions.


“There were many cars waiting their turn,” he said. “Yesterday, we heard that the government sent fuel to the gas station here, so all the people around came to fill up their cars.”


In a sign of the depth of distrust the conflict has spawned, Abu Fuad suggested that restocking the station was a government ruse. “They sent fuel as a trap,” he said.


In the Damascus suburb of Moadhamiya, at least six people, most of them children from a single family, were killed when a mortar shell exploded, according to video and antigovernment activists. It was unclear who had fired the shell.


In northern Syria, rebels used rockets to attack the Taftanaz military airport, a long-contested area in Idlib Province, activists reported. Rebels have also stepped up attacks on airports in the neighboring province of Aleppo, trying to disrupt the warplanes and helicopters that government forces increasingly rely on for attacks, and even for supply lines, in the north.


The United Nations study suggested that the human toll of the war was even greater than previously estimated. Two days ago, the Syrian Observatory for Human Rights, a rebel group that tracks the war from Britain, reported 45,000 deaths, mostly civilian, since the conflict began in March 2011.


“The number of casualties is much higher than we expected, and is truly shocking,” the United Nations high commissioner for human rights, Navi Pillay, said in a statement after her agency released the study.


“We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends,” she added.


To avoid repeating the experiences of collapsed states like Afghanistan, Iraq and Somalia, she said, “serious planning needs to get under way immediately, not just to provide humanitarian aid to all those who need it, but to protect all Syrian citizens from extrajudicial reprisals and acts of revenge.”


The study’s surprisingly high death toll reflected only those killings in which victims had been identified by their full name, and the date and location of their death had been recorded, leaving the possibility of many more dead.


Independent researchers compiled reports of more than 147,000 killings in Syria’s conflict from seven sources, including the government. When duplicates were removed, there remained a list of 59,648 people killed between March 2011 and the end of November.


Meanwhile, Michael Foley, James Foley’s brother, stressed that James was an objective journalist, and he issued a plea to his brother’s captors, or anyone with information about his kidnapping, to contact the family.


“Jim is a completely objective and innocent journalist performing his duties,” Michael Foley said. “He’s not a political figure in any way.”


James Foley, 39, is the oldest of five children from Rochester, N.H. News outlets, including The New York Times, had not reported on his disappearance until his family spoke out.


Hwaida Saad contributed reporting.



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Tool Kit: Facebook’s Latest Mobile Interface Expands Features





The only thing constant about Facebook is that it keeps changing. Just when you think you’ve figured out the interface to the world’s biggest social network, the engineers there update it again.




For the 600 million or so people who use their smartphones to stay on top of Facebook friends, recent weeks have been especially anxiety-producing. Recognizing some time ago that for many mobile users their Facebook phone app is their primary or only way of access, the company unveiled a barrage of new features that bring the mobile apps in line with the desktop browser version of Facebook.


Facebook created new versions of its official apps for Android and Apple phones and revamped its mobile-optimized Web site, m.facebook.com, which works for most other smartphones. Facebook says the mobile site actually has more users than the Android and Apple apps combined.


Some new features are easy to spot. Friends’ posts now include a Share option so you can repost their updates, pictures and links to your own timeline. But other features are more subtle, and take some poking around to figure out. I’m here to help.


The most significant change to Facebook’s mobile apps is that the News Feed, the real-time stream of updates from your Facebook friends, now provides the same sorting options as the desktop version: Top Stories and Most Recent. If you go a while without logging in, the app will set the sorting to Top Stories, which floats the updates from the friends with whom you interact the most to the top of the feed. If you’d rather see posts sorted with the newest always on top, tap the gear icon next to News Feed on the app’s main left-hand menu. (It can take a little practice to tap the gear rather than another control.) A menu will pop up that lets you choose your sorting preference.


Your photos now have a Make Profile Picture option, so you don’t need to go back to a full-size computer to turn a photo taken on your phone into your identifying image. With an iPhone, press and hold the picture to bring up the command; in Android phones, it’s an option in the overflow menu.


Facebook has also built its chat function into the mobile apps. Rather than the e-mail-like Message utility, Chat is designed for conversations in which both parties tap back and forth at the same time. To start a chat session, tap the human-silhouette icon in the upper right corner of the app. That will bring up a list of your friends who are available right now to start a chat session, either on their phones (indicated by a phone icon) or on their desktops (indicated by a green dot). There’s a Favorites list you can edit to list only the friends you message most, so you don’t have to pore through your entire list of available friends to find them every time.


Do you upload lots of photos to Facebook from your smartphone? You have two new options. First, you can now select more than one photo by tapping, to upload them together. You can also configure the app to automatically upload every image you shoot to a private album from which you can later share them with a couple of taps. To turn on this feature, called Photo Sync, go to your timeline and tap your Photos icon.


At the bottom right, look for the Synced button. Tap this, and the app will walk you through configuration of Photo Sync. Once you’ve enabled it, tapping Synced will display those photos that have been auto-uploaded from your phone to your account. You can choose at your leisure which ones to share, and they will be posted to your Facebook timeline instantly, rather than requiring you to wait through the upload process for each one separately as you go.


There are several new features for mobile status updates, too. You can tag friends in a post, just as on the desktop version of Facebook. Begin typing a friend’s name as it appears on a Facebook account, and the app will produce a list of friends’ names that match what you’re writing. Select the name, and Facebook will insert a blue link to the friend’s own page and also alert the subject.


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Ground Zero Volunteers Face Obstacles to Compensation





On the day the terrorists flew into the World Trade Center, the Wu-Tang Clan canceled its meeting with a record mixer named Richard Oliver, so Mr. Oliver rushed downtown from his Hell’s Kitchen apartment to help out.




He said he spent three sleepless days at ground zero, tossing body bags. “Then I went home, ate, crashed, woke up,” he said. He had left his Dr. Martens boots on the landing outside his apartment, where he said they “had rotted away.”


“That was kind of frightening,” he continued. “I was breathing that stuff.”


After the Sept. 11 attacks, nothing symbolized the city’s rallying around like many New Yorkers who helped at ground zero for days, weeks, months, without being asked. Now Mr. Oliver, suffering from back pain and a chronic sinus infection, is among scores of volunteers who have begun filing claims for compensation from a $2.8 billion fund that Congress created in 2010.


But proving they were there and eligible for the money is turning out to be its own forbidding task.


The other large classes of people who qualify — firefighters, police officers, contractors, city workers, residents and students — have it relatively simple, since they are more likely to have official work orders, attendance records and leases to back them up. But more than a decade later, many volunteers have only the sketchiest proof that they are eligible for the fund, which is expected to make its first awards early this year. (A separate $1.5 billion treatment fund also was created.)


They are volunteers like Terry Graves, now ill with lung cancer, who kept a few business cards of people she worked with until 2007, then threw them away. Or Jaime Hazan, a former Web designer with gastric reflux, chronically inflamed sinuses and asthma, who managed to dig up a photograph of himself at ground zero — taken from behind.


Or Mr. Oliver, who has a terse two-sentence thank-you note on American Red Cross letterhead, dated 2004, which does not meet the requirement that it be witnessed or sworn.


“For some people, there’s great records,” said Noah H. Kushlefsky, whose law firm, Kreindler & Kreindler, is representing volunteers and others who expect to make claims. “But in some respects, it was a little bit of a free-for-all. Other people went down there and joined the bucket brigade, talked their way in. It’s going to be harder for those people, and we do have clients like that.”


As documentation, the fund requires volunteers to have orders, instructions or confirmation of tasks they performed, or medical records created during the time they were in what is being called the exposure zone, including the area south of Canal Street, and areas where debris was being taken.


Failing that, it will be enough to submit two sworn statements — meaning the writer swears to its truth, under penalty of perjury — from witnesses describing when the volunteers were there and what they were doing.


Proving presence at the site might actually be harder than proving the illness is related to Sept. 11, since the rules now allow a host of ailments to be covered, including 50 kinds of cancer, despite an absence of evidence linking cancer to ground zero.


A study by the New York City health department, just published in the Journal of the American Medical Association, found no clear association between cancer and Sept. 11, though the researchers noted that some cancers take many years to develop.


Unlike the original compensation fund, administered by Kenneth Feinberg, which dealt mainly with people who were killed or maimed in the attack, “This one is dealing with injuries that are very common,” said Sheila L. Birnbaum, a former mediator and personal injury defense lawyer, who is in charge of the new fund. “So it’s sort of a very hard process from the fund’s point of view to make the right call, and it requires some evidence that people were actually there.”


Asked how closely the fund would scrutinize documents like sworn statements, Ms. Birnbaum said she understood how hard it was to recreate records after a decade, and was going on the basic assumption that people would be honest.


In his career as a record mixer, Mr. Oliver, 56, has been associated with 7 platinum and 11 gold records, and 2 Grammy credits, which now line the walls of his condominium in College Point, Queens. He said he first got wind of the Sept. 11 attacks from a client, the Wu-Tang Clan. “One of the main guys called me: ‘Did you see what’s on TV? Because our meeting ain’t going to happen,’ ” he recalled.


Having taken a hazmat course after high school, he called the Red Cross and was told they needed people like him. “I left my soon-to-be-ex-wife and 1-year-old son and went down,” he said. “I came back three days later,” after surviving on his own adrenaline, Little Debbie cakes handed out to volunteers and bottled water. After working for three days setting up a morgue, he was willing to go back, he said, but “they said we have trained people now, thank you very much for your service.”


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Tech Giants, Learning the Ways of Washington, Brace for More Scrutiny


Mario Tama/Getty Images


Nadine Wolf demonstrated against online piracy legislation a year ago in New York. The measures were defeated.







SAN FRANCISCO — Silicon Valley lobbied hard in Washington in 2012, and despite some friction with regulators, fared fairly well. In 2013, though, government scrutiny is likely to grow. And with this scrutiny will come even greater efforts by the tech industry to press its case in the nation’s capital and overseas.




In 2012, among other victories, the industry staved off calls for federal consumer privacy legislation and successfully pushed for a revamp of an obscure law that had placed strict privacy protections on Americans’ video rental records. It also helped achieve a stalemate on a proposed global effort to let Web users limit behavioral tracking online, using Do Not Track browser settings.


But this year is likely to put that issue in the spotlight again, and bring intense negotiations between industry and consumer rights groups over whether and how to allow consumers to limit tracking.


Congress is likely to revisit online security legislation — meant to safeguard critical infrastructure from attack — that failed last year. And a looming question for Web giants will be who takes the reins of the Federal Trade Commission, the industry’s main regulator, this year. David C. Vladeck, the director of the commission’s Bureau of Consumer Protection, has resigned, and there have been suggestions that its chairman, Jon Leibowitz, would step down.


The agency is investigating Google over possible antitrust violations and will subject Facebook to audits of its privacy policy for the next 20 years. Its next steps could serve as a bellwether of how aggressively the commission will take on Web companies in the second Obama administration.


“Now that the election is over, Silicon Valley companies each are thinking through their strategy for the second Obama administration,” said Peter Swire, a law professor at Ohio State University and a former White House privacy official. “The F.T.C. will have a new Democratic chairman. A priority for tech companies will be to discern the new chair’s own priorities.”


In early 2012, an unusual burst of lobbying by tech companies helped defeat antipiracy bills, which had been backed by the entertainment industry. Silicon Valley giants like Facebook and Google feared that the bills would force them to police the Internet.


At the end of the year, Silicon Valley also got its way when the Obama administration stood up against a proposed global treaty that would have given government authorities greater control over the Web.


The key to the industry’s successes in 2012 was simple: it expanded its footprint in Washington just as Washington began to pay closer attention to how technology companies affect consumers. “Privacy and security became top-tier important policy issues in Washington in 2012,” said David A. Hoffman, director of security policy and global privacy officer at Intel.


“Industry has realized it is important to be engaged,” he continued, “to make sure government stakeholders are fully informed and educated about the role that new technology plays and to make sure any action taken doesn’t unnecessarily burden the innovation economy while still protecting individual trust in new technology.”


At the end of 2012, tech companies were on track to have spent record amounts on lobbying for the year. In the first three quarters, they spent close to $100 million, which meant that they were likely to surpass the $127 million they spent on lobbying in 2011, according to an analysis by the Center for Responsive Politics, a Washington-based nonpartisan group that tracks corporate spending. Even the venture capital firm Andreessen Horowitz hired a lobbyist in Washington: Adrian Fenty, a former mayor of the city.


Technology executives and investors also made generous contributions in the 2012 presidential race, luring both President Obama and Mitt Romney to Northern California for fund-raisers and nudging them to speak out on issues like immigration overhaul and lower tax rates.


In a blog post in November, the center said Silicon Valley’s lobbying expenditures have ballooned in recent years, even as spending by other industries has fallen.


Facebook more than doubled its lobbying outlay in the year, reporting close to $2.6 million through the third quarter of 2012. Google spent more than any other company in the industry, doling out more than $13 million in the same period and more than double its nearest competitor, Microsoft, which spent just over $5.6 million in the same period.


Among Google’s advocates on Capitol Hill is a former Republican congresswoman, Susan Molinari, who heads Google’s office in Washington.


Google has particular reason to be engaged. It faces a wide-reaching antitrust investigation by the Federal Trade Commission, just as Microsoft did a decade ago. At issue is whether Google’s search engine results favor Google products over its rivals’.


Although the agency was ready to settle that case before the holidays, without harsh remedies, late last month it shelved the inquiry and put stronger penalties back in play. A resolution is expected in January.


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Moktada al-Sadr Encourages Demonstrations in Iraq





BAGHDAD — A populist Shiite leader in Iraq, Moktada al-Sadr, expressed support on Tuesday for fresh protests against Prime Minister Nuri Kamal al-Maliki, a fellow Shiite but his political opponent, saying that Mr. Maliki bears “full responsibility” for the unrest in the country.




As with many developments in Iraq, the timing and venue of Mr. Sadr’s comments to reporters were as notable as their meaning. He spoke in Najaf, one of the holiest cities of his Shiite sect, just as Iraq ended its bloodiest year since 2009, a reflection of unabated ethnic, sectarian and political tensions among the country’s Kurdish, Arab, Sunni and Shiite populations.


Several times during the gathering, Mr. Sadr directed his remarks at Mr. Maliki, who has taken recent steps that suggested he was asserting greater control over many aspects of the government and that prompted fears he was cracking down on his political opponents. Mr. Sadr’s remarks could indicate that he is trying to test the political waters or possible support from the street before Iraq’s provincial elections, which are scheduled for the spring.


Mr. Sadr also tried to assert broader credibility for the anti-Maliki protests by comparing them to the movements that have swept many Arab countries in the past few years, calling for new government leaders and better representation.


“The Iraqi spring is coming,” Mr. Sadr said, in a tone that implied a warning to Mr. Maliki.


“We are with the demonstrators, and Parliament must be with them, not against them,” he said. “The legitimate demands of the demonstrators, by which people know what they want, should be met.”


Mr. Sadr was careful to appear moderate and to say he was speaking for all Iraqis in his remarks, which his media office distributed to journalists throughout the country. He said he supported the widespread demonstrations as long as they were peaceful and did not seek to create divisions, driving the last point home by adding that he was willing to go to Sunni-dominated Anbar Province to take part in protests.


Demonstrations against Mr. Maliki’s Shiite-dominated government erupted in Sunni areas last month in response to a raid by security forces on the office and home of the Sunni finance minister, Rafie al-Issawi. In one protest last week, tens of thousands of Sunni Muslims blocked Iraq’s main trade route to neighboring Syria and Jordan, Reuters reported.


Aside from reaction in the street, the raid had immediate political fallout. Mr. Issawi described it as a “pre-election blow” intended to weaken Mr. Maliki’s rivals. Leaders from the Sunni-dominated bloc, Iraqiya, threatened to pull out of the government and called for a no-confidence vote on Mr. Maliki.


Mr. Sadr’s voice has now added his voice to the discord that has left the country in disarray a full year after the withdrawal of American forces left seemingly intractable problems among political factions and ethnic groups.


Tensions between the Kurds in the north and the government in Baghdad, who were already at odds over sharing oil revenues, have risen as soldiers squared off with Kurdish militias after Mr. Maliki sought to consolidate his control over security in the north.


Further political uncertainty occurred at the end of 2012 when the Kurdish president, Jalal Talabani, suffered a stroke and was flown to Germany for treatment.


Sunni Arab and Kurdish officials have accused Mr. Maliki of trying to monopolize power before. In September, Tariq al-Hashimi, the vice president of Iraq and a prominent Sunni Muslim, was convicted of murder and sentenced to death in absentia on accusations that he oversaw death squads. Sunni supporters accused the Shiite-led government of trying to sideline them.


The discord has translated into bloodshed. While attacks have not been as frequent or widespread as they were during the height of the insurgency, Iraqis marked the end of 2012 with a grim milestone.


Iraq Body Count, a nonprofit group that tallies casualties, said Tuesday that civilian deaths from attacks in Iraq rose to at least 4,471 in 2012 from 4,136 in 2011, the first annual rise since 2009. Deaths during the final two weeks were still being tallied.


“Over all, 2012 has been more consistent with an entrenched conflict than with any transformation in the security situation for Iraqis in the first year since the formal withdrawal of U.S. troops,” the group said.


Yasir Ghazi reported from Baghdad, and Christine Hauser from New York.



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With a Mall Boom in Russia, Property Investors Go Shopping





MOSCOW — Shoppers who find that 250 stores aren’t enough can go ice skating, watch movies or even ride a carousel, all under a single roof.




While it sounds like the Mall of America, this mall is outside Moscow, not Minneapolis.


“I feel like I’m in Disneyland,” Vartyan E. Sarkisov, a shopper toting an Adidas bag, said recently while making the rounds of the Mega Belaya Dacha mall.


Instead of bread lines, Russia is known these days for malls. They are booming businesses, drawing investments from sovereign wealth funds and Wall Street banks, most recently Morgan Stanley, which paid $1.1 billion a year ago for a single mall in St. Petersburg.


One mall, called Vegas, rose out of a cucumber field on the edge of Moscow and became, its owners say, larger than the Mall of America if the American mall’s seven-acre amusement park is not counted in the calculation of floor space.


A few offramps away on the Moscow beltway, another mall scored a different kind of victory: the Mega Tyoply Stan shopping center drew 57 million visitors at its peak in 2007, well ahead of the 40 million annual visits reported by the Mall of America.


As American malls dodder into old age, gaptoothed with vacancies, Russia’s shopping centers are just now blossoming into their boom years, nourished by oil exports that are lifting wages.


“It’s 1982 all over again in Russia,” said Lee Timmins, the country representative of Hines, a Texas-based real estate group that is opening three outlet malls in Russia, referring to the heyday of the American mall experience. Russians, he said, love malls.


The mall boom illustrates an extraordinarily important theme in Russian economics these days. The growing crowds at malls, and the keen interest in Russian malls on the part of Wall Street banks, are signs that the emerging middle class that made up the street protests against Vladimir V. Putin in Moscow last winter is becoming a force in business as well as politics.


Investors, who with money at stake are a bellwether of the new trends, are not waiting for the next round of protests; they are already placing bets on the rise of a broad affluent class in Russia.


“Over the past 10 years, Russia has turned into a middle-class country,” Charles Slater, a retail analyst at Cushman & Wakefield, a commercial real estate consulting firm, said in an interview. “What better to do than go to an enclosed, warm environment with many things on offer, whether that be bowling, cinema or food courts, things the customers have not been used to in the past?”


Moscow now has 82 malls, including two of the largest in Europe, according to the International Council of Shopping Centers, a New York-based trade association. Both are owned by Ikea Shopping Centers Russia, the branch of the Swedish assemble-it-yourself furniture franchise that manages 14 malls here. In Russia, malls are still novel; the first Western-style suburban mall opened in 2000. They are now changing hands as developers sell to institutional investors, like Morgan Stanley, shedding light for the first time on their eye-popping values.


At the core of the attraction for investors is the rising disposable income of Russians, nudged along by policies favoring the middle class, lest their challenge to President Putin’s rule intensify.


Russia has a flat 13 percent income tax rate. Most Russians own their homes, a legacy of post-Soviet privatizations, and so pay no mortgage or rent. Health care is socialized.


Not surprisingly, then, Russians have become fanatical shoppers. Russians spend 60 percent of their pretax income on retail purchases, a category that includes food, according to Jones Lang LaSalle, a real estate consulting firm. The country in second place in Europe is Sweden, where retailing accounts for 40 percent of total private spending. Germans, by comparison, spend 28 percent of their salaries shopping, according to Jones Lang LaSalle.


Malls, where the secrets of Western capitalism were finally peeled open and laid bare, with fast food, clothes, ice rinks, electronics and appliances wherever the eye falls, have mesmerized shoppers here — much as they did in their early years in the United States, from the 1960s to the 1980s.


Olga N. Zaitsova, 55, who was in the Mega Belaya Dacha mall with her granddaughter Anastasia, said she came every weekend, drawn by the warm play area for toddlers. “It’s just not comfortable to be outside when it’s so cold,” she said.


When she shops, she said, “now we buy things we want, not things we need.”


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