The Los Angeles Times from Los Angeles, California • Page 51

MONEYWORKENTERPRISE SECTION FRIDAY Cos Angeles STimc 3 MAY 30, 1997 cct MHM HIGHLIGHTS Jenny Craig Agrees to Settle Ad Complaint Tobacco Negotiators Feeling Pressure to Reach Accord Soon T3 27.C 1 DOW INDUS. AVG. 7,330.18 mt barrel similar charges against Weight Watchers International a unit of H.J. Heini Co. FTC staff members reached a draft settlement with the company, and the agency's five comr issioners are now reviewing that agreement, FTC spokeswoman Bonnie Marketing: Weight-loss firm to provide more information on success rates, risks, pricing.

No wrongdoing is admitted. Pyear U.S Jl 1 jri 6.97 T.s i 40.18 $20.97 trials, including a multibillion-dollar Mississippi case that is to start July 7, just five weeks from now. Participants say that if they can't bring a deal to Congress very soon, lawyers for Mississippi and the tobacco companies will have no basis to seek a postponement from the judge. "I don't think the prospects of a deal look too good if we don't get some JtewYork. VYI 0.60 Tj $345.90 0.47 kj 116.28 Litigation: As trial dates loom, some say talks will have to be abandoned if no deal is struck in next 10 days.

By MYRON LEVIN and HENRY WEINSTEIN TIMES STAFF WRITERS Tobacco negotiators who resumed discussions in New York on Thursday are in a race against the clock, with some participants saying that talks aimed at reaching a sweeping settlement of the industry's legal and regulatory problems will have to be abandoned if no deal is reached within the next 10 days. Casting a deepening shadow on the talks are seven approaching mega- NEWS ANALYSIS Jansen said. As with agreements reached in the early 1990s with Diet Center, NutriSystem and Physicians Weight Loss Center, Jenny Craig did not admit any wrongdoing and is not subject to any fine. "The company does not anticipate any 3 From Times Staff and Wire Reports After four years of wrangling, Jenny Craig International Inc. settled a federal deceptive-advertising complaint by agreeing to provide more complete information on success rates, health risks and pricing of its weight-loss program.

The agreement, announced Thursday by the Federal Trade Commission, is the fourth deceptive-advertising settlement in as many years with some of the nation's most popular weight-loss programs. About 8 million Americans join such diet regimens each year. The agency could be close to resolving YOUR MONEY MARKETS SMALL STOCKS HIGHER: For a fifth day, small-company stocks outperformed those of larger companies. Yields fell. D5 ENFORCEMENT ACTIONS: Authorities in 20 states unveiled a crackdown on penny-stock sales abuses by small brokerages.

D5 Jenny Craig real movement by the end of the week and certainly as of June 10, I think everybody goes home," said one negotiator who spoke on condition of anonymity. Another source close to the negotiations said that "a mood of pessimism" had set in this week. Tobacco representatives, on one side, Please see TOBACCO, D5 changes in its advertising practices as a result of today's announcement," the La Jolla-based company said in a statement. "In fact, the company strongly believes Please see WEIGHT, D5 COMPANY TOWN Jurassic Profits 80 Californians Reject Deal, Sue Prudential Insurance: Plaintiffs, seeking unspecified damages for alleged fraud, didn't want to be 'treated like sheep' in the settlement. Steven Spielberg's "The Lost World," the sequel to his 1993 blockbuster, "Jurassic Park," earned $100 million at the box office more quickly than any other film.

It is sure to become one of the most profitable films ever made, along with its predecessor. Although Universal Studios will net substantial income on its investment in the film, Spielberg could potentially walk away with even more cash than the studio. COMPANY TOWN THE BIZ: Why invest so much in summer movies? The hope of a dinosaur-size hit, Claudia Eller says. Dl 'I J- U'u t. vv, ft No Slouch at the Box Office 'The Lost World" is the first movie in history to reach 100 million at the box office after six days in theaters, beating last year's "Independence Day" by a day.

CALIFORNIA 4 -P" MOUSE TRIAL: A judge will decide whether to allow Court TV coverage of the case of an ex-Mouseketeer who is suing Disney. D2 if -i-. Movla Day Opening data The Lost World: Jurassic Park 6 May 23, 1997 Independence Day 7 July 3, 1996 Jurassic Park 9 June 11, 1993 Batman 10 June 23, 1989 Batman Forever 10 June 16, 1995 Mission: Impossible 11 May 22, 1996 Batman Returns 11 June 19, 1992 Twister 12 May 10, 1996 Terminator 2: Judgment Day 16 July 3, 1991 Source: Exhibitor Relations Co. By JESUS SANCHEZ TIMES STAFF WRITER Rejecting a nationwide legal settlement, about 80 Californians who say they were defrauded by Prudential Insurance Co. filed a class-action lawsuit against the giant insurer in Los Angeles County Superior Court on Thursday.

The California plaintiffs are among the 20,000 Prudential policyholders who have decided against joining a class-action settlement agreed upon by the firm and insurance regulators in each of the 50 state's. The plaintiffs, who say they fell prey to deceptive sales tactics practiced by Prudential agents, are seeking an unspecified amount in actual and punitive damages. Plaintiffs' attorney Kenneth R. Chiate of Pillsbury Madison Sutro in Los Angeles said his clients did not want to be "treated like sheep" by being forced to accept the nationwide settlement in which they had no involvement. In unusually blistering language for a legal document, the suit, which also involves about 30 policyholders outside of California, blasted Prudential for participating in the "largest, greediest and most Please see PRUDENTIAL, D5 to "Jurassic Park" Track Record Estimated worldwide revenues Theatrical box office rife i A FAMILY TRADITION: Chuck James, the fourth-generation head of family enterprise C.H.

James knows the value of being adaptable. The most successful movie maker in the world, Spielberg has the most lucrative deal in Hollywood. It's estimated that he earned about $300 million on "Jurassic Park" and has even more favorable terms on "The Lost World." Spielberg, who accepts no upfront salary, will share in the profits both as a director and a producer. As a director, he will earn 17.5 of all revenue that comes to Universal known in the industry as "first- dollar gross" up from 15 on "Jurassic," sources say. As a producer, through his company Amblin Entertainment, Spielberg shares 50-50 in the balance of profits with Universal after the studio recoups its production, marketing and other costs.

OTHER NEWS Total $916 million Domestic $357 million Foreign $559 million Merchandise sales (retail) $1 billion Video Total $500 million Domestic $300 million Foreign $200 million Television $150 million, including $50-million network sale to NBC Estimated profit to Universal and Spielberg $700 million Theme parks Not calculable SHOE DROPS: Nike stock fell more than 13 after the company issued a warning on profit expectations. D3 GM WARNING: Ceneral Motors, blaming strikes, said it won't meet '97 market-share goals. D3 INDEX Intel Facing Another Rival to Pentium II Technology: Cyrix chip, only slightly slower but about half the cost, could lead to price cuts. AMD has also launched challenge. The author of the books that spawned the "Jurassic" movies will earn 4 of first-dollar gross.

Crichton also took no upfront money on "The Lost World," but his share of the profits could bring him $20 million or more, well above the estimated $10 million to $15 million he earned on "Jurassic," sources say. After Universal built its Jurassic Park ride at Universal Studios Hollywood last summer, attendance Increased 35. Universal is scheduled to open a park In Florida with a Jurassic ride In the summer of 1999. Sources: Industry executives American Composite D8 Futures D9 Investor Spotlight D7 Market Roundup D6 Mutual Funds D9 Nasdaq D8 New York Composite D6 Treasury Issues D8 Los Angeles Times THE BIZ CLAUDIA ELLER Dino Soars Again By GREG MILLER TIMES STAFF WRITER Providing new competition that could help drive computer prices down, Cyrix Corp. is scheduled to unveil today a microprocessor that rivals the performance of Intel flagship Pentium products, but at a much lower cost.

The arrival of the new processor narrows what had been a wide performance gap between Richardson, Texas-based Cyrix and rivals such as Intel and Advanced Micro Devices Inc. Analysts said Intel's position atop the microprocessor industry is not threatened but that the company could be forced to cut prices on some of its latest products, including the Pentium II. "This is not going to upset Intel's apple cart," said Charles Piller, executive editor of PC World, a magazine that tested the new Cyrix chip. "But there will be pressure on Intel to move prices down." The Cyrix announcement is the second challenge Intel has faced recently. Last month, Sunnyvale, Advanced Micro Devices introduced a chip called K6 that also rivals the Pentium II.

Intel subsequently slashed prices more than usual on some of its processors. Please see CYRIX, D5 Is Your Work Adventurous? Do you have adventure in your job or career? If so, we'd like to hear from you. The Times is looking for people who are in unusual, adventurous lines of work or who have introduced excitement to traditional jobs, for inclusion in forthcoming articles. Send a brief description of your adventurous career to Careers, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053. Or fax it to (213) 237-7837, or e-mail roger.vincentIatimes.com.

Please include your name, age and telephone number. Why Invest in a Sequel? Tour Spielberg's 'World' Steven Spielberg is ambivalent about doing sequels, but it's probably safe to assume that the world's most successful director and producer has few regrets about having made a follow-up to his 1993 blockbuster, "Jurassic Park." It's also safe to assume that the other major profit participants in "The Lost World: Jurassic Park" the film's financier and distributor, Universal Pictures, and author Michael Crichton, whose books are the basis for the sequel and its predecessor are equally elated. Spielberg who cleaned up on "Jurassic," stand to make another fortune on "Lost World." Spielberg and Universal, essentially 50-50 partners on the movies, walked away with about $300 million each on "Jurassic." Spielberg's cut of the profits on "Lost World" are even greater, as is Crichton's, though the writer's are considerably less. Neither took any upfront fees. "Jurassic Park," the world's top-grossing movie of all time, netted a pure profit of close to $700 million.

Although blockbusters of this kind are rare, Hollywood studios are willing to risk upward of $100 million on their big movies in the hope of capturing such dinosaur-sized paydays. "It allows us to build value across all of our businesses from consumer products to home entertainment to theme parks," Universal Pictures Chairman Casey Silver said. Released a week ago, the "Jurassic" sequel has taken in $100 million in record speed, and industry analysts believe it has a good shot at besting the $916 million the original collected at the theatrical worldwide box office. Spielberg who now owns his own studio, DreamWorks SKG, with Jeffrey Katzenberg and David Geffen is more cautious: "In my opinion, 'The Lost World' will not equal or surpass 'Jurassic Park' either domestically or internationally," he said Thursday through a representative. The industry's rule of thumb is that sequels generally gross 60 of the originals.

"Lost World" will certainly beat those Please see THE BIZ, D4 -t- fc.flAk Ifc- -ft Jlfc J.JfcJ!IL S. An 4My 4. Jk IS 41 Mm Jh. Mt, tfc 4m. tii,.