Why Bill Ackman Went on a Three-Hour Rant Against Herbalife

Is Herbalife (HLF) “the best-managed pyramid scheme in the history of the world,” as fund manager William “Bill” Ackman suggests? Is the maker of weight-loss and nutrition products being unfairly maligned by a man who will make money if investors flee the stock? Did you care about Herbalife before Ackman issued a marathon critique of its business on Dec. 20? You may well not own the stock, as it’s not exactly a blue chip play. But now that Herbalife Chief Executive Officer Michael Johnson and Ackman are blasting each other on the media circuit, the question is what to make of this drama.

This isn’t your typical short-seller’s fight. Start with the fact that Ackman presented his case against Herbalife at a special complimentary event hosted by the Sohn Conference Foundation. The Sohn Conference, now in its 17th year, famously brings together billionaire investors each summer to share their top investment picks and raise money for pediatric cancer research. This is the first time it has held an event featuring one person, according to organizers. The reason became clear at the end of Ackman’s three-hour show: Any money he makes on this bet will go to charity, with $ 25 million slated for Sohn regardless of how it turns out.

Why not make a ton of money and use just some of it for a good cause, as Ackman normally does? Because profiting from Herbalife’s alleged exploitation of its distributors feels like “blood money,” Ackman said. His goal: to let the Federal Trade Commission take this research and shut the company down. Herbalife’s Johnson, meanwhile, is calling on the U.S. Securities and Exchange Commission to pursue Ackman for “blatant market manipulation.”

The most intriguing thing about Ackman’s high-profile crusade against Herbalife is the fact that Ackman launched it. The founder of Pershing Square Capital Management is best known these days as an activist investor who buys up huge stakes in such companies as Canadian Pacific (CP), JC Penney (JCP), and Target (TGT) to force changes he hopes will drive up the stock price. While he made more than $ 1 billion by betting against bond insurer MBIA (MBI), Ackman prefers to put his money on businesses that can improve, vs. those poised to crash.

All the more reason to wonder why he has spent more than a year researching the case against a company that’s arguably an easy target. Multilevel marketing companies, from Avon (AVP) to Amway, have long dealt with criticism that they’re built on the backs of gullible distributors. People make an upfront investment to sell products on behalf of the company—usually to family and friends—in the hope that they’ll make a decent commission from the sales. Moreover, they’re rewarded for recruiting others to do the same. For most sellers, that system rarely leads to a lucrative income. For investors, the question is what portion of sales are fueled by signing up new recruits vs. selling to consumers who want the products.

In Herbalife’s case, Ackman contends, it’s not much. The model is so stretched worldwide—Ackman used the term “pancake scheme”—that Herbalife has resorted to selling weight loss products in Ghana. (With KFC (YUM) making major inroads there, that might not be a bad thing.) Ackman’s not the first to make that case. David Einhorn of Greenlight Capital, well-known for his success in shorting stocks, was asking tough questions of Herbalife’s management months ago. The SEC even looked into the matter.

Although Johnson was brimming with vitriol on Dec. 19, when the Herbalife CEO told CNBC that the world would be better off without Ackman, the company e-mailed a statement after the Sohn Conference presentation to say the inaccuracies were too “numerous” to address right now and to further complain about having been denied a chance to participate.

What we do know is that Bill Ackman hates this flavor of multilevel selling so much that he’s planning to put up a website to warn people against seeking a career through Herbalife. He’s used to being a shareholder’s friend in fighting management, not some villain who profits from others’ misfortune. Try telling that to Fidelity, Herbalife’s largest investor with more than 17 million shares in its funds. While a spokeswoman says the firm doesn’t comment on individual holdings, it has also been selling down its stake in recent months. Herbalife will need to find some fresh recruits.

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Wounded presage health crisis for postwar Syria

ATMEH, Syria (AP) — A baby boy joined the ranks of Syria’s tens of thousands of war wounded when a missile fired by Bashar Assad‘s air force slammed into his family home and shrapnel pierced his skull.

Four-month-old Fahed Darwish suffered brain damage and, like thousands of others seriously hurt in the civil war, he will likely need care well after the fighting is over. That’s something doctors say a post-conflict Syria won’t be able to provide.

Making things worse, there has been a sharp spike in serious injuries since the summer, when the regime began bombing rebel-held areas from the air, and doctors say a majority of the wounded they now treat are civilians.

This week, Fahed was recovering from brain surgery in an intensive care unit, his head bandaged and his body under a heavy blanket, watched over by Mariam, his distraught 22-year-old mother.

She said that after her first-born is discharged from the hospital in Atmeh, a village in an area of relative safety near the Turkish border, they will have to return to their village in a war zone in central Syria.

“We have nowhere else to go,” she said.

Even for those who have escaped direct injury, the civil war is posing a mounting health threat. Half the country’s 88 public hospitals and nearly 200 clinics have been damaged or destroyed, the World Health Organization says, leaving many without access to health care. Diabetics can’t find insulin, kidney patients can’t reach dialysis centers. Towns are running out of water-purifying materials. Many of the hundreds of thousands displaced by the fighting are exposed to the cold in tents or unheated public buildings.

“You are talking about a public health crisis on a grand scale,” said Dr. Abdalmajid Katranji, a hand and wrist surgeon from Lansing, Michigan, who regularly volunteers in Syria.

No one knows just how many people have been injured since the uprising against Assad erupted in March 2011, starting out with peaceful protests that turned into an armed insurgency in response to a violent government crackdown.

More than 43,000 have been killed in the past 21 months, said Rami Abdul-Rahman, head of the Britain-based Syrian Observatory for Human Rights, basing his count on names and details provided by activists in Syria. He said the number of wounded is so large he can only give a rough estimate, of more than 150,000.

Casualties began to rise dramatically at the start of the summer. At the time, the regime, its ground troops stretched thin, began bombing from the air to prevent opposition fighters from gaining more territory.

Seemingly random bombings have razed entire villages and neighborhoods, driving terrified civilians from their homes, with an estimated 3 million Syrians out of the country’s population of 23 million now displaced.

About 10 percent of the wounded suffer serious injuries and many of those will need long-term care and rehabilitation, said Dr. Omar Aswad of the Union of Syrian Medical Relief Organizations, an umbrella for 14 aid groups.

This includes artificial limbs and follow-up surgery. “This is of course not available and will be one of the major (health) problems in the months right after the war,” said Mago Tarzian, emergency director for the Paris-based Doctors Without Borders.

For now, aid groups are struggling to provide even emergency treatment in under-equipped clinics.

The two dozen small hospitals and field clinics in rebel-run areas of Idlib province in the north only have a few Intensive Care Unit beds between them, said Aswad. None has a CT scanner, an important diagnostic tool.

“We need generators, we need medical supplies and the most pressing is medicine,” he said.

The challenge has been compounded by new types of injuries.

The regime has begun dropping incendiary bombs that can cause severe burns, according to the New York-based Human Rights Watch, citing amateur video and witness accounts.

Ole Solvang, a researcher for the group, said he saw remnants of such a bomb on a recent Syria trip. Aswad said doctors in Idlib and nearby Aleppo province reported seeing patients with burns from such weapons.

Doctors and hospitals have also been targeted. Aswad, who fled the city of Idlib in March after regime forces entered it, said five friends in a secret association of anti-regime physicians have been arrested. Hospitals, ambulances and doctors have been attacked, Solvang said, calling it “a worrying trend that makes the medical situation even worse.”

One of the bright spots is a 50-bed emergency care clinic set up six weeks ago in a former elementary school in Atmeh.

Largely funded by a wealthy Syrian expatriate, the Orient clinic, with five ICU beds, handles some of the most serious cases in a radius of some 150 kilometers (90 miles), said its director, orthopedic surgeon Abdel Hamid Dabbak.

In the past, seriously wounded patients had to go to Turkey, risking dangerous delays at the border, he said. Now, once patients are stabilized in Atmeh, they are sent to a sister clinic across the border for follow-up care.

In Orient’s ICU, a 24-year-old rebel fighter was breathing oxygen through a mask. He had been brought in a day earlier, bleeding heavily from stomach wounds and close to death, said Dr. Maen Martini, a volunteer physician from Joliet, Illinois. After surgery, he stabilized and was taken off a respirator. A delayed crossing into Turkey would have killed him, Martini said.

The fighter’s neighbor was little Fahed, whose house had been struck by a missile on Saturday in the village of Kafr Zeita in Hama province. “The roof collapsed on us,” his mother said of the attack. “We ran out … I saw him bleeding from his head, but it was just a small cut.”

The local clinic said the injury was more serious than it seemed and the family rushed to Atmeh, more than 100 kilometers (60 miles) to the north.

Since surgery, Fahed has been nursing and has moved his arms and legs, and the doctor is hoping for a near-complete recovery.

“Clinically, he has improved dramatically,” he said.

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North Korean Video Game Has Western Ties

Video games represent a true luxury for most North Koreans living in a country where even the elite have only hours of electricity each day. That has not stopped a Western company in the capital city of Pyonyang from creating what may be the first North Korean game widely available online.

The game, called “Pyongyang Racer,” is a simple Web browser game that allows players to drive a car around North Korea’s capitol city of Pyongyang, according to Beijing Cream. Players must avoid hitting cars and collect gasoline in the form of petrol barrels to keep their run going as long as possible — all while getting warnings from one of Pyongyang’s famously picturesque traffic girls.

“Pyongyang Racer” has an unusual development history as a video game. The North Korean programmers who made the game work for Nosotek, a Western company that describes itself as the “first western IT venture” in North Korea.

Nosotek’s North Korean programmers previously made mobile-phone games based on the Hollywood films “The Big Lebowski” and “Men in Black.” Those games ended up getting published through a subsidiary of Rupert Murdoch‘s News Corp (owner of Fox News), according to Bloomberg News.

Nosotek claims to have “attracted the cream of local talent as the only company in Pyongyang offering Western working conditions and Internet access.” That would likely be true in North Korea, given the nuclear-armed country’s pariah status among Western countries and businesses.

The Nosotek website also praises the advantages of working in North Korea because “IP secrecy and minimum employee churn rate are structurally guaranteed.” Translation: North Korean programmers would likely never leave Nosotek with the company’s intellectual property secrets because they have practically no other employment options.

Nosotek built the game for Koryo Tours, a company based in Beijing, China, to distribute “Pyongyang Racer” through the Koryo Tours website. Koryo Tours is currently the leading company that runs tours of secretive North Korea for Westerners and other foreigners.

“This game was developed in 2012 and is not intended to be a high-end technological wonder hit game of the 21st century, but more a fun race game (arcade style) where you drive around in Pyongyang and learn more about the sites and get a glimpse of Pyongyang,” Koryo Tours said on the game’s website.

This story was provided by TechNewsDaily, a sister site to LiveScience. You can follow TechNewsDaily Senior Writer Jeremy Hsu on Twitter @jeremyhsu. Follow TechNewsDaily on Twitter @TechNewsDaily, or on Facebook.

Copyright 2012 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Leah Remini sued by former managers over “Family Tools” commissions

LOS ANGELES (TheWrap.com) – Leah Remini‘s new TV gig is already giving her a headache, months before it even starts. Former “King of Queens” star Remini is being sued by her former managers, the Collective Management Group, which claims that it’s owed $ 67,000 in commissions relating to her upcoming ABC comedy “Family Tools,” which debuts May 1.

In a complaint filed with Los Angeles Superior Court on Tuesday, the Collective says that it entered into an agreement with the actress in November 2011 that guaranteed the company 10 percent of the earnings that emerged from projects that Remini “discussed, negotiated, contemplated, or procured/booked during Plaintiff’s representation of Remini,” regardless of whether the income was earned after she and the Collective parted ways.

According to the lawsuit, that would include the $ 1 million that it says Remini will earn for the first season of “Family Tools.” (The suit allows that it isn’t owed commission on a $ 330,000 talent holding fee that Remini received from ABC prior to officially being booked on the show.)

Remini, pictured above wearing the self-satisfied smirk of someone who just might stiff her former managers out of their commission, terminated her agreement with the Collective “without warning or justification” in October, the suit says.

Alleging breach of oral contract among other charges, the suit is asking for an order stipulating that it’s owed the $ 67,000, plus unspecified damages, interest and court costs.

Remini’s agent has not yet responded to TheWrap’s request for comment.

(Pamela Chelin contributed to this report)

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Allscripts names new CEO to spearhead recovery

(Reuters) – Embattled healthcare technology firm Allscripts named its board member and former chief operating officer of rival Cerner Corp Paul Black as its CEO, replacing Glen Tullman, and said it ended a review of strategic alternatives.

The move, effective immediately, raises new questions for the direction of Allscripts Healthcare Solutions Inc after activist shareholder HealthCor Management installed three of its nominees to the company’s board last summer, following a bitter fight with Tullman.

Allscripts has struggled to boost new business following its acquisition of Eclipsys Corp in 2010. It had hoped to expand into software and equipment for hospitals and healthcare systems with that purchase but ended up losing business to Cerner Corp and closely held Epic Systems Corp.

The company, which has been the subject of takeover interest, also said on Wednesday that Lee Shapiro would step down as president.

Allscripts shares, which have nearly halved in value this year, were down 19 percent at $ 8.70 in extended trade on Wednesday. They had closed at $ 10.68 earlier on the Nasdaq.

“Both Glen and the board of directors believe that after Glen’s 15 years of leadership, it is the right time now for a new leader to focus on execution, position the company to deliver shareholder value and lead Allscripts through its next phase of growth,” Allscripts spokeswoman Ariana Nikitas said.

Tullman’s resignation comes months after Healthcor cited problems with his leadership and demanded his ouster.

“I think Glen has been under a lot of pressure since the attempted coup by former board members and HealthCor demanded some changes and Allscripts agreed to put some of HealthCor’s appointees on the board,” said Anthony Vendetti, an analyst at Maxim Group, adding he has personally known Tullman since he became CEO.

Black left Cerner in 2007 after more than 12 years with the company, helping to make it a market leader with more than $ 1.5 billion of annual revenues and playing an instrumental role in its double-digit organic growth, Allscripts said.

“I think (Black) is the ideal candidate for CEO,” said Vendetti, who has a “buy” rating on Allscripts stock and a price target of $ 15.

“We view this news positively as Mr. Black is well regarded in the industry. With that said, we maintain our neutral rating for the time being,” Steven Halper of Lazard Capital Markets wrote in a note.

LONG ROAD TO GROWTH

Allscripts stock has fallen more than 42 percent this year amid weak bookings that hampered sales and profit.

The company withdrew its full-year outlook in November, as it began to consider strategic alternatives. Later that month, Reuters reported that Blackstone Group LP had emerged as the frontrunner to buy the company but that the two sides were far apart on price and a deal was highly uncertain, according to people familiar with the matter.

Black is no stranger to the buyout industry, having served as operating executive of Genstar Capital LLC, a private equity firm, and senior advisor at New Mountain Finance Corporation, an investment management company.

His background may come in handy as he seeks to turn around the company’s financial performance in a difficult environment for healthcare IT firms. These companies face a dwindling customer base as hospitals consolidate physician practices into their existing vendors.

“The expectation is that it will take some time (for the company) to fundamentally turn around its business,” analyst Vendetti said. He added that Allscripts’ main goal should be to re-establish client trust in their products and the ability to integrate their product portfolio.

A comment in the Allscripts statement from Tullman, who had been CEO since 1997, made no reference to the reasons for his departure. He said he was confident that Allscripts was in good hands and had a bright future ahead.

Analyst Halper said he remained concerned about the long-term growth prospects of the company.

“With the selection of Paul Black, hopefully the company can redefine its strategic direction,” Halper said.

(Additional reporting by Ransdell Pierson and Greg Roumeliotis in New York; Editing by Gary Hill, Saumyadeb Chakrabarty and Muralikumar Anantharaman)

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U.S. “fiscal cliff” talks turn sour, Obama threatens veto

WASHINGTON (Reuters) – Talks to avoid a U.S. fiscal crisis stalled on Wednesday as President Barack Obama accused opponents of holding a personal grudge against him while the top Republican negotiator called the president “irrational.”

As a year-end deadline nears, Obama and House of Representatives Speaker John Boehner are locked in intense bargaining over a possible deal to avoid the so-called fiscal cliff of harsh tax hikes and automatic spending cuts that could badly damage an already weak economy.

Obama said he was puzzled over what was holding up the talks and told Boehner‘s Republicans to stop worrying about scoring “a point against the president” or forcing him into concessions “just for the heck of it.”

“It is very hard for them to say yes to me,” he told a news conference in the White House. “At some point, you know, they’ve got to take me out of it.”

The rise in tensions threatens to unravel significant progress made over the last week.

Boehner and Obama have each offered substantial concessions that have made a deal look within reach. Obama has agreed to cuts in benefits for seniors, while Boehner has conceded to Obama’s demand that taxes rise for the richest Americans.

However, the climate of goodwill has evaporated since Republicans announced plans on Tuesday to put an alternative tax plan to a vote in the House this week that would largely disregard the progress made so far in negotiations.

On Wednesday, Obama threatened to veto the Republican measure, known as “Plan B,” if Congress approved it.

Boehner’s office slammed Obama for opposing their plan, which would raise taxes on households making more than $ 1 million a year and is a concession from longstanding Republican opposition to increasing any tax rates.

“The White House’s opposition to a backup plan … is growing more bizarre and irrational by the day,” Boehner said through his spokesman, Brendan Buck.

Boehner expressed confidence the House would pass the legislation on Thursday. He urged Obama to “get serious” about a balanced deficit reduction plan.

Wall Street is on edge over the fiscal cliff talks although investors still expect a deal. The S&P 500 stock index slipped 0.76 percent on Wednesday.

Business leaders have descended on Washington to lobby for a deal to avoid going over the cliff while putting public finances on a more sustainable path. Without an agreement to narrow deficits over the long run, the United States could eventually lose investors’ trust, triggering a debt crisis.

An acrimonious presidential campaign that culminated in Obama’s re-election on November 6 has added to the bad blood in Washington between Obama and congressional Republicans.

The two sides also clashed bitterly last year over the government’s limit on borrowing – known as the debt ceiling – an episode that nearly led the nation to default on its debt.

On Wednesday, Obama said the fiscal cliff must not get bogged down with negotiations over the debt ceiling, an issue that must be dealt with again early next year.

But Boehner’s offer to raise the debt ceiling enough for another year of borrowing is facing opposition from a large group of Republicans, a House Republican aide said.

LITMUS TEST

Any fiscal cliff agreement by Obama and the Republican leadership would need the support of their parties’ rank and file in Congress, and Thursday’s vote on Plan B will be a test of Boehner’s ability to deliver votes on any eventual deal.

Boehner faces opposition from Republican Tea Party conservatives over his concession to raise tax rates. But in a sign some conservatives are coming around to Boehner’s position, anti-tax activist Grover Norquist gave his blessing to the bill.

Other conservative groups, including the influential Club for Growth, are urging Republicans to vote against Plan B.

Obama and Boehner appear to have bridged their biggest ideological differences but remain hung up on the mix of tax hikes and spending cuts meant to narrow the budget gap.

“What separates us is probably a few hundred billion dollars,” Obama said.

The White House wants taxes to rise on household incomes above $ 400,000 a year, a concession from Obama’s opening proposal for a $ 250,000 income threshold.

If a deal is not reached soon, some $ 600 billion in tax hikes and spending cuts are set to begin next month.

Senior administration officials described negotiations as at a standstill and Obama warned he would ask everyone involved in the talks, “what it is that’s holding it up?”

Still, the top Republican in the Senate said a resolution to the stalemate could come by the end of the week.

“There’s still enough time for us to finish all of our work before this weekend, if we’re all willing to stay late and work hard,” said Senate Republican leader Mitch McConnell.

Many Democrats dislike the president’s offer to reduce benefits to seniors, although some political allies of Obama have given signs they feel they could swallow this concession.

“I don’t like these particular changes,” said Democratic Representative Chris Van Hollen, a member of the House leadership from Maryland. But he added: “What people are seeing is the president willing to compromise in order to get things done.”

(Additional reporting by Roberta Rampton, Thomas Ferraro and Vicki Allen; Kim Dixon and Richard Cowan; Writing by Jason Lange; Editing by Alistair Bell and Eric Beech)

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Worries grow in east Congo with fighter buildup

DAKAR, Senegal (AP) — Aid workers warned Wednesday that armed groups are setting up new front lines in and around the city of Goma in eastern Congo, where the U.N. said it now has documented at least 126 rape cases last month.

Thousands of fighters from the M23 rebel group withdrew several weeks ago from Goma, and the fighters have since taken steps toward negotiating with the Congolese government.

However, residents in Goma say M23 and other armed fighters are now positioning themselves in an around the city — including inside camps for people displaced by the violence.

The arrival of several thousand fighters within the last week is prompting fear among civilians, who already have experienced years of fighting and rebellions, said Tariq Riebl, Oxfam’s humanitarian coordinator there.

“They are very concerned — people are seeing this and they don’t know what it means,” he said. “I think what everyone is scared about is that it seems like people are ramping up, ramping up but for what purpose?”

Oxfam warns that more than 1 million people could come under attack if violence again flares in Goma, where more than 100,000 people already have fled from elsewhere in the region.

“Goma is typically the last refuge safe haven and now it’s being directly called into question. If Goma falls in a big battle, where are people going to go?” Riebl said.

“This is very, very disconcerting because you have a population of over 1 million people and if war were to break out, we’re looking at a horrific situation.”

The M23 rebel group, which is believed to be backed by neighboring Rwanda, is made up of hundreds of soldiers who deserted the Congolese army in April.

They took control of many villages and towns in the mineral-rich east over the last seven months, culminating in the seizure of Goma on Nov. 20. It took days of negotiations and intense international pressure, including from the U.N., for the thousands of fighters from M23 to finally withdraw from the regional capital.

The U.N. mission says it’s received allegations of serious rights violations, including killings and wounding of civilians, rape, looting, and forced recruitment of children, by elements of the M23 rebels in Goma and neighboring areas.

Congo’s armed forces are also blamed for a series of attacks as they fled Goma in retreat in late November.

The U.N. said Tuesday it now has been able to document at least 126 rapes during that period in the Minova area, about 60 kilometers (40 miles) south of Goma.

U.N. spokesman Martin Nesirky said that two Congolese soldiers so far have been arrested in connection with the rapes, while seven others had been implicated in looting in the area.

“The Congolese Armed Forces have started investigating those human rights violations,” he said. “The U.N. Mission is supporting the military justice procedure in conducting thorough investigations into these allegations to ensure that the perpetrators are identified and held accountable.”

Rape has long been used as a brutal weapon of war in eastern Congo, where both soldiers and various armed groups use sexual violence to intimidate, punish and control the population.

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Kodak in $525 million patent deal, eyes bankruptcy end

(Reuters) – Eastman Kodak Co agreed to sell its digital imaging patents for about $ 525 million, a key step to bringing the photography pioneer out of bankruptcy in the first half of 2013.

The deal for the 1,100 patents allows Kodak to fulfill a condition for securing $ 830 million in financing.

The patent deal was reached with a consortium led by Intellectual Ventures and RPX Corp, and which includes some of the world’s biggest technology companies, which will license or acquire the patents.

Those companies are Adobe Systems Inc, Amazon.com Inc, Apple Inc, Facebook Inc, Fujifilm, Google Inc, Huawei Technologies Co Ltd, HTC Corp, Microsoft Corp, Research In Motion Ltd, Samsung Electronics Co Ltd and Shutterfly Inc, according to court documents.

Kodak still must sell its personalized and document-imaging businesses as part of the financing package, and also has to resolve its UK pension obligation.

Kodak said the patent deal puts it on a path to emerge from Chapter 11 in the first half of 2013.

“Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company,” said Antonio Perez, chairman and chief executive of the Rochester, New York-based company.

The patent portfolio was expected to be a major asset for Kodak when it filed for bankruptcy in January. An outside firm had estimated the patents could be worth as much as $ 2.6 billion.

Kodak’s patents hit the market as intellectual property values have soared and technology companies have plowed money into patent-related litigation.

For example, last year Nortel Networks sold 6,000 wireless patents in a bankruptcy auction for $ 4.5 billion and earlier this year Google spent $ 12.5 billion for patent-rich Motorola Mobility.

But Kodak’s patent auction dragged on beyond the initial expectation that it would be wrapped up in August. One patent specialist blamed those early, overly optimistic valuations, which he said encouraged Kodak’s team to set their sights too high.

“Unfortunately (Kodak management) was misled into thinking it was worth billions of dollars and it wasn’t,” said Alex Poltorak, chairman of General Patent Corp, a patent licensing firm. “I think they sold them at a very good price.”

He said after Google acquired Motorola, the search engine company no longer needed patents at any price, deflating the intellectual property market.

Kodak traces its roots to the 19th century and invented the handheld camera. But it has been unable to successfully shift to digital imaging.

It will likely be a different company when it exits bankruptcy, out of the consumer business and focused instead on providing products and services to the commercial imaging market.

The patent sale is subject to approval by the U.S. Bankruptcy Court in Manhattan.

The Kodak bankruptcy case is in Re: Eastman Kodak Co. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.

(Reporting by Tom Hals in Wilmington, Delaware and Sruthi Ramakrishnan in Bangalore; Editing by Nick Zieminski,; John Wallace and Peter Galloway)

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“Zero Dark Thirty” won’t be “Hurt Locker” at the Box Office

LOS ANGELES (TheWrap.com) – Kathryn Bigelow‘s Osama bin Laden manhunt thriller “Zero Dark Thirty” hits theaters Wednesday, and when it comes to the box office, this isn’t going to be “Hurt Locker.”

That was Bigelow’s last film, a gritty Iraq war drama that upset “Avatar” for Oscar’s Best Picture in 2009 but took in just $ 17 million domestically. “Zero Dark Thirty” could well top $ 100 million, say industry analysts – and if the awards season breaks the right way for the Oscar Best Picture front-runner, it could go higher than that.

“ZDT” and this year’s winner of the Palme d’Or at the Cannes Film Festival, “Amour,” are making limited debuts Wednesday, while the Barbra Streisand-Seth Rogen comedy “Guilt Trip” and a 3D re-release of “Monsters Inc.” go into wide release.

Six more movies will roll out on Friday, including Judd Apatow‘s “This Is 40″ and the Tom Cruise starrer “Jack Reacher,” in what Hollywood is hoping will be a very busy pre-holiday week at the box office.

In the course of detailing the killing of Bin Laden, “ZDT” is an examination of the nation’s war on terror, its prosecution and its effect on America’s collective psyche, and that will help, not hurt, the film at the box office, Exhibitor Relations Senior analyst Jeff Bock told TheWrap.

“This movie is about the biggest American war story since Pearl Harbor,” Bock said. “The American people are at a place now where they are ready to look back and really think about what we’ve been through.

“This movie, particularly if it keeps getting awards buzz, is going to be talked about everywhere, and if you want to have an opinion, you’re going to have to see it.”

Despite all the newcomers arriving Wednesday and Friday, Peter Jackson’s “The Hobbit” is expected to continue dominating. It took in about $ 7 million Monday – on the heels of its $ 85 million debut weekend – and should cross the $ 100 million mark Tuesday

Sony Classic is rolling out “Amour,” Michael Haneke‘s dark and unsparing look at old age and death, at two theaters in New York and one in L.A. The French-language film was recently named the best film of 2012 by the Los Angeles Film Critics Association, giving it an important boost during a season in which its chances outside the Oscar foreign-language category hinge on getting Academy voters to see it.

That honor stopped an awards run by “Zero Dark Thirty,” which Sony is rolling out on five screens. The intense tale had won the top award with the New York Film Critics Circle, the National Board of Review, the Boston Film Critics Society and the New York Film Critics Online.

“ZDT” was produced by Megan Ellison’s Annapurna Pictures for about $ 45 million.

Sony’s plan is to go wide with it release on January 11 after the Academy Award nominations.

Beside the film itself and director Bigelow, her producing partner Mark Boal is a good bet for an Best Adapted Screenplay nomination, as is Jessica Chastain in the Best Actress category. All of those earned Golden Globes nominations in those categories.

The gritty and gripping tale is a critical favorite – it has a 97.7 percent rating at Movie Review Intelligence – but a lightning rod for political criticism, from both the left and right of the political spectrum. Some critics have charged the film is an apology for U.S. interrogation tactics that included waterboarding, while others say it’s intended to boost the image of President Obama.

“Our agenda isn’t a partisan agenda – it’s an agenda of trying to look behind the scenes at what went down,” screenwriter Boal told TheWrap earlier. “Hopefully art or cinema can present a point of view that’s a little above the political fray, but that doesn’t mean the political narrative doesn’t try to assert itself and pull you back in.”

“Amour” is a co-production between companies in Austria, France and Germany. It is Austria’s entry and a favorite in Oscar’s Best Foreign Language category, and it has a shot at a Best Picture nomination, too.

Jean-Louis Trintignant and Emmanuelle Riva star as Anne and George, an elderly couple who are retired music teachers and have a daughter (Isabelle Huppert) living abroad. The story, which Haneke wrote and directed based on a similar experience in his own family, focuses on what happens when Anne suffers a stroke.

It was nominated in six categories at the recent European Film Awards and won four, including Best Film and Best Director. The L.A. Film Critics named the 85-year-old Riva co-Best Actress (with Jennifer Lawrence in “Silver Linings Playbook”), and she has an outside shot an Oscar nomination in that category.

“Guilt Trip” is Streisand’s first film foray since “Little Fockers,” which debuted around the same time of year in 2010 for Universal – and her first starring role since 1996′s “The Mirror Has Two Faces.”

“Little Fockers,” a sequel to “Meet the Fockers,” opened to $ 30 million and went on to make $ 148 million. Distributor Paramount will be happy if the PG13-rated “Guilt Trip,” which will be on about 2,300 screens, can match half that debut.” The analysts are looking for it to wind up around $ 12 million.

It’s one of three Paramount releases this week; the Tom Cruise thriller “Jack Reacher” and concert film “Cirque du Soleil: Worlds Away” debut Friday.

“They all play to distinctly different demographics, Paramount’s head of distribution Don Harris told TheWrap, “so other than being really busy, we don’t have any problem with these three all in the marketplace.”

What could provide some tough competition is Judd Apatow‘s R-rated comedy “This Is 40,” which Universal is rolling out on roughly 2,900 screens Friday.

Disney will have its 3D version of its 2001 animated hit “Monsters Inc.” in 2,400 theaters. It will be the third 3D re-release of a Disney film this year. The first two did unspectacular but solid business, particularly when you consider the only cost to the studio is the 3D conversion and marketing.

A 3D version of “Beauty and the Beast” debuted to $ 17 million in July and went on to make $ 47 million. In September, a converted “Finding Nemo” took in $ 16 million in its first week and wound up at $ 41 million.

Between “The Hobbit,” the holdover kids holiday film “Rise of the “Monsters Inc.” and a very crowded marketplace, “Monster Inc.” will have a tough time matching those numbers.

Movies News Headlines – Yahoo! News

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French psychiatrist sentenced after patient commits murder

MARSEILLES, France (Reuters) – A French psychiatrist whose patient hacked an elderly man to death was found guilty of manslaughter on Tuesday in a groundbreaking case that could affect the way patients are treated.

A court in Marseilles said Daniele Canarelli, 58, had committed a “grave error” by failing to recognize the public danger posed by Joel Gaillard, her patient of four years.

Gaillard hacked to death 80-year-old Germain Trabuc with an axe in March 2004 in Gap, in the Alps region of southeastern France, 20 days after fleeing a consultation with Canarelli at Marseilles’s Edouard Toulouse hospital.

Canarelli was handed a one-year prison sentence and ordered to pay 8,500 euros to the victim’s children, in the first case of its kind in France. Defense lawyers said the ruling would have serious repercussions for treatment of the mentally ill.

“If a psychiatrist lives in fear of being sentenced, it will have very real consequences and probably lead to harsher treatment of patients,” said Canarelli’s lawyer, Sylvain Pontier.

The court said Canarelli should have requested Gaillard be placed in a specialized medical unit or referred him to another medical team, as one of her colleagues suggested. Her stubborn refusal had equated to a form of “blindness”, the court president Fabrice Castoldi said.

Gaillard had already been forcibly committed to a secure hospital on several occasions for a series of increasingly dangerous incidents.

The victim’s son, Michel Trabuc, said he hoped the case would set a legal precedent.

“There’s no such thing as zero risk, but I hope this will move psychiatry forward and, above all, that it will never happen again,” he said.

Gaillard was not held responsible for his actions and was freed under medical supervision.

(Reporting by Jean-François Rosnoblet; Writing by Vicky Buffery; Editing by Alison Williams)

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