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Briefs (left)

Prosecutor in Leak Case
Calls For Reporters’ Jailing

By Adam Liptak

Matthew Cooper of Time magazine and Judith Miller of The New York Times should be jailed for refusing to cooperate with a grand jury investigating the disclosure of the identity of a covert CIA operative, the special prosecutor in the case said in court papers filed Tuesday.

Last week, Time magazine provided Cooper’s notes and other documents to the special prosecutor, Patrick J. Fitzgerald, after the U.S. Supreme Court refused to hear appeals filed by the magazine and the two reporters. In Tuesday’s filing, Fitzgerald said he had reviewed the documents and determined that Cooper’s testimony “remains necessary.”

The reporters filed papers on Friday asking that they be sentenced to home confinement if incarceration is required. In case the presiding judge denied that request, Miller asked to be sent to a federal prison camp in Danbury, Conn., and Cooper to one in Cumberland, Md.

Senators Question Johnson & Johnson About Grant Use

By Stephanie Saul

The Senate Finance Committee on Tuesday began an inquiry into whether Johnson & Johnson used educational grants to promote the pediatric use of its former heartburn medication, Propulsid, even as internal company concerns mounted during the 1990s about the drug’s safety in some children.

The inquiry follows a June 10 article in The New York Times describing how, despite growing evidence linking the drug to heart problems and deaths, the company helped pay for a physician’s book recommending Propulsid’s use in children and gave grants to pediatric gastroenterology organizations that favored such use. Johnson & Johnson withdrew Propulsid in 2000 after reports of 80 heart-related deaths and 341 injuries among patients taking the medication.

In a letter on Tuesday to the company’s chief executive, William C. Weldon, Sens. Charles E. Grassley and Max Baucus cited the June 10 article and requested information and documents disclosing who received the grants, the amount of those grants and their purpose.

Levitt Named a Consultant to AIG

By Jenny Anderson

The American International Group has hired Arthur Levitt, a former Securities and Exchange Commission chairman, as a consultant to the board in an effort to quell dissent from institutional investors.

He will help evaluate potential nominees to the board and advise on corporate governance issues.

The appointment of Levitt is the latest step taken by the board to repair AIG’s reputation in the face of state and federal investigations. The New York attorney general and the New York insurance department have sued the company, a giant in commercial and life insurance, and its former top two executives, accusing them of manipulating financial statements and misleading regulators. At the same time, a New York grand jury has been convened to weigh criminal charges against individuals in the AIG case. The Justice Department and the Securities and Exchange Commission are also investigating.

While the board has been praised by regulators for moving quickly to force out its chairman and chief executive, Maurice R. Greenberg, it has also been criticized for not being vigilant and independent enough for years under Greenberg.