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Penn State to pay $59.7 million to 26 Sandusky victims

Penn State has agreed to pay $59.7 million to 26 sexual abuse victims of former assistant football coach Jerry Sandusky in exchange for an end to their claims against the university, Penn State announced Monday. Of the 26 settlements, 23 are fully signed and three are agreed to in principle, with final documentation expected within the next few weeks.

Rodney A. Erickson, the president of the university, called the settlement “another step forward in the healing process for those hurt by Mr. Sandusky, and another step forward for Penn State.”

He added, “We cannot undo what has been done, but we can and must do everything possible to learn from this and ensure it never happens again at Penn State.”

University officials emphasized that the settlement money did not come from student tuition, taxpayers or donations, but from liability insurance policies, which the university believes will cover the settlements and defense of claims brought against Penn State and its officers, employees and trustees.

—Joe Drape, The New York Times

In China, hopes of market reforms tempered by realities of politics

HONG KONG — In a political system whose lifeblood is opaque slogans, a detailed proposal for China’s economic reform ominously titled Plan 383 has created a hubbub of excitement from investors and the country’s news media.

China’s leaders are moving toward a major policy-setting conference next month bearing heady expectations that they have encouraged. The proposal from a prominent government research organization has magnified speculation that they will embrace bold pro-market reforms.

The grinding realities of politics, however, are likely to force proponents of such reforms to settle for more modest changes, experts said.

The head of the Chinese Communist Party, Xi Jinping, has repeatedly said a Central Committee conference next month will inaugurate far-reaching economic reforms. Other senior officials have also encouraged ambitious hopes for the third full gathering, or plenum, of the current Central Committee, a body with just more than 200 central and local officials as full members. The government has said the meeting will take place in November.

—Chris Buckley, The New York Times

Apple profit falls despite strong iPhone sales

SAN FRANCISCO — Unlike past years, Apple released two new iPhones in September instead of just one. The company’s financial earnings report Monday offered the first hints that the new strategy might result in stronger overall revenue. Apple reported revenue of $37.5 billion in the latest quarter, up from $36 billion in the same quarter a year ago.

Still, the two phones did not help lift the company’s profit. Apple earned $7.5 billion, or $8.26 a diluted share, in the latest quarter, down from $8.2 billion, or $8.67 a diluted share, during the same quarter last year.

The company said it sold 33.8 million iPhones, up from 26.9 million in the same quarter last year. Wall Street analysts had expected that Apple would sell 29 million to 38 million new iPhones. The lower profit may be because of slightly lower sales of Macs. The company said it sold 4.6 million Macs, compared with 4.9 million in the same quarter last year.

—Brian X. Chen, The New York Times