BRIEFCASE.

Byline: - Staff and Wire Services

Boeing workers sue over bad parts

Three senior Boeing Co. employees have filed a lawsuit against the aircraft manufacturer claiming the company ignored numerous defective parts used to build airplanes.

The three employees of Boeing's commercial aircraft division in Wichita brought the lawsuit in March on behalf of the U.S. government, alleging that Boeing was aware of nearly 2,000 defective parts from Ducommun Inc. of California used in 32 of the company's airplanes.

The lawsuit became public Thursday after the U.S. Justice Department completed its investigation.

Ducommun executives were unavailable to comment, according to officials with the Carson manufacturer of parts for numerous aircraft.

Wet Seal net loss is at $8.6 million

FOOTHILL RANCH - The Wet Seal Inc. announced Friday a net loss from continuing operations of $8.6 million, or 23 cents per share, for the 13-week period ended April 30.

Included in the loss was a $5.2 million charge associated with previously announced store closures.

The company recorded a net loss from continuing operations of $15.6 million, or 52 cents per share, for the same period last year. The prior year's net loss included a tax benefit of $8.9 million.

Although the company closed 153 Wet Seal stores as part of management's effort to return the company to profitability, sales increased over the prior year's quarter due to a nearly 30 percent increase in comparable store sales.

ConAgra Foods to settle lawsuit

LINCOLN, Neb. - ConAgra Foods will pay $14 million to settle a lawsuit over fictitious sales and misreported earnings at a former subsidiary.

Omaha-based ConAgra announced in May 2001 that accounting problems at its subsidiary, United Agri Products, would result in $120 million in lower earnings for 1998 through 2000.

The lawsuit was filed on behalf of investors who held ConAgra stock between Aug. 28, 1998, and May 23, 2001. It alleged ConAgra and several of the company's officers and directors violated federal securities laws by misrepresenting the company's financial performance to inflate its stock value.

ConAgra sold United Agri Products in 2003.

Terms of the settlement were approved this week by U.S. District Judge Richard Kopf.

Hewlett-Packard offers ID system

PALO ALTO - Hewlett-Packard Co. entered the debate over whether countries should have electronic identity systems by launching new technology Friday that helps governments keep track of citizens.

The Palo Alto-based technology company's National Identity System software runs on Microsoft systems including the .Net line of servers and database software. The system captures and stores demographic and biometric data so agencies or customs offices throughout a country can access an online registry.

Government agencies in Israel, Poland, Slovakia and Bulgaria already use some HP software, executives said. The Italian Ministry of Interior uses HP's technology to provide electronic national identity documents for all citizens.

Investment bank Morgan Keegan estimates that organizations will purchase $4.8 billion in identity management systems this year. But consumer groups and politicians worry about the privacy implications.

Microsoft severs its ties with Reed

SEATTLE - Microsoft Corp. said Friday it has severed ties with Ralph Reed, a Republican lobbyist who once headed the Christian Coalition and who is running for lieutenant governor in Georgia.

The move came a month after liberal activists urged Microsoft to quit using Reed as a political consultant, upset that the software company had pulled its support for a gay rights bill it had backed in the past. The company has since said it will support such legislation in the future.