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UPDATE: Election commission decides to keep Duggan on the ballot

Breaking News - Original 05-23-2013 Hits:817 AJ Williams, Chronicle Web Editor - avatar AJ Williams, Chronicle Web Editor

UPDATE: Election commission decides to keep Duggan on the ballot

Today the election commission decided to keep mayoral candidate, Mike Duggan on the ballot despite Tom Barrow's claim Duggan was ineligible to run for mayor. The commission concluded a candidate must be a qualified resident and registered voter in the city of Detroit one year prior to the filing deadline.  

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Mayor Bing Announces AAA Michigan Support for Fire Equipment

Breaking News - Original 05-16-2013 Hits:387 Cathy Nedd - avatar Cathy Nedd

Mayor Bing Announces AAA Michigan Support for Fire Equipment

    Detroit Mayor Dave Bing announced today that AAA Michigan will donate $23,500 to the Detroit Public Safety Foundation to pay for the inspection of 20 aerial ladders and 4,600 feet of ground ladders used by the Detroit Fire Department (DFD).  The gift is the latest in a recent series of recent corporate donations in support of the City of Detroit’s public safety operations.   “Once again, one of Detroit’s corporate citizens has come forward and generously shown its support for our public safety operations, our first responders and our citizens,” Mayor Bing said.  “The proper inspection of our fire department’s aerial ladders and ground ladders was a critical need that AAA Michigan has graciously met.  I appreciate the leadership and continued concern for public safety that AAA has demonstrated with this gift.” "Our history of supporting the community dates back nearly a century," said AAA Michigan President Steve Wagner.  "We are very pleased to present the Detroit Fire Department with this grant, which we know will help save lives."              The ladder inspections are required to keep DFD equipment in compliance with standards of the National Fire Protection Association (NFPA), an independent organization that establishes fire safety codes and regulations for various industries and the firefighting profession.  Detroit Fire Commissioner Donald Austin ordered last February that until a full inspection of the entire ladder fleet is completed, DFD will not engage in manned aerial ladder operations -- unless there is an immediate threat to life.  In cases where a manned ladder must be used, every effort will be made to properly support the ladder.  DFD continues to use unmanned aerial ladders as “water towers” to fight large fires. “We are grateful for AAA’s generous donation,” Commissioner Austin said.  “Aerial ladders can place firefighters 100 feet above ground, often with large amounts of water flowing under high pressure.  Because...

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EFM Report: Detroit Should Get Out of Power Supply Business

Breaking News - Original 05-13-2013 Hits:157 Cathy Nedd - avatar Cathy Nedd

EFM Report:  Detroit Should Get Out of Power Supply Business

  The current state of Detroit’s electricity grid is not only unreliable but a burden to the city and its residents and the maintenance of the public lighting system has cause the city to continue to operate at a loss, according to a new report emergency financial manager Kevyn Orr will release Monday to the public.   The report is coming 45 days after Gov. Rick Snyder named Orr, a Washington DC bankruptcy attorney emergency manager setting in motion the emergency wheels to get the city on the road to financial stability. According to the report the city estimates a $250 million to $500 million in capital improvements that would be needed to modernize Detroit’s public lighting system, funds that the city does not have and cannot generate at this time. “The Emergency Manager believes that it is in the best interest of the citizens of Detroit for the city to exit the power supply business. As of 2010, when the city ceased generating a portion of the electricity it sold, the grid has solely operated as a resale mechanism for its 200-­‐plus customers. The current state of the City's electricity grid has been characterized as unreliable, as well as a liability to the city and its citizens,” the report stated. “. Accordingly, the Emergency Manager seeks both to limit the city's exposure to the liabilities associated with an aging grid and provide a solution to ensure reliable power to the City of Detroit. For this reason, the city's electricity customers will be transitioned to a third party, and the grid will be closed down pursuant to a phased plan.” The Detroit Public Lighting (DPL) department serves over 200 commercial electric customers and about 88,00 streetlights.  The report cites the recently created Public Lighting Authority (PLA) as part of a comprehensive plan to overhaul the city’s...

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Detroit Emergency Manager Defends Use of Consultants in Financial Recovery

Breaking News - Original 05-13-2013 Hits:221 Cathy Nedd - avatar Cathy Nedd

Detroit Emergency Manager Defends Use of Consultants in Financial Recovery

  The criticism that the use of consultants getting paid over a million dollars per month to help craft a financial recovery map for Detroit is baseless according to emergency financial manager Kevyn Orr. Since December of last year, Detroit agreed to pay $14 million to nine different companies to provide financial and legal services in the city’s turnaround. In an exclusive interview with the Michigan Chronicle’s Bankole Thompson ahead of his Monday announcement of a financial operating plan, Orr vigorously defended the city's consultants saying it is disingenuous for some to be questioning use of consultants some of whom were here before his arrival. “I think part of it is Detroit’s been sort of removed from the world. First of all the amount of money that’s paid is actually small relative to other major cities. We shouldn’t be so provincial about the dollars,” Orr said. “We’ve gotten ourselves into a situation where the amount of debt given ordinary course- the way the city has been running- somebody’s got to come in here with a fresh perspective and say we can’t continue running in place, doing what we are doing that’s taken us to the edge of ruin.” Orr said if the city were to shut down today and no police or fire services in operation as well as the water department, the city could not pay of its debt in half a generation. He said the magnitude of work that has to b done in a city that has over 15 billion dollars of debt against a revenue stream of a billion dollars or less requires new fresh eyes. “Frankly in my opinion to have the consultants most of whom were here before I got here and to hear any criticism about consultants that have been here longer than a year helping the city is...

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Bill Proctor retiring after thirty-three years

Breaking News - Original 04-29-2013 Hits:629 Amber Bogins - avatar Amber Bogins

Bill Proctor retiring after thirty-three years

After thirty-three years of being a staple in Detroit media with WXYZ-TV, award-winning reporter Bill Proctor announced his retirement, effective May 10th. Proctor joined WXYZ-TV in May of 1980 as general assignment writer. Throughout his career, Proctor has received numerous accolades, including the 1999 Best Coverage Award for breaking news by the Michigan Association of Broadcasters. Proctor is also the winner of the 1983 "Outstanding Media Award" from Michigan's Crime Prevention Association. A former police officer for the Federal Protective Service in Washington, D.C., Proctor highlighted two or three unsolved crimes during each program, which aired twice a week. Expounding upon his passion for criminal justice, Proctor founded “Proving Innocence” a non-profit organization dedicated to providing investigators to innocent convicts in cases of wrongful convictions in the hopes of proving their innocence and getting the charge overturned. He plans to continue his work with this organization upon his retirement.   Follow Amber L. Bogins @AmberLaShaii

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DDOT bus crash injures several passengers (video)

Breaking News 04-24-2013 Hits:523 Roz Edward, National Content Director - avatar Roz Edward, National Content Director

DDOT bus crash injures several passengers (video)

   DETROIT — A Detroit Department of Transportation bus crashed into a Ford Taurus that ran a stop sign at Evergree south north of Joy in Detroit Wednesday morning injuring several passengers,   No one was seriously injured, said Detroit Police Officer Rickey Townsel. Evergreen Avenue near the crash site south of Joy Road remains closed.   the DDOT bus ended up on the front lawn of a nearby home.   It appears to have struck a tree when veering off the road.    No further details have been released at this time.      

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Lawsuits Against Mark Zuckerberg Keep Piling Up

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Suing Mark Zuckerberg is turning into a national pastime.

On June 1, three Facebook shareholders -- David Goldberg, Kevin Hyms and Garrett Garrison -- filed a class action suit against Zuckerberg and his company, social networking giant Facebook, according to court records. The suit accuses Zuckerberg, along with a gallery of Facebook executives and underwriters, of withholding key information from mom-and-pop investors about the true value of the company before its May 18 Nasdaq debut.

If this sounds like a familiar complaint, there's a good reason. The suit filed by Goldberg, Hyms and Garrison is at least the 13th to be brought against Facebook since the company went public.

"I'm sure there will be more," said Andrew Goldenberg, one of the attorneys representing Goldberg, Hyms and Garrison, in a conversation with The Huffington Post this week. "This is something that's affected thousands of people."

Few initial public offerings have raised popular ire like Facebook's. The company's debut was a media event, and according to one estimate, more than 25 percent of Facebook shares went to small-time investors hoping to ride the lightning. But the stock fizzled, and many retail investors took a hit, even as Facebook's underwriters -- a group that includes major financial firms like Morgan Stanley, JPMorgan Chase and Goldman Sachs -- made a reported $100 million in profits off the deal.

At issue in the baker's dozen of shareholder lawsuits is the question of whether Facebook and its underwriters circulated key information about Facebook's revenue projections to a handful of institutional investors while failing to make the same information available to retail investors.

Facebook's limp Nasdaq performance has shareholders wondering whether they could have been spared some pain. By the close of trading on Tuesday, Facebook's stock had fallen to $25.87, a drop of more than 30 percent from its May 18 debut at $38 per share.


The new forecasts were allegedly made known to insider investors, but not to the general public -- a distinction that would prove crucial once Facebook went public and its stock sank below expectations.Multiple news reports, many of them citing anonymous sources, have claimed that in the days leading up to Facebook's IPO, the company and its underwriters had access to revenue forecasts that showed Facebook's earnings falling off in the coming quarters.

Two of the major reports about the lowered revenue forecasts, from Reuters andBusiness Insider, appeared on May 22. By May 23, shareholders had filed five class action lawsuits in New York and California.

In the days since, at least eight more shareholder suits have appeared.

In a statement to HuffPost, Andrew Noyes, a Facebook spokesman, said, "We believe the lawsuits are without merit and will defend ourselves vigorously."

Andrew Goldenberg's clients were among the most recent to bring suit.

"They were confused, frustrated. They wanted an explanation of why the stock was where it was," said Goldenberg about Goldberg, Hyms and Garrison.

Goldenberg said the three reached out to his office "a couple days after the IPO," with complaints "based on articles that they were reading in the paper." His clients were "in shock when they heard that the underwriters were disclosing to the institutional investors, as opposed to these small-time guys."

At least one of the three men is retired, said Goldenberg, and none of them has a great deal of experience playing the market.

"They are not sophisticated investors," said Goldenberg. "They go on their Scottrade account, their E*Trade account, and they wanted to invest ... They are people who thought they were buying into a company that had a promising future."

Since filing the suit, said Goldenberg, his office has spoken to other retail investors who bought into the Facebook IPO and claim to have had similar experiences.

His office has "received at least 150 responses" since last Friday and that he has "personally spoken to maybe over 50 people."
"They all tell the same story," Goldenberg said. "They feel cheated."

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