Daily briefing
Lululemon sues Under Armour over bra design Lululemon Athletica is suing Under Armour for allegedly copying a sports bra design. According to Lululemon, its $52 Energy Bra — which has four straps that criss-cross in the back — “does it all.” In its lawsuit, filed this month, Lululemon says it takes issue with four of Under Armour’s sports bras, which range from the $29.99 Armour Strappy to the $39.99 Armour Eclipse Low Impact. In the filing, Lululemon says “Under Armour’s unauthorized acts have caused and will continue to cause irreparable damage to Lululemon and its business.” A spokeswoman for Lululemon declined to comment. A representative for Baltimore-based Under Armour said the company “takes the intellectual property rights of others very seriously.” The two companies are fighting for a piece of the fast-growing sports bra market, which analysts say accounts for more than $1 billion in U.S. sales a year. Last year, Lululemon executives said third-quarter bra sales grew more than 20 percent. This isn’t the first time the company, which last year had $2.34 billion in revenue, has taken a competitor to court. In 2012, Lululemon sued Calvin Klein for allegedly copying the waistband design on its $98 Astro Pant. The companies later settled out of court for an undisclosed sum.
—The Washington Post Anne Arundel Medical Center may drop CareFirst Anne Arundel Medical Center has threatened to drop one of the state’s largest insurers in a disagreement over how much the company should reimburse the health system for professional fees, imaging services and rehabilitation care. AAMC sent CareFirst a letter Friday notifying the insurer of its intent to terminate its contract Sept. 30. If an agreement isn’t reached by then, the medical system will become an out-of-network provider for CareFirst customers.
The change would affect the system’s medical group practices, Pathways rehabilitation center and imaging centers starting Oct. 1, and Anne Arundel Medical Center starting Jan. 1. Medical center officials said that last fall, CareFirst unilaterally decreased the amount of money it pays for services at Anne Arundel Diagnostic Imaging and Pathways, a rehabilitation facility located outside the city. System officials said CareFirst also decreased the amount of money it pays for professional fees for services rendered at the system’s weren’t made to rates for hospital services, which are determined by a state commission in Maryland. In a response sent via email Monday, CareFirst characterized the situation differently, saying the medical center is asking for an increase in fees that the insurer considers unjustifiable. The insurer did not specify how large an increase the system was requesting.
— Rachael Pacella, Baltimore Sun Media Group CSX delivers 15 percent improvement in profits CSX Corp. delivered a 15 percent improvement in second-quarter profit as the railroad continues to restructure under its new CEO. The Jacksonville, Fla.-based company said Tuesday it earned $510 million net income, or 55 cents per share.
That's up from $445 million, or 47 cents per, share a year ago. The railroad's results were weighed down by $122 million in restructuring charges related to changes CEO Hunter Harrison has made as he works to streamline operations and impose tighter schedules for trains. Without those charges, the railroad said it would have reported earnings per share of 64 cents. The results topped the adjusted 59 cents per share that the 11 analysts surveyed by Zacks Investment Research expected on average. The freight railroad's revenue grew 8 percent to $2.93 billion as it hauled 2 percent more freight. That beat the $2.85 billion revenue that analysts expected on average. The 72-year-old Harrison was hired by CSX after pressure from the Mantle Ridge hedge fund that owns 5 percent of the railroad.
Harrison previously led turnarounds of Canadian Pacific and Canadian National railroads.
—Associated Press Chipotle closes Va. eatery after reports of illness Chipotle's efforts to move past its food scares have been complicated by fresh reports of illnesses, which prompted it to temporarily close a restaurant this week.
The company said Tuesday that it closed the restaurant in Sterling, Va., after it became aware of a “small number” of reported illnesses consistent with norovirus. The news sent its shares down more than 4 percent as skittish investors worried about the chain's past food scares.
Chipotle noted that norovirus, which can cause nausea and diarrhea, does not come from its food supply and said it is safe to eat at its restaurants.
—The Washington Post Anne Arundel Medical Center may drop CareFirst Anne Arundel Medical Center has threatened to drop one of the state’s largest insurers in a disagreement over how much the company should reimburse the health system for professional fees, imaging services and rehabilitation care. AAMC sent CareFirst a letter Friday notifying the insurer of its intent to terminate its contract Sept. 30. If an agreement isn’t reached by then, the medical system will become an out-of-network provider for CareFirst customers.
The change would affect the system’s medical group practices, Pathways rehabilitation center and imaging centers starting Oct. 1, and Anne Arundel Medical Center starting Jan. 1. Medical center officials said that last fall, CareFirst unilaterally decreased the amount of money it pays for services at Anne Arundel Diagnostic Imaging and Pathways, a rehabilitation facility located outside the city. System officials said CareFirst also decreased the amount of money it pays for professional fees for services rendered at the system’s weren’t made to rates for hospital services, which are determined by a state commission in Maryland. In a response sent via email Monday, CareFirst characterized the situation differently, saying the medical center is asking for an increase in fees that the insurer considers unjustifiable. The insurer did not specify how large an increase the system was requesting.
— Rachael Pacella, Baltimore Sun Media Group CSX delivers 15 percent improvement in profits CSX Corp. delivered a 15 percent improvement in second-quarter profit as the railroad continues to restructure under its new CEO. The Jacksonville, Fla.-based company said Tuesday it earned $510 million net income, or 55 cents per share.
That's up from $445 million, or 47 cents per, share a year ago. The railroad's results were weighed down by $122 million in restructuring charges related to changes CEO Hunter Harrison has made as he works to streamline operations and impose tighter schedules for trains. Without those charges, the railroad said it would have reported earnings per share of 64 cents. The results topped the adjusted 59 cents per share that the 11 analysts surveyed by Zacks Investment Research expected on average. The freight railroad's revenue grew 8 percent to $2.93 billion as it hauled 2 percent more freight. That beat the $2.85 billion revenue that analysts expected on average. The 72-year-old Harrison was hired by CSX after pressure from the Mantle Ridge hedge fund that owns 5 percent of the railroad.
Harrison previously led turnarounds of Canadian Pacific and Canadian National railroads.
—Associated Press Chipotle closes Va. eatery after reports of illness Chipotle's efforts to move past its food scares have been complicated by fresh reports of illnesses, which prompted it to temporarily close a restaurant this week.
The company said Tuesday that it closed the restaurant in Sterling, Va., after it became aware of a “small number” of reported illnesses consistent with norovirus. The news sent its shares down more than 4 percent as skittish investors worried about the chain's past food scares.
Chipotle noted that norovirus, which can cause nausea and diarrhea, does not come from its food supply and said it is safe to eat at its restaurants.
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