IndyCar: Wheldon killed when head hit fencing post (AP)

Dan Wheldon was killed when his head hit a post in the fencing at Las Vegas Motor Speedway ? contact that created a "non-survivable injury" to the two-time Indianapolis 500 winner.

The cause of death was revealed Thursday when IndyCar presented its findings of the Oct. 16 accident in the season finale. The crash collected 15 cars, including Wheldon, who came from behind the initial contact, launched over spinning cars and sailed about 325 feet into the catchfence.

Although the contact with the post killed Wheldon, the investigation determined several factors contributed to what became a "perfect storm."

"The accident was significant due to the number of race cars damaged, but more importantly due to the non-survivable injuries to Dan Wheldon," the report said. "While several factors coincided to produce a "perfect storm," none of them can be singled out as the sole cause of the accident.

"For this reason, it is impossible to determine with certainty that the result would have been any different if one or more of the factors did not exist."

The race had a season-high 34 cars, but IndyCar CEO Randy Bernard said Thursday the field could have had as many as 37 drivers based on the size of both the track and the pit lane. The season finale was held on Vegas' high-banked 1.5-mile oval with multiple racing grooves, which IndyCar president Brian Barnhart said created "nearly unlimited movement on the track surface under race conditions."

That, not the construction of the fencing, played a larger role in Wheldon's death.

Barnhart admitted IndyCar was not prepared for the drivers to have free reign on a wide-open race track.

Most ovals have only one or two racing grooves, which the report said "restrict drivers' naturally aggressive racing behavior (and) make the location of other competitors' cars on the race track predictable."

Because this was IndyCar's first visit to Las Vegas since 2000, the majority of the field was not experienced on the variable banking or wide surface.

But drivers did predict racing at Las Vegas could be hairy as early as preseason testing. Marco Andretti was one of the first drivers to publicly question the track, which would "be easily wide open, which is going to create a big pack. It's going to be fun for the fans. I like those races, but it'll be dangerous."

That mantra was repeated in the buildup to Las Vegas by many top-name drivers and all weekend as speeds inched toward 220 mph in practice sessions.

Yet IndyCar was surprised when the race began.

"I don't think we were expecting it to be any different from what we'd experienced in the last decade at places like Chicagoland, Kentucky, Fontana and Texas; places like that where while there is the ability to run flat and there's multiple grooves, you couldn't run from the top of the race track to the bottom," Barnhart said.

"We were never expecting to be able to run from the top to the bottom (at Las Vegas)."

Barnhart stressed IndyCar "never" gets a chance to duplicate race conditions, so no amount of testing or practice would have prepared anyone for what happened when the race began.

Las Vegas Motor Speedway president Chris Powell said track officials will work with IndyCar in hopes "the series might return to LVMS in the future."

To do that, Barnhart said it's imperative for IndyCar to establish guidelines for the drivers to follow going future on surfaces such as Las Vegas, and the series needs to look at aerodynamic changes that make the cars "more challenging to drive."

"We need to create a limit," he said. "They have to understand there is a line they can't cross."

IndyCar also addressed the $5 million promotion that featured Wheldon.

Wheldon was making just his third start of the season and chasing the incentive offered by Bernard to any non-IndyCar regular who could drive from the back of the field to win the race. Wheldon would have split the money with a fan selected in a random drawing.

Allowing Wheldon to take the challenge was a stretch ? he won 14 races on ovals, including the Indy 500 earlier last season ? but because he sat out the season, he technically qualified for the bonus.

But Wheldon felt he was up for the challenge.

He was the in-race reporter for ABC during the event, and spoke with the announcers during the warm-up laps. In a brief interview, Wheldon defended his participation and the entire IndyCar Series.

"I wouldn't be doing this if I didn't think that I could win," he said from his car. "Certainly I am not underestimating the talent of the other drivers in the field. I think IndyCar has got a phenomenal field right now."

Wheldon was killed minutes later when the crash began ahead of him at the start of the 12th lap. He had picked his way through the field and gained at least 10 spots when he came upon the accident and had nowhere to go to avoid the spinning cars and flying debris.

The report found that although Wheldon stayed low on the race track and appeared to be attempting to avoid the cluster of cars spinning toward the top ? he had slowed from 224 mph to 165 ? his path was blocked by other cars. His first contact with another car sent him airborne and into the catchfence.

Las Vegas is owned by Speedway Motor Sports Inc., and the organization has spent considerable money on research into fencing. SMI owner Bruton Smith is adamant his fences are the strongest and safest in the business, and he makes no apologies for constructing them with the posts inside the wiring.

Barnhart said there is no indication Wheldon would have survived had the post been on the outside of the mesh wiring.

"It does not look like the position of the mesh fabric would have changed the consequences of this accident at all," Barnhart said. "Sometimes the forces are too great. The small fabric is not there to retain a car. That's the object of the post and the cables. The location of the fabric would not have changed the outcome at all, but as we've said, our preference is for it to be on the inside."

But questions remain about Las Vegas' future on the IndyCar schedule.

Bernard had a three-year lease agreement with the track to stage the season finale at Las Vegas through 2013 but came to an agreement with SMI last week to buy out next year's portion of the contract.

"I think Las Vegas is a great city, a resort destination, and our fans and sponsors ? everyone loves the city," Bernard said. "But I don't want to go back there if the conditions aren't right, it isn't safe, for our race cars."

IndyCar plans on judging all high-banked ovals individually going forward and said the Wheldon accident could not be blamed on the banking. That leaves room for a deal to be worked out with Texas Motor Speedway, one of the most popular venues on the IndyCar schedule.

No sanctioning agreement between Texas and IndyCar has been worked out, but Bernard indicated he'd like to have the 2012 schedule announced by Friday.

Source: http://us.rd.yahoo.com/dailynews/rss/sports/*http%3A//news.yahoo.com/s/ap/20111215/ap_on_sp_au_ra_ne/car_indycar_wheldon_investigation

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Sandusky waives hearing, vows to fight charges (AP)

BELLEFONTE, Pa. ? Former Penn State assistant football coach Jerry Sandusky opted against forcing his accusers to make their claims of child sex abuse in a packed courtroom Tuesday but then took his case to the courthouse steps as his lawyer assailed the credibility of the alleged victims and witnesses.

"There will be no plea negotiations," defense lawyer Joseph Amendola said. "This is a fight to the death."

Waiving such a preliminary hearing is not unusual but it was unexpected in this case: Amendola repeatedly had said his client was looking forward to facing his accusers. Afterward, he called the cancellation a "tactical decision" to prevent the men from reiterating the same claims they made to the grand jury.

Lawyers for the alleged victims said some were relieved they would not have to make their claims in public before a trial, but others said they had steeled themselves to face Sandusky and were left disappointed.

"It would have been apparent from watching those boys and their demeanor that they were telling the truth," said Howard Janet, a lawyer for a boy whose mother contacted police in 1998 after her son allegedly showered with Sandusky.

Sandusky has denied the allegations, which led to the departures of longtime Penn State football coach Joe Paterno and the university president. He is charged with more than 50 counts that accuse him of sexually abusing 10 boys over the span of 12 years.

Amendola said he believed some of the young men may have trumped up their claims and that others may came forward in a bid to make money by suing Sandusky, Penn State and the charity Sandusky founded.

"We're pursuing a financial motivation," Amendola said, "Finances and money are great motivators."

Michael Boni, a lawyer representing an accuser known as Victim 1, said Amendola was "reaching into his bag of tricks."

"I can tell you that Victim No. 1 is credible. He was the first one to come forward," he said.

Sandusky told reporters as he left the courthouse that he would "stay the course, to fight for four quarters" and "wait for the opportunity to present our side."

Many defendants waive preliminary hearings, during which prosecutors must show that they have probable cause to bring the case to trial. Prosecutors in this case were expected to meet that relatively low bar, in part because the case been through a grand jury.

Senior Deputy Attorney General E. Marc Costanzo said the move "provides maximum protection to most importantly the victims in this case."

"It avoids their having to testify for a second time," Costanzo said. "They will of course testify at a trial in the case."

Costanzo also said there had been no discussions about a plea bargain.

Sandusky also will waive his next court appearance, an arraignment, that had been scheduled for Jan. 11, Amendola said. He remains under house arrest.

The accusers who were prepared to testify were split in their reactions to the hearing being canceled.

Boni said he was encouraged that the accusers "do not have to relive the horrors they experience up on the witness stand" by having to testify at the hearing and at trial.

Ben Andreozzi, a lawyer representing another accuser, read a statement from his client, who called it the most difficult time of his life.

"I can't believe they put us through this until the last second," the statement read. "I still will stand my ground, testify and speak the truth."

Ken Suggs, another attorney for one of the accusers, called Sandusky a "coward" for not facing the young men.

Witnesses have contended before the grand jury that Sandusky committed a range of sexual offenses against boys as young as 10, assaulting them in hotel swimming pools, the basement of his home in State College and in the locker room showers at Penn State, where the 67-year-old former assistant football coach once built a national reputation as a defensive mastermind.

Sandusky has told NBC and The New York Times that his relationship to the boys who said he abused them was like that of an extended family. Sandusky characterized his experiences with the children as "precious times" and said the physical aspect of the relationships "just happened that way" and didn't involve abuse.

Amendola said Sandusky was always emotional and physical ? "a loving guy, an affectionate guy" ? who never did anything illegal. The lawyer likened Sandusky's behavior to his own Italian family in which "everybody hugged and kissed each other."

Sandusky retired from Penn State in 1999, a year after the first known abuse allegation reached police when a mother told investigators Sandusky had showered with her son during a visit to the Penn State football facilities. Accusations surfaced again in 2002, when graduate assistant Mike McQueary reported another alleged incident of abuse to Paterno and other university officials.

The grand jury probe began only in 2009, after a teen complained that Sandusky, then a volunteer coach at his high school, had abused him.

Sandusky first groomed him with gifts and trips in 2006 and 2007, then sexually assaulted him more than 20 times in 2008 through early 2009, the teen told the grand jury.

Amendola on Tuesday attacked McQueary by citing an anonymously sourced newspaper report that claimed the former graduate assistant changed his story when speaking to a family friend. The defense attorney said McQueary would derail the prosecution and other accusers also would be questioned.

"McQueary was always the centerpiece of the prosecution's case," he said.

No one answered the door at Mike McQueary's home and his father, John, told The Associated Press that he wouldn't respond to Amendola's comments.

Sandusky founded The Second Mile, an organization to help struggling children, in 1977, and built it into a major charitable organization, headquartered in State College with offices in other parts of Pennsylvania.

Two university officials have been charged with perjury and failure to report suspected abuse ? athletic director Tim Curley and former university vice president Gary Schultz. Their preliminary hearing is scheduled for Friday in Harrisburg.

Curley has been placed on leave and Schultz has returned to retirement in the wake of their arrests. The scandal brought down university president Graham Spanier and longtime coach Paterno, who was fired last month.

Meanwhile, officials at Juniata College said Tuesday that Sandusky insinuated himself into the school's football program last year, despite being denied an official position because he failed a background check.

Sandusky had sought a volunteer coaching position at the Division III school in May 2010, more than a year after a high school where he volunteered began investigating his contact with a student there.

Sandusky attended Juniata practices and games despite the athletic director's directives to the then-head coach that Sandusky couldn't associate with the team, a school spokesman said.

The spokesman, John Wall, said the school has since taken steps to ensure better communication between coaches and administrators.

___

Associated Press writer Genaro C. Armas in Bellefonte and Randy Pennell in Philadelphia contributed to this story.

Source: http://us.rd.yahoo.com/dailynews/rss/sports/*http%3A//news.yahoo.com/s/ap/20111213/ap_on_sp_ot/us_penn_state_abuse

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Antitrust case against Microsoft goes to jury

FILE - In this Nov. 21, 2011 photo, Bill Gates arrives to testify at the Frank E. Moss federal courthouse in Salt Lake City. Closing arguments are set Tuesday Dec. 13,2011 in a $1 billion federal antitrust lawsuit against Microsoft Corp. Novell Inc. claims the software giant duped it into working on a new version of the WordPerfect writing program only to withdraw support months before Microsoft's Windows 95 was released. Novell claims it was later forced to sell WordPerfect for a $1 billion loss. (AP Photo/Jim Urquhart,File)

FILE - In this Nov. 21, 2011 photo, Bill Gates arrives to testify at the Frank E. Moss federal courthouse in Salt Lake City. Closing arguments are set Tuesday Dec. 13,2011 in a $1 billion federal antitrust lawsuit against Microsoft Corp. Novell Inc. claims the software giant duped it into working on a new version of the WordPerfect writing program only to withdraw support months before Microsoft's Windows 95 was released. Novell claims it was later forced to sell WordPerfect for a $1 billion loss. (AP Photo/Jim Urquhart,File)

SALT LAKE CITY (AP) ? A judge says he will turn the $1 billion antitrust case against Microsoft Corp. over to a jury Wednesday morning.

Novell Inc. claims Microsoft duped it into developing the once-popular WordPerfect writing program for Windows 95, only to pull the plug so Microsoft could gain market share with its own product.

Novell says it was later forced to sell WordPerfect for a $1.2 billion loss.

Microsoft counters that Novell made a series of poor business choices that left WordPerfect struggling to catch up with Windows technology.

Novell acquired WordPerfect in 1994. The company was wildly successful in the 1980s, making billions of dollars.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/495d344a0d10421e9baa8ee77029cfbd/Article_2011-12-14-Antitrust%20Lawsuit-Microsoft/id-82db23c112794fb9b5a15b78ca1fef59

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Scientists find monster black holes, biggest yet (AP)

CAPE CANAVERAL, Fla. ? Scientists have found the biggest black holes known to exist ? each one 10 billion times the size of our sun.

A team led by an astronomer at the University of California at Berkeley discovered the two gigantic black holes in clusters of galaxies 300 million light years away. That's relatively close on the galactic scale.

The previous black hole record-holder is as large as 6 billion suns. A black hole is formed by the collapse of a super-size star. It's a region where nothing, not even light, can escape.

The scientists say their findings suggest differences in the way black holes grow, depending on the size of the galaxy.

The research was released Monday by the journal Nature.

Source: http://us.rd.yahoo.com/dailynews/rss/space/*http%3A//news.yahoo.com/s/ap/20111205/ap_on_sc/us_sci_black_holes

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Sickle Cell Disease Tied to 'Silent Strokes' in Children (HealthDay)

FRIDAY, Dec. 2 (HealthDay News) -- Children with sickle cell disease, an inherited blood disorder, who also have high blood pressure and/or anemia are at increased risk for so-called "silent strokes," according to a new study.

Silent strokes, which cause no symptoms, "are typically seen in older adults, and these findings give us additional insight into why they tend to occur so often in children with sickle cell disease," senior study investigator Dr. James Casella, director of hematology at Johns Hopkins Children's Center, said in a center news release.

Casella and his colleagues performed MRI brain scans on 814 children with sickle cell disease, aged 5 to 15, and found that 31 percent of them had suffered silent strokes. None of the children had a history of strokes or seizures, and none showed any signs of stroke at the time of the study.

After examining the children's medical histories, the researchers concluded that anemia and high blood pressure individually increased the risk of silent stroke in the study participants, but the combination of the two carried the highest risk.

Among these sickle cell patients, those with the highest systolic blood pressure (the top number in their blood pressure reading) was above 113 and the lowest hemoglobin (below 7.6 grams per deciliter) had a nearly four times greater risk of silent stroke than those with the lowest blood pressure and highest hemoglobin. Hemoglobin is the protein in red blood cells that carries oxygen. Anemia is defined by low levels of hemoglobin.

Compared to children with the lowest blood pressure readings, those with the highest blood pressure had a 1.7 times greater risk of silent stroke. And the risk was more than doubled for kids with the lowest hemoglobin levels versus kids with the highest hemoglobin levels, the investigators found.

The researchers said their findings highlight the need to identify children with sickle cell disease who have early signs of anemia and high blood pressure, both of which are modifiable risk factors. The findings may also lead to new treatments for sickle cell disease.

The study was published online Nov. 17 in the journal Blood.

While extremely rare in children overall, stroke is a common complication in children with sickle cell disease. Nearly 100,000 people in the United States have sickle cell disease. The disease, inherited from both parents, causes red blood cells to take the shape of crescents or sickles, and results in less oxygen being delivered to the body's tissues. These fragile cells can interrupt blood flow when they get stuck in small blood vessels. Patients with sickle cell disease require ongoing treatment, according to the U.S. National Institutes of Health, which funded the study.

More information

The Nemours Foundation has more about sickle cell disease.

Source: http://us.rd.yahoo.com/dailynews/rss/parenting/*http%3A//news.yahoo.com/s/hsn/20111203/hl_hsn/sicklecelldiseasetiedtosilentstrokesinchildren

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Investing in 'place,' branding a region ? Maine Business ? Bangor ...

During the last decade, think tanks such as the Rural Policy Research Institute (RUPRI) began articulating the economic development need and value of investing in ?place.? According to RUPRI, the principles for place policy need to be ?clear, measurable and carefully evaluated goals [that] should guide investment and regulation.? The process encourages regional and community development by building partnerships in a flexible and collaborative environment to address complex problems in an integrated manner. We had seen the decade of small-business growth, entrepreneurship and innovation as a means to expand regional economies. We were now encouraged to make a strategic investment in ?place.?

Whether it?s private business development or private philanthropic foundations seeking to make a change to the local economy or add to the educational and cultural experience or public funds through federal, state and local governments, investing in ?place? seemed to have the greatest possibility of sustainability and return on investment.

As more communities begin to develop regional place-based systems and policies, it is critically important that regions have identity. What is a region? What are the assets? What is the culture? How are we unique? All are questions that must be asked if a competitive advantage can be gained by the region. Simply modifying the process and investing in place absent a brand will not work. Therefore, ?place branding? is a requirement and appropriate continuation of place investment.

Branding of a region brings together the assets that make the place special and it empowers a region or place to build on all its strengths. This effort creates a new restraint that focuses on the vision and the assets of a region. It deters a return to the prior silos, turf and singular asset development of the old economic development efforts.

Branding brings new leadership and a more creative approach to both internal and external understanding of the place. Branding enables a place to build on all its strengths and make sense out of the often confused and contradictory current and future identity.

The brand of a region must not be telling quality of place, which is merely publicity or commercial, but rather, the brand must communicate the actions and growth of the region?s special strengths and assets. Like any business, the region must compete in a global context if it is to grow by attracting investment, events and talent. A region cannot allow itself to be branded by the marketplace. The region must be proactive and ensure that its reputation is built on the qualities it holds that are positive, unique, attractive and sustainable. It is very easy for a region to become famous for the wrong reasons; it is a more challenging effort to brand globally and locally. From a local perspective, the brand must be understood in both the Bangor region and in Oslo, Norway, for instance.

Not only does a brand need to come from the region?s vision and assets, the brand must also drive the competitiveness of the vision and assets. It needs to be understood and supported and must drive its audience to action. It must be seen as something that enriches the region?s people and place.

A brand requires investment and collaboration. Once brand is developed, it must be implemented by all of the institutions and organizations within the region. It must be consistently and constantly reinforced and never confused in the marketplace by differing messages from groups that may not choose to use the brand.

In the early 21st century, geopolitical and economic regions in Maine have been actively working toward strategies that ?invest in place.? The next logical step is developing and implementing the branding effort. To do so requires transparency, clear communication, collaboration and participation by many stakeholders because these are the steps that will determine if the investment in place will perform successfully now and in the future.

Michael W. Aube is president of Eastern Maine Development Corporation in Bangor. He is a past commissioner of Maine?s Department of Economic and Community Development and former state director of Maine USDA Rural Development.

Source: http://bangordailynews.com/2011/12/01/business/investing-in-%E2%80%98place%E2%80%99-branding-a-region/

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Romney, Gingrich proceed carefully in GOP showdown (The Arizona Republic)

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Pakistan questions its role in US war on terror

ISLAMABAD ?? Enraged by a NATO cross-border air attack that killed 24 soldiers, Pakistan is considering withdrawing its support for the U.S.-led war on terror if its sovereignty is violated again, the foreign minister suggested in comments published on Thursday.

The South Asian nation has already shown its anger over the weekend strike by pulling out of an international conference in Germany next week on Afghanistan. It stood by that decision on Wednesday, depriving the talks of a central player in efforts to bring peace to its neighbor.

"Enough is enough. The government will not tolerate any incident of spilling even a single drop of any civilian or soldier's blood," The News newspaper quoted Foreign Minister Hina Rabbani Khar as telling a Senate committee on foreign affairs.

U.S.-Pakistan relations, a new 'all-time low'?

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"Pakistan's role in the war on terror must not be overlooked," Khar said, suggesting Pakistan could end its support for the U.S. war on militancy. Despite opposition at home, Islamabad backed Washington after the September 11, 2001, attacks on the United States.

'Sacrifices'
Pakistan says it has paid the highest price of any country engaged in the war on militancy. Thousands of soldiers and police have been killed.

"The sacrifices rendered by Pakistan in the war on terror are more than any other country," Khar was quoted as saying. "But that does not mean we will compromise on our sovereignty."

Pakistan military sources also said it had cancelled a visit by a 15-member delegation, led by the Director General of the Joint Staff, Lieutenant-General Mohammad Asif, to the United States that was to have taken place this week.

NATO helicopters and fighter jets attacked two military border posts in northwest Pakistan on Saturday in the worst incident of its kind since 2001.

Pakistani and American officials have offered different accounts of the airstrike. But it seems clear that a breakdown in communication contributed to the tragedy.

According to U.S. military records described to The Associated Press, the incident occurred when a joint U.S. and Afghan patrol requested backup after being hit by mortar and small arms fire by Taliban militants. Before responding, the joint U.S.-Afghan patrol first checked with the Pakistani army, which reported it had no troops in the area, the military account said.

Pakistani officials have refuted this claim and said U.S. forces must have known they were attacking Pakistani soldiers because the posts were clearly marked on maps given to NATO and the two sides were in contact immediately before and during the airstrikes.

Pakistani military sources said the attack came in two waves.

"The attack began at around 12:05 a.m. and lasted for about 30 minutes, when the contacts were made and it was discontinued," one source told Reuters.

The source said NATO helicopter gunships and jet fighters came back after 35 minutes. The Pakistanis returned fire in a battle that lasted for another 45 minutes.

Pakistan releases 1st pics of attacked border posts

When it was over, 24 Pakistani soldiers were dead and 13 wounded.

The two posts in question ? Volcano and Boulder ? are perched about 8,000 feet high on a ridgeline near the Afghan border. They are among about 28 such posts in Mohmand Agency set up to prevent cross-border movements by Taliban militants, another military source said.

The source said that there were no militants in the area, however, because they had been flushed out by a Pakistani military operation conducted over the year.

'Not a deliberate attack'
The top U.S. military officer denied allegations by a senior Pakistani army official that the NATO attack was a deliberate act of aggression.

General Martin Dempsey, chairman of the U.S. military's Joint Chiefs of Staff, told Reuters in an interview: "The one thing I will say publicly and categorically is that this was not a deliberate attack.

The army, which has ruled Pakistan for more than half of its history and sets security and foreign policy, faced strong criticism from both the Pakistani public and the United States after Osama bin Laden was killed in a secret raid by U.S. special forces in May.

The al-Qaida leader had apparently been living in a Pakistani garrison town for years.

Slideshow: Pakistan: A nation in turmoil (on this page)

Pakistanis criticized the military for failing to protect their sovereignty and U.S. officials wondered whether some members of military intelligence had sheltered him. Pakistan's government and military said they had no idea bin Laden was in the country.

The army seems to have regained its confidence and won the support of the public and the government in a country where anti-American sentiment often runs high.

Protests have taken place in several cities every day since the NATO strike along the poorly-defined border, where militants often plan and stage attacks.

Story: US prepares to vacate Pakistan drone base

Meanwhile, Pakistan resumed some cooperation with U.S.-led forces in Afghanistan to prevent another cross-border incident from escalating, a spokesman said Wednesday.

NATO said Islamabad communicated with the alliance to prevent an exchange of fire over the border late Tuesday from turning into another international incident.

U.S. forces received mortar and recoilless rifle fire from an area just inside the Pakistan border, said U.S. spokesman Navy Lt. Cmdr. Brian Badura. U.S. forces returned fire in self-defense while confirming with the Pakistani military that it wasn't involved. No damage or casualties were reported by the U.S. or Pakistan, he said.

German Brig. Gen. Carsten Jacobson, a NATO spokesman in Kabul, expressed hope that Pakistan's cooperation in resolving the incident in eastern Afghanistan's Paktia province signaled the two sides could recover from the recent tragedy.

The Pakistani military did not immediately respond to request for comment on the latest incident.

The Associated Press and Reuters contributed to this report.

Source: http://www.msnbc.msn.com/id/45505397/ns/world_news-south_and_central_asia/

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Melrose 2 fund suing Paramount for film profits (Reuters)

LOS ANGELES (TheWrap.com) ? The investor group Melrose 2 is suing Paramount Pictures, claiming it put up $375 million to finance the "Transformers" movies and other projects, but hasn't received any of the profits.

According to a lawsuit filed in Los Angeles County Superior Court Tuesday, Paramount "understated the revenues received in connection with the exploitation of the Melrose 2-funded films."

Melrose 2 is suing for breach of contract, fraud and unfair business practices.

Paramount did not immediately comment Tuesday.

The fund helped pay for 29 films, including "Mission Impossible 3," "Charlotte's Web," "Dreamgirls," "Flags of Our Fathers," "Blades of Glory," "Jackass 2" and all three "Transformers" movies. In total, the films have grossed nearly $7 billion.

In a written statement, Melrose 2's lawyer, Mark Holscher, said, "Paramount has deliberately inflated losses and under-reported gross receipts."

Melrose 2 is a follow-up to the 2004 Melrose Investors fund. That fund invested $225 million in 25 Paramount films. Merrill Lynch and the investment bank Dresdner Kleinwort arranged the Melrose deal. Dresdner Kleinwort led Melrose 2.

The lawsuit says that in September 2006, Paramount and Melrose 2 made a deal for the new fund to pay up to 25 percent of production costs of as many as 30 movies.

"The funding provided by Melrose 2 has served defendants well financially," the lawsuit says. "To date, Paramount has taken in more than $600 million in distribution fees alone from the Melrose 2-funded films, in addition to the untold amounts in actual profits."

The claim adds, "Five years after the agreement was signed, Melrose 2 still has not seen a dollar of profit from its $375 million investment. ... This lopsided distribution of earnings comes about as a direct result of defendants' practice of understating gross receipts, delaying payments to Melrose 2, overstating production and distribution costs and hindering Melrose 2's ability to exercise its audit rights."

As an example, the lawsuit says that Paramount claimed that "Flags of Our Fathers" cost nearly twice its budgeted amount, but refused to provide documentation to the investors.

"Similarly, in connection with a later audit, defendants failed to provide the domestic and foreign production cost records for 'Dreamgirls' and 'Norbit,'" the lawsuit says.

Additionally, the suit says, Paramount has "been cagey about other sources of revenue."

It says that "although there appears to be a fair amount of product placement in Melrose 2-funded films such as 'Transformers,' 'Heartbreak Kid,' 'Blades of Glory' and 'Shooter,'" Paramount refuses to provide any formal accounting of any such advertising deals.

As a consequence, the suit adds, the fund cannot determine "whether it was properly credited for cost reductions in connection with those deals."

Source: http://us.rd.yahoo.com/dailynews/rss/enindustry/*http%3A//news.yahoo.com/s/nm/20111129/media_nm/us_paramount_lawsuit

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