During Trial, New Details Emerge on DuPuy Hip

When Johnson & Johnson announced the appointment in 2011 of an executive to head the troubled orthopedics division whose badly flawed artificial hip had been recalled, the company billed the move as a fresh start.

But that same executive, it turns out, had supervised the implant’s introduction in the United States and had been told by a top company consultant three years before the device was recalled that it was faulty.

In addition, the executive also held a senior marketing position at a time when Johnson & Johnson decided not to tell officials outside the United States that American regulators had refused to allow sale of a version of the artificial hip in this country.

The details about the involvement of the executive, Andrew Ekdahl, with the all-metal hip implant emerged Wednesday in Los Angeles Superior Court during the trial of a patient lawsuit against the DePuy Orthopaedics division of Johnson & Johnson. More than 10,000 lawsuits have been filed against DePuy in connection with the device — the Articular Surface Replacement, or A.S.R. — and the Los Angeles case is the first to go to trial.

The information about the depth of Mr. Ekdahl’s involvement with the implant may raise questions about DePuy’s ability to put the A.S.R. episode behind it.

Asked in an e-mail why the company had promoted Mr. Ekdahl, a DePuy spokeswoman, Lorie Gawreluk, said the company “seeks the most accomplished and competent people for the job.”

On Wednesday, portions of Mr. Ekdahl’s videotaped testimony were shown to jurors in the Los Angeles case. Other top DePuy marketing executives who played roles in the A.S.R. development are expected to testify in coming days. Mr. Ekdahl, when pressed in the taped questioning on whether DePuy had recalled the A.S.R. because it was unsafe, repeatedly responded that the company had recalled it “because it did not meet the clinical standards we wanted in the marketplace.”

Before the device’s recall in mid-2010, Mr. Ekdahl and those executives all publicly asserted that the device was performing extremely well. But internal documents that have become public as a result of litigation conflict with such statements.

In late 2008, for example, a surgeon who served as one of DePuy’s top consultants told Mr. Ekdahl and two other DePuy marketing officials that he was concerned about the cup component of the A.S.R. and believed it should be “redesigned.” At the time, DePuy was aggressively promoting the device in the United States as a breakthrough and it was being implanted into thousands of patients.

“My thoughts would be that DePuy should at least de-emphasize the A.S.R. cup while the clinical results are studied,” that consultant, Dr. William Griffin, wrote.

A spokesman for Dr. Griffin said he was not available for comment.

The A.S.R., whose cup and ball components were both made of metal, was first sold by DePuy in 2003 outside the United States for use in an alternative hip replacement procedure called resurfacing. Two years later, DePuy started selling another version of the A.S.R. for use here in standard hip replacement that used the same cup component as the resurfacing device. Only the standard A.S.R. was sold in the United States; both versions were sold outside the country.

Before the device recall in mid-2010, about 93,000 patients worldwide received an A.S.R., about a third of them in this country. Internal DePuy projections estimate that it will fail in 40 percent of those patients within five years; a rate eight times higher than for many other hip devices.

Mr. Ekdahl testified via tape Wednesday that he had been placed in charge of the 2005 introduction of the standard version of the A.S.R. in this country. Within three years, he and other DePuy executives were receiving reports that the device was failing prematurely at higher than expected rates, apparently because of problems related to the cup’s design, documents disclosed during the trial indicate.

Along with other DePuy executives, he also participated in a meeting that resulted in a proposal to redesign the A.S.R. cup. But that plan was dropped, apparently because sales of the implant had not justified the expense, DePuy documents indicate.

In the face of growing complaints from surgeons about the A.S.R., DePuy officials maintained that the problems were related to how surgeons were implanting the cup, not from any design flaw. But in early 2009, a DePuy executive wrote to Mr. Ekdahl and other marketing officials that the early failures of the A.S.R. resurfacing device and the A.S.R. traditional implant, known as the XL, were most likely design-related.

“The issue seen with A.S.R. and XL today, over five years post-launch, are most likely linked to the inherent design of the product and that is something we should recognize,” that executive, Raphael Pascaud wrote in March 2009.

Last year, The New York Times reported that DePuy executives decided in 2009 to phase out the A.S.R. and sell existing inventories weeks after the Food and Drug Administration asked the company for more safety data about the implant.

The F.D.A. also told the company at that time that it was rejecting its efforts to sell the resurfacing version of the device in the United States because of concerns about “high concentration of metal ions” in the blood of patients who received it.

DePuy never disclosed the F.D.A. ruling to regulators in other countries where it was still marketing the resurfacing version of the implant.

During a part of that period, Mr. Ekdahl was overseeing sales in Europe and other regions for DePuy. When The Times article appeared last year, he issued a statement, saying that any implication that the F.D.A. had determined there were safety issues with the A.S.R. was “simply untrue.” “This was purely a business decision,” Mr. Ekdahl stated at that time.

This article has been revised to reflect the following correction:

Correction: February 1, 2013

A headline on Thursday about a patient lawsuit against DePuy Orthopaedics, a unit of Johnson & Johnson, misstated the start of the trial in some copies. It began last week, not on Wednesday.

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DealBook: Doubt Is Cast on Consultants Hired to Fix Banks’ Abuses

Federal authorities are scrutinizing private consultants hired to clean up financial misdeeds like money laundering and foreclosure abuses, taking aim at an industry that is paid billions of dollars by the same banks it is expected to police.

The consultants operate with scant supervision and produce mixed results, according to government documents and interviews with prosecutors and regulators. In one case, the consulting firms enabled the wrongdoing. The deficiencies, officials say, can leave consumers vulnerable and allow tainted money to flow through the financial system.

“How can you be independent if you’re hired by the entity you’re reviewing?” Senator Jack Reed, Democrat of Rhode Island, who sits on the Senate Banking Committee, said.

The pitfalls were exposed last month when federal regulators halted a broad effort to help millions of homeowners in foreclosure. The regulators reached an $8.5 billion settlement with banks, scuttling a flawed foreclosure review run by eight consulting firms. In the end, borrowers hurt by shoddy practices are likely to receive less money than they deserve, regulators said.

On Thursday, Senator Elizabeth Warren, Democrat of Massachusetts, and Representative Elijah Cummings, Democrat of Maryland, announced that they would open an investigation into the foreclosure review, seeking “additional information about the scope of the harms found.”

Critics concede that regulators have little choice but to hire outsiders for certain responsibilities after they find problems at the banks. The government does not have the resources to ensure that banks follow the rules. Still, consultants like Deloitte & Touche and the Promontory Financial Group can add to regulators’ headaches, the government documents and interviews indicate. Some banks that work with consultants continue to run afoul of the law. At other times, consultants underestimate the extent of the misdeeds or facilitate them, preventing regulators from holding institutions accountable.

Now, regulators and lawmakers are rethinking their relationship with the consultants. Officials at the Federal Reserve, which oversees many large banks, are questioning the prudence of relying on consultants so heavily, said two people with direct knowledge of the matter.

When the Office of the Comptroller of the Currency penalized JPMorgan Chase last month for breakdowns in money-laundering controls, it imposed stricter requirements, ordering the bank to hire a consultant with “specialized experience” in money laundering and to ensure that the firm “not be subject to any conflict of interest.” In a separate action against the bank related to a $6 billion trading loss last year, the agency opted not to mandate an outside consultant at all.

While the comptroller’s office will continue requiring consultants in certain cases, some agency officials are worried about the quality of the work, as well as the consultants’ independence, according to three government officials briefed on the matter.

Since the financial crisis, regulators have increasingly relied on consultants. The comptroller’s office ordered banks to hire consultants in more than 130 enforcement actions since 2008, or nearly 15 percent of the cases.

It can be a lucrative business. In 2011, regulators mandated that 14 banks employ consultants to determine whether homeowners were wrongfully evicted. Over 14 months, the consultants collected about $2 billion in fees, according to regulators and bank officials.

Those fees amounted to more than half of what homeowners will receive under the $8.5 billion settlement that ended the review. As part of the deal, officials will disburse $3.3 billion to 3.8 million borrowers in foreclosure.

According to consultants and regulators, the broad review was plagued with inefficiencies. For example, Promontory initially instructed employees to calculate lawyers’ fees for each loan, to assess if borrowers were overcharged. Later, it scrapped the original procedure, only to reverse the policy again two weeks later, according to two reviewers who worked for Promontory.

“From Day 1, Promontory strove to conduct its review work as thoroughly and independently as possible,” a spokesman for the firm, Christopher Winans, said in a statement. “Our overarching concern at all times was to serve the best interests of borrowers.”

Some lawmakers question whether a consultant’s regulatory connections helped it secure contracts. PricewaterhouseCoopers, which has a stable of former Securities and Exchange Commission officials, won much of the foreclosure review work, signing deals with four banks, including Citigroup. Promontory, the firm examining loans for Wells Fargo, Bank of America and PNC, was founded in 2000 by the former head of the comptroller’s office, Eugene A. Ludwig.

When the contracts were initially awarded, some housing advocates complained that consulting firms could not objectively evaluate banks with which they had pre-existing business relationships. The comptroller’s office said it vetted the firms to spot such potential conflicts, and argued that the process provided swifter relief for homeowners than if the government had hired the companies directly through a lengthy contracting process.

But concerns persisted. Deloitte, which won the contract to review JPMorgan’s loans, had previously audited Washington Mutual and Bear Stearns, two firms JPMorgan acquired during the financial crisis. In May, the comptroller’s office replaced Allonhill, the consultant for Aurora Bank, after the firm disclosed that it had already reviewed some “of the same pool of loans” as part of an earlier contract.

“It’s clear from the foreclosure settlement that oversight over consultants was inadequate and the review process was deeply flawed,” said Representative Carolyn B. Maloney, Democrat of New York, who recently pressed regulators to detail how consultants were paid. People close to the review say consultants relied on a process that the comptroller’s office designed in 2011, under previous leadership.

“This was a very complex process,” a spokesman for the comptroller said. “Throughout the process, regulators provided continuous oversight, guidance and were available to discuss issues.” The agency also performs spot checks on the consultants.

Still, the foreclosure review highlighted broader concerns about the role consultants play.

Since the financial crisis, the comptroller’s office has issued nearly 20 enforcement actions against banks that had already hired consultants to help iron out problems, according to government documents. While consultants cannot be expected to remedy every last issue at the banks, the actions raise questions about the effectiveness of their work.

When HSBC, the British bank, was sanctioned in 2003 over porous money-laundering controls, the bank turned to Deloitte to review its compliance, an official briefed on the matter said. Deloitte also worked for HSBC from 2006 to 2008, the person said, building a system to monitor money flows more effectively. But the bank ran into trouble in 2010 over similar issues, as highlighted in a recent scathing report by the Senate’s Permanent Subcommittee on Investigations.

As part of a regulatory order, HSBC again hired Deloitte, this time to assess the number of times the bank failed to report suspicious transactions. Deloitte, three officials said, generously bundled hundreds of missed transfers into a single report. That helped save the bank from some government fines.

Despite the undercounting, HSBC still paid a record $1.9 billion last year to settle accusations that it enabled drug cartels to move money through its American subsidiaries.

In a statement, a spokesman for the firm said, “Deloitte fully stands behind the quality and integrity of its work on behalf of regulatory authorities.”

Deloitte has also been suspected of helping institutions cloak illicit transfers of money to rogue nations around the globe. In August, New York’s top banking regulator, Benjamin M. Lawsky, accused Deloitte of helping the British bank Standard Chartered flout American sanctions.

The consulting firm was hired to flag suspicious transfers routed through Standard Chartered’s New York branches. Instead, it instructed bankers on how to escape regulatory scrutiny, according to state court documents.

Deloitte turned over “highly confidential information” from which the bank gleaned insight into “regulators’ concerns and strategies,” the court documents said. The firm later doctored its report to regulators, Mr. Lawsky said, deliberately removing some illegal transfers on behalf of Iranian clients. In an e-mail, a Deloitte partner admitted that a report on the transactions was a “watered-down version.”

The authorities never took legal action against Deloitte, and federal officials noted in a separate settlement agreement that Standard Chartered employees withheld critical information from the consulting firm.

Despite these concerns, regulators are turning to a familiar source to help Standard Chartered. As part of a $327 million settlement last year, the bank is required to hire “an independent consultant.”

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Man behind Manti Te'o hoax wants to 'heal'

The 22-year-old Palmdale man who created Manti Te'o's fake girlfriend broke his silence for the first time, saying he perpetrated the elaborate hoax to build a relationship with the football star.

Ronaiah Tuiasosopo pretended to be Te'o's girlfriend, Lennay Kekua, for months, communicating on the phone and through social media. Tuiasosopo went so far as to disguise his voice to sound like a woman's when he spoke to Te'o on the phone, his attorney, Milton Grimes, said in an interview with The Times.

Grimes said his client decided to come clean about the hoax in an attempt to "heal."

"He knows that if he doesn't come out and tell the truth, it will interfere with him getting out of this place that he is in," Grimes said.

TV talk show host Dr. Phil McGraw, who spoke with Tuiasosopo for an interview set to air this week, described the 22-year-old as "a young man that fell deeply, romantically in love" with Te'o. McGraw, speaking on the "Today" show, said he asked Tuiasosopo about his sexuality, and Tuiasosopo said he was "confused."

In a short clip of the "Dr. Phil" interview, Tuiasosopo told McGraw that he wanted to end his relationship with Te'o because he "finally realized that I just had to move on with my life."

"There were many times where Manti and Lennay had broken up before," Tuiasosopo said. "They would break up, and then something would bring them back together, whether it was something going on in his life or in Lennay's life — in this case, in my life."

Tuiasosopo's comments add another twist to a story so bizarre that reporters from across the country have converged on Tuiasosopo's home in the Antelope Valley. News of the hoax was first reported earlier this month on the website Deadspin.com.

Tuiasosopo, the report said, was the mastermind behind the hoax and used photos from an old high school classmate and social media to connect Kekua with Te'o.

During the college football season, Te'o repeatedly spoke to the media, including The Times, about his girlfriend, the car accident that left her seriously injured and the leukemia that led to her September death. The tale became one of the most well-known sports stories of the year as Te'o led his team to an undefeated season and championship berth.

Te'o has denied any role in the ruse, saying he spent hours on the phone with a woman he thought was Kekua.

Those who know Tuiasosopo said they were baffled when they first learned of his involvement in the hoax. Neighbors and former high school coaches described him as popular, faith-driven and family-oriented.

"I've done a lot of thinking about it," Jon Fleming, Tuiasosopo's former football coach at Antelope Valley High, said in the days after the ruse was revealed. "It's all speculation. He's goofy just like any other kid. The question that comes up in my mind is: 'What could he possibly gain from doing something like this?' It would really surprise me. What would he gain?"

Te'o said in an interview with ESPN that Tuiasosopo called to apologize for the hoax.

"I hope he learns," Te'o said. "I hope he understands what he's done. I don't wish an ill thing to somebody. I just hope he learns. I think embarrassment is big enough."

Diane O'Meara, the Long Beach woman whose photos were used to represent the fake girlfriend, said in an interview with The Times that Tuiasosopo was a high school classmate.

She said he repeatedly asked her for photos and videos of herself.

O'Meara, 23, said that during a six-day period in December, Tuiasosopo contacted her through social media, texting and phone calls about 10 times, asking her to send a photo of herself. Then, after she sent the photo, in part to "get this guy off my back," she said Tuiasosopo messaged her asking for a video clip or another photo.

By that time, his requests were "kind of annoying, kind of pestering," O'Meara said.

Tuiasosopo is seeing a medical professional and "feels as though he needs therapy," Grimes said.

"Part of that therapy is to … tell the truth," he added. "He did not intend to harm [Te'o] in any way. It was just a matter of trying to have a communication with someone."

Grimes said he warned his client that he could face legal consequences for admitting that he falsified his identity on the Internet. But Tuiasosopo insisted that going public was something he had to do.

"This is part of my public healing," Grimes quoted Tuiasosopo as saying.

matt.stevens@latimes.com

ann.simmons@latimes.com

kate.mather@latimes.com

Times staff writers Kevin Baxter and Lance Pugmire contributed to this report.

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<em>New York Times</em> Hacked Again, This Time Allegedly by Chinese

In a dramatic announcement late Wednesday, the New York Times reported that hackers from China had been routing through the paper’s network for at least four months, stealing the passwords of reporters in an apparent attempt to identify sources and gather other intelligence about stories related to the family of China’s prime minister.

The hackers breached the network sometime around Sept. 13 and stole the corporate passwords for every Times employee, using them to gain access to the personal computers of 53 employees, according to the report.

The hacking coincided with an investigation the Times published last October that looked into a fortune that the family of China’s Prime Minister Wen Jiabao had amassed. The hackers breached the network while the paper was in the process of concluding its reporting for the investigation.

The hackers broke into the email account of the newspaper’s Shanghai bureau chief, David Barboza, who conducted the investigation, as well as the email account of Jim Yardley, the paper’s South Asia bureau chief in India, who had previously worked out of Beijing.

Executive Editor Jill Abramson said, however, that forensic experts with Mandiant, the computer security firm hired to investigate the breach, found “no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied.”

It’s not the first time that the paper has been hacked. In 1998, a group known as HFG — or H4acking for Girl13z — hacked the paper’s web site to protest the arrest of hacker Kevin Mitnick and accuse Times reporter John Markoff of helping to catch him.

In 2002, former hacker Adrian Lamo, famously hacked the paper’s network after discovering multiple vulnerabilities and accessed a database containing the details of 3,000 contributors to the paper’s op-ed page, among other things.

In 2011, former executive editor of the Times, Bill Keller, hinted that WikiLeaks or someone associated with the group had hacked into the accounts of some of the paper’s staff. During a period of heightened tension between WikiLeaks founder Julian Assange and the paper, which was then a publishing partner of WikiLeaks, the e-mail accounts of at least three people at the Times were apparently hacked. Keller suggested that Assange and WikiLeaks were behind the intrusions but never offered evidence to support this.

In the latest hack, the attackers, in an attempt to hide their tracks, routed their attacks through computers that they hacked at universities in North Carolina, Arizona, Wisconsin and New Mexico, as well as at small companies and internet service providers. They apparently used the same university computers that hackers working for the Chinese military used previously to attack Defense Department contractors.

During the three months they were in the paper’s network, the attackers installed 45 pieces of custom malware, though nearly all of it went undetected. Although the newspaper uses antivirus products made by Symantec, the monitoring software identified and quarantined only one of the attacker’s tools during that time, according to the report.

The attackers increased their activity in late October after the paper published its investigation of the prime minister’s relatives, and were also particularly active the night of the Nov. 6 presidential election.

The paper noted that there were concerns the hackers would try to shut down its publishing system that night, but they turned out to be unwarranted since the attackers apparently showed interest only in the paper’s reporting about the prime minister’s family.

“They could have wreaked havoc on our systems,” said Marc Frons, the Times’s chief information officer said in the report. “But that was not what they were after.”

The Times had been on alert for suspicious activity after learning that Chinese officials had warned that the paper’s reporting would have consequences. The paper asked AT&T, which monitors its network, to be on the lookout for suspicious activity.

After AT&T reported finding such activity, the FBI was notified, and the Times called in Mandiant to investigate.

Evidence showed that the hackers installed three backdoors and routed their way through the network for two weeks before uncovering a system containing the computer usernames and hashed passwords for all of the paper’s employees. The hackers apparently cracked a number of passwords to gain entry to employee computers.

“They created custom software that allowed them to search for and grab Mr. Barboza’s and Mr. Yardley’s e-mails and documents from a Times e-mail server,” the paper revealed.

The intrusion is apparently part of a wider campaign directed by Chinese hackers against western media outlets since 2008. Hackers from China also attempted to hack into the network of Bloomberg News last year after publishing stories about the relatives of China’s vice president.

Mandiant has investigated many of the breaches and found evidence that Chinese hackers had stolen e-mails, contact lists and files from more than 30 journalists and executives working for western media outlets.

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“Sin City 2″ casts Eva Green and Julia Garner

LOS ANGELES (TheWrap.com) – “Sin City: A Dame to Kill For” has cast Eva Green as a femme fatale and Julia Garner to portray yet another stripper struggling to make a dime in the gritty comic-book metropolis.

Green (“Casino Royale”) will appear in the sequel to the 2005 hit, “Sin City,” as a deadly muse named Ava Lord. Garner (“The Perks of Being a Wallflower”) plays a stripper who appears in scenes with Johnny, a cocky young gambler played by Joseph Gordon-Levitt.

Like the first film, “A Dame to Kill For” is adapted from Frank Miller‘s graphic novels.

Miller, who is co-directing with Robert Rodriguez, says Green’s character is “every man’s most glorious dreams come true, she’s also every man’s darkest nightmares.”

“Ava Lord is one of the most deadly and fascinating residents of ‘Sin City.’ From the start, we knew that the actor would need to be able to embody the multifaceted characteristics of this femme fatale and we found that in Eva Green,” Miller and Rodriguez added in a statement. “We are ecstatic that Eva is joining us.”

Green and Garner are newcomers to the sequel, along with Gordon-Levitt, Jaime King, Josh Brolin, Dennis Haysbert, Michael Madsen, Christopher Meloni, Jeremy Piven, Ray Liotta, Juno Temple and Jamie Chung.

Returning from the first “Sin City” are Mickey Rourke, Jessica Alba, Bruce Willis and Rosario Dawson.

The sequel is currently filming at Rodriguez’s Troublemaker Studios in Austin, Texas and is scheduled for an October 4 theatrical release.

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Chinese Hackers Infiltrate New York Times Computers

SAN FRANCISCO — For the last four months, Chinese hackers have persistently attacked The New York Times, infiltrating its computer systems and getting passwords for its reporters and other employees.

The New York Times published an article in October about the wealth of the family of China's prime minister, Wen Jiabao, in both English and Chinese.

After surreptitiously tracking the intruders to study their movements and help erect better defenses to block them, The Times and computer security experts have expelled the attackers and kept them from breaking back in.

The timing of the attacks coincided with the reporting for a Times investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings.

Security experts hired by The Times to detect and block the computer attacks gathered digital evidence that Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times’s network. They broke into the e-mail accounts of its Shanghai bureau chief, David Barboza, who wrote the reports on Mr. Wen’s relatives, and Jim Yardley, The Times’s South Asia bureau chief in India, who previously worked as bureau chief in Beijing.

“Computer security experts found no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied,” said Jill Abramson, executive editor of The Times.

The hackers tried to cloak the source of the attacks on The Times by first penetrating computers at United States universities and routing the attacks through them, said computer security experts at Mandiant, the company hired by The Times. This matches the subterfuge used in many other attacks that Mandiant has tracked to China.

The attackers first installed malware — malicious software — that enabled them to gain entry to any computer on The Times’s network. The malware was identified by computer security experts as a specific strain associated with computer attacks originating in China. More evidence of the source, experts said, is that the attacks started from the same university computers used by the Chinese military to attack United States military contractors in the past.

Security experts found evidence that the hackers stole the corporate passwords for every Times employee and used those to gain access to the personal computers of 53 employees, most of them outside The Times’s newsroom. Experts found no evidence that the intruders used the passwords to seek information that was not related to the reporting on the Wen family.

No customer data was stolen from The Times, security experts said.

Asked about evidence that indicated the hacking originated in China, and possibly with the military, China’s Ministry of National Defense said, “Chinese laws prohibit any action including hacking that damages Internet security.” It added that “to accuse the Chinese military of launching cyberattacks without solid proof is unprofessional and baseless.”

The attacks appear to be part of a broader computer espionage campaign against American news media companies that have reported on Chinese leaders and corporations.

Last year, Bloomberg News was targeted by Chinese hackers, and some employees’ computers were infected, according to a person with knowledge of the company’s internal investigation, after Bloomberg published an article on June 29 about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March. Ty Trippet, a spokesman for Bloomberg, confirmed that hackers had made attempts but said that “no computer systems or computers were compromised.”

Signs of a Campaign

The mounting number of attacks that have been traced back to China suggest that hackers there are behind a far-reaching spying campaign aimed at an expanding set of targets including corporations, government agencies, activist groups and media organizations inside the United States. The intelligence-gathering campaign, foreign policy experts and computer security researchers say, is as much about trying to control China’s public image, domestically and abroad, as it is about stealing trade secrets.

This article has been revised to reflect the following correction:

Correction: January 31, 2013

An earlier version of this article misstated the year that the United States and Israel were said to have started a cyber attack that caused damage at Iran’s main nuclear enrichment plant, and the article misstated the specific type of attack. The attack was a computer worm, not a virus, and it started around 2008, not 2012.

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South Korea launches space rocket carrying satellite

South Korea said Wednesday it successfully launched a satellite into space from its own soil for the first time, a point of national pride that came weeks after archrival North Korea accomplished a similar feat to the surprise of the world.

The South Korean rocket blasted off from a launch pad in the southwestern coastal village of Goheung. Science officials told cheering spectators minutes later that the rocket delivered an observational satellite into orbit. There was no immediate confirmation that the satellite was operating as intended.

The launch is a culmination of years of efforts by South Korea — Asia's fourth-largest economy — to advance its space program and cement its standing as a technology powerhouse whose semiconductors, smartphones and automobiles command global demand. North Korea's long-range rocket program, in contrast, has generated international fears that it is getting closer to developing nuclear missiles capable of striking the U.S.

South Korea's success comes amid increased tension on the Korean Peninsula over North Korea's threat to explode its third nuclear device. Pyongyang is angry over tough new international sanctions over its Dec. 12 rocket launch and has accused its rivals of applying double standards toward the two Koreas' space programs.

Washington and Seoul have called North Korea's rocket launch a cover for a test of Pyongyang's banned ballistic missile technology.

Both Koreas see the development of space programs as crucial hallmarks of their scientific prowess and national pride, and both had high-profile failures before success. South Korea tried and failed to launch satellites in 2009 and 2010, and more recent launch attempts were aborted at the last minute.

The satellite launched by Seoul is designed to analyze weather data, measure radiation in space, gauges distances on earth and test how effectively South Korean-made devices installed on the satellite operate in space. South Korean officials said it will help them develop more sophisticated satellites in the future.

U.S. experts have described the North's satellite as tumbling in space and said it does not appear to be functioning, though Pyongyang has said it is working.

The South Korean rocket launched Wednesday had its first stage designed and built by Russian experts under a contract between the two governments. North Korea built its rocket almost entirely on its own, South Korean military experts said earlier this month after analyzing debris retrieved from the Yellow Sea in December.

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7 Massive Ideas That Could Change the World

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Actor Jason London arrested after Ariz. bar fight

PHOENIX (AP) — Authorities say actor Jason London has been arrested on suspicion of assault and disorderly conduct after an Arizona bar fight.

Scottsdale police say London allegedly sneezed on a man who then asked him to apologize, but London refused and instead hit the man in the face.

The Arizona Republic (http://bit.ly/VoULau ) says the two men were escorted out of the bar, but London began pushing and cursing at firefighters trying to treat him and appeared extremely drunk. He was arrested early Monday.

London’s Twitter account says “some guy thought I was hitting on his girl” and that several large bouncers beat him, breaking bones in his face. London added, “the truth will win” and “I hate Arizona.”

London is best known for the 1993 movie “Dazed and Confused.”

___

Information from: The Arizona Republic, http://www.azcentral.com

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BlackBerry 10’s Debut Is a Critical Day for Research in Motion

OTTAWA — Research in Motion’s introduction on Wednesday of a new BlackBerry phone will be the most important event in the company’s history since 1996, when its founders showed investors a small block of wood and promised that a wireless e-mail device shaped like that would change business forever.

Now with just 4.6 percent of the global market for smartphones in 2012, according to IDC, RIM long ago exchanged dominance for survival mode. On Wednesday, the company will introduce a new line of smartphones called the BlackBerry 10 and an operating system of the same name that Thorsten Heins, the president and chief executive of RIM, says will restore the company to glory.

But Frank Mersch, who became one of RIM’s earliest investors after seeing the block of wood, is far less excited by what he sees this time around.

“You’re in a very, very competitive market and you’re not the leader,” Mr. Mersch, now the chairman and a vice president at Front Street Capital in Toronto, said of RIM. “You have to ask: ‘At the end of the day are we really going to win?’ I personally think the jury’s out on that.”

The main elements of the new phones and their operating system are already well known. Mr. Heins and other executives at RIM have been demonstrating the units for months to a variety of audiences. App developers received prototype versions as far back as last spring.

While analysts and app developers may be divided about the future of RIM, there is a consensus that BlackBerry 10, which arrives more than year behind schedule, was worth the wait.

Initially RIM will release two variations of the BlackBerry 10, one a touch-screen model that resembles many other phones now on the market. The other model is a hybrid with a keyboard similar to those now found on current BlackBerrys as well as a small touch screen.

The real revolution, though, may be in the software that manages a person’s business and personal information. It is clearly designed with an eye toward retaining and, more important, luring back, corporate users.

Corporate and government information technology managers will be able to segregate business-related apps and data on BlackBerry 10 handsets from users’ personal material through a system known as BlackBerry Balance. It will enable an I.T. manager to, among other things, remotely wipe corporate data from fired employees’ phones while leaving the newly jobless workers’ personal photos, e-mails, music and apps untouched. The system can also block users from forwarding or copying information from the work side of the phone.

Messages generated by e-mail, Twitter, Facebook, instant messaging and LinkedIn accounts are automatically consolidated into a single in-box that RIM calls BlackBerry Hub.

Charles Golvin, an analyst with Forrester Research, called the new phones “beautiful” and described the operating system as “a giant leap forward” from RIM’s current operating system. Ray Sharma, who followed RIM’s glory years as a financial analyst but who now runs XMG Studio, a mobile games developer in Toronto, has been similarly impressed.

But both men are among many analysts who question the ability of BlackBerry 10, whatever its merits, to revive RIM’s fallen fortunes.

“If it’s good, it will help inspire the upgrade cycle,” Mr. Sharma said. “But it has to be great in order to inspire touch-screen users to come back. If it’s good, not great, I will be concerned.”

Mr. Golvin was more blunt. “They’ll need to prove themselves in the face of a simultaneous onslaught of marketing from Microsoft, not to mention the continued push from Apple plus Google and its Android partners,” he wrote. “This is a gargantuan challenge for a company of RIM’s size.”

In the year since he took over from the founders, Jim Balsillie and Mike Lazaridis, Mr. Heins has certainly remade RIM. He cut 5,000 jobs in a program to reduce operating costs by about $1 billion a year. Along the way, he also replaced RIM’s senior management and straightened out its balance sheet. While unprofitable, RIM remains debt-free and holds $2.9 billion in cash.

With BlackBerry 10, RIM not only started over with its operating system, it also rebuilt the company through acquisitions. Its core operating system comes from QNX Software Systems, the design of the user interface is largely the work of the Astonishing Tribe in Sweden while other main components, like the touch-screen technology, came from smaller companies that are now part of RIM.

Integrating all of those acquisitions, analysts and former RIM employees say, added to the delays that plagued BlackBerry 10.

Now that the new phones are finally here, Mr. Heins is counting on RIM’s remaining base of 79 million users globally to eagerly upgrade. But where those customers reside may be as important in their numbers in determining the success of that plan.

In the United States, which leads the world in setting smartphone trends, about 11 million BlackBerry users switched to other phones between 2009 and the middle of last year, according to an analysis by Horace Dediu on Asymco, a wireless industry blog he founded.

Until the final months of 2012, RIM continued to increase its subscriber base through sales of low-cost handsets to less developed countries like Nigeria and Indonesia. Although BlackBerry 10 will be made available worldwide, the initial phones will be too expensive for a majority of BlackBerry fans in those regions.

RIM may also have confused its loyalists, particularly in North America and Europe, in the run-up to the BlackBerry 10 debut. Many of those users stuck with BlackBerrys because of their physical keyboards. But public demonstrations for BlackBerry 10 were centered on the touch-screen-only version and its virtual keyboard.

While some corporations have remained loyal to BlackBerry, RIM not only has to sell them on the new handsets, it also must persuade them to upgrade server software to accommodate the new operating system, a costly and time-consuming process. Companies whose employees continue to use older BlackBerrys will have to run two separate BlackBerry servers.

Mr. Heins’s pitch to those corporations is that the BlackBerry 10 server software will also allow them to manage and control data on employees’ Android phones and iPhones. But any corporation or organization that allows those phones to connect with its systems long ago installed mobile device management software from other companies, including Good Technology and SAP. RIM is likely to find that the competition in device management software is as severe as it is in the handset business.

This article has been revised to reflect the following correction:

Correction: January 30, 2013

An earlier version of this story incorrectly stated that Frank Mersh is the chairman and a vice president at First Street Capital in Toronto. Mr. Mersh is the chairman and a vice president at Front Street Capital in Toronto.

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