Small firms must also file reports

The Securities and Exchange Commission said Wednesday that it has decided not to exempt smaller public companies from a key requirement of a 2002 anti-fraud law, resisting entreaties from business interests that have been complaining about the costs of compliance.

In a statement, the SEC said it will take a series of actions meant to improve the way the law works, “although ultimately all public companies will be required to comply.”

At issue is a key part of the Sarbanes-Oxley law that arose from the 2002 corporate scandals: the requirement for companies to file reports on the strength of their internal financial controls and fix any problems. An advisory committee appointed by the SEC formally proposed last month that the agency exempt smaller companies from the requirement – a move that would affect about 70 percent of all public companies in the United States.

Fort Worth, Texas

American Airlines must cut $1 billion

American Airlines expects passengers to pack its flights this summer, but the nation’s largest carrier must cut more than $1 billion in expenses to offset the rising cost of fuel, chief executive Gerard Arpey said Wednesday.

Arpey said the company hoped to offset higher costs by raising $300 million in extra revenue, partly from fees on everything from curbside check-in to booking a flight over the phone.

The rest will have to come from greater efficiency and cost cutting, but Arpey offered few details.

Austin, Texas

‘Gas pill’ a fraud, lawsuit charges

What do mothballs and toilet bowl deodorant bars have to do with drastically improving gas mileage?

Nothing, say prosecutors who are going after a company that claims a small ball made with the chemicals in those products is a “gas pill” that can boost mileage 25 percent or more.

“It’s natural for people to look for ways to save money,” Texas Attorney General Greg Abbott said Wednesday. “Sometimes, scammers come out of the woodwork.”

Abbott announced a lawsuit against BioPerformance Inc., a day after a San Antonio judge signed a temporary restraining order forcing the Dallas company to cease alleged deceptive acts and freeze its assets.

The pills, which are dropped into gas tanks, are part of an illegal pyramid scheme, Abbott said.

Detroit

GM goes outside for financial help

General Motors Corp., the subject of several federal investigations because of recent accounting errors, said Wednesday it has hired outside financial advisers to help restructure its corporate controller’s office.

GM said its current controller, Paul Schmidt, will retire later this year. Schmidt is 61 and has spent 37 years at the company. Chief Accounting Officer Peter Bible also plans to resign from the company effective June 1, although he has been asked to stay on in a consulting role as the restructuring progresses.