Unusual smell prompts recall of Kellogg cereals

Kellogg Co. is voluntarily recalling about 28 million boxes of Apple Jacks, Corn Pops, Froot Loops and Honey Smacks cereals because an unusual smell and flavor from the packages’ liners could make people ill, the company said Friday.

Kellogg said about 20 people complained about the cereals, including five who reported nausea and vomiting. The company said the potential for serious health problems is low.

Consumers reported the cereal smelled or tasted waxy or like metal or soap. Company spokeswoman J. Adaire Putnam said some described it as tasting stale.

Kellogg is trying to identify the substance on the liners that’s causing the problem and is offering consumers refunds in the meantime.

Only products with the letters “KN” following the use-by date are included in the recall.  

Trial targeting Fosamax produces $8 million award

Drugmaker Merck & Co. said it will challenge its first loss in a trial blaming its osteoporosis drug for destroying a patient’s jawbone after a federal jury on Friday awarded $8 million to the Florida woman.

The U.S. District Court jury in New York awarded that amount in compensatory damages to Shirley Boles, 72, of Fort Walton, Fla., who alleged Merck’s Fosamax destroyed her jawbone near her ears, causing serious pain and disability.

The three-week trial ended after nearly 4 hours of deliberations Friday by a jury of three men and four women. It was the second for Boles, a retired sheriff’s deputy in the sex crimes unit in Oskaloosa County, Fla. Her first trial ended last September in a mistrial. 

Tail assembly problems halt testing of new 787

Boeing Co. is halting flight tests on its new 787 jet after finding that some of the planes have improperly installed parts in the tail.

The problem involves shims and fasteners, which weren’t installed correctly in the horizontal tail of the plane, Boeing said. The whole assembly is built by Italian manufacturer Alenia.

Each inspection will take about a day and any work required will take up to eight days for each aircraft or tail assembly, Fancher said. The five flight-test jets will be the first inspected. The company will inspect all 25 of the tail assemblies it has in the factory. 

Alleged Ponzi scheme stopped by court order

The government said Friday it obtained a court order to halt an alleged $34 million Ponzi scheme targeting federal employees and law enforcement agents nationwide with promises of safe investments in a nonexistent bond fund.

The Securities and Exchange Commission said the order issued Thursday by a federal judge in Miami also froze the assets of the estate of the late Kenneth Wayne McLeod, his consulting firm Federal Employee Benefits Group of Jacksonville, Fla., and an affiliated investment firm.

The SEC alleged the firms defrauded an estimated 260 investors starting in 1988.