Woman killed when 2 cars collide on Tri-State













Photo: Scene of crash


Photo: Scene of crash
(February 10, 2013)


























































Danielle M. Pisterzi hoped to graduate from Northern Illinois University this year with an accounting degree, but first she needed to complete an internship at a firm.

Her family believes Pisterzi, 21, was returning to her home on the Northwest Side late Saturday night from her job when she collided with an SUV near Willow Road on the Tri-State Tollway.

Pisterzi had been working long hours because the firm was busy with the tax season, her father Frank Pisterzi said. "She was my baby," he said.

Danielle Pisterzi was driving a 2004 Hyundai when she struck an Audi SUV carrying four people around 10:45 a.m., state police said. people inside, police said. Pisterzi was taken to Advocate Lutheran General Hospital, where she was pronounced dead at 11:52 p.m.

Police told the woman's family that her car also struck a wall before the car flipped on its roof. No one else was taken to the hospital, police said.

After having spent semesters in Dekalb, Pisterzi was back home living with her family in the 5700 block of North Nina Avenue where she grew up, her father said.

Pisterzi said his daughter knew what she meant to her family. "I was pretty fortunate, I told her everyday that I loved her," her father said.

chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Insight: Apple and Samsung, frenemies for life


SAN FRANCISCO/SEOUL (Reuters) - It was the late Steve Jobs' worst nightmare.


A powerful Asian manufacturer, Samsung Electronics Co Ltd, uses Google Inc's Android software to create smartphones and tablets that closely resemble the iPhone and the iPad. Samsung starts gaining market share, hurting Apple Inc's margins and stock price and threatening its reign as the king of cool in consumer electronics.


Jobs, of course, had an answer to all this: a "thermo-nuclear" legal war that would keep clones off the market. Yet nearly two years after Apple first filed a patent-infringement lawsuit against Samsung, and six months after it won a huge legal victory over its South Korean rival, Apple's chances of blocking the sale of Samsung products are growing dimmer by the day.


Indeed, a series of recent court rulings suggests that the smartphone patent wars are now grinding toward a stalemate, with Apple unable to show that its sales have been seriously damaged when rivals, notably Samsung, imitated its products.


That, in turn, may usher in a new phase in the complex relationship between the two dominant companies in the growing mobile computing business.


Tim Cook, Jobs' successor as Apple chief executive, was opposed to suing Samsung in the first place, according to people with knowledge of the matter, largely because of that company's critical role as a supplier of components for the iPhone and the iPad. Apple bought some $8 billion worth of parts from Samsung last year, analysts estimate.


Samsung, meanwhile, has benefited immensely from the market insight it gained from the Apple relationship, and from producing smartphones and tablets that closely resemble Apple's.


While the two companies compete fiercely in the high-end smartphone business - where together they control half the sales and virtually all of the profits - their strengths and weaknesses are in many ways complementary. Apple's operations chief, Jeff Williams, told Reuters last month that Samsung was an important partner and they had a strong relationship on the supply side, but declined to elaborate.


As their legal war winds down, it is increasingly clear that Apple and Samsung have plenty of common interests as they work to beat back other potential challengers, such as BlackBerry or Microsoft.


The contrast with other historic tech industry rivalries is stark. When Apple accused Microsoft in the 1980s of ripping off the Macintosh to create the Windows operating system, Apple's very existence was at stake. Apple lost, the Mac became a niche product, and the company came close to extinction before Jobs returned to Apple in late 1996 and saved it with the iPod and the iPhone. Jobs died in October 2011.


Similarly, the Internet browser wars of the late 1990s that pitted Microsoft against Netscape ended with Netscape being sold for scrap and its flagship product abandoned.


Apple and Samsung, on the other hand, are not engaged in a corporate death match so much as a multi-layered rivalry that is by turns both friendly and hard-edged. For competitors like Nokia, BlackBerry, Sony, HTC and even Google - whose Motorola unit is expected to launch new smartphones later this year - they are a formidable duo.


THE WAY THEY WERE


The partnership piece of the Apple-Samsung relationship dates to 2005, when the Cupertino, California-based giant was looking for a stable supplier of flash memory. Apple had decided to jettison the hard disc drive in creating the iPod shuffle, iPod nano and then-upcoming iPhone, and it needed huge volumes of flash memory chips to provide storage for the devices.


The memory market in 2005 was extremely unstable, and Apple wanted to lock in a supplier that was rock-solid financially, people familiar with the relationship said. Samsung held about 50 percent of the NAND flash memory market at that time.


"Whoever controls flash is going to control this space in consumer electronics," Jobs said at the time, according to a source familiar with the discussions.


The success of that deal led to Samsung supplying the crucial application processors for the iPhone and iPad. Initially, the two companies jointly developed the processors based on a design from ARM Holdings Plc, but Apple gradually took full control over development of the chip. Now Samsung merely builds the components at a Texas factory.


The companies built a close relationship that extended to the very top: in 2005, Jay Y. Lee, whose grandfather founded the Samsung Group, visited Jobs' home in Palo Alto, California, after the two signed the flash memory deal.


The partnership gave Apple and Samsung insight into each other's strategies and operations. In particular, Samsung's position as the sole supplier of iPhone processors gave it valuable data on just how big Apple thought the smartphone market was going to be.


"Having a relationship with Apple as a supplier, I am sure, helped the whole group see where the puck was going," said Horace Dediu, a former analyst at Nokia who now works as a consultant and runs an influential blog. "It's a very important advantage in this business if you know where to commit capital."


Samsung declined to comment on its relationship with a specific customer.


As for Apple, it reaped the benefit of Samsung's heavy investments in research and development, tooling equipment and production facilities. Samsung spent $21 billion (23 trillion won) on capital expenditures in 2012 alone, and plans to spend a similar amount this year.


By comparison, Intel Corp spent around $11 billion in 2012, and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) expects to spend $9 billion in 2013.


But component expertise, cash and good market intelligence did not assure success when Samsung launched its own foray into the smartphone market. The Omnia, a Windows-based product introduced in 2009, was so reviled that some customers hammered it to bits in public displays of dissatisfaction.


Meanwhile, Samsung publicly dismissed the iPhone's success.


"The popularity of iPhone is a mere result of excitement caused by some (Apple) fanatics," Samsung's then-president, G.S. Choi, told reporters in January 2010.


Privately, though, Samsung had other plans.


"The iPhone's emergence means the time we have to change our methods has arrived," Samsung mobile business head J.K. Shin told his staff in early 2010, according to an internal email filed in U.S. court.


Later that year, Samsung launched the Galaxy S, which sported the Android operating system and a look and feel very similar to the iPhone.


STANDOFF


Jobs and Cook complained to top Samsung executives when they were visiting Cupertino. Apple expected, incorrectly, that Samsung would modify its design in response to the concerns, people familiar with the situation said.


Apple's worst fears were confirmed with the early 2011 release of the Galaxy Tab, which Jobs and others regarded as a clear rip-off of the iPad.


Cook, worried about the critical supplier relationship, was opposed to suing Samsung. But Jobs had run out of patience, suspecting that Samsung was counting on the supplier relationship to shield it from retribution.


Apple filed suit in April 2011, and the conflagration soon spread to courts in Europe, Asia and Australia. When Apple won its blockbuster billion-dollar jury verdict against Samsung last August, it appeared that it might be able to achieve an outright ban on the offending products - which would have dramatically altered the smartphone competition.


But Apple has failed to convince U.S. judges to uphold those crucial sales bans - in large part because the extraordinary profitability and market power of the iPhone made it all but impossible for Apple to show it was suffering irreparable harm.


"Samsung may have cut into Apple's customer base somewhat, but there is no suggestion that Samsung will wipe out Apple's customer base, or force Apple out of the business of making smartphones," U.S. District Judge Lucy Koh wrote. "The present case involves lost sales - not a lost ability to be a viable market participant."


Samsung, meanwhile, came under pressure from antitrust regulators and pulled back on its effort to shut down Apple sales in Europe over a related patent dispute.


A U.S. appeals court recently rejected Apple's bid to fast-track its case, meaning its hopes for a sales ban are now stuck in months-long appeals, during which time Samsung may very well release the next version of its hot-selling Galaxy phone.


THE WORLD IS OURS


The legal battles have been less poisonous to the relationship than some of the rhetoric suggests.


"People play this stuff up because it shows a kind of drama, but the business reality is that the temperature isn't that high," said one attorney who has observed executives from both companies.


Still, the hostilities appear to have put some dents in the partnership. Apple is likely to switch to TSMC for the building of application processors, according to analysts at Goldman Sachs, Sanford Bernstein and other firms. But analysts at Korea Investment & Securities and HMC Securities point out that Apple will not be able to eliminate Samsung as a flash supplier because it remains the dominant producer of the crucial chips.


Apple declined to comment on the details of its relationships with any one supplier.


Meanwhile, both companies are deploying strategies out of the other's playbook as they seek to maintain and extend their lead over the pack.


Samsung has developed a cheeky, memorable TV ad that mocks Apple customers, and dramatically ramped up spending on marketing and advertising, a cornerstone of Apple's success. U.S. ad spending on the Galaxy alone leaped to nearly $202 million in the first nine months of 2012, from $66.6 million in 2011, according to Kantar Media.


For its part, Apple is investing in manufacturing by helping its suppliers procure the machinery needed to build large-scale plants devoted exclusively to the company.


Apple spent about $10 billion in fiscal 2012 on capital expenditures, and it expects to spend a further $10 billion this year. By contrast, the company spent only $4.6 billion in fiscal 2011 and $2.6 billion in fiscal 2010.


But Apple and Samsung retain very different strategies. Apple has just one smartphone and only four product lines in total, and tries to keep variations to a bare minimum while focusing on the high end of the market.


Samsung, by contrast, has 37 phone products that are tweaked for regional tastes and run the gamut from very cheap to very expensive, according to Mirae Asset Securities. The company also makes chips, TVs, appliances and a host of other products (and its brethren in the Samsung Group sell everything from ships to insurance policies).


Apple devices are hugely popular in the United States; Samsung enjoys supremacy in developing countries like India and China. Apple keeps its core staff lean - it has only 60,000 employees worldwide - and relies on partners for manufacturing and other functions. Samsung Electronics, part of a sprawling "chaebol," or conglomerate, that includes some 80 companies employing 369,000 people worldwide, is far more vertically integrated.


It is those differences, combined with the formidable strengths that both companies bring to the market, that may render quiet cooperation a better strategy than all-out war for some time to come.


Said Brad Silverberg, a former Microsoft executive who was involved in the Mac vs. Windows wars, "Apple had learnt a lot of lessons from those days."


(Reporting by Dan Levine and Poornima Gupta in San Francisco, and Miyoung Kim in Seoul; Editing by Jonathan Weber, Tiffany Wu and Peter Cooney)



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Paternos issue report, challenge Freeh's findings


STATE COLLEGE, Pa. (AP) — A report commissioned by Joe Paterno's family says the late coach did nothing wrong in his handling of the Jerry Sandusky child sex abuse scandal and portrays Paterno as the victim of a "rush to injustice" created by former FBI director Louis Freeh's investigation of the case for Penn State.


The family's critique, released Sunday, argues that the findings of the Freeh report published last July were unsupported by the facts.


Former U.S. Attorney General Dick Thornburgh, one of the experts assembled by the family's lawyer to review Freeh's report last year to Penn State, called the document fundamentally flawed and incomplete.


Freeh's report reached "inaccurate and unfounded findings related to Mr. Paterno and its numerous process-oriented deficiencies was a rush to injustice and calls into question" the investigation's credibility, Thornburgh was quoted as saying.


In a statement released Sunday through a spokesman, Freeh defended his work.


"I stand by our conclusion that four of the most powerful people at Penn State failed to protect against a child sexual predator harming children for over a decade," he said.


Paterno's family released what it billed as an exhaustive response to Freeh's work, based on independent analyses, on the website paterno.com.


"We conclude that the observations as to Joe Paterno in the Freeh report are unfounded, and have done a disservice not only to Joe Paterno and the university community," the family's report said, "but also to the victims of Jerry Sandusky and the critical mission of educating the public on the dangers of child sexual victimization."


Freeh's findings also implicated former administrators in university president Graham Spanier, athletic director Tim Curley and retired vice president Gary Schultz. Less than two weeks after the Freeh report was released in July, the NCAA acted with uncharacteristic speed in levying massive sanctions against the football program for the scandal.


"Taking into account the available witness statements and evidence, it is more reasonable to conclude that, in order to avoid the consequences of bad publicity, the most powerful leaders at Penn State University — Messrs. Spanier, Schultz, Paterno and Curley — repeatedly concealed critical facts relating to Sandusky's child abuse" from authorities, trustees and the university community, Freeh wrote in releasing the report.


The former administrators have vehemently denied the allegations. So, too, has Paterno's family, though it reserved more extensive comment until its own report was complete.


The counter-offensive began in earnest this weekend. The family's findings said that Paterno:


— Never asked or told anyone not to investigate an allegation made against Sandusky 12 years ago, Saturday, Feb. 9, 2001.


— Never asked or told former administrators not to report the 2001 allegation.


— And never asked or told anyone not to discuss or hide information reported by graduate assistant Mike McQueary about the 2001 allegation.


"Paterno reported the information to his superior(s) pursuant to his understanding of university protocol and relied upon them to investigate and report as appropriate," the family's analysis said.


Paterno's widow, Sue, broke her silence Friday in a letter to hundreds of former players informing them of the report's impending release. "The Freeh report failed and if it is not challenged and corrected, nothing worthwhile will have come from these tragic events," she wrote.


"I had expected to find Louis Freeh had done his usual thorough and professional job," Thornburgh said in a video posted on paterno.com. "I found the report to be inaccurate in some respects, speculative and unsupported to the record compiled ... in short, fundamentally flawed as to the determinations made to the role — if any — Mr. Paterno played in any of this."


Freeh was brought in to conduct an independent investigation of the school's response to allegations and find any shortcomings in governance and compliance to make sure failures don't happen again, Penn State said in a statement Sunday. Freeh made 119 recommendations to strengthen policies, and the majority have been implemented, according to the school.


University trustees and leaders have been criticized by some dissatisfied alumni, ex-players and community residents for their handling of Paterno's dismissal, the Freeh report and the sanctions.


"It is understandable and appreciated that people will draw their own conclusions and opinions from the facts uncovered in the Freeh report," the school said.


Freeh, in his report, said his team conducted 430 interviews and analyzed over 3.5 million emails and documents. The former federal judge said evidence showed Paterno was involved in an "active agreement to conceal" and his report cited email exchanges, which referenced Paterno, between administrators about allegations against Sandusky in 1998 and 2001.


According to Thornburgh's findings, Freeh's report relied on about 30 documents, including three notes authored by Paterno, and 17 emails. Four emails referenced Paterno — none sent by the octogenarian coach who notoriously shunned modern electronic technology.


Sandusky, 69, was sentenced to at least 30 years in prison in October after being convicted last summer of 45 criminal counts. Prosecutors said assaults occurred off and on campus, including the football building.


His arrest in November 2011 triggered the turmoil that led to Paterno's firing days later. Under pressure, Spanier left as president the same day. Curley was placed on administrative leave, while Schultz retired.


Spanier, Curley and Schultz are awaiting trial on obstruction and conspiracy, among other charges. They have maintained their innocence.


Critics have said that Freeh's team didn't speak with key figures including Curley, Schultz and Paterno, who died in January 2012 at age 85. The authors of the emails referenced in Freeh's report, which included Curley and Schultz, were not interviewed by Freeh, the family's analysis said.


Spanier spoke to Freeh six days before the report was released July 12.


"They missed so many key people. They didn't interview most of the key players, with the exception of President Spanier, who at the last minute we brought in and interviewed at a time when frankly the report ... was pretty well all prepared," Thornburgh said on the video.


Freeh said he respected the family's right to conduct a campaign to "shape the legacy of Joe Paterno," but called the critique self-serving. Paterno's attorney was contacted for an interview with the coach, he said, and Paterno spoke with a reporter and biographer before his death but not Freeh's team.


Curley and Schultz also declined numerous requests for interviews, Freeh said. They have been facing criminal charges since November 2011.


Freeh on Sunday cited grand jury testimony by Paterno in 2011 in which Paterno said a graduate assistant relayed to him the 2001 allegation against Sandusky of a "sexual nature" with a child.


He referred to a key point in the July report in which he said Spanier, Schultz and Curley drew up a plan that called for reporting Sandusky to the state Department of Public Welfare in 2001. But Curley later said in an email that he changed his mind "after giving it more thought and talking it over with Joe," according to Freeh's findings.


Said Freeh on Sunday: "These men exhibited a striking lack of empathy for Sandusky's victims by failing to inquire as to their safety and well-being, especially by not even attempting to determine the identity of the child" in the 2001 allegation.


The Paterno family report said Freeh chose not to "present alternative, more plausible, conclusions" about Paterno's actions. Their attorney, Wick Sollers, responded Sunday that Freeh didn't take the time to read the family's critique, or address accusations of procedural shortcomings.


"A failure to consider the facts carefully is exactly the problem our expert analysis highlights," Sollers said. "Everyone, including Mr. Freeh, should take the time to study this report."


Sue Paterno had directed Sollers, to review Freeh's report and her husband's actions. Sollers brought in Thornburgh, as well as former FBI profiler and special agent Jim Clemente, described as a child molestation and behavioral expert.


Also brought in was Dr. Fred Berlin, a psychologist from Johns Hopkins Hospital and School of Medicine whose profile lists him as the founder of the Johns Hopkins Sexual Disorders Clinic.


The analysis included interviews, including of Paterno before his death, as well as a review of documents and testimony and "information from our access to the lawyers for other Penn State administrators."


The Paterno family's analysis said Freeh's report turned into a platform for scapegoating Paterno rather than seizing on an opportunity to educate about identifying child sex abuse victims, and ignored "decades of expert research and behavioral analysis regarding the appropriate way to understand and investigate a child victimization case."


It said expert analysis showed Sandusky "fooled qualified child welfare professionals and law enforcement, as well as laymen inexperienced and untrained in child sexual victimization like Joe Paterno." The coach respected Sandusky as an assistant, but knew little about Sandusky's personal life, the analysis said, though Freeh's report "missed that they disliked each other personally, had very little in common outside work, and did not interact much if at all socially."


Actions by entities outside of Penn State were not a focus for Freeh's review. "This was an internal investigation into Penn State's response ... and that is how the University has utilized the report," the school said.


Penn State removed a bronze statue of Paterno outside Beaver Stadium on July 22. The next day, the NCAA in levying sanctions said Freeh's report revealed "an unprecedented failure of institutional integrity leading to a culture in which a football program was held in higher esteem."


The NCAA improperly relied on that report and never identified a rules infraction "based on Sandusky's crimes, much less an infraction by Penn State that implicated the NCAA's jurisdiction and core mission of ensuring competitive balance," the Paterno family report said.


An NCAA spokeswoman said the organization stood by its previous statements and declined comment Sunday.


A four-year bowl ban and steep scholarship cuts were included among the sanctions, while 111 wins between 1998 and 2011 under Paterno were vacated. It meant Paterno no longer holds the record for most wins by a major college coach.


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After early start, worst of flu season may be over


NEW YORK (AP) — The worst of the flu season appears to be over.


The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.


The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.


"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.


But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.


For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.


Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.


"There's no question that we're seeing a decline," she said.


In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.


Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications


But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.


So far, the season has been labeled moderately severe.


Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.


The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says


On average, about 24,000 Americans die each flu season, according to the CDC.


According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.


Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.


___


Online:


CDC: http://www.cdc.gov/flu/


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All eyes on Frank Ocean as Grammy Awards approach


LOS ANGELES (AP) — Everybody's thinkin' about Frank Ocean.


Ocean is a cause celebre and the man with the momentum as Sunday's Grammy Awards approach. One of six top nominees with six nominations apiece, the 25-year-old R&B singer turned cultural talking point will have the music world's attention.


It remains to be seen if it will be the "Thinkin Bout You" singer's night, but there's no question he's dominated the discussion so far. Already a budding star with a gift for building buzz as well as crafting songs, Ocean was swept up by something more profound when he told fans his first love was a man last fall as he prepared to release his major-label debut, "channel ORANGE."


It was a bold move and one that could have submarined his career before it really even got started. Instead, everyone from Beyonce to the often-homophobic R&B and rap communities showed public support. It was a remarkable moment.


"It speaks to the advancements of our culture," renowned producer Rick Rubin said. "It feels like the culture's moving forward and he's a representative of the new acceptance in the world for different ideas, which just broadens (our experience), makes the world a better place."


A recent altercation in a parking lot with Chris Brown only focused more attention on Ocean. Ocean says Brown was the aggressor; both are competing against each other in one of the Grammy categories.


Ocean is up for the major awards best new artist, album of the year and record of the year when the show airs live on CBS at 8 p.m. EST from the Staples Center, sharing top-nominee billing with fun., Dan Auerbach of The Black Keys, Mumford & Sons, Jay-Z and Kanye West.


Don't hand Ocean those trophies just yet, though. R&B and hip-hop performers (Ocean is part of the Odd Future collective) have had a spotty history at the Grammys recently when it comes to major awards.


Only one R&B act has won album of the year this century, and it's hard to even call him just an R&B act given his legend, artistic scope and material: Ray Charles for his "Genius & Friends," an all-star collaboration that was honored posthumously.


Also limiting Ocean's chances for a clean sweep are his fellow top nominees. Most are riding waves of their own.


Fun. became just the second act to sweep nominations in all four major categories with a debut album, equaling Christopher Cross' 1981 feat. Like Cross' "Sailing," the New York-based pop-rock band has ridden along on the crest of an inescapable song: "We Are Young," featuring Janelle Monae.


Cross won five Grammys, sweeping the major awards. Fun. likely will have a much harder time piling up that number of victories because of the buzz surrounding the group's competitors. It's not just Ocean who has people talking.


London-based folk-rockers Mumford & Sons had one of the top-selling albums of the year with "Babel" and already has a history with The Recording Academy's thousands of voters, having been nominated for major awards the year prior. Also, The Black Keys have a winning track record at the Grammys.


And don't count out West and Jay-Z, who were shut out of the major categories but remain very much in voters' minds.


Jack White's "Blunderbuss" competes with fun.'s "Some Nights," Ocean's "channel ORANGE," Mumford's "Babel" and The Keys' "El Camino" for the night's top award, album of the year.


Gotye's "Somebody That I Used To Know," featuring Kimbra, Taylor Swift's "We Are Never Ever Getting Back Together" and Kelly Clarkson's "Stronger (What Doesn't Kill You)" join the fun., Ocean and Black Keys entries in record of the year.


Fun. and Clarkson also are nominated for song of the year along with Ed Sheeran's "The A Team," Carly Rae Jepsen's "Call Me Maybe" and Miguel's "Adorn."


And rounding out the major categories, fun., Ocean, Alabama Shakes, Hunter Hayes and The Lumineers are up for best new artist.


Those major nominees figure prominently on the 3 1/2-hour telecast, broadcast live on CBS at 8 p.m. EST.


Swift will kick things off with a show-opening performance. Fun. and Ocean will take the stage. Others scheduled to perform include Justin Timberlake, Carrie Underwood, Clarkson, White and Juanes.


There will be no shortage of mashups the Grammys have become famous for, either. Elton John, Mavis Staples, Mumford, Brittany Howard, T Bone Burnett and Zac Brown are saluting the late Levon Helm, who won the Americana Grammy last year a few months before his death. The Keys will join Dr. John and the Preservation Hall Jazz Band on stage. Sting, Rihanna and Bruno Mars will perform together. Other team-ups include Miranda Lambert and Dierks Bentley, and Alicia Keys and Maroon 5.


___


Online:


http://grammy.com


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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The fine line between legitimate businesses and pyramid schemes









Controversy is again casting a shadow over the multilevel marketing industry, as nutritional supplement company Herbalife Inc., which has thousands of distributors in the Chicago region, has been publicly called a pyramid scheme by a prominent investor — an allegation the company vigorously denies.


Meanwhile, a different multilevel marketer, Fortune Hi-Tech Marketing, was shut down in recent weeks after a lawsuit was brought by regulators and several states, including Illinois, alleging the company scammed consumers out of $169 million. The scheme affected an estimated 100,000 Americans, including some in Chicago, where it targeted Spanish-speaking consumers, the Federal Trade Commission alleged.


Most people outside the industry might have only a vague notion about multilevel marketing, also called network marketing and direct selling. It often involves personal sales of cosmetics, wellness products or home decor items — or as critics flippantly call it, "pills, potions and lotions" — usually sold through product parties hosted by friends or relatives.





For sellers, the companies offer the appeal of starting a business on the cheap with little training, working from home and being their own boss, if only for part-time money. Some might recruit friends and family to become sellers, which augments their own commissions and gives them a shot at the six-figure compensation many such marketing companies tout but few distributors attain.


The largest multilevel marketing companies, often known as MLMs, are household names: Avon, Mary Kay, Pampered Chef and Amway. MLMs have annual sales of about $30 billion, with about 16 million people in the United States selling their products, according to the industry group Direct Selling Association, which represents these firms and others.


The recent controversies might raise the question: What's the difference between a legitimate multilevel marketing company and an illegal pyramid scheme, in which only people who get in first — at the top of the pyramid-like structure — make money and everyone else is a dupe?


The harshest critics maintain there is no difference, that there's no such thing as a legitimate MLM and that the industry's secrets stay safe because of a cultlike mentality and a blind eye of regulators.


Jon M. Taylor, who was once a seller for an MLM company, said he has studied the industry for 18 years and analyzed more than 500 MLM companies. He maintains the website MLM-thetruth.com and offers a free e-book there.


"I have not yet found a good MLM — a good MLM is an oxymoron," Taylor said.


He said all MLM companies have the same flaw: They depend on endless chains of recruiting new members.  "There is no more unfair and deceptive practice than multilevel marketing," Taylor said.


Tracy Coenen, a forensic accountant and fraud investigator with Sequence Inc. in Chicago and Milwaukee, is author of the Fraud Files Blog. She is also a critic.


"Multilevel marketing companies are pyramid schemes that the government allows to operate," said Coenen. "The only difference is that Herbalife, or any multilevel marketing company, has a tangible product that they use to make their pyramid appear legitimate."


The Direct Selling Association says MLMs are legitimate businesses, and that the group has about 200 members carefully screened by the organization to ensure they are not pyramid schemes and don't use deceptive practices.


The Federal Trade Commission agrees there are legitimate MLMs. The difference between a legitimate business and pyramid scheme comes down to products.


If the company and its distributors make money primarily from the sale of products to end-users (and not boxes of product accumulating in a distributor's garage), it's OK.


By contrast, a pyramid scheme compensates those at the top of the pyramid with participation fees paid by those recruited at the bottom. It eventually collapses when the scheme can't recruit more people.


But identifying a pyramid scheme can be difficult because MLMs typically have product sales, along with recruitment fees and recruitment incentives.


"It gets cloudy when you have a situation where you have fees being paid for both," said Monica Vaca, assistant director of the FTC's division of marketing practices. "It's very nuanced."


While prosecuting an MLM can seem somewhat of a judgment call, cases have a common factor: deceptive promises about how much money distributors will earn, Vaca said.


In the Fortune Hi-Tech Marketing case filed last month, C. Steven Baker, director of the FTC's Midwest region, said, "These defendants were promising people that if they worked hard they could make lots of money. But it was a rigged game, and the vast majority of people lost money."





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Hadiya Pendleton funeral: 'God is our refuge'









The funeral of slain teen Hadiya Pendleton began today amid large crowds, long lines and heavy security prompted by the attendance of first lady Michelle Obama.

While family and friends kept the focus on the 15-year-old girl who was shot dead in a South Side park, the first lady's appearance inevitably brought attention to anti-gun efforts nationwide.


Hadiya's pastor, Courtney C. Maxwell from the Greater Deliverance Temple Church of Christ, opened the services about 11:15 a.m. after a heart-shaped balloon was placed near her casket.
 
He thanked everyone for being at the Greater Harvest Baptist Church, including elected officials. “The family says thank you and God bless you.’’ He asked for round of applause for the Pendleton family.
 
“Only God can keep you and strengthen you, for God is our refuge and our strength,’’ the pastor said. 


The pastor said Hadiya was “genuine and real.’’

“She was energetic, loved music, loved the arts,’’ the pastor said.

After the pastor spoke, a female reverend dressed in white addressed the crowd and a choir behind her began singing.

“Blessed are they that mourn, for they shall be comforted,’’ she said, as the choir sang after her.

Another man, who identified himself as an assistant pastor of the Life Center church, read from scriptures.

“She is more precious than rubies. … Her ways are of pleasantness,’’ he said.








About 11:30 a.m., Pastor Elder Eric Thomas of the host Greater Harvest Baptist Church spoke to the mourners and described Hadiya as a “beloved angel.’’
 
“Her life has not been in vain,’’ Thomas said.
 
A female singer and organist the played a religious song, as about 30 others in the choir, all dress in white, stood and swayed gently from side to side before the large cross that was draped in white.


Kenya Edwards, who identified herself as a radio personality and a friend, read a poem called “Walking,’’ which was written for Hadiya by Zora Howard.

Afterwards, Edwards said: “Ladies and gentlemen, it’s time for us to start walking. It’s time to take a stand.’’

Then two girls who appeared to be Hadiya's classmates and friends performed a poem they wrote for her, which began by comparing violence in Chicago to that of Iraq.
 
The girls then took turns to speak each part of the poem: “Dear Hadiya. I wish you were still here with me. That smile … that you smile so confidentially.’’

They also spoke to the killer: “Know that you killed an innocent person."

It ended when they both said: “We’re sorry Hadiya. We miss you,’’ and sat down to applause.


A woman then spoke on behalf of Barbara Bird Bennett, Chicago Public Schools CEO who was kept form the service due to a family emergency.
 
She described Hadiya as a strong, talented and ambitious young woman, whose memory would live on.

“Hadiya was a terrific student. She cared about her community,’’ she said.

“My heart gets broken’’ everytime another student is killed, she said, calling them “our precious children. I refuse to tolerate the violence that plagues our communities and has taken away the lives of too many children."

“I know there’s nothing I can say that can ease the pain of [Hadiya's parents] Cleopatra and Nathaniel,’’ but “I will be inspired by Hadiya every day … as I walk through the halls,’’ she said.


A woman who identified herself as Hadiya’s aunt then spoke, asking, “What was inside Hadiya that connected her to those who didn’t know her?”

“It was her inner light’’ that connected her with humanity’s inner light, she said. “Light has power and has potent force,’’ and can cause "mankind to feel an inner awakening and a sense of love.’’

“Light can pursue darkness ... it diffuses darkness,’’
her aunt said. "Hadiya. The light.’’

Father Michael Pfleger was introduced and called Hadiya an "innocent victim of gun violence,’’ asking,  “When did we lose our soul?”

He told crowd that “we must become like Jesus’’ and become “the interrupters’’ of genocide, and evil that is killing our children.
 
“Welcome home, sweet Hadiya. See you on the other side," he said.

Damon Stewart, Hadiya's godfather, then said, “I’m going to speak as if we’re family,’’ adding that he had “two spiritual thoughts’’ he wanted to stress.

“God makes no mistakes,’’ he said. “I don’t believe in coincidence; I believe in divine intervention.’’

Wearing a black suit and black shirt, he also wore purple in honor of Hadiya -- a purple tie and ribbon on his chest, and a purple handkerchief in chest pocket.
 
“I loved that child,’’ he said.

Hundreds of mourners had lined up early to pay respects to Hadiya, who was a majorette for King College Prep's band and performed during President Barack Obama's inauguration festivities just days before she was slain, shot in the back while hanging out with friends at a North Kenwood neighborhood park.

Thirty minutes before the doors were set to open, hundreds stood waiting in line amid heavy security to get into Greater Harvest Baptist Church in the Washington Park neighborhood, about two miles from where the 15-year-old girl was gunned down last month. Among the groups of high school-age students waiting in the line was the King College Prep majorettes team, who came together in their yellow and black majorette coats.

Guests who were invited by the family were given orange wristbands and were able to enter through a shorter security line. Classmates and friends of Pendleton were given green wristbands and allowed to enter through that same line.

Trinity Dishmon, 40, said her daughter Deja, 15, and Hadiya were close friends in middle school. The two girls stayed in touch and were texting about their upcoming 16th birthdays while Hadiya was in D.C. for the president's inauguration in January.

"Hadiya was a gift to everyone that knew her," Dishmon said, tearing up. "These last 12 days have been unbelievably numbing. It's not six degrees of separation anymore, it's one. It's just unreal."

Dishmon said she feared that the day was less about the teenager and more about a larger issue.

"This is Hadiya's day and should be about her -- not something sensational," Dishmon said. "But maybe by honoring her life we can help make a difference."

Inside the church, Hadiya’s silver casket was placed in the front, surrounded by flowers and two large hearts, one with her picture on it. Behind the casket, a TV screen showed pictures of Hadiya with her family, from birth to her teenage years.

At 9:09 a.m., friends, students and others with wristbands were allowed to file down the aisle to view the body. Her young friends were seated in the front pews, directly behind the casket. Her classmates and friends filled the middle section of the church — 11 rows in all. Members of the Crystal Elegance Majorette squad held on to each other as they filed down the aisle in pairs to view the body.

A funeral director wearing a suit and white gloves came outside at 9:40 a.m. to announce to the hundreds still waiting in line that the church was “at capacity.” Those still in line could come in and view the body, he said, but would have to leave before the services.

The funeral procession arrived at about 9:45 a.m., including three limousines and dozens of cars.

The first lady’s motorcade pulled into the church parking lot at about 10:15 a.m. She went in through a separate side entrance at the rear of the church, stepping directly from a vehicle into the building.

At about the same time, the funeral director came back out and announced to the hundreds still waiting in line that no one else would be allowed inside — not for the viewing or the funeral.


The family filed down the aisle a little after 10 a.m. and viewed the body in the still open casket. The pastor led the procession down the aisle chanting "the Lord is my shepherd" as soft organ music played in the background.

Ushers walked down the aisle handing out tissues, and those without wristbands were asked to give up their seats so that family members could be seated in the sanctuary. Every seat was filled by 9:45 a.m.

Purple, Hadiya’s favorite color, is represented in many of the flowers in the church and the lining of her casket. Ushers handed out a glossy funeral program booklet printed on purple paper. The front cover says "Celebrating The Life Of ... Hadiya Zaymara Pendleton.” Inside are more than 50 photos of Hadiya throughout her life.
 
Her obituary printed in the booklet describes her work in the church and even her favorite foods: Chinese, cheeseburgers, ice cream and Fig Newtons. It includes tributes from her grandmother, her cousin and an aunt as well as close friends. According to the program, the speakers are to include Illinois Secretary of State Jesse White.
 
The back of the program has a copy of a handwritten note from President Barack Obama: "Dear Cleopatra and Nathaniel, Michelle and I just wanted you to know how heartbroken we are to have heard about Hadiya's passing. We know that no words from us can soothe the pain, but rest assured that we are praying for you, and that we will continue to work as hard as we can to end this senseless violence. God Bless.”

Gov. Pat Quinn entered from the upstairs balcony, went up to greet the family and then stood for a brief moment over the casket, looking at Hadiyah.

Other dignitaries entering the church were Ill. Attorney General Lisa Madigan and Rev. Michael Pfleger, a longtime community activist on the South Side and pastor of St. Sabina Catholic Church in Chicago. Rev. Jesse Jackson stood at the front near the casket with members of the family for a while and then took a seat in the audience behind the family. 


Prior to the service, the first lady met privately with about 30 of Hadiya's friends and classmates, and then with members of Hadiya's family, according to a White House official.


Just before the funeral began, the first lady, Mayor Rahm Emanuel and Cook County Board President Toni Preckwinkle could be seen seated near one another other and near the casket. Colorful bouquets of flowers were placed near the casket.

Michelle Obama, wearing dark blue, was then seen standing, comforting someone, possibly the pastor.


Even after those outside were told they would not be allowed in, many continued to gather around the church's front gate.

Some began to file out, having to hop over the metal barricades to exit the long line.

One man asked the funeral staff member if he could at least have a pamphlet from the funeral before he left.

"Oh sir, those are long gone. They only printed 1,500," the funeral staff member said.

Activists, religious groups and others passed out printed material to those standing in line. Some kept the papers, others were left on the snowy ground as the crowds left.

Michelle Obama's attendance puts Chicago solidly in the middle of a national debate over gun violence that has polarized Congress and forced President Obama to take his gun control initiatives on the road to garner more public support.

The first lady's visit is being seen not only as a gesture of condolence to the family but as part of an effort to draw attention and support for the president's gun initiatives.

But the visit also meant scores of security, police and Secret Service agents, metal detectors and other security measures.

Other dignitaries expected to attend the funeral included Secretary of Education Arne Duncan and Valerie Jarrett, senior adviser to Barack Obama.

The church is surrounded by an iron fence and all of the openings -- a pedestrian gate in the front, front and side doors to the church, and a driveway to the north -- are guarded by city police or men in white shirts, ties and long black coats. Chicago police vehicles -- two wagons, a handful of squads and SUVs -- guarded the outside of the church while other vehicles circle the block.

Chicago police staffing the event are wearing dress blues -- a blue overcoat with pockets that allow access to the duty belt, creased navy pants, and a hat.

King College Prep math and engineering teacher Alonzo Hoskins stood quietly in line with others. He said he taught Hadiya in his first-period geometry class, where he now has an empty desk.

"She was full of life," Hoskins said.

Hoskins looked at the sea of people that preceded him in line. "I want to support the family. For me, this isn't about the dignitaries," Hoskins said.

"But I don't know if I'll even get in."

Some waiting in line for the funeral said they didn't know the Pendletons personally but felt some connection to the teenager's death.

Earl Worthington, 51, said his mother was an elementary school teacher in Chicago and would have embraced a driven young student like Hadiya.

“She's the type of girl my mother would have produced in her class,” Worthington said. “I feel a connection to Hadiya's death through my mother. I feel my mother is with her right now in heaven.”

Nate Weathers, 16,  Jeramy Brown, 16, and Antoine Fuller, 15, all stood in line to see their former classmate. The three young men said they attended Carter G. Woodson Middle School with Hadiya.

“This tears me up,” Fuller said. “She was my 7th grade crush.”

Brown described Hadiya as “sweet and innocent.”

“Something like this should have never happened to her,” Brown said.

Police took two men into custody after they got into an altercation near the back of the long line of mourners waiting to get into the church. One man was agitated, complaining about the long wait to get in. A second man confronted him and they began shoving each other before police intervened.


Local and national pool reports contributed.

chicagobreaking@tribune.com


Twitter: @chicagobreaking 



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Google's Schmidt to sell roughly 42 percent of stake


SAN FRANCISCO (Reuters) - Google Inc Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the Internet search company, a move that could potentially net the former chief executive a $2.51 billion windfall.


Schmidt, 57, will sell 3.2 million shares of Class A common stock through a stock trading plan, Google said in a filing with the U.S. Securities and Exchange Commission on Friday.


The plan, which Google said would give Schmidt "individual asset diversification and liquidity," allows Schmidt to spread trades out over a period of one year to reduce the market impact.


Shares of Google were down $4.11 at $781.26 in after-hours trading on Friday.


A Google spokeswoman would not comment on why Schmidt is selling the shares at this time.


Wedbush Securities analyst James Dix said Schmidt's stock sales did not worry him or signal a loss of confidence in the company by Schmidt.


"I'd be more worried if the current CEO or CFO sold a lot of their stake," said Dix.


Schmidt, who served as Google's chief executive until 2011, currently owns roughly 7.6 million shares of Class A and Class B common stock. The shares represent 2.3 percent of Google's outstanding stock and roughly 8.2 percent of the voting power of Google's stock.


The fact that Schmidt will still own a significant amount of shares after the sales means he'll have a good deal of "skin in the Google game," said Needham & Co analyst Kerry Rice. But he said it could hint at Schmidt playing a less central role within the company going forward.


"My speculation is that Eric's relationship with Google is evolving," said Rice. "I would assume that as he decides he wants to diversify away from Google - both his career and financially - he's got ideas of what he would like to do with some of his funds."


Schmidt, who helped turn Google into the world's No.1 search engine during his decade as CEO, handed the reins to Google co-founder Larry Page in April 2011.


As executive chairman, Schmidt has been particularly involved in government relations, taking a leading role in the company's discussions with antitrust regulators in the United States and the European Union. The U.S. Federal Trade Commission ended its investigation into Google last month without any action. Google has offered to change some of its business practices to appease European competition regulators.


"As Google moves to maybe more tactical battles, as opposed to the strategic battles it's been waging with the government, once those are concluded, maybe his role can be lessened," said Needham & Co's Rice.


Schmidt has also made headlines apart from Google. In January, Schmidt traveled to North Korea with former New Mexico Governor Bill Richardson for a "personal" trip. The trip was criticized by the U.S. State Department as ill-timed - coming weeks after North Korea conducted a rocket launch in violation of U.N. Security Council sanctions.


Shares of Google are trading at all-time highs, finishing Friday's regular session at a record closing price of $785.37. At that price, Schmidt's share sales would be worth $2.51 billion.


Google said that Schmidt entered into the stock trading plan in November.


Schmidt was ranked 138 on the Forbes list of global billionaires with a net worth of $6.9 billion in March 2012.


Given Schmidt's changed role at the company and the amount of his wealth tied up in Google's stock, it was not unreasonable for him to diversify his holdings, said Wedbush Securities analyst Dix.


"As good as Google stock is, it isn't as good as cash if you actually want to buy something," he said.


(Reporting by Alexei Oreskovic; Editing by Tim Dobbyn and Lisa Shumaker)



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Northeast storm disrupts travel for sports teams


Several professional and college sports teams were forced to rearrange their travel plans as a massive storm swept through the Northeast, dumping a few feet of snow in some areas.


The NBA's New York Knicks were stuck in Minnesota after playing the Timberwolves on Friday night, hoping to try to fly home sometime Saturday. The San Antonio Spurs were also staying overnight in Detroit after seeing their 11-game winning streak fall to the Pistons, awaiting word on when they might be able to fly to New York for their game Sunday night at Brooklyn.


"We can't get there tonight — we know that," Spurs coach Gregg Popovich said. "So we're going to stay here tonight and try to get there (Saturday). Hopefully, we will be able to get there, but at this point, we don't know."


Airlines canceled more than 5,300 flights through Saturday, and New York City's three major airports and Boston's Logan Airport closed.


The Brooklyn Nets planned to take a train home instead of flying from Washington D.C. after losing to the Wizards on Friday night.


Knicks coach Mike Woodson said before a 100-94 victory that his team initially planned to fly home after the game, but the flight had already been postponed. New York is scheduled to play the Los Angeles Clippers at Madison Square Garden on Sunday.


The NHL's Boston Bruins pushed back the start of Saturday's game against the Tampa Bay Lightning by six hours because of the blizzard. The game originally slated for 1 p.m. was rescheduled for 7 p.m., but Boston was expected to be one of the cities hit hardest by the storm.


The storm had dumped more than 2 feet of snow on New England by early Saturday and knocked out power to 650,000 customers. The National Weather Service said up to 3 feet of snow is expected in Boston, threatening the city's 2003 record of 27.6 inches.


The Bruins and Lightning each already had road games scheduled for Sunday night.


The New Jersey Devils were still scheduled to host the Pittsburgh Penguins at 1 p.m., while the New York Islanders were slated to play at home against the Buffalo Sabres at 7 p.m.


Two Ivy League men's college basketball games that were scheduled for Saturday night were moved back to Sunday because of treacherous travel conditions.


Dartmouth will play at Cornell at noon on Sunday in Ithaca, N.Y., and Harvard will visit Columbia at 2 p.m. Sunday in New York. Dartmouth played at Columbia on Friday night, and Harvard played at Cornell. Two other Ivy League games were still scheduled to be played Saturday night, with Yale visiting Princeton and Brown playing at Pennsylvania.


Aqueduct also called off Saturday's card because of the storm. The track and Belmont Park were expected to remain open for wagering on out-of-town races, with racing scheduled to resume Sunday.


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After early start, worst of flu season may be over


NEW YORK (AP) — The worst of the flu season appears to be over.


The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.


The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.


"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.


But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.


For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.


Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.


"There's no question that we're seeing a decline," she said.


In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.


Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications


But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.


So far, the season has been labeled moderately severe.


Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.


The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says


On average, about 24,000 Americans die each flu season, according to the CDC.


According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.


Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.


___


Online:


CDC: http://www.cdc.gov/flu/


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