Business News - ABC News Radio

• Facebook Employees Will Be Ringing in IPO with 'Hackathon'
  

  Peter Foley/Bloomberg via Getty Images(MENLO PARK, Calif.) -- It’s going to be a sleepover at Facebook the night before the big IPO.
  
  Employees from the social networking site will be holding what the company calls a "hackathon" Thursday night. 
  
  According to Facebook, "Hackathons are a big tradition at Facebook.  They serve as the foundation for some great (and not so great) ideas.  It gives our employees the opportunity to try out new ideas and collaborate with other people in a fun environment."
  
  Basically, the company’s employees spend the night working on their ideas to see where they go.  Everyone at the company is invited.
  
  This is something they have done in the past, but this will be their last such endeavor as a private company.
  
  The next morning, Mark Zuckerberg will ring the opening bell on Wall Street, making many of these employees millionaires and billionaires.

  Copyright 2012 ABC News Radio

  
  
  
• 'Baggage Battles': Airports Auction Lost, Misplaced and Forgotten Luggage
  

  iStockphoto/Thinkstock(MIAMI) -- Ever wonder what happened to that piece of lost luggage that was never seen again? In some instances, the airport where it was left could have auctioned it off for profit.
  
  One of the busiest hubs in the United States is Miami International Airport, where M-I-A isn't just the airport's call letters, but could easily stand for luggage that is "missing in action." The airport is home to an enormous graveyard of discarded duffel bags and carry-ons that have been cast aside. There are also forgotten bikes, laptops, surfboards, cameras, cellphones, even paintings and crutches -- all of which have gone unclaimed or don't carry identification.
  
  "We take the time to make sure that we reconnect the item with the person if that's possible," said Miami International spokesman Marc Henderson. "But, you know, the airport is not a storage shelter. So after 60 days, it's like, OK, it's time to have an auction."
  
  Last year, across the United States, nearly 2 million suitcases were reported to be either lost, damaged or delayed. About 10,000 bags go missing at Miami International alone every year.
  
  To avoid losing your luggage, Henderson said it is as simple as keeping your bag with you at all times.
  
  "I walk the terminal all the time. Traditionally on average one or two times a day, I will see a bag that is not attended," he said. "Somebody has walked away, have gone into a shop, they've gone into an eating establishment. They've left their bag there."
  
  That's a "no-no," Henderson said, because of the heightened security at airports today. He also suggested not packing anything of significant value, or if you must, carry those items with you on the plane.
  
  Miami International hosts a lost luggage auction twice a year to a standing room-only crowd who pays a $3 admission fee to get in on the bidding action. Most of the patrons are just regular folks who are looking to turn a quick profit.
  
  Billy Leroy, who owns an eclectic props and antique store in New York City, was one of the bidders in Miami and is also one of the stars of the Travel Channel's new reality TV show, Baggage Battles, which airs on Wednesdays at 10 p.m. ET/PT. The show follows three teams of savvy auction specialists who travel the world to place bets in high-stakes luggage auctions.
  
  Dozens of these auctions happen at airports all over the country, with thousands of bags and millions of dollars at stake. Bidders can't open the unclaimed bags and have to rely on their instincts to place bets on what could be inside -- which could be anything from expensive jewelry or just laundry.
  
  Only after bidders win the bags do they get to open them and find out if they have hit the jackpot.
  
  "You've got to shoot from the hip and just vibe it," Leroy said of betting on the bags. "I mean, it sounds crazy but that's how I do it, that's how I make my business is by my gut feeling."
  
  Faced with a mountain of luggage, bidders are given about an hour to pick up the bags, handle them and get a feel for what they might be carrying. Leroy also said he employs a "smell test," and said he won't bid on a bag that smells bad.
  
  "Heavy is good, but carry-on is good too," Leroy said. "Expensive carry-on is good, and heavy, expensive carry-on is good, but heavy expensive carry-on could have dirty underwear in it."
  
  But Leroy said that formula can sometimes backfire because an expensive-looking bag could be a fake.
  
  Miami International has made as much as $100,000 in a single auction and it's not just off lost luggage bags. They also auction off singular items in bulk, where bidders can take bets on bags of jewelry or electronics that have been left at TSA checkpoints, or entire cargo loads of discarded items.
  
  Copyright 2012 ABC News Radio

  
  
  
• Stocks Fall for Fourth Consecutive Day
  

  Hemera/Thinkstock(NEW YORK) -- After initially climbing into positive territory upon news from the latest Federal Reserve meeting, stocks fell Wednesday on worries about Europe's shaky financial situation, particularly in Greece.
   
  The Dow closed down 33 points at 12,598. The Nasdaq lost 20 points to close at 2,874, while the S&P gave up just six points, closing at 1,324.
   
  The markets continue to be held back by fear that Greece's political unrest could lead to the nation's exit from the European Union.
   
  Meanwhile, the Federal Reserve has released the minutes of its latest meeting.  Members are ready to do more to stimulate the economy if growth falters, or even if there are more signs that it will. That's in stark contrast to the Central Bank's previous meeting, when the Fed initially said no new help was needed.
   
  Copyright 2012 ABC News Radio

  
  
  
• General Motors to Add 600 New Jobs
  

  Bill Pugliano/Getty Images(DETROIT) -- General Motors is adding 600 new jobs at its Lansing Grand River assembly plant to assist with the development of the Cadillac ATS, the auto company announced Wednesday.
  
  A GM official said it has already hired 460 of the new hires and has identified who will fill the balance of the new positions. The new hires will be utilized in the plant's second shift.
  
  The auto company has used the Lansing Grand River plant exclusively for its manufacturing of Cadillacs. The ATS will be the auto maker's first small luxury vehicle and is expected to compete with the BMW 3 series and Mercedes Benz C class within that market space.
  
  The company hires are expected to make an estimated $16 an hour.
  
  Copyright 2012 ABC News Radio

  
  
  
• Skechers to Pay $40 Million for False Toning Shoe Claims
  

  Konrad Fiedler/Bloomberg via Getty Images(WASHINGTON) -- Skechers advertised that its toning shoes would help people lose weight, build muscle and get in shape, claims that will now cost the company $40 million in a settlement with U.S. regulators.
  
  The Federal Trade Commission announced Wednesday the company has agreed to the settlement on charges that it "deceived consumers by making unfounded claims" about its Shape-ups, Resistance Runner, Toners and Tone-ups lines of shoes. Consumers who bought the shoes are entitled to refunds.
  
  "Skechers' unfounded claims went beyond stronger and more toned muscles. The company even made claims about weight loss and cardiovascular health," David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a statement. "The FTC's message, for Skechers and other national advertisers, is to shape up your substantiation or tone down your claims."
  
  The FTC also alleges that Skechers manipulated and "cherry-picked results" from studies to support their claims. In one case, the FTC says Skechers touted the endorsement of chiropractor Dr. Steven Gautreau, but did not disclose that Gautreau was married to a Skechers marketing executive and that Skechers paid him to conduct the study, which the FTC alleges did not support the claims in the ad.
  
  Skechers denies its ads were unsupported and says it "believes its advertising was appropriate."
  
  "While we vigorously deny the allegations made in these legal proceedings and looked forward to vindicating these claims in court, Skechers could not ignore the exorbitant cost and endless distraction of several years spent defending multiple lawsuits in multiple courts across the country," David Weinberg, Skechers' chief financial officer, said in a statement.
  
  The Skechers' settlement comes less than a year after Reebok agreed to pay $25 million to settle charges it misled consumers with false claims about EasyTone walking shoes and RunTone running shoes.
  
  The FTC's settlement with Skechers is part of a broader agreement that resolves an investigation that included the attorney generals from 44 states. Under the settlement Skechers is not allowed to make any claims about its toning shoes involving health or fitness benefits unless they are backed by scientific evidence.
  
  "Hopefully, at least here stateside, this will make big companies think twice before they make these specious advertising claims," Chris Morran, deputy editor at Consumerist.com, told ABC News. "The hurt isn't the $40 million penalty, it's the millions Skechers won't be making selling toning shoes. ... The sneakers are going overnight from miracle weight loss, muscle toning shoes to sneakers and that's the bigger hurt."
  
  Skechers' has also been sued by consumers alleging that Shape-ups can cause serious injuries, including stress fractures.
  
  Copyright 2012 ABC News Radio