Businessman who helped start Southwest dies

DALLAS — Rollin King, a San Antonio businessman who helped start Southwest Airlines Co. and create a new age of competition in the airline industry, has died at 83.

King died Thursday in Dallas of the effects from a major stroke about a year ago, his son, Edward King, told The Associated Press.

Longtime Southwest CEO Herb Kelleher praised King for coming up with the idea of a discount airline that would serve Texas travelers. Kelleher said in a statement issued by Southwest on Friday that the notion of a low-cost, low-fare airline with quality service became a model not only in the U.S. but worldwide.

"The people of Southwest Airlines grieve with Rollin's family, mourn his absence, and thank him for his vision," Kelleher said.

The airline's current CEO, Gary Kelly, said King helped democratize air travel by making it more affordable.

Interstate air service was heavily regulated by the federal government in 1967, when King sat down with Kelleher, his lawyer, to map out the idea for a no-frills airline that would fly between Dallas, Houston and San Antonio. Edward King said his father got the idea for a Texas-only carrier by studying the success of Pacific Southwest Airlines, which operated within California.

The fledgling carrier had to survive several legal challenges by Braniff International and other airlines before its first flight in 1971. It began flying outside Texas in 1979, after deregulation, and is scheduled to begin international flights next week. Southwest is the nation's fourth-biggest airline company, with 2013 revenues of $17.7 billion.

King served on the board of directors from 1967, when the company was incorporated as Air Southwest, until 2006. He also flew as a Southwest pilot for a few years in the 1970s.

King was born in Cleveland, attended Case Western Reserve University and received a master's in business administration from Harvard, according to his son. He moved to Texas and was working in investment banking and acquired a small air-taxi service in South Texas before starting Southwest, according to the Texas State Historical Association.

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RI, law firm strike $4.4M agreement on 38 Studios

PROVIDENCE, R.I. — A law firm sued by Rhode Island's economic development agency over the failed $75 million deal with former Boston Red Sox pitcher Curt Schilling's video game company has agreed to settle for $4.4 million, the sides said in a court filing Friday.

If approved by a judge, it would be the first settlement in the high-profile lawsuit over 38 Studios.

The deal has cast a shadow over Rhode Island politics ever since the company went bankrupt two years ago, leaving taxpayers on the hook for as much as $100 million. The lawsuit was filed in 2012 against Schilling and others as an attempt to recover some of that money.

"The proposed settlement is a step in the right direction, and I hope this is the beginning of a positive resolution to the 38 Studios saga," Gov. Lincoln Chafee said in a written statement.

The settlement agreement between the agency formerly known as the Economic Development Corp. and lawyer Antonio Afonso and his firm Moses Afonso Ryan was filed with Superior Court Judge Michael Silverstein. Court spokesman Craig Berke said the judge will have a hearing on it July 7.

The law firm said in the filing that it continues to deny any liability but wants to put the matter behind it, as well as avoid the risk of a larger judgment at trial. The state agency's lawyer said the agency is worried there could be little left in the firm's insurance policy if the case goes to trial.

38 Studios moved to Rhode Island from Massachusetts in 2010 with the promise of a $75 million state loan guarantee. But it was never able to raise the money it needed to survive and declared bankruptcy in 2012, leaving taxpayers on the hook to repay bonds that had been issued to fund the venture.

The lawsuit alleges defendants including two former agency employees, investment banks and others misled the state into approving the loan guarantee. Moses Afonso worked on the bond sale and was accused of breach of fiduciary duty, fraud, malpractice, negligence and other wrongdoing.

A number of high profile people have been deposed or subpoenaed in the case, including former Gov. Don Carcieri, who pushed for the deal, and former House Speaker Gordon Fox, who supported it and stepped down in March after the FBI and IRS raided the Statehouse and his home for still-unexplained reasons.

The lawsuit does not ask for a specific dollar amount but for the defendants to repay the bonds. The suit seeks triple damages.

38 Studios dominated debate at the General Assembly in the session that ended this month, with some lawmakers arguing that the state should not repay bondholders, but instead default on the moral obligation bonds. Chafee and others argued that not repaying the bonds could jeopardize the lawsuit. Ultimately, lawmakers approved $12.3 million for the next payment.

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Facebook: NYC prosecutors got data on 381 users

NEW YORK — Prosecutors building a sweeping disabilities-benefit fraud case got a trove of data from the Facebook accounts of more than 380 people, the social media giant said this week as it disclosed a nearly yearlong legal fight over the largest set of search warrants it has ever received.

Facebook ultimately turned over the information but is appealing the court order that required it to do so, saying prosecutors intruded on users' privacy. The Manhattan district attorney's office and a judge have said the search warrants were justified.

The dispute adds to a roster of clashes between authorities and Internet companies over law enforcement efforts to scrutinize people's online lives for potential evidence.

"It's part of a trend toward more aggressive challenges by Internet providers on behalf of their customers," said Orin Kerr, a George Washington University law professor who specializes in issues surrounding computers and crime.

It began secretly last July, when Manhattan Criminal Court Judge Melissa Jackson approved 381 search warrants for various Facebook users' postings, friend lists, photos, private messages and other data, according to court filings unsealed Wednesday and first reported by The New York Times. The users ranged from high school students to grandparents, Facebook said in a filing last week.

Sixty-two of those users are among the 134 people charged in the case, Deputy General Counsel Chris Sonderby wrote in a blog post Thursday. It's unclear whether other users will be charged.

The warrants aimed to gather evidence against police and fire retirees allegedly coached to claim they were too psychologically devastated to work even as they golfed, rode motorcycles and otherwise led robust lives — and sometimes posted the alleged proof on Facebook. More than half of the 134 defendants so far have pleaded guilty. Prosecutors say up to 1,000 people may have been involved and more charges could come.

Menlo Park, California-based Facebook argued the warrants cast a net as wide as "the digital equivalent of seizing everything in someone's home."

"Except here, it is not a single home but an entire neighborhood of nearly 400 homes," the company wrote in last week's filing.

But prosecutors say they gave the judge a 93-page explanation of why each targeted account would likely yield evidence.

"The defendants in this case repeatedly lied to the government about their mental, physical, and social capabilities. Their Facebook accounts told a different story," DA's office spokeswoman Joan Vollero said in a statement Friday.

Jackson rebuffed Facebook's objections in a now-unsealed September ruling, saying law enforcement has "the authority to search and seize a massive amount of material to seek evidence," even if some of the items turn out to be irrelevant.

An appeals court declined in November to hold off Jackson's order while Facebook's appeal plays out. Facebook then surrendered the information.

Over the years, online companies have sometimes prevailed in pushing back on authorities' demands for information about their users. They also have lost some fights; Twitter, for instance, objected but ultimately acceded to Manhattan prosecutors' demands for three months of tweets by an Occupy Wall Street protester in a disorderly conduct case. Twitter had been threatened with steep fines; the company later lost an appeal of the court order that had required turning over material.

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Home Showcase: Roomy Revere condo has a tempting price

With a million dollars becoming the new norm for a larger-sized condo in Boston's hotter neighborhoods, this 2,284-square-foot three-bedroom townhouse off Broadway in the center of Revere is a relative bargain at $389,900.

On a residential street, Unit A at 74 Cummings Ave. is one of two units in a project built in 2007. But while the vinyl-sided townhouse looks pretty conventional from the outside, it features a large, two-story open living/dining space with vaulted ceilings and skylights.

The living/dining space is a half-flight up a split-
level staircase that also leads down to a carpeted basement family room.

But it's the large open living/dining space that is the home's centerpiece, with oak floors, a three-part bay window, recessed lighting and fans between the skylights and a stainless steel gas fireplace built into one wall.

Adjacent to this area is a kitchen with cherrywood cabinets and light-colored granite countertops with bullnose edges that also cover a bi-level island/breakfast bar. There's stainless-steel GE appliances and a Marvel wine cooler.

There are two bedrooms on the first floor off a hallway that has a ceramic-tiled bathroom with a Corian-topped vanity and a one-piece 
Fiberglas shower, and a storage closet with a stacked washer and dryer. The larger oak-floored bedroom has lots of closet space and an en-suite ceramic tile bathroom with a Corian-topped vanity and a soaking tub/shower.

At the end of the hall is a door to a rear Trex-decked porch, which has stairs down to a small fenced-in backyard.

The second floor is entirely devoted to a large master bedroom suite with oak floors, recessed lighting and four closets. The en-suite master bathroom features black-and-white tile floors, a tiled walk-in shower and a dark Corian countertop over a cherrywood vanity.

There's a carpeted family room plus lots more storage space on the lower level. The unit has a gas-fired heating and central air-conditioning system.

The unit has its own driveway, which can hold up to three vehicles.

There's no monthly condo fee, and the only thing shared between the two units is an insurance policy, costing Unit A about $900 a year.

Home Showcase

• Address: 74 Cummings Ave., Unit A, Revere
• Bedrooms: Three
• Bathrooms: Three full
• List price: $389,900
• Square feet: 2,284
• Price per square foot: $171
• Annual taxes: $4,982
• Built in: 2007
• Location: Quarter-mile from retail, restaurants and services along Broadway, Revere's main 
retail district
• Broker: Paul Campano of Keller Williams Realty 
at 617-304-3686

Pros:

• Large, two-story open living dining area with vaulted ceilings, skylights
• Full bedroom suite on first floor and large master on second floor
• Cherrywood and granite kitchen with bi-level island
• Lots of closet storage space

Cons:

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The Ticker

Gaming panel to consider holding off casino licenses

State gambling regulators agreed yesterday to hear arguments next week and possibly rule on Boston Mayor Martin J. Walsh's request to suspend the eastern region casino license process until after the November election.

The state Gaming Commission said it will hold a public hearing on the request at Bunker Hill Community College in Charlestown on July 2. Representatives from Boston, Revere, Everett, Mohegan Sun and Wynn Resorts have been invited to present their arguments.

Wynn proposes a $1.6 billion casino in Everett. Mohegan Sun proposes a $1.3 billion casino on the Suffolk Downs horse racing track in Revere. The two gambling companies are competing for the lone casino license for the Boston-area.

Walsh has said he doesn't want to continue spending taxpayer dollars on negotiations with the companies until the fate of the state's 2011 casino law, which opened the door for Las Vegas-style gambling in the Bay State, is determined.

The state's highest court this week allowed a referendum to repeal the casino law to be placed on the November ballot.

38 Studios' law firm settles suit with R.I.

A law firm sued by Rhode Island's economic development agency over the state's failed $75 million deal with former Boston Red Sox pitcher Curt Schilling's video game company has agreed to settle for $4.4 million.

If approved by a judge, it would be the first settlement in the lawsuit, which also names Schilling and other executives of his company, 38 Studios, two former agency employees, investment banks and others.

The settlement agreement between the agency formerly known as the Economic Development Corp. and lawyer Antonio Afonso and his firm Moses Afonso Ryan was filed yesterday. Court spokesman Craig Berke said the judge will have a hearing on it July 7.

38 Studios moved to the state from Massachusetts in 2010 with the promise of a $75 million loan guarantee. It declared bankruptcy in 2012, leaving the state on the hook for as much as $100 million.

Avalon Danvers apartments sold

The DSF Group, a Waltham-based real estate investment and development firm announced that it acquired the 443-unit Avalon Danvers apartment complex in Danvers for $108.5 million. The deal represents the largest multifamily transaction in the greater Boston market this year. A major renovation will include construction of a new state-of-the-art health and fitness center, a yoga studio, virtual golf and boxing studio, movie theater and resident lounge. The property will be renamed Halstead Danvers.

Julie Kahn to head Regan Marketing

Entercom Group's former market manager, Julie Kahn, will lead a new division of Regan Communications specializing in marketing and media.

The new agency will handle everything from brand strategy and positioning to advertising, media planning and placement. "Over the past several years, we have expanded our footprint throughout the East Coast with the addition of Alchemy, Pierce-Cote Advertising and Quinn & Hary," said George K. Regan Jr. president of the communications group.

"When Julie joined the company, it was an easy decision to create this division with her at the helm." Regan said.

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Hub’s hot for solar benches

In search of that perfect spot to read, but worried a noisy field trip might ruin it? With a new crop of smart benches in the city, residents looking for a place to sit and relax can see noise level, weather conditions and more on the Internet before stepping outside.

"You want to know if you want to go to the Esplanade or the Greenway or the Boston Common to find a bench that is sunny, is quiet," said Sandra Richter, co-founder and CEO of Changing Environments, which is installing the benches in partnership with the mayor's office.

The benches have two charging ports for cellphones, but no cables. Richter said attached cables are often vandalized, and the company has found enough people travel with chargers.

"Your cell phone doesn't just make phone calls, why should our benches just be seats?" said Mayor Martin J. Walsh in a statement.
 "We are fortunate to have talented entrepreneurs and makers in Boston thinking creatively about sustainability and the next generation of amenities for our residents."

The benches send weather information, noise level data and whether the solar-powered charging ports are being used, all of which can be viewed online.

Changing Environments originated in the MIT Media Lab, and worked with the city's Office of New Urban Mechanics to pilot one of its benches last year.

Information from the benches can be seen at soofa.co.

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Senate probes GM supplier; new recall underway

The U.S. Senate is expanding its probe of General Motors' decade-long failure to recall vehicles with faulty ignition switches to include the part's supplier, as GM recalls even more cars for a different defect.

The Senate Commerce Committee is expected to question Delphi at an upcoming hearing about the ignition switches, which have been linked to crashes resulting in at least 13 deaths and prompting the recall of 2.6 million Saturn Ions, Chevrolet Cobalts and other small cars.

"It certainly needs to be done," Clarence Ditlow, executive director of the Center for Auto Safety, said of the hearing into Delphi's role. "We haven't seen the end of this yet."

GM recalled about 29,000 2013 and 2014 Chevrolet Cruzes on Thursday because an incorrect part in their air bags could cause the metal casing of the inflator to shatter, sending metal shards into the passenger area.

"It's unfortunate timing for GM," said Jeremy Acevedo, an analyst at the automotive website Edmunds.com. "In the scheme of things, this (defect) is minor, but it does have the capacity to get shoppers' attention, which is never good for an automaker."

Robert C. Hilliard, a Corpus Christi, Texas, attorney who represents the families of 80 people who were killed and 300 people who were "catastrophically injured" allegedly as a result of the ignition switch defect that led to the earlier recall, said it's "almost reassuring" that GM has continued to recall vehicles as problems arise. But he said there is a danger that consumers may stop paying attention.

"Psychologically, it's like battle fatigue," Hilliard said. "You stop appreciating that the guy in the foxhole next to you just got his head blown off because you've seen it so many times before."

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FDA OKs robotic leg braces

A set of robotic leg braces that lets paraplegics walk again has been approved for use in patients' homes by the FDA, a move that patients and doctors say will help them improve their quality of life.

The Food and Drug Administration this week approved ReWalk Robotics' exoskeleton, which fits around the legs and part of the upper body of people paralyzed from the waist down and lets them stand, walk and do many things doctors have long said they never would.

"This is the best news," said retired Sgt. Terry Hannigan, a Vietnam veteran. "It took everything I had not to cry."

Hannigan has used the ReWalk in a clinic, but up until now had not been able to buy one herself. Getting the $69,500 needed to buy one shot to the top of her list overnight, she said. When word began to spread that ReWalk was approved for home use, Hannigan got dozens of calls and messages from friends and family.

"It gives me the choice of being able to get my independence back," she said. "Now I don't need somebody to open up a cabinet up high."

The battery-powered system uses motion sensors and a computer to figure out when the user is moving. The computer and power supply are in a backpack worn by the user and it is controlled by a wireless remote worn on the wrist. Crutches are used for stability.

The device was designed by Amit Goffer, founder of Israel-based Argo Medical Technologies, which has its U.S. headquarters in Marlboro. Goffer was paralyzed in a 1997 car crash. The company has offered a clinical version of the exoskeleton for years, but with the FDA clearance it can now be bought by individuals and used unsupervised.

"This is for a guy who wants to walk with his family, or walk around the office and not be in a wheelchair," said Larry Jasinski, CEO of Argo Medical Technologies. "In a wheelchair, you lose human contact."

Dan Meninger, program manager for spinal cord injuries at Spaulding Rehabilitation, said exoskeletons like ReWalk provide medical benefits such as reducing the risk of infection and being able to get exercise beyond the mental boost patients get.

"There are certainly numerous benefits from a medical perspective," he said.

ReWalk is not the only company developing this kind of technology, but its exoskeleton is the first to be FDA approved for home use.

The exoskeleton is not covered by insurance right now, but Jasinski said that barrier is "the next stage."

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Car Smart: New Golf’s got drive

If you are looking for a 
fuel-sipping car that handles like a race car, go Golfing, that is, take the 2015 Volkswagen Golf TDI S for a drive.

With barely enough room for golf clubs in the rear hatch, the model name's irony is easily forgotten thanks to its 2.0-liter turbo direct-injection engine and a rocket-like driving experience. There's enough punch out of the hole to chirp the tires on the sporty 16-inch wheels in both first and second gears.

Gone is the misconception that diesel power is an oxymoron.

Paddle shifters mounted to a flat-bottomed, tightly tuned steering wheel keep you interested in taking a spin for even the most mundane errands. Whether it is putting across town or across the region, this compact car is a joy to drive. The Golf suspension handles flawlessly on the highway, even one riddled with potholes.

There's no performance sacrifice for its 40 miles per gallon (or better) fuel economy. It should be noted that not every gas station carries diesel and you should use your extra mileage to plan out your next fuel stop.

The Golf features a very quiet cabin with excellent ergonomics. Everything is where it should be. Controls for the Bluetooth phone and stereo are on the dash and on the steering wheel. The view from the driver's seat provides the driver with very good lines of sight.

Access to the Golf's hatchback takes a while to decipher. With some exploration, you realize that the VW emblem on the hatch doubles as the latch. Like a secret passage, the hatch door opens when you push in the top to reveal a handle on its lower portion.

The TDI S has leatherette seats that are nice and easy to clean, but may get a bit hot once summer really settles in. The seats feel roomy and comfortable for such a small car.

As equipped, the TDI S has a decent sound system for its price. It simply gets the job done with eight speakers, built-in satellite radio, USB and a memory card slot. A dedicated jack for your favorite smartphone or mp3 player requires a proprietary cable and the one provided for the test vehicle didn't match the driver's device.

Missing is a sunroof and built-in GPS, which, if made available as options when it hits the market in July, would be worth considering.

With an overall length of 13 feet, 9.4 inches, parking is a breeze. There's even parking assistance indicators on the audio screen to help you keep the bumpers scratch-free.

Among the many great safety features of this vehicle is the indicator to show that you are indeed tailgating. That's a good feature given the Golf's propensity for speed.

2015 VW Golf TDI S

• MSRP: $22,815
• As Tested: $23,915
• MPG: 31 city, 
42 highway

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Aereo ‘pauses’ streaming service after Supreme Court ruling

Internet TV streaming service Aereo has paused its service following a devastating U.S. Supreme Court ruling earlier this week.

The company, which is headquartered in New York but has 80 of its roughly 125 employees in Boston, will "pause our operations temporarily as we consult with the court and map out our next steps," Aereo CEO Chet Kanojia said in a letter to customers. It was set to take effect at 11:30 today.

The company said it is not shutting down.

The Supreme Court ruled Wednesday that Aereo violated copyright law by rebroadcasting over-the-air channels on the Internet without paying retransmission fees to brodcasters as cable companies do.

Kanojia also said users would be issued refunds for their last paid month.

Before it even launched, Aereo had been sued by the broadcasters across the country, including in Boston by WCVB.

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