Business briefs

Citigroup Inc., the nation's largest financial services company, said it will pay $2 billion to settle a class-action lawsuit over its role in helping Enron orchestrate a massive accounting fraud that led to the company's collapse in 2001.

Attorneys in the case hope for similar settlements with eight other banks and brokerages as well as several former Enron executives.

"We can't predict the future, we don't want to try and predict the future, but this development is obviously very favorable for our side of the case," said Attorney William Lerach, who helped engineer the settlement with Citigroup.

Nissan to recall Sentras

WASHINGTON - Nissan North America Inc. is recalling 49,200 Sentra sedans because of concerns over possible fuel leakage, officials said Friday.

The recall affects Sentras from the 2005 model year.

Company officials told the National Highway Traffic Safety Administration that in some vehicles a vapor hose in the fuel tank may not have been properly manufactured.

When the vehicle is parked with a full gas tank, fuel could flow into the vapor hose, which is connected to a vapor canister. The government said the vapor canister could become full, and excess fuel could spill out onto the ground, potentially starting a fire.

Nissan said 43,000 of the vehicles were sold in the United States and the remainder are in Canada, Guam and Puerto Rico. There have been no injuries or fires reported, Nissan spokesman Kyle Bazemore said.

Nissan will begin notifying customers about the recall in August. Dealers will inspect the fuel tank and, if necessary, replace it at no charge.

Chevron set to buy Unocal

WASHINGTON - The Federal Trade Commission on Friday cleared the way for Chevron Corp. to acquire Unocal Corp. for $18 billion, voting 4-0 to settle a two-year-old complaint against Unocal alleging anticompetitive practices that threatened to drive up gasoline prices.

The settlement resolves a legal fight between Unocal and the FTC over the El Segundo, Calif.-based oil company's rights to a patent for reformulated gasoline.

San Ramon, Calif.-based Chevron ended the battle by agreeing not to enforce the patents after it buys Unocal later this year. Given that concession by Chevron, the FTC decided the proposed combination won't harm consumers.

Costco to sell health insurance in SoCal

LOS ANGELES - Tires, toilet paper, health insurance?

Costco's move to sell health plans through its membership stores probably won't have much impact on the nation's estimated 45 million uninsured.

But if other big-box discounters jump in, it could do to brokers what Wal-Mart did to mom-and-pop grocery stores, analysts said Friday. Costco's business model of offering steep discounts while providing a limited number of products could translate into fierce competition for health insurance brokers.

Beginning sometime next month, Costco will begin a pilot program to offer individual health insurance policies to members who pay $100 a year for the store chain's "executive" membership. The program will be confined to the 34 stores in Los Angeles and Orange counties, although it could expand statewide by the end of the year, said Dellanie Fragnoli, assistant vice president for insurance services at Costco's headquarters in Issaquah, Wash.