Former Tyco lawyer acquitted on all counts

Tyco International Ltd.’s former top lawyer, Mark A. Belnick, was acquitted Thursday of grand larceny, securities fraud and falsifying business records.

A New York Supreme Court jury returned the verdict in its fifth day of deliberations, while prosecution and defense lawyers had been discussing a possible plea deal.

Belnick, accused of stealing millions by accepting an illegal bonus and abusing loan programs, had faced up to 25 years in prison if convicted of grand larceny.

The grand larceny charge stemmed from Belnick’s receipt of cash and stock worth up to $17 million as a bonus awarded by former chief executive L. Dennis Kozlowski. Kozlowski will be on trial in January.

Above, Belnick kisses his wife, Randy, after the verdicts were read.

Economy

Price report suggests inflation under control

Wholesale prices took a slide in June, suggesting the economy hit a rough patch and the Federal Reserve can stick with its gradual approach to raising interest rates.

The 0.3 percent drop in the Labor Department’s Producer Price Index — the biggest decline in 13 months — largely stemmed from a retreat in food and energy costs. These costs, which had been surging, had helped to push up wholesale prices by 0.8 percent in May. But June’s decrease also reflected sluggish demand, which made some companies more restrained in their pricing.

Aviation

Southwest CEO resigns

The chief executive of Southwest Airlines stepped down Thursday, hours after the low-cost carrier reported a 54 percent decline in profit and fell short of Wall Street’s expectations.

James F. Parker, 57, spent three years in the job and said he was retiring to spend more time with family.

Chief financial officer Gary Kelly, 49, was immediately promoted to CEO.