6at4 Business Report: Kodak, Honda, Denny's and more!

January 4, 2012 2:01:34 PM PST
Honda faces a mileage lawsuit, prices are going up at Denny's and Cracker Barrel, and Kodak may be prepping for bankruptcy!

Honda Mileage Lawsuit
A California judge's decision could potentially open the floodgates of lawsuits against carmakers promising better gas mileage. Heather Peters took Honda to small claims court. She claims that her 2006 Honda Civic hybrid doesn't get the miles per gallon promised on the sticker. Peters said it went from getting 50 mpg, to 30 mpg, and now it's in the 20s.

"If you use these numbers, and try to attain these numbers, it is going to be difficult unless you are driving just like the EPA tells you," Peters said.

"This is about people versus Honda. It's about people versus big corporations."

Honda says the sticker shows that mileage can vary.

Peters is a former lawyer, and is seeking $10,000 in her small claims suit. The judge has not yet made a decision in the case.

Philadelphia Unemployment Improves
Philadelphia's unemployment rate inching ever so slowly in a sign that things are slowly but surely looking up for the economy. In November the city's unemployment rate was 8.1% compared with 8.7% the same time last year. Compared to some cities, that rate is a great improvement. Several California cities had unemployment rates ranging from 14% to 27%.

Kodak nearing bankruptcy?
An iconic American brand may be headed for bankruptcy. Kodak stock tumbled 88% last year as the company has been struggling to sell its patents to raise money. Today the Wall Street Journal is reporting the company may file for bankruptcy this month or early February if it can't sell digital patents. Kodak stock is trading is at 47 ¢ and may be delisted from the New York Stock Exchange if the stock price can't rise above $1 a share in six months

Prices going up at Denny's and Cracker Barrel
Don't be surprised if your Grand Slam breakfast or Sunrise Sampler costs a little more. Denny's says it's raising prices this year between 3% to 5%. This is to make up for higher commodity costs. Cracker Barrel is also planning higher prices. Execs told Bloomberg last fall that they expect costs of staples like seafood, beef and eggs to climb as high as 6.5%.

Homeowners insurance rates going up?
Natural disasters in the U.S. and around the world will likely mean higher costs for homeowners. For the fourth straight year, insurance companies have reported losses. Experts say that means premiums could rise by up to 5%. That could cost homeowners an extra $30 a year.


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