How Carnival can clean up PR mess

STORY HIGHLIGHTS

• David Bartlett: For Carnival, impact of 'cruise from hell' potentially devastating.


• Passenger video, media puts Carnival increasingly on the defensive, he says


• He says it must show real concern, lay out plan, go a long way to make amends


• Don't try to justify or explain, he says, but get proactive now about fixing problem

Editor's note: David Bartlett is a senior vice president of Levick, a crisis and issues management and strategic communications firm based in Washington. He is the author of "Making Your Point" (St. Martin's Press), a guide to communication strategy and tactics.

(CNN) -- As three tugboats towed the disabled Carnival cruise ship Triumph back to port in Mobile, Alabama, things went from bad to worse.

The fire that caused the ship to lose power and drift aimlessly on rough Gulf of Mexico swells was just the beginning. Raw sewage seeped into corridors and cabin ways. Food had to be rationed. There were fears of looting. Not surprisingly, passengers were furious and emotional. Some were reported to be "acting like savages."

For Carnival and the rest of the cruise line industry, the implications are potentially devastating. The deadly capsizing in January 2012 of the Costa Concordia ship off the coast of Italy still lingers in the public's mind. About a month later, the Costa Allegra liner suffered a similar engine fire, lost power, and was set adrift in pirate-infested waters in the Indian Ocean. Carnival owns Costa Cruises, and now a third high-profile crisis for Carnival in just over a year threatens to cement the perception among vacationers that cruising might not be worth the risk.

Five things we've learned about cruises

David Bartlett

In the age of social and digital media, the problems faced by cruise lines are compounded. Using mobile phones, passengers aboard the Triumph have been providing concerned family members with constant updates. Those enraged family members have immediately passed the horror stories along to the eager media. The public is getting the full play-by-play in virtual real time, leaving Carnival playing catchup from an increasingly defensive posture.

But as bad as the potential damage to Carnival's image may be, the company, as well as the rest of the cruise line industry, has an opportunity to blunt the impact, if it acts quickly and wisely.

It seems counterintuitive, but while the gruesome stories of the "cruise from hell" are still fresh, the crisis offers an opportunity for the cruise line to make a compelling statement about the industry's commitment to its passengers. (Statements from Carnival.)

Crisis management experts know that customers and the general public are more likely to judge an organization by how it handles a problem than how it got into the problem in the first place. That means Carnival has to go much further than mere reimbursements and vouchers for onward travel.

The challenge to Carnival's reputation is three-fold.

First the company must articulate real concern for passengers and clearly communicate what it is doing to make things right for customers. This will require financial sacrifices, of course. But Carnival has little choice but to pay now and win some badly needed goodwill -- or pay later in the courtroom, in the court of public opinion, and, of course, at the cash register when bookings decline.

Second, the company must clearly communicate what it is doing to fix the problem and prevent anything like it from ever happening again. How did an engine fire, serious as that might be, so quickly develop into a disaster of this magnitude?

My celebration trip on the Carnival Triumph: From joy to misery

How could it have been allowed to happen? Why was the widely reported chaos and disorder allowed to develop? Why did Carnival not have emergency response plans in place? What is the industry doing to prepare for what would seem to be a manageable situation? The public will demand answers to these basic questions before it will begin to trust again. Uncertainty breathes life into a crisis. Accurate and timely information smothers it.

Third, Carnival must aggressively and clearly deliver these messages now, and for as long as it takes to restore the public's trust.

So far, the story has been about the unthinkable conditions the passengers have been forced to endure. Carnival must move aggressively to reshape that narrative to reflect all that it is doing to rectify the situation.

After a bad cruise, can you cruise into court?

Carnival has to resist the temptation to explain, minimize, or justify what happened and position itself instead as part of the solution to the problems that caused the disaster. That is what the public will focus on and remember, but only if Carnival is able to communicate it fast and effectively.

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The opinions in this commentary are solely those of David Bartlett.

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SEC alleges Swiss insider trading on Heinz buyout

NEW YORK: US regulators Friday obtained an emergency court order to freeze a Swiss bank account they suspect was used for insider trading ahead the Berkshire Hathaway-3G Capital buyout of HJ Heinz.

The Securities and Exchange Commission said unknown traders earned $1.7 million in profits through "irregular and highly suspicious" options trades on Heinz shares booked on Wednesday, one day before the announcement that Berkshire and 3G were acquiring Heinz in a $28 billion deal.

The SEC said it believed the traders had knowledge of the takeover ahead of the announcement early Thursday morning in New York.

The trades were "a serious red flag that traders may be improperly acting on confidential non-public information," said SEC enforcement official Daniel Hawke in a statement.

The acquisition announcement sent Heinz shares up nearly 20 percent from $60.8 per share to $72.50, the takeover offer price.

The value of the specific call options traded from the Swiss account jumped 1,700 percent in the same time frame, the SEC said.

Among the red flags cited by the SEC: the Swiss account had engaged in no trading of Heinz securities since September 1, 2012.

The SEC said freezing the account would prevent any profits from being withdrawn and force the unknown traders to come forward.

"Despite the obvious logistical challenges of investigating trades involving offshore accounts, we moved swiftly to locate and freeze the assets of these suspicious traders," said Sanjay Wadhwa, senior associate director of the SEC's New York regional office in a statement.

The traders "now have to make an appearance in court to explain their trading if they want their assets unfrozen."

- AFP/fa

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Sen. Rubio drowning in 'water-gate'

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Facebook says it was hacked last month

Social media company Facebook announced Friday that it was hacked last month, which has led to an ongoing investigation.

Below is a statement issued by Facebook:

Last month, Facebook Security discovered that our systems had been targeted in a sophisticated attack. This attack occurred when a handful of employees visited a mobile developer website that was compromised. The compromised website hosted an exploit which then allowed malware to be installed on these employee laptops. The laptops were fully-patched and running up-to-date anti-virus software. As soon as we discovered the presence of the malware, we remediated all infected machines, informed law enforcement, and began a significant investigation that continues to this day. We have no evidence that Facebook user data was compromised in this attack.

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This article originally appeared on CNET.

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Carnival Cruise Ship Hit With First Lawsuit

The first lawsuit against Carnival Cruise Lines has been filed and it is expected to be the beginning of a wave of lawsuits against the ship's owners.

Cassie Terry, 25, of Brazoria County, Texas, filed a lawsuit today in Miami federal court, calling the disabled Triumph cruise ship "a floating hell."

"Plaintiff was forced to endure unbearable and horrendous odors on the filthy and disabled vessel, and wade through human feces in order to reach food lines where the wait was counted in hours, only to receive rations of spoiled food," according to the lawsuit, obtained by ABCNews.com. "Plaintiff was forced to subsist for days in a floating toilet, a floating Petri dish, a floating hell."

Click Here for Photos of the Stranded Ship at Sea

The filing also said that during the "horrifying and excruciating tow back to the United States," the ship tilted several times "causing human waste to spill out of non-functioning toilets, flood across the vessel's floors and halls, and drip down the vessel's walls."

Terry's attorney Brent Allison told ABCNews.com that Terry knew she wanted to sue before she even got off the boat. When she was able to reach her husband, she told her husband and he contacted the attorneys.

Allison said Terry is thankful to be home with her husband, but is not feeling well and is going to a doctor.

Carnival's Triumph Passengers: 'We Were Homeless' Watch Video

Girl Disembarks Cruise Ship, Kisses the Ground Watch Video

Carnival Cruise Ship Passengers Line Up for Food Watch Video

"She's nauseated and actually has a fever," Allison said.

Terry is suing for breach of maritime contract, negligence, negligent misrepresentation and fraud as a result of the "unseaworthy, unsafe, unsanitary, and generally despicable conditions" on the crippled cruise ship.

"Plaintiff feared for her life and safety, under constant threat of contracting serious illness by the raw sewage filling the vessel, and suffering actual or some bodily injury," the lawsuit says.

Despite having their feet back on solid ground and making their way home, many passengers from the cruise ship are still fuming over their five days of squalor on the stricken ship and the cruise ship company is likely to be hit with a wave of lawsuits.

"I think people are going to file suits and rightly so," maritime trial attorney John Hickey told ABCNews.com. "I think, frankly, that the conduct of Carnival has been outrageous from the get-go."

Hickey, a Miami-based attorney, said his firm has already received "quite a few" inquiries from passengers who just got off the ship early this morning.

"What you have here is a) negligence on the part of Carnival and b) you have them, the passengers, being exposed to the risk of actual physical injury," Hickey said.

The attorney said that whether passengers can recover monetary compensation will depend on maritime law and the 15-pages of legal "gobbledygook," as Hickey described it, that passengers signed before boarding, but "nobody really agrees to."

One of the ticket conditions is that class action lawsuits are not allowed, but Hickey said there is a possibility that could be voided when all the conditions of the situation are taken into account.

One of the passengers already thinking about legal action is Tammy Hilley, a mother of two, who was on a girl's getaway with her two friends when a fire in the ship's engine room disabled the vessel's propulsion system and knocked out most of its power.

"I think that's a direction that our families will talk about, consider and see what's right for us," Hilley told "Good Morning America" when asked if she would be seeking legal action.

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How safe are nanoparticles in food?

STORY HIGHLIGHTS

• Andy Behar: Some foods contain tiny, engineered particles called nanomaterials


• Behar: Nanoparticles might pose health risks, since they have adversely affected mice


• He says not enough studies have adequately demonstrated the safety of nanoparticles


• Behar: With an emerging technology such as this, companies have to be careful

Editor's note: Andy Behar is the chief executive of As You Sow, a nonprofit organization that promotes corporate accountability.

(CNN) -- Some foods sold in supermarkets across America contain tiny, engineered particles called nanomaterials. Our organization decided to test doughnuts after learning that the titanium dioxide used as a coloring in the powdered sugar coating likely contained nano-sized particles.

The tests, conducted by an independent laboratory, found that both Dunkin' Donuts Powdered Cake Donuts and Hostess Donettes did indeed contain titanium dioxide nanoparticles. In response, a spokeswoman for Dunkin Donuts said the company was looking into the matter.

You must be wondering: What are nanomaterials? They are microscopic in size. "If a nanoparticle were the size of a football, a red blood cell would be the size of the field." Nanoparticles have been heralded as having the potential to revolutionize the food industry -- from enabling the production of creamy liquids that contain no fat, to enhancing flavors, improving supplement delivery, providing brighter colors, keeping food fresh longer, or indicating when it spoils.

Andy Behar

But there are a few problems.

One is that no one knows how many and which food products have them. Companies are not being forthcoming about whether they are using nanoparticles. To further complicate the issue, some companies may not even be aware that they are selling products containing them.

Many companies are reluctant or uninterested in discussing the issue, and concrete information has been difficult to obtain. The majority of food companies are not responsive in providing information about their specific uses, plans and policies toward nanoparticles. There is also no law in the United States that requires disclosure. In contrast, companies in the European Union are required to label foods containing nanoparticles.

The bigger issue with nanoparticles is that they might pose health risks, as they have been found to in tests on mice.

There are not nearly enough studies that can adequately demonstrate the safety of nanoparticles in food additives or packaging. Scientists are still investigating how the broad range of nanoparticles, with their myriad potential uses, would react in the body.

When ingested, nano-sized particles can pass into the blood and lymph, where they circulate through the body and reach in potentially sensitive sites such as bone marrow, lymph nodes, the spleen, the brain, the liver and the heart.

Our knowledge about how nanomaterial food additives react in the body and their health impact is still in its infancy. While efforts are under way to understand them better, much deeper scientific inquiry should occur before nanoparticles are sold in food and food-related products.

More companies and consumers need to be aware of the use of engineered nanomaterials in foods and the potential unknown risks of this technology. More food products like M&M's and Pop-Tarts should be tested as recent studies have identified them as likely to contain nanomaterials as well.

Fortunately, a few companies have become willing to take a public position on nanoparticles.

McDonald stated that it "does not currently support the use by suppliers of nano-engineered materials in the production of any of our food, packaging, and toys." Similarly, Kraft Foods said that it was not using nanotechnology.

Some of the largest food companies in the world, including YUM! Brands, PepsiCo, and Whole Foods, need to know more about nanomaterials and check with their supplies to see if they are using them.

Americans are becoming increasingly interested in what is in the food they're eating. No longer content with label information on daily allowances of vitamins and minerals, U.S. consumers are following the lead of their counterparts in many other countries by demanding more disclosure about where and how their food is grown and whether it is safe.

Even though communicating risks to consumers can be challenging, the public's perception of safety will be paramount in determining the acceptance of nanomaterials. This is especially true for an emerging food-products technology the safety of which even the FDA has acknowledged a lack of understanding.

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The opinions expressed in this commentary are solely those of Andy Behar.

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Obama says public deserves to know more on drones

WASHINGTON: President Barack Obama said Thursday that Americans needed more than just his word to be assured he was not misusing his powers in waging a secret drone war overseas.

The president was asked about the debate over the deadly tactic, a backbone of the US campaign against Al-Qaeda, and whether the Constitution allows the use of drones against Americans who have turned against their country.

"It is not sufficient for citizens to just take my word for it that we are doing the right thing," Obama told an online forum sponsored by Google.

The president, who has said he is working with Congress to provide more oversight of the clandestine drone war against Al-Qaeda, was also asked what was to stop the US government from using unmanned aerial vehicles at home.

"There has never been a drone used on an American citizen on American soil," Obama said in the Google Plus "Fireside Hangout."

"The rules outside the United States are going to be different than the rules inside of the United States in part because our capacity, for example, to capture terrorists in the United States is going to be very different than in the foothills or mountains of Afghanistan or Pakistan.

Debate about the use of drones has slowly been mounting following the September 2011 killing in Yemen of cleric Anwar al-Awlaki, a senior Al-Qaeda operative who was an American citizen.

The president said that he was working with Congress to ensure that the public was also able to understand the constraints and legal rationales of the US drone war.

"I am not somebody who believes that the president has the authority to do whatever he wants, or whatever she wants, whenever they want, just under the guise of counter terrorism," he added.

"There have to be checks and balances on it."

Some observers, including prominent senators, are considering whether a special court should monitor the secret drone war.

Missiles fired from unmanned aircraft have become the Obama administration's weapons of choice in its war against Al-Qaeda.

The administration's legal rationale for the targeted killings was leaked to the media ahead of Senate hearings last week on the nomination of Obama's top counterterrorism adviser John Brennan to head the CIA.

The guidelines allow the use of drone strikes against US citizens suspected of being senior Al-Qaeda operatives, even if there is no evidence they are actively plotting an attack.

Some administration critics have questioned the legality of drone strikes against US citizens, while others fear that raining death from the skies may do more harm than good in increasing anti-US sentiment.

- AFP/jc

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Mom of boy held in bunker is worried

STORY HIGHLIGHTS

• Phil McGraw speaks with mother of former Alabama child hostage


• She tells him she worried about trying to put him back on a school bus


• Ethan told her the Army killed the 'bad man'


• The 6-year-old tells his mom that 'My bus driver is dead'

(CNN) -- Jennifer Kirkland says she caught her 6-year-old son Ethan just staring at a school bus the other day.

He was mesmerized, his eyes locked on the yellow vehicle. He didn't say a thing, and she didn't know what to say to him.

The last time he was on a bus, he was sitting just behind the driver -- as he always did -- waiting for his stop so he could go home.

But the "bad man" got on, and killed the driver, his buddy Mr. Poland.

Appearing on the "Dr. Phil" show, Kirkland told Phil McGraw she was worried how her little boy was going to react the next time she tried to put him on the bus to school.

After being kidnapped, the recovery ahead

Photos: Alabama bunker standoff

HIDE CAPTION

Ethan has been having a hard time sleeping, she told the psychologist turned syndicated daytime talk show host.

He thrashes his arms, tosses and turns and sometimes he calls out.

It has only been almost 10 days since the FBI sent a rescue team into the bunker in Midland City, Alabama, where Ethan was held hostage for nearly a week by Jimmy Lee Dykes.

His mother hasn't asked Ethan what happened when he was there.

"I have not talked to Ethan about it," she said in an interview aired Wednesday. "I don't know how to. As a mother I want him to know that I'm there if he needs to talk. I don't know how to respond because I have never been through this."

Inside the bunker: From storm shelter to boy's prison

Ethan has seen two people shot to death. Dykes shot bus driver Charles Poland several times before he carried Ethan, who had fainted, off the bus and into an underground bunker Dykes had built on his property.

Then the FBI killed Dykes when negotiations broke down and authorities felt they had to rescue the boy before Dykes, who had a handgun, did something rash.

"The Army came in and shot the bad man," Kirkland said Ethan told her.

Kirkland said she had hoped Dykes wouldn't be harmed.

"From the very beginning, I had already forgiven Mr. Dykes even though he had my child," she said. "I could not be angry through this. My job was to be the mother."

She thinks Dykes had a soft spot for Ethan because he has disabilities. Dykes took care of her boy as best he could, she said.

He even fried chicken for the boy.

Still, as the crisis continued, she worried that Dykes might be spooked by something her child did -- or that he had enough supplies to stay down there for months. She worried her boy would think she had abandoned him.

She asked authorities to let her speak to Dykes.

"That's my baby. He's my world. He's my everything," she said. "Everything I do I do for him. And I was afraid I wasn't going to get him back."

When she did get him back, he was in the hospital, putting stickers on everyone in sight.

"Hey, bug, I sure have missed you," she recounted.

"I missed you, too," he answered.

FBI: Bombs found in Alabama kidnapper's bunker

Now she worries that even though he seems like the same playful little boy, there is an emotional storm ahead.

McGraw told her to talk to Ethan about his feelings, not what happened to him in the bunker.

"Let that decay in his young mind," he said.

McGraw asked Ethan a few questions, but as 6-year-olds are apt to do, he answered most with a "Yes" or a "No."

But when the doctor asked him how he got to school, Ethan said, "On my bus, but my ..."

Then he walked over to his mother and as if telling a secret, whispered in her ear, "But my bus driver is dead."

Kirkland told McGraw that it was Poland who helped Ethan conquer his fear of descending the steep school bus steps. Poland would cheer Ethan on and one day when the child hesitated and the mother went to help, the driver said, "Let him do it."

Since then, Ethan has had no problem.

But now his cheerleader won't be there, and Kirkland is anguished about her boy.

"Mr. Poland put him behind him so he could keep a good eye on him," she said.

Ethan hasn't been back to school yet. He's been busy opening birthday presents and playing with his favorite toys. On Wednesday, he made a new friend in Gov. Robert Bentley.

There's a picture from the event where little Ethan is sitting underneath the governor's desk. The child is beaming.

"Ethan is a loving, forgiving child," Kirkland said. "He is easy to go up to a perfect stranger and say, 'Can I have a hug?'"

That was the boy who went into that bunker. She is concerned it's not the child who came out.

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Body in burned cabin ID'd as Christopher Dorner

(CBS News) BIG BEAR LAKE, Calif. - Remains of a man who was in a burned California cabin on Tuesday have been positively identified as belonging to that of Christopher Dorner, the former LAPD officer who was suspected of killing four people and was the subject of an intense manhunt, officials confirmed.

The San Bernardino County Coroner's office said the positive identification was made through dental records.

The final hours of the manhunt for Christopher Dorner began when Jim and Karen Reynolds opened the door of one of their rental condos.

Police fill in the blanks on Dorner's last day
Carjacking victim: Christopher Dorner told me "I don't want to hurt you"
Deputy slain in ex-cop shootout was new father

"We had come into the living room and he opened the door and came out at us," said Karen.

"He had the gun drawn," added Jim.

A man believed to be Dorner tied them up.

"He talked to us, trying to calm us down," said Karen, "and saying very frequently he would not kill us."

He then took their car. "We listened for probably a minute or two, wanted to make sure he was gone," said Jim, "sounded quiet. And then we started struggling trying to get loose."

They called 911, triggering a chain of events that ended with Tuesday's shootout in which two sheriffs deputies were shot. Thirty-five-year-old Jeremiah MacKay died from his wounds.

The firefight that we witnessed was intense and we were forced to take cover - however, we left his cell phone on. Early in the standoff you could hear officers suggesting burning the suspect out.

One officer can be heard saying, "Burn that ------ out , burn it down, ------ burn this mother-----"

Four more hours would pass before police used high-powered tear gas. The canisters are known to be a fire hazard.

"We did not intentionally burn down that cabin to get Mr. Dorner out," San Bernandino Sheriff John McMahon had said.

Dorner's body was found in the ashes. It's unclear if the cause of death was from the fire -- or a single shot we heard moments after the cabin ignited.

Meanwhile, investigators looking through a trash bin in Irvine, California, where the first two victims were killed, recovered Dorner's badge, a police uniform, and a high-capacity ammo magazine.

CBS News asked San Bernardino County Sheriff's Department about the audio we recorded, and they declined to comment.

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Dorner Confirmed Dead in Autopsy on Cabin Remains

Christopher Dorner, the ex-Los Angeles police officer who declared himself on a killing spree against his former law enforcement colleagues, is dead.

Authorities this evening confirmed that remains found after a fiery standoff at a California mountain cabin Tuesday were, in fact, Dorner's.

"The charred human remains located in the burned out cabin in Seven Oaks have been positively identified to be that of Christopher Dorner," the San Bernardino County Sheriff-Coroner's Office said in a written statement. "During the autopsy, positive identification was made through dental examination."

FULL COVERAGE: Christopher Dorner Manhunt

PHOTOS: Former LAPD Officer Suspected in Shootings

In a 6,000-word "manifesto," Dorner outlined his anger at the Los Angeles Police Department for firing him, and made threats against individuals he believed were responsible for ending his career with the police force five years ago. Dorner was fired after filing what the LAPD determined to be a false report accusing other cops of brutality.

Dorner is suspected of killing four people, including Monica Quan and her fiance, who were found shot to death Feb. 3. Quan was the daughter of former LAPD Capt. Randal Quan, who was mentioned as a target of Dorner's fury in the manifesto.

Christopher Dorner Hostages: 'He Just Wanted to Clear His Name' Watch Video

Christopher Dorner Believed Dead After Shootout With Police Watch Video

Christopher Dorner Believed Dead After Shootout with Police Watch Video

Dorner is also suspected in the shooting death of Riverside, Calif., Police Officer Michael Crain, whose funeral was Wednesday.

San Bernardino Sheriff's Deputy Jeremiah MacKay, 35, a 15-year veteran and the father of two children, was killed in Tuesday's shootout at the cabin.

A second San Bernardino County sheriff's officer had to undergo multiple surgeries after he was wounded in the cabin shootout, and other officers also were wounded in earlier alleged encounters with Dorner.

After Crain's death, police tracked Dorner to the Big Bear Lake area of Southern California, where his burning truck was found in the mountains late last week.

A couple with a cabin in the area were some of the last people to see Dorner before his final encounter with police. Their 911 call to police triggered a chase that concluded with the fiery standoff at the nearby cabin.

The couple, Karen and Jim Reynolds, said at a news conference Wednesday that their ordeal lasted a few minutes but seemed like hours.

The Reynolds believe Dorner, 33, was holed up starting Friday in their unoccupied cabin in Big Bear, Calif., only steps from where police had set up a command center.

"He said four or five times that he didn't have a problem with us, he just wanted to clear his name," Jim Reynolds said. "He said, 'I don't have a problem with you, so I'm not going to hurt you.'"

Dorner tied their arms and put pillowcases over their heads before fleeing in their purple Nissan, the couple said.

Before he fled, the couple said Dorner told them that he had been watching them before he took over their cabin. Dorner told the couple he could tell they were "hard working, good people."

"He had been watching us and saw me shoveling the snow Friday," Jim Reynolds said.

They say they may have left the cabin door unlocked and that could have been the reason Dorner was able to enter undetected.

Dorner remained "calm and meticulous" throughout the harrowing ordeal, the couple said.

The Reynolds walked into their cabin around noon Tuesday when they came face-to-face with Dorner. There was no question in their minds who he was -- the suspected cop killer at the center of one of the largest manhunts in recent memory.

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