Police said a major operation was under way in the area of Welfen-Gymnasium secondary school in Schongau, Bavaria.
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Millions of phone calls from customers were "likely mishandled" over nearly a three-year period, the regulator says.
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Stefan Johnson jumped in to pull the boy out of the water before two nurses came to help.
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It is believed to be one of the largest payouts involving a Troubles case.
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Rescuers pull bodies from the mud after heavy monsoon rains batter the south-eastern coast.
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