/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/010622.mbx C L A S S A C T I O N R E P O R T E R Friday, June 22 2001, Vol. 3, No. 122 Headlines ADVANTA LEASING: Bar Owners In Pennsylvania Sue ATM Leasing Companies AETHER SYSTEMS: Weiss Yourman Commences Securities Suit In S.D. NY CAPSTEAD MORTGAGE: Parties Trade Motions, But Court Still Undecided CAR PAINT LITIGATION: Auto Body Shop Files California Antitrust Suit DELTATHREE INC.: Bernstein Liebhard Files Securities Suit In S.D. NY DIGITAL IMPACT: Cauley Geller Files Securities Suit In S.D. New York DOLLAR GENERAL: Finklestein Thompson Commences Shareholders Lawsuit ECI TELECOM: Milberg Weiss Commences Securities Suit In E.D. Virginia FEDERATED DEPARTMENT: Continues To Dispute Allegations In NY Suit FIDELITY GROUP:South Carolina Residents Sue Over Unpaid Medical Bills FISHER-PRICE: Settles Defective Power Wheels Suit, Offers Free Repair GART SPORTS: Receives Third Complaints Over Wage And Hour Violations INFOSPACE INC.:Hagens Berman Files Securities Suit In W.D. Washington LONGS DRUG: Jury Awards $300T To Ex-employees For Emotional Distress MEN'S WEARHOUSE: Misleading Slack Advertisement Results In CA Suit NAVISITE INC.: Schiffrin Barroway Files Securities Suit In S.D. NY NET2000 COMMUNICATIONS: Milberg Weiss Files Securities Suit In NY NETWORK COMMERCE: Cohen Milstein Files Securities Suit In W.D. WA PURCHASEPRO.COM: Kirby McInerney Sues Over Artificially Inflated Stock RAYTHEON CORPORATION: Hagens Berman Files Securities Lawsuit In Idaho RAZORFISH INC.: Bernstein Liebhard Files Securities Suit In S.D. NY SILVERSTREAM SOFTWARE: Lovell And Sirota Firms File Suit In S.D. NY STAMPS.COM: Wolf Popper Commences Securities Suit In S.D. New York STAPLES INC.: Faces Consolidated Suit Over Reclassification Of Stocks TOBACCO LITIGATION: Govt's Opinion Of RICO Suit No Surprise To Lawyers VERTICALNET INC.: Schiffrin Barroway Files New York Securities Suit * Class Action Model, Environmental Court Would Aid Thai Legal System ********* ADVANTA LEASING: Bar Owners In Pennsylvania Sue ATM Leasing Companies ----------------------------------------------------------------- ---- Two bar owners in Pennsylvania recently filed a class action complaint against leasing companies that financed automatic-teller machines through distributor Credit Card Center of Philadelphia before it filed for bankruptcy protection June 6, Tribune Business News reported Wednesday. According to the suit, filed in Franklin County Common Pleas Court, the $250 check issued a month ago by Credit Card Center, intended as rebates, bounced. Because Credit Card Center was an agent for the leasing companies named in the suit, they must pay what the company reneged on, said Chambersburg lawyer David C. Cleaver, who filed the case with Harrisburg lawyer David A. Fitzsimons. The suit was brought by Dilly's, of Chambersburg, and the Stardust Lounge in nearby Waynesboro, against the following: (i) Advanta Leasing Corp., a unit of Advanta Corp., which is based in Spring House; (ii) Information Leasing Corp., of Cincinnati; (iii) QL Capital Inc., of Concord, Calif.; (iv) United Star Leasing, of Syracuse, N.Y.; (v) Progress Leasing, an affiliate of Progress Bank, which is based in Blue Bell; (vi) Frontier Leasing, of Urbandale, Iowa; and (vii) Newcourt Financial USA, of Chicago. The 700-member Pennsylvania Tavern Owners Association encouraged the suit. "We want to get our members out of the leases because they're being gouged," Richard Alloway, the group's executive director, said. AETHER SYSTEMS: Weiss Yourman Commences Securities Suit In S.D. NY ----------------------------------------------------------------- - Weiss & Yourman filed a class action lawsuit against Aether Systems, Inc. (NASDAQ:AETH), its senior executives, and underwriters in the United States District Court, Southern District of New York, on behalf of investors who purchased Aether securities between October 21, 1999 and June 15, 2001. The action, number 01 CV 5570, is pending against defendants Aether Systems, Inc., David S. Oros, David C. Reymann, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BancBoston Robertson Stephens Inc., Donaldson, Lufkin & Jenrette Securities Corporation, U.S. Bancorp Piper Jaffray Inc., Deutsche Bank Securities Inc. and Friedman, Billing, Ramsey & Co., Inc. Honorable Shirley Wohl Kram is the Judge presiding over the case. The complaint charges defendants with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. It alleges that the October 21, 1999 and September 27, 2000 Prospectuses of shares of Aether common stock contained material misrepresentations and/or omissions. The complaint also alleges that defendants were responsible for the materially false and misleading statements and that the underwriters of Aether's Offerings engaged in a pattern of conduct to surreptitiously extract inflated commissions greater than those disclosed in the Offerings materials. For more information, contact: Mark D. Smilow, James E. Tullman, and/or David C. Katz by Phone: (888) 593-4771 or (212) 682-3025 by E-mail: wynyc@aol.com or by writing Weiss & Yourman, The French Building, 551 Fifth Avenue, Suite 1600, New York, New York 10176. CAPSTEAD MORTGAGE: Parties Trade Motions, But Court Still Undecided ----------------------------------------------------------------- -- Court action abruptly intensified from February to May this year as both parties in the securities suit against Capstead Mortgage Corporation traded motions and replies. The Company triggered the action when it responded to the amended complaint filed in October last year. This move drew an opposition from the plaintiffs in April, which was quickly responded to by the defendant last May. "We believe that we have meritorious defenses to the claims and we intend to vigorously defend against the actions," the Company said in a regulatory document it filed recently with the Securities and Exchange Commission. This case traces back to 1998, when 24 purported class action lawsuits were filed against the Company and certain of its officers alleging, among other things, violations of federal securities laws by publicly issuing false and misleading statements and omitting disclosure of material adverse information regarding its business during various periods between January 28, 1997 and July 24, 1998. The complaints claim that as a result of such alleged improper actions, the market price of the Company's equity securities were artificially inflated during that time period. In March 1999 these actions were consolidated and in July 2000 the court appointed a lead plaintiff for the group. "We believe the resolution of these suits will not have a material adverse effect on our financial position," the Company said recently. CAR PAINT LITIGATION: Auto Body Shop Files California Antitrust Suit ----------------------------------------------------------------- --- An auto body shop in California has filed a suit in federal court claiming some of the world's largest car paint makers have engaged in price fixing, the Associated Press reported Wednesday. The lawsuit alleged that repair shops have been paying artificially inflated prices for refinishing products because of the anticompetitive scheme engaged in by the paint makers. The suit seeks money damages and an injunction barring collusion. It also seeks class-action status to include other auto body shops, the report said. The Autobody by Caldwell, Inc. is the lone plaintiff at this time in the lawsuit, filed Tuesday in federal court in Newark. The Associated Press said a federal investigation of the industry is also underway. The antitrust division of the Justice Department is looking at the possibility of anticompetitive practices in the automotive refinishing industry, department spokeswoman Gina Talamona said. Accused in the lawsuit are the following paint makers: (i) PPG Industries Inc. of Pittsburgh; (ii) Sherwin-Williams Co. of Cleveland; (iii) DuPont, of Wilmington, Del.; (iv) BASF AG of Germany, which has its U.S. subsidiary in Mount Olive, N.J.; and (v) Akzo Nobel NV of the Netherlands, which has U.S. bases in Chicago and Norcross, Ga. The above paint makers deny any wrongdoing. DELTATHREE INC.: Bernstein Liebhard Files Securities Suit In S.D. NY ----------------------------------------------------------------- --- Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf of all persons who acquired deltathree, Inc. (NASDAQ: DDDC) securities between November 22, 1999 and June 12, 2001. The case is pending in the United States District Court for the Southern District of New York. Named as defendants in the complaint are deltathree and the following executive officers of deltathree: Amos Sela, Mark J. Hirschhorn, Elie C. Wurtman, Jacob A. Davidson, Itzhak Fisher, Nir Tarlovsky, Donald R. Shassian, Jacob Z. Schuster, and Avery S. Fischer. The complaint also names as defendants Lehman Brothers, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bancorp Piper Jaffray Inc., Lazard Freres & Co., LLC, and Fidelity Capital Markets, a Division of National Financial Services Corporation, co-lead underwriters of the Company's initial public offering of 6,000,000 shares of common stock at $15.00 per share on November 22, 1999. The complaint charges defendants with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, for issuing a Registration Statement and Prospectus that contained material misrepresentations and/or omissions. The Prospectus was issued in connection with the deltathree IPO. For more details, contact: Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-1414 or by E-mail: DDDC@bernlieb.com. DIGITAL IMPACT: Cauley Geller Files Securities Suit In S.D. New York ----------------------------------------------------------------- --- Cauley Geller Bowman & Coates, LLP filed Tuesday a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Digital Impact, Inc. (Nasdaq: DIGI) common stock during the period between November 22, 1999 and December 6, 2000, inclusive. The suit charges Digital and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. For additional information, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by E-mail: info@classlawyer.com or visit the Firm's Website: www.classlawyer.com DOLLAR GENERAL: Finklestein Thompson Commences Shareholders Lawsuit ----------------------------------------------------------------- -- Finkelstein, Thompson & Loughran filed a securities class action lawsuit recently against Dollar General Corporation (NYSE: DG). The complaint is on behalf of shareholders who purchased the stock between May 12, 1998 and April 27, 2001. The complaint alleges that the Company issued false and misleading financial statements and news releases about its earnings. Specifically, on April 30, 2001, the Company admitted that it would delay filing its annual report for fiscal 2000, that it had begun investigating "accounting irregularities" and that its audit committee was reviewing allegations of fraudulent behavior. In addition, the company disclosed that it would need to restate its results for fiscal years 1998, 1999 and for the first three quarters of 2000. For additional information, contact: Donald J. Enright with Finkelstein, Thompson & Loughran by Phone: 888-333-4409 or 202-337- 8000, by E-mail: dje@ftllaw.com or visit the firm's Website: http://www.ftllaw.com ECI TELECOM: Milberg Weiss Commences Securities Suit In E.D. Virginia ----------------------------------------------------------------- ---- Milberg Weiss Bershad Hynes & Lerach LLP filed late last week a class action lawsuit on behalf of purchasers of the securities of ECI Telecom, Ltd. (NASDAQ: ECIL) between May 2, 2000 and February 14, 2001, inclusive. The action is pending in the United States District Court, Eastern District of Virginia, Alexandria Division, located at 401 Courthouse Square, Alexandria, Virginia, 22314, against defendants ECI Telecom, Doron Inbar, Avi Ben-Assayag and Jonathan B. Kolber. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 2, 2000 and February 14, 2001, thereby artificially inflating the price of ECI securities. For further details, contact: Milberg Weiss Bershad Hynes & Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: ecitelecomcase@milbergNY.com or visit the firm's Website: http://www.milberg.com FEDERATED DEPARTMENT: Continues To Dispute Allegations In NY Suit ----------------------------------------------------------------- Federated Department Stores, Inc. recently said it is still continuing to defend the securities suits filed last year in New York by its stockholders. According to the Company, certain members of its senior management were named defendants in the five substantially identical purported class action complaints filed on behalf of persons who purchased shares of the Company between February 23, 2000 and July 20, 2000. The Complaints were filed on August 24, August 30, September 15, September 26 and October 6, 2000, in the United States District Court for the Southern District of New York. The Complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, on the basis that the Company, among other things, made false and misleading statements regarding its financial condition and results of operations and failed to disclose material information relating to the credit delinquency problem at Fingerhut. "Management believes that the allegations contained in the Complaints are without merit and intends to defend vigorously against those allegations," the Company said. FIDELITY GROUP:South Carolina Residents Sue Over Unpaid Medical Bills ----------------------------------------------------------------- ---- Eighteen months after a federal judge gave the nod for the case to proceed, close to a thousand South Carolinians are seeking class action status in a suit against Fidelity Group over its health plan, the Tribune Business News reported Wednesday. According to the report, workers in South Carolina have been facing mounting debts and credit troubles over the past three years or more over unpaid medical bills. "I don't doubt there is over $1 million in unpaid medical bills," said Justin S. Kahn, representing employee groups. In its bid for class action, the suing parties said in a legal document that class action might be the most economical and efficient means of litigating in many circumstances, the report said. But agents and administrators contend that individual claims of employees aren't enough alike to be taken as one class. Charles Norris, lawyer for HealthPlan Services Inc. and Third Party Claims Management, said there is too much dissimilarity in the claims. "There were different people dealing with different defendants," he said. New York-based Fidelity, the International Workers Guild, and the National Association of Business Owners and Professionals offered health and benefit plans in the mid-1990s. South Carolina was one of the more active states for marketing the low- cost health plan, primarily sold in 1996 and 1997, the report said. FISHER-PRICE: Settles Defective Power Wheels Suit, Offers Free Repair ----------------------------------------------------------------- ---- Owners of Power Wheels ride-on toy vehicles purchased before October 22, 1998 are eligible to receive free repairs for electrical defects and up to $20 in compensation under a nationwide class action settlement that has been preliminarily approved. The settlement, announced in Bucks County, PA Common Pleas Court, resolves six class action lawsuits pending against Fisher-Price throughout the nation. Under the terms of the settlement, which must be formally approved by the court, class members will receive free repairs and, on submission of a proof of claim form, up to $20 in a combination of payments or certificates good on a variety of Fisher-Price products. Fisher-Price was sued by Power Wheels owners following its delay in repairing these toys as promised in a U.S. Consumer Product Safety Commission-approved recall in October 1998. According to the CPSC, the company needed to replace electrical connectors and fuses in its Super 6 and 12 Volt Power Wheels toys and provide safety checks. After the recall was announced, consumers were required to wait for months before repairs were finally scheduled. To date, Fisher-Price has repaired less than 600,000 of the estimated three million affected Power Wheels still in use. The settlement provides for additional notice to the public of the availability of free repairs and their entitlement to claim compensation. The settlement preceded the U.S. Consumer Product Safety Commission's June 6, 2001 announcement of a record setting $1.1 million fine on Fisher Price for its failure to report this product defect and the numerous warranty claims and incidents which resulted. The fairness hearing is scheduled for September 5, 2001 at 9:30 a.m. in the Court of Common Pleas of Bucks County, Doylestown, PA. Payments under the settlement cannot be processed until the court considers and approves the settlement at the hearing. Consumers, who wish to obtain more information, including a copy of the Notice or the Proof Of Claim form, can do so by calling the Settlement Administrator at 1-888-618-4114. GART SPORTS: Receives Third Complaints Over Wage And Hour Violations ----------------------------------------------------------------- --- A third class action complaint alleging the same claims from the two preceding this was filed in March this year against Gart Sports Company. In a recent regulatory filing, the Company informed the Securities and Exchange Commission that the third complaint alleged the same wage and hour violations as that of the two complaints filed early last year. The first complaint filed June last year alleged violations of the California Labor Code, California Business and Professional Code section 17200 and other related matters. The complaint alleges that the Company classified certain managers in its California stores as exempt from overtime pay when they would have been classified as non-exempt and paid overtime. The second complaint alleges that the Company failed to pay hourly employees in its California stores for all hours worked. All the complaints seek compensatory damages, punitive damages and penalties. The amount of damages sought is unspecified. The court recently denied motions to dismiss the first two complaints. "The Company intends to vigorously defend these matters and at this time, the Company has not ascertained the future liability, if any, as a result of these complaints," the Company said. INFOSPACE INC.:Hagens Berman Files Securities Suit In W.D. Washington ----------------------------------------------------------------- ---- Hagens Berman LLP filed a class action in the United States District Court for the Western District of Washington on behalf of all purchasers of InfoSpace, Inc. common stock during the period from January 26, 2000 through January 30, 2001. The complaint charges InfoSpace and its founder and Chairman Naveen Jain with violations of the federal securities laws. Specifically, plaintiffs have brought claims under sections 10(b) and 20 of the Securities Exchange Act of 1934. The complaint alleges that between January 2000 and January 2001, Defendants disseminated false and misleading information concerning InfoSpace's actual FY 1999 and 2000 financial performance and Defendants' expectations concerning InfoSpace's FY 2001 revenue and earnings. Defendants' public representations were the result of Defendants' efforts to manipulate InfoSpace's reported earnings and expected FY 2001 performance. For further details, contact: Hagens Berman LLP through Steve Berman or Karl Barth by Phone: 206/623-7292 or 888/381-2889 or by E-mail: Karl@Hagens-Berman.com LONGS DRUG: Jury Awards $300T To Ex-employees For Emotional Distress ----------------------------------------------------------------- --- In Palacio v. Longs Drug Stores, an Alameda County jury awarded six former employees $300,000.00 against leading drug store chain Longs Drug Stores for intentional infliction of emotional distress caused by the abusive interrogation tactics of Longs' Loss Prevention Agents. The jury also found that Longs Drug's conduct was despicable, fraudulent and oppressive, but awarded no money for punitive damages. According to lead Counsel, Mary Shea, "We are very pleased with this outcome. The jury made a lot of sacrifices and we truly appreciate their effort. The verdict far exceeded any money Longs ever offered in this case or in any other case like this. "I am very proud of my clients and my trial team. They demonstrated extreme courage under the most difficult circumstances," she said. "We were always in this to get Longs to stop abusing employees. They did not take action after a woman who had been interrogated committed suicide, or after they had received dozens of other complaints. This verdict is the first step in effecting change. "We are encouraged by Longs' CEO's recent admission of wrongdoing by Loss Prevention and we expect that our class action suit will make an even bigger impact," she added. MEN'S WEARHOUSE: Misleading Slack Advertisement Results In CA Suit ----------------------------------------------------------------- - Men's Wearhouse, Inc., in a report to the Securities and Exchange Commission, revealed recently that a lawsuit was filed against the Company last May. A lawsuit was filed in the Superior Court of California for the County of San Diego, Cause No. GIC 767223. The Suit, which was brought as a purported class action, alleges several causes of action, each based on the factual allegation that the Company advertised and sold men's slacks at a marked price that was exclusive of a hemming fee for the pants. The Suit seeks: (i) permanent and preliminary injunctions against advertising slacks at prices which do not include hemming; (ii) restitution of all funds allegedly acquired by means of any act or practice declared by the Court to be unlawful or fraudulent or to constitute unfair competition under certain California statutes, (iii) prejudgment interest; (iv) compensatory and punitive damages; (v) attorney's fees; and (vi) costs of suit. The Company believes that the Suit is without merit and the allegations are contrary to customary and well-recognized and accepted practices in the sale of men's tailored clothing. "We intend to vigorously defend the suit," the Company said. NAVISITE INC.: Schiffrin Barroway Files Securities Suit In S.D. NY ----------------------------------------------------------------- - Schiffrin & Barroway, LLP filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of NaviSite, Inc. (Nasdaq: NAVI) from October 22, 1999 through December 6, 2000, inclusive. The complaint charges NaviSite and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. For more details, contact: Schiffrin & Barroway, LLP through Marc A. Topaz, Esq. or Stuart L. Berman, Esq. by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com NET2000 COMMUNICATIONS: Milberg Weiss Files Securities Suit In NY ----------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed Tuesday a class action lawsuit on behalf of purchasers of the securities of Net2000 Communications, Inc. (Nasdaq: NTKK) between March 7, 2000 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants Net2000, Goldman Sachs & Co., Bear Stearns & Co., Inc., Lehman Brothers, Inc., Salomon Smith Barney, Inc., Clayton A. Thomas, Jr., Clyde Heintzelman and Donald E. Clarke. The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more details, contact: Milberg Weiss Bershad Hynes & Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 or by E-mail: net2000case@milbergNY.com NETWORK COMMERCE: Cohen Milstein Files Securities Suit In W.D. WA ----------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. filed a lawsuit in the United States District Court for the Western District of Washington on behalf of persons who purchased Network Commerce Inc. (Nasdaq:NWKC) common stock during the period between Sept. 28, 1999 and April 16, 2001. The complaint charges that Network Commerce and its Chairman and CEO, Dwayne M. Walker, violated Sections 11, 12(2), and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants issued a series of materially false and misleading statements that were contained in various press releases, public statements and SEC filings, including several prospectuses and registration statements, which had the effect of artificially inflating the price of Network Commerce stock during the Class Period. For further details, contact: Murray T.S. Lewis (mlewis@cmht.com) or Clarence D. Williams (cwilliams@cmht.com) Cohen Milstein Hausfeld & Toll, P.L.L.C. 999 Third Avenue, Suite 3600 Seattle, Washington 98104 PH.: 206/521-0080 FAX: 206/521-0080 Toll Free: 888/240-1238 PURCHASEPRO.COM: Kirby McInerney Sues Over Artificially Inflated Stock ----------------------------------------------------------------- ----- Kirby McInerney & Squire has filed a class action on behalf of purchasers of PurchasePro.com, Inc. (Nasdaq: PPRO) securities between March 23, 2000, and May 21, 2001. The class action asserts claims on behalf of investors who, during the class period, bought PurchasePro securities directly or acquired their PurchasePro securities in exchange for shares, ADRs, or options in other companies that were acquired by PurchasePro. The complaint charges PurchasePro and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Act of 1934, arising from defendants' dissemination of materially false and misleading financial results throughout the class period. The complaint alleges that defendants, throughout the class period, misrepresented the company's financial results and prospects by - among other things - improperly recognizing as revenue certain payments made to PurchasePro by certain customers, which payments were in fact and substance payments for warrants to purchase PurchasePro stock that PurchasePro had granted to those customers in order to gain their business. The complaint alleges that, due to defendants' engagement in and accounting for such revenues-for-warrants transactions, defendants caused PurchasePro to report artificially inflated revenues and earnings, and that these false and misleading financial results had the effect of inflating the price of PurchasePro's securities. For more information, contact: KIRBY McINERNEY & SQUIRE, LLP through Ira Press, Esq. or Orie Braun by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022 by Phone: (212) 317-2300 or (888) 529-4787 (toll free) RAYTHEON CORPORATION: Hagens Berman Files Securities Lawsuit In Idaho ----------------------------------------------------------------- ---- Hagens Berman LLP filed a class action in the United States District Court for the District of Idaho on behalf of all purchasers of Washington Group International, Inc., formerly known as Morrison Knudsen Corporation, during the period from April 17, 2000 through March 1, 2001. The complaint charges Raytheon Corp, (NYSE:RTN) and certain of its officers with violations of the federal securities laws. Specifically, plaintiffs have brought claims under sections 10(b) and 20 of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, Raytheon deliberately misrepresented the true financial condition of its Raytheon Engineers & Constructors division in order to sell this division to Washington Group at an artificially inflated price. On April 17, 2000, the beginning of the Class Period, Raytheon and Washington Group each issued press releases disclosing Raytheon's sale of RE&C to Washington Group for a modest cash price and Washington Group's assumption of RE&C's liabilities of approximately $500 million. The sales agreement, which was filed with the Securities and Exchange Commission on the same day, detailed the transaction, including Raytheon's promise to reimburse Washington Group for cost overruns from certain projects. Throughout the Class Period, defendants issued misleading financial statements for RE&C that failed to disclose massive cost overruns of approximately $700 million that were known to exist at the time of the sale transaction, but were not disclosed to investors. On March 2, 2001, the Class Period closes with Washington Group's shocking announcement that Raytheon was refusing to honor its previously disclosed contractual commitments to reimburse Washington Group for these massive cost overruns. Further, Washington Group announced that Raytheon's refusal to reimburse Washington Group for these massive cost overruns placed the Company in a severe "near-term liquidity problems" -- including being in default of its senior credit facilities -- that could result in the bankruptcy of the Washington Group. Following this announcement, the price of Washington Group stock plummeted 80% from $8.00 per share to $1.65 per share, causing a market capitalization loss of more than $400 million to stockholders, and more than $200 million to bondholders. Ultimately, these cash shortages forced Washington Group to seek protection under the bankruptcy laws on March 14, 2001. For more information, contact: Hagens Berman, Steve Berman or Karl Barth by Phone: 206/623-7292 or 888/381-2889 or by E-mail: Karl@Hagens- Berman.com RAZORFISH INC.: Bernstein Liebhard Files Securities Suit In S.D. NY ----------------------------------------------------------------- -- Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf of all persons who acquired RazorFish, Inc. (NASDAQ: RAZF) securities between April 27, 1999 and June 11, 2001. The case is pending in the United States District Court for the Southern District of New York. Named as defendants in the complaint are Razorfish and the following executive officers of Razorfish: Jeffrey A. Dachis, Craig M. Kanarick, Per I.G. Bystedt, Jonas S.A. Svensson, Susan Black, Carter F. Bales, Kjell A. Nordstrom, and John Wren. The complaint also names as defendants Credit Suisse First Boston Corporation, BancBoston Robertson Stephens, Inc., BT Alex. Brown Incorporated, and Lehman Brothers, Inc., co-lead underwriters of the Company's initial public offering of 3,000,000 shares of common stock at $16.00 per share on April 27, 1999. The complaint charges defendants with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, for issuing a Registration Statement and Prospectus that contained material misrepresentations and/or omissions. For further details, contact: Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-1414 or by E-mail: RAZF@bernlieb.com. SILVERSTREAM SOFTWARE: Lovell And Sirota Firms File Suit In S.D. NY ----------------------------------------------------------------- -- The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP filed Wednesday a class action lawsuit on behalf of all persons and entities who purchased, converted, exchanged or otherwise acquired the common stock of Silverstream Software, Inc. (NasdaqNM:SSSW) between August 16, 1999 and May 23, 2000, inclusive. The lawsuit asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. The action, Collegeware USA, Inc. v. Silverstream Software, Inc., et al., is pending in the U.S. District Court for the Southern District of New York, Docket No. 01-CV-5600 (GEL) and has been assigned to the Hon. Gerard E. Lynch, U.S. District Judge. The complaint alleges that Silverstream Software, Inc., David R. Skok, its Chairman, David A. Litwack, its President and CEO, and Craig A. Dynes, its CFO, violated the federal securities laws by issuing and selling Silverstream Software common stock pursuant to the IPO and secondary offering without disclosing to investors that at least two of the lead underwriters in the IPO and secondary offering had solicited and received excessive and undisclosed commissions from certain investors. The complaint further alleges that defendants violated the Securities Act of 1933 because the Prospectuses distributed to investors and the Registration Statements filed with the SEC in order to gain regulatory approval for the Silverstream offerings contained material misstatements regarding the commissions that the underwriters would derive from the IPO and secondary offering and failed to disclose the additional commissions. For more information, contact the following lawyers: Lovell & Stewart, LLP, New York Christopher Lovell Victor E. Stewart Christopher J. Gray 212/608-1900 sklovell@aol.com Sirota & Sirota, LLP, New York Howard B. Sirota Saul Roffe 212/425-9055 info@sirotalaw.com STAMPS.COM: Wolf Popper Commences Securities Suit In S.D. New York ----------------------------------------------------------------- - Wolf Popper LLP has filed a class action lawsuit charging Stamps.com Inc. (NASD: STMP), Goldman Sachs & Co., Credit Suisse First Boston Corp., Salomon Smith Barney, Inc., BancBoston Robertson Stephens, Thomas Weisel Partners, LLC, and Volpe Brown Whelan & Company, LLC and certain of Stamp.com's senior officers with violations of the United States securities laws. The action was filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased Stamps.com common stock on the open market during the period June 24, 1999 through December 6, 2000 inclusive. The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more details, contact: Wolf Popper LLP through Robert C. Finkel by Mail: 845 Third Avenue, New York, NY 10022-6689 by Phone: 212-451- 9620/212-759-4600 or by E-mail: IRRep@wolfpopper.com STAPLES INC.: Faces Consolidated Suit Over Reclassification Of Stocks ----------------------------------------------------------------- ---- Staples Inc. revealed in a recent regulatory document filed with the Securities and Exchange Commission that beginning March 23, 2001, 12 lawsuits were filed in Delaware Chancery Court by Staples RD stockholders against Staples and each of its directors. The lawsuits were subsequently consolidated into a purported class action entitled In re Staples, Inc. Shareholders Litigation, Cons. C.A. No. 18784. The plaintiffs oppose Staples' proposal to reclassify the Staples.com and Staples RD series of common stock into a single class of Staples Common Stock. Plaintiffs allege that the proposed reclassification violates Delaware General Corporation Law, Staples' contractual obligations, and the fiduciary duties of Staples' directors and moved for a preliminary injunction to prevent a shareholder vote, previously scheduled for June 11, 2001, on the reclassification proposal. After holding a hearing on the motion, the court decided on June 5, 2001, that the vote may proceed after the Company sets a new record date for the vote and makes additional disclosures regarding the methodology used by the Board and the outside investment bankers retained by the Board in recommending the valuation of the Staples.com stock for purposes of the reclassification. The Company intends to hold a stockholders meeting to vote on the reclassification after setting a new record date and amending the proxy statement in accordance with the court's opinion. "Staples believes the plaintiffs' remaining claims for relief are without merit and intends to defend vigorously against them," the Company said. TOBACCO LITIGATION: Govt's Opinion Of RICO Suit No Surprise To Lawyers ----------------------------------------------------------------- ----- "Yesterday's announcement by the Bush Administration to enter into settlement negotiations with the cigarette companies regarding the federal government's RICO lawsuit comes as no surprise," says Cohen, Milstein partner Paul T. Gallagher, referring to Tuesday's pronouncement from the White House. Gallagher is a lead attorney in a nationwide class action lawsuit on behalf of young smokers. "The manner in which the Administration's announcement was made, including the government's purported assessment that its claims were weak, clearly demonstrates that the Bush Administration, like too many Administrations before it, is protecting the interests of the cigarette manufacturers over the interests of individuals who have been defrauded and harmed by the cigarette companies' fifty-year conspiracy," Gallagher said. Attorneys Johnnie Cochran (Cochran, Cherry, Givens & Smith) and Michael D. Hausfeld filed their suit in May 2001. They assert that the major tobacco companies are guilty of fraud and racketeering in their aggressive efforts to get young people to buy and continue to use cigarettes. In response to Tuesday's announcement, Gallagher added, "The Administration and the cigarette companies should be aware that the plaintiffs in our recently filed class action RICO case in the District of Columbia -- a case that parallels the government's RICO claims -- will pursue their case vigorously on behalf of the real victims of the cigarette companies: the men, women and children who the cigarette companies deceived in order to hook them on a product that in many, if not most, cases will ultimately contribute to their death. "Any attempt to achieve a complete and final settlement of these claims cannot, and will not, be successful without the active participation and input from these victims and their counsel," Gallagher assured. VERTICALNET INC.: Schiffrin Barroway Files New York Securities Suit ----------------------------------------------------------------- -- Schiffrin & Barroway filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of VerticalNet, Inc. (Nasdaq: VERT) from February 11, 1999 through December 6, 2000, inclusive. The complaint charges VerticalNet and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. For further details, contact: Schiffrin & Barroway, LLP through Marc A. Topaz, Esq. or Stuart L. Berman, Esq. by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com * Class Action Model, Environmental Court Would Aid Thai Legal System ----------------------------------------------------------------- ---- Legal experts in Thailand are clamoring for an environmental court to deal with the more complicated cases involving conflicts over environmental damage, a report from the Bangkok Post recently said. These legal experts believe adoption of the class action model within an environmental court also would promote movement of cases through the judicial system. Resolution of legal conflicts over pollution, related health problems and other environmental matters are still treated as ordinary cases, with no recognition that special expertise is required so that these cases do not linger an inordinate length of time in the courts. Most judges, observed Suthee Yoenyong of the Law Society of Thailand, do not have enough understanding of the various issues, both technical and social involved in the environmental conflicts. Appeals Court Judge Jaran Pukditanakul supported this view of the problem: Such cases, he said, need application of the interdisciplinary sciences in order to reach a decision. For this reason, he continued, it would be better to set up a special unit to deal with the environmental cases. Environmental NGO's that have registered with the Science, Technology and Environment Ministry should be empowered to file cases on behalf of damaged parties. And the class action suit concept should also be introduced to allow groups of people to be represented in a single case, he said. Jaran believed this could be done once the government recognized the need. The bankruptcy court, he noted, was established within six months with support from the International Monetary Fund. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Larri-Nil Veloso and Lyndsey Resnick, Editors. Copyright 2001. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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