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/raid1/www/Hosts/bankrupt/CAR_Public/010625.mbx C L A S S A C T I O N R E P O R T E R Monday, June 25 2001, Vol. 3, No. 123 Headlines ACCELERATED NETWORKS: Stull Stull Files Securities Suit In S.D. NY AETHER SYSTEMS: Bernstein Liebhard Files Securities Suit In S.D. NY AREMISSOFT CORPORATION: Wolf Haldenstein Files Securities Suit In NJ AUDIBLE INC.: Milberg Weiss Commences Securities Suit In S.D. NY AVENUE A: Milberg Weiss Begins Securities Suit In S.D. New York AVICI SYSTEMS: Lovell And Sirota Firms File Securities Suit In S.D. NY COMMERCE ONE: Milberg Weiss Commences Securities Suit In S.D. NY DIGITAL IMPACT: Cauley Geller Commences Securities Suit In S.D. NY GIO AUSTRALIA: Australian Securities Commission Sues Former Executives INFOSPACE INC.: Cauley Geller Files Securities Suit In W.D. Washington JO-ANN STORES: Lortz Complaint In Discovery, No Trial Date Set LOS ANGELES: Recreational Aides Suing City Over Low Pay, Job Abuses MICHAELS STORES: Inks Tentative $3M Settlement For Raniwala Suit MICHAELS STORES: Hearing Today Could Expand Class Against Subsidiary NAVISITE INC.: Cauley Geller Commences Securities Suit In S.D. NY NET2000 COMMUNICATIONS: Schiffrin Barroway Files Suit In S.D. New York NETWORK COMMERCE: Marc Henzel Files Securities Suit In W.D. Washington PEAK INTERNATIONAL: Securities Suit Plaintiff Files Amended Complaint ROBOTIC VISION: Wolf Haldenstein Commences Securities Suit In MA SERVICE CORPORATION: Outcome Of Securities Suit In Texas Unpredictable TELAXIS COMMUNICATIONS: Milberg Weiss Files Securities Suit In S.D. NY VALUE AMERICA: Milberg Weiss Commences Securities Suit In S.D. New York VERTICALNET INC.: Cauley Geller Files Securities Suit In S.D. New York ********* ACCELERATED NETWORKS: Stull Stull Files Securities Suit In S.D. NY ------------------------------------------------------------------ Stull, Stull & Brody filed a class action lawsuit last week in the United States District Court for the Southern District of New York, on behalf of purchasers of Accelerated Networks, Inc. (NASDAQ:ACCL) common stock between June 23, 2000 and June 8, 2001, inclusive. The complaint alleges defendants Accelerated Networks, Inc., Suresh Nihalani, Frederic T. Boyer, H.R. Johnson, Steven M. Krausz, Peter T. Morris, Robert F. Kuhling, Jr., Lip-Bu Tan and Anthony T. Maher violated the federal securities laws by issuing and selling Accelerated Networks common stock pursuant to the June 23, 2000 IPO without disclosing to investors that some of the underwriters in the offering, including the lead underwriters, had solicited and received excessive and undisclosed commissions from certain investors. For more information, contact: Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. AETHER SYSTEMS: Bernstein Liebhard Files Securities Suit In S.D. NY ------------------------------------------------------------------- Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf all persons who acquired Aether Systems, Inc. (NASDAQ: AETH) securities between October 21, 1999 and June 15, 2001. The case is pending in the United States District Court for the Southern District of New York against Aether and the following executive officers of Aether: David S. Oros and David C. Reymann. The complaint also names as defendants 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. 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 further details, contact: Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or by e-mail at AETH@bernlieb.com AREMISSOFT CORPORATION: Wolf Haldenstein Files Securities Suit In NJ -------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of purchasers of the securities of AremisSoft Corp. (NASDAQ:AREM - News) between December 17, 1999 and May 17, 2001, inclusive. Aside from the Company, defendants in the case include Lycourgos Kyprianou, the Company's CEO and Chairman of the Board and Roys Poyiadjis the Company's President. The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges, among other things, that defendants issued a series of materially false and misleading statements starting on December 17, 1999, when defendants issued a press release announcing that AremisSoft had been awarded a contract by the National Health Insurance Fund of Bulgaria to automate the national healthcare system of Bulgaria. Defendants stated that the Bulgarian Contract was valued at $37.5 million. Thereafter, the defendants highlighted the Bulgarian Contract and its value in the Company's press releases and public filings. On May 17, 2001, an article in the New York Times reported that officials of the World Bank and Bulgaria indicated that the value of their contract with AremisSoft is for less than $4 million. On May 18, 2001, AremisSoft issued a press release concerning the Bulgarian Contract and essentially admitted that its prior representations concerning the Bulgarian Contract had been misleading because the Company had not disclosed that AremisSoft had only won a small portion of the Bulgarian Contract and that the Company would have to engage in competitive bidding for the remainder of the contract. When trading in AremisSoft stock reopened after being halted the price decline from $13.28 per share to $11.98 per share. For more details, contact: Wolf Haldenstein Adler Freeman & Herz LLP, New York through Gregory Nespole, George Peters, Fred Taylor Isquith, Esq. by Phone: 800/575-0735 by E-mail: classmember@whafh.com or visit the firm's Website: www.whafh.com AUDIBLE INC.: Milberg Weiss Commences Securities Suit In S.D. NY ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed last week a class action lawsuit on behalf of purchasers of the securities of Audible, Inc. (NASDAQ:ADBL) between July 16, 1999 and December 6, 2000, inclusive. The action, captioned Regam v. Audible, Inc. et al., 01 CV 5665, is pending in the United States District Court, Southern District of New York against defendants Audible, Credit Suisse First Boston Corporation, Lehman Brothers, Inc. Morgan Stanley & Co., Incorporated, Andrew J. Huffman and Andrew P. Kaplan. 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 additional information, contact: Milberg Weiss Bershad Hynes & Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: audiblecase@milbergNY.com or visit the firm's Website: http://www.milberg.com AVENUE A: Milberg Weiss Begins Securities Suit In S.D. New York --------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed last week a class action lawsuit on behalf of purchasers of the securities of Avenue A, Inc. (Nasdaq:AVEA) between February 28, 2000 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants Avenue A, Morgan Stanley & Co., Incorporated, Salomon Smith Barney, Inc., Brian P. McAndrews, Nicolas J. Hanauer and Robert M. Littauer. 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, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: avenueacase@milbergNY.com or visit the firm's Website: http://www.milberg.com AVICI SYSTEMS: Lovell And Sirota Firms File Securities Suit In S.D. NY ---------------------------------------------------------------------- The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP filed a class action lawsuit last week on behalf of all persons and entities who purchased, converted, exchanged or otherwise acquired the common stock of Avici Systems Inc. (NasdaqNM:AVCI) between July 27, 2000 and November 28, 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, Lin v. Avici Systems, Inc., is pending in the U.S. District Court for the Southern District of New York, Docket No. 01-CV-5674 (CSH) and has been assigned to the Hon. Charles S. Haight, Jr., U.S. District Judge. The complaint alleges that Avici and certain of its officers and directors violated the federal securities laws by issuing and selling Avici common stock pursuant to the initial public offering without disclosing to investors that at least two of the lead underwriters and one of the other underwriters of the IPO 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 Prospectus distributed to investors and the Registration Statement filed with the SEC in order to gain regulatory approval for the Avici offering contained material misstatements regarding the commissions that the underwriters would derive from the IPO and failed to disclose the additional commissions. For further details, contact: Lovell & Stewart, LLP, New York through Christopher Lovell, Victor E. Stewart, or Christopher J. Gray by Phone: 212/608-1900 or by E-mail: sklovell@aol.com Contact: Sirota & Sirota, LLP, New York through Howard B. Sirota or Saul Roffe by Phone: 212/425- 9055 or by E-mail: info@sirotalaw.com COMMERCE ONE: Milberg Weiss Commences Securities Suit In S.D. NY ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed last week a class action lawsuit on behalf of purchasers of the securities of Commerce One, Inc. (NASDAQ:CMRC) between July 1, 1999 and December 6, 2000, inclusive. The action, captioned Kucera v. Commerce One, Inc. et al., is pending in the United States District Court, Southern District of New York against defendants Commerce One, Credit Suisse First Boston Corporation, BancBoston Robertson Stephens, Mark B. Hoffman and Peter F. Pervere. 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 further details, contact: Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: commerceonecase@milbergNY.com or visit the firm's Website: http://www.milberg.com DIGITAL IMPACT: Cauley Geller Commences Securities Suit In S.D. NY ------------------------------------------------------------------ Cauley Geller Bowman & Coates, LLP filed last week 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 more details, 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 (toll free) or by E-mail: info@classlawyer.com GIO AUSTRALIA: Australian Securities Commission Sues Former Executives ---------------------------------------------------------------------- The Australian Securities & Investments Commission has announced a court action against three former GIO Australia executives, the Australasian Business Intelligence: Sydney Morning Herald reported recently. In addition, a class action against GIO, its former directors and some of its advisers, is also taking place, according to the same report. The ASIC's action will include, as one of the three defendants, GIO's former chief financial officer, Geoffrey Vines. The former executives are facing action over the financial outlook they gave for GIO's reinsurance business during the course of the takeover by AMP in late 1998. ASIC chairman David Knott said there were two primary contraventions alleged in each charge, with the penalty up to $A200,000 for each contravention. Steve Walsh, lawyer in the class-action suit against GIO, said the ASIC's decision to proceed to court action is welcomed by the shareholders he represents. INFOSPACE INC.: Cauley Geller Files Securities Suit In W.D. Washington ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Western District of Washington on behalf of purchasers of InfoSpace Inc. (Nasdaq: INSP) securities during the period between January 26, 2000 and January 30, 2001, inclusive. The complaint charges InfoSpace and its founder and Chairman, Naveen Jain, with violations 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 FY 2000 financial performance and defendants' expectations concerning InfoSpace's FY 2001 revenue and earnings. For further details, 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 (toll free) or by E-mail: info@classlawyer.com JO-ANN STORES: Lortz Complaint In Discovery, No Trial Date Set -------------------------------------------------------------- No hearing date has been set so far on the complaint filed by former and current store managers in California, according to Jo-Ann Stores, Inc. in its recent report to the Securities and Exchange Commission. The Company said the case is in early stage of discovery and nothing substantial has so far occurred since the filing of the complaint in August last year. Former employee Sandy Lortz filed the case last year in the Superior Court of California and alleged the Company violated certain California laws by erroneously treating its store management employees as "exempt" employees who are not entitled to overtime compensation. The Lortz Complaint seeks compensatory damages, penalties, attorneys' fees and injunctive relief. LOS ANGELES: Recreational Aides Suing City Over Low Pay, Job Abuses ------------------------------------------------------------------- Recreation assistants who run the after-school, preschool and sports programs at the many centers scattered around Los Angeles are planning to sue the city in Superior Court, charging that they have been routinely forced to work off the clock in order to keep their low-wage jobs, according to a recent report in the Los Angeles Times. Eight workers are named in the lawsuit that seeks class-action status covering 2,500 current and former employees. Several of the plaintiffs have held their jobs for more than ten years, occasionally filling in as center directors, yet receiving no extra pay. The lawsuit was prepared by the American Federation of State, County and Municipal Employees, which is also negotiating a first contract for the recreation assistants. The recreation assistants earn less than $10 per hour and are not entitled to health benefits, vacations or any other "perks" because they are considered to be intermittent employees. Technically, such workers cannot are not permitted to work more than 1,040 hours per year (equivalent to a half-time job). However, the workers say their responsibilities actually consume more time and to meet these demands, as the assistants allege in their complaint, they work off the clock. Still other assistants are forced to take months long layoffs when they exceed their prescribed hours. A recent study, ordered by the City Council, found that the Recreation and Parks Department employs the largest number of intermittent workers in the city. At least 750 such employees logged 900 to 1040 hours. Councilor Mark Ridley-Thomas, head of the Council's Personnel Committee, said he is working to end the dispute. "This comes down to whether or not we have a practice that is unfair and exploitative. We have not been able to get good information from the appropriate staff at this point," he said. Councilor Laura Chick, who will take over as city controller next month, said she supports converting the jobs to part-time positions, "These are city employees who are working with our youth," she said. "It's an important job, and it is one that we should value .... If people feel they are being treated fairly, they will perform better." On the other hand, Councilor Nate Holden said the seasonal employees knew what they were getting into when they accepted their jobs. "When they took the job, they took it as seasonal. And now they think they have grounds to sue the city?" Mayor Richard Riordan has not engaged in the dispute. Mayor-elect James Hahn, who was supported by the union, is expected to be more receptive. MICHAELS STORES: Inks Tentative $3M Settlement For Raniwala Suit ---------------------------------------------------------------- Michaels Stores, Inc. revealed recently in a report to the Securities and Exchange Commission that it has already successfully inked an agreement to settle the Raniwala Class Suit. According to the Company, it negotiated the tentative settlement on June 6, 2001, which provides for payment of a maximum of $3.0 million covering all claims and attorneys' fees, plus estimated payroll taxes of approximately $153,000. The Company believes there is strong possibility that the proposed settlement will be approved by the Alameda County Superior Court, where the case is currently pending. On May 2, 2000, Taiyeb Raniwala, a former assistant manager of the Company, filed a purported class action complaint on behalf of the Company's former and current assistant store managers. The Raniwala Complaint alleged that the Company violated certain California laws by erroneously treating its assistant store managers as "exempt" employees who are not entitled to overtime compensation. The Raniwala Complaint sought back wages, interest, penalties, and attorneys' fees. MICHAELS STORES: Hearing Today Could Expand Class Against Subsidiary -------------------------------------------------------------------- Aaron Brothers, Inc., a subsidiary of Michaels Stores, Inc., braces today for a hearing, which could expand the purported class that filed a suit in 1999 over alleged violations of California labor and wage laws. According to the company in a recent report to the Securities and Exchange Commission, today's hearing on the amended Collins Complaint, if granted, would: (1) expand the purported class to include all current Aaron Brothers salaried store managers, assistant store managers, and managers-in-training based in California; (2) add a new plaintiff as a class representative; and (3) add two additional causes of action for injunctive and declaratory relief. Suzanne Collins, a former assistant manager of our subsidiary, Aaron Brothers, Inc., filed a class action complaint on April 14, 1999 against Aaron Brothers on behalf of Aaron Brothers' former store managers, assistant store managers, and managers-in-training. The Collins Complaint alleged that Aaron Brothers violated certain California laws by erroneously treating its store managers, assistant store managers, and managers-in-training as "exempt" employees who are not entitled to overtime compensation. Based on these allegations, the Collins Complaint asserts that Aaron Brothers: (a) violated certain California Labor Codes; (b) violated Section 17200 of the California Business and Professions Code; and (c) engaged in conversion. The Collins Complaint seeks back wages, interest, penalties, punitive damages, and attorneys' fees. A status conference is scheduled for July 11. At this conference, it is anticipated that the Court will set a hearing date to determine whether the case should proceed as a class action lawsuit. A trial date has not yet been scheduled. NAVISITE INC.: Cauley Geller Commences Securities Suit In S.D. NY ----------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of NaviSite, Inc. (Nasdaq: NAVI) common stock during the period between October 22, 1999 and 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 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 or by E-mail: info@classlawyer.com NET2000 COMMUNICATIONS: Schiffrin Barroway Files Suit In S.D. New York ---------------------------------------------------------------------- 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 Net2000 Communications, Inc. (Nasdaq: NTKK) from March 7, 2000 through December 6, 2000, inclusive . The complaint charges Net2000 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 NETWORK COMMERCE: Marc Henzel Files Securities Suit In W.D. Washington ---------------------------------------------------------------------- Marc S. Henzel filed a class action lawsuit in the United States District Court for the Western District of Washington at Seattle on behalf of all investors who purchased the common stock of Network Commerce Inc. (Nasdaq: NWKCD) between September 28, 1999 and April 16, 2001, inclusive, and who suffered damages thereby. 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. It is alleged that during the Class Period, defendants disseminated to the investing public false and misleading registration statements and prospectuses related to Network Commerce's Initial and Secondary Public Offerings, as well as its merger with Ubarter.com. For additional information, contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 210 West Washington Square, Third Floor Philadelphia, PA 19106, by telephone at (888) 643-6735 or (215) 625- 9999, by facsimile at (215) 440-9475, by e-mail at Mhenzel182@aol.com or visit the firm's website at http://members.aol.com/mhenzel182. PEAK INTERNATIONAL: Securities Suit Plaintiff Files Amended Complaint --------------------------------------------------------------------- The Plaintiff in the consolidated securities suit currently pending in New York against Peak International Ltd. has filed an amended complaint after the federal court dismissed last March a significant number of its claims. Dorchester Investors, which commenced the purported class action suit in June 1999, filed the amended complaint in the U.S. District Court for the Southern District of New York on behalf of all TrENDS purchasers. Following the dismissal, the principal remaining claims relate to the alleged failure of the TrENDS prospectus to disclose that significant short selling of the Company's common stock was certain to occur at the time of the TrENDS offering. TrENDS stands for Trust Enchanced Dividend Securities Offered by Peak TrENDS Trust, a Delaware subsidiary of the Company. "This case is still in its preliminary stages. Accordingly, we cannot predict the outcome of this matter with reasonable particularity," the Company said in a recent regulatory filing with the Securities and Exchange Commission. ROBOTIC VISION: Wolf Haldenstein Commences Securities Suit In MA ---------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP commenced a class action lawsuit last week in the United States District Court for the District of Massachusetts on behalf of all purchasers of Robotic Vision Systems, Inc. (NASDAQ: ROBV) securities between January 27, 2000 and May 15, 2001, inclusive. The suit named as defendants Robotic Systems, Pat V. Costa (Chief Executive Officer and Chairman of the Board of Robotic Systems), and Frank D. Edwards (Chief Financial Officer of Robotic Systems). The case is numbered 01-11059, and it is pending before the Honorable Richard G. Stearns. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements in its news releases and public filings with the Securities and Exchange Commission about its revenues and net income for the fiscal year ended September 30, 2000. For more details, contact: Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Michael Miske, George Peters, Gregory M. Nespole, Esq., or Fred Taylor Isquith, Esq.), via e-mail at classmember@whafh.com or visit the firm's website at www.whafh.com SERVICE CORPORATION: Outcome Of Securities Suit In Texas Unpredictable ---------------------------------------------------------------------- Service Corporation International said in a regulatory document recently that it is unable to predict the outcome of the 23 securities suit in Texas, which has since been consolidated into one action. According to the Company, discovery has been stayed momentarily pursuant to a provision in the Private Securities Litigation Reform Act of 1995. This law provides that a motion to dismiss has to be resolved first before any discovery can continue. The consolidated complaint alleges that the Company and three of its current or former executive officers and directors violated sections of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. This the Company allegedly did when it issued false and misleading statements and failed to disclose material information concerning its pre-arranged funeral business and other financial matters, in connection with the ECI merger. The consolidated complaint also alleges that the Company violated Section 11 and Section 12 of the Securities Act of 1933 in connection with the ECI merger related claims. This case was originally filed in 23 separate putative class action lawsuits in January 1999 in the United States District Courts for the Southern and Eastern Districts of Texas, on behalf of persons and entities who: (1) acquired shares of our common stock in the merger with Equity Corporation International, or ECI; (2) purchased shares of our common stock in the open market during the period from July 17, 1998 through January 26, 1999 (referred to herein as the class period); (3) purchased call options of ours in the open market during the class period; (4) sold put options of ours in the open market during the class period; (5) held employee stock options in ECI that became options to acquire our stock pursuant to the ECI merger; and (6) held employee stock options to purchase our common stock under a plan during the class period. TELAXIS COMMUNICATIONS: Milberg Weiss Files Securities Suit In S.D. NY ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed last week a class action lawsuit on behalf of purchasers of the securities of Telaxis Communications Corporation (NASDAQ:TLXS) between February 1, 2000 and December 6, 2000, inclusive. The action, captioned Daniel Kucera v. Telaxis Communications Corporation, Credit Suisse First Boston Corporation, John L. Youngblood, and Dennis C. Stempel, is pending in the United States District Court, Southern District of New York against defendants Telaxis, Credit Suisse First Boston Corp., John L. Youngblood, and Dennis C. Stempel. 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, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: Telaxiscase@milbergNY.com or visit the firm's Website: http://www.milberg.com VALUE AMERICA: Milberg Weiss Commences Securities Suit In S.D. New York ----------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed last week a class action lawsuit on behalf of purchasers of the securities of Value America, Inc. between April 8, 1999 and December 6, 2000, inclusive. The action, captioned Wolfe v. Value America, Inc. et al., is pending in the United States District Court, Southern District of New York against defendants BancBoston Robertson Stephens, Thomas Morgan, Dean M. Johnson, Sandra T. Watson and Rex Scatena. 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 information, contact: Milberg Weiss Bershad Hynes & Lerach LLP, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: valueamericacase@milbergny.com or visit the firm's Website: http://www.milberg.com VERTICALNET INC.: Cauley Geller Files Securities Suit In S.D. New York ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed recently a class action in the United States District Court for the Southern District of New York on behalf of purchasers of VerticalNet, Inc. (Nasdaq: VERT) securities during the period between February 11, 1999 and December 6, 2000, inclusive. The complaint charges defendants VerticalNet, Lehman Brothers, Inc., Bear Stearns & Co., Inc., BancBoston Robertson Stephens, Mark L. Walsh, Michael J. Hagan and Gene S. Godick 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 further 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 or by Phone: 1-888-551-9944 or by E-mail: info@classlawyer.com ********* 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. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *