CAR_Public/010702.mbx              C L A S S   A C T I O N   R E P O R T E R

               Monday, July 2 2001, Vol. 3, No. 128

                              Headlines


724 SOLUTIONS: Cauley Geller Begins Securities Suit In S.D. New York
ACRODYNE COMMUNICATIONS: Settles MD Suit For 1.6M Shares, 750T Cash
AETHER SYSTEMS: Stull Stull Begins Securities Suit In S.D. New York
AREMISSOFT CORPORATION: Faruqi & Faruqi Brings Securities Suit In NJ
ASCHE TRANSPORTATION: Lionel Glancy Files Securities Suit In Illinois

CHESTER UPLAND: Parties In School District Suit Agree To Drop Case
CHINADOTCOM CORPORATION: Milberg Weiss Files S.D. NY Securities Suit
DOUBLECLICK INC.: CA Suit To Go To Trial Jan.'02 If Not Settled
ECI TELECOM: Faruqi & Faruqi Files Securities Suit In E.D. Virginia
ETONIC/TRETORN: 16 Ex-workers Demand Back Wages, Class Status in Suit

ETOYS INC.: Lovell, Sirota Law Firms Files Securities Suit In S.D. NY
FRED HUTCHINSON: Files Answer To Liability Suit For Death Of Patients
INFOSPACE INC.: Slotnick Shapiro Files Securities Suit In W.D. WA
INFOSPACE INC.: Spector Roseman Commences Securities Suit In W.D. WA
NORTEL NETWORKS: Middle-aged Laid-Off Employees Sue For More Benefits

ONESOFT CORPORATION: Ex-workers Mull Suit Over Lack Of Lay-off Notice
PALM INC.: Cauley Geller Brings Securities Suit In S.D. New York
RAYTHEON CORPORATION: Kirby McInerney Files Securities Suit In Idaho
SAFEGUARD SCIENTIFICS: Beatie Osborn Files Securities Suit In E.D. PA
SARA LEE: Racial Discrimination Suits In Philadelphia Plant Increase
SOUTH KOREA: Gov't Pushes For Class Action In Transparency Issues
VALUE AMERICA: Cauley Geller Commences Securities Suit In S.D. NY

* International Franchise Association Backs Class Action Reforms Law


                              *********


724 SOLUTIONS: Cauley Geller Begins Securities Suit In S.D. New York
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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 724 Solutions, Inc. (Nasdaq: SVNX) common
stock during the period between January 27, 2000 and December 6, 2000,
inclusive.

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 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 (toll free) or by E-mail: info@classlawyer.com


ACRODYNE COMMUNICATIONS: Settles MD Suit For 1.6M Shares, 750T Cash
-------------------------------------------------------------------
Acrodyne Communications, Inc. (ACROE) announced last week that the
proposed settlement of the class action litigation filed in the United
States District Court for the District of Maryland in which the Company
and two of its officers and directors were named defendants has been
finally approved.

The settlement requires the Company to issue to the class plaintiffs in
the aggregate five (5) year warrants to purchase One Million Six
Hundred Thousand (1,600,000) shares of the Company's voting common
stock at an exercise price of One Dollar ($1.00) per share and to pay
the class plaintiffs Seven Hundred Fifty Thousand Dollars ($750,000.00)
in the aggregate.

The payment of cash portion of the settlement has been funded by the
Company's officers' and directors' indemnity insurance policy.

The Court, by Order and Final Judgement dated June 26, 2001:

     (i) found the settlement to be fair, reasonable, and adequate and
         in the best interests of the parties;

    (ii) settled, released, discharged and dismissed with prejudice the
         cases against the defendants;

   (iii) determined that the neither the settlement nor any of the
         documents or statements associated therewith are, or shall be
         construed as, a concession or admission by the defendants of
         the existence of any damages or wrongdoing; and

    (vi) awarded the plaintiffs' counsel 25% of the gross amount of the
         settlement fund as attorneys' fees, which amount is to be paid
         out of the settlement fund.

The Company also announced that its negotiations with Sinclair
Broadcast Group, Inc. (NASDAQ:SBGI), its single largest shareholder and
creditor, regarding a plan of re-capitalization and the restructure of
the Company's debt are again moving forward.

While there is no final agreement at this time (and any final agreement
is still contingent upon the occurrence of certain events, including
the restructure of some of the Company's non-Sinclair debt and
obligations), the Company reported that it is optimistic that the
negotiations have resumed and is hopeful that it will be able to
complete a fair arrangement that will afford the Company the financial
stability to continue operations and build for the future.

The Company's Chairman and President, Nathaniel Ostroff, commented: "We
are pleased that the Company has been able to finally resolve the
shareholder litigation. This is another giant step for Acrodyne.

"As a result of the approval by the court of the settlement, the
Company's demonstrated ability to build and deliver its new Quantum
transmitter product line, and the receipt of new non-Sinclair Orders
for Quantum Transmitters, the company is now in a position to plan and
build for the future," he said.

Sinclair commented: "The litigation settlement removes one of the most
significant hurdles to any re-capitalization of Acrodyne. It is great
news for the Company and all its shareholders."

Sinclair Broadcast Group (NASDAQ:SBGI) is a diversified broadcasting
company that currently owns or programs 61 television stations.

Sinclair's television group reaches approximately 25% of U.S.
television households and includes ABC, CBS, FOX, NBC, WB, and UPN
affiliates.


AETHER SYSTEMS: Stull Stull Begins Securities Suit In S.D. New York
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Stull, Stull & Brody filed late last week a class action lawsuit in the
United States District Court for the Southern District of New York, on
behalf of purchasers of Aether Systems, Inc. (NASDAQ:AETH) common stock
between October 21, 1999 and June 15, 2001, inclusive.

The complaint alleges that the following defendants violated Sections
11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of
the Securities Exchange Act of 1934:

     (i) Aether, Inc.,

    (ii) David S. Oros,

   (iii) David C. Reymann,

    (iv) Merrill Lynch, Pierce, Fenner & Smith Incorporated,

     (v) BancBoston Robertson Stephens Inc.,

    (vi) Donaldson, Lufkin & Jenrette Securities Corporation,

   (vii) U.S. Bancorp Piper Jaffray Inc.,

  (viii) Deutsche Bank Securities Inc. and

    (ix) Friedman, Billing, Ramsey & Co., Inc.

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 1001


AREMISSOFT CORPORATION: Faruqi & Faruqi Brings Securities Suit In NJ
--------------------------------------------------------------------
Faruqi & Faruqi, LLP filed a class action lawsuit in the United States
District Court for the District of New Jersey on behalf of all
purchasers of AremisSoft Corporation (Nasdaq:AREM) common stock between
Dec. 17, 1999, and May 17, 2001, inclusive.

The complaint charges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder.

For additional information, contact: FARUQI & FARUQI, LLP through
Anthony Vozzolo, Esq. by Mail: 320 East 39th Street, New York, NY 10016
by Phone: (877) 247-4292 or (212) 983-9330 by E-mail:
Avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com


ASCHE TRANSPORTATION: Lionel Glancy Files Securities Suit In Illinois
---------------------------------------------------------------------
The law office of Lionel Z. Glancy commenced a Class Action lawsuit
against Larry L. Asche, Diane L. Asche, Leon M. Manachos, and Ernst &
Young LLP on behalf of a class consisting of all persons who purchased
common stock of Asche Transportation Services, Inc. between March 30,
1998 and April 7, 2000.

ATS, whose common stock was traded on the NASDAQ exchange under the
symbol "ASHE," was not named as a defendant and has filed for
bankruptcy protection under Chapter 7 of the federal bankruptcy laws.

The action was filed in the United States District Court for the
Northern District of Illinois, Western Division.

The case was filed under Civil Action No. 01 C 50057, and has been
assigned to U.S. District Judge Philip B. Reinhard and Magistrate Judge
P. Michael Mahoney.

The Complaint charges Larry L. Asche, Diane L. Asche and Leon M.
Manachos -- former officers and directors of ATS -- with violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Plaintiff Christopher Cronau claims that these defendants' issued a
series of materially false and misleading press releases and filings
with the United States Securities and Exchange Commission from March
30, 1998 through November 15, 1999.

These press releases and filings allegedly failed to disclose the true
nature of ATS's revenues and earnings, causing ATS's stock price to
become artificially inflated and inflicting damages on investors.

In January through April 2000, the Company issued a series of press
releases that plaintiff claims revealed the Company's true financial
status, including an announcement on January 11, 2000 that certain
accounts may have been misstated in the Company's 1999 quarterly
reports and 1998 annual report.

On April 7, 2000 -- the end of the class period -- Nasdaq halted
trading in the Company's shares.

The Complaint also charges the accounting firm of Ernst & Young LLP
with violating Section 10(b) of the Securities Exchange Act of 1934 by
signing false and misleading audit reports on the financial statements
contained in the Company's annual reports filed with the SEC for fiscal
years 1997 and 1998.

For more information, contact: Michael Goldberg, Esq., of the Law
Offices of Lionel Z. Glancy, 1801 Avenue of the Stars, Suite 311, Los
Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free
at (888) 773-9224 or by e-mail to info@glancylaw.com.


CHESTER UPLAND: Parties In School District Suit Agree To Drop Case
------------------------------------------------------------------
Pennsylvania Secretary of Education Charles B. Zogby commended last
week Eastern District federal court Judge Ronald Buckwalter's decision
to dissolve the Office of Special Master in the Chester Upland School
District.

"We're pleased that Judge Buckwalter has approved the motion filed by
the Department of Education and the Chester Upland School District,"
Secretary Zogby said.

"It's time to empower the district to make decisions that are best for
its students. Chester Upland has made significant strides to improve
the education of all the district's children with special needs," he
said.

"I'm confident Chester Upland will continue to ensure these students
receive the quality education that they're entitled to under the law --
and that every child deserves," he added.

The class action suit, Duane B. v. Chester Upland School District, et
al., originally was filed in January 1990.

The suit centered on a small number of students in the district who
plaintiffs maintained were not properly identified as behavioral
support students, and were not receiving the free appropriate public
education (FAPE) to which they were entitled by law.

The court created an Office of Special Master to establish a neutral
party to monitor services rendered to the children.

In addition to dissolving the Office of Special Master, the defendants'
motion also stated that, during the 2000-01 school year, the district
and the Department of Education met their obligations contained in the
"Final Plan for Restructuring Services" -- a comprehensive plan that
outlined the necessary services for the Duane B. class members.

The case now has been placed in civil suspension, and will not be acted
on throughout the coming school year.

The district and the Department of Education anticipate another
productive year and, pending the successful completion of the 2001-2002
school year, all parties have agreed to dismiss the suit.

Under the Education Empowerment Act, the Chester Upland School District
Board of Control recently decided to contract with private educational
companies to provide educational services to the district's students.
Contracted services will begin this fall.

The department has a mandated process to address parents' concerns
about services for children with special needs.


CHINADOTCOM CORPORATION: Milberg Weiss Files S.D. NY Securities Suit
--------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP began late last week a class
action lawsuit on behalf of purchasers of the securities of Chinadotcom
Corp., (NASDAQ: CHINA) between July 12, 1999 and December 6, 2000,
inclusive.

The action alleges the following as defendants:

     (i) Chinadotcom Corp.,

    (ii) Lehman Brothers, Inc.,

   (iii) Bear, Stearns & Co., Inc.,

    (iv) BancBoston Robertson Stephens, Inc.,

     (v) Merrill Lynch, Pierce Fenner & Smith Inc.,

    (vi) Raymond Ch'ien,

   (vii) Peter Yip,
  (viii) Zhou Shun Ao, and
    (ix) David Kim
The case is pending in the United States District Court, Southern
District of New York, located at 500 Pearl Street, New York, NY 10007.

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.

On or about July 12, 1999 Chinadotcom commenced an initial public
offering of 4,200,000 of its shares of common stock at an offering
price of $20 per share.

In connection therewith, Chinadotcom filed a registration statement,
which incorporated a prospectus, with the SEC.

The complaint further alleges that the Prospectus was materially false
and misleading because it failed to disclose, among other things, that:

     (i) the Underwriter Defendants (Lehman Brothers, Bear Stearns,
         Robertson Stephens, and Merrill Lynch) had solicited and
         received excessive and undisclosed commissions from certain
         investors in exchange for which the Underwriter Defendants
         allocated to those investors material portions of the
         restricted number of Chinadotcom shares issued in connection
         with the Chinadotcom IPO; and

    (ii) the Underwriter Defendants had entered into agreements with
         customers whereby the Underwriter Defendants agreed to
         allocate Chinadotcom shares to those customers in the
         Chinadotcom IPO in exchange for which the customers agreed to
         purchase additional Chinadotcom shares in the aftermarket at
         pre-determined prices.

For additional information, contact: Milberg Weiss Bershad Hynes &
Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Phone:
800/320-5081 by E-mail: chinadotcomcase@milbergNY.com or visit the
firm's Website: http://www.milberg.com


DOUBLECLICK INC.: CA Suit To Go To Trial Jan.'02 If Not Settled
---------------------------------------------------------------
A California judge recently ruled to allow the suit against DoubleClick
Inc. to go on trial if the company fails to ink a settlement on the
matter by January next year, Newsbytes reported recently.

San Rafael District Court Judge Lynn O'Malley Taylor denied
DoubleClick's motion to dismiss the case, which is seeking damages from
the ad giant company for allegedly tracking and profiling users as they
browse the Internet.

Companies like DoubleClick use cookies to target specific
advertisements to users who have shown interest in certain topic areas.

But plaintiffs argue that by using cookies, DoubleClick can store
personally identifying information and build up a virtual warehouse of
user profiles based on their Internet surfing history.

They also claim that the practice amounts to a violation of their right
to privacy since information is often collected and sold to third
parties without the user's knowledge or permission.


ECI TELECOM: Faruqi & Faruqi Files Securities Suit In E.D. Virginia
-------------------------------------------------------------------
Faruqi & Faruqi, LLP filed recently a class action lawsuit in the
United States District Court for the Eastern District of Virginia on
behalf of all purchasers of ECI Telecom, Ltd. (Nasdaq:ECIL) common
stock between May 2, 2000, and Feb. 14, 2001, inclusive.

The complaint charges defendants with violations of federal securities
laws by, among other things, issuing a series of false and misleading
press releases concerning ECI Telecom's financial condition and
business prospects.

For further details, contact: FARUQI & FARUQI, LLP through Anthony
Vozzolo, Esq. by Mail: 320 East 39th Street, New York, NY 10016 by
Phone: (877) 247-4292 or (212) 983-9330 or by E-mail:
Avozz@faruqilaw.com


ETONIC/TRETORN: 16 Ex-workers Demand Back Wages, Class Status in Suit
---------------------------------------------------------------------
Sixteen former employees of Etonic/Tretorn and Spalding Sports Richmond
have brought a suit against the company seeking back wages, severance
pay and class action status.

According to the Morning Sentinel, the former workers in the Company's
golf-shoe factory in Richmond filed the suit in the U.S. District
Court, Portland.

The former employees seek severance pay equal to a week for each year
they worked on the factory.

Should the court grant class action status, all 66 people laid off by
the company on April 21, 1999 would be able to benefit from any
settlement, the newspaper said.

Under the federal Worker Adjustment Retraining Notification Act, the
back wages claims of the former employees could run as high as $1,000
per individual.

The sixteen workers have been with the company for 10 to 25 years.


ETOYS INC.: Lovell, Sirota Law Firms Files Securities Suit In S.D. NY
---------------------------------------------------------------------
The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP filed
Thursday last week a class action lawsuit on behalf of all persons and
entities who purchased, converted, exchanged or otherwise acquired the
common stock of eToys, Inc. between May 19, 1999 and May 26, 2000,
inclusive.

The lawsuit asserts claims under Section 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, Mehta v. eToys Inc., is pending in the U.S. District Court
for the Southern District of New York, Docket No. 01-CV-5911 (SAS) and
has been assigned to the Hon. Shira A. Scheindlin, U.S. District Judge.

The complaint alleges that eToys Inc, Edward C. Lenk, its President and
Chief Executive Officer at the time of its IPO, and Steven J. Schoch,
its CFO at the time of its IPO, violated the federal securities laws by
issuing and selling eToys common stock pursuant to the initial public
offering without disclosing to investors that three of the lead
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 eToys offering contained material misstatements
regarding the commissions that the underwriters would derive from the
IPO and failed to disclose the additional commissions.

For more information, contact: Lovell & Stewart, LLP through
Christopher Lovell, Victor E. Stewart or Christopher J. Gray by Phone:
212/608-1900 or by E-mail: sklovell@aol.com or contact Sirota & Sirota,
LLP through Howard B. Sirota or Saul Roffe by Phone: 212/425-9055 or by
E-mail: info@sirotalaw.com  


FRED HUTCHINSON: Files Answer To Liability Suit For Death Of Patients
---------------------------------------------------------------------
Fred Hutchinson Cancer Research Center filed last week its response to
a federal class action suit that has accused it of not fully informing
patients of the risks of its tests, the Seattle Times reported.

The research center argued that the suit brought by five individuals,
whose spouse died in relation to a blood-cancer experiment, should not
be certified as a class.

Instead, the cases should be broken into individual suit, the Center
said in its answer before the U.S. District Court In Seattle.

"The adequacy of disclosure to each patient presents an individual
question," the Center claims.

"The results of each patient's treatment, and the question of whether
(The Hutch) caused any injury, much less a wrongful death, is an
individual issue with respect to each patient," the court reply said.

The suit stems from an investigative series run by Seattle Times about  
how patients gave uninformed consent to experiments conducted by the
cancer research center.

According to the newspaper, there have been 20 blood-cancer patients
who have died prematurely in a test of experimental drugs, in which
Center doctors held financial interests.


INFOSPACE INC.: Slotnick Shapiro Files Securities Suit In W.D. WA
-----------------------------------------------------------------
SLOTNICK, SHAPIRO & CROCKER, LLP filed last week a class action in the
United States District Court for the Western District of Washington on
behalf of all individuals and institutional investors that purchased
the publicly traded securities of InfoSpace, Inc. (Nasdaq: INSP)
between January 26, 2000 through January 30, 2001, inclusive.

The Complaint charges the Company and its Founder and Chairman, Naveen
Jain, with violating the federal securities laws by providing
materially false and misleading information about the Company's
financial performance FY 1999 and 2000, and as a result of these false
and misleading statements the Company's stock traded at artificially
inflated prices during the Class Period.

For further details, contact: SLOTNICK, SHAPIRO & CROCKER, LLP through
Stephen D. Oestreich, Esq. by Mail: 100 Park Avenue, 35th Floor, New
York, NY 10017 by Phone: (212) 687-5000 or 1-888-367-5291 (toll free)
by Fax: (212) 687-3080 or by E-Mail: soestreich@sscny.com


INFOSPACE INC.: Spector Roseman Commences Securities Suit In W.D. WA
--------------------------------------------------------------------
Spector, Roseman & Kodroff, P.C. commenced a class action lawsuit in
the United States District Court for the Western District of Washington
against defendant InfoSpace, Inc. (Nasdaq: INSP) on behalf of
purchasers of the stock of InfoSpace during the period from January 26,
2000 through January 30, 2001, inclusive.

The complaint charges InfoSpace and its founder and Chairman, Naveen
Jain, with violations of the Securities Exchange Act of 1934.

For more information, contact: Robert M. Roseman by Phone: 888-844-5862
(toll free) by E-mail: classaction@spectorandroseman.com or visit the
firm's Website: http://www.spectorandroseman.com


NORTEL NETWORKS: Middle-aged Laid-Off Employees Sue For More Benefits
---------------------------------------------------------------------
A Lawsuit seeking additional severance and retirement benefits has been
filed against Nortel Networks Corporation in Canada, The Ottawa Citizen
reported recently.

According to the report, many former employees aged 50 or older when
laid off argue they deserve more benefits because of their difficulty
in finding equivalent jobs in the technology industry following their
termination.

Robert Isaacs, 54, a 33-year Nortel veteran, is the representative
plaintiff.  

The Ottawa Citizen said Isaacs has been holding a senior management
position since 1991 until May 31 this year when he was told we would be
gone in two months.

Lawyers say considering Mr. Isaacs' age, service and position, he did
not get "reasonable notice" of his termination, or compensation in lieu
of that notice.

A Nortel spokesman, however, has labeled the suit as "without merit"
and promised to defend against it "vigorously," the report said.

The class-action suit, if it goes ahead, would apply to all non-
unionized workers employed by Nortel who received notice of being laid
off on or after Dec. 1, 2000, were aged 50 or older, and who had worked
at the company for at least two years, the report said.


ONESOFT CORPORATION: Ex-workers Mull Suit Over Lack Of Lay-off Notice
---------------------------------------------------------------------
At least 100 former employees of OneSoft Corporation are contemplating
on filing a class action lawsuit against the company for allegedly
violating a 1988 worker-notification law, Newsbytes reported recently.

The group of employees claim under the law employees are supposed to be
given ample time to find new jobs or training programs in the event of
a mass layoff or plant closing.

This action, if filed, will be the second labor-related suit lodged
against the company by its former employees.

More than 20 other former employees brought a case against the web
designer and consulting shop last month for unpaid severance.

The workers, who were dismissed in November 2000, claim they are
entitled to at least two weeks of severance pay and compensation for
vacation time, commissions and bonuses they earned.

OneSoft did not provide two months' written notice of the impending
layoffs or offer pay in lieu of notice, as required by federal law,
according to court papers filed by the former employees, Newsbyte said.


PALM INC.: Cauley Geller Brings Securities Suit In S.D. New York
----------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP began a class action last week in
the United States District Court for the Southern District of New York
on behalf of purchasers of Palm Inc. (Nasdaq: PALM) securities during
the period between March 1, 2000 and December 6, 2000, inclusive.

The complaint charges the following 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:

     (i) Palm,

    (ii) Goldman Sachs & Co.,

   (iii) Morgan Stanley & Co. Inc.,

    (iv) Merrill Lynch, Pierce Fenner & Smith Inc.,

     (v) FleetBoston Robertson Stephens,

    (vi) Salomon Smith Barney Inc.,

   (vii) Carl J. Yankowski, and

  (viii) Judy Bruner.

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


RAYTHEON CORPORATION: Kirby McInerney Files Securities Suit In Idaho
--------------------------------------------------------------------
Kirby McInerney & Squire, LLP commenced a class action lawsuit in the
United States District Court for the District of Idaho against Raytheon
Corporation and certain of its officers on behalf of all purchasers of
Washington Group International, Inc., (NYSE: WNG) securities --
including common stock and 11% senior notes -- during the period from
April 17, 2000 through March 1, 2001.

The action charges Raytheon Corp. and certain of its officers with
violations of Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934 by reason of material misrepresentations and omissions.

The complaint alleges that Raytheon misrepresented the financial
condition of its Raytheon Engineers & Constructors division in order to
sell this division to Washington Group, formerly known as Morrison
Knudsen Corporation, 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.

The complaint further alleges that throughout the Class Period,
defendants issued misleading financial statements for RE&C that failed
to disclose massive cost overruns of approximately $700 million that
existed at the time of the sale transaction.

On March 2, 2001, Washington Group made the 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
Washington Group 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 noteholders.

Ultimately, these cash shortages forced Washington Group to seek
protection under the bankruptcy laws on March 14, 2001.

For more information, contact: KIRBY McINERNEY & SQUIRE, LLP through
Ira M. Press, Esq. or Shan Anwar by Mail: 830 Third Avenue, 10th Floor,
New York, New York 10022 by Phone: (212) 317-2300 or (888) 529-4787
(toll free) or by E-Mail: sanwar@kmslaw.com


SAFEGUARD SCIENTIFICS: Beatie Osborn Files Securities Suit In E.D. PA
---------------------------------------------------------------------
Beatie And Osborn LLP filed early last week a class action in the
United States District Court, Eastern District of Pennsylvania on
behalf of all shareholders of Safeguard Scientifics, Inc. (NYSE: SFE)
who purchased Safeguard's common stock between December 1, 1999 and
December 5, 2000.

The named plaintiff alleges that defendants Safeguard and Warren V.
Musser violated the federal securities laws during the class period.

Specifically, the complaint alleges that defendants failed to disclose
the fact that defendant Musser had pledged substantially all of his
Safeguard shares as collateral to secure margin trading in his personal
brokerage accounts.

When defendant Musser's investments declined in value, he received
margin calls from his brokers and was forced to liquidate his Safeguard
stock, causing the price of Safeguard's shares to decline
significantly.

Plaintiff alleges that defendants' failure to disclose the pledge,
coupled with their subsequent efforts to conceal the consequences of
several margin calls, violated the federal securities laws.

For more details, contact: Beatie And Osborn LLP through Eduard
Korsinsky, Esq. or Ben Coleman, Legal Assistant by Mail: 521 Fifth
Avenue, 34th Floor, New York, New York 10175 by Phone: 800-891-6305
(toll free) or 212-888-9000 by Fax: 212-888-9664 or by E-mail:
clientrelations@bandolaw.com

                    
SARA LEE: Racial Discrimination Suits In Philadelphia Plant Increase
--------------------------------------------------------------------
Racial discrimination suits have increased dramatically over the last
three weeks against Sara Lee Corp. filed by employees at its
Philadelphia hot dog plant, the Philadelphia Business Journal reported.

According to the report, there are now 23 separate suits that are
related to a 1999 case that failed to gain class action certification
in May this year.  

And the number is still growing, the report said.

That 1999 case, which is currently ongoing, was denied certification
due to an absence of a common claim by the group of plaintiffs.

The present suits are pending in the U.S. District Court against Sara
Lee and Hygrade Food Products Corp, a Detroit-based subsidiary that
operates the Philadelphia plant.

Among the allegations of the plaintiffs is the delegation of menial
jobs within the facility to African-American workers, harassment,
subjection to racial epithets and denial of promotions to less labor-
intensive jobs.  

In addition, the employees also claim that their supervisors have
allegedly ordered white hats that resemble Ku Klux Klan hoods.  The
hats are supposed to prevent hair from entering food.


SOUTH KOREA: Gov't Pushes For Class Action In Transparency Issues
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Deputy Prime Minister Jin Nyum has announced adoption of two public
policy positions reflecting the government's resolve that transparency
in corporate governance should become integral to the way a corporation
conducts its business, according to a recent report in the Asia Pulse.

First, the government will offer incentives in credit ratings and loans
to companies that maintain transparency in corporate governance; and,
at the other end of the spectrum, "the government will strengthen
sanctions against firms that put up false public notices or put
together misleading financial statements."

The newly authorized class actions, also recently announced, are
themselves closely linked to the government's encouragement of
transparency in corporate governance; since these newly-allowed class
actions may be filed only in cases related to transparency of
accounting practices at listed companies.


VALUE AMERICA: Cauley Geller Commences Securities Suit In S.D. NY
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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 Value America, Inc. (Nasdaq: VUSQE) common stock
during the period between April 8, 1999 and December 6, 2000,
inclusive.

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 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 (toll free) or E-mail: info@classlawyer.com


* International Franchise Association Backs Class Action Reforms Law
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The International Franchise Association (IFA) announced last week its
support of an effort that could curb class action lawsuit abuse and
return fairness to the civil justice system.

IFA joined other business associations in welcoming the introduction of
the Class Action Fairness Act, sponsored in the U.S. House by Reps. Bob
Goodlatte (R-Va.) and Rick Boucher (D-Va.).

IFA is the world's oldest and largest organization representing
franchising. It is the only group that represents both franchisees and
franchisers.

IFA Chair and Mail Boxes Etc. President and CEO James H. Amos Jr.
hailed the legislation, acknowledging the implications for franchised
businesses.

"Attorneys may go after franchises in class action suits thinking they
are digging into deep corporate pockets, when in fact they are
threatening the stability of a network of perhaps thousands of
individually-owned and operated small businesses," Amos said.

One of the primary goals of the legislation is to allow large, multi-
state class action suits to be moved to federal court to ease
overburdened state courts and to ensure that uniform standards are
applied to interstate class action litigation.

Allan Tanenbaum, senior vice president and general counsel of Atlanta-
based AFC Enterprises (Popeye's, Cinnabon, and Church's Chicken) said,
"Franchise systems like ours operate in multiple jurisdictions and are
subject to disparate laws. No one is suggesting denial of access-only
that we need fairness and predictability in our legal standards."

Last year the U.S. House of Representatives passed a similar bill.
Proponents are hopeful of passage again this year. Introduction of a
bill in the U.S. Senate is also being considered.


                              *********

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.

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