CAR_Public/010709.mbx              C L A S S   A C T I O N   R E P O R T E R

               Monday, July 9 2001, Vol. 3, No. 132

                              Headlines


AETHER SYSTEMS: Milberg Weiss Files Securities Suit In S.D. New York
AGENCY.COM: Pushes Through With Merger, But Inks Settlement Deal
ARYT INDUSTRIES: Israeli Court Sacks Class Status, OKs Derivative Suit
CACHEFLOW INC.: Marc Henzel Commences Securities Suit In S.D. New York
CAPTARIS INC.: Dismissal Of Securities Suit A Vindication For Company

CHRONIMED INC.: Lockridge Grindal Begins Securities Suit In Minnesota
DETROIT CITY: Faces Suit Over Car Seizures In Prostitution Stings
DTM CORPORATION: Tender Offer Extended Anew To Finalize Settlement
ETOYS INC.: Schiffrin Barroway Files Securities Suit In S.D. New York
EXPEDIA INC.: Marc Henzel Commences Securities Suit In S.D. New York

HARLEY-DAVIDSON: Sued In Milwaukee For Defective Engines On '99 Model
INFOSPACE INC.: Marc Henzel Files Securities Suit In W.D Washington
INTERSHOP COMMUNICATIONS: Faces Securities Suit In N.D. California
INTERSHOP COMMUNICATIONS: Effects Of NY Securities Suit Uncertain
NETWORK PLUS: Cauley Geller Files Securities Suit In S.D. New York

NEW FOCUS: Milberg Weiss Commences Securities Suit In S.D. New York
NEW YORK: Beleaguered Newspaper Faces More Lawsuits From Writers
NPC INTERNATIONAL: Settlement Of Suits Won't Have Adverse Effects
ON SEMICONDUCTOR: Milberg Weiss Files Securities Suit In S.D. New York
PEREGRINE SYSTEMS: Awaits Court Approval On $2.25M Settlement Package

PROTON ENERGY: Schiffrin Barroway Files Securities Suit In S.D. NY
RETEK INC.: Marc Henzel Begins Securities Suit In S.D. New York
RYAN SEARLE: Prominent Real Estate Broker Charged For Illegal Scheme
SONERA CORPORATION: Turkey-based Partner Has Yet To Answer IPO Suit
SYCAMORE NETWORKS: Schiffrin Barroway Files Securities Suit In S.D. NY

TIVO INC.: Marc Henzel Begins Securities Suit In S.D. New York
TOBACCO LITIGATION: Federal Court Denies Class Status In Four NV Suits
U-HAUL INTERNATIONAL: Settles Overtime Pay Suit Filed By California GMs
WELLMARK BLUE: $950,000 Offer To Iowa Insurance Customers Approved
Z-TEL TECHNOLOGIES: Milberg Weiss Begins Securities Suit In S.D. NY


                              *********


AETHER SYSTEMS: Milberg Weiss Files 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 Aether Systems,
Inc. (NASDAQ: AETH) between October 20, 1999 and December 6, 2000,
inclusive.

The action is pending in the United States District Court, Southern
District of New York against the following defendants:

     (i) Aether Systems,

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

   (iii) BancBoston Robertson Stephens, Inc.,

    (iv) Morgan Stanley & Co. Incorporated,

     (v) David S. Oros and

    (vi0 David C. Reymann.

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: Steven G. Schulman or Samuel H. Rudman
by Mails: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: (800) 320-5081 by Email: aethersystemscase@milbergNY.com or
visit the firm's Website: http://www.milberg.com


AGENCY.COM: Pushes Through With Merger, But Inks Settlement Deal
----------------------------------------------------------------
Agency.com announced recently that it has managed to complete its
merger with a wholly owned subsidiary of Seneca Investments LLC,
despite a pending shareholders suits enjoining the move.

However, it informed the Securities and Exchange Commission recently
that it intends to settle the suit and has in fact reached an agreement
in principle to do just that.

According to the Company's latest regulatory filing, the securities
class actions will be dismissed with prejudice.

The Company claims to be a leading e-business builder in global
markets.

Its services include strategy, branding and technology services that
help its clients build and grow their interactive business across
multiple digital channels - the Web, wireless, and interactive
television.


ARYT INDUSTRIES: Israeli Court Sacks Class Status, OKs Derivative Suit
----------------------------------------------------------------------
Aryt Industries Ltd. recently reported to the Securities and Exchange
Commission that a Tel Aviv District Court in Israel has thrown out a
motion for class certification in a suit filed against the Company.

However, its classification as a shareholders derivative suit is
currently being contested by the Company, along with other defendants,
in the Israeli Supreme Court.

No decision has been rendered yet, the Company said.

The complaint was filed in November 1999 by shareholders alleging that
the following defendants conspired to take advantage of Aryt and its
public shareholders for their personal benefit, by assigning certain of
their rights to Telegate Ltd. without receiving adequate consideration:

     (i) Channon Associates Ltd.

    (ii) Gilad Shabtai

   (iii) Yoram Oron

In addition, the plaintiffs allege that the Defendants improperly
diluted, or caused the dilution of, the value of Aryt by entering into,
or approving, the private placement with Altschuler Sham Ltd. since
plaintiffs allege that they offered to purchase such securities at a
price higher than that paid by ASL.

Aside from seeking class action status, the plaintiffs are also seeking
to have the relevant Defendants turn over all Telegate shares held by
them and to have the ASL share issuance declared void along with
certain other remedies.

The Company denies such allegations and intends to vigorously defend
against the suit.


CACHEFLOW INC.: Marc Henzel Commences Securities Suit In S.D. New York
----------------------------------------------------------------------
The law firm of Marc S. Henzel filed a securities class action lawsuit
in the United States District Court for the Southern District of New
York, on behalf all persons who acquired CacheFlow Inc. (Nasdaq: CFLO)
securities between November 18, 1999 and December 6, 2000.

Named as defendants in the complaint are CacheFlow, and the following
executive officers of CacheFlow: Brian M. NeSmith and Michael J.
Johnson.

The complaint also names as a defendant Credit Suisse First Boston
Corp.

The complaint charges defendants with violations of Sections 10(b) and
20(a) of the Securities 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 CacheFlow IPO.

For further details, 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.


CAPTARIS INC.: Dismissal Of Securities Suit A Vindication For Company
---------------------------------------------------------------------
Captaris, Inc. (Nasdaq:CAPA) announced last week that it has achieved a
complete victory in the class action securities litigation filed
against the company and certain of its officers and directors in March
2000.

Judge Robert S. Lasnik of the United States District Court has granted
the company's motion to dismiss all securities claims and has entered a
judgment in favor of all defendants and against the plaintiffs on all
of plaintiffs' claims.

Richard J. LaPorte, Captaris chairman of the board of directors,
stated, "I am gratified by the court's decision. From the initial
filing of the case, we stood firmly by our convictions in vigorously
defending the claims, and we refused to consider settlement. After more
than a year of litigation, we have now received total vindication based
on the merits of our position."

Dan Dunne of the law firm Heller Ehrman, attorneys for Captaris in the
lawsuit, observed that plaintiffs had previously been given two
opportunities to cure defects in their claims.

"After their third attempt, the court concluded that plaintiffs lacked
a factual basis to support their assertion that officers had
information at odds with their public statements, and ruled in favor of
Captaris," the lawyer said.

The trial court has now dismissed all claims against the defendants.
The plaintiffs have 30 days to file a notice of appeal.

Captaris claims to be a leading provider of unified communications and
mobile business solutions that allow companies to improve business
communications with customers, partners and employees.


CHRONIMED INC.: Lockridge Grindal Begins Securities Suit In Minnesota
---------------------------------------------------------------------
Lockridge Grindal Nauen P.L.L.P. filed a class action lawsuit against
Chronimed, Inc. (Nasdaq:CHMDE, formerly CHMD) and certain of its senior
officers for violations of the United States securities.

The suit is pending in the United States District Court for the
District of Minnesota. The lawsuit was brought on behalf of all persons
who purchased Chronimed securities on the open market during a period
October 27, 1999 through June 13, 2001, inclusive.

The complaint alleges that defendants' publicly disclosed financial
results for the fiscal year 2000, and the first three quarters of
fiscal 2001, were materially false and misleading.

For further details, contact: Karen M. Hanson, Esq. of Lockridge
Grindal Nauen P.L.L.P. by Mail: 100 Washington Avenue South, Suite
2200, Minneapolis, MN 55401 by Phone: (612) 339-6900 or by E-mail:
hansokm@locklaw.com


DETROIT CITY: Faces Suit Over Car Seizures In Prostitution Stings
-----------------------------------------------------------------
The cities of Detroit and Inkster, as well as Wayne County Prosecutor
Michael Duggan and Detroit Police Chief Benny Napoleon, are being sued
in U.S. District Court in Detroit by 10 people whose cars were seized
in prostitution stings conducted since the beginning of the year,
according to a recent Associated Press report.

Majed Moughni, a Dearborn attorney, is seeking class action status for
the federal lawsuit, which claims, among other things, that the 10
plaintiffs are victims of an overzealous prosecutor, who has used
hundreds of thousands of dollars from auto forfeitures to fund raises
for his attorneys.  

The plaintiffs-- some of whom were not even present when their vehicles
allegedly were used to solicit sex -- all have had their vehicles
seized.  

Some paid $900 to reclaim their cars; others are waiting for court
hearings.  

With towing and storage, costs to reclaim a seized vehicle usually rise
above $1000.

Moughni said, according to the report, the prosecutor's office had
violated his clients' civil rights by threatening a court hearing to
coerce payment of redemption fees on the seized vehicles.  

But when the plaintiffs sought hearings, the prosecutor's office failed
to notify them of dates.

Chief Benny Napoleon, however, believes his actions were good police
work.

Moughni, the plaintiffs' attorney, sued the county separately to
reclaim his car after his brother-in-law surrendered it for allegedly
propositioning a Detroit officer posing as a prostitute.


DTM CORPORATION: Tender Offer Extended Anew To Finalize Settlement
------------------------------------------------------------------
3D Systems Corp. (Nasdaq:TDSC) and DTM Corp. (Nasdaq:DTMC) announced
last week a deadline extension of the tender offer for all the
outstanding shares of common stock of DTM until midnight Eastern
Daylight Time on Tuesday, July 24, 2001, in order to continue
negotiations for purposes of completing a settlement agreement with the
Department of Justice.

The tender offer had been scheduled to expire at midnight Eastern
Daylight Time, on Tuesday, July 10, 2001. It was re-scheduled to June
18 before this latest notice.

"We are optimistic that a settlement with the Justice Department can be
reached in the following weeks that will permit the tender offer for
DTM to proceed to completion," said Brian K. Service, 3D Systems'
president and chief executive officer.

"We are encouraged by the settlement discussions that are taking place
and remain committed to working with 3D Systems to complete the
transaction," said John S. Murchison, III, DTM's president and CEO.

On June 18, 3D Systems and DTM agreed to extend the tender offer in
part to pursue a settlement of the civil action filed by the Antitrust
Division of the U.S. Department of Justice on June 6, 2001.


ETOYS INC.: Schiffrin Barroway Files Securities 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 eToys, Inc. (Nasdaq: ETYSQ)
from May 19, 1999 through December 6, 2000, inclusive.

For more information, 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

             
EXPEDIA INC.: Marc Henzel Commences Securities Suit In S.D. New York
--------------------------------------------------------------------
The law firm of Marc S. Henzel filed a class action lawsuit in the U.S.
District Court for the Southern District of New York on behalf of all
persons and entities who purchased, converted, exchanged or otherwise
acquired the common stock of Expedia, Inc. (Nasdaq: EXPE) between
November 9, 1999 and October 12, 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.

For more 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.


HARLEY-DAVIDSON: Sued In Milwaukee For Defective Engines On '99 Model
---------------------------------------------------------------------
A lawsuit filed recently in Milwaukee County Circuit Court asserts that
Harley-Davidson Motor Co. knew or should have known that the cam
bearings for motorcycles manufactured in 1999 and early 2000 were
defective, according to a recent Associated Press account.  

Attorney for the lawsuit, Ted Warshafsky of Milwaukee, said he will
seek to get the case certified as a class action so that more
plaintiffs can be added to the case.

The lawsuit, which was filed by Steven Tietsworth of San Diego, a
Harley owner, and concerns motorcycles equipped with Twin Cam 88 and
Twin Cam 88B engines, claims the cam problem can cause extensive engine
damage and lead to injuries.  

Tietsworth did not, however, allege that he was injured.

Harley changed the cam bearing design in early 2000 and later that year
told dealers and service departments that kits were available to repair
the original cams, according to the lawsuit.  

However, said Warshafsky, Harley did not recall these original cams,
and the only notice given to owners were letters sent in January to
some customers saying that there was a cam problem in a small number of
motorcycles.

A Harley spokesman said the company had not seen the lawsuit yet and
had no immediate comment.
  
   
INFOSPACE INC.: Marc Henzel Files Securities Suit In W.D Washington
-------------------------------------------------------------------
The law firm of Marc S. Henzel filed a class action in the United
States District Court for the Western District of Washington on behalf
of all purchasers of InfoSpace, Inc. (Nasdaq: INSP) 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.

For more details, 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.


INTERSHOP COMMUNICATIONS: Faces Securities Suit In N.D. California
------------------------------------------------------------------
Intershop Communications Aktiengesellschaft revealed recently that a
securities class action complaint was filed against it in the U.S.
District Court for the Northern District of California.

In its latest regulatory filing with SEC, the company said the case
also names as defendants the company's management board members and
certain other officers.

The suit alleges that the defendants made material misrepresentations
and omissions of material facts concerning the Company's business
performance.

The complaint seeks unspecified amount of damages.

The Company believes there is no merit to the case and intends to
defend the case vigorously.
        

INTERSHOP COMMUNICATIONS: Effects Of NY Securities Suit Uncertain
-----------------------------------------------------------------
A securities class action complaint in relation to an IPO in September
last year was filed against Intershop Communications
Aktiengesellschaft.

The suit has been pending in the U.S. District Court for the Southern
District of New York since March 7, 2001, the Company revealed
recently.

Named as defendants are the company's management board members and the
underwriters of the public offering.

The complaint alleges that the defendants issued a materially false and
misleading registration statement in conjunction with its September
2000 public offering.

The Company believes there is no merit to the case and intends to
defend the case vigorously.

There can be no assurance that the Company will be able to prevail in
the lawsuit, or that the pendency of the lawsuit will not adversely
affect the Company's operations.


NETWORK PLUS: Cauley Geller Files Securities Suit In S.D. New York
------------------------------------------------------------------
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 Network Plus Corp. (Nasdaq: NPLS) securities during
the period between June 30, 1999 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) Network Plus,

    (ii) Goldman Sachs & Co.,

   (iii) Bear Stearns & Co., Inc.,

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

     (v) Lehman Brothers, Inc.,

    (vi) Salomon Smith Barney Inc.,

   (vii) Robert T. Hale, Jr.,

  (viii) James J. Crowley, and

    (ix) George Alex

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


NEW FOCUS: Milberg Weiss Commences Securities Suit In S.D. New York
-------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP filed late last week a class
action lawsuit, on behalf of purchasers of the securities of New Focus,
Inc. (NASDAQ: NUFO) between May 18, 2000 and December 6, 2000,
inclusive.

The action is pending in the United States District Court, Southern
District of New York against defendants New Focus, Credit Suisse First
Boston Corporation, FleetBoston Robertson Stephens, Inc., Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Kenneth E. Westrick and
William L. Potts, Jr.

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: 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 Email: newfocuscase@milbergNY.com or visit the
firm's Website: http://www.milberg.com


NEW YORK: Beleaguered Newspaper Faces More Lawsuits From Writers
----------------------------------------------------------------
New York Times faces yet another class action lawsuit, this time from
the Authors Guild and a pair of freelance writers.

And to make matters worse, the National Writers Union are also
preparing another to keep the beleaguered newspaper busy in court.

The Authors Guild filed its suit Tuesday last week, claiming copyright
infringement against the newspaper, Newsbyte reported recently.

The lawsuit accused the newspaper of using works in its electronic
databases or in the databases of its partners without the permission of
its writers.

Accordingly, the writers gave authorization only for the print edition.

Meanwhile, the National Writers Union had planned to file a lawsuit of
its own last Friday against Times.  It could not be ascertained,
though, if it had pushed through as scheduled.

The group says the lawsuit is fueled by the newspaper's new freelance
policy to blacklist writers who do not agree to relinquish future
electronic sales of their pieces.

Following a landmark decision by the U.S. Supreme Court two weeks ago,
the newspaper is planning to erase more than 115,000 freelance articles
from its database to avoid payment and to retroactively extend its new
freelance policy.

The high court had ruled in the Tasini v. New York Times that the
newspaper ought to pay freelance writers for their articles used in its
electronic edition.

The union said the purging of the articles is an inappropriate response
by the Times since the court clearly ordered payment for them, not
there deletion to escape payment.

Newsbyte said the Authors Guild and some freelance writers already have
an ongoing class action suit against nine database companies over their
use of freelance articles.


NPC INTERNATIONAL: Settlement Of Suits Won't Have Adverse Effects
-----------------------------------------------------------------
NPC International, Inc. recently informed the Securities and Exchange
Commission that it has reached in principle an agreement to settle the
three securities suits filed against it.

These suits were filed in December last year in relation to the
proposed merger between the company and Mergeco Inc.

The plaintiffs allege, among other things, that:

     (1) the offer by Mr. O. Gene Bicknell, by and through Mergeco, to
         purchase each outstanding share of NPC common stock for $11.40
         in cash without interest was grossly unfair to NPC's public
         stockholders,

     (2) the directors of NPC breached their fiduciary duties to the
         NPC stockholders, and

     (3) the offer was advanced through unfair procedures.

The settlement ironed out by the parties last May encouraged both sides
to:

     (i) attempt in good faith to settle all claims;

    (ii) pay fees and expenses of plaintiffs' counsel and experts of
         $250,000 in the aggregate following plaintiffs' confirmatory
         discovery, if any;

   (iii) execute and seek court approval of a definitive settlement
         agreement and certain other terms and conditions without any
         admission of any breach of fiduciary duty or other wrongdoing
         on the part of any of the defendants.

NPC anticipates that any settlement of this litigation will not have a
material adverse effect on NPC's financial condition, results of
operations or liquidity.


ON SEMICONDUCTOR: Milberg Weiss Files Securities Suit In S.D. New York
----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP filed late last week a class
action lawsuit, on behalf of purchasers of the securities of ON
Semiconductor Corporation (F/K/A SCG Holding Corporation) (NASDAQ:
ONNN) between April 27, 2000 and December 6, 2000, inclusive.

The action is pending in the United States District Court, Southern
District of New York against defendants ON Semiconductor, Morgan
Stanley & Co., Incorporated, Lehman Brothers, Inc., FleetBoston
Robertson Stephens, Inc., Salomon Smith Barney, Inc., Steve Hanson,
Dario Sacomani and Curtis J. Crawford.

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 April 27, 2000, ON Semiconductor commenced an initial
public offering of 30,000,000 of its shares of common stock at an
offering price of $16 per share.

In connection therewith, ON Semiconductor 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) Morgan Stanley, Lehman, Robertson Stephens and Smith Barney
         had solicited and received excessive and undisclosed
         commissions from certain investors in exchange for which
         Morgan Stanley, Lehman, Robertson Stephens and Smith Barney
         allocated to those investors material portions of the
         restricted number of ON Semiconductor shares issued in
         connection with the ON Semiconductor IPO; and

    (ii) Morgan Stanley, Lehman, Robertson Stephens and Smith Barney
         had entered into agreements with customers whereby Morgan
         Stanley, Lehman, Robertson Stephens and Smith Barney agreed to
         allocate ON Semiconductor shares to those customers in the ON
         Semiconductor IPO in exchange for which the customers agreed
         to purchase additional ON Semiconductor shares in the
         aftermarket at pre-determined prices.

As alleged in the complaint, the SEC is investigating underwriting
practices in connection with several other initial public offerings.

For more information, contact: 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 Email: ONSemiconductorcase@milbergNY.com or
visit the firm's Website: http://www.milberg.com


PEREGRINE SYSTEMS: Awaits Court Approval On $2.25M Settlement Package
---------------------------------------------------------------------
Court approval is just needed to finalize a settlement package
amounting to $2.25 million that will put to rest a securities suit
pending against a latest acquisition, Peregrine Systems Inc. announced
recently.

In a regulatory filing with the Securities and Exchange Commission, the
Company recently said the settlement pack was offered in October last
year with the former shareholders of Harbinger Corporation.

The Company acquired Harbinger in June last year.  

The securities suit was filed in September 1999 against Harbinger and
some of its then current and former officers and directors in the
United States District Court for the Northern District of Georgia.

The complaint alleges that the defendants misrepresented or omitted
material facts in violation of federal securities laws.

The suit was expanded upon the allegations of the initial complaint by,
among other things, alleging accounting improprieties.

Harbinger did not maintain directors' and officers' liability insurance
during this period. As a result, Peregrine is not insured with respect
to any potential liability of Harbinger or any officer or director of
Harbinger.

The Company said that, should any plaintiff decides to opt out of the
settlement and continue litigation, its financial condition and results
of operations could be materially and adversely affected.


PROTON ENERGY: 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 Proton Energy Systems, Inc.
(Nasdaq: PRTN) from September 28, 2000 through December 6, 2000,
inclusive.

For additional information, 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 Mail: 1-888-299-7706 (toll
free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com


RETEK INC.: Marc Henzel Begins Securities Suit In S.D. New York
---------------------------------------------------------------
The law firm of Marc S. Henzel filed a securities class action lawsuit
in the United States District Court for the Southern District of New
York on behalf all persons who acquired Retek, Inc. (Nasdaq: RETK)
securities between November 18, 1999 and December 6, 2000.

Also included as defendants in the complaint are Retek and the
following executive officers of Retek: John Buchanan, Gregory A.
Effertz, and Gordon Masson.

The complaint also names as defendants Credit Suisse First Boston
Corporation, BancBoston Robertson Stephens Inc., and U.S. Bancorp Piper
Jaffray, Inc., co-lead underwriters of the Company's initial public
offering of 5,500,000 shares of common stock at $15.00 per share on
November 18, 1999.

The complaint charges defendants with violation of Sections 10(b) and
20(a) 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 more 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.


RYAN SEARLE: Prominent Real Estate Broker Charged For Illegal Scheme
--------------------------------------------------------------------
A class action filed recently in Denver District Court charged Ryan
Searle, a prominent, licensed real estate broker and four family
members (his wife, his father and two other family members) with
conspiracy to deprive dozens of people facing foreclosures of their
homeownership and of "tricking" families into signing away their homes,
the Associated Press reported.

The suit was brought on behalf of representative plaintiffs Julie Ann
Bates and Patrick Shotwell of Wheat Ridge, a couple evicted from their
home four months after signing a lease agreement with Ryan Searle, and
on behalf of Denver resident Tanya Guzman, who signed documents making
her a tenant in the home she owned.  

John Head, the lawyer who brought the suit, said that he is also
seeking damages on behalf of more than 100 other homeowners in the
Denver area who deeded their homes to Searle family members, who
offered to "cure" their foreclosures.

Searle created the business offering to pay the overdue bills of
homeowners threatened with foreclosures.

In return, he took a deed to their homes and asked them to sign a
rental agreement that gave them one year to buy their houses back.  

Searle described his "cure your mortgage" offer, in an interview with
The Denver Post, in December 2000, as the best option available to
families who would otherwise lose their homes in foreclosure sales.  

He said he expected tenants in his program to become homeowners again.

The suit also accuses Searle and his family members of recording forged
documents, making loans without a license, charging usurious interest
rates and attempting to interfere with a state attorney general's
investigation of their businesses.

Jeffrey Lane, a lawyer representing Ryan Searle, said that neither he
nor his client would comment on the suit.


SONERA CORPORATION: Turkey-based Partner Has Yet To Answer IPO Suit
-------------------------------------------------------------------
Sonera Corporation reported to the Securities and Exchange Commission
recently that Turkcell Iletisim Hizmetleri A.S. has not yet filed its
response to the securities suit filed against it in November last year.

According to the company, which owns 36.3 percent of Turkcell, the
Turkey-based mobile telecommunications carrier, however, intends to
mount a vigorous defense.

Last March, the U.S. District Court for the Southern District of New
York consolidated the securities suit filed by individuals and entities
that purchased Turkcell's American Depository Shares.

According to the complaints, these shares were offered in an IPO in
which a prospectus for the said purposed had contained false and
misleading statements regarding Turkcell's "churn rate" and omitted
material financial information.

The plaintiffs sought to recover damages pursuant to sections 11 and 15
of the Securities Act of 1933 for the difference between the prices
each purchaser paid for the shares and either the price of the shares
at the time the complaint was filed or the price at which such shares
were sold if sold prior to November 22, 2000.

"At this point in the litigation it is premature to estimate Turkcell's
potential liability, if any, from the class action lawsuits," the
Company said in its SEC report.


SYCAMORE NETWORKS: Schiffrin Barroway Files Securities Suit In S.D. NY
----------------------------------------------------------------------
Schiffrin & Barroway, Inc. files 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 Sycamore Networks, Inc.
(Nasdaq: SCMR) from October 22, 1999 through December 6, 2000,
inclusive.

For additional information, 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


TIVO INC.: Marc Henzel Begins Securities Suit In S.D. New York
--------------------------------------------------------------
The law firm of Marc S. Henzel filed a securities class action lawsuit
in the United States District Court for the Southern District of New
York on behalf all persons who acquired TiVo, Inc. (Nasdaq: TIVO)
securities between September 30, 1999 and December 6, 2000.

Also named as defendants in the complaint are TiVo and the following
executive officers of TiVo: Michael Ramsay and David H. Courtney.

The complaint also names as defendants Credit Suisse First Boston
Corporation, BancBoston Robertson Stephens Inc., Thomas Weisel Partners
LLC, and Allen & Company, Inc., co-lead underwriters of the Company's
initial public offering of 5,500,000 shares of common stock at $16.00
per share on September 30, 1999.

The complaint charges defendants with violation of Sections 10(b) and
20(a) 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 additional details, 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.


TOBACCO LITIGATION: Federal Court Denies Class Status In Four NV Suits
----------------------------------------------------------------------
A federal judge has denied class action certification in four separate
lawsuits that had been filed against R.J. Reynolds Tobacco Company and
other members of the tobacco industry in the U.S. District Court for
the District of Nevada.

With this decision, 14 federal courts now have unanimously rejected
these types of tobacco class actions.

The four Nevada cases were consolidated for purposes of the class
certification proceedings.

One case (Selcer) involved smokers. The other three (Badillo, DiEnno
and Christensen) were filed on behalf of non-smoking casino workers
exposed to secondhand smoke. Three of the cases expressly sought
medical monitoring relief.

In denying certification, U.S. District Judge Philip M. Pro recognized
that, "... the claims advanced by the representative Plaintiffs as well
as those of the proposed members of the Plaintiff classes are replete
with individual issues such as causation, comparative fault, assumption
of risk, product identification, statute of limitations and damages..."

In the conclusion of its June 29 opinion, the court noted: "In sum, the
Court finds that individual determinations would likely predominate in
these enormously large number of cases, thereby defeating the purpose
of a class action in maintaining judicial economy."

"The court's decision is very sensible, and consistent with the facts
of the cases and the law," said Daniel W. Donahue, senior vice
president and deputy general counsel for Reynolds Tobacco.

"Tobacco class actions simply are not appropriate because they always
involve a wide variety of individuals whose legal claims depend on each
individual's unique facts and circumstances," he said.

"This decision and many other similar rulings in both state and federal
courts reflect the consensus that these kinds of class actions should
not be certified," he added.

The four cases in which class action status was denied are:

     (i) Badillo v. The American Tobacco Company;

    (ii) Dienno v. Liggett Group;

   (iii) Christensen v. Philip Morris Companies, Inc.; and

    (iv) Selcer v. R.J. Reynolds Tobacco Company.

Other defendants in the cases included Philip Morris Inc., Brown &
Williamson Tobacco Corporation, Lorillard Tobacco Company, American
Tobacco Company and the Liggett Group Inc.


U-HAUL INTERNATIONAL: Settles Overtime Pay Suit Filed By California GMs
-----------------------------------------------------------------------
U-Haul International, Inc. reported recently that it has opted to
settle a class suit filed by its former and current general managers
employed in California for $7.5 million.

The company said the settlement package received court approval last
May 22.  Accordingly, the class approval process will take between 60
and 120 days from the time of the Court approval.

This suit stems from a 1997 lawsuit filed by five current and/or former
Moving Center General Managers and one Area Field Manager.

The plaintiffs claim they were entitled to be compensated for all
overtime hours worked in excess of 40 hours per week.  

The plaintiffs sought class action status purporting to represent all
persons employed in California as either a salaried General Manager or
Area Field Manager since September 1993.  

In June 1999, Plaintiff's motion to certify the Area Field Managers as
a class was denied and the motion to certify the General Managers as a
class was granted.


WELLMARK BLUE: $950,000 Offer To Iowa Insurance Customers Approved
------------------------------------------------------------------
The settlement of a class action lawsuit against Wellmark Blue Cross
and Blue of Iowa has netted Louisa County, Iowa, two employees, some
other plaintiffs and their law firms $950,000, according to a recent
Associated Press report.  

Louisa County and the two employees, covered under the county's health
insurance plan, brought the suit on behalf of about 100 people before
District Judge John Linn.  

The defendant insurance company admits no wrongdoing in the settlement
filed in Des Moines County District Court.

The order issued by Judge Linn gives $283,883 to lawyers, with the rest
split among the plaintiffs, who, the lawsuit said, were harmed by the
way the defendant insurance company managed a "minimum premium" program
offered in Iowa since 1992.  

The two county employees, who served as class representatives, Jack
Estle and Jean Brauns will each receive an extra $500.  Louisa County
will get an extra $20,000 for serving as class representative.

Plaintiffs Louisa County and some of its employees sought refunds when
they discovered that, although Wellmark had negotiated reduced rates
with the majority of Iowa hospitals, those discounted rates were not
reflected on patients' bills.  

Buyers of minimum-premium plans were billed the hospitals' regular
rates, Judge Linn said.

Wellmark responded in a written statement that it had complied in full
with its contract obligations.  

And officials said that "Wellmark further maintains that the savings
arising out of its agreements with hospitals...have always been passed
through to the county and its other customers in a variety of ways,
including lower insurance premiums and administrative fees."

The company changed its method of sharing hospital savings with group
insurance customers in 1996.  

All those covered under such plans between 1992 and 1996 and their
employer sponsors are eligible for part of the settlement fund.  

Wellmark paid out $14 million in March 2000 to settle another class
action lawsuit brought by Lee County, which involved Wellmark's
administration of self-insurance funds.


Z-TEL TECHNOLOGIES: Milberg Weiss Begins 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 Z-Tel
Technologies Inc. (NASDAQ: ZTEL) between December 15, 1999 and December
6, 2000, inclusive.

The action alleges the following as defendants: Z-Tel, Credit Suisse
First Boston Corporation, Bear Stearns & Co. Incorporated, Merrill
Lynch, Pierce Fenner & Smith Incorporated, Salomon Smith Barney Inc.,
D. Gregory Smith and John M. Hutchens, and is pending in the United
States District Court, Southern District of New York.

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: 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 Email: ztelcase@milbergNY.com or visit the
firm's Website: http://www.milberg.com

                
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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
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Information contained herein is obtained from sources believed to be
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