/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/010719.mbx C L A S S A C T I O N R E P O R T E R Thursday, July 19 2001, Vol. 3, No. 140 Headlines AKBAR TANDJUNG: Trial Against Top Legislative Officials Postponed AGENCY.COM: Schiffrin & Barroway Files Securities Suit In S.D. New York ALASKA STATE: State Supreme Court Okays Suit Over Miller's Reach Fire AMERICAN EXPRESS: Awaits Final Court Approval Of Settlement Offer ATOFINA CHEMICALS: Charfoos Christensen Files Damage Suit In Michigan BLUE MARTINI: Bernstein Liebhard Begins Securities Suit In S.D. NY BRESNAN COMMUNICATIONS: Systems Subscribers Sue Over Late Fee Charges CALICO COMMERCE: Faces Securities Fraud Lawsuit In S.D. New York CALIPER TECHNOLOGIES: Milberg Weiss Files Securities Suit In S.D. NY CARNIVAL CORPORATION: Faces Securities Fraud Lawsuit In S.D. Florida CARNIVAL CORPORATION: Settles Two Damage Suits Over Port Charges CHARTER COMMUNICATIONS: Faces Suits In Four States Over Processing Fee CHINADOTCOM INC.: Marc Henzel Files Securities Suit In S.D. New York ETOYS INC.: Stull Stull Commences Securities Suit In S.D. New York EXODUS COMMUNICATIONS: Slotnick Shapiro Files Suit In N.D. California HORACE MANN: Settles Lawsuit Filed By Disability Policies Purchasers IMMUNE RESPONSE: Schiffrin & Barroway Files Suit In S.D. California INTERMEDIA CABLE: Customers Claim Late Fee Charges Unreasonable IRWIN FINANCIAL: Mortgage Corporation Subsidiary Faces Broker Fees Suit IRWIN UNION: Sued In Rhode Islands For Violating Truth In Lending Act KFC RESTAURANT: Spearfish, S.D. Branch Sued for Sexual Harassment LEHMAN BROTHERS:Bankrupt IPO Securities Issuers File Consolidated Suit MAY DEPARTMENT: Settles Lawsuit, Agrees To Improve Access To 430 Stores MONTANA STATE: Game Farm Owners Ask For Animal Shooting Ban Lift OWENS CORNING: Dwyer & Collora Files Amended Massachusetts Complaint REDBACK NETWORKS: Stull Stull Files Securities Suit In S.D. New York RHYTHMS NETCONNECTIONS: Milberg Weiss Begins S.D. NY Securities Suit ROBB MONTGOMERY: Plaintiffs Settles Suit Against Doctor for $3.4M SCHICK TECHNOLOGIES: Optimistic That Settlement Deal Will Be Approved SOUTH KOREA: Korean Business Groups Can't Agree On Possible Effects SYCAMORE NETWORKS: Marc Henzel Commences Securities Suit In S.D. NY TCI FALCON: Customers Cry Foul, Sue Over Assessment Of Late Fees TIBCO SOFTWARE: Faces Securities Fraud Lawsuit In S.D. New York TICKETS.COM: Schiffrin & Barroway Begins Securities Suit In S.D. NY TOWNE SERVICES: Court Grants Dismissal Motion, But Allows Suit To Go On TRAFFIX INC.: Awaits Court Approval of $3.2 Million Settlement Deal TREX COMPANY: Milberg Weiss Files Securities Suit In W.D. Virginia U.S. WIRELESS: Beleaguered Company Reports Losses of $32.7M This Year U.S. WIRELESS: Cauley Geller Files Securities Suit In N.D. California VULCAN MATERIALS: Chemical Releases At LA Plant Triggers Several Suits ********* AKBAR TANDJUNG: Trial Against Top Legislative Officials Postponed ----------------------------------------------------------------- The class action litigation by some Pasuruan, Madura and Surabaya people in East Java against House Speaker Akbar Tandjung and Chairman of the People's Consultative Assembly (MPR) Amien Rais has been postponed until July 16, the Financial Times reports. The first hearing was held by the Supreme Court in Jakarta last June 20, but was not attended by either Amien Rais or Akbar Tandjung in person. The Supreme Court hearing on the class action last month was reportedly presided over by Supreme Judge Artidjo Alkautsar, the Times said. Both House Speaker Akbar Tandjung and MPR Chairman Amien Rais were accused of violating the 1945 Constitution by smoothing the path of the DPR to issue memorandums of censure against President Abdurrahman Wahid and call on the MPR to hold a special session that could impeach the President. About 5,000 East Java people from the three towns, which are Wahid supporter strongholds, signed the class action litigation, the Times said. MPR Chairman Amien Rais was also charged with unbecoming behavior for joining a demonstration of anti-Wahid university students in Jakarta. AGENCY.COM: 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 Agency.com, Ltd. (Nasdaq: ACOM) from December 8, 1999 through December 6, 2000, inclusive. The suit names the following as defendants: Agency.com, Goldman Sachs & Co., Salomon Smith Barney, Inc., Chan Suh, Kyle Shannon, Kenneth Trush and Charles Dickson. 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 ALASKA STATE: State Supreme Court Okays Suit Over Miller's Reach Fire --------------------------------------------------------------------- The Alaska Supreme Court, in a recent ruling, has cleared the way for a group of homeowners to sue the State over alleged negligence in its handling of the 1996 Miller's Reach fire, according to a recent Associated Press report. The ruling also affects a similar class action lawsuit against the State. The Supreme Court's opinion reversed the action of the Superior Court, which dismissed the case in 1999, asserting the State's immunity from forest fire lawsuits and charges of negligence. The Supreme Court justices, however, held that the Department of Justice is not immune from lawsuits. The fire destroyed more than 37,000 acres and several hundred structures in the Big Lake area. The homeowners sued for damages, claiming the State Division of Forestry was negligent in fighting the fire. AMERICAN EXPRESS: Awaits Final Court Approval Of Settlement Offer ----------------------------------------------------------------- Only a final court approval is needed now to finally put to rest a class action lawsuit filed against American Express Financial Corporation and several other defendants in August last year. In a regulatory filing with the Securities and Exchange Commission, the Company revealed that oral arguments were heard by a federal court in Minnesota last March on plaintiffs' motion for final approval of the class action settlement. In that hearing, six motions to intervene were filed together with objections to the proposed deal. A decision by the U.S. District Court for the District of Minnesota on the matter is still pending. Aside from the Company, the following Companies were also name as defendants in the suit: (i) American Express Financial Advisors, (ii) American Centurion Life Assurance Company, (iii) American Enterprise Life Insurance Company, (iv) American Partners Life Insurance Company, (v) IDS Life Insurance Company and (vi) IDS Life Insurance Company of New York. The complaint put at issue various alleged sales practices and misrepresentations and allegations of violations of federal laws. ATOFINA CHEMICALS: Charfoos Christensen Files Damage Suit In Michigan --------------------------------------------------------------------- A class action suit was filed Monday against Atofina Chemicals following a deadly explosion over the weekend of a rail car carrying 25,000 gallons of methyl mercaptan, the Click on Detroit.com News reported. The suit was filed by Detroit law firm Charfoos and Christensen in federal district court, citing the possibility of dangerous chemicals being released into neighborhoods surrounding Atofina's Riverview facility. The explosion that killed three individuals and injured nine others happened early Saturday morning, when a rail car carrying the methyl mercaptan began leaking, caught fire then exploded. According to the report, the blast released dangerous levels of the chemical to the air, causing more than 2,000 people to be evacuated in Riverview and nearby Grosse Ile, Wyandotte and Trenton. Methyl mercaptan is a flammable substance used in pharmaceutical and agricultural products. Atofina Chemicals is a unit of Total Fina Elf, one of the world's largest integrated oil companies that explores for, develops, and produces crude oil and natural gas, refines and markets oil, and trades and transports both crude and finished products. The Atofina unit is a major chemical producer. BLUE MARTINI: Bernstein Liebhard Begins Securities Suit In S.D. NY ------------------------------------------------------------------ Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf of all persons who acquired Blue Martini, Inc. (NASDAQ: BLUE) securities between July 24, 2000 and July 9, 2001. The case is pending in the United States District Court for the Southern District of New York. Named as defendants in the complaint are Blue Martini and the following executive officers of Blue Martini: (i) James C. Gaither, (ii) A. Michael Spence, (iii) Andrew W. Verhalen, (iv) Edward H. Vick, and (v) William F. Zuendt. The complaint also names as defendants the following underwriters of Blue Martini's initial public offering: Goldman, Sachs & Co., Dain Rauscher Incorporated, Thomas Weisel Partners LLC and U.S. Bancorp Piper Jaffray Inc. The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. For more information, contact: Bernstein Liebhard & Lifshitz through its Shareholders Relations: Linda Flood by Mail: 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-1414 or by E-mail: BLUE@bernlieb.com BRESNAN COMMUNICATIONS: Systems Subscribers Sue Over Late Fee Charges --------------------------------------------------------------------- Several subscribers to the systems of Bresnan Communications Group, LLC have filed or threatened class action complaints, alleging the Company's practice of assessing an administrative fee to those whose payments are delinquent constitutes an invalid liquidated damage provision and a breach of contract, and violates local consumer protection statutes. Plaintiffs seek recovery of all late fees paid to the subject systems as a class purporting to consist of all subscribers who were assessed such fees during the applicable limitation period, plus attorneys' fees and costs. "Although it is possible that BCG may incur losses upon conclusion of these matters and the matters referred to above, an estimate of any loss or range of loss cannot presently be made," the Company said in its latest report to the Securities and Exchange Commission. CALICO COMMERCE: Faces Securities Fraud Lawsuit In S.D. New York ---------------------------------------------------------------- Calico Commerce, Inc. informed the Securities and Exchange Commission recently that beginning in March 2001, a number of complaints were filed in the Southern District of New York seeking an unspecified amount of damages on behalf of an alleged class of persons who purchased its shares common stock between the date of its initial public offering and the end of June 2000. The complaints name as defendants Calico and certain of its current and former directors and officers, and several underwriters of its initial public offering. Plaintiffs allege, among other things, that the Company's prospectus, incorporated in the Registration Statement on Form S-1 filed with the Securities and Exchange Commission, was materially false and misleading. This is accordingly due to the fact that it failed to disclose that the investment banks that underwrote Calico's initial public offering of securities and others received undisclosed and excessive brokerage commissions. In addition, the underwriters allegedly required investors to agree to buy shares of the Company's securities after the initial public offering was completed at predetermined prices as a precondition to obtaining initial public offering allocations. The plaintiffs further allege that these actions artificially inflated the price of the Company's common stock after the initial public offering. The plaintiffs attempt to state claims for violation of Sections 11, 12 and 15 of the Securities Act of 1933, and under Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated by the Securities Exchange Commission. On June 12, 2001, Judge Shira A. Scheindlin, United States District Judge for the Southern District of New York, ordered that: (a) all of the class action complaints be consolidated, (b) Cynthia Yuen Lai Hui, Marshall Hui and Paul Statham be appointed to serve as lead plaintiffs pursuant to the Private Securities Litigation Reform Act, and (c) the law firms of Bernstein Liebhard & Lifschitz LLP of New York and Schiffrin & Barroway of Bala Cynwood Pennsylvania be appointed and serve as lead counsel for plaintiffs pursuant to the PSLRA. Calico and the other defendants will be required to respond to a consolidated amended complaint at the end of August 2001. "While management intends to defend the actions vigorously, the litigation is in the preliminary stage, and we cannot predict the outcome with certainty," the Company said. "Should the outcome of the litigation be adverse to us, we could be required to pay significant monetary damages to the plaintiffs, which could harm our business," the Company added. CALIPER TECHNOLOGIES: Milberg Weiss Files Securities Suit In S.D. NY -------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit Tuesday on behalf of purchasers of the securities of Caliper Technologies Corporation (NASDAQ: CALP) between December 14, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants Caliper, Credit Suisse First Boston Corporation, Daniel L. Kisner, M.D., James L. Knighton and David V. Milligan, PhD. 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 E-mail: Calipercase@milbergNY.com or visit the firm's Website: www.milberg.com CARNIVAL CORPORATION: Faces Securities Fraud Lawsuit In S.D. Florida -------------------------------------------------------------------- World's largest cruise operator, Carnival Corporation, faces several actions filed in the U.S. District Court for the Southern District of Florida against four of its officers on behalf of a purported class of purchasers of its Common Stock. The plaintiffs are claiming that statements the Company made in public filings violate federal securities laws and seek unspecified compensatory damages, attorneys' fees and costs and expert fees. The action is currently proceeding. "We believe that we and our officers, as applicable, have meritorious defenses to these claims and, accordingly, we all intend to vigorously defend against all such claims," the Company said in a recent regulatory report to the Securities and Exchange Commission. CARNIVAL CORPORATION: Settles Two Damage Suits Over Port Charges ---------------------------------------------------------------- Several actions are currently pending against Carnival Corporation filed on behalf of purported classes of persons who paid port charges to Carnival Cruise Lines, Holland America Line and Costa Cruises. The suits allege that statements made in advertising and promotional materials concerning port charges were false and misleading. Plaintiffs claim the Company violated various state consumer protection acts through fraud, conversion, breach of fiduciary duties and unjust enrichment. Plaintiffs seek compensatory damages or, alternatively, refunds of portions of port charges paid, attorneys' fees, costs, prejudgment interest, punitive damages and injunctive and declaratory relief. Carnival recently entered into an agreement to settle the Passenger Complaint filed against it. The trial court signed a final order and judgment approving the settlement. Under the settlement agreement, Carnival will issue travel vouchers with a face value of $25-$55 depending on specified criteria, to certain of its passengers who sailed between April 1992 and June 1997. The vouchers also provide class members with a cash redemption option of up to 20% of the face value. The aggregate face value of travel vouchers that Carnival will issue, assuming no cash redemptions, is approximately $125 million. Alternatively, if all passengers elect the cash redemption feature, the vouchers could be redeemed for approximately $25 million in cash. Pursuant to the settlement, Carnival will pay the plaintiffs' legal fees awarded by the court. Several plaintiffs who asserted objections to the settlement filed a notice of appeal from the trial court order approving the settlement. Holland America Tours, for its part, has entered into a settlement agreement for the one Passenger Complaint filed against it. The trial court approved the settlement on September 28, 1998. Under the settlement agreement, Holland America will issue a total of approximately $14 million in travel vouchers. The vouchers have a face value of $10-$50, depending on specified criteria, to certain of its passengers who are U.S. residents and who sailed between April 1992 and April 1996, and would pay a portion of the plaintiffs' legal fees. One member of the Holland America Tours settlement class appealed the trial court's approval of the settlement. In August 2000, the court of appeals refused to approve the settlement and remanded the case to the trial court. At the request of Holland America Tours, the Washington Supreme Court has agreed to review the court of appeals ruling. The Washington Supreme Court is expected to make a decision by the end of 2001. Carnival Corporation is the world's largest cruise operator with six cruise lines carrying some 2.6 million passengers. Its brands include Carnival Cruises (primarily family Caribbean vacations), Holland America (luxury cruises), and Cunard Line (ocean liner service). Carnival's Costa Crociere offers cruises to European destinations, while its Seabourn and Windstar lines serve the top of the luxury market. Carnival also operates Holland America Westours, which offers sight- seeing tours to Alaska and the Yukon. CHARTER COMMUNICATIONS: Faces Suits In Four States Over Processing Fee ---------------------------------------------------------------------- Leading cable system operator Charter Communications Holdings LLC faces punitive class action lawsuits in Alabama, Indiana, Texas and Wisconsin. These suits were brought on behalf of all person residing in those respective states who are or were potential customers of the Company's cable television service, and who have been charged a processing fee for delinquent payment of their cable bill. The actions challenge the legality of the processing fee and seek declaratory judgment, injunctive relief and unspecified damages. In Alabama and Wisconsin, the Company has entered into joint speculation and case management orders with attorneys for plaintiffs. A Motion to Dismiss is pending in Indiana. "The Company intends to vigorously defend the actions," a report to the Securities and Exchange Commission said. The company serves more than 6 million subscribers in 40 US states. Not only is it a leading cable TV player, but Charter has also embarked on a $3.5 billion system upgrade to be able to offer broadband services over its cable. Its new products include digital cable (1 million customers) and high- speed Internet access via cable modem (252,000 customers). CHINADOTCOM INC.: Marc Henzel Files Securities Suit In S.D. New York -------------------------------------------------------------------- The law firm of Marc S. Henzel filed a class action lawsuit in the United States District Court, Southern District of New York on behalf of purchasers of the securities of Chinadotcom Corp., (Nasdaq: CHINA) between July 12, 1999 and December 6, 2000, inclusive. The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For further details, contact: The Law Offices of Marc S. Henzel by Mail: 210 West Washington Square, Third Floor Philadelphia, PA 19106, by Phone: 888-643-6735 or 215-625-9999 by Fax: 215-440-9475 by E-mail: Mhenzel182@aol.com or visit the firm's Website: www.members.aol.com.mhenzel182 ETOYS INC.: Stull Stull Commences Securities Suit In S.D. New York ------------------------------------------------------------------ Stull, Stull & Brody filed a class action lawsuit Tuesday in the United States District Court for the Southern District of New York, on behalf of purchasers of eToys Inc. (NASDAQ:ETYS) common stock between May 19, 1999 and December 6, 2000, inclusive. The complaint alleges that defendants violated the federal securities laws by issuing and selling eToys common stock pursuant to the May 19, 1999 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: Stull Stull & Brody through Tzivia Brody, Esq. by Phone: 1-800-337-4983 (toll free) or by E-mail: SSBNY@aol.com or by Fax: 212/490-2022 or by Mail: 6 East 45th Street, New York, NY 10017. EXODUS COMMUNICATIONS: Slotnick Shapiro Files Suit In N.D. California --------------------------------------------------------------------- Slotnick, Shapiro & Crocker, LLP filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased the publicly traded securities of Exodus Communications, Inc. (Nasdaq: EXDS) between March 30, 2001 and June 30, 2001, inclusive. The Complaint charges that the Company and certain officers and directors with violations of federal securities laws by providing materially false and misleading information about the Company's financial condition, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the Class Period. For more information, 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 HORACE MANN: Settles Lawsuit Filed By Disability Policies Purchasers -------------------------------------------------------------------- Horace Mann Educators Corporation (NYSE:HMN) has submitted a settlement agreement to the court in a class action suit brought against the company by customers who purchased certain disability policies. All parties involved in the suit have mutually agreed to the settlement, which will be covered by an after-tax reserve of approximately $5 million that was previously announced in the fourth quarter of 2000. This reserve will cover payment to the class, legal fees and administration costs and will have no negative effect on the company's current and future earnings. The settlement is now pending court approval. Plaintiffs in the suit asserted they did not fully understand the provision of the policy's offsetting benefits due to receipt of other forms of income. Policies with offset provisions, which are standard in the insurance industry, have premium rates and benefits that are based on the fact that many people have other sources of income to protect against disability, such as retirement benefits, social security and additional insurance policies. In general, disability policies account for less than 2 percent of Horace Mann's business. Broadly, the settlement will provide additional benefits for current policyholders and compensation to those who demonstrate they did not understand what they purchased. IMMUNE RESPONSE: Schiffrin & Barroway Files Suit In S.D. California ------------------------------------------------------------------- Schiffrin & Barroway, LLP filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of all purchasers of the common stock of Immune Response Corporation (Nasdaq: IMNR) from May 17, 1999 through July 6, 2001, inclusive. 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 INTERMEDIA CABLE: Customers Claim Late Fee Charges Unreasonable --------------------------------------------------------------- InterMedia Cable Systems, an affiliate of Charter Communications Holdings, LLC has been named in purported and certified class actions in various jurisdictions concerning late fee charges and practices. Certain cable systems owned by InterMedia charge late fees to customers who do not pay their cable bills on time. These late fee cases challenge the amount of the late fees and the practices under which they are imposed. The plaintiffs raise claims under state consumer protection statutes, other state statutes and common law. The plaintiffs generally allege that the late fees charged by InterMedia's cable systems, including the Systems in the States of Tennessee, South Carolina and Georgia are not reasonably related to the costs incurred by the cable systems as a result of the late payment. The plaintiffs seek to require cable systems to reduce their late fees on a prospective basis and to provide compensation for alleged excessive late fee charges for past periods. These cases are either at the early stages of the litigation process or are subject to a case management order that sets forth a process leading to mediation. IRWIN FINANCIAL: Mortgage Corporation Subsidiary Faces Broker Fees Suit ----------------------------------------------------------------------- Irwin Financial Corporation revealed recently that its subsidiary Irwin Mortgage Corporation is a defendant in a class action lawsuit relating to its payment of broker fees to mortgage brokers. On June 15, 2001, the subsidiary's appeal on the issue of class certification was denied by a panel of the United States Court of Appeals for the 11th Circuit. On July 11, 2001, the subsidiary filed a motion for a rehearing before the Court of Appeals on the class certification issue. Although the Company has not yet formed a reasonable estimate of the amount of potential loss, if any, that the Corporation could suffer, it is expected that an adverse outcome in this litigation could have a material adverse effect on its financial condition and results of operations. IRWIN UNION: Sued In Rhode Islands For Violating Truth In Lending Act --------------------------------------------------------------------- Irwin Union Bank and Trust Company and Irwin Home Equity Corporation, both subsidiaries of Irwin Financial Corporation, are defendants in a lawsuit in the U.S. District Court for the District of Rhode Island. The suit is seeking certification as a class action and alleges that Irwin's disclosures and closing procedure for certain home equity loans did not comply with the Truth in Lending Act. Because the case has only recently been filed, the Bank has not formed a reasonable estimate of the amount of potential loss, if any, that it could suffer. KFC RESTAURANT: Spearfish, S.D. Branch Sued for Sexual Harassment ----------------------------------------------------------------- The U.S. Equal Employment Opportunity Commission filed recently a class action sexual harassment lawsuit in the U.S. District Court in Rapid City, South Dakota, against The Colonel, a Kentucky Fried Chicken restaurant, located in Spearfish, S.D. According to a recent Associated Press report, the lawsuit alleges former assistant manager Rick Jones made unwanted advances and inappropriate comments to several female employees. The complaint states that one employee quit because of the harassment. LEHMAN BROTHERS:Bankrupt IPO Securities Issuers File Consolidated Suit ---------------------------------------------------------------------- Four bankrupt issuers of IPO securities have filed a consolidated class action against 20 underwriters defendants, including Lehman Brothers Holdings Inc. According to Lehman Brothers, the consolidated complaint was brought to court last July 6. It seeks unspecified compensatory damages and injunctive relief for alleged violations of the antitrust laws based on the theory that the defendant underwriters fixed and maintained fees for underwriting certain IPO securities at super-competitive levels. The four plaintiffs are CHS Electronics, Inc.; Equalnet Communications Corp., MDCM Holdings, Inc.; and Jeffrey A. Weinman, as trustee of the Bankruptcy Estate of Western Pacific Airlines. Meanwhile, Lehman Brothers also admitted in its recent report to the Securities and Exchange Commission that it has been named in numerous purported class actions beginning March this year. The class of investors on whose behalf the actions are purportedly brought is those individuals and entities who purchased securities after an IPO made during the period of March 1997 through December 2000. In certain cases, the class period may be narrower because it is limited to investors in particular IPOs. The actions all essentially allege that the underwriter defendants conspired to require customers who wanted large allocations of IPO shares to pay undisclosed, excessive commissions in the form of rebates of up to one-third of their profits from the resale of the shares. The underwriter defendants also allegedly required customers to agree to buy shares offered in the IPOs after the IPOs were completed at prices higher than the IPO price as a condition to receiving their requested IPO allocation and to make such purchases at specified escalating price levels designed to increase stock prices in the secondary market, in a practice referred to as "laddering a stock." The actions assert claims based on federal securities law violations, federal antitrust violations and/or state antitrust violations. MAY DEPARTMENT: Settles Lawsuit, Agrees To Improve Access To 430 Stores ----------------------------------------------------------------------- May Department Stores Co. has agreed to renovate its 430 stores to make them more accessible to disabled shoppers in a settlement agreement announce Tuesday. The Associated Press said the renovation will cost dearly the $14 billion-a-year retailer over the next three years. It agreed to make their aisles, fitting rooms and bathrooms more accessible to disabled shoppers. According to the report, the Company also promised to get rid of long tablecloths that can tangle wheelchair wheels within a year, lower the height of showcase tables to 3 feet within 18 months and widen aisles to fitting rooms and restrooms within three years. U.S. District Judge Federico Moreno has scheduled a hearing to review the settlement on Aug. 21, the report said. MONTANA STATE: Game Farm Owners Ask For Animal Shooting Ban Lift ----------------------------------------------------------------- Attorneys representing game farm owners recently asked U.S. District Judge Donald Molloy to issue a temporary injunction lifting a ban that outlaws the shooting of captive animals on Montana's 92 game farms. The game farm owners have contested, in a class action lawsuit filed previously, the ballot initiative that is phasing out game farms in the state, according to a recent Associated Press report. After listening to arguments from Stan Kaleczyc, a Helena lawyer representing the Montana game farm operators, and attorneys representing the state and other proponents of game farm Initiative 143, Judge Molloy said that he would rule on the request as quickly as possible. The arguments offered by both sides were the same ones used to support and oppose the issue when it came before the voters. Kaleczyc argued that "it's inappropriate to take one person's idea of ethical hunting and impose it on another"; that the Initiative violates the game farm operators' constitutional rights and represents a danger to their future livelihoods. "This cannot be fully compensated by monetary damages; the injuries can only be resolved by granting a preliminary injunction," said Kaleczyc. Attorneys representing the state and sportsmen's groups told Judge Molloy that Initiative 143 was passed by Montana voters because they are concerned the captive animals are a source of disease and a danger to the traditional hunting industry in Montana. Voters, in November 2000, had passed Initiative 143, prohibiting the licensing of new game farms, expansions and transfers of licenses and the shooting of captive animals on the already existent game farms. In February 2001, Kim and Cindy Kafka of Havre and Pat and Connie Corbett of Sidney filed a class action lawsuit in federal court, asking that Initiative 143 be overturned on the grounds that it is unconstitutional. They also requested $100 million in damages to compensate for the harm the Initiative had done to their business. The same game farm operators filed the recent motion asking Judge Molloy to temporarily enjoin the state from enforcing the ban on game hunting while their class action proceeds through the courts. OWENS CORNING: Dwyer & Collora Files Amended Massachusetts Complaint --------------------------------------------------------------------- Dwyer & Collora, LLP filed recently an Amended Complaint in a class action lawsuit that was originally commenced on April 27, 2001 in the United Stated District Court for the District of Massachusetts. The Amended Complaint was filed on behalf of purchasers of Owens Corning Inc. (NYSE: OWC) 7.5% Notes due May 1, 2005, 7.7% Notes due May 1, 2008, or 7.5 Debentures due August 1, 2018 between April 30, 1998 and October 5, 2000, inclusive. The suit names the following as defendants: (i) Goldman Sachs & Company, (ii) Credit Suisse First Boston, (iii) Barclays Capital, Inc., (iv) Chase Securities, Inc., (v) J.P Morgan & Co., (vi) First Chicago Capital Markets, Inc., (vii) BancAmerica Robertson Stephens, (viii) Citicorp Securities, Inc., (ix) NationsBanc Montgomery Securities, LLC, (x) BNY Capital Markets, Inc., (xi) Merrill Lynch, Pierce Fenner & Smith, Inc., (xii) RBC Dominion Securities Corporation, (xiii) Scotia Capital Markets (USA) Inc., (xiv) SG Cowen Securities Corporation, (xv) Glen H. Hiner, (xvi) Domenico Cecere, (xvii) Steven J. Strobel, (xviii) Michael I. Miller, (xix) Norman P. Blake, Jr., (xx) Gaston Caperton, (xxi) William W. Colville, (xxii) Landon Hilliard, (xxiii) Sir Trevor Holdsworth, (xxiv) Jon M. Huntsman, Jr., (xxv) Ann Iverson, (xxvi) W. Walker Lewis, (xxvii) Furman C. Moseley, Jr., (xxviii) W. Ann Reynolds, (xxix) Leonard S. Coleman, Jr., and (xxx) John H. Dasburg. The Amended Complaint charges the defendants, who include the various underwriters who participated in the offerings of the Debt Securities to the public as well as certain Owens Corning officers and directors, with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. For more details, contact: Dwyer & Collora, LLP through William H. Kettlewell, Esq., David A. Bunis, Esq. or Daniel J. Cloherty, Esq. by Phone: 617-371-1000 REDBACK NETWORKS: Stull Stull Files Securities Suit In S.D. New York -------------------------------------------------------------------- Stull Stull & Brody filed Tuesday a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Redback Networks Inc. (NASDAQ:RBAK) common stock between May 17, 1999 and July 3, 2001, inclusive. The complaint alleges that defendants violated the federal securities laws by issuing and selling Redback Networks common stock pursuant to the May 17, 1999 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 details, contact: Stull, Stull & Brody through Tzivia Brody, Esq. by Phone: 1-800-337-4983 (toll free) by E-mail: SSBNY@aol.com by Fax: 212/490-2022 or by Mail: 6 East 45th Street, New York, NY 10017. RHYTHMS NETCONNECTIONS: Milberg Weiss Begins S.D. NY Securities Suit -------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach, LLP filed Tuesday a class action lawsuit on behalf of purchasers of the securities of Rhythms Netconnections, Inc. (NASDAQ: RTHM, RTHM.OB) between April 6, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants Rhythms, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith Barney, Inc., BancBoston Robertson Stephens, Inc., Catherine M. Hapka and Scott C. Chandler. 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 by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: (800) 320-5081 by Email: Rhythmscase@milbergNY.com or visit the firm's Website: www.milberg.com ROBB MONTGOMERY: Plaintiffs Settles Suit Against Doctor for $3.4M ----------------------------------------------------------------- A total of $3.4 million will be paid to Lora Land and about 200 other plaintiffs, former patients of retired foot doctor Robb Montgomery. Dave Fopay, writing for the Journal Gazette and Times Courier, reported that this means the Coles County case will not be appealed. The settlement won't be final until Circuit Judge Paul Komada approves it. The judge scheduled another hearing for July 31, 2001. Lead plaintiff attorney Mitch Shick described Montgomery's finances as "basically insolvent," which meant he wouldn't have the personal assets needed to cover the damages. The settlement money will come from National-Ben Franklin Insurance Co., which provided Montgomery with malpractice insurance before he retired in 1992, the report said. The trial, which lasted seven weeks, concluded on June 1. Jurors awarded about $3.9 million in damages to Land and 25 other former patients. Judge Komada later ordered more than $26 million in additional damages to the 178 former patients whose cases weren't considered during the trial. The original lawsuit filed by Ms. Land against Montgomery in 1992 alleged that the doctor performed unnecessary surgeries and treatments that caused permanent injuries. Land agreed to reduce her damages to $500,000 from $962,000 under the settlement. Attorneys Mike Kokal and Robert Marshall represented Montgomery and the insurance company at the hearing, but reportedly would not comment on the settlement. Legal notices explaining the settlement will be sent to the 304 of Montgomery's former patients who wanted to join the lawsuit, the Courier said. They have until the July 31 hearing to object to the settlement or appeal the case 30 days after Komada approves it. SCHICK TECHNOLOGIES: Optimistic That Settlement Deal Will Be Approved --------------------------------------------------------------------- Schick Technologies, Inc. expressed optimism recently that a three-year old shareholders suit will soon be dismissed. The Company entered into a stipulation of settlement last month with the nine shareholders who have each filed separate class suits in 1998. The settlement deal, which provides for the payment of $3.4 million to the plaintiffs, awaits final approval by the U.S. District Court for the Eastern District of New York. According to the company, the settlement amount will be paid in its entirety by the Company's insurance carrier and is not expected to have any material impact on the financial results of the Company. The Complaint names as defendants the Company, David B. Schick, Thomas E. Rutenberg, and David Spector as well as PricewaterhouseCoopers, LLP. The Complaint alleged that the defendants issued false and misleading statements concerning the Company's publicly reported earnings in violation of federal securities laws. SOUTH KOREA: Korean Business Groups Can't Agree On Possible Effects ------------------------------------------------------------------- Two large business groups in Korea have opposing views on the impending introduction of class action lawsuits in the Korean legal framework in March 2002. According to Korea Herald, the Korean Chamber of Commerce and Industry is in favor of the plan, as it will help eradicate irregularities such as false market disclosures and share price manipulation. But the Federation of Korean Industries, a lobbying group for large industrial conglomerates, believes class action suits will lead to a rash of minority shareholder suits, the report said. The federation foresees abuses of class action lawsuits by ill- intentioned shareholders that will interrupt business operations. SYCAMORE NETWORKS: Marc Henzel Commences Securities Suit In S.D. NY ------------------------------------------------------------------- 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 Sycamore Networks, Inc. (Nasdaq: SCMR) securities between October 21, 1999 and June 28, 2001. Named as defendants in the complaint are Sycamore and the following executive officers of Sycamore: (i) Daniel E. Smith, (ii) Gururaj Deshpande, (iii) Frances M. Jewels, (iv) Timothy Barrows and (v) Paul Ferri. The complaint also names as defendants the following underwriters of Sycamore's initial public offering: Morgan Stanley & Co. Incorporated, Lehman Brothers, Inc., J.P. Morgan Securities, Inc., and Dain Rauscher Wessels, a division of Dain Rauscher Incorporated. The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. For additional information, contact: The Law Offices of Marc S. Henzel by Mail: 210 West Washington Square, Third Floor Philadelphia, PA 19106 by Phone: 888-643-6735 or 215-625-9999 by Fax: 215-440-9475 by E-mail: Mhenzel182@aol.com or visit the firm's Website: www.members.aol.com/mhenzel182 TCI FALCON: Customers Cry Foul, Sue Over Assessment Of Late Fees ---------------------------------------------------------------- TCI Falcon Systems, an affiliate of leading cable systems operator Charter Communications Holdings LLC, is besieged with several complaints from subscribers questioning the propriety of assessing them late fees. A number of these subscribers have already filed or threatened to file separate class actions against the Company. They claim that assessing an administrative fee to customers whose payments are delinquent constitutes an invalid liquidated damage provision, a breach of contract, and violates local consumer protection statutes. Plaintiffs seek recovery of all late fees paid to the subject systems as a class purporting to consist of all customers who were assessed such fees during the applicable limitation period, plus attorneys' fees and costs. "Based upon the facts available, management believes that, although no assurance can be given as to the outcome of these actions, the ultimate disposition should not have a material adverse effect upon the combined financial condition of the TCI Falcon Systems," a report by the Company to the Securities and Exchange Commission said. TIBCO SOFTWARE: Faces Securities Fraud Lawsuit In S.D. New York --------------------------------------------------------------- A class action complaint was filed against Tibco Software, Inc. on July 6, 2001 alleging violations of federal securities laws related to its initial public offering prospectus. The suit names as defendants the Company, several of the Company's current and former officers and directors and the underwriters of its IPO. It is pending in the United States District Court for the Southern District of New York. The complaint claims, among others, that the prospectus contained false and misleading statements regarding, certain commissions purported to have been received by the underwriters in connection with their allocation of shares in the Company's initial public offering. The Company is still evaluating the case, and there can be no assurance that it will prevail. "An unfavorable outcome of this litigation could have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations," a report by the Company to the Securities and Exchange Commission said. TICKETS.COM: Schiffrin & Barroway Begins 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 Tickets.com, Inc. (Nasdaq: TIXX) from November 3, 1999 through December 6, 2000, inclusive. The suit names as defendants Tickets.com, Credit Suisse First Boston Corporation, Morgan Stanley & Co., Incorporated, Morgan Stanley Dean Witter Online, Inc., W. Thomas Gimple, John M. Markovich, Michael R. Rodriguez and C. Ian Sym-Smith. For more details, contact: Schiffrin & Barroway, LLP through Marc A. Topaz, Esq. or Stuart L. Berman, Esq. by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com TOWNE SERVICES: Court Grants Dismissal Motion, But Allows Suit To Go On ----------------------------------------------------------------------- Towne Services, Inc. announced recently its motion to dismiss a securities lawsuit has been granted in part by the court. The effect, however, allows the suit to continue. The suit filed in November 1999 alleges, among other things, that Towne should have disclosed in the prospectus used for its secondary public offering in June 1999 that it allegedly experienced serious problems with its network infrastructure and processing facilities during the move of its corporate headquarters in June 1999. These problems allegedly led to a higher than usual number of customers terminating their contracts during the second quarter. Towne Services allows businesses and banks to convert in-house credit transactions into automated, virtual credit card accounts. The Company's systems transmit accounts receivable data to businesses' banks and invoice the businesses' customers. Upon receipt of the sales and payment information, the banks advance funds to the companies. No class has yet been certified in this case and discovery has not yet commenced. Towne believes that the allegations in the complaint are without merit and intends to defend the lawsuit vigorously. TRAFFIX INC.: Awaits Court Approval of $3.2 Million Settlement Deal ------------------------------------------------------------------- Traffix, Inc. recently announced that it has successfully settled a class action suit for $3.2 million. The Company said in its regulatory filing with the Securities and Exchange Commission that a hearing for final approval of the deal is scheduled for September 21. The same report, however, did not indicate what the nature of the action is or where it is pending. "There can be no assurance that the District Court will finally approve the settlement," the Company said. TREX COMPANY: Milberg Weiss Files Securities Suit In W.D. Virginia ------------------------------------------------------------------ Milberg Weiss Bershad Hynes & Lerach LLP filed Tuesday a class action lawsuit on behalf of purchasers of the securities of Trex Company, Inc. (NYSE: TWP) between November 2, 2000 and June 18, 2001, inclusive. The action is pending in the United States District Court, Western District of Virginia against defendants Trex, Robert Matheny, Roger A. Wittenberg and Anthony J. Cavanna. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between November 2, 2000 and June 18, 2001, thereby artificially inflating the price of Trex securities. For further 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: Trexcase@milbergNY.com or visit the firm's Website: www.milberg.com U.S. WIRELESS: Beleaguered Company Reports Losses of $32.7M This Year --------------------------------------------------------------------- U.S. Wireless Corporation, which is facing several class action suits, revealed Tuesday that its net losses for the fiscal year ended March 31 amounted to $32.7 million. This has nearly doubled its losses for fiscal year 2000. Common shares losses this year amounted to $1.67 per share compared to $1.42 per share or $17.7 million last year, the East Bay Business Bay reported. According to the report, total costs and operating expenses were $22.8 million, compared to $8.9 million for the previous fiscal year. Operating expenses totaled $10.4 million, compared to $5.2 million for 2000. The report said that the company incurred higher operating expenses because of increases in personnel and costs in its facilities in the Bay Area, Seattle, and Washington, D.C. U.S. Wireless also incurred during the fiscal year $9.6 million in charges related to litigation settlements, of which significant portions were non-cash charges, the report added. U.S. WIRELESS: Cauley Geller Files Securities Suit In N.D. California --------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Northern District of California on behalf of purchasers of U.S. Wireless Corporation (Nasdaq: USWC) publicly traded securities during the period between June 29, 1999 and May 25, 2001, inclusive. The complaint charges U.S. Wireless and its former Chairman and CEO with violations of the Securities Exchange Act of 1934. 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 VULCAN MATERIALS: Chemical Releases At LA Plant Triggers Several Suits ---------------------------------------------------------------------- Various claims for personal injuries have been filed against Vulcan Materials Co. as a result of chemical releases at the Company's Geismar, Louisiana, chloralkali plant earlier this year. According to the Company, some of these cases, which have been filed within the past month, seek class action status. No discovery has taken place so far, the company said. Vulcan Materials is the largest US producer of construction aggregates (crushed stone, gravel, and sand used in virtually all construction, from highways to housing), sold primarily to the private sector. It also produces industrial and specialty chemicals. Vulcan's chemicals businesses make chloralkali and process chemicals (such as chlorine, caustic soda, hydrochloric acid) for pulp and paper processing, water treatment, and other industrial uses. "Based on the information currently available to it, the Company does not believe that the ultimate resolution of these suits will have a materially adverse impact on the Company," a report to the Securities and Exchange Commission said. ********* 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. 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