/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/010720.mbx C L A S S A C T I O N R E P O R T E R Friday, July 20 2001, Vol. 3, No. 141 Headlines ARKANSAS STATE: ACLU Sues Over Treatment of Mentally Ill Inmates ASPEON INC.: Motion To Dismiss Third Consolidated Suit Set For July 30 BLUE MARTINI: Cauley Geller Begins Securities Suit In S.D. New York CALIPER TECHNOLOGIES: Cauley Geller Files Securities Suit In S.D. NY CAPTEC NET: Merger With Commercial Net Lease Realty,Inc. Triggers Suit CHINADOTCOM CORPORATION: Stull Stull Files Securities Suit In S.D. NY CHORDIANT SOFTWARE: Milberg Weiss Files Securities Suit In S.D. NY CLARENT CORPORATION: Milberg Weiss Files Securities Suit In S.D. NY COVAD COMMUNICATIONS: Wolf Haldenstein Commences Suit In S.D. New York CSX TRANSPORTATION: Ex-workers In FL And GA File New Solvent Suit EXODUS COMMUNICATIONS: Stull Stull Files Lawsuit In N.D. California FOREST LABORATORIES: Suits Continue Despite Dismissal Of Federal Cases FOOTE HOSPITAL: Plaintiffs Lawyer Expects Suit To Be Tried Next Year GUNTHER INTERNATIONAL: Final Approval Of Settlement Offer Granted JOHNSON & JOHNSON: Faces Lawsuit In Montreal Over CISAPRIDE Drug MESABA HOLDINGS: Suits Have No Merit As Northwest Withdraws Offer NEXT LEVEL: Wolf Haldenstein Files Securities Suit In S.D. New York PAINT INDUSTRY: NAACP Pressures Paint Industry for Action on Lead PETMED EXPRESS: Court Sets Hearing On Settlement Pact This July 30 PLUG POWER: Motion to Dismiss Filed Last May Remains Undecided QUALCOMM INC.: S.D. California Court Grants Conditional Certification QUORUM HEALTH: Officials Off Hook, But Suit Against Company Continues RHYTHMS NETCONNECTIONS: Cauley Geller Files Securities Suit In S.D. NY ROGERS CABLE: Faces Suit In Ontario For Poor Internet Service SAFETY COMPONENTS: Settles Shareholders Lawsuits For $4 Million SYCAMORE NETWORKS: Stull Stull Files Securities Suit In S.D. New York TIBCO SOFTWARE: Cauley Geller Begins Securities Suit In S.D. New York TREX COMPANY: Cauley Geller Commences Securities Suit In W.D. Virginia TRIAD HOSPITALS: Expects Dismissal Of Suit After Reaching April Deal UNO RESTAURANT: Motion To Dismiss DE Shareholders Suit Still Undecided VIANT CORPORATION: Stull Stull Begins Securities Suit In S.D. New York XEROX CORPORATION: Adverse Ruling By Judge May Force Payment Of $300M ********* ARKANSAS STATE: ACLU Sues Over Treatment of Mentally Ill Inmates ---------------------------------------------------------------- The American Civil Liberties Union filed a class action lawsuit recently in U.S. District Court, complaining that state and county inmates who suffer from mental illness have been denied treatment and had to endure the neglect of their mental problems while awaiting trial, according to a recent Associated Press report. The ACLU named James M. Terry, 28, as plaintiff. He has been held in the Sebastian County jail at Fort Smith for more than nine months without receiving treatment for a psychotic disorder. The lawsuit names as defendants Sebastian County Sheriff Frank Atkinson and Richard Hill, deputy director of the state Division of Mental Health Services under the Department of Human Services. DHS spokesman Joe Quinn would not comment on the lawsuit. ASPEON INC.: Motion To Dismiss Third Consolidated Suit Set For July 30 ---------------------------------------------------------------------- A court hearing is scheduled for July 30 to consider the motion to dismiss filed by Aspeon, Inc. on the third consolidated securities complaint filed last May. The Company said in its latest report to the Securities and Exchange Commission that it is unsure about the outcome of the hearing. The complaint was first filed in October and November 2000 in eight separate purported class action lawsuits against the Company, the Company's Chief Executive Officer, and its former Chief Financial Officer in the United States District Court for the Central District of California. The lawsuits, which have since been consolidated into one action, allege violations of the Securities Exchange Act of 1934. Aspeon is an application service provider that operates principally through two subsidiaries, Javelin Systems and Aspeon Solutions. Javelin Systems' point-of-sale computers, used by restaurants and retailers, can capture orders and transmit the information to corporate headquarters (or to the kitchen or bar) for use in inventory management, filling orders, and sales analysis. BLUE MARTINI: Cauley Geller Begins 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 Blue Martini Software, Inc. (Nasdaq: BLUE) securities during the period between July 24, 2000 and July 9, 2001, 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) Blue Martini, (ii) Goldman Sachs & Co., (iii) Dain Rauscher Incorporated, (iv) Thomas Weisel Partners LLC, (v) U.S. Bancorp Piper Jaffray, (vi) James C. Gaither, (vii) A. Michael Spence, (viii) Andrew W. Verhalen, (ix) Edward H. Vick, and (x) William F. Zuendt For further details, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) by E-mail: info@classlawyer.com CALIPER TECHNOLOGIES: Cauley Geller Files Securities Suit In S.D. NY -------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Caliper Technologies Corporation (Nasdaq: CALP) securities during the period between December 14, 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) Caliper, (ii) Credit Suisse First Boston Corporation, (iii) Daniel L. Kisner, M.C., (iv) James L. Knighton and (v) David V. Milligan, PhD. 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 CAPTEC NET: Merger With Commercial Net Lease Realty,Inc. Triggers Suit ----------------------------------------------------------------------- Captec Net Lease Realty, Inc. disclosed in its latest report to the Securities and Exchange Commission that it is facing a shareholders suit filed recently in a federal court in Michigan. The Company said the suit stems from a July 1, 2001 Agreement and Plan of Merger between Captec and Commercial Net Lease Realty, Inc. that provides for the merger of Captec with and into Commercial, which will be the surviving corporation. A complaint was filed by Alfonso Larriva, a stockholder of Captec, on behalf of an alleged class consisting of the public stockholders of the Company. It is pending in the United States District Court for the Eastern District of Michigan, Southern Division. The complaint alleges, among other things, that the defendants breached fiduciary duties owed to plaintiff and the alleged class in connection with the alleged unfair use by Patrick L Beach, Captec's Chairman, President and Chief Executive Officer of inside information in connection with the acquisition of certain non-real estate assets of Captec and the alleged use of the Captec stockholder's rights plan and the $5.0 million break-up fee provided in the Merger Agreement in the case of termination of Merger Agreement to discourage third party bidders. The complaint further alleges that the Merger is unfair to Captec's stockholders, and that the alleged class will be irreparably damaged if the Merger is consummated. The complaint seeks a declaration that the suit is properly maintainable as a class action and that the Merger Agreement was entered into in breach of fiduciary duties and is unlawful and unenforceable. Captec believes the request for class certification and the claims are without merit, and intends to defend vigorously against this action. Captec Net Lease Realty is a real estate investment trust (REIT) that develops, buys, and owns more than 130 properties in 27 states across the US. Captec leases the properties to national and regional franchised retailers and restaurants, with eateries accounting for about three-quarters of property revenue. Under a net lease, tenants are responsible for the upkeep of property, including maintenance, taxes, and insurance. CHINADOTCOM CORPORATION: Stull Stull Files Securities Suit In S.D. NY --------------------------------------------------------------------- Stull, Stull & Brody filed Wednesday a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Chinadotcom Corporation (NASDAQ:CHINA) common stock between July 12, 1999 and June 28, 2001, inclusive. The complaint alleges that defendants violated the federal securities laws by issuing and selling Chinadotcom common stock pursuant to the July 12, 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 additional information, contact: Stull, Stull & Brody through Tzivia Brody, Esq. by Phone: 1-800-337-4983 (toll free) by E-mail: SSBNY@aol.com or by Fax: 212/490-2022 or by Mail: 6 East 45th Street, New York, NY 10017 CHORDIANT SOFTWARE: Milberg Weiss Files Securities Suit In S.D. NY ------------------------------------------------------------------ Milberg Weiss Bershad Hynes & Lerach LLP filed Wednesday a class action lawsuit on behalf of purchasers of the securities of Chordiant Software, Inc. (NASDAQ: CHRD) between February 14, 2000 and December 6, 2000, inclusive. The action alleges the following as defendants: (i) Chordiant, (ii) FleetBoston Robertson Stephens, Inc., (iii) Samuel T. Spadafora, (iv) Steven R. Springsteel, and (v) Joseph F. Tumminaro, The suit 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: chordiantcase@milbergNY.com or visit the firm's Website: www.milberg.com CLARENT CORPORATION: Milberg Weiss Files Securities Suit In S.D. NY ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed Wednesday a class action lawsuit on behalf of purchasers of the securities of Clarent Corp. (NASDAQ: CLRN) between July 1, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants Clarent, Credit Suisse First Boston Corporation, BancBoston Robertson Stephens, Inc., Jerry Shaw-Yau Chang, Richard J. Heaps and Michael F. Vargo. 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: Clarentcase@milbergNY.com or visit the firm's Website: www.milberg.com COVAD COMMUNICATIONS: Wolf Haldenstein Commences Suit In S.D. New York ---------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Covad Communications Group, Inc. (Nasdaq: COVD) between January 21, 1999 and December 6, 2000, inclusive. The suit listed as defendants Covad, certain of its officers and directors, and its underwriters. The complaint alleges that defendants violated the federal securities laws by issuing and selling Covad common stock pursuant to the January 21, 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 additional information, contact: Wolf Haldenstein Adler Freeman & Herz LLP by Mail: 270 Madison Avenue, New York, New York 10016 by Phone: (800) 575-0735 (Fred Taylor Isquith, Esq., Gustavo Bruckner Esq., Thomas Burt, Esq., or George Peters) by E-mail: classmember@whafh.com or visit the firm's Website: www.whafh.com CSX TRANSPORTATION: Ex-workers In FL And GA File New Solvent Suit ----------------------------------------------------------------- Eight former employees of CSX Transportation filed Wednesday a suit seeking class action status for those who are suffering from brain damage as a result of using solvents to clean locomotives in the Company's Jacksonville and Waycross, Georgia rail yards. According to the Florida Times-Union, lawyers for the plaintiffs believe there are hundreds, even thousands, of former CSX employees who are suffering from the above illness. This is not the first time that the Company is faced with this kind of lawsuit. Over the years, CSX has settled similar solvent lawsuits, which has now involved $35 million in settlement payments. This new suit is brought by former employees who worked at the company's West Jacksonville maintenance facility, from the '40s through the '80s, and former employees who worked in Waycross in the '80s and '90s. The plaintiffs have complained of memory failure, confusion, difficulty speaking and other problems they blame on solvents' effects on their brains. EXODUS COMMUNICATIONS: Stull Stull Files Lawsuit In N.D. California ------------------------------------------------------------------- Stull, Stull & Brody filed a class action complaint on behalf of all persons who acquired Exodus Communications, Inc. (NASDAQ:EXDS) securities between March 20, 2001 and June 20, 2001, inclusive. The complaint charges Exodus Communications, Inc. and its senior executives with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. For more information, contact: Stull, Stull & Brody through Michael D. Braun, Esq. by Phone: 888/388-4605 or by E-mail: mbraun@secfraud.com FOREST LABORATORIES: Suits Continue Despite Dismissal Of Federal Cases ---------------------------------------------------------------------- It's not over yet. Despite a ruling by the Court of Appeals for the Seventh Circuit on the federal cases that no reasonable jury could reach a verdict against the Company on charges of price discrimination and conspiracy to fix prices in the sale of pharmaceutical products, Forest Laboratories, Inc. will have to continue its defense against such suits. The Company, together with other drug makers, remains a defendant in many of the federal opt-out cases included in the coordinated proceedings to the extent of claims alleging price discrimination in violation of the Robinson-Patman Act. In November 1998, the Company and the other defendants were able to secure the dismissal of the conspiracy allegations contained in all of the federal class actions. Following this dismissal, individual plaintiffs who opted out of the federal cases filed separate suits alleging certain violations of the federal anti-trust laws in the marketing of pharmaceutical products. No discovery or other significant proceedings, however, have taken place to date, the Company said in a recent report to the Securities and Exchange Commission. Forest Laboratories, Inc. develops and manufactures brand name drugs as well as generic prescription and nonprescription pharmaceutical products. The company's pharmaceutical line includes Celexa, an antidepressant that accounts for nearly half of total sales; hypertension drug Tiazac (about 20%); Infasurf, which treats respiratory distress syndrome in premature infants; and Cervidil, a gel used to help speed the birthing process. The Company has subsidiaries in the UK and Ireland and markets directly to doctors, drugstore chains, managed care organizations, and distributors through its own sales force. FOOTE HOSPITAL: Plaintiffs Lawyer Expects Suit To Be Tried Next Year -------------------------------------------------------------------- A lawyer representing former patients of Foote Hospital, who filed a class action suit for accidental exposure to HIV and hepatitis, believes that the suit will not be tried until next year. Lawyers for the hospital have appealed a ruling by a circuit judge granting class action status on the suit, mLive.com reported recently. The suit was put on hold for 60 days May 25. Goren said he expects more challenges by the hospital's lawyers in the next few months. About 710 patients who had endoscopic procedure at the hospital late last year claim they may have been exposed to disease because the equipment was not cleaned properly. It is unclear, however, whether any of the patients actually contracted any disease. The report quoted hospital officials saying that the chances of exposure were slim. Goren told the court in May that some of his clients have hepatitis C, but he could not ascertain whether there was any connection to their treatment at Foote, mLive.com said. GUNTHER INTERNATIONAL: Final Approval Of Settlement Offer Granted ----------------------------------------------------------------- Gunther International, Ltd. announced in its latest regulatory filing with the Securities and Exchange Commission that it received final approval for its settlement offer. According to the Company, the offer was approved last May, by the U.S. District Court for the District of Connecticut. The securities suit was filed in relation to an alleged violation by the Company of the Securities Exchange Act of 1934 when it issued statements for the first three quarters of fiscal 1998 with materially false and misleading information. Under the terms of the settlement, the Company and the other defendants agreed to pay $595,000 to the plaintiffs, $380,000 of which was paid by the Company's directors' and officers' liability insurance carrier and $215,000 of which was paid by the Company. Gunther International makes electronic publishing, mailing, and billing systems that automate the assembly of printed documents. Its EP-4000 Electronic Publishing System can staple, bind, match, and insert documents into envelopes for distribution. JOHNSON & JOHNSON: Faces Lawsuit In Montreal Over CISAPRIDE Drug ---------------------------------------------------------------- Montreal-based law firm Lauzon, B,langer filed a class action lawsuit against American multinational corporation Johnson & Johnson and two of its Canadian subsidiaries, Johnson & Johnson Inc. and Janssen-Ortho Inc., Canada NewsWire reported Monday. Jean-Nil Gardner, 65, filed the suit on behalf of all persons, including minors, in Quebec who used the drug CISAPRIDE marketed under the brand name PREPULSID. The drug was first introduced in Canada in 1990, and prescribed to thousands of individuals. Records at Health Canada reveal that 44 cases of cardiac arrhythmia have been associated with usage of this drug, of which 10 engendered the death of Canadians. Health Canada removed this drug from the market on August 7, 2000, as did the American Food and Drug Administration on July 14, 2000, because of the health risks, the report said. Gardner is seeking $100,000 in damages for permanent harm to his health and for the diminishment of his life expectancy. His complaint will be formally presented to the Montreal Superior Court on August 7, 2001, the report said. For more information, contact: Carmen Campeau in charge of member services at Lauzon, B,langer by Phone: (514) 844-4646 ext. 228. MESABA HOLDINGS: Suits Have No Merit As Northwest Withdraws Offer -----------------------------------------------------------------Northwest Airlines has withdrawn its offer to buy more stocks of Mesaba Holdings, Inc., paving the way for the possible dismissal of the shareholders suit filed against the Company. Northwest Airlines announced its withdrawal last June. Since November 2000, Northwest has been embroiled in five separate lawsuits filed in Hennepin County District Court and Dakota County District Court. The lawsuits stem from the proposal by Northwest Airlines Corporation, who owns 40 percent of Mesaba, to acquire all of the outstanding shares of the Company's common stock. The lawsuits allege that the defendants have breached their fiduciary duties to the Company's shareholders in connection with the proposed transaction. With the withdrawal of the offer, the Company believes the lawsuits no longer have merits. Riding the contrails of Northwest Airlines, Mesaba Holdings is soaring. The company's subsidiary, Mesaba Aviation (doing business as Mesaba Airlines), is a regional airline that flies as Northwest Airlink through a code-sharing agreement with Northwest Airlines. The two carriers' flight schedules are closely coordinated to provide smooth connections at hubs in Detroit, Memphis, and Minneapolis/St. Paul. With a fleet of about 110 leased aircraft, Mesaba is one of the largest regional airlines in the US. It provides flights to more than 100 cities in 28 US states and three Canadian provinces. NEXT LEVEL: Wolf Haldenstein Files Securities Suit In S.D. New York ------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Next Level Communications, Inc. [Nasdaq: NXTV] between November 9, 1999 and December 6, 2000, inclusive. Listed as defendants in the suit are Next Level, certain of its officers and directors, and its underwriters. The complaint alleges that defendants violated the federal securities laws by issuing and selling Next Level common stock pursuant to the November 9, 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: Wolf Haldenstein Adler Freeman & Herz LLP by Mail: 270 Madison Avenue, New York, New York 10016 by Phone: (800) 575-0735 (Fred Taylor Isquith, Esq., Gustavo Bruckner Esq., Thomas Burt, Esq., or George Peters) by E-mail: classmember@whafh.com or visit the firm's Website: www.whafh.com PAINT INDUSTRY: NAACP Pressures Paint Industry for Action on Lead ----------------------------------------------------------------- NAACP president Kweisi Mfume said recently that his group is preparing to sue the paint industry unless it becomes more involved in lead paint abatement and treatment for victims, according to a recent Associated report. Mfume acknowledged that paint companies have contacted him, but that his resolve will remain unshaken, until their involvement has increased. "The industry ought to understand that there are consequences in all of this that cannot be delayed," Mfume said. What are these consequences: Lead paint has been linked to lower IQ, mental retardation, learning difficulties, behavioral problems, stunted growth and hearing loss. At high levels, lead is also believed to cause kidney damage, seizures, coma and even death. An industry representative said paint companies want to work with the NAACP, but a lawsuit would have a "chilling effect on cooperative solutions." Tom Graves, vice president and general counsel for the National Paint & Coating Association, said a class action lawsuit would be a waste of resources. "The attention to the issue is great and we welcome it," Graves said. "The lawsuit is not the right approach." Nonetheless, Rhode Island and the city of Milwaukee have pending lawsuits against paint makers, claiming the companies knew or should have known about the damaging effects of lead paint. Manufacturers have stopped making lead paint decades ago and the product was banned for use as interior paint in 1978 -- an action Graves said his group supported. However, lead paint is still present in many older buildings, and children are at risk of ingesting the toxin. In fact, said Ruth Ann Norton, nearly 1 million children suffer from lead poisoning across the nation. Norton is executive director of the Coalition to End Childhood Lead Poisoning. PETMED EXPRESS: Court Sets Hearing On Settlement Pact This July 30 ------------------------------------------------------------------ PetMed Express, Inc. revealed that it has reached a settlement pact to dismiss a class action lawsuit pending in a federal court in Oklahoma. The Florida-based pet products supplier said it is scheduled to appear before the court on July 30, 2001 to seek final approval of the suit, which seeks nationwide class status. If the Settlement is approved with finality, each class member who does not opt out of the pact will have the option of one of the following benefits: (a) a ten percent (10%) discount on one order of pet medications (the total discount being capped at $4.00); (b) free shipping and handling on one order of pet medication if the Class Member provides an original or copy of the applicable written prescription for that medication; or (c) a twenty-five percent (25%) discount on one order of in-stock pet supplies other than medications (the total discount being capped at $4.00). Also, PetMed will, for a period of at least two (2) years, donate prescription medications or other supplies worth not less than $10,000 per annum to the Humane Society (or another similar agency) for use on stray or homeless pets. PetMed will, for a period of five (5) years, agree not to describe or state in its catalogs, website or invoices that it is providing insurance in connection with delivery of ordered items. Also, Class Counsel will petition the Court for attorney's fees, costs and expenses in an amount not to exceed and payable in the form of: (i) $37,500 cash; (ii) 25,000 shares of registered common stock in PetMed; and (iii) an option to purchase 25,000 shares of common stock in PetMed exercisable at the market price as of the close of business on February 22, 2001 and exercisable within three (3) years of the Effective Date. Steven Wayne Turner v. PetMed Express.com, Inc. was filed January last year in the District Court in and for Wagoner County, Oklahoma. The plaintiff commenced the punitive nationwide class action to seek declaratory judgment and damages based upon alleged breach of contract, unjust enrichment, recovery of money paid absent consideration, fraud, and deceptive and unfair trade practices under the Florida Consumer Protection Act. Plaintiff's alleged claims arise from a purported overcharge of $1.95 on a purchase of pet supplies from PetMed. The Company shipped the products, via United Parcel Service, from PetMed's domicile in Florida to Turner in Tulsa, Oklahoma, along with an invoice showing a subtotal of $39.97 plus $7.99 for "Shipping, Handling and Insurance". Although the invoice did not identify any portion of the $7.99 charge as specifically allocable to shipping, handling, or insurance individually, the plaintiff alleges that $1.95 of the $7.99 was an overcharge attributable to insurance. Plaintiff claims the inclusion of the word "insurance" with "shipping and handling" warrants a nationwide class action against the Company. PLUG POWER: Motion to Dismiss Filed Last May Remains Undecided -------------------------------------------------------------- Plug Power, Inc. disclosed in a SEC regulatory filing recently that it filed last May a motion to dismiss the consolidated securities suit currently pending in the U.S. District Court of the Eastern District of New York. The Company, however, is not sure as to which favor this suit would be resolved. "Litigation is inherently uncertain and there can be no assurances as to the ultimate outcome or effect of these actions. If the plaintiffs were to prevail, such an outcome would have a material adverse effect on our financial condition, results of operations and liquidity," the Company said in the report. In September 2000, a shareholder filed a class action suit alleging that the Company and several of its officers and directors violated certain federal securities laws, by failing to disclose certain information concerning its products and future prospects. The action was brought on behalf of a class of shareholders who purchased the Company's stock between February 14, 2000 and August 2, 2000. Subsequently, 14 additional complaints with similar allegations and class periods were filed. The consolidated amended complaint extends the class period to begin on October 29, 1999 and alleges claims under the Securities Act of 1933 and the Exchange Act of 1934, and Rule 10b-5 promulgated under the Exchange Act of 1934. The company develops on-site power generation systems for commercial and residential dwellings and for automotive applications. Plug Power uses proton exchange membrane (PEM) fuel cells to generate electricity from hydrogen gas without combustion. QUALCOMM INC.: S.D. California Court Grants Conditional Certification --------------------------------------------------------------------- The United States District Court, Southern District of California, granted Conditional Class Certification to former employees of San Diego-based Qualcomm Incorporated, who allege that the company discriminated by age in a 1999 workforce reduction violating the Age Discrimination in Employment Act. These terminations deprived the class of the right to exercise valuable Qualcomm and Leap Wireless stock options. The certification allows the plaintiff, represented by Los Angeles-headquartered Rose, Klein & Marias LLP, to notify 190 potential class members of the suit and their right to opt in to the class. The amount of damages has not yet been established. The certification is conditionally based on further discovery. Without oral argument, Judge Napoleon A. Jones, Jr. conditionally certified the class, to be defined as follows: "All persons who were employed at Qualcomm who at the age of 40 or older were wrongfully terminated on or about February 2, 1999, by Qualcomm on the ground of age, depriving them of their right to exercise valuable Qualcomm and Leap Wireless stock options received as part of their initial employment contract and/or during the course of their employment at Qualcomm." For more information, contact: Rose Klein & Marias LLP by Mail: 801 South Grand Avenue, 18th Floor, Los Angeles, California 90017 by Phone: 213/626-0571 by Fax: 213/623-7755 or visit the firm's Website: www.rkmlaw.com QUORUM HEALTH: Officials Off Hook, But Suit Against Company Continues ----------------------------------------------------------------------- Its Chief Executive Officer and other officials are already off the hook, but Quorum Health Group, Inc. is still deep in a securities class action filed nearly two years ago. The U.S. District Court for the Middle District of Tennessee has granted the motion to dismiss filed by CEO James E. Dalton, Jr. in April this year. The same court had also dropped the cases against all other defendants in the suit filed between October and November 1998. The suit seeks to represent a class of plaintiffs who purchased Quorum's common stock from October 25, 1995 through October 21, 1998. It alleges that the Company violated the Securities Exchange Act of 1934 by materially inflating Quorum's net revenues during the class period. "Quorum intends to vigorously defend the claims and allegations in this action," said the Company in a report to the Securities and Exchange Commission recently. RHYTHMS NETCONNECTIONS: Cauley Geller Files Securities Suit In S.D. NY ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Rhythms Netconnections, Inc. (OTC Bulletin Board: RTHM) securities during the period between April 6, 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) Rhythms, (ii) Merrill Lynch, Pierce Fenner & Smith Inc., (iii) Salomon Smith Barney Inc., (iv) BancBoston Robertson Stephens, (v) Catherine M. Hapka and (vi) Scott C. Chandler 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 ROGERS CABLE: Faces Suit In Ontario For Poor Internet Service ------------------------------------------------------------- Stevenson & Associates and TEPLITSKY COLSON filed recently a class action lawsuit in Ontario, Canada against Rogers Cable, Inc. on behalf of five present or former customers of Rogers@Home Cable Internet Service. The suit made the following allegations: (a) Rogers agreed to provide unlimited access to the Internet and to other information services for fees; (b) when these services were not available Rogers still charged the fees and did not provide adequate credits; (c) if Rogers had a policy of providing credits, the credits were inadequate and not commensurate with the fees paid for the period when the service was inadequate. Rogers Cable, Inc. is a subsidiary of Rogers Communications, Inc., Canada's No.1 cable TV operator with some 2.4 million subscribers throughout New Brunswick, Newfoundland, and Ontario, and it owns more than 240 video stores. In addition, the company owns 51% of Rogers Wireless that operates under the Rogers AT&T Wireless brand, one of Canada's largest mobile phone operators with 3 million customers. Rogers' media operations include 30 radio stations, a Toronto TV station, business and consumer publications, and Internet holdings. For more information, contact: Colin P. Stevenson at 416-865-5313 SAFETY COMPONENTS: Settles Shareholders Lawsuits For $4 Million --------------------------------------------------------------- Safety Components International, Inc. informed the Securities and Exchange Commission recently in a report that it has entered into an agreement last April to settle a consolidated securities suit pending in New Jersey. In its latest regulatory report, the Company said the settlement amounted to $4.0 million. The Company's directors' and officers' insurance carrier will satisfy the settlement obligations and accordingly. As a result, the resolution of the case will have no effect on the Company's financial condition, results of operations or cash flows. Safety Components is a global manufacturer of automotive airbag fabric, cushions, and components. Its airbag components (about 75% of sales) may be found in more than 50 car and truck models worldwide. Safety Components' defense division makes projectiles and other metal components used to produce small-to-medium-caliber military ammunition. SYCAMORE NETWORKS: Stull Stull Files Securities Suit In S.D. New York --------------------------------------------------------------------- Stull, Stull & Brody filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Sycamore Networks, Inc. (NASDAQ:SCMR) common stock between October 21, 1999 and June 28, 2001, inclusive. The complaint alleges that defendants violated the federal securities laws by issuing and selling Sycamore common stock 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 TIBCO SOFTWARE: Cauley Geller Begins 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 Tibco Software, Inc. (Nasdaq: TIBX) securities during the period between July 13, 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) Tibco, (ii) Goldman Sachs & Co., (iii) Bear Stearns & Co., Inc., (iv) BancBoston Robertson Stephens, and (v) Credit Suisse First Boston Corporation For more information, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com TREX COMPANY: Cauley Geller Commences Securities Suit In W.D. Virginia ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Western District of Virginia on behalf of purchasers of Trex Company, Inc. (NYSE: TWP) publicly traded securities during the period between November 2, 2000 and June 18, 2001, inclusive. The complaint charges Trex and certain of its officers and directors with violating the federal securities laws by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Trex securities. For further details, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com TRIAD HOSPITALS: Expects Dismissal Of Suit After Reaching April Deal -------------------------------------------------------------------- Triad Hospitals, Inc. recently informed the Securities and Exchange Commission that it has already negotiated a settlement that will result in the dismissal of the class action filed against the Company and its officers. In its regulatory filing, the Company revealed that the settlement was reached last April. Members of the Company's board of directors were sued in October last year for breach of fiduciary duties and failure to implement reasonable procedures to maximize stockholder value and obtain the highest price reasonably available for the stockholders. The complaint seeks an injunction preventing consummation of the merger, or the Company's acquisition by or business combination with any third party, until the Company adopts and implements a procedure or process, such as an auction, to obtain the highest possible price for the Company's business. Triad Hospitals is one of the largest hospital operators in the US, operating some 50 hospitals and 14 outpatient surgery centers in nearly 20 Sunbelt and western states. Most of its hospitals are in smaller cities, where they face little competition; almost half are in Arizona and Texas. UNO RESTAURANT: Motion To Dismiss DE Shareholders Suit Still Undecided ---------------------------------------------------------------------- A motion to dismiss the shareholders suit against Uno Restaurant Corporation remains undecided by the Court of Chancery of the State of Delaware. In its latest regulatory filing with the Securities and Exchange Commission, the Company expressed uncertainty as to how this suit will end up. Shareholders filed the suit against the Company and members of its senior management in October last year following a proposal by Chairman Aaron D. Spencer to acquire all the outstanding shares of the Company not currently owned by him. Spencer and his family control more than 60% of the company. The Complaint alleges that the intention of the acquisition plan was to freeze out the Company's public shareholders in order to capture for themselves the Company's future potential without paying an adequate or fair price to the public shareholders. Accordingly, this move constituted breach of fiduciary duties to the public shareholders. Uno Restaurant Corporation runs a chain of 180 Pizzeria Uno...Chicago Bar & Grill casual dining restaurants featuring deep-dish pizza, pasta, steak, and chicken dishes. The company owns and operates 110 of the eateries; 60 are run by franchisees. Its restaurants are located in 30 states, Puerto Rico, and South Korea. VIANT CORPORATION: Stull Stull Begins Securities Suit In S.D. New York ---------------------------------------------------------------------- Stull, Stull & Brody filed Wednesday a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Viant Corporation (NASDAQ:VIAN) common stock between June 17, 1999 and July 13, 2001, inclusive. The complaint alleges that defendants violated the federal securities laws by issuing and selling Viant common stock pursuant to the June 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 further information, contact: Stull, Stull & Brody through Tzivia Brody, Esq. by Phone: 1-800-337-4983 (toll free) or by E-mail: SSBNY@aol.com by Fax: 212/490-2022 or by Mail: 6 East 45th Street, New York, NY 10017 XEROX CORPORATION: Adverse Ruling By Judge May Force Payment Of $300M --------------------------------------------------------------------- A ruling recently by a federal court that Xerox Corporation's pension plan was flawed may force the company to pay as much as $300 million to its retirees, the Reuters News Agency reported recently. In any event, at least 25,000 former Xerox workers may receive between $100 million and $300 million, in a formal decision expected within the next few months, the report said. Xerox has practiced giving lump-sum compensation to its workers who retire. A Xerox spokesman said the Company's retirement calculations were proper. He said the company would appeal the ruling. U.S. District Court for the Southern District of Illinois Judge David R. Herndon handed the decision last July 3. The judge said that Xerox incorrectly calculated "lump sum" retirement payments given to departing employees, resulting in lower payments than the workers were due under federal pension-benefits rules. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Larri-Nil Veloso and Lyndsey Resnick, Editors. Copyright 2001. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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