/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/010810.mbx C L A S S A C T I O N R E P O R T E R Friday, August 10, 2001, Vol. 3, No. 156 Headlines AKAMAI TECHNOLOGIES: Milberg Weiss Files Securities Suit BROCADE COMMUNICATION: Stull Stull Says Reports Back Allegations CHRONIMED INC: Pomerantz Haudek Begins Securities Suit DIGITAL RIVER: Milberg Weiss Files Securities Suit in S.D. NY DIGITAL RIVER: Cauley Geller Initiates Suit in S.D. NY DURATEK INC: Pomerantz Haudek Files Securities Suit F5 NETWORKS: Wolf Haldenstein Files Complaint in S.D. NY GOTO.COM INC: Lovell, Sirota File Shareholder Suit in S.D. NY INTERNAP NETWORK: Milberg Weiss Files Securities Complaint MEDIAPLEX INC: Wolf Haldenstein Files Complaint in S.D. NY MICROTUNE INC: Wold Haldenstein Files S.D. NY Securities Suit MORGAN STANLEY: Wolf Haldenstein Files S.D. NY Securities Suit NEXT LEVEL: Milberg Weiss Starts Securities Suit NUANCE COMMUNICATIONS: Wolf Haldenstein Files Suit in S.D. NY PORTAL SOFTWARE: Wolf Haldenstein Files Suit in S.D. NY PSS WORLD: Cauley Geller Starts Securities Lawsuit in S.D. NY QWEST COMMUNICATIONS: Cauley Geller Starts Suit in Colorado REDBACK NETWORKS: Milberg Weiss Commences Securities Suit STARMEDIA NETWORK: Wolf Haldenstein Files Suit in S.D. NY THEGLOBE.COM INC: Bernstein Liebhard Files Securities Suit WAL-MART STORES: Lieff Cabraser Files Wage-Related Suit in NY WEBMD CORP: Weiss & Yourman File Securities Suit in S.D. NY ******* AKAMAI TECHNOLOGIES: Milberg Weiss Files Securities Suit -------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP (www.milberg.com) has filed a class action complaint on behalf of purchasers of the securities of Akamai Technologies, Inc. (NASDAQ: AKAM - news) from October 28, 1999 to December 6, 2000. Investors may sign up online at www.milberg.com/akamai/. For more information, contact Steven G. Schulman or Samuel H. Rudman of Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza, 49th Floor, New York, NY 10119-0165, Phone number: (800) 320-5081, Email: endfraud@milbergNY.com. BROCADE COMMUNICATION: Stull Stull Says Reports Back Allegations ---------------------------------------------------------------- Stull, Stull & Brody announced allegations in cases its firm has filed are supported by recent articles that have appeared in The New York Times and The Wall Street Journal about investigations by the United States Justice Department and the Securities Exchange Commission into the manipulation of IPOs. Among the underwriters named as defendants are: * Credit Suisse First Boston Corp. * The Goldman Sachs Group, Inc. * Lehman Brothers, Inc. * Merrill Lynch, Pierce, Fenner & Smith, Inc. * Morgan Stanley Dean Witter & Co. * BancBoston Robertson, Stephens, Inc. , and * Salomon Smith Barney, Inc. The lawsuits allege that defendants violated the federal securities laws by issuing and selling common stock pursuant to the IPOs 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. Specifically, the complaints allege that in exchange for the excessive commissions, defendants allocated shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of IPO stock rocketed upward (a practice known on Wall Street as laddering) was intended to (and did) drive the share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Among the stocks alleged to have been manipulated: * Chinadotcom Corporation (NASDAQ: CHINA - news) for the class period between July 12, 1999 and June 28, 2001, inclusive; * StarMedia Network, Inc. (NASDAQ: STRM - news) for the class period between May 25, 1999 and December 6, 2000, inclusive; * Brocade Communication Systems, Inc. (NASDAQ: BRCD - news) for the class period between May 24, 1999 and July 17, 2001, inclusive; and * Agency.com, Ltd. (NASDAQ: ACOM - news) for the class period between December 8, 1999 and June 28, 2001, inclusive. Persons who purchased any of the above securities during the class period may request court appointment as lead plaintiff. For more information, contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. CHRONIMED INC: Pomerantz Haudek Begins Securities Suit ------------------------------------------------------ Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) is investigating a class action suit on behalf of purchasers of the securities of Chronimed Inc. (Nasdaq: CHMDE) from October 27, 1999 to June 13, 2001. For more information, contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. DIGITAL RIVER: Milberg Weiss Files Securities Suit in S.D. NY ------------------------------------------------------------- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit on August 8, 2001 on behalf of purchasers of the securities of Digital River, Inc. (NASDAQ: DRIV) between August 11, 1998 and December 6, 2000, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/digitalriver/ The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY against the following defendants: * Digital River * Fleetboston Robertson Stephens * Bear Stearns & Co., Inc. * Credit Suisse First Boston Corporation * Joel A. Ronning, and * Robert E. Strawman. Robertson Stephens, Bear Stearns and Credit Suisse are referred to herein as the Underwriter Defendants. On or about August 11, 1998, Digital River commenced an initial public offering of 3,000,000 of its shares of common stock at an offering price of $8.50 per share. In connection therewith, Digital River filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) The Underwriter Defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Digital River shares issued in connection with the Digital River IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby The Underwriter Defendants agreed to allocate Digital River shares to those customers in the Digital River IPO in exchange for which the customers agreed to purchase additional Digital River shares in the aftermarket at pre- determined prices. Persons who bought the securities of Digital River between August 11, 1998 and December 6, 2000 may, no later than October 8, 2001, request court appointment as lead plaintiff. For more information about this action, contact Steven G. Schulman or Samuel H. Rudman of Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165, Phone number: (800) 320-5081, Email: digitalrivercase@milbergny.com, Website: http://www.milberg.com. DIGITAL RIVER: Cauley Geller Initiates Suit in S.D. NY ------------------------------------------------------ The Law Firm of Cauley Geller Bowman & Coates, LLP announced today a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Digital River, Inc. (Nasdaq: DRIV) securities during the period between August 11, 1998 and December 6, 2000, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/digital_river.pdf. The complaint charges defendants * Digital River * FleetBoston Robertson Stephens * Bear Stearns & Co., Inc. * Credit Suisse First Boston Corporation * Joel A. Ronning, and * Robert E. Strawman 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. On or about August 11, 1998, Digital River commenced an initial public offering of 3 million of its shares of common stock at an offering price of $8.50 per share. In connection therewith, Digital River filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that (i) the Underwriter Defendants (Robertson Stephens, Bear Stearns and Credit Suisse) had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Digital River shares issued in connection with the Digital River IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Digital River shares to those customers in the Digital River IPO in exchange for which the customers agreed to purchase additional Digital River shares in the aftermarket at pre- determined prices. Buyers of the securities of Digital River between August 11, 1998 and December 6, 2000, inclusive, may, no later than October 8, 2001 request court appointment as lead plaintiff. Members of this class can join this class action online at http://www.classlawyer.com/sign_up.html. For more information, contact Jackie Addison, Sue Null or Charlie Gastineau of the Client Relations Department of Cauley Geller Bowman & Coates, LLP, P.O. Box 25438, Little Rock, AR 72221-5438, Toll Free: 1- 888-551-9944, E-mail: info@classlawyer.com, or visit the firm's website at www.classlawyer.com. DURATEK INC: Pomerantz Haudek Files Securities Suit --------------------------------------------------- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) is investigating a class action suit on behalf of purchasers of the securities of Duratek, Inc. (Nasdaq: DRTK) from March 9, 2000 to March 13, 2001. For more information about this action, contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. F5 NETWORKS: Wolf Haldenstein Files Complaint in S.D. NY -------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of F5 Networks, Inc. (Nasdaq: FFIV) securities between June 4, 1999 and December 6, 2000, inclusive, against defendants F5, certain of its officers and directors, and its underwriters. The case name and index number are Atlas v. F5 et al. [01 CIV 7342]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges that defendants violated the federal securities laws by issuing and selling F5 common stock pursuant to the June 4, 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. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated F5 shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of F5 stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive F5's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Persons who purchased F5 securities during the class period may request court appointment as lead plaintiff by October 1, 2001. For more information, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735, via e-mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to F5. GOTO.COM INC: Lovell, Sirota File Shareholder Suit in S.D. NY ------------------------------------------------------------- The law firms of Lovell & Stewart, LLP and Sirota & Sirota, LLP filed a class action lawsuit on August 8, 2001 on behalf of all persons and entities who purchased, converted, exchanged or otherwise acquired the common stock of GoTo.com, Inc. (NasdaqNM:GOTO) between June 18, 1999 and December 21, 2001, inclusive. The lawsuit asserts claims under Section 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. Persons who wish to serve as lead plaintiff must move the Court no later than September 10, 2001. The action, Kassin v. GoTo.com, Inc., is pending in the U.S. District Court for the Southern District of New York (500 Pearl Street, New York, New York), Docket No. 01-CV-7314 (SAS) and has been assigned to the Hon. Shira A. Scheindlin, U.S. District Judge. The complaint alleges that GoTo.com, Inc. and certain of its officers and directors at the time of its IPO violated the federal securities laws by issuing and selling GoTo.com common stock pursuant to the initial public offering without disclosing to investors that at least one of the lead underwriters and four of the other underwriters of the IPO had solicited and received excessive and undisclosed commissions from certain investors. In exchange for the excessive commissions, the complaint alleges, lead underwriter Salomon Smith Barney, Inc. and underwriters FleetBoston Robertson Stephens, Inc., Credit Suisse First Boston Corp., Lehman Brothers, Inc. and Merrill Lynch, Pierce, Fenner & Smith, Inc. allocated GoTo.com shares to customers at the IPO price of $15.00 per share. To receive the allocations (i.e., the ability to purchase shares) at $15.00, the defendant underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of GoTo.com stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive GoTo.com's share price up to artificially high levels. This artificial price inflation, the complaint alleges, enabled both the defendant underwriters and their customers to reap enormous profits by buying GoTo.com stock at the $15.00 IPO price and then selling it later for a profit at inflated aftermarket prices, which rose to an intraday high of $69.98 by July 6, 1999. Rather than allowing their customers to keep their profits from the IPO, the complaint alleges, the defendant underwriters required their customers to "kick back" some of their profits in the form of secret commissions. These secret commission payments were sometimes calculated after the fact based on how much profit each investor had made from his or her IPO stock allocation. The complaint further alleges that defendants violated the Securities Act of 1933 because the Prospectus distributed to investors and the Registration Statement filed with the SEC in order to gain regulatory approval for the GoTo.com offering contained material misstatements regarding the commissions that the underwriters would derive from the IPO and failed to disclose the additional commissions and "laddering" scheme discussed above. Investors who acquired GoTo.com common stock during the period June 18, 1999 through December 21, 2001 inclusive may contact Christopher Lovell, Victor E. Stewart or Christopher J. Gray of Lovell & Stewart, LLP, 212/608-1900, 500 Fifth Avenue, New York, New York 10110, sklovell@aol.com, visit the website at www.lovellstewart.com, or contact Howard B. Sirota or Saul Roffe of Sirota & Sirota, LLP, 212/425-9055, 110 Wall Street, New York, New York 10005, info@sirotalaw.com or visit the website at www.sirotalaw.com. INTERNAP NETWORK: Milberg Weiss Files Securities Complaint ---------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP (www.milberg.com) has filed a class action complaint on behalf of purchasers of the securities of Internap Network Services Corporation (NASDAQ: INAP - news) from September 29, 1999 to December 6, 2000. Investors may sign up online at www.milberg.com/internap/. For more information, contact Steven G. Schulman or Samuel H. Rudman of Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza, 49th Floor, New York, NY 10119-0165, Phone number: (800) 320-5081, Email: endfraud@milbergNY.com. MEDIAPLEX INC: Wolf Haldenstein Files Complaint in S.D. NY ---------------------------------------------------------- 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 Mediaplex, Inc. (Nasdaq: MPLX - news) securities between November 19, 1999 and December 6, 2000, inclusive, against defendants Mediaplex, certain of its officers and directors, and its underwriters. The case name and index number are Atlas v. Mediaplex et al. [01 CIV 7340]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing and selling Mediaplex common stock pursuant to the November 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. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated Mediaplex shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Mediaplex stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive Mediaplex's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Purchasers of Mediaplex securities during the class period may request court appointment as lead plaintiff by September 24, 2001. For more information, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735, via e-mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to Mediaplex. MICROTUNE INC: Wold Haldenstein Files S.D. NY Securities Suit ------------------------------------------------------------- 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 Microtune, Inc. (Nasdaq: TUNE - news) securities between August 4, 2000 and December 6, 2000, inclusive, against defendants Microtune, certain of its officers and directors, and its underwriters. The case name and index number are Atlas v. Microtune et al. [01 CIV 7338]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing and selling Microtune common stock pursuant to the August 4, 2000 IPO without disclosing to investors that some of the underwriters in the offering, including the lead underwriters, had solicited and received excessive and undisclosed commissions from certain investors. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated Microtune shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Microtune stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive Microtune's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Persons who purchased Microtune securities during the class period may request court appointment as lead plaintiff by September 24, 2001. For more information on this action, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 via e-mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to Microtune. MORGAN STANLEY: Wolf Haldenstein Files S.D. NY Securities Suit -------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of America Online/AOL Time Warner (Nasdaq: AOL) securities between August 6, 1998 and May 14, 2001, against investment banker Morgan Stanley Dean Witter & Co. and its star analyst Mary Meeker. The case name and index number are Lloyd v. Morgan Stanley Dean Witter & Co. and Mary Meeker [01 CIV 7263]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing materially false and misleading statements designed to, and successful encouraging, individual investors, including members of the Class, to purchase securities of AOL based not on objective analyses, but rather on defendants' desire to attract and retain AOL's investment banking business. Furthermore, defendant Meeker's ratings, recommendations, and positive comments regarding AOL during the Class Period were also improperly influenced by her desire to increase her undisclosed personal compensation, which depended in large part upon the amount of investment banking business she generated for defendants. Specifically, Meeker's conflicts of interest remained undisclosed as she issued "inflated" ratings and recommendations for AOL. Meeker knew that the financial condition and future business prospects of AOL did not support her positive comments and recommendations, but she nevertheless issued positive reports encouraging investors, including members of the Class, to purchase shares of AOL even in the face of legitimate contrary research entering the marketplace. Meeker knowingly issued inflated ratings for the purpose of improperly benefiting herself and Morgan Stanley. Persons who purchased AOL securities during the class period may request court appointment as lead plaintiff by October 8, 2001. For more information, contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters), via e-mail at classmember@whafh.com or visit our website at http://www.whafh.com.E-mail should refer to AOL-Analyst. NEXT LEVEL: Milberg Weiss Starts Securities Suit ------------------------------------------------ Milberg Weiss Bershad Hynes & Lerach LLP (www.milberg.com) has filed a class action complaint on behalf of purchasers of the securities of Next Level Communications, Inc. (NASDAQ: NXTV - news) from November 9, 1999 to December 6, 2000. Investors may sign up online at www.milberg.com/nextlevel/. For more information, contact Steven G. Schulman or Samuel H. Rudman of Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza, 49th Floor, New York, NY 10119-0165, Phone number: (800) 320-5081, Email: endfraud@milbergNY.com. NUANCE COMMUNICATIONS: Wolf Haldenstein Files Suit in S.D. NY ------------------------------------------------------------- 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 Nuance Communications, Inc. (Nasdaq: NUAN) securities between April 12, 2000 and December 6, 2000, inclusive, against defendants Nuance, certain of its officers and directors, and its underwriters. The case name and index number are Atlas v. Nuance et al. [01 CIV 7344]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing and selling Nuance common stock pursuant to the April 12, 2000 IPO without disclosing to investors that some of the underwriters in the offering, including the lead underwriters, had solicited and received excessive and undisclosed commissions from certain investors. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated Nuance shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Nuance stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive Nuance's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Persons who purchased Nuance securities during the class period may request court appointment as lead plaintiff by October 8, 2001. For more information on this case, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 via e-mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to Nuance. PORTAL SOFTWARE: Wolf Haldenstein Files Suit in S.D. NY ------------------------------------------------------- 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 Portal Software, Inc. (Nasdaq: PRSF) securities between May 5, 1999 and December 6, 2000, inclusive, against defendants Portal, certain of its officers and directors, and its underwriters. The case name and index number are Toennesmann v. Portal et al. [01 CIV 7339]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing and selling Portal common stock pursuant to the May 5, 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. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated Portal shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Portal stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive Portal's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Persons who purchased Portal securities during the class period may request court appointment as lead plaintiff by September 7, 2001. For more information, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at +1-800-575-0735, via e-mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to Portal. PSS WORLD: Cauley Geller Starts Securities Lawsuit in S.D. NY ------------------------------------------------------------- The Law Firm of Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Middle District of Florida on behalf of purchasers of PSS World Medical, Inc. (Nasdaq: PSSI) publicly traded securities during the period between October 26, 1999 and September 1, 2000, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/pss_world.pdf. The complaint charges PSSI 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 PSSI securities. Throughout the Class Period, defendants issued multiple press releases and filed quarterly reports and an annual report with the Securities and Exchange Commission which materially overstated the Company's net income in violation of Generally Accepted Accounting Principles. On June 22, 2000, defendants issued a press release announcing PSSI's year end results and the fact that it had entered into a definitive stock- for-stock merger agreement with Fisher Scientific International, Inc. The market reacted favorably to this announcement because of the value of the exchange ratio of Fisher's shares. One of the key terms of the merger, which was belatedly disclosed by the Company, was that the Company had to report EBITDA of not less than $23 million for the quarter in order for the merger to be consummated. In an August 8, 2000 press release, defendants announced that they were in compliance with this provision of the merger agreement and that the merger was expected to proceed. On September 1, 2000, the Company issued a press release reporting that the merger agreement had been terminated. In response to this announcement, the market reevaluated the true value of PSSI's shares, which had been buoyed by the potential exchange value of Fisher's stock during the Class Period, and, accordingly, shares of PSSI's stock, which had closed at $6-3/8 prior to announcement of the merger termination, closed at $4- 13/16 on an inordinate volume of 5,730,200 shares upon dissemination of the news. As the sell-off continued, the price of the Company's stock settled into the range of approximately $2-3/4 - $3-3/4. While Fisher had abandoned the merger because of the results of its own due diligence review of the Company's books and records, the public only became aware of the truth on June 27, 2001. On that date, PSSI filed its Form 10-K for the fiscal year ended March 31, 2001 with the SEC and disclosed, for the first time, the fact that the Company's internal controls over inventory, accounts payable, sales, and accounts receivable were, at all relevant times, materially deficient and the Company had previously issued financial statements for the quarter ended June 30, 2000 which were materially misleading. As a result of these problems, the Company would be forced to restate its previous financial data, and would also cause the Company's EBITDA to be reduced, below the threshold that would have allowed the merger to be completed. Persons who bought the publicly traded securities of PSSI between October 26, 1999 and September 1, 2000, inclusive, may, no later than September 11, 2001, request court appointment as lead plaintiff. Members of this class can join this class action online at http://www.classlawyer.com/sign_up.html. For more information on this action, contact Jackie Addison, Sue Null or Charlie Gastineau, Client Relations Department, Cauley Geller Bowman & Coates, LLP, P.O. Box 25438, Little Rock, AR 72221-5438, Toll Free: 1-888-551-9944, E-mail: info@classlawyer.com, www.classlawyer.com. QWEST COMMUNICATIONS: Cauley Geller Starts Suit in Colorado ----------------------------------------------------------- The Law Firm of Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the District of Colorado on behalf of purchasers of Qwest Communications International Inc. (NYSE: Q) publicly traded securities during the period between March 22, 2001 and July 23, 2001, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/qwest.pdf. The complaint charges Qwest and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that on March 22, 2001, defendants Joseph Nacchio and Robin Szeliga appeared at a UBS Warburg hosted senior management meeting where they falsely claimed that they would legitimately achieve 1Q01 and FY01 EPS of $0.11 and $0.59, respectively. On April 24, 2001, Qwest reported its financial results for 1Q01, including revenue growth of 12% and EBITDA growth of 16%. Subsequent to these statements, Qwest's stock price increased, trading as high as $41.83 on April 30, 2001. In fact, Qwest's 1Q01 results and its statements regarding those results as well as the statements regarding the success of the integration with U.S. West Inc. and the Company's strong expense controls were materially false and misleading due to the Company's improper valuation of KPNQwest in violation of Generally Accepted Accounting Principles (as the value of its investment in KPNQwest had already declined months earlier), and due to the following undisclosed facts: (a) Qwest's 1Q01 earnings were better than expectations primarily due to its change in the discount rate to calculate its pension obligations, increasing Qwest's 1Q01 results by at least $0.03; (b) Qwest's 1Q01 earnings were better than expectations due to defendants' failure to properly "write-down" the value of Qwest's holdings in KPNQwest, which was materially overstated as a result; (c) Qwest's 1Q01 earnings were increased by $0.01-$0.02 due to its aggressive use of capitalization to classify tens of millions of dollars of interest and software development costs as assets rather than expenses, which would contribute to decreased earnings in future quarters; (d) there was no way Qwest's future earnings would be nearly as strong as represented due in part to the accounting manipulations defendants engaged in which would adversely affect future results, as expenses were being deferred to future quarters and years; and (e) Qwest's selling, general and administrative expenses were only 22% of sales, not due to tight expense controls as represented, but to improper classification of SG&A expenses as cost of sales. Subsequently, on July 20, 2001, Qwest admitted that its classification of costs had been incorrect such that cost of sales had been overstated and SG&A expenses had been understated. As a result of defendants' issuance of alleged material and misleading statements (including a false 1Q01 financial statement), Qwest's stock traded as high as $41.83 per share. The individual defendants took advantage of this inflation, selling 1,255,000 shares of their Qwest stock for proceeds of $49.5 million. Ultimately, on July 24, 2001, Qwest conceded that it recorded a write-down of over $3.1 billion, primarily related to its ownership in KPNQwest. Upon this admission/revelation, Qwest's shares dropped once again, trading below $27. Persons who bought the publicly traded securities of Qwest between March 22, 2001 and July 23, 2001, inclusive, no later than September 25, 2001, request court appointment as lead plaintiff. Members of this class can join this class action online at http://www.classlawyer.com/sign_up.html. For more information, contact Jackie Addison, Sue Null or Charlie Gastineau of the Client Relations Department of Cauley Geller Bowman & Coates, LLP, P.O. Box 25438, Little Rock, AR 72221-5438, Toll Free: 1-888-551-9944, E-mail: info@classlawyer.com. REDBACK NETWORKS: Milberg Weiss Commences Securities Suit --------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP (www.milberg.com) has filed a class action complaint on behalf of purchasers of the securities of Redback Networks, Inc. (NASDAQ: RBAK - news) from May 17, 1999 to December 6, 2000. Investors may sign up online at www.milberg.com/redback/. For more information, contact Steven G. Schulman or Samuel H. Rudman of Milberg Weiss Bershad Hynes & Lerach LLP, One Pennsylvania Plaza, 49th Floor, New York, NY 10119-0165, Phone number: (800) 320-5081, Email: endfraud@milbergNY.com. STARMEDIA NETWORK: Wolf Haldenstein Files Suit in S.D. NY --------------------------------------------------------- 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 StarMedia Network, Inc. (Nasdaq: STRM) securities between May 25, 1999 and December 6, 2000, inclusive, against defendants StarMedia, certain of its officers and directors, and its underwriters. The case name and index number are Arneson v. StarMedia et al. [01 CIV 7341]. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com. The complaint alleges defendants violated the federal securities laws by issuing and selling StarMedia common stock pursuant to the May 25, 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. Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated StarMedia shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of StarMedia stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive StarMedia's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices. Persons who purchased StarMedia securities during the class period may request court appointment as lead plaintiff by September 24, 2001. For more information on this action, contact Fred Taylor Isquith, Esq., Gregory Nespole, Esq., Thomas Burt, Esq., Gustavo Bruckner, Esq., Michael Miske, or George Peters of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735, via e- mail at classmember@whafh.com or visit the website at http://www.whafh.com.E-mail should refer to StarMedia. THEGLOBE.COM INC: Bernstein Liebhard Files Securities Suit ----------------------------------------------------------- A securities class action lawsuit was commenced on behalf all persons who acquired TheGlobe.com, Inc. (OTC BB: TGLO) securities between November 12, 1998 and December 6, 2000. A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP at www.bernlieb.com. The case is pending in the United States District Court for the Southern District of New York located at 500 Pearl Street, New York, New York 10004. Named as defendants in the complaint are: * TheGlobe.com * Michael Egan * Todd Krizelman * Stephan Paternot * Frank Joyce * Bear, Stearns & Co., Inc. Bear Stearns is one of the lead underwriters of TheGlobe.com's initial public offering. The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 for issuing a Registration Statement and Prospectus that contained materially false and misleading information and failed to disclose material information. The Prospectus was issued in connection with TheGlobe.com's initial public offering of 5.9 million shares of common stock at $17.00 per share that was commenced on or about December 13, 1999. The complaint alleges that the Prospectus was false and misleading because it failed to disclose: (i) Bear Stearns' agreement with certain investors to provide them with significant amounts of TheGlobe.com shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between Bear Stearns and certain of its customers whereby BearStearns would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase TheGlobe.com shares in the after-market at pre- determined prices. The Securities and Exchange Commission and the U.S. Attorneys' Office are investigating underwriting practices in connection with numerous initial public offerings that were completed in 1999 and 2000. Persons who seek court appointment as lead plaintiff must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 2, 2001. For more information, contact Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or by e-mail at TGLO@bernlieb.com. or contact us at (800)217-1522 or by email at TGLO@bernlieb.com. WAL-MART STORES: Lieff Cabraser Files Wage-Related Suit in NY ------------------------------------------------------------- A class-action lawsuit was filed against Wal-Mart Stores Inc. (NYSE: WMT) in a New York State court on Thursday, August 9. The report by Reuters says lawyers for the plaintiffs announced the suit charges the Bentonville, Arkansas-based retailer with unfair labor practices, including forcing employees to work off- the- clock. A spokesman for Lieff, Cabraser, Heimann & Bernstein told Reuters the suit is similar to cases against Wal-Mart pending in 11 other states. A statement by the law firm said Wal-Mart is engaged in a "pattern and practice of deceptively underpaying employees" who were reportedly "locked in" the stores after they had clocked out. The statement said the employees were made to continue working until they finished assigned tasks. The suit charges the retailer denied pay for time worked off-the- clock and overtime. Employees were also reportedly denied meal and rest breaks. The press release said other allegations would be discussed at a Thursday morning news conference in New York. WEBMD CORP: Weiss & Yourman File Securities Suit in S.D. NY ----------------------------------------------------------- A class action lawsuit against the lead underwriters of WebMD Corp. (NASDAQ:HLTH) was commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased WebMD securities between February 10, 1999 and December 6, 2000, inclusive. The complaint charges defendants Goldman Sachs & Co. and Morgan Stanley & Co., Incorporated with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about February 10, 1999, WebMD commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $8 per share. The complaint alleges that the registration statement and prospectus filed in connection with the IPO was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of WebMD shares issued in connection with the IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate WebMD shares to those customers in the IPO in exchange for which the customers agreed to purchase additional WebMD shares in the aftermarket at pre- determined prices. Persons who purchased WebMD securities between February 10, 1999 and December 6, 2000 may move the Court no later than September 21, 2001 to serve as a lead plaintiff of the class. To receive an investor package or acquire more information on this action, contact James E. Tullman, David C. Katz, and/or Mark D. Smilow, (888) 593-4771 or (212) 682-3025, via Internet electronic mail at info@wynyc.com or by writing Weiss & Yourman, The French Building, 551 Fifth Avenue, Suite 1600, New York, New York 10176. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Larri-Nil Veloso and Lyndsey Resnick, Editors. Copyright 2001. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e- mail. 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