CAR_Public/010928.mbx             C L A S S   A C T I O N   R E P O R T E R

           Friday, September 28, 2001, Vol. 3, No. 190

                          Headlines


AGENCY.COM: Wolf Popper Commences Securities Suit in New York
AIRSPAN NETWORKS: Bernstein Liebhard Lodges Securities Suit in S.D. NY
AVENUE A: Wolf Popper Initiates Securities Suit In New York Court
CREDIT SUISSE: Details Allegations In IPO-Related Securities Suits
CRITICAL PATH: Bernstein Liebhard Initiates S.D. NY Securities Suit

CYBERSOURCE CORPORATION: Bernstein Liebhard Files NY Securities Suit
DURATEK INC.: Mark McNair Commences Securities Suit in Maryland Court
EMEX CORPORATION: Mark McNair Initiates Securities Suit in S.D. NY
GRAND TOYS: New York District Court Approves $1.975 Million Settlement
IMPERIAL CREDIT: CA District Court Grants Motion For Summary Judgment

IMPERIAL CREDIT: District Court Strikes Certification Motion, Appeal
INTEGRATED INFORMATION: Bernstein Liebhard Files Securities Suit in NY
INTERNET CAPITAL: Wolf Popper Initiates Securities Suit in S.D. NY
LOUDEYE TECHNOLOGIES: Federman Sherwood Initiate NY Securities Suit
MCAFEE.COM: Milberg Weiss Commences Securities Suit in S.D. NY

MCDATA CORPORATION: Bernstein Liebhard Files S.D. NY Securities Suit
OMNISKY CORPORATION: Bernstein Liebhard Lodges Securities Suit in NY
OPENTV CORPORATION: Milberg Weiss Commences S.D. NY Securities Suit    
PSI TECHNOLOGIES: Schiffrin Barroway Initiates Securities Suit in NY
PSI TECHNOLOGIES: Cauley Geller Lodges Securities Suit in S.D. NY

RITE AID: Settles Pennsylvania Securities Suit For $45 Million          
STARMEDIA NETWORKS: Bernstein Liebhard Files S.D. NY Securities Suit   
TOBACCO LITIGATION: Court Orders Replacement Of Nine Jurors in LA Suit
TRANSMETA CORPORATION: Mark McNair Initiates N.D. CA Securities Suit
VICINITY CORPORATION: Bernstein Liebhard Files Securities Suit in NY


                          *********


AGENCY.COM: Wolf Popper Commences Securities Suit in New York
-------------------------------------------------------------
Wolf Popper, LLP filed a securities class action suit on behalf of
purchasers of securities of Agency.com, Inc. (NASDAQ: ACOM) from
December 8,1999 to December 6,2000.

The suit was filed in the United States District Court for the Southern
District of New York and names as defendants:

     (1) Agency.com,

     (2) Goldman Sachs & Co.,

     (3) Salomon Smith Barney, Inc.,

     (4) Chan Suh,

     (5) Kyle Shannon,

     (6) Kenneth Trush and

     (7) Charles Dickson.

The suit alleges that the defendants violated federal securities laws
inasmuch as the Prospectuses for those IPOs failed to disclose, among
other things, that:

     (i) the underwriters had solicited and received excessive and
         undisclosed commissions from certain investors; and

    (ii) the underwriters had entered into agreements with customers
         whereby they agreed to allocate the Company's shares to those
         customers in the Company's IPOs in exchange for the
         customers' agreements to purchase additional shares in the
         aftermarket at pre-determined prices.

Those alleged undisclosed agreements caused the common stock of the
Company to trade at inflated prices during the class periods alleged in
the complaints.

For more information, contact: Robert C. Finkel, Esq. by Mail: 845
Third Avenue, New York, NY 10022-6689 by Phone: 212.451.9620 or
212.759.4600 by Fax: 212.486.2093 or 877.370.7704 by E-Mail:
irrep@wolfpopper.com or rfinkel@wolfpopper.com or visit the firm's
Website: www.wolfpopper.com


AIRSPAN NETWORKS: Bernstein Liebhard Lodges Securities Suit in S.D. NY
----------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Airspan NETWORKS INC.
(NASDAQ: AIRN) securities between July 20, 2000 and December 6, 2000.
The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are Airspan and:

     (1) Eric D. Stonestrom,

     (2) Joseph J. Caffarelli,

     (3) Credit Suisse First Boston Corporation,

     (4) Deutsche Bank Securities Inc.,

     (5) Lehman Brothers, Inc., and

     (6) U.S. Bancorp Piper Jaffray Inc.

The complaint charges defendants with violations of the Securities Act
of 1933 and the Securities Exchange Act of 1934 for 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 Airspan's initial public
offering of 5.5 million shares of common stock at $15.00 per share that
was completed on or about July 20, 2000.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted Airspan
         shares in the IPO in exchange for exorbitant and undisclosed
         commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase Airspan shares in the
         after-market at pre-determined prices.

For more information, contact Ms. Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: (800) 217-1522 or 212-779-1414 by E-mail: AIRN@bernlieb.com or
visit the firm's Website: www.bernlieb.com


AVENUE A: Wolf Popper Initiates Securities Suit In New York Court
-----------------------------------------------------------------
Wolf Popper, LLP filed a securities class action suit on behalf of
purchasers of securities of Avenue A, Inc. (NASDAQ: AVEA) in the period
from February 28,2000 to July 11,2000.

The suit was filed in the United States District Court for the Southern
District of New York and names as defendants:

     (1) Avenue A,

     (2) Morgan Stanley & Co.,

     (3) Salomon Smith Barney, Inc.,

     (4) Brian P. McAndrews,

     (5) Nicolas J. Hanauer and

     (6) Robert M. Littauer.

The suit 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.

The suit further alleges that the defendants violated federal
securities laws inasmuch as the Prospectuses for those IPOs failed to
disclose, among other things, that:

     (i) the underwriters had solicited and received excessive and
         undisclosed commissions from certain investors; and

    (ii) the underwriters had entered into agreements with customers
         whereby they agreed to allocate the Company's shares to those
         customers in the Company's IPOs in exchange for the
         customers' agreements to purchase additional shares in the
         aftermarket at pre-determined prices.

Those foregoing undisclosed agreements caused the common stock of the
Company to trade at inflated prices during the class periods alleged in
the complaints.

For more information, contact: Robert C. Finkel, Esq. by Mail: 845
Third Avenue, New York, NY 10022-6689 by Phone: 212.451.9620 or
212.759.4600 by Fax: 212.486.2093 or 877.370.7704 by E-Mail:
irrep@wolfpopper.com or rfinkel@wolfpopper.com or visit the firm's
Website: www.wolfpopper.com


CREDIT SUISSE: Details Allegations In IPO-Related Securities Suits
------------------------------------------------------------------
Credit Suisse detailed allegations against its investment banking arm
Credit Suisse First Boston (CSFB) related to the handling of hot U.S.
share offerings in the market boom which fizzled early last year.

In a regulatory filing tied to the listing of its shares in the United
States, the Company noted that several U.S. authorities are
investigating how Wall Street firms including CSFB allocated IPO stock
to investors, especially in 1999 and 2000, when demand for hot stock
offerings often sent shares soaring on their debut.

Starting in January 2001, a large number of class action suits were
filed in the United States federal courts against several investment
firms, alleging violation of antitrust laws in connection with IPO
allocations. The Company was named as a defendant in suits relating to
two IPOs, Linux and Covad Communications, a California-based internet
communications provider which filed for bankruptcy in August.

Most of the suits allege the registration and prospectus misrepresented
information about commissions paid to CSFB by some customers who
received IPO allocations in connection with ``subsequent securities
transactions''. CSFB said underwriter banks were alleged to have
conspired to require customers to pay commissions equal to about 33
percent of customers' profits in exchange for IPO allocations.
The suits also alleged underwriters required customers, in exchange for
IPO allocations, to purchase the IPO securities at above-offering
prices, artificially inflating the market price.

A class action suit was also filed on August 2 against CSFB and five
other firms in the U.S. District Court for the Southern District of New
York alleging they issued research reports which included ``buy''
recommendations which increased stock prices.The reports were allegedly
misleading because they did not disclose alleged financial interests of
the analyst or investment banks.

The Company is cooperating with U.S. authorities in the investigations,
which also involve several other U.S. investment banks, according to a
report on the Company's website.

Responding in part to the investigations, CS in July hired Wall Street
veteran John Mack as head of CSFB to lead a reorganization of the firm
and tighten controls.


CRITICAL PATH: Bernstein Liebhard Initiates S.D. NY Securities Suit
-------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Critical Path, Inc.
(NASDAQ: CPTH) securities between March 29, 1999 and December 6, 2000.
The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are Critical Path and:

     (1) Douglas T. Hickey,

     (2) David Thatcher,

     (3) BancBoston Robertson Stephens, Inc.,

     (4) Dain Rauscher Wessels and

     (5) Hambrecht & Quist LLC.

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 Critical Path's initial
public offering of 4.5 million shares of common stock at $24.00 per
share that was completed on or about March 29, 1999.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted
         Critical Path shares in the IPO in exchange for exorbitant and
         undisclosed commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase Critical Path shares in
         the after-market at pre-determined prices.

For more information, contact Ms. Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: (800) 217-1522 or 212-779-1414 by E-mail: CPTH@bernlieb.com or
visit the firm's Website: www.bernlieb.com


CYBERSOURCE CORPORATION: Bernstein Liebhard Files NY Securities Suit
--------------------------------------------------------------------
Bernstein Liebhard and Lifshitz filed a securities class action lawsuit
on behalf all persons who acquired CyberSource Corporation (NASDAQ:
CYBS) securities between June 23, 1999 and December 6, 2000.
The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are CyberSource and:

     (1) William S. McKiernan,

     (2) Charles E. Noreen, Jr.,

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

     (4) Goldman Sachs & Co. and

     (5) BancBoston Robertson Stephens, Inc.

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 CyberSource's initial
public offering of four million shares of common stock at $11.00 per
share that was commenced on or about June 23, 1999.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of CyberSource shares
         in the IPO in exchange for exorbitant and undisclosed
         commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase CyberSource shares in the
         after-market at pre-determined prices.

For more information, contact Ms. Linda Flood by Mail: 10 East 40th
Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-
1414 by E-mail: CYBS@bernlieb.com or visit the firm's Website:
www.bernlieb.com


DURATEK INC.: Mark McNair Commences Securities Suit in Maryland Court
---------------------------------------------------------------------
The Law Offices of Mark McNair filed a complaint alleging violations of
federal securities laws by Duratek, Inc. (Nasdaq: DRTK) on behalf of
purchasers of Duratek common stock between March 9, 2000 and March, 13,
2001.

The suit was filed in the United States District Court for the District
of Maryland and names as defendants:

     (1) Duratek, Inc.

     (2) GTS Duratek,

     (3) Chief Executive Officer and President Robert E. Prince,

     (4) Chief Financial Officer and Executive Vice President Robert F.
         Shawver.

The suit alleges violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10(b)-5 promulgated
thereunder. The complaint alleges that the defendants reported false
and misleading financial statements in violation of generally accepted
accounting principles. The suit also asserts that the defendants
employed devices or schemes to defraud and engaged in ".acts, practices
and a course of conduct in an effort to maintain artificially high
market prices for Duratek common stock."

For more information, contact The Law Office Of Mark McNair by Mail:
1819 Pennsylvania Ave., N. W. Suite 550, Washington D.C. 20006 by
Phone: (877) 511-4717 by Fax: (202) 872-4718 or view the complaint at
the Website: www.justice4investors.com


EMEX CORPORATION: Mark McNair Initiates Securities Suit in S.D. NY
------------------------------------------------------------------
The Law Offices of Mark McNair filed a complaint alleging violations of
federal securities laws by Emex Corporation (Nasdaq: EMEX) on behalf of
purchasers of EMEX between April 9, 2001 and May 23, 2001.

The suit was filed in the United States District Court for the Southern
District of New York and names as defendants the Company, President and
Chief Executive Officer Walter W. Tyler, Treasurer and Chief Finance
Officer Milton E. Stanson.

The suit asserts claims under Section 10(b) of the Securities Act of
1934 and Rule 10b(5) promulgated thereunder, stating that the
defendants:

     (1) employed schemes, artifices and a course of action to defraud

     (2) failed to disclose material information

     (3) engaged in acts, practices and a course of business which
         operated as fraud and deceit upon the members of the class in
         connection with their purchases of Company stock.

The Company allegedly made a false and misleading press release on
April 9, 2001 concerning its successful attempt to secure much-needed
financing. The Company indicated that due to the efforts of Credit
Suisse First Boston it had obtained $100 million in project financing
to build the first of a series of plants and Emex stock soared 13%.

On May 23, 2001 Dow Jones Newswires broke the news that Credit Suisse
First Boston was not involved in the financing and that, in fact, CSFB
had turned down the proposal. On May 30, 2001 issued another press
release indicating that Fieldstone, not CSFB, was the institution
behind the financing.

For more information, contact The Law Office of Mark McNair by Mail:
1819 Pennsylvania Avenue, N.W. Suite 550 Washington, D.C. 20006 by
Phone: (877) 511-4717 by Fax: (202) 872-4718 or visit the Website:
www.justice4investors.com


GRAND TOYS: New York District Court Approves $1.975 Million Settlement
----------------------------------------------------------------------
The United States District Court for the Southern District of New York
approved the $1.975 million settlement of a purported class action
filed against Grand Toys International, Inc.

The suit against the Company and certain of its current and former
directors, alleged the Company's August 4, 1999 press release
announcing an exclusive license to manufacture and distribute products
in Canada based upon the "Pokemon" video game and television series was
misleading. The license had not yet been executed. When ultimately
executed three weeks later, it was non-exclusive. The complaint further
alleges that this affected the market price of the Company's stock
during the three-week period. Two of the Company's directors, who were
not employed by the Company during the period in question, were
dismissed from the case.

The settlement was effected without any admission of liability on the
part of the defendants, and each of them expressly deny any wrongdoing
or liability, whatsoever. The settlement will result in minimal cost to
the Company as a result of coverage under the Company's directors and
officers (D & O) liability insurance policy.

Founded in 1960, Grand Toys International, Inc. is a licensee and
distributor of a wide variety of toys and ancillary items in Canada and
since January 1999, a supplier of proprietary products in the United
States.


IMPERIAL CREDIT: CA District Court Grants Motion For Summary Judgment
---------------------------------------------------------------------
The U.S. District Court for the Central District of California granted
Imperial Credit Industries, Inc.'s motion for summary judgment in the
securities class action suit filed against them.

The consolidated securities class action was filed in 1998 on behalf of
purchasers of the company's securities from January 29, 1998 to October
1, 1998 against the Company and three of its directors. Plaintiffs
allege that defendants made false and misleading statements and omitted
the truth concerning the value of Imperial Credit Industries, Inc.'s
investments in Southern Pacific Bank Corporation, resulting to an
artificial inflation of the price of the Company's securities.

The Court dismissed without prejudice the original complaint and a
subsequent amended complaint. On February 22, 2000, the Court denied
the defendants' motion to dismiss plaintiffs' second amended
consolidated class action complaint.

The plaintiffs also moved for class certification in March 2000 and in
August 2000, the Court granted plaintiffs' motion for class
certification.

Early this year, the Court granted plaintiffs leave to file a third
amended complaint, in which plaintiffs added a new defendant, KPMG LLP,
the company's independent auditor. The defendants have answered the
third amended complaint and asserted a number of affirmative defenses.


IMPERIAL CREDIT: District Court Strikes Certification Motion, Appeal
--------------------------------------------------------------------
The United States District Court for the Central District of California
struck the plaintiff's motion for class certification in the securities
suit against Imperial Credit Commercial Mortgage Invesment Corporation.
The District Court also ordered plaintiff to take further action to
give proper notice to potential class members.

The suit was filed last year by John Huston purportedly on behalf of a
class of shareholders of ICCMIC who purchased shares of ICCMIC at any
time between October 22, 1997 and October 21, 1999. The suit names the
Company and three of its directors, one a former director of parent
company Imperial Credit Industries, Inc., as defendants.

The complaint alleges that the Company's prospectus issued in
connection with its initial public offering in October 1997 contained
material omissions and misrepresentations concerning:

     (1) the expenses to be incurred by the Company,

     (2) the Company's ability to reduce the base management fee paid
         to the Company's management company,

     (3) the management agreement termination fee payable to the
         Company's management company in the event that the Company
         terminated the management agreement, and

     (4) certain conflicts of interest.

The complaint also alleges a claim under Section 11 of the Securities
Act of 1933.

On April 4, 2000, defendants moved to dismiss the complaint pursuant to
Rule 12(b)(6) of the Federal Rules of Civil Procedure but the Court
denied the motion. The plaintiff moved for class certification in July
2000. On October 17, 2000, the Court stayed all proceedings and
certified for interlocutory appeal to the Ninth Circuit Court of
Appeals its order denying the defendants' motion to dismiss. On January
12, 2001, the Ninth Circuit Court of Appeal denied the defendants'
petition for permission to appeal.



INTEGRATED INFORMATION: Bernstein Liebhard Files Securities Suit in NY
----------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Integrated
Information Systems, Inc. (NASDAQ: IISX) securities between March 17,
2000 and December 6, 2000.The case is pending in the United States
District Court for the Southern District of New York.

Named as defendants in the complaint are Integrated and:

     (1) James G. Garvey, Jr.,

     (2) David Wirthlin,

     (3) Alan Hald,

     (4) Daniel Foreman,

     (5) Stephen Lindstrom,

     (6) Daniel Roche,

     (7) Keith Walz,

     (8) FleetBoston Robertson Stephens Inc.,

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

    (10) Robert W. Baird & Co. Incorporated and

    (11) Legg Mason Wood Walker, Incorporated.

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 Integrated's initial
public offering of 4.6 million shares of common stock at $15.00 per
share that was completed on or about March 17, 2000.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted
         Integrated shares in the IPO in exchange for exorbitant and
         undisclosed commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase Integrated shares in the
         after-market at pre-determined prices.

For more details, contact Ms. Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: (800) 217-1522 or 212-779-1414 by E-mail: IISX@bernlieb.com or
visit the firm's Website: www.bernlieb.com


INTERNET CAPITAL: Wolf Popper Initiates Securities Suit in S.D. NY
------------------------------------------------------------------
Wolf Popper, LLP commenced a securities class action suit on behalf of
purchasers of Internet Capital Group, Inc. stock during the period
starting August 4, 1999 and ending December 6, 2000.

The suit was filed in the United States District Court for the Southern
District of New York against defendants:

     (1) Internet Capital Group, Inc.,

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

     (3) BancBoston Robertson Stephens,

     (4) Goldman, Sachs & Co.,

     (5) Lehman Brothers, Inc.,

     (6) Walter W. Buckley, III and

     (7) David D. Gathman.

The complaint alleges that defendants disseminated materially false and
misleading information in connection with Internet Capital's initial
public offering on or about August 4, 1999 and Internet Capital's
secondary offering on or about December 16, 1999. The suit also asserts
claims for 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.

Specifically, the complaint alleges that the prospectuses filed in
connection with the Internet Capital IPO and the Secondary Offering
were materially false and misleading because they failed to disclose,
among other things, that:

     (i) Merrill Lynch and Robertson Stephens had solicited and
         received excessive and undisclosed commissions from certain
         investors in exchange for which Merrill Lynch and Robertson
         Stephens allocated to those investors material portions of the
         restricted number of Internet Capital shares issued in
         connection with the Internet Capital IPO; and    
     
    (ii) Merrill Lynch and Robertson Stephens had entered into
         agreements with customers whereby Merrill Lynch and Robertson
         Stephens agreed to allocate Internet Capital shares to those
         customers in the Internet Capital IPO in exchange for which
         the customers agreed to purchase additional Internet Capital
         shares in the aftermarket at pre-determined prices.

For more information, contact: Robert C. Finkel, Esq. by Mail: 845
Third Avenue, New York, NY 10022-6689 by Phone: 212.451.9620 or
212.759.4600 by Fax: 212.486.2093 or 877.370.7704 by E-Mail:
irrep@wolfpopper.com or rfinkel@wolfpopper.com or visit the firm's
Website: www.wolfpopper.com


LOUDEYE TECHNOLOGIES: Federman Sherwood Initiate NY Securities Suit
-------------------------------------------------------------------
Federman & Sherwood commenced a class action lawsuit in the United
States District Court for the Southern District of New York, on behalf
of purchasers of Loudeye Technologies, Inc. (Nasdaq:LOUD) securities
between March 15, 2000 and Dec. 6, 2000, inclusive, against defendants
Loudeye, certain of its officers and directors, and its underwriters.

The complaint alleges that defendants violated the federal securities
laws by issuing and selling Loudeye common stock pursuant to the March
15, 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 Loudeye shares to customers at the
IPO price. To receive the allocations at the IPO price, the
underwriters' brokerage customers allegedly 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 Loudeye stock rocketed
upward (a practice known on Wall Street as "laddering") was intended to
(and did) drive Loudeye'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 profit at inflated aftermarket prices.

For more information, contact William B. Federman by Mail: 120 N.
Robinson, Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560
by Fax: (405) 239-2112 or by E-mail: wFederman@aol.com


MCAFEE.COM: Milberg Weiss Commences Securities Suit in S.D. NY
--------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach, LLP filed recently a class action
lawsuit on behalf of purchasers of the securities of McAfee.com
Corporation (NASDAQ: MCAF) between December 1,1999 and December 6,
2000, inclusive. The action was filed against the Company's
underwriters Morgan Stanley & Co., Incorporated and FleetBoston
Robertson Stephens, Inc. in the United States District Court for the
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.

On or about December 1, 1999, McAfee commenced an initial public
offering of 6.25 million of its shares of common stock at an offering
price of $12 per share. In connection therewith, McAfee 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:

     (1) 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
         McAfee shares issued in connection with the McAfee IPO; and

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

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 or visit the firm's Website: www.milberg.com


MCDATA CORPORATION: Bernstein Liebhard Files S.D. NY Securities Suit
--------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP filed a securities class action
lawsuit on behalf all persons who acquired McData Corporation (NASDAQ:
MCDT) securities between August 9, 2000 and December 6, 2000.
The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are McData and:

     (1) John F. McDonnell,

     (2) Dee J. Perry,

     (3) Credit Suisse First Boston Corporation,

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

     (5) Bear, Stearns & Co., Inc., and

     (6) FleetBoston Robertson Stephens.

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 McData's initial public
offering of 12,500,000 shares of common stock at $28.00 per share that
was completed on or about August 9, 2000.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted McData
         shares in the IPO in exchange for exorbitant and undisclosed
         commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase McData shares in the
         after-market at pre-determined prices.

For more information, contact Ms. Linda Flood by Mail: 10 East 40th
Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-
1414 by E-mail: MCDT@bernlieb.com or visit the firm's Website:
www.bernlieb.com


OMNISKY CORPORATION: Bernstein Liebhard Lodges Securities Suit in NY
--------------------------------------------------------------------
Bernstein Liebhard and Lifsbitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired OmniSky Corp.
(NASDAQ: OMNY) securities between September 25, 2000 and December 6,
2000. The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are OmniSky and:

     (1) Patrick S. McVeigh,

     (2) Lawrence S. Winkler,

     (3) Michael J. Malesardi,

     (4) Credit Suisse First Boston Corporation,

     (5) Chase Securities, Inc.,

     (6) Donaldson, Lufkin & Jenrette Securities Corporation and

     (7) Salomon Smith Barney, Inc.

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 OmniSky's initial public
offering of 9.1 million shares of common stock at $12.00 per share that
was completed on or about September 25, 2000.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted OmniSky
         shares in the IPO in exchange for exorbitant and undisclosed
         commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase OmniSky shares in the
         after-market at pre-determined prices.

For more information, contact Ms. Linda Flood by Mail: 10 East 40th
Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-
1414 by E-mail: OMNY@bernlieb.com or visit the firm's Website:
www.bernlieb.com


OPENTV CORPORATION: Milberg Weiss Commences S.D. NY Securities Suit    
----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach, LLP filed recently a class action
lawsuit on behalf of purchasers of the securities of OpenTV Corporation  
(NASDAQ:OPTV) between November 22,1999 and December 6, 2000, inclusive.

The action was filed in the United States District Court for the
Southern District of New York and names as the defendants the Company
and:

     (1) Merrill Lynch,

     (2) Pierce, Fenner & Smith,

     (3) Goldman Sachs & Co.,

     (4) Jan Steenkamp and

     (5) Randall S. Livingston.

The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the
Securities Act of 1933 and Section 10(b) of the Securities Exchange Act
of 1934 and Rule 10b-5 promulgated thereunder. On or about November 22,
1999 the Company commenced an initial public offering of 7,500,000 of
its shares of common stock, at an offering price of $20 per share. In
connection therewith, the Company 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:

     (1) 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
         OpenTV shares issued in connection with the OpenTV IPO; and

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

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 or visit the firm's Website: www.milberg.com


PSI TECHNOLOGIES: Schiffrin Barroway Initiates Securities Suit in NY
--------------------------------------------------------------------
Schiffrin & Barroway, LLP commenced a class action lawsuit was filed in
the United States District Court for the Southern District of New York,
on behalf of all purchasers of the common stock of PSI Technologies
Holdings, Inc. (NASDAQ:PSIT) from March 15, 2000 through December 6,
2000, inclusive against defendants FleetBoston Robertson Stephens, Inc.
and Bear Stearns & Co., Inc. On or about March 15, 2000, PSIT commenced
an initial public offering of 3,500,000 of its shares of common stock,
at an offering price of $16 per share. In connection therewith, PSIT
filed a registration statement, which incorporated a prospectus with
the SEC.

The complaint alleges that the Prospectus 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 PSIT shares issued in
         connection with the PSIT IPO; and

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

For more information, contact Marc A. Topaz, or Stuart L. Berman by
Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone:  
1-888-299-7706 (toll-free) or 1-610-667-7706 or by E-mail:
info@sbclasslaw.com.


PSI TECHNOLOGIES: Cauley Geller Lodges Securities Suit in S.D. NY
-----------------------------------------------------------------
The Law Firm of Cauley Geller Bowman & Coates, LLP filed a class action
suit in the United States District Court for the Southern District of
New York on behalf of purchasers of PSI Technologies Holdings, Inc.
(NASDAQ:PSIT) securities during the period between March 15, 2000 and
December 6, 2000, inclusive.

The complaint charges defendants FleetBoston Robertson Stephens, Inc.,
and Bear Stearns & Co., Inc. with violations of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
On or about March 15, 2000, PSIT commenced an initial public offering
of 3.5 million of its shares of common stock at an offering price of
$16 per share. In connection therewith, PSIT 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) 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 PSIT shares issued in
         connection with the PSIT IPO; and

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

For more information, contact Jackie Addison, Sue Null or Charlie
Gastineau by Mail: Investor Relations Department, P.O. Box 25438,
Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll-free) by E-
mail: info@classlawyer.com or visit their Website: www.classlawyer.com


RITE AID: Settles Pennsylvania Securities Suit For $45 Million          
--------------------------------------------------------------
The United States District Court for the East District of Pennsylvania
approved a $45 Million settlement of the consolidated securities class
action filed against drug store operator Rite Aid Corporation.

The consolidated suit was filed on behalf of purchasers of company
securities in the period between May 2,1997 and November 10, 1999
against:

     (1) The Company,

     (2) certain Company directors,

     (3) former chief executive officer Martin Grass,

     (4) former president Timothy Noonan,

     (5) former chief financial officer Frank Bergonzi, and

     (6) former auditor KPMG LLP.

The suit asserted claims under Sections 10 and 20 of the Securities
Exchange Act of 1934, based upon the allegation that the financial
statements for fiscal 1997, fiscal 1998 and fiscal 1999 fraudulently
misrepresented its financial position and results of operation.

Rite Aid reached an agreement in November 2000 to settle the suit in
Pennsylvania District Courts and the derivative lawsuits pending there
and in the Delaware Court of Chancery. Under the agreement, the Company
will pay $45.0 million in cash, which will be fully funded by their
officers' and directors' liability insurance. The company will also
issue shares of common stock in 2002. The shares will be valued over a
10 day trading period in January 2002. If the value determined is at
least $7.75 per share, the Company will issue 20 million shares. If the
value determined is less than $7.75 per share.

The Company has the option to deliver any combination of common stock,
cash and short-term notes, with a total value of $155.0 million. As
additional consideration for the settlement, the Company has assigned
to the plaintiffs all of their claims against the above named
executives and KPMG LLP. On August 16, 2001, the court issued the
ruling approving the settlement.


STARMEDIA NETWORKS: Bernstein Liebhard Files S.D. NY Securities Suit   
--------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired StarMedia Networks,
Inc. (NASDAQ: STRM) securities between May 25, 1999 and December 6,
2000.

The case is pending in the United States District Court for the
Southern District of New York. Named as defendants in the complaint are
these underwriters of StarMedia's initial public offering:

     (1) Goldman Sachs & Co.,

     (2) BancBoston Robertson Stephens Inc.,

     (3) J.P. Morgan Securities, Inc., and

     (4) Salomon Smith Barney, Inc.

The complaint charges defendants with violations of 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 StarMedia's initial public offering of seven million
shares of common stock at $15.00 per share that was completed on or
about May 25, 1999.

The complaint alleges that the Prospectus was false and misleading
because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of restricted
         StarMedia shares in the IPO in exchange for exorbitant and
         undisclosed commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase StarMedia shares in the
         after- market at pre-determined prices.

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 STRM@bernlieb.com.


TOBACCO LITIGATION: Court Orders Replacement Of Nine Jurors in LA Suit
----------------------------------------------------------------------
The Louisiana Supreme Court ordered nine jurors be replaced in a class
action lawsuit seeking that tobacco companies be required to pay for
medical tests for Louisiana smokers. The trial was scheduled to begin
on Sept. 5, but was delayed by defense appeals challenging the
impartiality of the jury. The state Supreme Court late on Tuesday
refused the tobacco companies' petition to throw out the entire jury.

However, the Court ruled that replacements were needed for four jurors
and five alternate jurors whose deliberations might be swayed by their
desire for close relatives to get free medical tests.

The suit is one of two "medical monitoring" suits that have been
certified in U.S. courts.  The other suit began in West Virginia last
month. The suit calls for the tobacco companies to underwrite 25-year
medical testing and smoking cessation programs for an estimated 500,000
current and former smokers in Louisiana.

Defendants in the case include Philip Morris Cos. Inc., R.J. Reynolds
Tobacco Holdings Inc. and Brown & Williamson Tobacco Corp., a unit of
British American Tobacco Plc.

Jurors will first decide if the tobacco companies manipulated nicotine
levels in cigarettes to keep smokers addicted and if that makes
cigarettes defective products under Louisiana liability law.
If so, the second phase of the trial will be to determine if the 25-
year program is warranted as a remedy.

No date had been set for new jury selection to resume, a Civil District
Court spokesman said on Wednesday after the Louisiana Supreme Court
ruling.


TRANSMETA CORPORATION: Mark McNair Initiates N.D. CA Securities Suit
--------------------------------------------------------------------
The Law Offices of Mark McNair filed a class action complaint alleging
violations of federal securities laws by Transmeta Corporation (Nasdaq:
TMTA) on behalf of purchasers of TMTA between November 7, 2000 and June
20, 2001.

The suit was filed in the United States District Court for the Northern
District of California and names as defendants:

     (1) Transmeta Corporation,

     (2) David R. Ditzel,

     (3) Mark K. Allen,

     (4) Douglas A. Laird,

     (5) James N. Chapman,

     (6) Murray A. Goldman,

     (7) Merle A. McClendon,

     (8) R. Hugh Barnes,

     (9) Larry R. Carter,

    (10) Paul M. McNulty,

    (11) William P. Tai, and

    (12) T. Peter Thomas

The suit asserts claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The complaint alleges that the Company issued false and misleading
statements about its principal product, the Crusoe line of
microprocessors. Allegedly defendants made claims about a breakthrough
technology that enabled the Crusoe chips to consume less energy while
delivering high performance to mobile Internet computers. Based on
these false statements Transmeta reached a high of $50.875 per share.
Five of the individual defendants in May 2001 sold 829,500 shares of
their Transmeta stock for more than $10.5 million.

Soon thereafter, the Company said that its results for the second
quarter of 2001 would be worse than projected and that it would be
forced to take a multimillion-dollar inventory charge because of
defective and outdated products.

The suits assert that the defendants:

     (i) omitted and/or misrepresented material facts

    (ii) knew or recklessly disregarded that certain of their
         statements were fale and misleading and

   (iii) artificially inflated the Company's stock price and the extent
         of and appropriate measure of damages.

For more information, contact the Law Office of Mark McNair by Mail:
1819 Pennsylvania Avenue, N.W. Suite 550, Washington D.C. 20006 by
Phone: (877) 511-4717 by Fax: (202) 872-4718 by E-mail:
wmmcnair@justice4investors.com or visit the Website:
www.justice4investors.com


VICINITY CORPORATION: Bernstein Liebhard Files Securities Suit in NY
--------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP commenced a securities class
action lawsuit on behalf all persons who acquired Vicinity Corporation
(NASDAQ: VCNT) securities between February 9, 2000 and December 6,
2000. The case is pending in the United States District Court for the
Southern District of New York.

Named as defendants in the complaint are Vicinity and:

     (1) Emerick M. Woods,

     (2) David Seltzer,

     (3) Herbert M. Dwight, Jr.,

     (4)  J.P. Morgan Securities, Inc.,

     (5) Bear Stearns & Co., Inc. and

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

The complaint charges defendants with violations of the Securities Act
of 1933 and the Securities Exchange Act of 1934 for 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 Vicinity's initial public
offering of 7 million shares of common stock at $17.00 per share that
was completed on or about February 9, 2000.The complaint alleges that
the Prospectus was false and misleading because it failed to disclose:

     (i) the Underwriter Defendants' agreement with certain investors
         to provide them with significant amounts of Vicinity shares in
         the IPO in exchange for exorbitant and undisclosed
         commissions; and

    (ii) the agreement between the Underwriter Defendants and certain
         of its customers whereby the Underwriter Defendants would
         allocate shares in the IPO to those customers in exchange for
         the customers' agreement to purchase Vicinity shares in the
         after-market at pre- determined prices.

For more details, contact Ms. Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: (800) 217-1522 or 212-779-1414 by E-mail: VCNT@bernlieb.com or
visit the firm's Website: www.bernlieb.com

                              *********


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, Aurora Fatima
Antonio 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
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Information contained herein is obtained from sources believed to be
reliable, but is not guaranteed.

The CAR subscription rate is $575 for six months delivered via e-mail.  
Additional e-mail subscriptions for members of the same firm for the
term of the initial subscription or balance thereof are $25 each.  For
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Beard at 301/951-6400.

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