/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/011016.mbx C L A S S A C T I O N R E P O R T E R Tuesday, October 16, 2001, Vol. 3, No. 202 Headlines ANICOM INC.: Keller Rohrback Appointed Trial Counsel in N.D. IL Suit ASHFORD.COM: Securities Suits Consolidated By New York District Court BRITISH GOVERNMENT: Businessmen Sue For Losses Due To FMD Outbreak CRITICAL PATH: Faruqi Faruqi Commences Securities Suit in N.D. CA CYBER-CARE INC.: Keller Rohrback Initiates Securities Suit in S.D. FL ENGAGE TECHNOLOGIES: Marc Henzel Commences Securities Suit in S.D. NY EXXON MOBIL: Napoli Kaiser Considers Filing RI MTBE Contamination Suit GEORGIA POWER: Settlement Possible After Class Certification Denial INDIANAPOLIS: Homeowners To Receive $2M Environmental Suit Settlement INTERSIL HOLDING: Bernstein Liebhard Lodges S.D. NY Securities Suit IXL ENTERPRISES: Asks Georgia Court To Dismiss Three Securities Suits KEYSPAN CORPORATION: Marc Henzel Initiates Securities Suit in E.D. NY MINNESOTA: Court Orders Supermax Inmates' Transfer To Mental Hospital NETRO CORPORATION: Marc Henzel Commences Securities Suit in S.D. NY NETWORK COMMERCE: Keller Rohrback Commences W.D. WA Securities Suit NORTEL NETWORKS: Faruqi Faruqi Initiates Securities Suit in E.D. NY ONVIA.COM: Bernstein Liebhard Initiates Securities Suit in S.D. NY ORACLE CORPORATION: Faruqi Faruqi Commences Securities N.D. CA Suit PRO-FAC COOPERATIVE: Denies Suit Allegations Filed By Oregon Farmers SELECTICA INC.: Faruqi Faruqi Initiates Securities Suit in S.D. NY SHOPKO STORES: Faruqi Faruqi Initiates Securities Suit in E.D. WI SYCAMORE NETWORKS: Bernstein Liebhard Files S.D. NY Securities Suit US AGGREGATES: Faruqi Faruqi Initiates Securities Suit in N.D. CA WICHITA: Suit Filed For People Jailed For Not Paying TX Court Fines ********* ANICOM INC.: Keller Rohrback Appointed Trial Counsel in N.D. IL Suit -------------------------------------------------------------------- Keller Rohrback L.L.P. has been approved as trial counsel in this class action litigation against Anicom, Inc. and certain of its officers and directors. The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)(5) promulgated thereunder. The defendants allegedly issued a series of material misrepresentations to the market between April 29, 1998, and July 18, 2000. During the class period, defendants issued financial statements and press releases concerning the Company's revenues, income, and earnings per share, which reflected favorably on the Company's past operations and future prospects. The statements and releases were materially false and misleading because they materially overstated the Company's revenues, income, and earnings growth. On July 2000, the Company revealed that it is investigating possible "accounting irregularities" which could result in a revision of its 1998 and 1999 financial statements. Following the announcement, trading in the Company's common stock was halted and has not resumed. All related cases have been consolidated in the United States District Court, Northern District of Illinois. The Honorable John W. Darrah appointed the State of Wisconsin Investment Board as lead plaintiff and approved Susman Godfrey L.L.P. as lead counsel, Foley & Lardner as liaison counsel, Keller Rohrback L.L.P. as assisting trial counsel, and Wolf Popper L.L.P. as special advisory counsel. A First Amended Consolidated Class Action Complaint, adding Anicom's auditor, PricewaterhouseCoopers, LLP, as a defendant, was filed on July 13, 2001. ASHFORD.COM: Securities Suits Consolidated By New York District Court --------------------------------------------------------------------- The United States District Court for the Southern District of New York has consolidated several securities class actions filed against Ashford.com alleging federal securities violations. The suits were commenced in July 2001 against the Company and: (1) Robert Shaw, (2) Kenneth E. Kurtzman, (3) David F. Gow, (4) James H. Whitcomb, Jr., (5) Kevin R. Harvey, (6) Goldman, Sachs Co., (7) BankBoston Robertson Stephens, Inc., (8) Deutsche Banc Alex. Brown, and (9) E*Offering Corporation The suit was brought on behalf of purchasers of the Company's common stock during various periods beginning on September 22, 1999, the date of Ashford's initial public offering. The suit alleges violations of Sections 11 and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. The Company's prospectus was allegedly materially false and misleading, because it failed to disclose certain fees and commissions collected by the underwriters or arrangements designed to inflate the price of the common stock. The suit further alleges that because of these practices, the Company's post-ipo stock price was artificially inflated. The Company believes that it has meritorious defenses against these actions and does not expect the litigation to have a material effect on the Company's financial condition or results of operations. BRITISH GOVERNMENT: Businessmen Sue For Losses Due To FMD Outbreak ------------------------------------------------------------------ The British Government could face several class action suits over losses caused by the foot and mouth disease outbreak, even though there is increased confidence that the outbreak has finally been beaten. According to The Observer, The Powys Rural Business Campaign has launched a massive class action against the government and Powys Council. The group represents more than 300 owners of businesses, including hotels, pubs, coffee shops and tour groups. The group has also started talks with business groups in other affected parts of the country, including Cumbria, Devon and Northumberland, in order to launch a national class action with up to 20,000 companies suing the government. Compensation in the suit could amount to billions of pounds, as they assert three counts against the government. They claim the government discriminated against rural businesses in favor of farmers. "Under the Human Rights Act, it is illegal to discriminate against classes of people, and we are interpreting that as making it illegal to discriminate against classes of business," said Stephen Alexander, senior partner at Class Law. They claim the government effectively appropriated property without compensation, in contravention of a House of Lords ruling in a Burmah Oil case that it is illegal for the government to do so. The campaigners are also suing the government and Powys Council, claiming that they illegally shut down roads that were used by cars, despite only having the legal right to shut down roads that have no vehicular access. "There was an excessive use of power that meant these people had their livelihoods interfered with through no faults of their own. It was all done to protect the commercial interests of the livestock business," said Alexander. Tens of thousands of rural businesses, particularly those in tourism, suffered severe losses because of the sudden closure of most of the British countryside. None of the businesses received any compensation for losses caused by the outbreak, which began in February and decimated local economies. Livestock farmers, from whose animals the outbreak originated, have been generously compensated by the government, which has repeatedly ruled out compensating any other type of business. The Government claims that it has only compensated farmers because it is in effect buying the infected animals in order to slaughter them. It has always ruled out paying compensation to any sort of business for so-called consequential losses, which have indirectly resulted from the outbreak and the restrictions. The suits have placed a damper on the government's growing optimism that the disease has finally been contained. There have been no new cases of the disease since 30 September, and experts are increasingly optimistic that Britain could be officially declared foot-and-mouth free by the end of the year. CRITICAL PATH: Faruqi Faruqi Commences Securities Suit in N.D. CA ----------------------------------------------------------------- Faruqi and Faruqi, LLP initiated a securities class action suit on behalf of all purchasers of Critical Path, Inc. (NASDAQ: CPTH) common stock between June 15, 1999, and February 2, 2001, inclusive. The suit was filed in the United States District Court for the Northern District of California against Critical Path and certain of its executive officers, and the Company's auditor, PriceWaterhouseCoopers. The suit alleges the defendants violated federal securities laws, including Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The defendants allegedly issued a series of materially false and misleading statements in press releases and SEC filings concerning the Company's business and prospects for 2000 and beyond. As a result, the price of the Company's common stock was artificially inflated throughout the class period. This allowed the Company's top insiders to sell over $21 million worth of their own shares at prices as high as $78.00 per share. In January 2001, the Company shocked the market when it disclosed it would in fact report a loss for the Fourth Quarter 2000, as opposed to positive earnings, which it had been touting for months. Although these losses were allegedly attributed to higher acquisition costs, accounting changes, and the dot-com bust, the partial truth was revealed when in February 2001, the Company announced that it may have "materially misstated" its Fourth Quarter 2000 results. The Company's Board of Directors has also formed a special committee of the Board to conduct an investigation into the Company's revenue recognition practices. The Company further placed two executives, President David Thacher and Vice President of Worldwide Sales, William Rinehart, on administrative leave. As a result, the NASDAQ Stock Market halted trading of the Company's shares. Prior to the halt, shares of the Company fell over 60% in pre- market trading to $3.88 per share. For more details, contact Anthony Vozzolo by Mail: 320 East 39th Street New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E- mail: avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com CYBER-CARE INC.: Keller Rohrback Initiates Securities Suit in S.D. FL --------------------------------------------------------------------- Keller Rohrback L.L.P. commenced a securities class action case against Cyber-Care Inc. (NASDAQ:CYBR) on behalf of all persons who purchased shares of Cyber-Care common stock between November 4, 1999 and May 12, 2000, inclusive. The suit was filed in the United States District Court for the Southern District of Florida and also names the Company's chairman and chief executive officer as defendants. The Class Shareholders allege that the defendants made materially false and misleading statements and omitted to disclose material facts regarding Cyber-Care's operations and prospects. Specifically, shareholders assert that defendants failed to disclose, that: (1) since the Company's Electronic HouseCall System (EHC) had not yet received FDA approval, it could not be sold or marketed in any way; and (2) to the extent the Company was announcing sales or agreements to buy, the Company was in violation of governmental regulations In addition, defendants touted multi-million dollar contracts with companies that appeared to lack the financial resources to meet such obligations. In May, after this information was revealed, the Company's stock fell to $8.50 per share, a far cry from its class period high of $40 in February 2000. For more information, contact Keller Rohrback, LLP by Mail: 1201 Third Avenue Suite 3200, Seattle Washington 98101-3052 by Phone: 800/776-6044 (toll-free) or (206) 623-1900 by Fax: (206) 623-3384 by E-mail: investor@kellerrohrback.com or visit the firm's Website: www.SeattleClassAction.com ENGAGE TECHNOLOGIES: Marc Henzel Commences Securities Suit in S.D. NY --------------------------------------------------------------------- The Law Office of Marc Henzel initiated a class action lawsuit on behalf of purchasers of Engage Technologies, Inc. (NASDAQ: ENGA) securities between July 19, 1999 and December 6, 2000, inclusive. The suit was filed in the United States District Court for the Southern District of New York, against defendants Engage Technologies, certain of its officers and directors, and its underwriters. The defendants allegedly violated the federal securities laws by issuing and selling common stock pursuant to the July 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 Company 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 Company stock rocketed upward was intended to drive Company 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. For more information, contact Marc S. Henzel by Mail: 210 West Washington Square, Philadelphia, PA 19106 by Phone: (215) 625-9999 or (888) 643-6735 by Fax: (215) 440-9475 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182 EXXON MOBIL: Napoli Kaiser Considers Filing RI MTBE Contamination Suit ---------------------------------------------------------------------- New York Law Firm Napoli, Kaiser and Bern is trying to drum up support from more than 5,000 Pascoag, Rhode Island residents for a possible class action suit against Exxon Mobil Corporation. The Pascoag Utility District's water supply is tainted with high levels of methyl tertiary-butyl ether (MTBE), a gasoline additive that is also a suspected carcinogen. The contamination has left more than 1,200 households and 5,000 residents unable to drink their water supply since September 1, making it the worst MTBE contamination in Rhode Island history. The suspected source of pollution is the Main Street Mobil station in Pascoag. Last Saturday's hour-long consultation sessions with Pascoag water customers were held every hour on the hour from 9 a.m. to 5 p.m. Bern, Cunha and a team of five of Bern's associate lawyers were on hand to talk with water customers, discuss claims they may have and have them sign contingent fee agreements. By 10 a.m. yesterday, there were more than 30 residents at the meetings with more trickling in by the minute. The meetings proceeded until Sunday. "There's strength in numbers," Marc Jay Bern, a senior partner with Napoli, Kaiser & Bern told Pascoag residents at the meetings. "We can't take one person and go up against Mobil, Texaco or anyone else like that.But if we have a thousand, two thousand or five thousand people, we can take on the big polluters and win." In addition to the contingency agreement, residents also were asked to fill out a confidential MTBE health questionnaire and an authorization form allowing the release of medical records. Bern said the fight won't be easy, but a successful outcome is attainable, adding that a $12 million settlement was awarded in an MTBE case in California. If the case does go forward, it would likely involve participation and resources from several affiliate law firms and lawyers, including the assistance of environmental lawyer Robert F. Kennedy Jr., Chief Prosecutor for the Hudson Riverkeeper Program and senior attorney for the Natural Resources Council. GEORGIA POWER: Settlement Possible After Class Certification Denial ------------------------------------------------------------------- Parties in the racial discrimination lawsuit against Georgia Power Company are now willing to discuss settlement after a federal judge refused to give the suit class action certification. Seven African-American employees filed the suit, alleging racial bias because the Company did not offer opportunities to African-American employees. The group sought class action status for their suit on behalf of 2,400 African-American current and ex-employees. U.S. District Judge Orinda Evans said she was not convinced that the alleged discriminatory employment, personnel and human resources policies amounted to a legitimate claim, according to a recent report in The Atlanta Journal-Constitution. The ruling delivered a setback to the plaintiffs' high-profile racial discrimination lawsuit against Georgia Power and represented a major legal victory for the company. However, the ruling left intact the individual claims by the seven present and former employees and opened up the possibility that more workers will file individual claims. A total of 111 workers have filed affidavits in connection with the case, claiming racial discrimination. Steven Rosenwasser, an attorney for the workers, said "we would be willing to consider a fair and reasonable settlement." Georgia Power President David Ratcliffe said the company also would be willing to "sit down with any individual plaintiff" to discuss settling individual claims. Ratcliffe, earlier, had ruled out any settlement acknowledging class action standing for the lawsuit. No settlement talks have been scheduled, Rosenwasser said. It is likely the seven plaintiffs will appeal Judge Evans' ruling to the 11th Circuit Court of Appeals, he said. The judge's ruling presents a high standard for workers to meet in order to obtain class-action certification in racial discrimination cases. Emory University Professor of Law, Charles Shanor, said that Judge Evans' ruling means "a lot less leverage" for the seven workers in their settlement of the case. "Getting a very broad class-action certification means lots of leverage for settlement," he said. Ratcliffe does not regard the Company's legal victory as winning. "Anytime your employees feel they have to resort to lawsuits is not a great chapter in the company's history. A group told us they were unhappy with the way they were being treated. The fact that they had to resort to a lawsuit shows that something broke down completely," he said. However, Ratcliffe said that in the interval since the lawsuit was filed, the company has made "significant improvements" in personnel policies. They include changes in compensation review, job postings and selection processes. Half of the company's 8,500 employees have undergone diversity training, and a diversity council has been named. INDIANAPOLIS: Homeowners To Receive $2M Environmental Suit Settlement --------------------------------------------------------------------- An Indianapolis magistrate judge preliminarily approved a $2 Million settlement in a class action suit filed against Guide Corporation and Crown Environmental Group over a December 1999 fish kill in White River, Indianapolis. Nearly 740 homeowners who live along the White River from Anderson to Indianapolis are eligible for the settlement, which requires Guide to pay $1.4 million and Crown to pay $600,000. The settlement raises to about $16.7 million the amount paid out in fines, penalties and settlements for a December 1999 chemical discharge into the city of Anderson's sanitary sewer system. It led to the deaths of about 5 million fish in a 50-mile stretch of the White River downstream from Anderson to Indianapolis. "It is clear that this disastrous fish kill damaged the adjoining landowners, and now they are being properly compensated," said William C. Potter II, a lawyer representing the landowners. The class-action lawsuit alleged the pollution adversely affected property values and the enjoyment of property along the river. Potter said letters explaining the settlement, which is to be evenly divided among the property owners, are to be sent to 738 eligible households. Payments of between $1,500 and $2,000 should be mailed out after the first of the year. Potter said several homeowners who were involved with filing the lawsuit will receive more. Last month, a federal judge approved a $14 million payment by Guide to settle criminal and civil charges for the fish kill. INTERSIL HOLDING: Bernstein Liebhard Lodges S.D. NY Securities Suit ------------------------------------------------------------------- Bernstein Liebhard and Lifshitz, LLP initiated a securities class action lawsuit on behalf of purchasers of Intersil Holding Corporation (NASDAQ: ISIL) securities between February 25, 2000 and December 6, 2000. The case is pending in the United States District Court for the Southern District of New York against defendants: (1) the Company, (2) Gregory L. Williams, (3) Daniel J. Heneghan, (4) Credit Suisse First Boston Corp The complaint charges defendants with violations of Section 10(b) of the Securities Act of 1934 and Rule 10b-5 promulgated thereunder. The defendants allegedly issued a registration statement and prospectus that contained material misrepresentations and/or omissions related to the Company's initial public offering (IPO). The complaint alleges that the prospectus was false and misleading because it failed to disclose: (i) Credit Suisse's agreement with certain investors to provide them with significant amounts of restricted Company shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between Credit Suisse and certain of its customers whereby Credit Suisse would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase shares in the after-market at pre- determined prices. For further 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: ISIL@bernlieb.com or visit the firm's Website: www.bernlieb.com IXL ENTERPRISES: Asks Georgia Court To Dismiss Three Securities Suits --------------------------------------------------------------------- iXL Enterprises has asked the U.S. District Court for the Northern District of Georgia to dismiss three securities class actions against it. The first suit arose from several suits commenced last September 2000 against the Company and certain of its present and former directors and officers. These cases were consolidated in January 2001, and a consolidated amended class action complaint was filed in March 2001, naming only the Company as defendant. The consolidated suit was brought on behalf of a putative class of all those who purchased or otherwise acquired securities of the Company between November 30, 1999 and September 1, 2000. The amended complaint asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, alleging the Company released false and misleading press releases and SEC filings concerning the Company's business prospects and financial statements. The second complaint entitled Redwing Ltd. v. iXL Enterprises, Inc., et al. was filed in the same court against the Company and certain of its present and former directors and officers. The above suit alleges that the defendants violated these laws: (1) Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, (2) Sections 12 and 15 of the Securities Act of 1933, (3) the Georgia Blue Sky laws, and (4) common law claims for breach of contract and negligent misrepresentation The third complaint, entitled Next Century Communications Corp. v. U. Bertram Ellis, was brought in the same court, alleging fraud, negligent misrepresentation and breach of fiduciary duty. The Company believes they have meritorious defenses to these allegations. KEYSPAN CORPORATION: Marc Henzel Initiates Securities Suit in E.D. NY --------------------------------------------------------------------- The Law Office of Marc S. Henzel commenced a class action lawsuit on behalf of purchasers of KeySpan Corporation (NYSE:KSE) between April 26, 2000 and July 17, 2001. The action is pending in the United States District Court for the Eastern District of New York against the Company and co-defendants: (1) Robert Catell, (2) Craig Matthews, (3) Gerald Luterman, (4) Stephan L. Zelkowitz, (5) Robert J. Fani, (6) William K. Feraudo The complaint charges the defendants with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants defrauded purchasers of Company common stock by disseminating materially false and misleading statements and/or concealing material adverse facts. The defendants allegedly: (i) deceived the investing public regarding the Company's business, operations, management and the intrinsic value of the Company's common stock; (ii) enabled the Individual Defendants to sell their personally- held shares of the Company's common stock reaping proceeds of more than $29 million; and (iii) caused plaintiff and other members of the class to purchase the Company's common stock at artificially inflated prices For more details, contact Marc S. Henzel by Mail: 210 West Washington Square, Philadelphia, PA 19106 by Phone: (215) 625-9999 or (888) 643- 6735 by Fax: (215)440-9475 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182 MINNESOTA: Court Orders Supermax Inmates' Transfer To Mental Hospital --------------------------------------------------------------------- The Minnesota Department of Corrections will not appeal a federal court order to remove five mentally ill inmates from the state's ultra- security Supermax prison, according to an Associated Press report. A class action suit was filed last month against the department, alleging that seven inmates at the state's Supermax prison do not receive adequate psychiatric care. The suit claimed that the prison violated constitutional protections against "cruel and unusual" punishment and asked the court to transfer the seven inmates to mental hospitals for treatment. Federal Judge Barbara Crabb ordered the inmates transferred, saying that the conditions of extreme isolation and deprivation posed a threat of death or serious injuries to five inmates. The two remaining inmates had been moved out of the facility for treatment. Corrections officials plan to contest charges that the prison is unfit for mentally ill inmates and others as part of a broader class action suit set for trial next year, spokesman Dale Jellings said. Jellings said Friday the department has not yet determined when the five inmates will actually be transferred or where they will go. Among the possible sites where the inmates could receive mental health treatment in a secure lockup facility are the Wisconsin Resource Center in Oshkosh and the Mendota Mental Health Institute in Madison. Supermax is a $43 million prison that currently houses about 300 of the state's most violent inmates. NETRO CORPORATION: Marc Henzel Commences Securities Suit in S.D. NY ------------------------------------------------------------------- The Law Office of Marc S. Henzel initiated a class action lawsuit on behalf of purchasers of the securities of Netro Corporation (NASDAQ:NTRO) between August 18, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court for the Southern District of New York against defendants Merrill Lynch, Pierce, Fenner & Smith Incorporated and FleetBoston Robertson Stephens Inc. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In August 1999, the Company commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $8 per share. In connection therewith, the Company filed a registration statement, which incorporated a prospectus with the Securities and Exchange Commission. 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 shares issued in connection with the IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Company shares to those customers in the IPO in exchange for which the customers agreed to purchase additional shares in the aftermarket at pre-determined prices. For more information, contact Marc S. Henzel by Mail: 210 West Washington Square, Philadelphia, PA 19106 by Phone: (215)625-9999 or (888) 643-6735 or by Fax: (215)440-9475 by E-Mail: mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182. NETWORK COMMERCE: Keller Rohrback Commences W.D. WA Securities Suit ------------------------------------------------------------------- Keller Rohrback L.L.P. filed a class action lawsuit on behalf of purchasers of the securities of Network Commerce Inc. (NASDAQ:NWKC) between September 28, 1999 and April 16, 2001, inclusive. The complaint was filed in the United States District Court for the Western District of Washington against the Company and Chief Executive Dwayne M. Walker. The suit alleges that the defendants violated federal securities laws by disseminating false and misleading registration statements and prospectuses related to Network Commerce's Initial and Secondary Public Offerings, as well as its merger with Ubarter.com. Plaintiffs allege that defendants issued a series of false and misleading financial statements and press releases concerning the Company's revenue and earnings growth and its ability to achieve profitability. In addition, it is alleged that their statements and reports failed to disclose the terms upon which Walker executed $4.5 million in promissory notes to the Company. Finally, in April 2001, the Company filed its annual report for 2000 that disclosed: (1) if additional financing was not secured, the Company faced possible bankruptcy; (2) the Company's auditors had issued a "going concern" opinion, fearing the Company may not be able to pay its debts as and when they fall due; and (3) the Company was in default on the convertible notes it had issued. In addition, the complaint alleges that the Company allowed Walker to engage in a promissory note/stock buy back program and pattern of illegal short selling, whereby Walker earned a $4.5 million profit and the Company reported a $4.5 million loss. For more information, contact Keller Rohrback, LLP by Mail: 1201 Third Avenue Suite 3200, Seattle Washington 98101-3052 by Phone: 800/776-6044 (toll-free) or (206) 623-1900 by Fax: (206) 623-3384 by E-mail: investor@kellerrohrback.com or visit the firm's Website: www.SeattleClassAction.com NORTEL NETWORKS: Faruqi Faruqi Initiates Securities Suit in E.D. NY ------------------------------------------------------------------- Faruqi and Faruqi, LLP commenced a securities class action suit on behalf of all purchasers of Nortel Networks Corp. (NYSE: NT) common stock between November 1, 2000, and February 15, 2001, inclusive. The suit was filed in the United States District Court for the Eastern District of New York against the Company and certain of its executive officers. The suit alleges violations of the federal securities laws, including Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The defendants allegedly issued a series of materially false and misleading statements in press releases and SEC filings concerning the Company's revenues and business prospects. Specifically, the suit alleges that in January 2001, defendants issued a press release to the investing public announcing record operating results for the year 2000, and especially strong fourth quarter 2000 performance. The Company touted that their industry-leading portfolio would allow it to "continue to outpace the market and gain profitable market share." Despite the tightening of capital within the telecom sector, the defendants projected that the Company would achieve 30% growth in revenues and earnings per share (EPS) in 2001. The defendant's guidance concerning revenue and earnings for the full year 2001 was materially false and misleading because at the time they made these statements, the economy in the United States had slowed down dramatically. As a result, defendants' misrepresentations caused the price of Company securities to be inflated, allowing certain defendants to collectively sell over $7 million of personally held Company stock. On February 2001, the Company shocked the market when it announced that it was drastically reducing guidance for the 2001 fiscal year because of decreased demand for its products due, in large part, to spending cuts by telecommunications companies. Instead of the previously announced growth rate of 30%, the Company now projected growth rates of 15% and 10% for 2001 revenues and EPS respectively. As a result of this disclosure, the Company's common stock plummeted approximately 34% from its closing price of $29.75 per share on February 15, 2001 to as low as $19.50 on February 16, 2001, erasing more than $33 billion in market capitalization in the process. For more information, contact Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com ONVIA.COM: Bernstein Liebhard Initiates Securities Suit in S.D. NY ------------------------------------------------------------------ Bernstein Liebhard and Lifshitz, LLP filed a securities class action suit on behalf all persons who acquired Onvia.com, Inc. (NASDAQ: ONVI) securities between March 1, 2000 and December 6, 2000. The case is pending in the United States District Court for the Southern District of New York and names as defendants the Company and: (1) Glenn S. Ballman, (2) Mark T. Calvert, (3) Credit Suisse First Boston Corporation, (4) Chase Securities, Inc., (5) Fleet Boston Robertson Stephens, Inc The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and Rule 10b-5 promulgated thereunder) and Sections 11 and 15 of the Securities Act of 1933. The defendants allegedly issued a registration statement and prospectus that contained material misrepresentations and/or omissions. The prospectus was issued in connection with the Company's initial public offering of 8,000,000 shares of common stock at $21.00 per share on February 29, 2000. The complaint alleges that the Prospectus was false and misleading because it failed to disclose: (i) the underwriters' agreement with certain investors to provide them with significant amounts of restricted shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between the underwriters and certain of its customers whereby the underwriters would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase 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: ONVI@bernlieb.com or visit the firm's Website: www.bernlieb.com ORACLE CORPORATION: Faruqi Faruqi Commences Securities N.D. CA Suit ------------------------------------------------------------------- Faruqi and Faruqi, LLP initiated a securities class action suit on behalf of all purchasers of Oracle Corporation (NASDAQ: ORCL ) securities between December 15, 2000 and March 1, 2001, inclusive. The suit, filed in the United States District Court for the Northern District of California, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The defendants reportedly issued a series of materially false and misleading statements in press releases concerning the state of the Company's financial condition and business prospects. Specifically, defendants represented that the Company would have revenue of over $2.9 billion for its Q3 of 2001 and that a slowing economy was showing no impact on performance for the quarter. As a result, the price of Oracle's common stock was artificially inflated throughout the class period, allowing the Company's CEO Lawrence Ellison to sell over $900 million of personally held Oracle stock. In March 2001, the Company disclosed that it would have a major revenue shortfall, causing their common stock to plummet to less than $17 per share on extremely heavy trading volume. For further details, contact Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com PRO-FAC COOPERATIVE: Denies Suit Allegations Filed By Oregon Farmers -------------------------------------------------------------------- Pro-fac Cooperative, Inc. denied the allegations in the class action suit filed against them by vegetable growers in the Multnomah County Circuit Court in Oregon. Last month, Blue Line Farms sued the Company for their alleged misdeeds and calculated mismanagement of the Salem-based subsidiary, AgriFrozen. The suit also names as defendants: (1) subsidiary Agrilink Foods, Inc., (2) Mike Shelby and (3) "John Does" 1-50, representing directors, officers, and agents of the corporate defendants. The Company allegedly pretended to offer a fair and full price for the vegetable growers' crops. However, through a series of material omissions, they fraudulently induced the local growers into entering crop contracts and stock security agreements. The Company then took the farmers' crops, and refused to pay them the fair value of the crops and the stock. The suit further alleges that the Company then fled back to New York and closed down their Oregon frozen food processing operations. The suit asserts claims of: (i) fraud in operating AgriFrozen; (ii) breach of fiduciary duty in operating AgriFrozen; (iii) negligent misrepresentation in operating AgriFrozen; (iv) breach of contract against Pro-Fac; (v) breach of good faith and fair dealing against Pro-Fac; (vi) conversion against Pro-Fac and Agrilink Foods; (vii) intentional interference with a contract against Agrilink Foods; and (viii) statutory Oregon securities law violations against Pro-Fac and separately against Shelby. SELECTICA INC.: Faruqi Faruqi Initiates Securities Suit in S.D. NY ------------------------------------------------------------------ Faruqi and Faruqi, LLP commenced a securities class action suit on behalf of purchasers of Selectica, Inc. (NASDAQ: SLTC) securities between March 10,2000 to December 10, 2000 inclusive. The suit was filed in the United States District Court for the Southern District of New York against defendants: (1) Selectica, Inc., (2) Credit Suisse First Boston Corporation, (3) Fleet Boston Robertson Stephens, (4) Rajen Jaswa, Chief Executive Officer and Chairman of the Board, (5) Sanjay Mittal, Chief Technology Officer, Vice President and Chairman of the Board, (6) Stephen Bennion, Chief Financial Officer The suit asserts violations of the federal securities laws, including Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The defendants allegedly issued materially false and misleading statements in a prospectus filed with the Securities and Exchange Commission. The prospectus was in connection to the Company's March 2000 initial public offering of 4,000,000 shares of common stock. The prospectus was materially false and misleading because it failed to disclose that: (i) the underwriters solicited and received additional, excessive and undisclosed commissions from certain investors in exchange for which it allocated to those investors material portions of the restricted number of Company shares issued in connection with the offering; (ii) the underwriters entered into agreements with customers whereby the underwriters agreed to allocate Company shares to those customers in exchange for which the customers agreed to purchase additional Company shares in the aftermarket at pre- determined prices For more details, contact Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: Avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com SHOPKO STORES: Faruqi Faruqi Initiates Securities Suit in E.D. WI ----------------------------------------------------------------- Faruqi and Faruqi, LLP commenced a class action lawsuit on behalf of all purchasers of ShopKo Stores, Inc. (NYSE:SKO) securities between March 9, 2000 and November 9, 2000, inclusive. The suit was filed in the United States District Court for the Eastern District of Wisconsin against the Company and certain of its executive officers. The suit alleges violations of the federal securities laws, including Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The defendants allegedly issued a series of materially false and misleading statements in press releases and SEC filings concerning the Company's integration of Pamida Holding Corp., their financial results and business prospects. Specifically, the suit alleges that defendants failed to disclose that the consolidation of Pamida's distribution centers was extremely problematic and that the Company was experiencing significant shipping and inventory control problems. As a result, the price of the Company's common stock was artificially inflated throughout the class period. In November 2000, the Company disclosed that problems at Pamida's distribution centers contributed to a loss of ($0.23) per share for the third quarter of 2000, far below the $.02 to $.07 per share earnings projected by the Company. In response to this announcement, the price of Company shares dropped to $4.3125 per share, a substantial decline from the class period high of $20.50. For more details, contact Anthony Vozzolo by Mail: 320 East 39th Street, New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E-mail: Avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com SYCAMORE 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 Sycamore Networks, Inc. (NASDAQ:SCMR) securities between October 21, 1999 to June 28, 2001. The case is pending in the United States District Court for the Southern District of New York and names as defendants, the Company and the following: (1) Daniel E. Smith, (2) Gururaj Deshpande, (3) Frances M. Jewels, (4) Timothy Barrows, (5) Paul Ferri, (6) Morgan Stanley & Co. Incorporated, (7) Lehman Brothers, Inc., (8) J.P. Morgan Securities, Inc., and (9) Dain Rauscher Wessels, a division of Dain Rauscher Incorporated The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Company allegedly issued registration statement and prospectus that contained materially false and misleading information and failed to disclose material information. The prospectus was issued in connection with the Company's initial public offering of 7,475,000 shares of common stock at $38.00 per share that was completed in October 1999. The complaint alleges that the prospectus was false and misleading because it failed to disclose: (i) the underwriters' agreement with certain investors to provide them with significant amounts of restricted Company shares in the IPO in exchange for exorbitant and undisclosed commissions; and (ii) the agreement between the underwriters and certain of its customers whereby the underwriters would allocate shares in the IPO to those customers in exchange for the customers' agreement to purchase Company 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: SCMR@bernlieb.com or visit the firm's Website: www.bernlieb.com US AGGREGATES: Faruqi Faruqi Initiates Securities Suit in N.D. CA ----------------------------------------------------------------- Faruqi Faruqi commenced a securities class action suit on behalf of all purchasers of U.S. Aggregates, Inc. (NYSE: AGA) securities between April 25, 2000 and April 2, 2001, inclusive. The suit, filed in the U. S. District Court for the Northern District of California, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The defendants allegedly issued a series of false and misleading press releases concerning the Company's financial condition and business prospects. As a result, the price of the Company's common stock was artificially inflated throughout the class period. On April 2001, the Company issued a press release stating that it was restating earnings for the first three quarters of 2000. Specifically, the press release noted that for the first quarter 2000, the Company will restate its net loss of $2.6 million, or $0.17 per diluted share, to a net loss of $5.1 million, or $0.34 per diluted share. For the second quarter, the Company will restate its net income of $6.8 million, or $.0.45 per diluted share, to net income of $3.1 million, or $0.20 per diluted share. For the third quarter, the Company will restate its net income of $5.5 million, or $0.36 per diluted share, to net income of $1.7 million, or $0.11 per diluted share. Besides restating the first three quarters of 2000, the Company revealed that it was delaying the filing of Form 10-K for 2000. In response, the stock price of the Company plummeted to $4.30, or more than 79% lower than the class period high of $20.25. For more details, contact Anthony Vozzolo by Mail: 320 East 39th Street New York, NY 10016 by Phone: (877) 247-4292 or (212) 983-9330 by E- mail: avozz@faruqilaw.com or visit the firm's Website: www.faruqilaw.com WICHITA: Suit Filed For People Jailed For Not Paying TX Court Fines ------------------------------------------------------------------- The Wichita Municipal court faces a class action suit filed on behalf of thousands of people who spent time in the city jail for not paying municipal court fines. Attorney Kiehl Rathbun filed the suit on behalf of the nearly 7,500 people jailed under Wichita's "time to pay" docket spent a combined 148,000 days behind bars. The suit alleges that municipal court judges violated state law by ordering jail without holding hearings to determine a defendant's ability to pay. The suit seeks damages amounting to $17 million, after the city paid $5 an hour to poor defendants who had to work off their fines. The suit alleges that many of the plaintiffs who were jailed between July 31,1997 and March 9,2000, were low income and black. City lawyers have criticized Rathbun's calculations, saying they were unrealistic and that Rathbun was withholding financial information that would reveal a more reasonable figure of the inmates' lost wages. Attorneys for the city have said the "time to pay" docket allowed the contempt of court citations for those who failed to appear at hearings about their outstanding fines. At Friday's hearing for motions, the attorneys sought orders from District Judge Paul Clark for the release of records. Rathbun asked Clark to order the city to release court records for each defendant. The records would document the wrongful jailings, Rathbun said. City lawyer Jack Focht said the inmates' 28,000 files are scattered in several places. Focht argued that it would take three employees three years to gather them all. Meanwhile, Focht said Rathbun was thwarting his attempt to get financial information on each former inmate. The information could be used to determine how much money each person lost by being in jail, Focht said. Clark didn't rule on any of the motions Friday. The trial is set for November 13. ********* 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 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *