CAR_Public/011211.mbx               C L A S S   A C T I O N   R E P O R T E R
  
             Tuesday, December 11, 2001, Vol. 3, No. 241

                           Headlines

AAA MICHIGAN: Appeals Court Rules Firm Not Liable For Phone, TV Bills
ADAMS MARK: Agrees To Settle NAACP Racial Bias Claims For $2 Million
AETNA INC.: Rosen Law Firm Commences Securities Suit in S.D. New York
ASSISTED CARE: Employees File $12M Suit Due To Wage, Working Conditions
AUTO INSURANCE: GA Ruling on Vehicle Damage Applies To All Insurers

CANADA: Toronto Doctor Settles For $27M Suit Due To Hepatitis Outbreak
CHASE MANHATTAN: Sued For Safety Deposit Box Losses in September Attack
CHRISTIAN MEMORIAL: Detroit Resident Sues For Nuisance Marketing Calls
CORNING INC.: Milberg Weiss Initiates Securities Suit in W.D. New York
DECODE GENETICS: Milberg Weiss Commences Securities Suit in S.D. NY

DJ ORTHOPEDICS: Bernstein Liebhard Commences Securities Suit in S.D. NY
EAST TIMOR: Refugees Sue Ex-President For Moral, Material Damages
ENRON CORPORATION: Scott Scott Files Amended Securities Suit in S.D. TX
HAWAII: Consent Decree To Improve Children's Special Service
INDIAN AFFAIRS: Interior To Unlink Indian Funds Computers From Web

JAPAN: Premier Sued For Glossing Over Yasukuni War Shrine Visit
JAZZTEL PLC: Schiffrin Barroway Commences Securities Suit in S.D. NY
MAXYGEN INC.: Schiffrin Barroway Commences Securities Suit in S.D. NY
MICROSOFT CORPORATION: States Ask Maryland Court To Review Settlement
MICROSOFT CORPORATION: Apple Opposes "Anti-Competitive" Settlement

NETWORK ENGINES: Milberg Weiss Commences Securities Suit in S.D. NY
PAC-WEST TELECOMM: Milberg Weiss Lodges Securities Suit in S.D. NY
SILICON IMAGE: Milberg Weiss Commences Securities Suit in S.D. New York
SMTC CORPORATION: Denies Allegations in Securities Suit in S.D. NY
SONICWALL INC.: Milberg Weiss Initiates Securities Suit in S.D. NY

VALICERT INC.: Milberg Weiss Initiates Securities Suit in S.D. New York
VIDAMED INC.: Faces Suits For Breach of Fiduciary Duty In DE Court
XO COMMUNICATIONS: Rabin Peckel Commences Securities Suit in E.D. VA
XO COMMUNICATIONS: Hoffman Edelson Lodges Securities Suit in E.D. VA
XO COMMUNICATIONS: Cohen Milstein Initiates Securities Suit in E.D. VA
YAHOO FRANCE: Win in US Nazi Suit Appealed by French Advocacy Groups


                           *********


AAA MICHIGAN: Appeals Court Rules Firm Not Liable For Phone, TV Bills
---------------------------------------------------------------------
The Michigan Court of Appeals unanimously ruled that AAA Michigan is
not obligated to pay for telephone and television access charges for an
insured person hospitalized by an injury, Associated Press recently
reported.

Angela Hamilton filed the suit in Wayne County Circuit Court after her
teenage daughter Tiandra Gunn was severely and permanently injured in a
bus accident.  Her insurance covered all Tiandra's expenses during an
eight-week hospitalization except for a $140 charge for telephone and
television use. Wayne County Judge Marianne Battani ruled that Ms.
Hamilton could recover those funds, finding the telephone and TV were
"reasonable services" provided an injured person, especially one who
has had a leg amputated.

The appellate court ruled that Judge Battani erred in her decision when
she awarded the benefits and certified a class of plaintiffs who could
pursue a class-action lawsuit seeking such benefits.  The court ruled
that allowing payment for the phone and TV access charges "was an
overly broad remedy that runs afoul" of the no-fault law.  The court
permitted the Company to refuse to pay regular inpatient telephone and
television access charges.

The Company applauded the ruling, and said it doesn't affect "payment
for reasonable and necessary expenses incurred" by injured people.  
Company spokeswoman Nancy Cain said, "Michigan's no-fault law attempts
to provide a balance between excellent medical benefits for auto
accident victims and the cost of providing those benefits.We are
pleased that the court agreed with our position that allowing these
extra benefits as a normal expense would upset that balance."


ADAMS MARK: Agrees To Settle NAACP Racial Bias Claims For $2 Million
--------------------------------------------------------------------
Adams Mark Hotel Chain forged a $2 million agreement with the National
Association for the Advancement of Colored People (NAACP) to settle a
class action suit and to end the organization's national boycott
against the Company.

According to a Florida Times-Union report, the agreement calls for the
hotel chain to pay various individuals claiming the hotel had
discriminated and donate to certain colleges.  As a result, the NAACP
called off its national boycott and voluntarily dismissed the class
action it filed along with the state Attorney General's office and the
US Department of Justice.

The Company was accused of discriminating against black customers.  
According to Florida Attorney General Bob Butterworth, 109 African-
American consumers claimed they were discriminated against after a
reunion in Daytona Beach.  They alleged they had to park in a remote
lot, were forced to wear wristbands, told to put down unreasonable
deposits to use the telephone in their rooms or drink from the mini-
bar.  Additionally, black guests were given a special room service menu
that included only fried and barbecue chicken, foods based on social
stereotypes, Assistant Attorney General Paul Hancock said.

The Company's discrimination record was an issue in Jacksonville as far
back as 1998, when company officials negotiated with the city to build
its 966-room convention hotel on the downtown river front.  The city
gave the hotel $21 million in incentives to build its $216 million, 18-
storey hotel.

Under the settlements, the Company will make a one-time donation of:

     (1) $100,000 to Edward Waters College;

     (2) $250,000 to Florida A&M University;

     (3) $150,000 to Bethune-Cookman College; and

     (4) $100,000 to Florida Memorial College.

The money is to help develop tuition scholarships, internships and
cooperative education programs in hotel and hospitality management or
business administration.

Additionally, the Company will settle for $1 million a lawsuit filed by
five people complaining of discrimination at the Daytona Beach Hotel.  
The Company will also compensate for $400,000 hotel guests who attended
the 1999 Black College Reunion, the genesis of the lawsuits and
boycott.

Fred Kummer, President and Chief Executive Officer of HBE Corporation,
parent company of the hotel, said in a statement, "We are very pleased
to finally put this issue behind us."  Isaiah Rumlin, head of
Jacksonville's chapter of the NAACP, also said in a statement, "We are
pleased that this situation is over with.  We're going to have to see
how Adams Mark does in the future."  He added that he thinks the hotel
and NAACP can work together.

Hotel guests staying at the Daytona Beach Hotel April 9-10, 1999, can
collect up to $1,000 for the troubles experienced there.  The State
Attorney General's office is still locating possible recipients who
wish to file a claim for settlement eligibility.  Those seeking more
information about the claims process should call the Attorney General's
civil rights office at 954.712.4607.


AETNA INC.: Rosen Law Firm Commences Securities Suit in S.D. New York
---------------------------------------------------------------------
The Rosen Law Firm lodged a securities class action in the United
States District Court for the Southern District of New York on behalf
of purchasers of Aetna, Inc. (Nasdaq: AET) publicly traded securities
during the period between December 1, 2000 through April 9, 2001,
inclusive. The complaint charges the Company and certain of its
officers and directors, with issuing a series of material
misrepresentations to the market before and during the class period,
thereby artificially inflating the price of the Company's common stock.

Specifically, the complaint alleges that the Company issued statements
concerning, among other things, its ability to control and monitor its
costs and obligations in light of its expected and actual sales.
Defendants knew that the Company's management systems, procedures and
controls for monitoring such costs were lacking but they made positive
statements about management, controls, and abilities to control costs
while concealing the defective management systems.

Between April 10, 2001 and May 8, 2001, the Company surprised the
market by announcing higher-than-anticipated medical costs during the
fourth quarter of 2000 and the first quarter of 2001 due to faulty
record-keeping. The error caused the payment of millions of dollars in
medical claims for former clients, and the absence of necessary
management control systems required for management to know Aetna's
obligations and proper medical costs.

Finally, on June 7, 2001, it was revealed that the cause of much of the
Company's financial woes was that: "Poor record-keeping has resulted in
. paying millions of dollars in medical claims for people whose
benefits have expired." During the class period, the value of Company
shares had been artificially inflated to almost $43.00 per share but,
as a result of these disclosures, the Company's stock price plunged in
excess of forty percent to below $25.00 per share.

For further details, contact Laurence Rosen by Phone: 866.767.3653
(toll-free) by E-mail: lrosen@rosenlegal.com or visit the firm's
Website: http://www.rosenlegal.com   


ASSISTED CARE: Employees File $12M Suit Due To Wage, Working Conditions
-----------------------------------------------------------------------
Assisted Care, Inc. faces a $12 million class action filed by its
employees over unsatisfactory wage policies and working conditions in
the course of serving a three-year, $3.2 million contract with San
Joaquin County to provide health care and home care for senior citizens
and disabled people.

Six employees filed the suit in San Joaquin Superior Court on behalf of
the 200 or so health care workers who have been employed with the
company over the last four years, according to a Modesto Bee report.  
The suit alleges the Company:

     (1) Did not pay wages on time,

     (2) Refused to pay overtime and vacation and travel expenses, and

     (3) Did not provide rest periods, and forced employees to work
         seven or more consecutive days

According to Dana Simon, Director of the Homecare Division of Service
Employees International Union Local 250, the Company cannot retain
workers because of the way it treats them, "The most dedicated workers
stick around because they love their clients. Those people are being
run ragged.There's not enough staff right now that the company can meet
its obligation to the county or the clients."

Employees also allege that workers receive minimum wage for work-
intensive jobs that include helping disabled people bathe and dress,
changing intravenous lines and colostomy bags, cooking, housekeeping
and shopping.

Mr. Simon told the Modesto Bee that the union tried to negotiate with
company officials, but they refused to cooperate.  "The workers have
barely enough money to pay the rent.(Assisted Care) has been made aware
of the facts, and they just wouldn't do anything about it," he said.

Workers involved in the lawsuit pledged that there would be no
interruption of service. Joseph Chelli, Deputy Director of the county's
Human Services Agency, said, "So far, (the dispute) hasn't disrupted
service and we don't expect it to. We're watching it very closely."  He
added that the county recently monitored the Company and did not find
any violations.

According to the Modesto Bee, Chris Malicki, Senior Vice President and
General Manager of Assisted Care, said he had not been served with the
lawsuit. He declined comment.


AUTO INSURANCE: GA Ruling on Vehicle Damage Applies To All Insurers
-------------------------------------------------------------------
In response to a recent landmark ruling by Georgia's Supreme Court,
that state's insurance commissioner announced that he will direct all
automobile insurers, not just the lawsuit's defendant, State Farm -
to reimburse policy holders for the diminished value of cars damaged in
collisions, The Atlanta Journal-Constitution reported recently.  

"We view the Supreme Court decision to be the law of the state of
Georgia, and it applies to all insurance companies," said Insurance
Commissioner, John Oxendine.  Mr. Oxendine said he intends to issue the
diminished value directive next week.  Insurance companies that fail to
comply could face everything from fines to expulsion from the state.

The Supreme Court agreed with the contention of two State Farm policy
holders, who had filed a class-action lawsuit, that wrecked cars
are worth less on the open market no matter how well they are repaired,
and that insurance companies are liable to pay the difference.

David J. Colmans of the Georgia Insurance Information Service, which
represents State Farm and many other insurance providers that operate
in the state, said the cost of diminished value claims could end up
being passed on to consumers.  "If insurance companies are paying
considerably more money, it stands to reason they would have to look at
their rate structures," he said.

Cathy Steinberg, the state consumers' insurance advocate who reviews
all rate increase requests under authority of the governor, said that
Mr. Oxendine would have to approve any rate increases.  Insurance
companies, she said, would have to prove they were spending more on
diminished value claims before they could pass on the costs.  Left to
be determined is exactly how insurance companies will calculate the
diminished values.  

Lawyers for State Farm and the policyholders who brought the lawsuit
will argue this issue next week in Muscogee County Superior Court,
where the case originated nearly two years ago.

The first to be paid will be the State Farm policyholders whose claims
date back to December 1 of last year, when a lower court judge first
ordered State Farm to pay diminished value claims, said C. Neal Pope,
the Columbus lawyer who filed the case against State Farm.  State Farm
put $10 million into an account to cover the claims in the event it
lost its appeal. Given the Supreme Court's ruling, the Muscogee judge
will have to order the money released from the account.  Mr. Pope said
he will make that request at the hearing to be held next week.

Once the money is released, the first wave of policyholders affected by
the class-action lawsuit could receive information by early next year
telling them how to collect.  Payouts could range from a few dollars to
thousands, Mr. Pope estimated.  Those who filed claims before December
1 of last year, will have to wait longer, because a separate case
granting that group relief is still on appeal with the Supreme Court,
which is not expected to rule until April, Mr. Pope explained.

Eligible policyholders would have had to file a claim after
December 23, 1993.  State Farm has set aside $50 million for those back
claims.  The two lawsuits affect as many as 500,000 claims, Mr. Pope
has said.  State Farm insures more than 20 percent of the state's
drivers.

Similar lawsuits seeking back claims are pending in Muscogee County
against eight other insurance companies, including Allstate and
Progressive, who declined to comment.  Together, the lawsuits affect
about 70 percent of Georgia's drivers.


CANADA: Toronto Doctor Settles For $27M Suit Due To Hepatitis Outbreak
----------------------------------------------------------------------
More than 14,000 Canadians are entitled to share in a $27.5 million
settlement for the suit filed against neurologist Ronald Wilson after
an estimated 1,000 people contracted hepatitis B six years ago from
contaminated needles traced to his Toronto clinic.  The settlement is
believed to be the largest medical malpractice settlement in Canada's
history.

According to investigators, contaminated needles were inserted into his
patients' scalps during electroencephalogram brain exams, or EEGs,
tests that are used to diagnose conditions like epilepsy and are
routinely performed with disposable paddles and tape. Dr. Wilson's
technologist, who conducted the tests with him, had a highly infectious
case of hepatitis B and did not wear surgical gloves. As many as 1,000
people contracted hepatitis, one of the largest outbreaks in the
country's history. One victim supposedly died while many men and women
became seriously ill.

Ed Hyer, one of the lawyers involved in the class action, told CBC
news, "I think anybody who understood the case and the facts of the
case would agree that the settlement is a fair one."  The doctor's
insurer agreed to pay money to thousands of former patients, whether
they were infected or not. Larger amounts will go to those who tested
positive for the virus.

Dr. Wilson continues to deny any wrongdoing and is now running a sleep
clinic in Toronto.  He will face a disciplinary hearing by the Ontario
College of Physicians and Surgeons next month.


CHASE MANHATTAN: Sued For Safety Deposit Box Losses in September Attack
-----------------------------------------------------------------------
Chase Manhattan Bank faces a negligence class action filed by a woman
who rented a safe deposit box at the bank's 5 World Trade Center office
on behalf of herself and 2,500 who also rented safe deposit boxes at
the office near the site of the September 11 terrorist attacks.

Sylvia Yamamura filed the suit, now pending in the Manhattan Supreme
Court, alleging the bank failed to take adequate steps to recover
valuables left in the vault.  The suit also seeks an injunction to
prevent the building from being demolished so that she can be
"reasonably" certain that the valuables cannot be recovered, according
to a Reuters report.

Mrs. Yamamura said she deposited jewelry and other heirlooms that had
been in her family for generations.  After the attacks, the Bank
reportedly advised her that the boxes had been located and that it
would be recovered.  The suit states "High-ranking Chase
representatives emphasized that the secured steel-reinforced vault is
virtually indestructible.and that the casing was fire-proof."

Later, the Bank sent a letter saying that it was "abandoning" efforts
to recover their valuables stating that the boxes were "unrecoverable
because of structural damage to the vault.unfortunately, our inspection
(of the 5 WTC Branch) concluded that the weight of the debris as well
as the extreme heat generated by the fires not only severely damaged
the structure of the vault, but also either disintegrated the contents
or severely damaged the boxes to the point that they are inaccessible."

The suit charges the bank, and the J.P. Morgan Chase and Company with
"negligent failure to provide safe protection for the valuables
entrusted to them." Ms. Yamamura contends that the Bank will not be
providing any compensation for her loss, saying in her suit that the
bank "will not make further efforts to recover valuables from the vault
prior to demolition of the building."

She further alleges that the Bank was successful in recovering
"significant sums of cash" that had been stored in 5 World Trade Center
but was "simply unwilling to make the same effort and undertake the
same expense to recover" irreplaceable possessions of Yamamura and
other members of the class action.  She said the members of the class
were "also threatened with the loss of heirlooms to which no monetary
value can be attributed."


CHRISTIAN MEMORIAL: Detroit Resident Sues For Nuisance Marketing Calls
----------------------------------------------------------------------
Christian Memorial Cultural Center Inc. faces a class action filed by a
40-year old Detroit resident, alleging the company repeatedly called
him and circumvented his caller ID, reported the Associated Press
recently.  The suit, which also names the Company's parent SCI Michigan
Funeral Services, claims the defendants violated state law on several
points, including blocking the number from the plaintiff's ID in order
to make their sales pitch.

"I've documented more than 400 nuisance calls.  Usually, they try to
hide their identity. "When you ask for a company name and address, you
get obscenities," Plaintiff James Tucker told the Detroit News.

Michigan law states that a company cannot solicit a person if that
company blocks the display of caller identification information.  It's
a penalty punishable by up to 10 days in jail and a $1,000 fine.  
Daniel Hunter, an Ypsilanti attorney who filed the lawsuit for the
plaintiff, is seeking more than $100,000 in damages for Mr. Tucker.  
However, he said the damages could go as high as $150 million,
depending on the number of clients he finds to add to the litigation.

Dewuse Guyton, senior attorney for SCI Michigan Funeral Services in
Texas, declined to comment.  However, in a March 2000 statement to the
Michigan Attorney General's Office in Texas, Mr. Guyton admitted that
Christian Memorial had blocked company information from caller IDs and
did not give an address or telephone number when requested.


CORNING INC.: Milberg Weiss Initiates Securities Suit in W.D. New York
----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP filed a securities class
action on behalf of purchasers of the common stock or zero coupon
convertible debentures of Corning, Inc. (NASDAQ:GLW) pursuant to a
prospectus dated November 2, 2000. The suit is pending in the United
States District Court, Western District of New York against the Company
and:

     (1) Roger A. Ackerman,

     (2) Katherine A. Asbeck and

     (3) James B. Flaws

The suit alleges that defendants violated Sections 11, 12(a)(2) and 15
of the Securities Act of 1933 by issuing a materially false and
misleading registration statement and prospectus in connection with the
Company's offering of common stock and debentures in November 2000.  
Specifically, the complaint alleges that the Prospectus was materially
false and misleading, among other reasons, because:

     (i) it stated that demand for the Company's products was robust;

    (ii) it omitted to disclose that the Company was amassing hundreds
         of millions of dollars of obsolete inventory that would have
         to be written-off; and

   (iii) given the foregoing, the projection of 25% earnings growth in
         2001, contained in the prospectus, was lacking in a
         reasonable basis at all times.

In July 2001, the Company announced it was taking a $5.1 billion charge
primarily related to two recent acquisitions, that it would also write-
off $300 million in excess and obsolete inventory, and that it would
cut 1,000 jobs and close three plants. On July 25, 2001, the Company
reported a massive second-quarter loss of $4.76 billion, or $5.13 per
share. Company shares closed that day at $13.77, down 80% from the
offering price.

For more details, contact Steven G. Schulman or Samuel H. Rudman by
Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: 800.320.5081 by E-mail: corningcase@milbergNY.com or visit the
firm's Website: http://www.milberg.com


DECODE GENETICS: Milberg Weiss Commences Securities Suit in S.D. NY
-------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of deCODE Genetics,
Inc. (NASDAQ:DCGN) between July 17, 2000 and December 6, 2000,
inclusive in the United States District Court, Southern District of New
York against the Company and:

     (1) Kari Stefansson,

     (2) Axel Nielsen,

     (3) Lehman Brothers, Inc., and

     (4) Morgan Stanley & Co., Inc.

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. In July 2000, the
Company commenced an initial public offering of 9,600,000 of its shares
of common stock, at an offering price of $18 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:

     (i) the underwriter defendants had solicited and received
         excessive and undisclosed commissions from certain investors
         in exchange for which they allocated to those investors
         material portions of the restricted number of shares issued in
         connection with the IPO; and

    (ii) the underwriter defendants had entered into agreements with
         customers whereby they agreed to allocate 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 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: http://www.milberg.com


DJ ORTHOPEDICS: Bernstein Liebhard Commences Securities Suit in S.D. NY
-----------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP initiated a securities class
action on behalf all persons who acquired DJ Orthopedics, Inc. (NYSE:
DJO) securities pursuant to or traceable to the Company's initial
public offering in November 15, 2001 in the United States District
Court for the Southern District of New York, naming the Company and:

     (1) Leslie H. Cross,

     (2) Cyril Talbot, III,

     (3) Charles T. Orsatti,

     (4) JP Morgan Securities Inc.,

     (5) UBS Warburg LLC,

     (6) US Bancorp Piper Jaffray Inc., and

     (7) First Union Securities, Inc.

The suit alleges that defendants violated Sections 11, 12(a)(2), and 15
of the Securities Act of 1933, by issuing a registration statement and
prospectus in connection with the IPO, which contained materially false
and misleading statements and omissions.  In the IPO, the Company sold
9 million shares of common stock to the investing public at $17 per
share.

Specifically, the complaint charges that the prospectus failed to
disclose a sharp downward revision in the Company's fourth quarter 2001
earnings forecast. The complaint alleges that shortly after the
commencement of trading on November 15, 2001, the IPO share price
dropped precipitously from $17 per share upon news that analysts
adjusted downward the Company's fourth quarter earnings forecast.  
These fourth quarter earnings estimates were touted by defendants in
"road shows" to investors prior to the IPO.

The news drove the price of the Company's shares down by at least 10%,
to close at $15.25 per share, on heavy trading volume of 7.3 million
shares. By its third full day of trading, the Company's shares were
down to $13.16 per share, or over 22% off the IPO price.

For more details, contact 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 or by E-mail: DJO@bernlieb.com or
visit the firm's Website: http://www.bernlieb.com  


EAST TIMOR: Refugees Sue Ex-President For Moral, Material Damages
-----------------------------------------------------------------
Former deputy commander of the East Timorese pro-integration fighters,
Enrico Guterres, recently commenced a class action with the Central
Jakarta court against the former president, B.J. Habibie, to pay Rp1
trillion in indemnity, Antara, the Indonesian National News Agency,
recently reported.

The lawsuit pointed out that Mr. Habibie, who has been named defendant
II, is personally responsible for agreeing to the implementation of a
popular ballot in East Timor, in August 1999, because he made the
decision without asking for approval from the House of Representatives.
The suit alleges that Mr. Habibie's policy inflicted moral and material
losses upon pro-integration East Timorese.  "After losing the popular
ballot, pro-integration East Timorese had been forced to flee to East
Nusa Tenggara (284,148 persons) and to Java (2,736 persons)," the
lawsuit contended.  The suit, in which Mr. Guterres and Nicholas Lay
are acting on behalf of the East Timorese refugees, also named the
Indonesian government as a defendant, for violating the law.

Specifically, the lawsuit is accusing the Indonesian government under
President Megawati Soekarnoputri of allowing pro-integration refugees
to return to East Timor without proper legal protection, contrary to
East Timor law or international law.  The Indonesian government also
has been charged with forcing the refugees to be repatriated, and the
lawsuit further states that the Indonesian government should relocate
the pro-integrationists to one location on Timor Island.

Ex-President Habibie's legal counsel, Yan Djuanda, pointed out that the
decision to agree with the holding of the popular ballot was a
government policy, "The government policy was not detached from the
situation and condition at that time."

He pointed out that before the holding of the popular ballot, the East
Timor issue had been a point of conflict in the international world.  
Mr. Djuanda then referred to the existence of a resolution of the
United Nations Security Council and eight decisions of the UN General
Assembly on the status of East Timor.  "So, it is obvious that the
holding of the popular ballot was directed to reach the legal certainty
(on the status of East Timor)," Mr. Djuanda said.


ENRON CORPORATION: Scott Scott Files Amended Securities Suit in S.D. TX
-----------------------------------------------------------------------
Scott & Scott, LLC lodged an amended securities class action in the
United States District Court for the Southern District of Texas on
behalf of purchasers of publicly traded debt securities of Enron
Corporation (NYSE:ENE) during the period of October 19, 1998 to
November 19, 2001, inclusive.

The charitable fund that filed this lawsuit helps to provide education
to children, teach young adults job skills, assist the mentally
impaired/challenged and provides funds for social services. It
generally dedicates its resources to those charitable organizations
that provide pertinent social services.

The suit charges Arthur Anderson LLP, the Company's auditor, and
twenty-nine (29) Company officers and directors with violations of
Sections 11,12(a)(2) and 15 of the Securities Exchange Act of 1933.
Insiders are alleged to have reaped over 1 billion dollars from insider
trading. As readily reported, the Company has announced that it will
restate its earnings for 1997, 1998, 1999 and 2000, and the first two
quarters of 2001. The Company is not named as defendant in this action,
which is filed solely on behalf of debt holders, as it has filed for
protection pursuant to Chapter 11 of the U.S. Bankruptcy Code.

For more details, contact David R. Scott or Neil Rothstein by Mail: PO
Box 192, 108 Norwich Avenue, Colchester, CT 06415 by Phone:
800.404.7770 (toll free) or 860.537.5537 by Fax: 860.537.4432 by E-
mail: scottlaw@scott-scott.com or visit the firm's Website: www.scott-
scott.com.


HAWAII: Consent Decree To Improve Children's Special Services Fails
-------------------------------------------------------------------
Hawaiian lawmakers recently discovered that the Hawaii Federal Court's
consent decree, despite good intentions to improve special education
and health services for Hawaiian children with mental disabilities,
"has also unleashed a Pandora's box of unintended consequences,"
according to a recent Associated Press report.

Under the 1994 consent decree resulting from a class-action lawsuit
brought by the parents and guardians of seven children, the state
agreed to provide the health and education services required under the
federal law.  In May 2000, U.S. District Judge David Ezra found the
state in contempt of the decree for failing to meet his deadlines for
compliance.

A Senate-House Investigative Committee undertook an investigative
hearing into what looked like a large investment of funds for a special
services system which did not improve.  A recent draft report by the
joint committee said, "The unclear requirements for compliance, the
extraordinary powers granted by the Federal Court to certain
administrators without any apparent oversight, and the Court's
curtailment of the Legislature's access to information have exacerbated
troubled governmental programs already mired in fiscal mismanagement."

The draft report stated further that the Committee had heard testimony
about apparent conflicts of interest, profiteering and wasteful
spending.  "Such practices erode public confidence in government and
erode the morale of those public servants committed to doing a good
job," the report stated. The draft report on the Committee's six-month
investigation was sent to some 60 people who either testified under
oath before the committee or who have a known interest in the
investigation, giving them until December 18 to submit a response to be
appended to the final report.

The Committee concluded that:

     (1) implementing the consent decree was hampered by unclear
         compliance requirements;

     (2) the Department of Education (DOE) and Department of Health's
         (DOH) exploited the Federal Court's "money is no
         object" expectations;

     (3) their poor oversight and accountability; and

     (4) the "superpowers" the court allowed department heads to  
         bypass procurement and personnel laws.

These factors fostered an "environment of waste and profiteering," it
said.

>From $125 million, which the DOE and DOH spent on special education
programs in 1994, the cost has swelled to $328 million in 2001, with
the number of "Felix" children being served going from 2,894 in 1994 to
11,842, the draft report said.  Since 1994, the state has spent nearly
$1.5 billion on "Felix" programs, not counting federal funds and costs
of other agencies such as attorneys' fees and costs of the Department
of Human Services, stated the draft report.

Compliance review was to be achieved by measuring compliance within a
sample selection of various public school complexes statewide, using a
"service testing instrument" designed specifically for this purpose.
This previously unused tool had to be refined and structured with
significant help from DOE administrators.
However, the investigative committee said, in the draft report, that it
was blocked from verifying the validity of the sample selection,
because its subpoenas were quashed by Judge Ezra, who also prohibited
access to the case files.  The committee criticized Judge Ezra's
actions in its efforts to subpoena the designers of the "service
testing instrument,"

Judge Ezra's Court Monitor Ivor Groves, a nationally known adolescent
mental health expert, and Ray Foster, Mr. Groves' business partner in
Human Systems and Outcomes, Inc., characterizing the Judge's conduct as
"highly unusual."  The Committee said it was attempting to have Judge
Ezra recused from its efforts to have its subpoenas reconsidered.

"These actions, together with the Judge's highly critical and
unsupported comments about the Committee, create the appearance that
the judge, instead of remaining a detached and neutral adjudicator,
has, perhaps unwittingly, become an interested participant, attempting
to protect his appointees and himself," said the Committee. The report,
in its final form, has to be submitted to the Hawaii Legislature by
December 26.


INDIAN AFFAIRS: Interior To Unlink Indian Funds Computers From Web
------------------------------------------------------------------
US Federal Judge Royce Lamberth censured lawyers for the Interior
Department for not mentioning that computers that could access data
from the accounting system keeping track of royalties from Indian lands
were still connected to the Internet, even after Judge Lamberth issued
an order to disconnect the system from the Internet until flaws in the
system that make it vulnerable to hackers are fixed.

The Judge called another hearing and ordered the system fixed to his
satisfaction. He told Justice Department lawyer Matthew Fadar "I don't
believe one word of what you are telling me.  You are just harming your
own credibility."

This is but the latest of dramatic courtroom confrontations between
Judge Lamberth and Department of Interior officials and their lawyers.  
First, came the class-action lawsuit by the 300,000 Indians to get a
full accounting of billions of dollars, processed over the years by the
banking system established by Congress in the 19th century to receive
the royalties and rents due the Indians for the use of their lands for
grazing, mining and other activities on their lands.

Second, came a string of Interior Department Secretaries who failed to
obey court orders to  fix the flawed accounting system used to process
and allocate the Indians' funds.  The latest of whom is Secretary Gale
Norton, who is to appear later this month before Judge Lamberth to show
why she should not be held in contempt for not obeying his order to
"fix" the accounting system.

Third, there has arrived on the scene the issue of the vulnerability of
the accounting system to hackers, accompanied by the failure of
Interior's lawyers to make a full disclosure to Judge Lamberth about
the continued connection to the Internet of Interior's personal
computers dealing with Indian Affairs, in contravention of his order to
cut computer connections, in order to protect Indian accounts from
invasion.


JAPAN: Premier Sued For Glossing Over Yasukuni War Shrine Visit
---------------------------------------------------------------
Japan's Prime Minister Junichiro Koizumi is facing a class action filed
in Tokyo District Court, over his pilgrimage to a controversial war
shrine honoring wartime leaders.  About 240 people filed the lawsuit
against the premier as well as Tokyo's Governor Shintaro Ishihara over
their visits to Tokyo's Yasukuni Shrine to mark the anniversary of
Japan's surrender to the US-led allied powers in World War II.

Claiming that the visits violated the constitutional dictum of
separation between state and religion, the plaintiffs, including South
Koreans, asked for 30,000 yen ($240) each in compensation for
infringement of their religious rights.  The shrine is dedicated to
Japan's war dead, including 14 Class-A war criminals executed by the
allies after World War II, and is seen by many in Asia as a symbol of
Japanese nationalism.

It is the fourth legal attack against Koizumi over the visit to the
shrine, and also has sparked anger in South Korea, China and other
Asian countries and areas that are home to victims of Japan's World War
II aggression.

On November 1, about 640 people, including relatives of war dead, filed
lawsuits against the Premier in Osaka, alleging the visit was
unconstitutional and demanding a ban on his future pilgrimages to the
shrine.  They also sought damages for psychological suffering caused by
the visit.  A similar suit has been filed in the southwestern cities of
Matsuyama and Fukuoka.

Takemitsu Ogawa, an 88-year-old doctor and one of the plaintiffs, told
a news conference that "I want to bring to light that they (Premier
Koizumi and Governor Ishihara) are making the mistake of irresponsibly
glossing over the war."


JAZZTEL PLC: Schiffrin Barroway Commences Securities Suit in S.D. NY
--------------------------------------------------------------------
Schiffrin and Barroway LLP initiated a securities class action on
behalf of purchasers of the common stock of Jazztel p.l.c.
(NASDAQ:JAZZ) between December 8, 1999 and December 6, 2000, inclusive.  
The suit is pending in the United States District Court, Southern
District of New York against the Company, certain of its officers and
its underwriters.

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. In December 1999, the
Company commenced an initial public offering of 10,125,000 of its
shares of common stock, at an offering price of $17.447 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:

     (i) the underwriters had solicited and received excessive and
         undisclosed commissions from certain investors in exchange for
         which the underwriters allocated to those investors material
         portions of the restricted number of shares issued in
         connection with the IPO; and

    (ii) the underwriters had entered into agreements with customers
         whereby the underwriters agreed to allocate 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 further details, 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


MAXYGEN INC.: Schiffrin Barroway Commences Securities Suit in S.D. NY
---------------------------------------------------------------------
Schiffrin and Barroway LLP initiates a securities class action on
behalf of purchasers of the common stock of Maxygen, Inc. (NASDAQ:MAXY)
between December 15, 1999 and December 6, 2000, inclusive.  The suit is
pending in the United States District Court, Southern District of New
York against the Company, certain of its officers and its underwriters.

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. In December 1999, the
Company commenced an initial public offering of 6,000,000 of its shares
of common stock, at an offering price of $16 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:

     (i) the underwriters had solicited and received excessive and
         undisclosed commissions from certain investors in exchange for
         which the underwriters allocated to those investors material
         portions of the restricted number of shares issued in
         connection with the IPO; and

    (ii) the underwriters had entered into agreements with customers
         whereby the underwriters agreed to allocate 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 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


MICROSOFT CORPORATION: States Ask Maryland Court To Review Settlement
---------------------------------------------------------------------
Four states are jointly asking Maryland Federal Court to conduct a
careful review of the proposed $1 billion national settlement of
private class actions against software giant Microsoft Corporation, the
Associated Press recently reported.   

Maine Attorney General Steven Rowe, said in a statement, that the four
states, Connecticut, Iowa, Maine and Vermont, are asking Maryland
Federal Court to conduct a review in recognition of "the public
importance of securing meaningful remedies for Microsoft's proven
antitrust violations."

A letter to the Court, outlining the concerns of the four states, was
signed by Attorney General Rowe on behalf of himself and the attorneys
general of the other three states.  The private lawsuits addressed by
the letter are separate from the government's case against Microsoft,
in which a settlement also is pending.  Mr. Rowe also said, ""We must
ensure that the relief afforded in this settlement is adequate,
appropriate and in the public interest."

Under the proposed settlement, the Company, acting through a
foundation, would donate hardware and software to disadvantaged schools
nationwide.  Mr. Rowe's office said that the letter from the four
states urged the court to consider whether the settlement would be
adequate and whether it would effectively enhance the Company's market
power.  

The office also said that the letter raised questions about the
eligibility standards for schools obtaining relief and the actual
benefits that would be made available.  Eligible schools would be those
with 70 percent student eligibility for federally assisted lunch
programs.  Mr. Rowe's office added that less than 20 schools in Maine
would be eligible.

Microsoft spokesman Jim Desler said that the company was confident it
would prevail in court against various class action claims, but was
willing to compromise as a way to "assist underserved communities
rather than continue with protracted litigation."  Mr. Desler called
the pending settlement "a very well thought-out and carefully developed
education proposal."

A hearing on a motion for preliminary approval of the settlement is
scheduled in Baltimore on December 10.   


MICROSOFT CORPORATION: Apple Opposes "Anti-Competitive" Settlement
------------------------------------------------------------------
Apple Computer Corporation, has formally opposed rival Microsoft
Corporation's proposed settlement to hundreds of consumer class actions
in which Microsoft would donate $1 billion in software and computers to
schools nationwide.  Apple filed a supplemental brief in the US
District Court in Baltimore, Maryland, saying that the agreement would
constitute "a massive subsidy" for the adoption of Microsoft
technology.

According to a recent report by Newsbytes News Network, the 31-page
brief urged US Federal Judge J. Frederick Motz to reject Microsoft's
proposed settlement.   

The Company has offered to donate $1 billion in free software and
refurbished computers to 12,500 poor U.S. schools, as a means of
settling more than 150 private antitrust claims that it used its
monopoly in the computer operating system market to overcharge
consumers for its products.  

Apple, on the other hand, argued in its brief that 80 to 90 percent of
the settlement's value would be closely tied to the schools' adoption
of Microsoft technology, thereby giving the Company "extraordinary
leverage in the public schools."

Apple said the court should amend the settlement to provide that
Microsoft make a cash-only grant to an independent foundation.  "Such a
structure would ensure the freedom of choice necessary to meet the
schools' needs, while preventing Microsoft from completely dominating
what has been a competitive education market," Apple's attorneys, said.
Apple and Microsoft are locked in a tight battle for the education
Market, with Apple saying it now controls roughly 47 percent of the
market, compared to Microsoft's 53 percent share. At a lengthy hearing
on the settlement last month, Judge Motz was receptive to Apple's
argument, noting that Microsoft's offer to provide free Windows
software could "have an indirect anti-competitive effect" on the
education market.

Apple CEO Steve Jobs said in a prepared statement that "The centerpiece
of Microsoft's proposed $1 billion civil antitrust settlement is their
donation of Microsoft software, which they value at $830 million, to
our schools.  We think people should know that the actual costs to
Microsoft for this donated software will likely be under $1 million.  
We think a far better settlement is for Microsoft to give their
proposed $1 billion.to an independent foundation, which will provide
our most needy schools with the computer technology of their choice."
Judge Motz is holding a hearing on December 10 to receive the Company's
testimony on its proposal for settlement.


NETWORK ENGINES: Milberg Weiss Commences Securities Suit in S.D. NY
-------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of Network Engines
Inc. (NASDAQ:NENG) between July 13, 2000 and December 6, 2000,
inclusive.  The suit is pending in the United States District Court,
Southern District of New York against the Company and:

     (1) Lawrence A. Genovesi, CEO, President, Chairman and Chief
          Technology Officer,

     (2) Douglas G. Bryant, CFO and director,

     (3) FleetBoston Robertson Stephens Inc.,

     (4) Credit Suisse First Boston Corp.,

     (5) Goldman, Sachs & Co.,

     (6) Lehman Brothers Inc. and

     (7) Salomon Smith Barney Inc.

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. In July 2000, the
Company commenced an initial public offering of 6,500,000 of its shares
of common stock, at an offering price of $17 per share.  In connection
therewith, the Company filed a registration statement, which
incorporated a prospectus with the SEC. The suit further alleges that
the prospectus was materially false and misleading because it failed to
disclose, among other things, that:

     (i) the underwriter defendants had solicited and received
         excessive and undisclosed commissions from certain investors
         in exchange for which the underwriter defendants allocated to
         those investors material portions of the restricted number of
         shares issued in connection with the IPO; and

    (ii) the underwriter defendants had entered into agreements with
         customers whereby the underwriter defendants agreed to
         allocate 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 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: http://www.milberg.com


PAC-WEST TELECOMM: Milberg Weiss Lodges Securities Suit in S.D. NY
------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of Pac-West Telecomm,
Inc. (NASDAQ: PACW) between November 3, 1999 and December 6, 2000,
inclusive.  The suit is pending in the United States District Court,
Southern District of New York against the Company and:

     (1) Wallace W. Griffin,

     (2) Richard E. Bryson,

     (3) Dennis V. Meyer,

     (4) Bear Stearns & Co., Inc.,

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

     (6) Goldman, Sachs & Co. and

     (7) Salomon Smith Barney, Inc.

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. In November 1999, the
Company commenced an initial public offering of 12,600,000 of its
shares of common stock, at an offering price of $10 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:

     (i) the underwriter defendants had solicited and received
         excessive and undisclosed commissions from certain investors
         in exchange for which they allocated to those investors
         material portions of the restricted number of shares issued in
         connection with the IPO; and

    (ii) the underwriter defendants had entered into agreements with
         customers whereby they 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 details, contact Steven G. Schulman or Samuel H. Rudman by
Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: 800.320.5081 or visit the firm's Website: http://www.milberg.com


SILICON IMAGE: Milberg Weiss Commences Securities Suit in S.D. New York
-----------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of Silicon Image Inc.
(NASDAQ:SIMG) between October 5, 1999 and December 6, 2000, inclusive.  
The suit is pending in the United States District Court, Southern
District of New York against the Company and:

     (1) David D. Lee, CEO, President and Chairman,

     (2) Daniel K. Atler, CFO and Vice President of Finance and
         Administration,

     (3) Credit Suisse First Boston Corp.,

     (4) FleetBoston Robertson Stephens Inc.,

     (5) Bear, Stearns & Co. Inc. and

     (6) Salomon Smith Barney Inc.

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. In October 1999, the
Company commenced an initial public offering of 3,900,000 of its shares
of common stock, at an offering price of $12 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:

     (i) the underwriter defendants had solicited and received
         excessive and undisclosed commissions from certain investors
         in exchange for which the underwriter defendants allocated to
         those investors material portions of the restricted number of
         shares issued in connection with the IPO; and

    (ii) the underwriter defendants had entered into agreements with
         customers whereby the underwriter defendants agreed to
         allocate 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 further details, contact Steven G. Schulman or Samuel H. Rudman by
Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: 800.320.5081 or visit the firm's Website: http://www.milberg.com


SMTC CORPORATION: Denies Allegations in Securities Suit in S.D. NY
------------------------------------------------------------------
SMTC Corporation labeled "without merit" the securities class action
filed in the US District Court for the Southern District of New York by
Schiffrin and Barroway LLP relating to its initial public offering.  
The suit names as defendants the Company and:

     (1) Paul Walker, Chief Executive Officer, and

     (2) the CIBC World Markets, the brokerage arm of the Canadian
         Imperial Bank of Commerce

The electronic components maker was charged with violations of Sections
11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder.  The suit alleges the prospectus the Company filed in
connection with its initial public offering last July failed to
disclose that:

     (i) the underwriters received "excessive and undisclosed
         commissions" from certain investors in exchange for "material
         portions of the restricted number of shares" issued in
         connection with the IPO; and

    (ii) the underwriters allocated shares to customers on the
         condition that the clients would purchase more shares
         following the IPO at predetermined prices.

Six investment dealers, including CIBC World Markets, were named as
defendants in the lawsuit. The allegations are part of a complaint and
have yet to be proven in court.

The Company further added that Schiffrin & Barroway are handling a
number of lawsuits challenging practices by Wall Street investment
dealers in connection with IPOs. The Company also stated that it would
vigorously oppose the suit.


SONICWALL INC.: Milberg Weiss Initiates Securities Suit in S.D. NY
------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP commenced a securities class
action on behalf of purchasers of the securities of SonicWALL Inc.
(NASDAQ:SNWL) between November 10, 1999 and December 6, 2000,
inclusive. The suit is pending in the United States District Court,
Southern District of New York against the Company and:

     (1) Sreekanth Ravi, CEO, President and director,

     (2) Sudhakar Ravi, Vice President of Engineering, director,

     (3) Michael J. Sheridan, CFO and Secretary,

     (4) Bear, Stearns & Co. Inc.,

     (5) FleetBoston Robertson Stephens Inc. and

     (6) Credit Suisse First Boston Corporation

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. In November 1999, the
Company commenced an initial public offering of 4,000,000 of its shares
of common stock, at an offering price of $14 per share.  In March 2000,
the Company commenced a secondary offering for the sale of 3,500,000
shares of common stock for $100 per share. In connection with the IPO
and secondary offering, the Company filed registration statements,
which incorporated prospectuses with the SEC.

The complaint further alleges that the Prospectuses were materially
false and misleading because they failed to disclose, among other
things, that:

     (i) the underwriter defendants had solicited and received
         excessive and undisclosed commissions from certain investors
         in exchange for which the underwriter defendants allocated to
         those investors material portions of the restricted number of
         Company shares issued in connection with the IPO;

    (ii) the underwriter defendants had entered into agreements with
         customers whereby the underwriter defendants agreed to
         allocate 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; and

   (iii) the secondary prospectus failed to disclose the aforementioned
         practices and the resulting inflation of the price of common
         stock which continued throughout the class period, including
         the time of the secondary offering.

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: http://www.milberg.com


VALICERT INC.: Milberg Weiss Initiates Securities Suit in S.D. New York
-----------------------------------------------------------------------
Milberg Weiss Bershad Hynes and Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of ValiCert Inc.
(NASDAQ:VLCT) between July 27, 2000 and December 6, 2000, inclusive in
the United States District Court, Southern District of New York,
against the Company and:

     (1) Joseph Amram, CEO and President,

     (2) Timothy Conley, CFO, and

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

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. In July 2000, the
Company commenced an initial public offering of 4,000,000 of its shares
of common stock, at an offering price of $10 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:

     (i) Merrill Lynch had solicited and received excessive and
         undisclosed commissions from certain investors in exchange for
         which Merrill Lynch allocated to those investors material
         portions of the restricted number of shares issued in
         connection with the IPO; and

    (ii) Merrill Lynch had entered into agreements with customers
         whereby Merrill Lynch agreed to allocate 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 details, contact Steven G. Schulman or Samuel H. Rudman by
Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: 800.320.5081 or visit the firm's Website: http://www.milberg.com


VIDAMED INC.: Faces Suits For Breach of Fiduciary Duty In DE Court
------------------------------------------------------------------
Vidamed, Inc. (NASDAQ:VIDA) faces three securities class actions in the
Court of Chancery for the State of Delaware challenging the Company's
recently announced merger with a subsidiary of Medtronic, Inc.  The
suits name as defendants the Company, its directors and Medtronic, Inc.
Under the merger, the Company's stockholders will receive $7.91 per
share in cash, which represents a 40% premium to the closing sale price
of the Company's stock on the day prior to the public announcement of
the transaction.

The suits allege breach of fiduciary duty by the Company's directors in
connection with the merger and seek, among other things, injunctive
relief and unspecified damages and fees of attorneys and experts.
The Company said in a press statement that it believes the terms of the
proposed merger are fair, from a financial point of view, to the
Company and its stockholders and believes that the complaints are
without merit. It also stated its plans to vigorously defend its
position.


XO COMMUNICATIONS: Rabin Peckel Commences Securities Suit in E.D. VA
--------------------------------------------------------------------
Rabin and Peckel LLP initiated a securities class action in the United
States District Court for the Eastern District of Virginia on behalf of
all persons or entities who purchased XO Communications, Inc. common
stock (NASDAQ:XOXO) between April 4, 2001 and November 29, 2001,
inclusive against the Company and:

     (1) Daniel F. Akerson,

     (2) Nathaniel A. Davis, and

     (3) Craig O. McGraw

The suit alleges that defendants violated Section 10(b) and 20(a) of
the Securities and Exchange Act of 1934 by issuing a series of
materially false and misleading statements about the Company's
liquidity and cash flow problems. In particular, it is alleged that the
Company's ability to survive its cash flow problems into the middle of
2003 without the need for additional financing was misrepresented.
The suit also alleges that as a result of these false and misleading
statements the price of the Company's common stock was artificially
inflated throughout the class period causing plaintiff and the other
members of the class to suffer damages.

For more information, contact Eric Belfi or Maurice Pesso by Mail: 275
Madison Avenue, New York, NY 10016 by Phone: 800.497.8076 or
212.682.1818 by Fax: 212.682.1892 or by E-mail: email@rabinlaw.com.


XO COMMUNICATIONS: Hoffman Edelson Lodges Securities Suit in E.D. VA
--------------------------------------------------------------------
Hoffman & Edelson LLC initiated a securities class action in the United
States District Court for the Eastern District of Virginia, on behalf
of purchasers of XO Communications, Inc. Nasdaq:XOXO securities between
April 4, 2001 and November 29, 2001, inclusive against the Company and:

     (1) Daniel F. Akerson, Chief Executive Officer and Chairman of the
         Board of Directors,

     (2) Nathaniel A. Davies, President, Chief Operating Officer and
         Director,

     (3) Craig O. McCaw, the Company's founder, controlling
         shareholder, and Director

The suit charges the defendants with violations of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by,
among other things, issuing false and misleading statements regarding
the Company's financial condition as well as its present and future
business operations.

In particular, the suit alleges that defendants mislead the investing
public concerning the Company's ability to finance its business
operations until it would be cash-flow positive. Throughout the class
period, defendants stated that the Company would be able to survive at
least into the middle of 2003 without the need for further financing.
These statements were false, and on November 29, 2001, defendants
announced a transaction where the shareholders' equity was destroyed in
exchange for a cash infusion of $800 million. Trading in the Company's
stock was immediately halted.

For further details, contact Marc H. Edelson by Mail: 45 W. Court
Street, Doylestown, PA 18901 by Phone: 877.537.6532 (toll free) by Fax
215.230.8735 or by E-mail: medelson@hofedlaw.com.


XO COMMUNICATIONS: Cohen Milstein Initiates Securities Suit in E.D. VA
----------------------------------------------------------------------
Cohen Milstein Hausfeld & Toll PLLC commenced a securities class action
in the United States District Court for the Eastern District of
Virginia, on behalf of purchasers of the common stock of XO
Communications, Inc. (NASDAQ:XOXO) during the period of April 4, 2001
through and including November 29, 2001.

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10-b(5) by issuing false
and misleading statements regarding the Company's financial condition
as well as its present and future business prospects. In particular,
the suit alleges that defendants misled the investing public concerning
the ability of the Company to survive until it would be cash flow
positive. Throughout the class period, defendants stated that the
Company would be able to survive at least into the middle of 2003
without the need for further financing. However, on November 29, 2001,
defendants announced a transaction where the shareholders' equity was
destroyed in exchange for an investment of $800 million. Trading in the
Company's stock was quickly halted.

For more details, contact Steven J. Toll or Mary Ann Fink by Mail: 1100
New York Avenue, NW West Tower, Suite 500 Washington, DC 20005 by
Phone: 888.240.0775 or 202.408.4600 or by E-mail: stoll@cmht.com or
mfink@cmht.com


YAHOO FRANCE: Win in US Nazi Suit Appealed by French Advocacy Groups
--------------------------------------------------------------------
Two French humanitarian groups are appealing a US federal court's
recent decision in favor of Yahoo regarding the sale of Nazi
memorabilia on the portal's auction pages, Newsbytes News Network
reported.  The two French groups, Ligue Internationale Contre le
Racisme et l'Anti-Semitisme (The International League Against Racism
and Anti-Semitism) and the Union of Jewish Students, won an initial
lawsuit, brought last year against Yahoo France, prohibiting the Web
portal operator from allowing the sale of Nazi memorabilia on its
pages.

That lawsuit, which went through the French courts, was followed by a
counter-suit, filed in the US by Yahoo against the two groups.  That
litigation, in turn, on November 9, secured a judge's ruling that the
French judge's decision was unenforceable in the United States.

The two groups' appeal could take up to a year to reach the courts,
said Ronald S. Katz, the American attorney for the organizations.  
Whichever way the appeal to the 9th US Circuit Court goes, Mr. Katz
said he thinks the case will go forward to the US Supreme Court for a
final decision, even though only one percent of appeals court cases
reach the high court. Mr. Katz said, however, that the lack of an
international treaty on Internet law means the end result of all the
litigation is likely to be sterile.  "You have a French decision
enforceable in France, and a US decision enforceable in the US, but you
can't enforce a decision in a case like this between the two
countries."  Such a treaty should exist, he added.

In the French lawsuit, the Company was ordered to remove the items for
sale on the auction pages concerned or face daily fines of around
15,000 euros ($13,500).  The Company countered this, saying this was
technically impossible to accomplish.  The Company has yet to pay the
fines levied by the French court.

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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.

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