CAR_Public/020109.mbx                C L A S S   A C T I O N   R E P O R T E R

               Wednesday, January 9, 2002, Vol. 4, No. 6

                             Headlines


ATOFINA CHEMICALS: Detroit Residents File Suit Due To Tanker Explosion
EMPLOYEE DISCRIMINATION: SC Paves Way For Historic $508M Settlement
MENORAH GARDENS: Cemetery Officials To Make Full Accounting of Graves
MINING COMPANIES: Faces Suit For Health Problems Caused By Operations
PRINCETON BONDS: Company To Receive Y642M as Settlement in Fraud Suit
TOBACCO LITIGATION: WV Judge Refuses New Trial For Medical Tests Suit

                          Securities Fraud

ACLN LTD.: Wolf Haldenstein Initiates Securities Suit in S.D. New York
ACLN LTD.: Pomerantz Haudek Commences Securities Suit in S.D. New York
ACLN LTD.: Cauley Geller Initiates Securities Suit in S.D. New York
ACLN LTD.: Milberg Weiss Commences Securities Suit in S.D. New York
FATBRAIN.COM: Lead Plaintiff Deadline in Suit Set For January 15, 2002

FLASHNET COMMUNICATIONS: Lead Plaintiff Deadline Set January 28,2002
GLOBIX CORPORATION: Cohen Milstein Commences Securities Suit in S.D. NY
HOMESTORE.COM: Wechsler Harwood Commences Securities Suit in C.D. CA
HOMESTORE.COM: Schiffrin Barroway Initiates Securities Suit in C.D. CA
HOMESTORE.COM: Cauley Geller Lodges Securities Suit in C.D. California

IMCLONE SYSTEMS: Wolf Popper Commences Securities Suit in S.D. New York
IMCLONE SYSTEMS: Stull Stull Commences Securities Suit in S.D. New York
LOGON AMERICA: Wechsler Harwood Lodges Securities Suit in Rhode Island
LOGON AMERICA: Schatz Nobel Commences Securities Suit in Rhode Island
RENT-A-CENTER INC.: Schiffrin Barroway Files Securities Suit in E.D. TX

RENT-A-CENTER INC.: Cauley Geller Commences Securities Suit in E.D. TX
STARMEDIA NETWORK: Rabin Peckel Commences Securities Suit in S.D. NY
SUPREMA SPECIALTIES: SecuritiesSleuth Probes For Securities Fraud
VAN WAGONER: Schiffrin Barroway Commences Securities Suit in E.D. WI
VAN WAGONER: Kirby McInerney Lodges Securities Suit in E.D. Wisconsin

                             *********

ATOFINA CHEMICALS: Detroit Residents File Suit Due To Tanker Explosion
----------------------------------------------------------------------
27 residents from Farmington Hills, Detroit initiated a class action in
Detroit federal court against Atofina Chemicals, Inc. in relation to a
July 14 tanker-car explosion that caused the death of three workers,
according to a Detroit News report.

According to a National Transportation Safety Board investigation, a
one-inch pipe valve separated, causing 147,750 pounds of methyl
mercaptan to explode.  The explosion sent a 50-foot-long fireball and
released 26,000 pounds of chlorine into the air.

About 2,500 people were evacuated from their homes, including 2,000 in
Grosse Ile, and the Detroit River was closed to area boat traffic for
12 hours.  Killed in the accident were Edwin Wrobleski, 47, of
Riverview, a shift superintendent with 27 years at the plant, Kenneth
Cox, 56, of Rockwood, an operator with 13 years at the Company and
Terry Stein, 41, of Trenton, an operator with 18 years at the Company.

Detroit News states that some residents reported smelling chlorine in
the days before the incident, but the Company denied that it was
leaking chlorine and has maintained that storing the chlorine near the
methyl mercaptan had nothing to do with the accident.

According to plaintiffs attorney Michael Alan Schwartz, "Atofina
(Chemicals Inc.) stored chemicals on its premises which are highly
toxic in nature and could cause severe pulmonary and other illnesses to
persons who were located in close proximity."

The Company has paid more than $100,000 to cover the cost of fighting
the fire and thousands of dollars to settle claims from local residents
or out-of-pocket expenses for those who were evacuated out of their
homes, according to Kevin Van Wart, attorney for the Company.

The suit, the second against Atofina relating to the explosion, has
been assigned to US District Judge Arthur Tarnow.  Another suit is
being heard by US District Judge Victoria Roberts, who will decide
whether to give it class action status by early spring.


EMPLOYEE DISCRIMINATION: SC Paves Way For Historic $508M Settlement
-------------------------------------------------------------------
The United Supreme Court will deny a challenge to the historic $508
million settlement of a class action alleging sex discrimination
against the United States government, clearing the way toward
distribution of the record award to 1,100 women.

The suit was filed on behalf of 1,100 women who were denied jobs on the
basis of sex at the United States Information Agency and the Voice of
America.  After the women proved rampant sex discrimination at
individual trials of 46 class members, who were awarded nearly $23
million in back pay and interest, the government agreed to settle the
case with the remainder of the class for an additional $508 million
plus post-judgment interest.

The settlement was reached in March 2000, and is by far the largest
employment discrimination award in the history of the Civil Rights Act
of 1934.  The 1,100 class members, who will divide the proceeds
equally, will each receive awards of more than half a million dollars.
Attorneys' fees will also be paid over and above the settlement amount
by the government.

The settlement faced a challenge from three women who had not filed
timely claims in the case after notice of the class action was made by
the government in 1988 and 1989. The objectors sought review by the
Supreme Court claiming the notice procedures were defective, a claim
which the court denied.  Unlike the 1,100 women who filed claims in the
case over a decade ago, the three objectors will not receive a share of
the award.

Bruce Fredrickson, of Webster, Fredrickson & Brackshaw, filed the case
in 1997 and settlement of the case was reached nearly twenty-three
years later. He said, "This is a huge victory for the class because it
clears the way for the long overdue payment to our class members.The
settlement was reached after decades of hard work, so the Supreme
Court's disposal of this last challenge is much welcomed news."

For more information, contact Bruce A. Fredrickson or Susan L.
Brackshaw by Phone: 1-202-659-8510.


MENORAH GARDENS: Cemetery Officials To Make Full Accounting of Graves
---------------------------------------------------------------------
The Orlando Sentinel recently reported that cemetery officials of the
Menorah Gardens cemeteries in South Florida, where relatives have filed
a class-action lawsuit claiming desecration of the graves and dumping
of the bodies, have promised state officials they will make a full
accounting of the resting place of everyone buried there.  The
relatives of the people buried in the two Menorah Gardens cemeteries in
suburban Palm Beach Gardens and western Broward County are alleging
that the company misplaced bodies, oversold plots and dumped remains in
the woods in order to recycle graves.

Officials from the parent company, Service Corporation International
(SCI), met recently with Comptroller Bob Milligan and Attorney General
Bob Butterworth and promised to re-map the cemeteries by the use of
ground-penetrating radar to search for "lost" burial vaults.  "This is
about doing what's right for the families and getting the right thing
done now," said Don Mathis, Company spokesman.  Mr. Milligan and Mr.
Butterworth are leading state investigations into practices at the two
cemeteries by SCI, the nation's largest cemetery company.

Neal Hirschfeld, the Fort Lauderdale attorney leading the civil suit
against the company, said that just finding vaults will not satisfy his
clients.  He said that he will demand DNA testing of remains in any
vaults that are found to confirm they are the persons they are supposed
to be.  "The fact of the matter is many people were moved," Mr.
Hirschfeld said.  "Telling somebody there is a vault under the ground
under the name of Cohen doesn't mean there's a Cohen in the vault."


MINING COMPANIES: Faces Suit For Health Problems Caused By Operations
---------------------------------------------------------------------
A group of Northern Idaho residents filed a class action suit against
several mining companies in Idaho State Court in Kootenai County,
demanding that the Companies finance medical monitoring to identify and
treat health problems allegedly caused by the companies' mining and
smelting activities, which poisoned the region's water and soil with
lead and other heavy metals.

The suit was filed on behalf of residents within a 21-square mile
Superfund site surrounding the Bunker Hill mining complex, known as the
Box, and those living within the greater Coeur d'Alene river basin,
which includes an estimated half-million people residing in Post Falls,
Idaho and Spokane, Wash. The class area includes all those living in
the Coeur d'Alene river basin. Some of the effected communities in
Idaho include:

     (1) Coeur d'Alene,

     (2) Harrison,

     (3) Kellogg,

     (4) Kingston,

     (5) Mullan,

     (6) Osburn,

     (7) Page,

     (8) Pinehurst,

     (9) Post Falls,

    (10) Silverton,

    (11) Smelterville,

    (12) Wadner,

    (13) Wallace, and

    (14) Spokane, Washington

The suit also names as defendants:

     (i) Asarco Incorporated,

    (ii) Government Gulch Mining Company Inc.,

   (iii) Hecla Mining Company Inc.,

    (iv) Sunshine Mining Company Inc.,

     (v) Sunshine Precious Metals Inc., and

    (vi) Union Pacific Railroad

The suit charges the defendants with with trespass, nuisance, and
strict liability. The Box, which includes Pinehurst, Kellogg,
Smelterville and Wardner, has undergone some cleanup and remediation of
residential properties, but residents still suffer health problems from
the heavy metals that remain in the ground and water supply, the suit
alleges.

According to the complaint, until the late 1960s, mine tailings were
simply released in the south fork of the Coeur d'Alene River. Mining
waste also was used in northern Idaho communities to build the I-90
freeway, backfill private home and public lots, build driveways, dust
gardens, and sand roads. Later, tailings were captured in impoundments,
which, according to the complaint, were prone to leakage.

The suit also cites the Bunker Hill smelter, which began operation in
1917, as a key source of contamination. According to the suit, by 1931
the smelter was belching out more than 300 pounds of lead through its
smokestack a day.  In 1973, the smelter's air-pollution control system
was damaged in a fire. According to the complaint, a spike in lead
prices the following March induced the smelter owners to continue
production, pouring more than 192,000 pounds of lead particulate, an
amount equal to 10 years of lead pollution, in one month.  The Bunker
Hill complex closed in 1981, but limited mining and milling continued
from 1988 to 1991.

Filed by eight current and former Coeur d'Alene river basin residents,
the suit also seeks compensation for residential property owners whose
property values have declined as a result of the contamination.

Plaintiffs Arden and Rita Bornitz live outside St. Maries, Idaho, about
18 miles from the Bunker Hill Superfund cleanup site. Their three
children all have elevated lead levels.

"Like all parents, we want the best for our children," Arden Bornitz
said. "Our kids are suffering profound health damages that we believe
are tied directly to lead poisoning. We know what we are facing and are
doing everything we can to help our children, but we believe there are
hundreds of families that have no idea that their kids are in danger of
these health risks."

"For nearly one hundred years, the mining companies created a legacy of
illness for our children," he said. "As parents, we must hold them
accountable today."

The Bornitz's youngest son, Kyler Bornitz, had blood levels showing a
lead content of 27 micrograms per deciliter by the time he was 18
months old. Government studies have shown that children with blood
levels of 10 micrograms per deciliter exhibit reduced short-term memory
and diminished IQ.

According to the complaint, some parents have suffered significant
economic losses in efforts to safeguard their children.

Tina and Harve Paddock, former Wallace, Idaho residents, found lead
levels topping 2,600 parts per million in their home, even after the
EPA removed more than a foot of topsoil from their yard. Rather than
prolong the risk to their children, the complaint states, the family
left the house and moved to Oregon. Due to the contamination, they have
been unable to sell their Wallace home.

Steve Berman, attorney for the plaintiffs, said that future Superfund
site remediation of the planned cleanup in the greater Coeur d'Alene
river basin is important, but more needs to be done for residents
dealing with health issues today.

"While the Environmental Protection Agency looks at the long-range
cleanup, we need to find ways to help stop the damage of the lead
contamination now," Mr. Berman said. "We must help parents identify
kids in danger of reduced intelligence, delayed development and a
myriad of other health problems caused by the contamination."

Mr. Berman stressed that medical monitoring is absolutely essential to
determine the true impact of the mining contamination. "The blatant
disregard for human health extends far beyond dollars-per-acre.These
children must be protected from mining waste - that's the real bottom
line."

According to the complaint, the mining companies funded studies in the
past that showed children were not damaged by heavy doses of lead
contamination. More recently, controversy has erupted around
methodology for current testing since different test protocols exist
for those living within the Box.

In published reports, EPA officials questioned the results of state-
conducted blood-lead level tests in the region. In those reports, EPA
environmental engineer Mary Jane Nearman said that while hundreds of
children were tested, participation was voluntary so the results may
not truly reflect the overall situation.

"There is a long and sordid history when it comes to the validity of
data, including the health tests of children in this region," Mr.
Berman added. "We believe the only way to ensure accurate health data
is through a comprehensive, independent medical monitoring program."

The suit asks for independent medical monitoring for all minors living
in the class area, as well as adults who have lived in the class area
for more than a year, and those who have owned residential property
within the class area.

For more information, contact Steve Berman by Phone: 206-623-7292 by E-
mail: steve@hagens-berman.com or visit the firm's Website:
http://www.hagens-berman.comor Mark Firmani by Phone: 206-443-9357 or
by E-mail: mark@firmani.com


PRINCETON BONDS: Company To Receive Y642M as Settlement in Fraud Suit
---------------------------------------------------------------------
Communications and electronic equipment dealer Tsuzuki Denki Co.
(TSE:8157) expects to receive a total of 642 million yen (US$4.89
million) to settle a 1999 class action after US authorities
investigated Cresvale International, who sold Princeton Bonds from
Princeton Economics International Ltd. to Japanese firms.

Some of the bonds guaranteed principal and interest payments, while
others promised a high return of several tens of percentage points, the
newspaper said.  The authorities investigated Cresvale for fraud, and
arrested Martin Armstrong, chairman of Princeton Economics, for fraud.

The Company is prepared to receive 568 million yen in settlement
payments from U.K. bank HSBC Holdings Plc and Republic New York
Securities for losses incurred from the default of corporate bonds
issued in the early 1990s. It is also set to receive a 73 million-yen
payout from the residual assets of the Princeton group, which is now in
liquidation proceedings.

Tsuzuki Denki had taken an extraordinary charge of 800 million yen in
fiscal 1999 to write off its Princeton bond holdings. However, the firm
now expects to book in the current fiscal year ending March 31 an
extraordinary gain of roughly 590 million yen on the recoveries, after
legal fees and other expenses, according to an AsiaPulse report.


TOBACCO LITIGATION: WV Judge Refuses New Trial For Medical Tests Suit
---------------------------------------------------------------------
Ohio County Circuit Judge Arthur Recht refused to grant a new trial to
West Virginia smokers who filed a class action against four of the
nation's biggest tobacco companies.  He asserted did not see "any
basis" to set aside the November jury decision saying that the
companies were not obligated to pay for annual health screenings for
the plaintiffs.

The suits were commenced last year on behalf of 250,000 West Virginians
who smoke at least one pack a day yet show no symptoms of tobacco
related disease against tobacco giants - RJ Reynolds, Philip Morris
Companies, Brown and Williamson and Lorillard Tobacco Company. The
complaint sought to force these companies to pay for a medical
monitoring program that may earlier detect smoking related diseases
such as lung cancer and emphysema.

In November 2001, after two days of deliberations, a jury of three men
and three women denied the plaintiff's claim that cigarettes should be
viewed as defective products and found that tobacco firms were not
obliged to pay for medical monitoring.

The plaintiffs then filed a motion seeking for a new trial. David
Rodes, member of the plaintiffs' legal team, argued the motions Friday
and said the jury was not instructed properly before deliberations and
erred when it decided cigarettes are not a defective product.

Industry analysts say the decision was not a surprise, and that they
did not expect the plaintiffs to win the chance for a new trial by
heading to state supreme court.  Tobacco analyst Rob Campagnino says
"The judge has to believe that somehow the findings of the jury were
not supported by the facts presented, and I just don't think that's the
case."

Credit Suisse First Boston analyst Bonnie Herzog told Reuters "Even if
there's a new trial, it's likely that the industry would also prevail
.It's obviously good news for the industry, probably not completely
unexpected."

Mr. Rodes says the plaintiffs would clarify their issues and present
them to the West Virginia Supreme Court of Appeals, according to a
Reuters report.


                           Securities Fraud


ACLN LTD.: Wolf Haldenstein Initiates Securities Suit in S.D. New York
----------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP commenced a securities class
action in the United States District Court for the Southern District of
New York on behalf of purchasers of ACLN, Ltd. (NYSE: ASW) securities
between June 29, 2000 and December 20, 2001, inclusive, against
defendants the Company and:

     (1) Joseph Bisschops, Chairman and Managing Director,

     (2) Aldo Labiad, President, Chief Executive Officer, Chief
         Operating Officer and Managing Director, and

     (3) Alex De Ridder, Chief Financial Officer

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder, by issuing materially false and misleading statements to
the market. The suit alleges that beginning on June 29, 2000, and
continuing throughout the class period, defendants issued multiple
press releases and filed quarterly and annual reports with the SEC
which highlighted the Company's growth and strong financial
performance.

As alleged in the suit, these statements were materially false and
misleading because they failed to describe the true state of financial
affairs at the Company. Specifically, defendants:

     (i) failed to disclose certain self-dealing transactions between
         defendant Bisschops and certain private entities which he
         controlled;

    (ii) overstated the Company's assets by listing a shipping vessel,
         the Sea Atef, as an asset of the Company when, in fact, the
         Company did not own the Sea Atef;

   (iii) understated the Company's selling, general and administrative
         expenses, causing the Company's net income to be overstated;
         and

    (iv) violated generally accepted accounting principles (GAAP) and
         the Company's own stated policy with regard to recognition of
         revenue by reporting revenue for the cars that it sold as soon
         as the ship carrying the cars left the port and not when the
         shipment was completed.

The truth about these statements finally came to light on December 20,
2001, in an article published by Herb Greenberg on The Street.com. In
response to the questions raised in Greenberg's article, Company shares
plunged 64%, falling $16.71 to close at $9.40 per share.

For more information, contact Fred Taylor Isquith, Gregory M. Nespole,
Michael Miske, George Peters or Derek Behnke by Mail: 270 Madison
Avenue, New York, New York 10016 by Phone: 800-575-0735 by E-mail:
classmember@whafh.com or visit the firm's Website:
http://www.whafh.com. E-mail should refer to ACLN.


ACLN LTD.: Pomerantz Haudek Commences Securities Suit in S.D. New York
----------------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a securities
class action against ACLN, Ltd. (NYSE: ASW) on behalf of all those
persons or entities who purchased the Company's common stock during the
period between May 30, 2000 through December 20, 2001. The lawsuit was
filed in the United States District Court for the Southern District of
New York. Also named as defendants are:

     (1) Joseph Bisschops, the Company's Chairman & Managing Director,

     (2) Aldo Labiad, the Company's President & Chief Executive
         Officer, and

     (3) Alex De Ridder, the Company's Chief Financial Officer,

The suit alleges that the Company, an independent logistics provider
company and wholesale automobile dealer based in Belgium, and three of
the Company's senior officials, violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 by issuing materially false and
misleading statements to the market which mislead investors and
concealed the Company's true financial condition.

In particular, it is alleged that during the class period, defendants
issued several press releases and filed quarterly and annual reports
with the SEC which highlighted the Company's growth and strong
financial performance. These statements were materially false and
misleading because they failed to describe the true state of financial
affairs at the Company.

Specifically, defendants made a series of false and misleading
statements concerning:

     (i) the disposition of Company stock by defendant Bisschops;

    (ii) the Company's ownership of a $6 million shipping vessel named
         the Sea Atef;

   (iii) understatement of the Company's selling, general and
         administrative expenses, causing the Company's net income to
         be overstated;

    (iv) the number of new cars sold in the first quarter of 2000; and

     (v) payments to a company controlled by defendant Joseph Bisschops
         for "administrative expenses."

The truth about the Company was finally disclosed on December 20, 2001
with the publication of an article on TheStreet.com. In response to the
questions raised in the article, Company shares plunged 64%, falling
from $26.11 to close at $9.40 per share.

For further details, contact Andrew G. Tolan by Phone: 888-476-6529 by
E-mail: agtolan@pomlaw.com or visit the firm's Website:
http://www.pomerantzlaw.com


ACLN LTD.: Cauley Geller Initiates Securities Suit in S.D. New York
-------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP filed a securities class action in
the United States District Court for the Southern District of New York
on behalf of purchasers of ACLN, Ltd. (NYSE:ASW) publicly traded
securities during the period between June 29, 2000 and December 20,
2001, inclusive against the Company and:

     (1) Joseph Bisschops,

     (2) Aldo Labiad, and

     (3) Alex De Ridder

The suit alleges the defendants issued a series of material
misrepresentations to the market during the class period, thereby
artificially inflating the price of ACLN securities. Beginning on June
29, 2000, and continuing throughout the class period, defendants issued
multiple press releases and filed quarterly and annual reports with the
SEC, which highlighted the Company's growth and strong financial
performance. As alleged in the Complaint, these statements were
materially false and misleading because they failed to described the
true state of financial affairs at the Company.

Specifically, the complaint charges that defendants:

     (i) failed to disclose certain self-dealing transactions between
         defendants Bisschops and certain private entities which he
         controlled;

    (ii) overstated the Company's assets by listing a shipping vessel,
         the Sea Atef, as an asset of the Company when, in fact, the
         Company did not own the Sea Atef;

   (iii) understated the Company's selling, general and administrative
         expenses, causing the Company's net income to be overstated;
         and

    (iv) violated generally accepted accounting principles and the
         Company's own stated policy with regard to recognition of
         revenue by reporting revenue for the cars that it sold as soon
         as the ship carrying the cars left the port and not when the
         shipment was completed.

The truth about these statements finally came to light on December 20,
2001, in an article published by Herb Greenberg on TheStreet.com. In
response to the questions raised in Greenberg's article, the Company's
shares plunged 64%, falling $16.71 to close at $9.40 per share.

For more information, contact Jackie Addison, Sue Null or Shelly
Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone:
1-888-551-9944 by E-mail: info@classlawyer.com or visit the firm's
Website: http://www.classlawyer.com


ACLN LTD.: Milberg Weiss Commences Securities Suit in S.D. New York
-------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP lodged a securities class
action on behalf of purchasers of the securities of ACLN, Ltd. (NYSE:
ASW) between June 29, 2000 and December 20, 2001, inclusive. The suit
is pending in the United States District Court, Southern District of
New York against the Company and:

     (1) Joseph Bisschops,

     (2) Aldo Labiad and

     (3) Alex De Ridder

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder, by issuing materially false and misleading statements to
the market. Beginning on June 29, 2000, and continuing throughout the
class period, defendants issued multiple press releases and filed
quarterly and annual reports with the SEC which highlighted the
Company's growth and strong financial performance.

As alleged in the suit, these statements were materially false and
misleading because they failed to describe the true state of financial
affairs at the Company. Specifically, defendants:

     (i) failed to disclose certain self-dealing transactions between
         defendant Bisschops and certain private entities which he
         controlled;

    (ii) overstated the Company's assets by listing a shipping vessel,
         the Sea Atef, as an asset of the Company when, in fact, the
         Company did not own the Sea Atef;

   (iii) understated the Company's selling, general and administrative
         expenses, causing the Company's net income to be overstated;
         and

    (iv) violated generally accepted accounting principles and the
         Company's own stated policy with regard to recognition of
         revenue by reporting revenue for the cars that it sold as soon
         as the ship carrying the cars left the port and not when the
         shipment was completed.

The truth about these statements finally came to light on December 20,
2001, in an article published by Herb Greenberg on The Street.com. In
response to the questions raised in Greenberg's article, Company shares
plunged 64%, falling $16.71 to close at $9.40 per share.

For more information, contact Steven G. Schulman or Samuel H. Rudman by
Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by
Phone: 800-320-5081 by Email: ACLNcase@milbergNY.com or visit the
firm's Website: http://www.milberg.com


FATBRAIN.COM: Lead Plaintiff Deadline in Suit Set For January 15, 2002
----------------------------------------------------------------------
Lovell & Stewart, LLP announces that the deadline for participation as
lead plaintiff in the securities class action against Fatbrain.Com
(NASDAQ: FATB) pending in the United States District Court for the
Southern District of New York is set for January 15,2002. The class
period is November 19, 1998 through November 16, 2000, inclusive.

The lawsuit asserts claims under Section 11, 12 and 15 of the
Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder.

The action, pending in the US District Court for the Southern District
of New York, alleges that the Company (which is not named as a
defendant) and certain of its officers and directors at the time of its
IPO violated the federal securities laws.

The defendants allegedly issued and sold Company stock pursuant to the
initial public offering without disclosing to investors that several of
the underwriters of the IPO had solicited and received excessive and
undisclosed commissions from certain investors.

For more information, contact Christopher Lovell, Victor Stewart or Ian
T. Stoll by Mail: 500 Fifth Avenue, New York, New York 10110 by Phone:
212-608-1900 or visit the firm's Website: http://www.lovellstewart.com


FLASHNET COMMUNICATIONS: Lead Plaintiff Deadline Set January 28,2002
--------------------------------------------------------------------
Lovell & Stewart, LLP announces that the deadline for participation as
lead plaintiff in the class action against Flashnet Communications,
Inc. (Nasdaq: FLAS) pending in the United States District Court for the
Southern District of New York is set for January 28, 2002. The class
period is March 16, 1999 through May 31, 2000, inclusive.

The suit asserts claims under Section 11, 12 and 15 of the Securities
Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934 and Rule 10b-5 promulgated by the SEC thereunder and is pending
in the U.S. District Court for the Southern District of New York
against the Company, certain of its officers and directors and the
following underwriters:

     (1) FleetBoston Robertson Stephens, Inc.,

     (2) UBS PaineWebber, Inc., and

     (3) First Union Securities, Inc.

The suit alleges that the Company and certain of its officers and
directors at the time of its IPO violated the federal securities laws
by issuing and selling Company common stock pursuant to the initial
public offering without disclosing to investors that several of the
underwriters of the IPO had solicited and received excessive and
undisclosed commissions from certain investors.

For more information, contact Christopher Lovell, Victor E. Stewart or
Ian T. Stoll by Mail: 500 Fifth Avenue, New York, New York 10110 by
Phone: 212-608-1900 or visit the firm's Website:
http://www.lovellstewart.com


GLOBIX CORPORATION: Cohen Milstein Commences Securities Suit in S.D. NY
-----------------------------------------------------------------------
Cohen Milstein Hausfeld & Toll PLLC initiated a class action suit in
the United States District Court for the Southern District of New York,
on behalf of those persons who purchased Globix Corporation
(Nasdaq:GBIX) common stock from November 16, 2000 through and including
December 27, 2001, against the Company and:

     (1) Marc Bell,

     (2) Peter Herzig and

     (3) Brian Reach

The suit charges that the defendants violated federal and state
securities laws by, among other things, issuing false misleading
statements regarding the Company's financial condition as well as its
present and future business prospects.

As alleged in the complaint, on November 16, 2000, in an effort to
stabilize the price of the Company's stock and to assuage investor
concerns over the Company continuing as going concern, defendants set
forth the Company's business plan which stated that it would be fully
funded to fiscal 2003 and thereafter cash flow positive. This sentiment
was repeated in the Company's annual report filed on Form 10-K with the
Securities Exchange Commission and numerous times thereafter in Company
press releases and conference calls.

Despite such assurances, on December 27, 2001, defendants shocked the
investing community by announcing that management had been secretly
negotiating with its bond holders and preferred stock holders to
effectuate a pre-packaged bankruptcy that would result in a near total
dilution of the existing common stockholders' interest in the Company.

For more information, contact Andrew N. Friedman 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 by E-mail: stoll@cmht.com
or mfink@cmht.com or visit the firm's Website: http://www.cmht.com


HOMESTORE.COM: Wechsler Harwood Commences Securities Suit in C.D. CA
--------------------------------------------------------------------
Wechsler Harwood Halebian & Feffer LLP initiated a securities class
action in the United States District Court for the Central District of
California on behalf of purchasers of Homestore.com, Inc. (Nasdaq:
HOMS) common stock during the period between July 20, 2000 and December
21, 2001.

The suit charges the Company and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. In May 2000,
the Company issued a release of its positive 1st Quarter 2000 results.
The complaint alleges that as part of their effort to boost the price
of Company stock, defendants misrepresented the Company's true
prospects in an effort to conceal its improper acts until they were
able to sell at least $16 million of their own stock.

In order to overstate revenues and assets in the 1st, 2nd, 3rd and 4th
Quarter 2000 and the 1st, 2nd and 3rd Quarters 2001, the Company
violated generally accepted accounting principles and SEC rules by
engaging in improper "roundtrip" transactions. These transactions had
the effect of dramatically overstating revenues and assets. This came
to an end (though unbeknownst to the public) in the Company's 3rd
Quarter 2001 as the Company's main roundtrip partner stopped doing
these transactions with the Company.

Following the release of the Company's 3Q 2001 results, the Company
also slashed its revenue projections for 2002 from $563 million to
$375-$425 million as a result of a material decline in its business
with its main "roundtrip" partner. On this news the Company's shares
plummeted by more than 50% the following trading day from $4.98 to
close at $2.28. Then, on December 21, 2001 (after the close of the
market), the Company partially admitted that its past accounting for
its prior results was inaccurate. On this news the Company's shares
were halted and have not traded since.

On January 2, 2002, defendants admitted that the Company's revenue for
2001 had been overstated by as much as $95 million. The defendants also
admitted that additional material restatements "may follow," including
a restatement of financial results for fiscal year 2000.

For further details, contact Patricia Guiteau by Mail: 488 Madison
Avenue 8th Floor New York, New York 10022 by Phone: 877-935-7400 (Toll
Free) by E-mail: pguiteau@whhf.com or visit the firm's Website:
http://www.whhf.com


HOMESTORE.COM: Schiffrin Barroway Initiates Securities Suit in C.D. CA
----------------------------------------------------------------------
Schiffrin & Barroway, LLP commenced a securities class action in the
United States District Court for the Central District of California on
behalf of all purchasers of the common stock of Homestore.com, Inc.
(Nasdaq: HOMS) from July 20, 2000 through December 21, 2001, inclusive.

The suit charges the Company and certain of its officers and directors
with issuing false and misleading statements concerning its business
and financial condition. In July 2000 (after the close of the market),
the Company issued a release of its positive 2Q 00 results, causing its
stock price to soar by more than $7 (or 25%) the following trading day.

The complaint alleges that as part of their effort to boost the price
of the Company's stock, defendants misrepresented its true prospects in
an effort to conceal its improper acts until they were able to sell at
least $16 million of their own stock.

In order to overstate revenues and assets in 2nd, 3rd, and 4th Quarter
2000 and 1st, 2nd, and 3rd Quarter 2001, the Company violated generally
accepted accounting principles and SEC rules by engaging in improper
"roundtrip transactions." These transactions had the effect of
dramatically overstating revenues and assets. This came to an end
(though unbeknownst to the public) in the Company's 3rd Quarter 2001 as
the Company's main roundtrip partner stopped doing these transactions
with the Company.

Following the release of the Company's 3rd Quarter 2001 results, the
Company also slashed its revenue projections for 2002 from $563 million
to $375-$425 million as a result of a material decline in its business
with its main "roundtrip" partner. On this news the Company's shares
dropped by more than 50% the following trading day. Then, on December
21, 2001 (after the close of the market), the Company partially
admitted that its past accounting for its prior results was inaccurate.
On this news the Company's shares were halted and have not traded
since.

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


HOMESTORE.COM: Cauley Geller Lodges Securities Suit in C.D. California
----------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP initiated a securities class action
in the United States District Court for the Central District of
California on behalf of purchasers of Homestore.com, Inc. (Nasdaq:
HOMS) common stock during the period between July 20, 2000 and December
21, 2001, inclusive.

The suit charges the Company and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. In July 2000
(after the close of the market), the Company issued a release of its
positive 2Q 00 results, causing its stock price to soar by more than $7
(or 25%) the following trading day.

The suit also alleges that as part of their effort to boost the price
of Company stock, defendants misrepresented the Company's true
prospects in an effort to conceal its improper acts until they were
able to sell at least $16 million of their own stock. In order to
overstate revenues and assets in 2nd, 3rd and 4th Quarter 2000 and 1st,
2nd and 3rd Quarter 2001, the Company violated generally accepted
accounting principals and SEC rules by engaging in improper "roundtrip"
transactions. These transactions had the effect of dramatically
overstating revenues and assets. This came to an end (though
unbeknownst to the public) in the Company's 3rd Quarter 2001 as the
Company's main "roundtrip" partner stopped doing these transactions
with the Company.

Following the release of the Company's 3rd Quarter 2001 results, the
Company also slashed its revenue projections for 2002 from $563 million
to $375-$425 million as a result of a material decline in its business
with its main "roundtrip" partner. On this news the Company's shares
dropped by more than 50% the following trading day. Then, on December
21, 2001 (after the close of the market), the Company partially
admitted that its past accounting for its prior results was inaccurate.
On this news the Company's shares were halted. Trading resumed on
Monday, January 7, 2002 at a price well below where the stock traded
during the Class Period.

For more information, contact Jackie Addison, Sue Null or Shelly
Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone:
1-888-551-9944 by E-mail: info@classlawyer.com


IMCLONE SYSTEMS: Wolf Popper Commences Securities Suit in S.D. New York
-----------------------------------------------------------------------
Wolf Popper LLP initiated a class action in the United States District
Court for the Southern District of New York against ImClone Systems,
Inc. (NASDAQ: IMCL) for violations of the federal securities laws on
behalf of all persons who purchased the Company's common stock on the
open market during the period beginning on May 12, 2001 through January
4, 2002, inclusive.

The suit alleges that during the class period defendants made
materially false and misleading statements about:

     (1) the efficacy of Erbitux, ImClone's new "blockbuster" drug for
         the treatment of cancer; and

     (2) the progress of its application for the Food and Drug
         Administration's (FDA) approval of Erbitux.

Among other things, defendants misrepresented that its Phase II test
results for Erbitux were strongly confirmatory of its primary endpoint
(tumor regression). The foregoing representations were materially
misleading because, among other things, ImClone had failed to document
that patients in the Phase II test had failed to experience tumor
regression after chemotherapy (which was a requirement of the Phase II
protocol).  In reliance on the truth and accuracy of defendants' public
statements, Company shares traded as high as $75.45 per share during
the class period.

On December 28, 2001, the Company shocked the market by issuing a press
release that disclosed that the FDA had rejected its filing of a
Biologics License Application (BLA) for Erbitux. The first trading day
after the issuance of the press release, on December 31, 2001, Company
shares plummeted $11.15, or 20%, to $44.10. On January 4, 2002, The
Cancer Letter revealed the true contents of the FDA's December 28, 2001
letter to the Company, including the fact that the Company was
repeatedly informed about the problems with the clinical trials by the
FDA during the class period.

After these additional facts were disclosed, Company shares fell
further to open on January 7, 2002 at $34.96 per share.

For more information, contact Robert C. Finkel by Phone: 212-451-9620
or 877-370-7703 by Fax: 212-486-2093 or 877-370-7704 or by E-Mail:
IRRep@wolfpopper.com or visit the firm's Website:
http://www.wolfpopper.com


IMCLONE SYSTEMS: Stull Stull Commences Securities Suit in S.D. New York
-----------------------------------------------------------------------
Stull Stull & Brody initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of purchasers of Imclone Systems, Inc. (NASDAQ: IMCL) common stock
between October 29, 2001 and December 28, 2001, inclusive.

The suit alleges that the Company and certain of its officers and
directors based upon false and misleading information regarding its
application pending before the Food & Drug Administration (FDA) for
approval of its drug Erbitux, which was designed for the treatment of
colorectal cancer.

In addition, the complaint alleges that certain officers and directors
of the Company sold their shares while in possession of material non-
public and adverse information regarding the Erbitux application,
thereby receiving proceeds of over $100 million. The claims asserted by
plaintiff on behalf of himself and the proposed Class are brought
pursuant to Sections 10(b) and 20(a) of The Securities Exchange Act of
1934.

For further details, contact Howard T. Longman by Mail: 6 East 45th
Street, New York, NY 10017 by Phone: 800-337-4983 or by E-mail:
TSVI@aol.com


LOGON AMERICA: Wechsler Harwood Lodges Securities Suit in Rhode Island
----------------------------------------------------------------------
Wechsler Harwood Halebian & Feffer LLP commenced a securities class
action in the United States District Court for the District of Rhode
Island, on behalf of purchasers of Log On America, Inc. (Nasdaq: LOAX)
securities between April 22, 1999 and November 20, 2000, inclusive,
against the Company and:

     (1) David R. Paolo, Chairman, Chief Executive Officer and
         founder, and

     (2) Kenneth M. Cornell, Chief Financial Officer


The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder, by issuing materially false and misleading statements to
the market. Specifically, throughout the class period, defendants
repeatedly issued statements indicating that, among other things, the
Company was on track to achieve the goals of its business plan and that
it was successfully growing its service offerings and customer base
through its numerous acquisitions.

The suit alleges that these statements were materially false and
misleading because, among other things, they failed to disclose or
misrepresented:

     (i) that the revenues the Company was generating from its customer
         base, which was predominantly consumer-focused, were not
         sufficient to offset the extensive capital costs that the
         Company was incurring in order to build out its network and
         provision its products;

    (ii) that the Company's "growth-by-acquisition" strategy was not
         meeting with success as the Company had acquired a collection
         of disparate businesses which it was unable to effectively
         integrate into its existing business;

   (iii) that the Company was experiencing weakening demand for its
         products and services and was attempting to transition into
         different markets in order to reinvigorate its sales growth;
         and

    (iv) that as a result of the foregoing adverse factors, the Company
         would not be profitable in the near-term, if at all, and would
         have to completely restructure its operations and slash costs.

For more details, contact Patricia Guiteau by Mail: 488 Madison Avenue
8th Floor, New York, New York 10022 by Phone: 877-935-7400 (Toll Free)
or by E-mail: pguiteau@whhf.com.


LOGON AMERICA: Schatz Nobel Commences Securities Suit in Rhode Island
---------------------------------------------------------------------
Schatz and Nobel PC initiated a securities class action in the United
States District Court for the District of Rhode Island on behalf of all
persons who purchased the common stock of Log On America, Inc.
(formerly Nasdaq: LOAX; now OTC Bulletin Board: LOAX) between April 22,
1999, and November 20, 2000, inclusive.

The suit alleges that the Company, a full service provider of end- to-
end business communication technologies, and members of its top
management misled the investing public during the class period.
Commencing with statements issued as part of Log On America's April 22,
1999, initial public offering, the defendants made several public
statements representing, among other things, that the Company was on
track to achieve the goals of its business plan and that it was
successfully growing its service offerings and customer base through
its numerous acquisitions.

The suit alleges that these statements were materially false and
misleading because, among other things, they failed to disclose or
misrepresented:

      (1) that the revenue the Company was generating from its customer
          base, which was predominantly consumer-focused, was not
          sufficient to offset the extensive capital costs that the
          Company was incurring;

     (2) that the Company's "growth-by-acquisition" strategy was not
         meeting with success as the Company had acquired a collection
         of disparate businesses which it was unable to effectively
         integrate into its existing business;

     (3) that the Company was experiencing weakening demand for its
         products and services and was attempting to transition into
         different markets in order to reinvigorate its sales growth;
         and

    (4) that as a result of the foregoing adverse factors, the Company
        would not be profitable in the near-term, if at all, and would
        have to completely restructure its operations and slash costs.

When the truth was revealed, the Company's common stock fell from a
high of $35.00 per share at the beginning of the class period to $1.50
per share on November 20, 2000.

For more information, contact Andrew M. Schatz, Patrick A. Klingman or
Wayne T. Boulton by Phone: 800-797-5499 by E-mail: sn06106@aol.com or
visit the firm's Website: http://www.snlaw.net.


RENT-A-CENTER INC.: Schiffrin Barroway Files Securities Suit in E.D. TX
-----------------------------------------------------------------------
Schiffrin & Barroway, LLP commenced a securities class action in the
United States District Court for the Eastern District of Texas,
Texarkana Division on behalf of all purchasers of the common stock of
Rent-A-Center, Inc. (Nasdaq: RCII) from April 25, 2001 through October
8, 2001, inclusive against the Company and:

     (1) J. Ernest Talley, Chairman and CEO until October 8,2001,

     (2) Mitchell E. Fadel, President and Director,

     (3) Robert D. Davis, CFO and Treasurer and

     (4) Mark E. Speese, Director until October 8, 2001, thereafter
         Chairman and CEO

The suit charged the defendants with issuing false and misleading
statements concerning its business and financial condition.
Specifically, the complaint alleges that in April 2001, the Company
issued a press release announcing record results for the first quarter
of 2001 and highlighting its resilience in a weakening economy. The
representations in the press release were, according to the allegations
of the complaint, materially false and misleading because the Company
did not disclose that its expenses were rising dramatically as it
attempted to combat weakening demand with deep discounts and
promotions.

While in possession of this adverse non-public information, the Company
completed a secondary offering of 3,200,000 shares of its common stock
at $42.50 per share, on May 25, 2001. Defendant Talley sold 1,700,000
shares in the secondary offering, grossing over $72 million, and
defendant Speese sold 500,000 shares, grossing over $21 million. Then,
on May 31, 2001, defendant Talley sold an additional 1,955,000 shares
of stock at $40.38 per share, grossing over $78 million.

Subsequently, in October 2001, only five months after the secondary
offering, the Company issued a press release announcing that earnings
for the third and fourth quarter of 2001 would be significantly less
than the Company's previous guidance to the market, due to rising
expenses. In response to this announcement, the Company's stock price
dropped by 19% in one day on heavy trading volume.

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 by E-mail:
info@sbclasslaw.com or visit the firm's Website:
http://www.sbclasslaw.com


RENT-A-CENTER INC.: Cauley Geller Commences Securities Suit in E.D. TX
----------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP initiated a securities class action
in the United States District Court for the Eastern District of Texas,
Texarkana Division on behalf of purchasers of Rent-A-Center Inc.
(Nasdaq: RCII) publicly traded securities during the period between
April 25, 2001 and October 8, 2001 inclusive.

The suit charges the Company and certain of its officers and directors
with issuing a series of material misrepresentations to the market
during the class period, thereby artificially inflating the price of
the Company's publicly traded securities.  For example, in April 2001,
the Company issued a press release announcing record results for the
first quarter of 2001 and highlighting the Company's resilience in a
weakening economy.

The representations in the press release were, according to the
allegations of the complaint, materially false and misleading because
the Company did not disclose that its expenses were rising dramatically
as it attempted to combat weakening demand with deep discounts and
promotions.

While in possession of this adverse non-public information, the Company
completed a secondary offering of 3,200,000 shares of its common stock
at $42.50 per share on May 25, 2001. Defendant J. Ernest Talley
(Chairman and CEO until October 8, 2001) sold 1,700,000 Rent-A-Center
shares in the secondary offering, grossing over $72 million, and
defendant Mark E. Speese (Director until October 8, 2001, thereafter
Chairman and CEO) sold 500,000 shares, grossing over $72 million. Then,
on May 31, 2001, defendant Talley sold an additional 1,955,000 shares
of stock at $40.38 per share, grossing over $78 million.

Subsequently, on October 8, 2001, only five months after the secondary
offering, the Company issued a press release announcing that earnings
for the third and fourth quarter of 2001 would be significantly less
than its previous guidance to the market, due to rising expenses. In
response to this announcement, Company stock price dropped by 19% in
one day on heavy trading volume.

For more information, contact Jackie Addison, Sue Null or Shelly
Nicholson by Phone: P.O. Box 25438, Little Rock, AR 72221-5438 by
Phone: 1-888-551-9944 by E-mail: info@classlawyer.com or visit the
firm's Website: http://www.classlawyer.com


STARMEDIA NETWORK: Rabin Peckel Commences Securities Suit in S.D. NY
--------------------------------------------------------------------
Rabin and Peckel LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of all persons or entities who purchased StarMedia Network, Inc.
securities (NASDAQ: STRM) between April 11, 2000 and November 19, 2001,
both dates inclusive, against the Company and directors Fernando J.
Espuelas, and Steven J. Heller.

The suit charges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between April 11, 2000 and November 19, 2001 concerning the
Company's financial performance. The complaint alleges that the Company
reported artificially inflated financial results in press releases and
filings made with the SEC by improperly recognizing revenue in
violation of generally accepted accounting principles.

Specifically, the suit alleges that two of the Company's primary
subsidiary, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de C.V, had
engaged in improper accounting practices which had the effect of
materially overstating the Company's reported revenues and earnings by
at least $10 million. On November 19, 2001, as alleged in the
complaint, the Company issued a press release announcing that based on
the "preliminary" results of an internal investigation into its
accounting practices, it expects to restate its financial statements
for fiscal year 2000 and the first two quarters of 2001 and that those
financial statements should not be relied upon. The Company further
reported that its Chief Financial Officer had "resigned."

Immediately following the announcement of the restatement, the NASDAQ
Stock Market halted trading in the Company's stock, pending the receipt
of additional information from the Company. Company stock last traded
at $0.38 per share, which is 98.5% less than the class period high of
$25.50, reached on April 11, 2000.

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 by E-mail: email@rabinlaw.com or visit the
firm's Website: http://www.rabinlaw.com.


SUPREMA SPECIALTIES: SecuritiesSleuth Probes For Securities Fraud
-----------------------------------------------------------------
Securities watchdog website SecuritiesSleuth.com is investigating
cheese manufacturer Suprema Specialties, Inc. (NASDAQ: CHEZ) for
possible securities fraud after the Company announced last December
that its Chief Financial Officer and its controller has resigned and
that the Company was initiating an internal investigation of its prior
reported financial results and has instructed its auditors to review
the Company's financial records.  The NASDAQ immediately halted trading
in the stock due to "additional information requested."

Suprema Specialties was well-respected, according to
SecuritiesSleuth.com, having recently been selected by Forbes Magazine
for the second year in a row as one of the best 200 small companies in
the United States. In early November 2001, the Company did a secondary
offering, with Janney Montgomery Scott as a lead underwriter, and it
had three different analysts covering it.

However, in a review of the Company's financial history and recent
announcements, the website cited a few "interesting" facts.  It asserts
that the problem with the financial records is most likely confined to
the first quarter of fiscal 2002, for which results were released on
November 15th of last year. The Company's public accounting firm, BDO
Seidman audited its year-end financial statements for the year ending
on June 30, 2001. Since the Company has not brought in a second public
accounting firm to "review the Company's financial records," it is not
likely that they are questioning the prior year's audited results.

According to the website, the problem might also be a longer term one.
Accounts receivable and inventories were surprisingly high when
compared to revenues, and a review of the Company's financials shows
that over the last several years its receivables have grown much more
rapidly than have its revenues.

At the end of 1996, year-end accounts receivable were only 13.5% of
annual revenues, and they had been at this level at least since the
beginning of the 1990s. However, receivables then began to increase
rapidly, reaching 22.4% of revenues by the end of fiscal 2001. This is
a substantial increase.

In addition, the Company's primary source for funding its inventories
and accounts receivable is a revolving line of credit, provided by a
consortium of well-known major banks. The Company's continued access to
this line of credit is dependent upon its compliance with certain
"restrictive covenants, including the maintenance of consolidated net
worth and the maintenance of leverage and fixed charge ratios, as
defined in the agreement."

The SecuritiesSleuth opines that it was possible that "accounting
modifications" were made so as to maintain compliance with these
covenants. If for some reason the CFO and the Controller had failed to
tell senior management that the Company was no longer in compliance
with its credit line covenants, but instead took steps to modify the
Company's financial results so as to maintain the appearance of
compliance.

For more information and inquiries, contact Bob Davis or class action
lawyer Mark McNair, authors of the Website:
http://www.securitiessleuth.com


VAN WAGONER: Schiffrin Barroway Commences Securities Suit in E.D. WI
--------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the
United States District Court for the Eastern District of Wisconsin on
behalf of all purchasers of the common stock of Van Wagoner Emerging
Growth Fund (Nasdaq: VWEGX) from April 28, 2000 through June 30, 2001,
inclusive.  The suit names as defendants:

     (1) Van Wagoner Funds, Inc.,

     (2) Van Wagoner Capital Management, Inc.,

     (3) Sunstone Financial Group, Inc.,

     (4) Van Wagoner Emerging Growth Fund,

     (5) Garrett R. Van Wagoner,

     (6) Larry P. Arnold,

     (7) Robert S. Colman and

     (8) Ernst and Young, LLP

The suit alleges the defendants issued false and misleading statements
concerning the Fund's net asset value (NAV) and performance.
Specifically, the complaint alleges that Ernst & Young, LLP failed to
follow generally accepted accounting practices and generally accepted
auditing standards by specifically approving the changes in net assets
utilized by the Fund between the end of 1999 and the end of 2000.

These statements were materially false and misleading because:

     (i) the NAV of the Fund was materially overstated as the Fund had
         overvalued a material portion of its holdings of certain
         private placement investments;

    (ii) the Fund's performance was materially overstated as those
         figures were based on its NAV, which figures were materially
         overstated because the Fund had materially overstated NAV; and

   (iii) the risk of investing in the Fund was materially understated
         as it had failed to disclose the true risk attendant to its
         portfolio securities and specifically the private placement
         investments.

Accordingly, defendants' statements about the risks associated with
investing in the Fund were not meaningful because they failed to advise
investors that the Fund was materially overstating its NAV.

In June 2001, defendants' gross overvaluation of the private placement
investments was disclosed when defendants revalued nine such private
placement investments originally valued at $28.6 million on December
31, 2000 to a total of $9.00 and marked down an additional 2 holdings
by precisely 50% or 75%. During the class period, the Fund's value
decreased by approximately 75%.

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 by E-mail:
info@sbclasslaw.com


VAN WAGONER: Kirby McInerney Lodges Securities Suit in E.D. Wisconsin
---------------------------------------------------------------------
Kirby McInerney & Squire LLP commenced a securities class action on
behalf of purchasers of shares of the Van Wagoner Emerging Growth Fund
(Nasdaq:VWEGX) between April 28, 2000 and June 30, 2001, inclusive, in
the US District Court for the Eastern District of Wisconsin against:

     (1) Van Wagoner Funds, Inc.,

     (2) Van Wagoner Capital Management, Inc.,

     (3) Sunstone Financial Group, Inc.,

     (4) Van Wagoner Emerging Growth Fund,

     (5) Ernst & Young, LLP,

     (6) Garrett R. Van Wagoner,

     (7) Larry P. Arnold and

     (8) Robert S. Colman

The suit alleges violations of Sections 11, 12(a)(2) and 15 of the
Securities Act of 1933. As alleged in the suit, defendants issued
materially false and misleading statements concerning the Fund's net
asset value (NAV) and performance. The suit also alleges that Ernst &
Young, LLP failed to follow generally accepted accounting practices and
generally accepted auditing standards, by specifically approving the
valuations of net assets utilized by the Fund between the end of 1999
and the end of 2000.

In June 2001, defendants' gross overvaluation of the private placement
investments was disclosed when defendants revalued nine such private
placement investments originally valued at $28.6 million on December
31, 2000 to a total of $9.00 and marked down an additional 2 holdings
by precisely 50% or 75%. During the class period, the Fund's value
decreased by approximately 75%.

For more information, contact Ira M. Press or Orie Braun by Phone: 888-
529-4782 by E-mail: obraun@kmslaw.com or visit the firm's Website:
http://www.kmslaw.com.




                              *********


S U B S C R I P T I O N   I N F O R M A T I O N

Class Action Reporter is a daily newsletter, co-published by
Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and
Beard Group, Inc., Washington, D.C.  Enid Sterling, Aurora Fatima
Antonio and Lyndsey Resnick, Editors.

Copyright 2002.  All rights reserved.  ISSN 1525-2272.

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