CAR_Public/020123.mbx                C L A S S   A C T I O N   R E P O R T E R

              Wednesday, January 23, 2002, Vol. 4, No. 16

                            Headlines

AIR TRANSAT: Number of Emergency Landing Suit Participants Reaches 200
ANTHRAX VACCINES: Disturbing Study Results Halt Vaccination Program
ANTITRUST LAWS: Bush Admin Reorganizes Handling of Antitrust Suits
AT&T CORPORATION: Court Throws Out Arbitration To Resolve Disputes
BAYER AG: More Trouble for German Drug Maker as Baycol Deaths Rise

COLEMANS FOOD: Recalls Smoked Trout Due to C. Botulinum Contamination
COOPERATIVE D'ALENTOUR: Recalls Raisins Due to Undeclared Sulphites
EARTHLINK INC.: California State Court Refuses To Dismiss Consumer Suit
EDDIE BAUER: Recalls Stainless Steel Lunch Bottles For Burn Hazard
GRIMM'S FINE: Undeclared Milk Protein Forces Recall of Sizzlin' Smokies

INTERMATIC INC.: Recalls Nightlights For Potential Shock, Burn Hazards
KNIGHTS OF COLUMBUS: Offers To Settle Insurance Fraud Suit in Illinois
MISSISSIPPI: State's Joinder Rules Allow Double, Triple Jeopardy
MOLINARO'S FINE: Undeclared Milk Protein Forces Ravioli Recall
MULTI-MARQUES: Recalls Sliced White Bread Due to Undeclared Soy Protein

NEW JERSEY: Jurors Investigate Park Allegedly Causing Homes To Flood
OREGON: Suit Withdrawn After Defendants' Plan To File Anti-SLAPP Suit
REGENCE BLUE: WA Suit File Over Limited Women's Contraceptive Coverage
TAK TAI: Palm Juice Products Sold in B.C., Alberta Being Recalled
TEXAS: Supreme Court Allows Environmental Suit Discovery To Proceed
THIMEROSAL LITIGATION: Federal Court Remands Suit To Oregon State Court

                         Securities Fraud

ARTHUR ANDERSEN: Petroleum Firm Sues For Involvement in Enron Collapse
CROSSWORLDS SOFTWARE: Shareholders Sue To Block IBM Corportion Merger
CUMULUS MEDIA: April Securities Suit Settlement Hearing Scheduled
ENRON CORPORATION: Lawyers Allege Destruction of Vital Documents
EXFO ELECTRO: Disputes Investors Claims in Securities Suit in NY

FINISAR CORPORATION: Sued For Securities Act Violations in S.D. NY
IMCLONE SYSTEMS: House Panel Commences Inquiry into Erbitux Disclosures
LIBERTY MEDIA: Shareholders Sue To Block Merger With Liberty Digital
LITTLE SWITZERLAND: Delaware Court Approves $1.5M Settlement
WESTERN SAVINGS: Settling Securities Suits in Arizona Federal Court

                            *********


AIR TRANSAT: Number of Emergency Landing Suit Participants Reaches 200
----------------------------------------------------------------------
There are now 200 plaintiffs in the class action against Canadian
airline Air Transat, Antonio Azevedo, plaintiffs' attorney said
recently, according to according to a report by The Globe and
Mail.

The lawsuit alleges the plaintiffs suffered psychological trauma when
an Air Transat Airbus A330 ran out of fuel in the mid-Atlantic and made
an emergency landing in the Azores.  The flight carried 291 passengers.

Mr. Azevedo said that his clients desire to widen the lawsuit's scope
to include aircraft manufacturer, Airbus Industrie as a defendant.  A
court hearing on the motion to certify the passengers as a class will
take place in the spring, he added.


ANTHRAX VACCINES: Disturbing Study Results Halt Vaccination Program
-------------------------------------------------------------------
The US Department of Defense has halted its program to protect military
forces from the deadly anthrax virus, after a study by the Navy Bureau
of Medicine and Surgery reported that an anti-anthrax vaccine could
lead to birth defects in babies.

Dr. William Winkenwerder, Jr., Assistant Secretary of Defense for
Health Affairs, released a memo last week, asking the Army, Navy, Air
Force and Marines to develop a plan within two weeks to ensure that
pregnant servicewomen do not get the vaccinations in the meantime,
according to an Associated Press report.

Bureau official, Lt. JG Mike Kafka said the study may have used faulty
data and ordered a review, but the Department clearly isn't taking
anymore chances.  Dr. Winkenwerder has asked the services to
devise a way to enhance the screening of women of childbearing age,
"potentially including pregnancy testing," to prevent pregnant women
from getting the vaccine.

Throughout the program, health care workers were supposed to avoid
vaccinating expectant mothers, but it was not clear whether the workers
failed to ask the women or whether the women did not know they were
pregnant.  Findlaw.com reports that the study indicated that some women
might have gotten the vaccination after their first trimester, by which
time they would probably have known they were pregnant.  The Pentagon
is not releasing details on the study while the review is under way,
Mr. Kafka said.

The program was instituted in 1998, when US troops were deployed to
South Korea and the Middle East to protect them from anthrax bacteria
that, when inhaled, can cause death within a few days.  A small number
of soldiers, dubious about the vaccine's safety, have refused to get
them and faced legal or disciplinary action.  Some troops with symptoms
of the Gulf War syndrome said the vaccine might have caused their
conditions. Scientists have contested that claim.


ANTITRUST LAWS: Bush Admin Reorganizes Handling of Antitrust Suits
------------------------------------------------------------------
The Bush Administration is reorganizing how it enforces antitrust laws
by assigning specific cases to the Justice Department and the Federal
Trade Commission. The goal is to prevent the reoccurrence of situations
in which both agencies have competed against each other during
investigations' management.

Under the plan, the Department of Justice will be responsible for
reviewing all mergers involving Internet, software, telecommunications
and entertainment companies. The Federal Trade Commission (FTC) will
have approval authority for other industries, such as health care, oil,
natural gas, electric power, computer hardware and biotechnology
companies, according to a Findlaw.com report.  The decision will also
make the Justice Department responsible for companies in these
businesses: cable, publishing, toys, games, television, radio,
newspapers, movies, advertising and music.

The reorganization changes six years of precedent policy and is deemed
important to corporate America because some experts believe the FTC is
more independent and less susceptible to political influence, according
to Findlaw.com.

There has been no comment from either agency regarding the matter.


AT&T CORPORATION: Court Throws Out Arbitration To Resolve Disputes
------------------------------------------------------------------
A federal judge in San Francisco, US Magistrate Judge Bernard
Zimmerman, strongly criticized AT&T Corporation's private system of
resolving disputes as an "illegal and unconscionable" attempt to
deprive telephone customers of their legal rights, the Associated Press
recently reported.

Binding arbitration is a quasi-legal process of resolving disputes
without laws, juries or constitutional rights, according to Judge
Zimmerman. He ruled that the AT&T's arbitration system puts long-
distance customers at a disadvantage, striking down the Company's
attempt to impose rules on California customers that would have:

     (1) barred them from joining in class actions;

     (2) limited damages for fraud and other intentional wrongdoing;
         and

     (3) made filing complaints in certain other cases prohibitively
         expensive.

"It's not just that AT&T wants to litigate in the forum of its choice..
arbitration," Judge Zimmerman wrote.  "It is that AT&T wants to make
it very difficult for anyone to effectively vindicate her rights, even
in that forum."

Judge Zimmerman's decision came a day after the US Supreme Court ruled
that an arbitration agreement could not block a federal agency from
seeking damages in court for victims of employment discrimination.
Taken together, the cases indicate a potential shift in the consistent
support from federal courts for corporate policies that force
employees, stockholders, patients and other consumers into binding
arbitration.

Company spokesman, Gordon Diamond said that binding arbitration is a
quick and convenient way to resolve disputes, and that AT&T settles the
overwhelming majority of its disputes over the telephone.  "This is a
process that's widely used in the wireless industry, the credit card
industry, it's not something that's unique to AT&T," he said.  The
Company plans to appeal the decision.


BAYER AG: More Trouble for German Drug Maker as Baycol Deaths Rise
------------------------------------------------------------------
German pharmaceutical giant, Bayer AG, disclosed in latest regulatory
filing that Baycol-related deaths have risen to more than a hundred
since last August, fueling talk of more suits ahead.

Already facing several class actions in the United States, a German
lawyer, who The Times did not name in its report, is preparing to lodge
his own class action, representing 2,000 German users of Baycol.  The
suit, which will also name GlaxoSmithKline as co-defendant, will be
filed in the United States. The attorney cited a history of large
damage payments in the US compared to Europe, the report says.

Analysts predict litigation expenses for the embattled German drug
maker could reach US$10 billion.  In August last year, when the company
pegged deaths at 52 worldwide, litigation cost was estimated to reach
less than US$5 billion. These latest figures surfaced in company
documents filed with the US Securities and Exchange Commission ahead of
its listing in the New York Stock Exchange this Thursday.


COLEMANS FOOD: Recalls Smoked Trout Due to C. Botulinum Contamination
---------------------------------------------------------------------
The Canadian Food Inspection Agency and Colemans Food Centre Ltd. are
warning the public not to consume Colemans Food Centre brand vacuum
packed Smoked Trout. It is possible that this product may support the
growth of bacteria responsible for botulism in humans. The Company is
voluntarily recalling this product, which was sold only in
Newfoundland.

Colemans Food Centre Ltd. stores sell the affected product under the
following names: Trout Locally Smoked, Smoked Trout Fillets and Smoked
Trout. All "Pkgd. On" codes are affected by this alert.

Foods contaminated with C. botulinum may not look or smell spoiled.
Botulism is a life-threatening illness caused by toxins produced by
Clostridium botulinum bacteria. Consumers should dispose of the
remaining product immediately or return products to the point of
purchase for a refund.  There have been no reported illnesses
associated with the consumption of this product.

For more information, contact Fred Jamieson (English) of the Canadian
Food Inspection Agency, Office of Food Safety and Recall by Phone: 613-
760-4376 or Linda Leblanc (French) by Phone: 613-760-4112


COOPERATIVE D'ALENTOUR: Recalls Raisins Due to Undeclared Sulphites
-------------------------------------------------------------------
The Canadian Food Inspection Agency is warning consumers with allergies
to sulphites not to consume Golden Raisins labeled as "FRUITS SECHES
raisin dor," distributed by Cooperative D'Alentour. This product may
contain sulphites that are not declared on the label. Cooperative
D'Alentour is voluntarily recalling the affected product from the
marketplace. This product was sold in Quebec.

The affected product is sold in 1 kg and 5 kg package sizes. All
packages that do not clearly mention the presence of sulphites are
affected by this alert. Consumption of this product may cause a serious
or life-threatening reaction in persons with allergies to sulphites.
There have been no reported illnesses associated with the consumption
of this product.

For more information, contact Davendra Sharma (English) of the Canadian
Food Inspection Agency, Office of Food Safety and Recall by Phone: 613-
755-2890 or Brian Radey (French) by Phone: 613-755-3324


EARTHLINK INC.: California State Court Refuses To Dismiss Consumer Suit
-----------------------------------------------------------------------
The California Superior Court refused to dismiss a class action against
Earthlink, Inc., alleging the Company violated the Consumer Legal
Remedies Act and the Unfair Business Practices Act by providing
inadequate DSL service to consumers throughout California.

Specifically, the suit alleges that the Company did not construct a
telecommunication infrastructure sufficient to meet demand for its DSL
service. As a result, it was unable to provide the degree of DSL
service performance capabilities and attributes that it marketed and
advertised.

In a seven-page ruling, the Court stated that, "plaintiff has alleged
sufficient facts to support the claims for unfair business practices
and deceptive practices, both of which are based on allegations that
defendant fraudulently misrepresented that it had sufficient DSL
service capabilities to be able to provide the promised fast hook-up
and access to the Internet."

For more information, contact Marc L. Godino of Stull Stull and Brody
by Phone: 888-388-4605 by E-mail: mgodino@secfraud.com or visit the
firm's Website: http://www.secfraud.com


EDDIE BAUER: Recalls Stainless Steel Lunch Bottles For Burn Hazard
------------------------------------------------------------------
Eddie Bauer Outlet Stores is cooperating with the US Consumer Product
Safety Commission (CPSC) by voluntarily recalling about 4,000 stainless
steel lunch bottles. The insulated bottles have a weak seal and can
leak hot liquids. This poses a serious burn hazard to consumers.  The
Company has received four reports of the insulated bottles leaking,
though no injuries have been reported.

The recalled Wide Mouth Lunch Bottles are 32 oz. stainless steel
containers, with a black base and handle, a black carrying strap, and a
two-piece lid, including a drinking cup.  The insulated bottles have
the words "Eddie Bauer" written on one side of the container located 1
3/4 inches from the lower edge of the plastic collar, and a label that
reads "Eddie Bauer Wide Mouth Lunch Bottle" on the other.  On the
bottom of the bottle there is a sticker that reads "Made in China."
Eddie Bauer outlet stores nationwide sold these insulated bottles from
September 2001 through November 2001 for about US$24.

Lunch bottles that have the words "Made in Korea" printed on the bottom
or have the "Eddie Bauer" signature logo printed 1 1/4 inches from the
lower edge of the plastic collar are not part of this recall.

For more information, call the Company by Phone: 800-426-6253 between 5
am and 11 pm PT Monday through Sunday or visit the firm's Website:
http://www.eddiebaueroutlet.com


GRIMM'S FINE: Undeclared Milk Protein Forces Recall of Sizzlin' Smokies
-----------------------------------------------------------------------
The Canadian Food Inspection Agency and Grimm's Fine Foods Ltd.,
Richmond, British Columbia are warning consumers with allergies to milk
protein not to consume Grimm's Sizzlin' Bavarian Smokies. The affected
product packages may contain Cheese Flavoured Smokies that are not
declared on the label. The Company is voluntarily recalling the
product, which was distributed in Alberta and British Columbia.

The affected product, Grimm's Sizzlin' Bavarian Smokies, is sold in a
450g package. The identification codes "Best Before JA 29" and "EST
226" are stamped on the plastic film. The UPC is 0 55898 15190 7.

Consumption of this product may cause a serious or life-threatening
reaction in persons with allergies to milk protein. There have been no
reported illnesses associated with the consumption of this product.

For more information, contact Davendra Sharma (English) of the Canadian
Food Inspection Agency, Office of Food Safety and Recall by Phone: 613-
755-2890 or Brian Radey (French) by Phone: 613-755-3324


INTERMATIC INC.: Recalls Nightlights For Potential Shock, Burn Hazards
----------------------------------------------------------------------
Intermatic Inc. is cooperating with the US Consumer Product Safety
Commission (CPSC) by voluntarily recalling about 156,000
electroluminescent nightlights. The nightlights can short-circuit,
posing shock and burn hazards to consumers.  The Company has not
received any reports of incidents. This recall is being conducted to
prevent the possibility of injury.

The recalled Electroluminescent Night Lights have model numbers GN172
and GN165, which are molded on the back of the lights. The model GN172
lights are gray in color and are about 1 1/2 inches square by 1/4 inch
thick with two metal electrical prongs. The model GN165 lights are gray
in color and are about 4-3/8 inches in height, 1-5/8 inches wide and
1/4 inch thick with two metal electrical prongs. Also molded on the
back of the nightlights are the words, "Intermatic Inc." and "Made in
Taiwan."

Hardware stores and electrical distributors nationwide, including True
Value Hardware Stores, sold these nightlights between January 1999 and
December 2001 for about US$4.

For more information, contact the Company by Mail: 7777 Winn Road,
Spring Grove, IL 60081, Attn: Larry Kubisiak or by Phone: 800-391-4555
between 8 am and 4:30 pm CT Monday through Friday.


KNIGHTS OF COLUMBUS: Offers To Settle Insurance Fraud Suit in Illinois
----------------------------------------------------------------------
Policyholders of the Knights of Columbus, an insurance company and
Roman Catholic fraternal group based in New Haven, Connecticut, have
until March 13 to decide whether to accept a settlement to end the
class action, filed in Chicago, which charges the Knights with
"abusive" sales practices for whole-life insurance policies sold
between 1980 and 2000.

The court will hold a hearing on May 2 in Chicago to consider
objections and a final certification of the settlement, the
Philadelphia Inquirer recently reported.

The Knights, in the settlement, deny wrongdoing, citing regulatory
accolades, such as a 1997 investigation by the Pennsylvania Insurance
Department, which found "no evidence that any improprieties occurred in
the (Knight's) marketing and sales process."

Under the terms of the settlement, the plaintiff policyholders will
receive a small three-year accidental-death policy, or a year's free
premium, in cases where an arbitrator agrees they were deceived.  Under
the proposal, the Knights also would pay $2.95 million in legal fees,
plus $250,000 in costs, to be split by the four law firms that brought
the suit, including Berger & Montague in Philadelphia.


MISSISSIPPI: State's Joinder Rules Allow Double, Triple Jeopardy
-----------------------------------------------------------------
In September of last year, a jury in Claiborne County, Mississippi,
awarded $100 million in compensatory damages to 10 people suing drug
maker Johnson & Johnson. The plaintiffs claimed that after using
Propulsid, a drug for indigestion, they suffered from a variety of
ailments, including anxiety and heart disease, according to a recent
report in The Northside Sun.

Hazlehurst attorney, Jim Shannon, filed the suit last year, and he is
again preparing to file a lawsuit brought by 10 more plaintiffs
against Johnson & Johnson over the same drug.

Nearly every other state protects corporations from double jeopardy in
class actions, ruling that a company can get sued only one time on one
issue.  Anyone who has been hurt must either join the class action suit
or sue alone as an individual.  Once the class-action suit is decided,
the company cannot be sued again by a group of common plaintiffs.

However, in Mississippi, there is no limit to how many times one can
put together groups of plaintiffs having common complaints and sue,
although individuals are protected by the constitution against double
jeopardy in criminal cases.  The State allows unlimited use of joinder
lawsuits in which several plaintiffs can join together to sue somebody
without having to go through class action procedures.

According to The Northside Sun, Supreme Court Justice Bill Waller said,
"I don't think I know of any other state in the country that is as
liberal as Mississippi in allowing these types of joinder lawsuits."
Justice Waller was one of four Supreme Court justices who voted against
joinder lawsuits in American Bankers versus Alexander in February of
2001.  He wrote the dissenting opinion and tried to stop the legal
precedent that opened the lawsuit floodgates. Justice Jim Smith,
Justice Mike Mills and Justice Kay Cobb voted with Justice Waller.

Chief Justice Ed Pitman, Justice Oliver Diaz, Justice Chuck McRae,
Justice Fred Banks and Justice Chuck Easley exercised pro-joinder
votes.  According to the Northside Sun, the existence of joinder
lawsuits is the reason one sees the ads seeking plaintiffs, asking that
the reader call a certain number if he or she has used any one of such
drugs as Fen-Phen, Redux, Pondimum.  Each call can turn into thousands
of dollars, because in Mississippi, attorneys can group 10 or 20
plaintiffs together and then negotiate large settlements.

The Legislature's failure to adopt statutes providing instead for
class action lawsuits in Mississippi, according to The Northside Sun,
resulted in doubled, or even tripled legal jeopardy for a company. Such
a situation gives Mississippi a "black eye" among industrial recruiters
and insurance companies.


MOLINARO'S FINE: Undeclared Milk Protein Forces Ravioli Recall
--------------------------------------------------------------
Molinaro's Fine Italian Foods, Ltd. is coordinating with the Canadian
Food Inspection Agency in recalling Monlinaro's Brand Ravioli with Meat
after and undeclared milk protein could harm consumers with allergies
to milk protein.  Consumption of this product may cause a serious or
life-threatening reaction in persons with allergies to milk protein.
There have been no reported illnesses associated with the consumption
of this product.

The affected product, Molinaro's Brand Ravioli with Meat is sold in
454g size packages. The product code 340 1 and establishment code
"CANADA 290| are identified on the label. The UPC is 7 72032 24015 9.
The product is distributed in Ontario.

The Agency is monitoring the effectiveness of the recall.  For more
details, contact the Company by Phone: 905-275-7400 (ext. 26) or 1-800-
268-4959 or contact Davendra Sharma (English), Canadian Food Inspection
Agency, Office of Food Safety and Recall by Phone: 613-760-4232 or
Brian Radey (French), Canadian Food Inspection Agency,
Office of Food Safety and Recall by Phone: 613-755-3324


MULTI-MARQUES: Recalls Sliced White Bread Due to Undeclared Soy Protein
-----------------------------------------------------------------------
The Canadian Food Inspection Agency is warning consumers with allergies
to soy protein not to consume March, Metro Giroux brand sliced enriched
white bread as soy flour is not declared on the label.  The Company is
recalling the product, which is sold in Rouyn-Noranda, Quebec.

The March, Metro Giroux Sliced Enriched White Bread is sold in a 450 g
bag with UPC 0 67431 01506 5. All best before dates are considered
affected. The affected packages list that this product is made for La
Boulangerie Norbec Lt,e, Amos, Quebec.

The consumption of this product may cause a serious or life-threatening
reaction in persons with allergies to soy protein. There have been no
reported illnesses associated with the consumption of this product.

For more information, contact D. D. Sharma (English) of the Canadian
Food Inspection Agency, Office of Food Safety and Recall by Phone: 613-
755-2890 or Brian Radey (French) by Phone: 613-755-3324


NEW JERSEY: Jurors Investigate Park Allegedly Causing Homes To Flood
--------------------------------------------------------------------
Jurors recently toured a Bound Brook, New Jersey park, which nearby
property owners contend is illegally fortified with landfill that
exacerbates flooding in their homes, according to Newark, New Jersey
publication, The Star-Ledger.  The jury of five men and three women
personally inspected Billian-Legion Park off East Main Street in the
town of Bound Brook to familiarize themselves with the details of the
case they are deciding in State Superior Court Judge Rosemarie
Ruggiero-Williams' courtroom, in Somerville.

A class action against Bound Brook, brought by 150 property owners in
the eastside park neighborhood, contends fill was improperly dumped at
the park and along the bank of the Green Brook that forms the boundary
to it.  The plaintiffs claim the dirt changed the topography of the
land and narrowed the waterway's path in a way that increases the
potential for flooding in heavy downpours.

Jurors also heard defense attorney Chris Piasecki of Middlesex read
sworn statements provided to the Court by Michael Picone, a Bridgewater
resident, who owns the 20-unit Ashton Arms apartments in Bound Brook
and who is a principal plaintiff.  In one statement, Mr. Picone
testified that he made no observations of the materials brought in or
out during the park's evolution from its previous status as a landfill.

Mr. Picone was asked whether he ever complained about the
construction of the park while the work was going on, but he answered
he did not.  When asked how many truckloads of dirt were brought onto
the site, he testified, "I really don't know."


OREGON: Suit Withdrawn After Defendants' Plan To File Anti-SLAPP Suit
---------------------------------------------------------------------
The class action lawsuit filed against various environmentalists and a
commercial fishing group in Siskiyou County Superior Court in Oregon
was withdrawn after the defendants said they would file a countersuit
under the Anti-SLAPP statute, which prohibits frivolous lawsuits meant
to intimidate defendants.

The suit was commenced last August on behalf of widow Georgette Kirby,
74, who owns 80 acres homesteaded by her father, and neighboring
farmers.  The suit sought to force the defendants to pay damages to
Klamath Basin farmers who were denied water last summer.  Named as
defendants were:

     (1) the Sierra Club,

     (2) Klamath Forest Alliance,

     (3) Pacific Coast Federation of Fishermen's Associations,

     (4) the Golden Gate Audubon Society and

     (5) the Institute for Fisheries Resources

According to an Associated Press report, the lawsuit was commenced
after the US Bureau of Reclamation sharply reduced irrigation
deliveries to the Klamath Basin Farmers who rely on the Reclamation
Project for water, allegedly because of the needs of endangered suckers
and threatened coho salmon.

Attorney Robert Hannon, who filed the suit, claimed that the defendants
wanted to drive down the price of farmland, therefore, they persuaded
the government to cut back irrigation water.  He told Associated Press
he withdrew the lawsuit because it would cost hundreds of thousands of
dollars to gather the evidence required.


REGENCE BLUE: WA Suit File Over Limited Women's Contraceptive Coverage
----------------------------------------------------------------------
Medical insurer Regence Blue Shield is facing two class action suits in
the Federal District Court of Seattle, Washington, the Big Class Action
announced in its website recently.

"Plaintiffs are prosecuting claims against the company for its refusal
to offer women complete coverage, or any coverage in many instances,
for their prescription contraceptive needs," the announcement said.

Accordingly, the company has unlawfully discriminated and violated
insurance and consumer-protection laws by limiting coverage of
contraceptives available to women by prescription.

Plaintiffs want an injunction prohibiting this practice and
reimbursement of expenses incurred by class members in buying
contraceptives that should have been covered by the company.

The two suits are docketed as Glaubach v. Regence Blue Shield, No. C01-
1221L and ACLU v. Regence Blue Shield, No. C01-1222L.


TAK TAI: Palm Juice Products Sold in B.C., Alberta Being Recalled
-----------------------------------------------------------------
The Canadian Food Inspection Agency and Tak Tai Trading Co. Ltd. are
warning consumers with allergies to sulphites not to consume The Sun
And 9 Coconut Palms Brand Palms Juice. This product may contain
sulphites that are not declared on the label.  Tak Tai is voluntarily
recalling the affected product from the marketplace. The product has
been distributed in British Columbia and Alberta.

The Sun And 9 Coconut Palms Brand Palms Juice is sold in 355g bottles
with UPC 7 61934 04001 1. The affected product has a main label stating
9 Coconut Palms Brand, and with a cap and a neck label stating The Sun
And 9 Coconut Palms Brand. The Sun And 9 Coconut Palms Brand Palms
Juice is packed for Tak Tai Trading Co Ltd. and exported by Thai Lee
International, Bangkok, Thailand.

Consumption of this product may cause a serious or life-threatening
reaction in persons with allergies to sulphites. There have been no
reported illnesses associated with the consumption of this product.

For more information, contact Garfield Balsom (English) of the Canadian
Food Inspection Agency, Office of Food Safety and Recall by Phone: 613-
760-4232 or Brian Radey (French) by Phone: 613-755-3324


TEXAS: Supreme Court Allows Environmental Suit Discovery To Proceed
-------------------------------------------------------------------
The Texas Supreme Court is allowing discovery to continue in the class
action brought against fifteen corporations by 448 former employees of
the Parker Hannifin Corporation's O-ring seal manufacturing facility in
McAllen, Texas. The case will proceed in Texas Trial Court.

The suit includes as defendants, chemical giants Union Carbide
Chemicals, Shell Oil and Copolyer Rubber & Chemical.  The suit alleges
the class members suffered personal injuries from a combination of
chemicals made by or supplied to the plant by the corporations. The
employees allege that these injuries resulted from exposure to a "toxic
soup" of chemicals in the plant's environment.


THIMEROSAL LITIGATION: Federal Court Remands Suit To Oregon State Court
-----------------------------------------------------------------------
Parents who are suing 10 pharmaceutical companies for allegedly causing
autism in their children scored a modest victory when a federal court
ruled recently that the suit can be tried in a state court.

According to a report by Northwest NewsChannel 8, US Magistrate Donald
Ashmanskas remanded the case two weeks ago to the Multnomah County
Circuit Court in Oregon.  The defendants had until yesterday to
challenge the judge's order.

Lawyer Kathleeen Daily, who represents the plaintiffs, says the ruling
is favorable to her clients, as it effectively "levels the playing
field" with the high-profile defendants.

The defendants in the lawsuits are:

     (1) Aventis Pasteur Inc.,

     (2) Pfizer Inc., a subsidiary of Warner-Lambert,

     (3) GlaxoSmithKline,

     (4) Merck & Co.,

     (5) Abbott Laboratories,

     (6) American Home Products,

     (7) Baxter International Inc.,

     (8) Eli Lilly & Co.,

     (9) Sigma Chemical Co., and

    (10) Aldrich Chemical Co.

"It levels the playing field because it is more affordable to wage this
battle against these mega-corporations in state court rather than
federal court," Ms. Daily says of the ruling.

The case was originally filed by George and Tory Mead, a Portland
couple whose 3-year-old son, William, developed autism after receiving
vaccines containing the preservative thimerosal, a form of mercury.
These vaccines have been routinely administered to U.S. children since
the early 1990s.  In 1999, however, the American Academy of Pediatrics
and the U.S. Public Health Service recommended thimerosal use stop.

Mr. Mead claims a number of research studies point to an increasing
case of autism and associated neurological disorders among children
since the government began using these vaccines.

Although the National Academy of Sciences, in a report last October,
admitted that a link between thimerosal and disorders in children has
yet to be proven, it nevertheless backs a 1999 recommendation to remove
vaccines with thimerosal from the country's medical stockpile.

Three doctors, including one who treated Mr. Mead's son, are also named
as defendants, the report says.


                            Securities Fraud


ARTHUR ANDERSEN: Petroleum Firm Sues For Involvement in Enron Collapse
----------------------------------------------------------------------
The Tulsa-based petroleum producer Samson Investment filed a civil
lawsuit in Tulsa County District Court against the accounting firm of
Chicago-based Arthur Andersen, charging the firm with fraud and
negligence, the Associated Press recently reported.

The suit alleges that the Company "recklessly disregarded evidence of
questionable financial transactions between Enron and its insiders, and
otherwise failed to exercise the degree of care, skill and competence
that should be exercised by competent members of the accounting
profession when confronted with highly questionable insider
transactions."

According to the filing, Samson and other "similarly situated entities
justifiably relied on the financial audits of Enron" in "entering into
contracts with Enron relating to the purchase and sale of hydrocarbons,
such as natural gas."

The suit, which was filed on behalf of those entities that were
detrimentally affected by the Company in connection with auditing
services provided to Enron, further alleges that the audits and
financial materials prepared by the Company and distributed for public
dissemination by Enron in various Securities and Exchange Commission
filings were "grossly misleading."  Additionally, the Company allegedly
did not exercise reasonable care or competence in obtaining and/or
communicating the financial data.  The suit states, if the Company
properly performed its duties, "Samson and class members would not have
entered into contracts with Enron."


CROSSWORLDS SOFTWARE: Shareholders Sue To Block IBM Corportion Merger
---------------------------------------------------------------------
Shareholders of CrossWorlds Software have filed a class action in San
Mateo Superior Court, seeking to block the merger of the Company with
IBM Corporation.

The suit claims that the Company's directors sold the Company at an
"unfairly low price" to make the deal attractive to IBM.  The suit
additionally claims that Company executives breached their fiduciary
duties to shareholdings, by releasing the firm's record third quarter
financial results hours after the IBM announcement of its purchase of
the Company.

According to an iWon report, after the financial markets had closed in
October 30, the Company reported a pro forma profit of $900,000 (3
cents per share). Including restructuring charges and other items, the
company reported a loss of $1.5 million (6 cents).

IBM has announced that it had completed the purchase of the Company,
for $129 million, or $4.65 per share, the company's closing price on
January 11. The suit says the IBM announcement came at just after 8 am,
which it called "a surprise to CrossWorlds' shareholders."

CrossWorlds representatives referred questions to IBM. IBM officials
declined to comment on the matter, though a spokesman called such
complaints common in acquisitions, according to the San Francisco
Chronicle.

Lawyers for the plaintiffs disagreed. "We would not have proceeded in
filing this case if we didn't have strong reason to believe the terms
on which this transaction is taking place were highly unfair to the
minority shareholders of CrossWorlds," said Corey Holzer, of Holzer &
Holzer in Atlanta.


CUMULUS MEDIA: April Securities Suit Settlement Hearing Scheduled
-----------------------------------------------------------------
The United States District Court for the Eastern District of Wisconsin
set for April 5, 2002 the fairness hearing for the $13 million package
proposed by Cumulus Media, Inc. to settle a securities class action
filed on behalf of purchasers of the Company's stock from October
26,1998 to March 16,2000 inclusive, including purchasers of the
Company's stock issued in secondary offerings on July 22,1999 or
November 18,1999.

The suit alleges, among other things, violations of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder, and Sections 11 and 12(a) of the Securities Act of 1933.

Under the settlement, the Company will also provide 240,000 shares of
freely tradable common stock.  The hearing will determine whether:

     (1) the proposed settlement and plan of allocation should be
         approved by the court as fair, reasonable and adequate;

     (2) shares to be distributed to class members and plaintiffs
         counsel should be exempt from registration under Section
         3(a)(10) of the Securities Ace of 1953 and

     (3) the application of plaintiff's counsel for attorneys' fees and
         reimbursement of expenses shall be considered.

For more information, contact David Kessler of Schiffrin and Barroway
LLP by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 or
by Phone: 610-667-7706.


ENRON CORPORATION: Lawyers Allege Destruction of Vital Documents
----------------------------------------------------------------
Lawyers pursuing several class action suits against fallen energy giant
Enron Corporation accused the Company of shredding loads of documents
after being informed by the Securities and Exchange Commission of its
investigation into the Company's accounting practices and financial
disclosures.

William Lerach, from the law firm of Milberg Weiss, informed Associated
Press, that destruction of evidence at the Company was "open and
notorious and widespread.They even shredded on Christmas Day."  Another
lawyer, G. Paul Howes, mentioned the testimony of a former Enron
executive, Maureen Castaneda, that said the Company began shredding
documents after Thanksgiving in an accounting office and continued
through at least mid-January.

According to an Associated Press report, Ms. Casta¤eda displayed one
box of the shredded material during an ABC news interview, which she
said, "I got.when I was leaving work to basically use.for packing
material."  She added, "There were.a lot more than this."  Mr. Howes
further said some of the shredded Enron papers "included those clearly
marked Jedi II and Chewco", a reference to partnerships through which
the Company disguised debt because they were not formally included in
its balance sheet.  The partnerships were a major factor in sending the
Company into bankruptcy.

Company lawyer Robert Bennett said the Company was investigating the
destruction of documents at their headquarters.  Earlier, the Company
sad they had instructed their employees to avoid destroying the
documents and that they would deal with anyone who disobeyed the
directive.


EXFO ELECTRO: Disputes Investors Claims in Securities Suit in NY
-----------------------------------------------------------------
Exfo Electro Optical Engineering, Inc. faces a securities class action
pending in the United States District Court for the Southern District
of New York on behalf of purchasers of the Company's securities between
June 29, 2000 and December 6, 2000, inclusive.

The suit names as defendants the Company and:

     (1) Merrill Lynch, Pierce, Fenner & Smith, Inc.,

     (2) RBC Dominion Securities Inc.,

     (3) Wit Soundview Corporation,

     (4) CIBC World Markets Inc.,

     (5) Germain Lamonde and

     (6) Pierre Plamondon

The suit alleges violations of the Securities Exchange Act of 1934 and
and Rule 106-5 promulgated thereunder and sections 11, 12 and 16 of the
Securities Act of 1933. The suit alleges that the Company's
registration statement and prospectus filed with the Securities and
Exchange Commission on June 29, 2000 contained material
misrepresentations and/or omissions resulting from:

     (i) the underwriters allegedly soliciting and receiving
         additional, excessive and undisclosed commissions from certain
         investors in exchange for which they allocated material
         portions of our shares issued in connection with our initial
         public offering; and

    (ii) the underwriters allegedly entering into agreements with
         customers whereby our shares issued in connection with our
         initial public offering would be allocated to those customers
         in exchange for which such customers agreed to purchase
         additional amounts of our shares in the aftermarket at pre-
         determined prices.

The Company believes that its executive officers have fully complied
with all applicable securities laws and that the allegations in the
suit are without merit. The Company says that it will vigorously defend
its position in this litigation.


FINISAR CORPORATION: Sued For Securities Act Violations in S.D. NY
------------------------------------------------------------------
Finisar Corporation labeled "without merit" the securities class action
pending in the United States District Court for the Southern District
of New York on behalf of purchasers of its common stock from November
17, 1999 through December 6, 2000, against the Company and:

     (1) Jerry S. Rawls, President and Chief Executive Officer,

     (2) Frank H. Levinson, Chairman of the Board and Chief Technical
         Officer,

     (3) Stephen K. Workman, Vice President, Finance and Chief
         Financial Officer, and

     (4) an investment banking firm that served as an underwriter for
         an initial public offering in November 1999 and a secondary
         offering in April 2000.

The suit alleges violations of Sections 11, 12(a)(2) and 15 of the
Securities Act of 1933 and, as to the underwriter only, Section 10(b)
of the Securities Exchange Act of 1934, on the grounds that the
prospectuses incorporated in the registration statements for the
offerings failed to disclose, among other things, that

     (i) the underwriter had solicited and received excessive and
         undisclosed commissions from certain investors in exchange for
         which the underwriter allocated to those investors material
         portions of the shares of our stock sold in the initial public
         offering, and

    (ii) the underwriter had entered into agreements with customers
         whereby the underwriter agreed to allocate shares of our stock
         sold in the initial public offering to those customers in
         exchange for which the customers agreed to purchase additional
         shares of our stock in the aftermarket at pre-determined
         prices.

The Company claims the suit is part of the trend of lawsuits filed
relating to more than 300 other initial public offerings conducted in
1999 and 2000. Those cases have been consolidated for pretrial purposes
before the Honorable Judge Shira A. Scheindlin and the defendants' time
to respond to the complaints has been stayed pending a plan for further
coordination.

The Company vows to oppose the litigation vigorously, but cannot give
any assurance as to its outcome. The Company says that an adverse
development in the suit could materially affect their business
operations.


IMCLONE SYSTEMS: House Panel Commences Inquiry Into Erbitux Disclosures
-----------------------------------------------------------------------
Imclone Systems faces a House Energy and Commerce Committee inquiry
into its dealings with the US Food and Drug Administration (FDA)
regarding its cancer drug Erbitux. The Committee is the same
congressional committee investigating fallen Enron Corporation's
collapse.

The Company came under fire earlier this month, after the FDA rejected
the application for Erbitux.  The FDA said the Company filed a
materially deficient application.  In response to the FDA's rejection
of the application, the Company misleadingly downplayed the severity of
the problem by issuing additional false and misleading statements.  On
January 4, 2002, a publication known as The Cancer Letter reported that
the FDA repeatedly informed the Company about the problems with the
clinical trials, but the Company took no heed.

In response to these developments, the Company's share price plummeted
from a high of $75 to a low of $34.96 by January 7,2002.  This spurred
multiple class actions from investors who experienced a huge financial
loss due to the debacle.

Committee heads Rep. Billy Tauzin (R-La.) and Rep. James Greenwood (R-
Pa.) will lead the inquiry, in hopes to determine whether the Company
misled the public and its investors by saying all was well with
Erbitux.

Last week, formal letters of inquiry were sent to ImClone, to its
partner Bristol Myers-Squibb and the FDA.  According to the letters,
the committee wants to know whether the Company's CEO Sam Waksal and
his brother and COO Harlan Waksal knew about the FDA concerns with
Erbitux all along, but failed to disclose the information to investors
or to Bristol-Myers, according to a TheStreet.com report.

At the same time the trials for Erbitux were being conducted, the
Company was negotiating with Bristol-Myers to buy their stocks for
millions of dollars.   The congressmen are concerned, according to
TheStreet.com, that Mr. Waksals was offered sweetheart loans from
ImClone last summer to purchase low-priced shares of the Company's
stock. Allegedly, the Company also didn't disclose the information
about the FDA's rejection of the Erbitux application until last week,
when Sam Waksal made a statement at a health care conference.

The panel wants to see all records relating to the Erbitux application,
as well as correspondence and records of meetings between the FDA and
the Company.  The letters also state the panel wants to know "whether
the FDA has had contact with the SEC on the ImClone/Erbitux matter,
and, if there was contact, appropriate details about the nature of the
contact."

Because of his role in the fiasco, COO Harlan Waksal might resign from
the Company.  He has been criticized for his role in the application,
and has come under fire for selling $50 million of his Company stock
just three weeks before the FDA rejection.  Investors have alleged that
Mr. Waksal benefited from insider information, despite explanations
from the Company that he needed to sell the stock to pay taxes.

News of the Congressional inquiry caused shares to fall even lower last
week to $19.28.

The Company, Bristol-Myers and the FDA have until the end of January to
comply with the requests.  In a statement ImClone said it will
cooperate with the investigation.


LIBERTY MEDIA: Shareholders Sue To Block Merger With Liberty Digital
--------------------------------------------------------------------
Liberty Media Group faces a class action suit pending in Denver County
District Court, in the State of Colorado, challenging the proposed
merger of the Company with Liberty Digital, Inc., on behalf of all
public shareholders of Liberty Digital.

The suit names both Companies, CEO John C. Malone and the directors of
Liberty Digital as defendants and alleges that the proposed transaction
is in breach of various fiduciary duties of the defendants to the
public shareholders of Liberty Digital.  The suit alleges that the
value of the consideration offered by Liberty Media for the public
shares of Liberty Digital is too low.

Discovery has not yet begun in this case. The parties have agreed that
following the filing of the registration statement of which this
notice/prospectus forms a part, the plaintiffs will determine whether
to proceed with their current complaint or to amend the complaint, and
whether to seek a preliminary injunction.

The Company denied all of the plaintiffs' claims and intends to defend
the litigation vigorously regardless of the course of action pursued by
the plaintiffs.


LITTLE SWITZERLAND: Delaware Court Approves $1.5M Settlement
------------------------------------------------------------
The US District Court for the District of Delaware gave final approval
to the settlement of a securities class action filed against Little
Switzerland, Inc. and certain of its former officers and directors for
violations of federal securities laws.  The court also entered an order
of final judgment and dismissal of the suit.

The original suit, which also names Destination Retail Holdings
Corporation (DRHC) and Stephen G.E. Crane, alleges that the defendants
violated federal securities laws by failing to disclose that DRHC's
financing commitment to purchase the Company's shares expired on April
30, 1998, before the Company's stockholders were scheduled to vote to
approve the proposed merger between the Company and DRHC at the May 8,
1998 special meeting of stockholders.

In connection with the settlement, the Company agreed to deposit
$1,050,000 into an escrow account. As previously reported, this
settlement amount was paid from the proceeds of the Company's existing
insurance coverage.  The Court also confirmed that the settlement of
the suit is not to be construed as an admission of any liability or
wrongdoing whatsoever by the Company and the other defendants in the
class action.

Little Switzerland, Inc. is a specialty retailer of luxury items
operating 18 distinctively designed retail stores on five Caribbean
islands and in Alaska.


WESTERN SAVINGS: Settling Securities Suits in Arizona Federal Court
-------------------------------------------------------------------
Western Savings and Loan Association agreed to settle two securities
class actions pending in the United States District Court for the
District of Arizona against the Company and its officers and directors
on behalf of purchasers of its common stock between February 21,1986 to
June 14,1989.

The Company will settle two suits: the first filed by Streich Lang, PA
and Deloitte & Touche USA LLP; the second by lead plaintiff Gary H.
Driggs which was preliminarily approved by the Court in July 1995.

The settlement hearings will be held in the Arizona federal court on
March 18, 2002 to determine:

     (1) whether the proposed settlement is in good faith; and

     (2) whether the proposed plan of allocation for the two settlement
         funds, should include attorney's fees and the reimbursement of
         costs and expenses incurred in connection with the suits.


                              *********


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
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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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