CAR_Public/020128.mbx                C L A S S   A C T I O N   R E P O R T E R
  
                Monday, January 28, 2002, Vol. 4, No. 19

                            Headlines


CALIFORNIA: Superior Court Nixes Move To Dismiss Suit v Gas Agency
CALIFORNIA: CYA Wards Sue Alleging Inhumane Treatment in Sacramento
CONCORD EFS: To Defend Against Suit For Improper Rates in Tennessee
FLORIDA: Official Claims Cover-up Over Firefighters' Medical Tests

GEORGIA POWER: Hangman's Nooses Found At Plant After Court Rejects Suit
INDIAN FUNDS: Native Americans Want Fund Placed Into Receivership
MARYLAND: Baltimore Agency Faces Suit For Unfair Treatment of Disabled
OASIS FORD: Auto Registration Overcharging Suit Reaches Settlement
VALUE CITY: Recalls 2,300 Gel Candle Kits For Fire and Burn Hazard
VALUE CITY: Recalls 6,400 Botanical Candles For Fire and Burn Hazard

                        Securities Fraud

ARTHUR ANDERSEN: Will Probably Settle Racketeering Suits, Experts Say
DIGITAL ISLAND: Charles Piven Commences Securities Suit in Delaware
DIGITAL ISLAND: Wolf Haldenstein Commences Securities Suit in Delaware
GLOBIX CORPORATION: Schiffrin Barroway Files Securities Suit in S.D. NY
GLOBIX CORPORATION: Wolf Haldenstein Lodges Securities Suit in S.D. NY

IMCLONE SYSTEMS: Berger Montague Commences Securities Suit in S.D. NY
MILBERG WEISS: Faces Investigation For Alleged Securities Suits Scheme
NUKO INFORMATION: $500T Settlement Reached In N.D. CA Securities Suit
PDI INC.: Berger Montague Initiates Securities Fraud Suit in New Jersey
RHYTHMS NETCONNECTION: Schiffrin Barroway Files Securities Suit in CO

SUPREMA SPECIALTIES: Cauley Geller Commences Securities Suit in NJ
SUPREMA SPECIALTIES: Berman DeValerio Commences Securities Suit in NJ
SUPREMA SPECIALTIES: Schiffrin Barroway Commences Securities Suit in NJ
SUPREMA SPECIALTIES: Schatz Nobel Commences Securities Suit in NJ
SYNSORB BIOTECH: US Investors Rap Biotech Firm for False Statements
VAN WAGONER: Schiffrin Barroway Commences Securities Suit in E.D. WI
                             
                            *********

CALIFORNIA: Superior Court Nixes Move To Dismiss Suit v Gas Agency
------------------------------------------------------------------
The class action against the Gas Department of Long Beach could now
proceed unhindered, as the Los Angeles Superior Court denied last week
a motion to dismiss it, the Los Angeles Times says.

The suit questions the excessive natural gas rate increase imposed on
Long Beach City residents since December 2000.  Plaintiffs claim the
hikes, especially the 600% increase at the height of the energy crisis
last year, were illegal.

According to the report, the gas department raked in a total of $38
million in excess of prevailing local rates, violating the City's own
charter rules designed to protect residents against excessive gas
costs.  

Superior Court Judge Charles W. McCoy Jr. certified the suit as a class
action two weeks ago.


CALIFORNIA: CYA Wards Sue Alleging Inhumane Treatment in Sacramento
-------------------------------------------------------------------
Eleven wards of the California Youth Authority (CYA) have initiated a
class action in Sacramento Federal Court alleging that the conditions
within the CYA are inhumane, unconstitutional and violate the Americans
with Disabilities Act. The lawsuit is the first comprehensive general
conditions case to be filed against the CYA.

The suit alleges that inhumane conditions now pervade the entire CYA
system, once considered a model for the nation, housing over 6,000
juveniles. The suit includes among its claims:

     (1) the condition of the physical facilities in many of the
         facilities is deplorable;

     (2) cages are often used as classrooms;

     (3) school often is the exception rather than the rule;

     (4) wards are forcibly injected with mind altering drugs to
         control their misbehavior;

     (5) wards live in fear of physical and sexual violence;

     (6) mental health care is virtually non-existent for most of the
         population; and

     (7) wards with disabilities do not receive appropriate
         accommodations, including special education.

The suit seeks a court order directing state officials to make
reasonable, prompt and sustained efforts to fix the unlawful conditions
as soon as possible.  Attorney for the plaintiffs, Richard B. Ulmer
asserts, "It is a tragedy that such a wealthy state has neglected the
basic needs of troubled young people for so long.Not only does this
harm our youth, but when the CYA cannot fulfill its mission to
rehabilitate, the entire society suffers."

Plaintiff Chris Stevens has been subject to brutal sexual assaults at
two CYA institutions. When he sought help from the CYA, staff chastised
him for making "frivolous" complaints, wrote him up for a rule
violation and disclosed his complaint to other wards.  He was also beat
up by his attacker again several days later.

Another plaintiff, Edward Jermaine Brown, was forced to live in filthy
and inhumane conditions of solitary confinement in Tamarack Lodge at
Preston for seven months. He was confined for as many as 23 to 24 hours
a day in a small cell in the dungeon-like basement of a 70-year-old
stone building. The cell's walls were splattered with dried blood and
feces from prior occupants, and its toilet did not function for days at
a time. He frequently would not eat because he only was offered
"blender meals," an indiscriminate mush made by mixing his daily food
ration all together in a blender.

Donald Specter, Director of advocacy group Prison Law Office, adds "The
CYA has been under-funded and neglected for decades. It is now as bad
or worse than some of the conditions in the adult prisons that the
courts have declared unconstitutional."  He said many of these young
wards have significant disabilities ranging from dyslexia, to deafness
to schizophrenia.

For more information, contact Richard Ulmer by Phone: 1-415-391-0600
Donald Specter by Phone: 1-415-457-9144 or Shawna Parks by Phone:
1-510-451-8644


CONCORD EFS: To Defend Against Suit For Improper Rates in Tennessee
-------------------------------------------------------------------
Concord EFS Inc. faces a $15 million class action in the Circuit Court
of Tennessee at Memphis charging the Company with imposing improper
rates and fee changes upon at least 60,000 merchants for several years,
the Memphis Business Journal reported.

The Company is currently negotiating with the plaintiffs to settle and
resolve the matter, but revealed in its disclosure to the Securities
and Exchange Commission that "substantive issues remain which preclude
settlement at this time."

The Company intends to vigorously defend against the suit.  According
to the Company, a similar complaint has been filed in St. Charles
County, Missouri but there has not been a substantial amount of
activity in that case.


FLORIDA: Official Claims Cover-up Over Firefighters' Medical Tests
------------------------------------------------------------------
An Orlando, Florida councilman is alleging that a top city official's
computer was removed to conceal evidence that the city ignored
potentially fatal health problems among some firefighters, the
Associated Press recently reported.   

Thirteen firefighters had filed a class action against the city,
accusing the city officials of hiding evidence of illnesses, discovered
during the firefighters' routine job physicals.  A judge dismissed the
lawsuit, but not on the merits.  The suit was dismissed on a
technicality, which lends importance to discovery of a "smoking gun."

Councilman Don Ammerman said that he met secretly with Mark Munsey,
head of the City's Risk Management Department, several months ago.  Mr.
Ammerman said that Mr. Munsey told him City Hall records substantiate
allegations that Orlando's firefighters were mistreated at the city
medical clinic.  Mr. Ammerman added that Mr. Munsey wouldn't reveal
what records he was talking about.  However, he claimed his office
computer had been removed to cover up information damaging to the City.  
"He was nervous, he was fidgety," the councilman said.  "He was very
concerned that he was going to `take the fall' for the whole thing."

Orlando's firefighters have accused Mr. Munsey's department of
concealing records that would prove city doctors failed to tell them
about serious medical problems.  Mr. Ammerman said he advised Mr.
Munsey to go public, and is revealing the conversation now because that
didn't happen.

Mr. Munsey denied all of Mr. Ammerman's allegations in a memo he
released recently.  "Regarding the removal of my computer, this is
absolutely not true, and I never indicated such to any person," Mr.
Munsey wrote.  Susan Blexrud, a spokeswoman for Orlando Mayor Glenda
Hood, said that city officials have verified that Mr. Munsey's computer
was never taken.

Steve Clelland, President of the firefighters' union, said Mr. Munsey
made similar claims to him at about the same time.  "He gave me slight
hints, saying that the documents are there," Mr. Clelland said.  "The
union spent about $1,5 00 on copies of public records based on that,
but we didn't know what to look for.  We never found the smoking gun."

Councilman Ammerman's allegations come a month after the firefighter's
union filed a grievance accusing the city of denying medical tests to
members who are splashed with blood or other bodily fluids during
emergency calls.  Union leaders said firefighters may have waited years
to be diagnosed because of the lack of testing.  Some of the
firefighters suffer from hepatitis C and heart and lung disorders.


GEORGIA POWER: Hangman's Nooses Found At Plant After Court Rejects Suit
-----------------------------------------------------------------------
After a federal judge rejected class certification for a lawsuit filed
Georgia Power Company for racial discrimination, the Company announced
that the workers at one of its power plants found five hangman's
nooses, the Associated Press reports.

The new nooses were found by workers of outside contractors at the
company's Roopville plant, located about 50 miles southwest of Atlanta,
between September 2001 and January 13, 2002, Company spokesman John
Sell said.  He said a $5,000 reward was offered for information about
the origin of the nooses.

Seven workers filed the suit, alleging the Company maintained
discriminatory employment, personnel and human resources policies and
failed to remove pictures of nooses in the company's operating
headquarters at Cornelia.  A federal judge dismissed the plaintiffs'
motion for class action status for 2,400 past and present black
workers.

Mr. Sell also said that the Company and the two largest contractors on
the site, Fluor Corporation and Zachary Construction Corporation, have
had meetings with their employees to reiterate Georgia's no-tolerance
policy toward racial harassment.  The attorney for the plaintiffs in
the racial-bias suit, Steven Rosenwasser, told The Atlanta Journal-
Constitution the intrusion of the nooses indicates the need for
continued oversight.


INDIAN FUNDS: Native Americans Want Fund Placed Into Receivership
-----------------------------------------------------------------
Plaintiffs in the class action against the US Department of the
Interior, over the mismanagement of Indian royalties, have asked
Federal Judge Royce Lamberth to place the Indian trust fund into
receivership, since the government agency has left the fund in
disarray.

The trust fund was created in 1887 to administer royalties on mining,
grazing and logging on American Indian lands.  Last year, thousands of
Native American tribal members filed a class action against the
Interior Department and Secretary Gale Norton, claiming mismanagement
of the fund caused it to lose at least $10 billion.

The agency has since been unable to account for the missing funds and
an exasperated Judge Lamberth held Ms. Norton in contempt.  Last month,
the Court discovered that the accounting system responsible for fund
management was easily accessible through the Internet, making it a
prime target for hackers.  The Court immediately ordered that the
systems be disconnected from the Internet.

Last November, Ms. Norton proposed a remedy, put all the trust fund
duties, now spread among several offices but primarily entrusted to the
Bureau of Indian Affairs, into a new Bureau of Indian Trust Asset
Management, the Washington Post reports.

Native Americans did not like the proposal. They viewed the formation
of a new bureau as the weakening of the Bureau of Indian Affairs (BIA).
Despite any complaints Indians may have about BIA operations, the
agency has become the symbol of the government's commitment to a
sovereign Indian Country.

Tex Hall, President of the National Congress of American Indians, told
Ms. Norton at a meeting in Albuquerque, "Creating a new agency doesn't
create reform," according to a Washington Post report.  Elouise Cobell,
member of the Blackfeet tribe in Montana, asserts, "It's just another
stall tactic to divert attention off the real issue.I'm totally opposed
to the creation of a new bureau. All you'll do is you have the same
people involved in trust reform now, and they're not doing the right
thing."

It is assumed that what angered the Native Americans the most is that
Ms. Norton failed to consult them before coming up with a plan.  "It's
a permanent shifting of the government-to-government relationship,"
said Keith Harper, a lawyer with the Native American Rights Fund,
representing the plaintiffs in the lawsuit.

Interior officials believe what Ms. Norton is proposing will not
eliminate or dilute the BIA, but will rationalize the welter of Indian
programs.  They add it makes sense to consolidate the trust functions
in a single entity because money and personnel would move from the BIA
and the special trustee's office to BITAM. A new Assistant Secretary
for Indian Trust Asset Management would oversee the daily management of
1,400 tribal accounts and at least 300,000 individual trust accounts.

The new bureau is needed, Ms. Norton said, "to ensure that we move
forward in the management of Indian trust reform."  


MARYLAND: Baltimore Agency Faces Suit For Unfair Treatment of Disabled
----------------------------------------------------------------------
The Housing Authority of Baltimore faces a class action filed in the
United States District Court for the Northern District of Baltimore,
Maryland for allegedly treating disabled individuals unfairly,
according to the Baltimore Business Journal.

The suit charges the city agency with violating the federal Fair
Housing Act by denying housing to people with physical handicaps and by
not taking steps to make the city's public housing developments
handicapped-accessible.

The lawsuit seeks an unspecified amount in compensatory and punitive
damages from the city, and is being spearheaded by the Maryland
Disability Law Center.


OASIS FORD: Auto Registration Overcharging Suit Reaches Settlement
------------------------------------------------------------------
New Jersey car dealer, Oasis Ford, has agreed to settle for a potential
$2.8 million, a former customer's class action suit. The customer
claims that he was charged double what the State would have charged to
register his vehicle with the Division of Motor Vehicles, the Newark
Star-Ledger recently reported.   

Paul Favorito, 43, filed the suit, in Superior Court in New Brunswick,
seeking repayment for himself and all other customers similarly
circumstanced.

The plaintiff refused a $600-settlement offer from the defendant,
insisting that the other customers deserved to get their money back
too.  After two years of litigation, the Company agreed last week to
settle the case and issue refunds to the estimated 17,500 customers who
purchased or leased cars from the Company between December 1993 and
June 2001, a total potential cost of $2.8 million.

David Epstein of Red Bank, the attorney for Oasis Ford, said the
Company did not admit any guilt or liability as part of the settlement.
Instead, attorneys said, the Company agreed to mail vouchers, for $60
cash or a $250 credit toward another purchase at Oasis, to all
customers who bought or leased cars in the past six years.  The
vouchers are valid for two years and can be used by the customer, given
away or donated to charity.

Ron Rosen, who owns the Route 9 dealership with his brother and sister,
said the extra charges were an oversight.  "We feel embarrassed.  We
don't want anyone to feel we were doing anything underhanded," said Mr.
Rosen, whose family has operated the dealership for 40 years.  "It was
a mistake on our part, and we want to make our customers whole."  Mr.
Rosen added that since Mr. Favorito first complained, his sales
managers at the Company, one of the largest Ford dealerships in New
Jersey, have calculated the exact price to register each vehicle.

It is not unusual for car dealerships to estimate registration costs,
or to tack on extra service or processing fees. The practice is not
illegal,  industry experts said.  However, from the day the class
action was filed, the state's 650 new car and truck dealers were
reminded, via an industry newsletter, that registration fees should be
exact, said James Appleton, Director of the New Jersey Coalition of
Automotive Retailers.  Mr. Appleton said the Company has an impeccable
reputation, and is being held responsible for an innocent mistake.

"Buying a car is a complicated process and consumers must educate
themselves," said Phyllis Salowe-Kaye, Executive Director of NJ Citizen
Action, a consumer watchdog group.  "Nobody wants to go to DMV and
stand in line, so it's a great service that dealers provide.but what
appears to the consumer to be a convenience can end up being a scam."


VALUE CITY: Recalls 2,300 Gel Candle Kits For Fire and Burn Hazard
------------------------------------------------------------------
Value City and Schottenstein stores is cooperating with the US Consumer
Product Safety Commission (CPSC) by voluntarily recalling about 2,300
children's gel candle kits.  When burned, the gel candle can melt the
plastic candleholders included with the kit, posing a fire hazard to
consumers.  The CPSC has received two reports of consumers claiming the
plastic candleholder melted and started a fire. One report involved
substantial damage to the consumer's home, and a consumer reportedly
suffered burns to his hands and feet. The other report involved minor
damage to furniture.

The Gel Candles kit includes four bags of gel chips in bright colors,
wicks, glitter, two glass holders, and two plastic candleholders. The
candleholders are in the shapes of a bumblebee and a dragonfly, or a
tulip and a daisy. The gel is scented in fruit flavors.  The kits have
model numbers "3041" or "3042" written on the box. Other writing on the
box includes, "Express Ways!TM Gel Candles." "Scent-sational Colored
Gel!" and "AGES 8 AND OLDER."

Value City and Schottenstein discount stores nationwide sold these
gel candle kits from July 2001 through December 2001 for about $4.

For more information, contact the Company by Phone: (888) 870-9181
between 8 am and 5 pm ET Monday through Friday, or go to the firm's
Website: http://www.valuecity.com.


VALUE CITY: Recalls 6,400 Botanical Candles For Fire and Burn Hazard
--------------------------------------------------------------------
Value City and Schottenstein Stores is cooperating with the US Consumer
Product Safety Commission (CPSC) by voluntarily recalling about 6,400
botanical candles, which contain dried flowers. When burned, the dried
flowers in the candle can catch on fire, posing fire and burn hazards
to consumers.  The Company has received one report of the flowers in
these candles catching on fire. No injuries or damage was reported.

The candles are made of uncolored wax and have dried yellow, purple and
brown flowers in the outer layer. The candles are either square or
round, and are about 4-inches high by 4-inches wide.

The Company's discount stores sold these candles nationwide from
January 2001 through December 2001 for about $4.  For more information,
contact the Company by Phone: 888-278-6370 or visit the firm's Website:
http://www.valuecity.com.


                            Securities Fraud

ARTHUR ANDERSEN: Will Probably Settle Racketeering Suits, Experts Say
---------------------------------------------------------------------
Accounting firm Arthur Andersen LLP will end up settling numerous class
actions brought against them for their role in the collapse of energy
giant Enron Corporation, if it hopes to survive, legal experts said.

Andersen has been badly hit by Enron's collapse as investigations
turned up evidence that it approved questionable accounting practices
that allowed Enron to use hundreds of ghost partnerships to hide debt
or generate questionable profits.  This month, Andersen admitted to
having destroyed documents relating to Enron's collapse - a development
that has worsened the case against them.  Enron employees have filed
lawsuits, having lost their life savings after they invested in Enron
stock. They are alleging Andersen broke federal racketeering laws.

Enron's shareholders and employees are looking to Andersen for
compensation. Reuters reports the accounting firm's exposure has grown
significantly because Enron's December 2 bankruptcy filing has stayed
all litigation against the fallen energy company.  Marc Galante, a law
professor at the University of Wisconsin, says, "Clearly Arthur
Andersen is a nice deep pocket."

Mr. Galanter also pointed out most class actions do not go to trial, as
defendants often choose to settle cases for a lump sum.  They
reportedly see settlement as a way to avoid costly litigation.  
Although plaintiffs can opt out of a settlement, the majority of them
usually participate.

Some experts believe that Andersen must move quickly to forge a deal to
minimize liability and quickly restore confidence in the firm.  While
the insurance amount is confidential, insurance sources have told
Reuters they think Andersen has a maximum of $500 million in
professional liability coverage in the commercial market plus funds
held in several self-owned Bermuda insurance entities.

However, some lawyers believe the pay out of a huge settlement may not
be Andersen's biggest problem.  Stephen Younger of Patterson, Belknap,
Webb and Tyler, told Reuters, "It's not a question of money, but of the
credibility of the firm."


DIGITAL ISLAND: Charles Piven Commences Securities Suit in Delaware
-------------------------------------------------------------------
The Law Offices Of Charles J. Piven, PA initiated a securities class
action on behalf of shareholders who acquired Digital Island, Inc.
(Nasdaq:ISLD) securities between May 14, 2001 and August 30, 2001,
inclusive, in the United States District Court for the District of
Delaware, against the Company and:

     (1) Cable & Wireless, PLC,

     (2) Dali Acquisition Corporation,

     (3) Ruan F. Ernst, CEO,

     (4) certain members of the Company's board of directors during the
         proposed class period

The suit charges that defendants violated sections 14(a), 14(e),
14(d)(7) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule
14d-10 promulgated thereunder, by failing to disclose material
information to Company shareholders who had received an offer to
purchase from defendant Cable & Wireless in May and June 2001, and to
those Company shareholders who received a proxy statement in connection
with the merger between the Company and Cable & Wireless, which was
consummated on August 30, 2001.

For more information, contact Charles Piven by Mail: The World Trade
Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore,
Maryland 21202 by Phone: 410-986-0036 or by E-mail:
hoffman@pivenlaw.com


DIGITAL ISLAND: Wolf Haldenstein Commences Securities Suit in Delaware
----------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class
action in the United States District Court for the District of Delaware
on behalf of holders of Digital Island, Inc. (NASDQ: ISLD) common stock
between May 14, 2001 and August 30, 2001, inclusive, against the
Company and:

     (1) Cable & Wireless PLC,

     (2) Dali Acquisition Corporation,

     (3) Ruan F. Ernst, CEO and

     (4) members of the Company's board of directors during the class
         period

The suit alleges that defendants violated sections 14(a), 14(e),
14(d)(7) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule
14d-10 promulgated thereunder, by failing to disclose material
information to those Company shareholders who had received an offer to
purchase from defendant Cable & Wireless in May and June 2001, and to
those Company shareholders who received a proxy statement in connection
with the merger between the Company and Cable & Wireless, which was
consummated on August 30, 2001.

In particular, defendants failed to disclose important contracts
between the Company and Bloomberg, LLP, and the Company and Major
League Baseball's Internet media. Those contracts were not disclosed
either in the offer to purchase or the proxy statement. Defendants also
violated the all-holders provision of the Williams Act by giving
additional consideration to directors and officers of the Company, who
were also shareholders, in excess of that given to other Company
shareholders as an inducement to support Cable & Wireless' offer to
purchase.

For more information, contact Jeffrey G. Smith, Robert Abrams, 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 Digital Island.  


GLOBIX CORPORATION: Schiffrin Barroway Files Securities Suit in S.D. NY
-----------------------------------------------------------------------
Schiffrin and Barroway LLP initiated a securities class action against
Globix Corporation (Nasdaq:GBIX) claiming that the company violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder, in the US District Court for the
Southern District of New York. The suit seeks damages on behalf of all
investors who bought the Company's securities between January 6, 2000
and April 2, 2001.

The suit alleges that the New York-based Company, on November 16, 2000,
set-forth its business plan which stated in no uncertain terms that it
would be fully funded to fiscal 2003 and thereafter cash flow positive.
This sentiment was repeated in its annual report filed on Form 10-K
with the SEC and thereafter in Company press releases and conference
calls.

Despite such assurances, on December 27, 2001, defendants announced
that management had been secretly negotiating with its bondholders and
preferred stockholders 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 Schiffrin & Barroway by Phone:
888-299-7706 (toll free) or 610-822-2221 by Fax: 610-822-0002 by E-
mail: info@sbclasslaw.com or visit the firm's Website:
http://www.sbclasslaw.com.


GLOBIX CORPORATION: Wolf Haldenstein Lodges Securities Suit in S.D. NY
----------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class
action in the United States District Court for the Southern District of
New York on behalf of holders of Globix Corporation (Nasdaq: GBIX)
common stock between November 16, 2000 and December 27, 2001 inclusive,
against the Company and:

     (1) Marc Bell,

     (2) Peter Herzig and

     (3) Brian Reach

The suit alleges that defendants violated sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated
thereunder, by deceiving the investing public, artificially inflated
and maintained the market price of the Company and caused members of
the class to purchase Company securities at inflated prices.

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 its 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 Fred T. Isquith, Gregory Nespole, Thomas
Burt, 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 Globix Corporation.  


IMCLONE SYSTEMS: Berger Montague Commences Securities Suit in S.D. NY
---------------------------------------------------------------------
Berger & Montague, PC initiated a securities class action against
ImClone Systems, Inc. (Nasdaq:IMCL) and two of its principal officers
in the United States District Court for the Southern District of New
York, on behalf of all persons or entities who purchased the Company's
common stock during the period from May 12, 2001 through January 7,
2002.

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and SEC Rule 10b-5 by making false
and misleading statements regarding its lead cancer drug, ERBITUX or
IMC-C225 and the prospects for near-term approval of that drug for the
treatment of colorectal cancer by the US Food and Drug Administration.  
Among other things:

      (1) defendants repeatedly represented that ERBITUX was a
          blockbuster drug that would become "one of the important new
          drugs in the history of oncology;"

     (2) defendants told investors that ERBITUX would "be on the market
         next year" for the treatment of colorectal cancer, and that
         they were confident that the drug would be evaluated at the
         February 2002 meeting of the FDA Advisory Committee, stating:  
         "We believe we'll be before the FDA Oncology Drug Advisory
         Committee in February and the drug should be approved shortly
         thereafter;"

     (3) defendants represented that the results of the Company's
         clinical trial of ERBITUX in the treatment of patients with
         colorectal cancer produced results that exceeded FDA
         requirements

The suit alleges that these statements were materially false and
misleading because, among other things:

      (i) contrary to directives to the Company by the FDA, the trial
          was not designed to demonstrate that ERBITUX was responsible
          for the reported results;

     (ii) the clinical trial on which the application was based was
          seriously flawed by the protocol violations, and was not
          "adequate and well controlled;" and

    (iii) the safety database for the trial was incomplete and
          contained inconsistencies and discrepancies.

As such, defendants knew or should have known that the FDA would refuse
to file the Company's defective application, which would have a
disastrous effect on the price of the Company's stock.

The suit further alleges that defendants made these false and
misleading statements, in part, in order to convince Bristol-Myers
Squibb Co. to purchase $1 billion of Company stock, of which
approximately $150 million was tendered by Company insiders, including
the individual defendants, and to persuade Bristol-Myers to make an
additional $1 billion cash investment in the Company.

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. Company shares
plummeted $11.15, or 20%, to $44.10. On January 4, 2002, a publication
known as The Cancer Letter reported that the FDA repeatedly informed
ImClone about the problems with the clinical trials during and before
the Class Period. After these additional facts were disclosed, the
price of Company stock fell further to open on January 7, 2002 at
$34.96 per share. On January 9, 2002, the Company issued a press
release that admitted that the Company "may need to conduct new trials
of.ERBITUX, potentially delaying the treatment's launch by months."

For more information, contact Sherrie R. Savett, Douglas M. Risen, or
Kimberly A. Walker by Mail: 1622 Locust Street, Philadelphia, PA 19103
by Phone: 888-891-2289 or 215-875-3000 by Fax: 215-875-5715 by E-mail:
InvestorProtect@bm.net or visit the firm's Website:
http://www.bm.net


MILBERG WEISS: Faces Investigation For Alleged Securities Suits Scheme
----------------------------------------------------------------------
High profile class action law firm Milberg Weiss Bershad Hynes and
Lerach faces an investigation by the US Attorney's office in Los
Angeles over claims that it is involved in a scheme to solicit
investors and fabricate shareholder plaintiffs in securities suits, Dow
Jones News reports.

The Los Angeles Daily Journal, citing unnamed sources, revealed that a
federal grand jury investigation is under way and that the Attorney's
office has issued subpoenas to stockbrokers at major brokerage firms to
testify about providing the firm with investor names.

The firm has not commented on the issue, while the US Attorney's office
declined to make any comments, according to Dow Jones.


NUKO INFORMATION: $500T Settlement Reached In N.D. CA Securities Suit
----------------------------------------------------------------------
Nuko Information Systems, Inc. will settle for $500,000 a class action
suit pending in the United States District Court for the Northern
District of California, where it is named as a nominal defendant along
with John H. Gorman and Pratap K. Kondamoori.  The suit was filed on
behalf of purchasers of the Company's stock between April 24, 1997 and
May 21, 1997, inclusive, alleging federal securities laws.

The settlement resolves all claims that were asserted or could have
been asserted against defendants and certain related entities in this
suit.  A hearing will be held on March 25, 2002 in the United States
District Court for the Northern District of California to:

     (1) determine whether the settlement is fair, reasonable and
         adequate and should be approved and, therefore, whether the
         suit should be dismissed on the merits and with prejudice and
         without costs; and

     (2) to consider the reasonableness of an application by lead
         counsel for an award of attorney's fees and reimbursement of
         expenses incurred in prosecuting the suit.

For more information, contact Complete Claim Solutions, Inc. by Mail:
319 Clematis Street, Suite 521, West Palm Beach, Florida 33401 or by
Phone: (800) 930-0057 or Jonathan M. Plasse or David J. Goldsmith of
Goodkind Labaton Rudoff & Sucharow LLP by Mail: 100 Park Avenue, New
York, New York 10017-5563


PDI INC.: Berger Montague Initiates Securities Fraud Suit in New Jersey
-----------------------------------------------------------------------
Berger & Montague, PC commenced a securities class action against PDI,
Inc. (Nasdaq: PDII) and two of its principal officers in the United
States District Court for the District of New Jersey, on behalf of all
persons or entities who purchased Company securities during the period
from May 22, 2001 through November 12, 2001.

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and SEC Rule 10b-5 by making false
and misleading statements regarding the financial effects of:

     (1) the Company's contract with Novartis for promotion of a
         hypertension drug, and

     (2) termination of its contract with GlaxoSmithKline (GSK) for the
         exclusive distribution of an antibiotic.

Among other things, defendants told investors that:

     (i) the Novartis contract would produce earnings of $0.25 per
         share in the fourth quarter of 2001;

    (ii) despite impending generic competition for the GSK antibiotic,
         the GSK contract would, at worse, produce earnings of $0.35-
         $0.40 in the fourth quarter of 2001, and $0.30 per share in
         2002;

   (iii) if the $0.30 per share earnings contribution from the GSK
         contract was not assured, the Company would cancel the
         contract.

The suit alleges that these statements were materially false and
misleading because, among other things:

     (a) earnings from the Novartis contract would remain unprofitable
         until the Company completed marketing activities which, as
         its experience demonstrated, could not be completed until well
         into the fourth quarter of 2001; and

     (b) undisclosed minimum purchase requirements of the GSK contract
         were such that the contract could not produce earnings at or
         near $0.30 per share in 2002, that the Company would be forced
         to terminate the contract, which would result in tens of
         millions of dollars of losses in the fourth quarter of 2001,
         and no earnings from that contract in 2002.

In November 2001, the Company shocked the market by issuing a press
release that contrary to its prior representations, the Company
suffered a loss of $17.3 million and $1.24 per share in the third
quarter of 2001, and expected further losses in the fourth quarter.

In the November 12 press release and a November 13 conference call, the
Company revealed that these losses were due to the need to terminate
the GSK contract and the fact that marketing activities for the
Novartis contract had not been and would not be completed soon enough
for that contract to produce earnings in the fourth quarter of 2001.

For more information, contact Sherrie R. Savett, Carole A. Broderick or
Kimberly A. Walker by Mail: 1622 Locust Street, Philadelphia, PA 19103
by Phone: (888) 891-2289 or (215) 875-3000 by Fax: (215) 875-5715 by E-
mail: InvestorProtect@bm.net or visit the firm's Website:
http://www.bergermontague.com


RHYTHMS NETCONNECTION: Schiffrin Barroway Files Securities Suit in CO
---------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the US
District Court for the District of Colorado against Rhythms
NetConnections, Inc. (Nasdaq:RTHMQ) on behalf of purchasers of the
Company's securities from January 6,2000 and April 2,2001.  

The suit alleges the defendants issued false and misleading statements
concerning its business and financial condition, and seeks damages for
violations of Sections 10(b) and 20(a) of the Securities Exchange Act
of 1934.

The suit alleges that the Colorado-based Company portrayed itself as a
fast-growing and expanding provider of DSL services and repeatedly
represented that it could continue to expand its broadband network
throughout the United States and reassured investors that it was
financially able to continue this expansion.

As alleged in the suit, defendants' statements issued throughout the
class period were materially false and misleading when made as they
failed to disclose the following adverse facts which were then known to
defendants or recklessly disregarded by them:

     (1) that the Company lacked the financial resources necessary to
         execute its business plan of a full national network
         expansion;

     (2) that the Company's efforts to scale back its expansion plans
         were not meeting with success as the Company was unable to
         generate the necessary financing;

     (3) that the Company was not well-funded or well-positioned to
         continue its growth, as its expenses, including its ongoing
         debt payment obligations, were far outpacing its revenues and
         rapidly depleting the Company's cash reserves;

     (4) that the Company did not have adequate cash reserves and was
         not sufficiently "stable" and "financially strong" that it
         would be able to fund its operational needs into the first
         quarter of 2002, as defendants repeatedly promised investors -
         defendants were not even able to keep the Company running
         though 2001, as it had earlier guaranteed; and

     (5) that without the influx of additional capital, the Company
         would be forced to seek bankruptcy protection, which would
         render Company stock worthless.

While in possession of the true facts about the Company and its
business, the individual defendants and other Company insiders
collectively sold 600,000 shares of the Company's common stock for
gross proceeds in excess of $16 million and the Company raised hundreds
of millions of dollars in preferred stock sales and debt issuances.

For more information, contact Marc A. Topaz or Stuart L. Berman by
Phone: 888-299-7706 (toll free) or 610-822-2221 by Fax: 610-822-0002 by
E-mail: info@sbclasslaw.com or visit the firm's Website:
http://www.sbclasslaw.com.


SUPREMA SPECIALTIES: Cauley Geller Commences Securities Suit in NJ
------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP initiated a securities class action
in the United States District Court for the District of New Jersey on
behalf of purchasers of Suprema Specialties Inc. (Nasdaq: CHEZ)
publicly traded securities during the period between August 8, 2001 and
December 21, 2001, inclusive.

The suit charges the Company, Mark Cocchiola (CEO and President) and
Steven Venechanos (CFO) 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.

During the class period, defendants issued quarterly and annual press
releases, and filed reports with the Securities and Exchange Commission
(SEC) which favorably portrayed the Company's business and financial
performance. The representations in the press release were, according
to the allegations of the complaint, materially false and misleading
because the Company was using questionable accounting practices in
reporting its financial performance, which distorted its reported
financial statements.

In November 2001, the Company commenced a secondary offering of common
stock, pursuant to a prospectus and registration statement filed with
the SEC and containing allegedly misleading financial statements. In
the secondary offering, the Company, Mr. Cocchiola and Mr. Venechanos,
and others, sold a total of 4,050,000 shares at a price of $12.75 per
share.

Subsequently, on December 21, 2001, only weeks after the secondary
offering, the Company issued a press release announcing that it is
conducting an internal investigation into its previously filed
financial statements, and that Mr. Venechanos has resigned from his
position as the Company's CFO.

Immediately after this announcement, the Nasdaq Stock Market halted
trading in Company stock, pending its receipt of additional information
on the matter. The Company stock has not resumed trading over the
Nasdaq Stock Market.

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


SUPREMA SPECIALTIES: Berman DeValerio Commences Securities Suit in NJ
---------------------------------------------------------------------
Berman DeValerio Pease Tabacco Burt and Pucillo initiated a securities
class action against Suprema Specialties, Inc. (Nasdaq:CHEZ) an six of
its top officers and directors, in the US District Court for New
Jersey.

The suit was filed on behalf of purchasers of the Company's securities
from August 8,2001 through December 21,2001, accusing the company of
misleading the public about its financial results.  The suit alleges
the defendants inflated the Company's stock price during the class
period by issuing false and misleading statements about its finances.

According to the lawsuit, the deception began in August 2001 when
company announced "record" results for the fourth quarter and year-end
of 2001. In September 2001, the Company filed statements with the U.S.
Securities and Exchange Commission saying it was issuing 3.5 million
shares of stock to the public. The complaint says that two of the
individual defendants reaped more than $4.6 million from sales of their
shares at that time. Then, in November 2001, the Company again
trumpeted its results for the first quarter of 2002, the complaint
alleges.

Just one month later, the plaintiff says, news of the deception was
revealed. In a December 24, 2001 statement, the Company announced the
resignation of its chief financial officer and controller and said it
had begun an investigation into its past financial results. Nasdaq
halted trading in Suprema shares the same day.

For more information, contact Chauncey D. Steele IV or Michael G. Lange
by Mail: One Liberty Square Boston, MA 02109 by Phone: (800) 516-9926
by E-mail: law@bermanesq.com or visit the firm's Website: http://
www.bermanesq.com.


SUPREMA SPECIALTIES: Schiffrin Barroway Commences Securities Suit in NJ
-----------------------------------------------------------------------
Schiffrin & Barroway LLP initiated a securities class action in the
United States District Court for the District of New Jersey on behalf
of all purchasers of the common stock of Suprema Specialties, Inc.
(Nasdaq: CHEZ) from August 8, 2001 through December 21, 2001,
inclusive.  Named as defendants in the case are the Company and:

     (1) Mark Cocchiola, Chairman and CEO,

     (2) Steven Venechanos, CFO and Secretary,

     (3) Marco Cocchiola, director,

     (4) Rudolph Acosta, director,

     (5) Paul Desocia, director, and

     (6) Barry Rutcofsky

The suit charges defendants with violations of Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. The complaint alleges, among other things, that throughout
the class period defendants knowingly or recklessly disseminated
materially false and misleading statements regarding the Company's
financial condition. The following statements, among others, are
alleged to have been materially false and misleading:

     (i) August 8, 2001 and August 15, 2001 press releases announcing
         the Company's 2001 year end financial results;

    (ii) 2001 Form 10-K filed with the SEC on September 28, 2001;

   (iii) the Company's registration statement filed with the SEC on
         November 6, 2001 for the public offering of over 4 million
         shares of stock at $12.75 of which 500,000 shares were sold  
         by, among others, defendants Cocchiola and Venechanos;

    (iv) November 15, 2001 press release announcing the Company's
         results for the first quarter of 2002, ended September 30,
         2001; and

     (v) the Company's Form 10-Q for the first quarter of fiscal 2002

In each of its SEC filings, the Company assured the public that its
financials were in conformity with generally accepted accounting
principles (GAAP).  The complaint alleged that the Company's financial
statements were, in fact, not in conformity with GAAP.

On December 21, 2001 the Company announced the resignation of defendant
Venechanos, the Company's CFO, and disclosed that it had launched an
investigation into the Company's prior reported financial results. In
response to this report the Nasdaq halted trading of Company stock.

The suit further alleges that defendants' misrepresentations caused the
price of the Company's common stock to be artificially inflated
throughout the class period.

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


SUPREMA SPECIALTIES: Schatz Nobel Commences Securities Suit in NJ
-----------------------------------------------------------------
Schatz and Nobel PC initiated a securities class action in the United
States District Court for District of New Jersey on behalf of all
persons who purchased common stock of Suprema Specialties, Inc.
(Nasdaq: CHEZ) between August 8, 2001, and December 21, 2001,
inclusive.

The suit alleges that the Company, a manufacturer and seller of gourmet
Italian cheese, and several members of its top management misled the
investing public during the class period about the financial condition
of the Company. On December 21, 2001, the Company issued a press
release announcing that it was initiating an internal investigation of
its prior reported financial results and that the Company had
instructed its auditors to review the Company's financial records. As a
result of this revelation, trading of Company stock was halted by the
NASDAQ on December 21, 2001, approximately one hour after the New York
markets closed.

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.


SYNSORB BIOTECH: US Investors Rap Biotech Firm for False Statements
-------------------------------------------------------------------
US investors of Synsorb Biotech Inc. recently lodged a class action,
accusing the drug maker of issuing false and misleading statements on
its experimental Synsorb-Cd drug, a treatment for diarrhea, the
Financial Post says.

The suit, which is now pending in New York, claims that the misleading
statements effectively tricked the investors and artificially inflated
the company's share price.  The suit says the false statements were
made between April 4 and December 10 last year.  

Accordingly, said statements harped on the successful progression of
the drug's late-stage testing.  It, however, omitted a number of
deficiencies, which include, among others, inadequate enrolment and an
unacceptably high dropout rate, which were compromising the program's
success.

This suit comes barely a month after the company announced it was
stopping development of the Synsorb-Cd drug.  Company stocks have since
lost two-thirds of their value.

The Calgary-based company recently cut its work force by half to
conserve cash.  It is planning to sell its pharmaceutical manufacturing
facility and other assets, including its 6.3 million shares in
Oncolytics Biotech Inc., a company it spun off in 1999.

For more information, contact SYNSORB Biotech Inc. by Mail: 410, 1167
Kensington Crescent NW, Calgary, Alberta CANADA T2N 1X7 by Phone:
(403)283-5900 by Fax: (403)283-5907 or visit the company's Web site at
http://www.synsorb.com/main.php


VAN WAGONER: Schiffrin Barroway Commences Securities Suit in E.D. WI
--------------------------------------------------------------------
Schiffrin and Barroway LLP initiated a securities class action against
Van Wagoner Emerging Growth Fund (Nasdaq:VWEGX) alleging the Fund
issued false and misleading statements concerning its net asset value
(NAV) and performance, in the US District Court for the Eastern
District of Wisconsin.  

The suit was filed on behalf of all investors who purchased the Fund's
securities between April 28, 2000 and June 30, 2001, and 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 defendants allegedly 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:

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

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

     (3) the risk of investing in the Fund was materially understated
         as the Fund 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
Phone: 888-299-7706 (toll free) or 610-822-2221 by Fax: 610-822-0002 by
E-mail: info@sbclasslaw.com or visit the firm's Website:
http://www.sbclasslaw.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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic re-
mailing and photocopying) is strictly prohibited without prior written
permission of the publishers.

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

The CAR subscription rate is $575 for six months delivered via e-mail.  
Additional e-mail subscriptions for members of the same firm for the
term of the initial subscription or balance thereof are $25 each.  For
subscription information, contact Christopher Beard at 240/629-3300.

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