/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/020222.mbx C L A S S A C T I O N R E P O R T E R Friday, February 22, 2002, Vol. 4, No. 38 Headlines AETNA LIFE: Sued For Unlawful Insurance Sales Practices in M.D. Florida ALABAMA: Police Department Denies Racial Bias Suit Accusations ALLEGHENY HEALTH: Court Approves Settlement of Health Care Lawsuit ALPHA INTERNATIONAL: Recalls 75T Pedal Cars For Lead Poisoning Risk ANSETT AIRLINES: Former Customers Proceeding With Frequent Flyer Suit AT&T CORPORATION: Customers Sue Over Connectivity Charges in California CHICAGO HOUSING: CHA Settles For Suit Over Lead Poisoning $1.2 M CITIZENS INC.: Faces Suit For Violations of Texas Trade Practices Laws CUBA DETAINEES: Families of Australian, Brit Detainees Commence Suit HMO LITIGATION: Court Limits Racketeering Charges V. Six Companies LIFE INSURANCE: $55M Settlement Reached In Race-Based Premiums Suit RANDOM HOUSE: Recalls 39T Monsters, Inc. Books For Choking Hazard TRI-STATE CREMATORY: Faces Suit After Dumping Corpses in Its Premises UNILEVER HOME: Recalls 4M Plush Snuggle Bears For Choking Hazard Securities Fraud ARTHUR ANDERSEN: Enron-Related Settlement Figures Could Reach $600M COMCAST CORPORATION: Faces Suit Challenging AT&T Acquisition in NY ELAN CORPORATION: Berman DeValerio Lodges Securities Suit in N.D. GA ENRON CORPORATION: Congress To Probe Wall Street Firms Role in Collapse ENRON CORPORATION: Florida Considers Withdrawing From State 401(k) Suit ENRON CORPORATION: Court Lifts Stay on 401(k) Suits, To Set Trial Date GLOBAL CROSSING: Berman DeValerio Commences Securities Suit in S.D. NY GLOBAL CROSSING: Cauley Geller Commences Securities Suit in W.D. NY HANOVER COMPRESSOR: Schiffrin Barroway Files Securities Suit in S.D. TX HANOVER COMPRESSOR: Cohen Milstein Commences Securities Suit in S.D. TX HUB GROUP: Charles Piven Commences Securities Suit in N.D. Illinois HUB GROUP: Milberg Weiss Commences Securities Suit in N.D. Illinois IRVINE SENSORS: Weiss Yourman Commences Securities Suit in C.D. CA JENNY CRAIG: Shareholders File Suit Opposing ACI Capital Merger in DE JP MORGAN: Kirby McInerney Commences Securities Suit in S.D. New York NVIDIA CORPORATION: Schiffrin Barroway Files Securities Suit in N.D. CA NVIDIA CORPORATION: Charles Piven Commences Securities Suit in N.D. CA PNC FINANCIAL: Berman DeValerio Commences Securities Suit in W.D. PA SPORT-HALEY CORPORATION: Motion To Dismiss Securities Suit Pending WILLIAMS COMPANIES: Brian Barry Commences Securities Suit in N.D. OK WILLIAMS COMPANIES: Zwerling Schachter Lodges Securities Suit in OK ********* AETNA LIFE: Sued For Unlawful Insurance Sales Practices in M.D. Florida ----------------------------------------------------------------------- Aetna Life Insurance and Annuity Company faces a class action filed in the United States District Court for the Middle District of Florida, alleging that the Company engaged in unfair sales practices. Plaintiffs Helen Reese, Richard Reese, Villere Bergeron and Allan Eckert filed the suit, seeking compensatory and punitive damages and injunctive relief. The suit charges the Company with engaging in unlawful sales practices in marketing life insurance policies. The Company moved to dismiss the suit for failure to state a claim upon which relief can be granted. Certain discovery is underway. The Company intends to defend the action vigorously. The Company is confident that the suit will not result in material liability to the financial condition of the Company. ALABAMA: Police Department Denies Racial Bias Suit Accusations -------------------------------------------------------------- The Alabaster Police Department vehemently denied allegations of racial profiling in a pending $25 million federal lawsuit against former police chief Larry Rollan and current Chief Stanley Oliver, the Shelby County Reporter states. The suit, filed by Alabaster resident Kevin Mixon, alleges the department arrested blacks and Hispanics solely on the basis of their race and ethnicity. Mr. Mixon was arrested one year ago for public intoxication, but the charges were later dropped. Mr. Mixon did not file a complaint against the department. Former police chief Rollan denied the accusations, telling the Reporter, "Though I can't speak to the last nine months I can say that racial profiling was never done, allowed or tolerated during my 29-year tenure with the Alabaster Police Department." A probe conducted by the Alabama Bureau of Investigation last fall failed to find evidence of police misconduct in matters unrelated to the alleged racial profiling. Mayor David Frings' has also asked the Federal Bureau of Investigation to look into the complaints. Members of the City Council said they have not seen the suit, the Reporter states. In a Council meeting Monday night, Councilman Mike Sherwood read a personal statement thanking the City's police officers and Oliver for their continued service in the face of accusations he said were causing "unnecessary alarm and concern" among residents. "Such attempts to extort money from our city and our citizens will not go uncontested," Sherwood said, adding that he thought it telling that the lawsuit "took over a year to construct." The Reporter states that the arrest statistics released by Mayor Frings last week showed that the Alabaster police have arrested 133 black males since February 2001, compared to 239 white males. The report went on to break down arrests for black females (39) and white females (67), Hispanic males (38) and Hispanic females (1) and one Asian. ALLEGHENY HEALTH: Court Approves Settlement of Health Care Lawsuit ------------------------------------------------------------------ Pittsburgh Judge Ronald L. Buckwalter granted preliminary approval to the settlement of a lawsuit between a class of physicians and research scientists and certain former officers and trustees of AHERF (Allegheny Health Education and Research Foundation). The settlement is part of the resolution of a massive coordinated litigation, including lawsuits filed by creditors, the Pennsylvania Attorney General and hundreds of charitable endowments. After notice of the settlement is sent to the class, the Court will hold a final approval hearing on the settlement on April 8, 2002. AHERF is the now-defunct Pittsburgh-based health care provider that included MCP Hahnemann University Medical School and Hahnemann Hospital. AHERF filed for bankruptcy protection in July 1998 leaving in its wake the question of the survival of the medical school, nine hospitals and the impact on the over 300 physicians' practices owned by AHERF. Drs. Stanley Spitzer and Daniel Mason, both long-time Hahnemann cardiologists, Dr. Jerrold Schwaber, a MCP Hahnemann University professor, and Dr. Donald Fox, a medical practitioner for 40 years in Southwest Philadelphia, filed the lawsuit. Dr. Spitzer stated, "When I filed this lawsuit, no other actions had been filed against the former officers and trustees of AHERF. It was my intention to bring the possibility of claims against these defendants to the attention of other potential litigants and the appropriate governmental authorities. This goal has been accomplished as demonstrated by the $4,750,000 recovery for doctors and researchers in our Class Action. We are also very pleased that almost $30 million is being returned to the institutional endowment funds through the litigation in Pittsburgh." Nicholas E. Chimicles and Denise Davis Schwartzman of the Haverford law firm of Chimicles & Tikellis LP served as Lead Counsel for the plaintiffs. Ms. Schwartzman said, "We are very happy with the result. The legal problems we faced in this lawsuit clearly took a backseat to the economic problems, as there was just not enough money to go around to compensate all of the injured parties. We are particularly pleased that the physicians and medical school faculty in the Delaware Valley have been included in the AHERF litigation." For more information, contact Eileen Rosenau or Denise Schwartzman by Phone: 215-735-5512 or 610-642-8500. ALPHA INTERNATIONAL: Recalls 75T Pedal Cars For Lead Poisoning Risk ------------------------------------------------------------------- Alpha International, Inc. is cooperating with the US Consumer Product Safety Commission by voluntarily recalling about 75,000 pedal cars. The paint coating on some of these pedal cars contains high lead levels. CPSC standards ban toys and other children's products containing high levels of lead. Young children could ingest the lead from the car's paint coating, a lead poisoning hazard. The Company has not received any reports of injuries involving these pedal cars. This recall is being conducted to prevent the possibility of injury. There are 17 models of the pedal cars included in the recall. Models include three fire trucks, four police cars, eight sedans, one yellow taxi, and one dump truck. For fire trucks, the model names are: (1) "Fire Truck," (2) "John Deere" and (3) "Texaco" For police cars, the model names are: (i) "NYPD," (ii) "Chicago Police," (iii) "Highway Patrol" and (iv) "EMERGENCY 911" For sedans, the names are: (a) pink "Champion," (b) blue "Champion," (c) "Texaco," (d) "John Deere," (e) "Citgo," (f) "Raley's Coca-Cola," (g) "Raley's Keebler," and (h) "Red Lion" All of the pedal cars are made of metal and come in a variety of colors. Most of the cars have a "Gearbox" logo on the seat back, the hubcaps, and/or the pedals. The pedal cars were manufactured in Korea. The two "Raley's" cars were sold exclusively at Raley's supermarkets from July 2000 through December 2000. Department, toy, and specialty/collectible stores sold all of the other pedal cars from November 1999 through January 2002 for between $100 and $500. For more information, contact Alpha International by Phone: 800-368-6367 between 9 am and 5 pm CT Monday through Friday to receive a replacement car or return the products to the place where purchased to receive a full refund. ANSETT AIRLINES: Former Customers Proceeding With Frequent Flyer Suit --------------------------------------------------------------------- Disgruntled former Ansett Airlines frequent flyers have pledged to continue their class action to have their points reinstated through more class action against the Australian airline's administrators, Asia Pulse reported recently. The 2.7 million former frequent flyer members, who lost 67 billion points under the old program when the airline collapsed were left out of the customer layalty program announced recently by the airline's new owner, Tesna. Under the new program, Tesna Ansett frequent flyers would receive a one-for-one free-flight offer for future flights, but points accumulated under the old Ansett would not be rewarded. Global Rewards Action Group (GRAG) spokesman Jon Caneva said one last attempt would be made to convince Ansett's administrators to revalue their points. "If they are not prepared to assess them on their true value, then we will be going to the Federal Court," Mr. Caneva told ABC radio in Melbourne. Mr. Caneva said they had about 1,000 people signed up to the class action already, some of whom have millions of points owing. Mr. Caneva said that GRAG had offered a proposal to the administrators that would deliver benefits to all parties, but it was rejected. He said the proposal included awarding the points at face value, in return for the travellers paying a booking fee of between $25 and $50 to redeem them. "That would put funds in their system, and give us the chance to use our points," he said. "The total amount of the 70 billion points at $25 would be in excess of $89 million, so that would put some considerable funds into their pockets immediately." However, the administrators said the proposal was not viable, according to Mr. Caneva, because a program already was in place. Melbourne businessman Andrew Abercrombie has accumulated four million points over the past five years, which he estimates are worth hundreds of thousands of dollars. Mr. Abercrombie is part of the class action and vows never to fly Ansett again. "There is absolutely no doubt that we have grounds for such action," he told ABC radio. AT&T CORPORATION: Customers Sue Over Connectivity Charges in California ----------------------------------------------------------------------- AT&T Corporation faces a national class action filed in Federal District Court in Los Angeles, California on behalf of the Company's approximately 60 million residential long distance customers, arising from its Universal Connectivity Charge assessed monthly against its residential long distance customers. The Company claims that this charge is for the purpose of recouping from its customers its required contribution to the federally mandated Universal Service Fund, which sponsors various programs including providing telephone discounts to low income citizens and helping to provide affordable telecommunications services to residents of rural areas. The lawsuit alleges, however, that while the Federal Communications Commission currently requires telecommunications carriers like the Company to contribute only 6.808% of their long distance revenues to the Universal Service Fund, the Company is charging its residential long distance customers through the Universal Connectivity Charge an amount equal to 11.5% of their long distance charges, an amount significantly in excess of what it actually contributes to the Universal Service Fund. The lawsuit alleges that the Company retains for itself the significant revenues generated in excess of what it actually contributes to the Universal Service Fund. Thus, the complaint alleges that through the manipulation of its Universal Connectivity Charge, the Company is secretly pocketing an amount equivalent to almost 5% of its 60 million residential customers' long distance charges, under the false guise of recovering its contribution to the Universal Service Fund. The suit further alleges that the Company unlawfully conceals this significant hidden charge within the so-called Universal Connectivity Charge from its customers, the states and regulators. The lawsuit notes that notices sent to customers, the Company's website and its 800 number all claim that the Universal Connectivity Charge serves simply to enable it to recover its expenses for the Universal Service Fund. Beyond constituting a huge secret profit center for the Company, the lawsuit further alleges that its manipulation of the Universal Connectivity Charge gives it an unfair advantage in the highly competitive long distance market. Long distance carriers compete to offer the lowest per minute rates, and hundreds of thousands of customers switch companies every year to save one or two cents per minute, or even fractions thereof. By hiding revenue in the Universal Connectivity Charge, the Company is able to advertise lower per minute long distance rates than it is effectively charging. The lawsuit alleges causes of action for violations of the Federal Communications Act, the California Unfair Competition Law, the California Consumer Remedies Act and for fraud. For more information, contact Marc Stanley of Stanley, Mandel & Iola, LLP by Phone: 214-443-4300 or Matthew Rossman or Andrew Kerstead of the Law Office of Andrew S. Kierstead, by Phone: 508-224-6246 CHICAGO HOUSING: CHA Settles For Suit Over Lead Poisoning $1.2 M ---------------------------------------------------------------- The Chicago Housing Authority set up a $1.2 million fund to settle a class action filed by parents of 12,000 children who might have lived in apartments provided by the authority which were painted with lead- based paint. The suit alleges that Chicago children whose parents rented private apartments using housing vouchers beginning in 1987 may have been exposed to lead paint, which can stunt brain development in young children and cause blood, kidney and other health problems, according to the Chicago Tribune. The suit charged the Chicago Housing Authority and CHAC Inc., the contractor that has run Chicago's federal housing voucher program since 1995, with failing to follow federal lead-exposure regulations, which required that: (1) all apartments considered for rental using vouchers to be inspected for lead; (2) any lead paint be removed or covered over if the family renting the unit has a child age 6 or under; and (3) the tenants be warned of hazards of lead paint. Gail Neimann, the authority's legal counsel told the Tribune that the CHA was complying with the regulations, but is pushing forward with the settlement. Under the settlement, around 12,000 children/class members can avail of free lead testing. Ms. Niemann adds that any child who shows elevated levels of lead in the blood will receive follow-up neurological testing. The CHA Board has also approved an $892,500 payment into the fund to settle the suit. The CHA is also working on a 10-year redevelopment plan, which includes the tearing down of all CHA high-rises. The CHA demolished about 500 fewer apartments than expected last year, 2,293 instead of 2,807, because tenants and housing advocates objected to the process by which residents were being relocated, and demolition was stopped, the Chicago Tribune states. CITIZENS INC.: Faces Suit For Violations of Texas Trade Practices Laws ---------------------------------------------------------------------- The Travis County, Texas State Court has yet to decide on motions for summary judgment and class certification in the lawsuit filed against insurance firm Citizens, Inc., alleging violations of Texas Blue Sky laws. The suit also names as defendants: (1) Citizens Insurance Company of America, (2) Negocios Savoy, SA, (3) Harold E. Riley, and (4) Mark A. Oliver The suit, filed on behalf of all persons who made premium payments who are not residents of the United States, alleges that the Company's policies are unregistered securities in violation of the Texas Blue Sky laws. In addition, the other plaintiffs made individual claims primarily under the Texas Deceptive Trade Practices Act (DTPA). The DTPA claims relate to limitations and exclusions stated in the policies, excessive surrender charges stated in the policies, and the amount of premiums charged. The individual claimants also claim breach of contract (failure to provide the insurance as represented, not alleged but stated), fraud in the inducement, negligent misrepresentation, breach of duty of good faith and fair dealing. The plaintiffs have filed a motion for class certification, which the defendants opposed saying the suit is not properly certifiable. Additionally, a motion for summary judgment has been filed by defendants on the issue of whether insurance policies issued to members of the putative class are unregistered securities in violation of the Texas Blue Sky laws. The Court has yet to decide on these motions. CUBA DETAINEES: Families of Australian, Brit Detainees Commence Suit --------------------------------------------------------------------- The families of an Australian and two Britons who were detained by US forces in Guantanamo Bay, Cuba commenced a lawsuit against the US government in the US District Court in Washington, alleging that their indefinite detention without trial violates the US Constitution, according to a Reuters report. The US forces detained Australian David Hicks and Britons Asif Iqbal and Shafiq Rasul at an open-air prison in Cuba, along with 300 other detainees, after the September 11 attacks on the World Trade Center. According to Reuters, the men have not had access to lawyers or made any appearance in front of a civilian or military tribunal since they were taken into custody. They have also not been charged with any offense. The suit, filed on behalf of the detainees' families, alleges the detention violated both the Constitution and international law, and seeks a writ of habeas corpus for the detainees. Lawyers for the three men have asserted their clients were not terrorists or "enemy aliens." Joseph Marguiles, lawyer for Mr. Hicks, told Reuters "There are few principles more firmly established in our law than the prohibition against arbitrary, indefinite detention." He adds, "The President of the United States and the executive branch simply cannot hold a person for the rest of his life without legal process, without judicial review, without being charged and without counsel, particularly when the possible outcome was the imposition of the death penalty." Clive Stafford-Smith, lawyer for the two Britons, says his clients should get the same legal rights as US Taliban fighter John Walker Lindh who is being tried in the United States after being captured in Afghanistan. He told Reuters, "We are asking that citizens of the United States' closest ally receive the same treatment as Americans." The US Justice Department did not release any comment on the case, as it is still seeking details on the suit. HMO LITIGATION: Court Limits Racketeering Charges V. Six Companies ------------------------------------------------------------------ Federal Judge Federico Moreno limited the scope a nationwide class action filed against six of the nation's largest managed care companies, namely Aetna, CIGNA, Health Net, Humana, Prudential, and United. Judge Moreno dropped racketeering claims by patients in California, Florida, New Jersey and Virginia because those states don't recognize individual claims of insurance fraud, but allowed patients in other states to keep that allegation, according to an Associated Press report. He also said most patients are not allowed to sue over rulings by insurance companies that their treatments weren't medically necessary, saying there are private mediation procedures for handling such complaints. Both parties in the suit welcomed the decision. Attorneys for the plaintiffs said the decision allowed racketeering claims from 46 states as well as a challenge to rules that keep physicians from disclosing health plan financial arrangements to patients. Attorney Steve Zack told AP, "This is a very, very significant step.The decision is very positive because it allowed the core issues of the case to go forward and be litigated." Industry spokeswoman Stephanie Kanwit also welcomed the decision, saying it threw out large portions of the suits. The Judge ordered patients' attorneys to file a new version of the lawsuit by March 20. He has yet to decide whether the claims meet tough federal standards for class action status allowing patients to sue as a group. LIFE INSURANCE: $55M Settlement Reached In Race-Based Premiums Suit ------------------------------------------------------------------- Life Insurance Company of Georgia will settle for $55 million a class action charging it and subsidiary Southland Life Insurance Company of charging blacks higher premiums for life insurance policies for over 30 years. According to an Associated Press report, State investigators discovered that the Company charged African-Americans up to 35% more than whites for the same or similar coverage from the 1950s through the 1970s. These policies, labeled "industrial life insurance," were sold mostly door-to-door in the South to poor blacks, often to cover burial expenses, and usually paid out no more than several hundred dollars. Under the settlement, the Company will refund $51 million on approximately 2.5 million policies sold mainly in 12 Southern states. Additionally, the Company will also pay a $4 million fine that will be divided among all 50 states. Black policyholders who paid higher rates before 1966 will also receive the difference between their premiums and those of white customers. Customers in later years would receive at least 70 percent of the premium difference, according to an AP report. In a statement, parent Company ING Group said, "Many years ago, it was common in the industry to base premiums on the disparity in life expectancy of different races. Life of Georgia and ING deeply regret the practice.Such practices are completely inconsistent with our current values and standards." The US District Court for Nashville, Tennessee has yet to approve the settlement. RANDOM HOUSE: Recalls 39T Monsters, Inc. Books For Choking Hazard ----------------------------------------------------------------- Random House, Inc. is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 39,000 copies of Monsters In The Closet children's board books. The snap that secures the book could detach, posing a choking hazard to young children. CPSC and the Company have not received any reports of injuries involving this book. This recall is being conducted to prevent the possibility of injuries. The board books are constructed of heavy cardboard with Monsters Inc. cartoon characters on each page. The title "MONSTERS IN THE CLOSET" is printed with orange letters highlighted in yellow on the front cover of the books. The books have a hole at the top of the back cover to allow them to hang on a door knob. The books have been printed in English and Spanish languages. "Made in China" is printed on the back of the book. Book, specialty stores and online retailers sold these books nationwide from October 2001 through January 2002 for about $8. Consumers should cut off the snap from these books immediately and contact Tri-State c/o Marie Corsello by Mail: 325 Rabro Drive, Hauppauge, NY 11788 to receive a free replacement book valued at about $9, or contact the Company by Phone: 800-493-0009 between 9 am and 5 pm ET Monday through Friday, or visit the firm's Web site: http://www.randomhouse.com. TRI-STATE CREMATORY: Faces Suit After Dumping Corpses in Its Premises --------------------------------------------------------------------- The Tri-State Crematory faces a possible class action suit after State investigators discovered discarded corpses on its premises, which were supposedly given to operator Ray Brent Marsh for cremation, the Associated Press reports. Investigators believe they have recovered around 300 bodies, have counted 191, and 29 of them have been positively identified. This week, investigators worked double time to recover discarded corpses in six new vaults on the crematory grounds. Authorities have arrested Mr. Marsh, 28, on 16 counts of theft by deception for allegedly taking payment for cremations he didn't intend to perform. However, they have not determined who else may be responsible for dumping the bodies. AP reports that Mr. Marsh took over the business from his parents, Clara and Ray Marsh, but authorities say some of the corpses appeared to have been on the property for 15 years or more. Mr. Marsh has said that he didn't cremate the bodies because the incinerator was not working. Outraged relatives of the victims have already filed two fraud suits against the crematory and one of the funeral homes that sent bodies there. An attorney in one of the cases said he was seeking class-action status for the lawsuit, which accuses the funeral home and crematory of negligent or intentional mishandling of corpses. UNILEVER HOME: Recalls 4M Plush Snuggle Bears For Choking Hazard ----------------------------------------------------------------- Unilever Home and Personal Care USA is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 4 million plush Snuggler bears. The eyes and noses of these bears can come off, posing a choking hazard to young children. The Company has received 32 reports of the eyes and noses coming off of these bears. In three of these reports, children placed detached eyes from these bears in their mouths. No injuries were reported. The plush, cream-colored bears come in three sizes: a 5-inch bean bear, an 8-inch bean bear and a 10-inch stuffed bear. The 5-inch bears come in four styles: Pajama Bear wears blue, one-piece pajamas with a yellow moon and star design; Nightcap Bear wears a blue nightcap with a yellow moon and star design; Purple Blanket Bear holds a purple blanket; Pink Blanket Bear holds a pink blanket. The 8-inch bean bear is made of terry or plush fabric. The 10-inch plain stuffed bear is in a sitting position and has tan paws and ears. All the bears have tags that read "Snuggler" and "Made in China." Grocery and discount department stores nationwide sold the Snuggle fabric softener that included the 5-inch and 8-inch bears between May 1999 and July 2001. The Pajama and Nightcap 5-inch bears also were given away to consumers who sent in two proofs of purchase for Snuggle fabric softener between November 2001 and December 2001. The 10-inch bears were distributed from May 1997 through May 1998 to consumers who sent in a proof of purchase for Snuggle fabric softener and up to $4. For more information, contact the Company by Phone: 800-896-9479 or visit its Web site: http://www.Snuggletime.com. Securities Fraud ARTHUR ANDERSEN: Enron-Related Settlement Figures Could Reach $600M ------------------------------------------------------------------- Controversial auditing firm Arthur Andersen, LLP wants to settle the fraud claims brought against them in a class action suit filed by stockholders of Enron Corporation, for the firm's role in the energy trader's collapse. The firm has floated early settlement figures of around $260 million to resolve the claims, according to people close to the negotiations. The firm's law firms Davis Polk & Wardwell and Rusty Hardin & Associates told the plaintiffs' lawyers that the accounting firm is worried that the Enron scandal could put it out of business, according to a USA Today report. The firm reportedly is willing to pay $260 million in corporate insurance, plus an undisclosed amount in Company assets, says a legal source familiar with the discussions. USA Today also reports that people close to the matter are saying that an additional $350 million could come from liability insurance that covers Enron executives and Board directors. Lawyers and officials for the firm, however, have not offered any insight. Milberg Weiss Bershad Hynes & Lerach, the law firm that dominates securities-fraud litigation and is lead counsel on the Enron class action, declined to comment on the settlement talks. However, legal insiders believe Milberg Weiss Bershad Hynes and Lerach will go ahead with the suit and does not desire to settle early. COMCAST CORPORATION: Faces Suit Challenging AT&T Acquisition in NY ------------------------------------------------------------------ Comcast Corporation faces a lawsuit from investors filed in New York Supreme Court, challenging the Company's $42 billion acquisition of AT&T Broadband, alleging some terms of the merger violated Pennsylvania laws. Law firm Wechsler, Harwood, Halebian and Feffer LLP commenced the suit on behalf of AT&T shareholder Norman Salsitz and Comcast shareholder Michael Grening. The Company announced in December that it was acquiring AT&T in a transaction valued at $72 billion at that time. In line with this, the two companies filed a preliminary proxy early this month which contained several provisions they said were "atypical" for a large publicly traded company. According to The Deal.com, the proxy provides that: (1) there would be a three-year initial term for the Company's board or directors; (2) chairman Michael Armstrong and CEO Brian L. Roberts effectively could not be removed from their posts prior to the 2005 annual meeting; (3) both companies would not hold annual meetings prior to 2005 and only after 2005 would shareholders be able to elect directors annually; and (4) no one could buy more than 10% of AT&T Comcast stock without board approval. These provisions allegedly would shield Comcast from a hostile takeover. However, the suit alleges that these provisions violated Pennsylvania law. The suit asserts that the law bars companies from installing an entire Board of Directors for a three-year term, and specifies that investors must elect directors annually. James G. Flynn, a partner at Wechsler Harwood told TheDeal.com that his clients want the Companies to drop the three-year delay in electing directors. If they refuse, investors may ask the court to block the merger, Mr. Flynn said. "The companies want to insulate themselves from accountability, and we know that an absence of accountability is a formula for disaster," he said. "This is the most far-reaching entrenchment effort anyone can remember." Additionally, Mr. Flynn emphasized that his clients are upset because the two companies want to deprive them of their only means to influence corporate decision-making. "These companies are trying to prevent shareholders for at least three years from exercising their only meaningful power," he said. "This move says shareholders should not be seen or heard." Comcast and AT&T officials declined to comment on the litigation, TheDeal.com reports. The Department of Justice and the Federal Communications Commission have yet to clear the merger. Mr. Flynn said the plaintiffs will seek expedited discovery and relief, while the companies have said they expect to close the deal by the end of 2002. ELAN CORPORATION: Berman DeValerio Lodges Securities Suit in N.D. GA -------------------------------------------------------------------- Berman DeValerio Pease Tabacco Burt and Pucillo filed a securities class action against Elan Corporation, PLC (NYSE: ELN) in the US District Court for the Northern District of Georgia on behalf of all investors who bought Elan American Depository Receipts (ADRs) from April 23, 2001 through January 29, 2002. The suit charges the Company, an Irish pharmaceutical company, and its three top officers with issuing a series of false and misleading statements to the investing public. These news releases and financial statements, contrary to what the company said, failed to comply with generally accepted accounting principles (GAAP). Specifically, the lawsuit accuses Elan of using more than 50 sham joint ventures to keep research-and-development costs off its books, pump up earnings and artificially inflate its stock price. According to the complaint, the Company actually funded these purported joint ventures itself then signed licensing deals that, in effect, paid itself money that it then booked as revenue. In addition, the Company listed its "investments" in the joint ventures as balance-sheet assets, the complaint says. News of the Company's accounting practices sent its stock reeling. After The Wall Street Journal published an article exposing the ploys on January 30, 2002, the price of Company ADRs fell 16%, from $35.20 the previous day to $29.95. When the company announced a few days later that its earnings for the fourth quarter of 2001 would drop 84%, its ADRs fell a whopping $15.10 per share, a 50% decline in a single day of trading. On February 7, 2002, the Company revealed that the U.S. Securities and Exchange Commission was investigating the company. For more details, contact Chauncey D. Steele IV by Mail: One Liberty Square, Boston, MA 02109 by Phone: (800) 516-9926 by E-mail: law@bermanesq.com or visit the firm's Web site: http://www.bermanesq.com. ENRON CORPORATION: Congress To Probe Wall Street Firms Role in Collapse ----------------------------------------------------------------------- The US Congress is preparing to investigate several Wall Street firms, for their handling of Enron Corporation's bankruptcy, the biggest in the nation's history. The banks most likely to come under scrutiny include Citigroup, JP Morgan and Merrill Lynch. Banks and financial institutions, most notably Arthur Andersen LLP, have been criticized for their role in the bankruptcy, with several class actions claiming that some of these institutions hid what they knew about the Company's finances in order to gain profit. Citigroup and JP Morgan reportedly lent billions to Enron and received huge fees for corporate advice, according to a Telegraph.co.uk report. Merrill Lynch came under fire after some of its senior executives reportedly invested in one of the controversial subsidiaries that Enron used to hide its debts. Most of Wall Street played some part in financing the partnerships. Congressional investigators will use the probe's findings to determine if these institutions deceived Company shareholders and investors prior to the bankruptcy. James Greenwood, the head of the House Energy and Commerce Committee, said, "We cannot say that we have evidence of wrongdoing, but we certainly have concerns." One suggestion is that Wall Street firms be banned altogether from acting as both a broker for shares and an investment banking adviser. This would reflect the shake-up in the accountancy industry, where firms are likely to be told they cannot earn consultancy fees from the companies they audit, Telegraph.co.uk reports. ENRON CORPORATION: Florida Considers Withdrawing From State 401(k) Suit ----------------------------------------------------------------------- The State of Florida might drop out of the class action against Enron Corporation and Arthur Andersen, since it failed to get the lead plaintiff position in the suit. The lawsuit was filed on behalf of the members of several states' 401(k) plans who lost their investments when Enron stock collapsed, according to PensacolaNewsJournal.com. Florida's retirement system absorbed the biggest loss among the entities vying for the lead plaintiff position, losing more than $325 million. However, Judge Melinda Harmon awarded the position to the University of California retirement system, after seeing possible conflicts of interest if Florida was named lead plaintiff. The conflicts exist largely because of the State's relationship with Alliance Capital, an investment company that loaded Florida with Enron stock. Alliance reportedly had an Enron director on its Board. According to PensacolaNewsJournal, other concerns include: (1) the State's purchase of Enron shares even after the initial securities fraud allegations; (2) $6,500 in campaign contributions from Enron received by Florida Gov. Jeb Bush; and (3) Gov. Bush's contemplation of a joint water-mining venture with Enron. In her ruling, Judge Harmon wrote, "In good conscience, this Court cannot endanger this litigation by ignoring the issues created by (the Florida State Board of Administration's) unique involvement with Enron." The State's Board of Administration Executive Director, Tom Herndon, said, "We need to make a determination on whether we want to stay in the class, or opt out and file our own action." Florida's withdrawal could reduce the bargaining power of the remaining shareholders, as they wouldn't be able to offer Enron and Andersen a complete end to lawsuits, according to the PensacolaNewsJournal. The California litigants said they were unaware that Florida is considering opting out, but were not surprised. "The Judge did note there were unique issues Florida faces, that might be distinct from the class as a whole," said Trey Davis, spokesman for the California Regents. ENRON CORPORATION: Court Lifts Stay on 401(k) Suits, To Set Trial Date ---------------------------------------------------------------------- The New York Bankruptcy Court lifted an automatic stay on the 401(k) class actions filed against fallen energy trader Enron Corporation, ordering the Company's lawyers to appear in Court next week to set a schedule for trial. The suits, filed by current and former Enron employees who lost most of their retirement savings in the Company's 401(k) plans, charges the Company with violating federal pension rules. The suits are being consolidated into a single class action that will be heard in Houston court. US Bankruptcy Court Judge Arthur J. Gonzalez ordered the Company to give the plaintiffs' lawyers access to financial documents that have been handed to government and federal investigations. Discovery will not start until June 21. The suits have been stayed, pursuant to the Enron's bankruptcy filing last December. Lawyer for the plaintiffs, Eli Gottesdiener, told Associated Press, "We're gratified by the Judge's decision and look forward to our day in court against Enron." The decision allowed Mr. Gottesdiener and other lawyers access to documents detailing the Company's off-balance-sheet financial transactions, which helped mask some of Enron's debts. The trial will be used to determine how much the class would be entitled to as an unsecured creditor, while any actual distribution of funds would be decided by the New York bankruptcy court. GLOBAL CROSSING: Berman DeValerio Commences Securities Suit in S.D. NY ---------------------------------------------------------------------- Berman DeValerio Pease Tabacco Burt and Pucillo initiated a securities class action against several top officers of Global Crossing Ltd. (NYSE: GX) (OTC Bulletin Board: GBLXQ), accusing them of releasing false and misleading financial statements to the public. The suit was filed in the US District Court for the Southern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought Company stock from January 2, 2001 through October 4, 2001. The suit charges five top Company managers with artificially inflating earnings by improperly recording and reporting cash and revenue from certain long-term lease contracts for the rights to use the company's fiber optic cable network. Simultaneously, the complaint says, the Company entered into substantially similar agreements with the same companies to purchase bandwidth capacity from them in a different area. In essence, the complaint alleges that these swap transactions were improperly recorded to artificially inflate the Company's financial results. At the same time, the Company was carrying an increasingly heavy debt burden that was exacerbated by an ever-shrinking market for bandwidth. This forced the company to drastically lower its prices. It was unable to offset the declining demand for bandwidth capacity with the sale of customized provider services because, unknown to investors, the defendants had no viable plan for establishing the Company as a provider of these services, the complaint says. Also during the class period, the complaint says, the individual defendants and other Company insiders generated more that $149 million from insider stock sales. The full extent of the Company's financial crisis began to emerge on October 4, 2001 when it announced that its third quarter 2001 cash revenues were $400 million below expectations and that it was selling off its desktop trading systems division. The suit says that investors were also stunned by the announcement that the Company's expected recurring adjusted EBITDA would fall almost $300 million less than analyst expectation. In reaction to these statements, Company stock plunged 49% to $1.07 per share. For further details, contact Jeffrey C. Block, Michael G. Lange or Patrick T. Egan 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. GLOBAL CROSSING: Cauley Geller Commences Securities Suit in W.D. NY ------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action lawsuit in the United States District Court for the Western District of New York on behalf of purchasers of Global Crossing, Ltd. (NYSE:GX) (OTCBB:GBLXQ) common stock during the period between February 14, 1999 and October 4, 2001, inclusive. All acquirers of Global Crossing common stock pursuant to the merger which closed on September 28, 1999 between Global Crossing, Frontier Corporation, and a wholly-owned subsidiary of Global Crossing are being included in the class action. The suit charges certain of the Company's officers and directors violated the Securities Exchange Act of 1934. Due to its recent bankruptcy filing, the Company is not named as a defendant in the action. The suit charges that during the class period, defendants issued false and misleading statements, press releases, and SEC filings concerning the Company's financial condition, as well as its ability to generate sufficient cash revenue from new revenue sources considering the failing market for broadband access. Prior to the disclosure of the Company's true financial condition, the individual defendants and other Company insiders sold holdings of its common stock for proceeds of more than $149 million. In addition, during the class period defendants caused the Company to sell notes on favorable terms to itself, which generated $1 billion in investor capital. On October 4, 2001, the Company announced that cash revenues in the third quarter would be approximately $1.2 billion, $400 million less than the $1.6 billion expected by analysts and forecast several times earlier in the year by defendants. In addition, the Company and the defendants stated that they expected recurring adjusted EBITDA to be "significantly less than $1000 million" compared to forecasts of $400 million made several times earlier in the year. Following this series of announcements, the Company's share price plummeted nearly 50% to $1.07 per share on extremely heavy trading volume. Subsequently, with its stock trading at well under a dollar per share of common stock, the Company filed for Chapter 11 Bankruptcy protection on January 28, 2002 after becoming unable to service its debt. For more information, contact Jackie Addison, Sue Null or Shelly Nicholson by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 by E-mail: info@classlawyer.com or visit the firm's Web site: http://www.classlawyer.com HANOVER COMPRESSOR: Schiffrin Barroway Files Securities Suit in S.D. TX ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action lawsuit in the U.S. District Court for the Southern District of Texas - Houston Division, alleging that Hanover Compressor Company (NYSE:HC) misled shareholders about its business and financial condition. The suit seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Company securities between November 8, 2000 and January 28, 2002. The suit alleges that certain of the Company's officers and directors violated the Securities Exchange Act of 1934. The complaint charges that during the class period, defendants issued false and misleading statements, press releases, and SEC filings concerning the Company's financial condition. These statements had the effect of artificially inflating the price per share of the Company's common stock and other securities. Hanover's true state of fiscal affairs was, in fact, substantially different than reported to the markets. On January 28, 2002, the Company would reveal various investments and joint ventures for which it never recorded the investment amount or purchase price, but for which it recorded revenue from in order to bolster its claims of growth. Specifically, the true facts, which were known by the defendants during the class period but concealed from the public, were: (1) the $16 million in revenue and $2.6 million in net income recognized in the 3rd and 4th quarter associated with the Hampton Roads fabrication project should not have been recognized; (2) the Registration Statement omits the Hampton Roads project and incorporates the Company's false and misleading 3rd and 4th Quarter 2000 financial results; and (3) the Company's financial statements for 1st through 3rd Quarter 2001 were false in that the revenue and EPS were overstated and they failed to disclose the impact of the questionable Hampton Roads joint venture. 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 E-mail: info@sbclasslaw.com or visit the firm's Web site: http://www.sbclasslaw.com. HANOVER COMPRESSOR: Cohen Milstein Commences Securities Suit in S.D. TX ----------------------------------------------------------------------- Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class action in the United States District Court for the Southern District of Texas on behalf of purchasers of Hanover Compressor Company (NYSE:HC) publicly traded securities during the period between November 8, 2000 and January 28, 2002. The suit alleges that the Company and certain of its officers and directors violated the federal securities laws. The suit alleges violations arising out of defendants' issuance of false financial statements and other false and misleading statements about the Company's operating performance. Defendants failed to disclose facts relating to a partnership in which it had an equity interest, including that it used income from that partnership to overstate revenue and income for the third and fourth quarters of fiscal 2000. This allowed certain insiders to sell 7.5 million shares of stock in a secondary public offering in March 2001 and for the Company to issue 4.75% Convertible Senior Notes due 2008, based on more favorable financial results. For more information, contact Steven J. Toll or Lisa Polk by Mail: 1100 New York Avenue, N.W. Suite 500 - West Tower Washington, D.C. 20005 by Phone: 888-240-0775 or 202-408-4600 by E-mail: stoll@cmht.com or lpolk@cmht.com or visit the firm's Web site: http://www.cmht.com HUB GROUP: Charles Piven Commences Securities Suit in N.D. Illinois ------------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA lodged a securities class action on behalf of shareholders who acquired Hub Group, Inc. (Nasdaq:HUBG) (Nasdaq:HUBGE) securities between April 21, 1999 and February 12, 2002, inclusive, in the United States District Court for the Northern District of Illinois, Eastern Division against the Company and: (1) William L. Crowder, (2) Philip C. Yeager, (3) Jay E. Parker, (4) David P. Yeager, (5) Thomas L. Hardin and (6) Arthur Andersen, LLP The suit charges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more information, contact Charles J. Piven, PA by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202 by E-mail: hoffman@pivenlaw.com or by Phone: 410-332-0030. HUB GROUP: Milberg Weiss Commences Securities Suit in N.D. Illinois ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Hub Group, Inc. (NASDAQ:HUBG, HUBGE) between April 21, 1999 and February 12, 2002, inclusive, in the United States District Court, Northern District of Illinois, Eastern Division, against the Company and: (1) William L. Crowder, (2) Philip C. Yeager, (3) Jay E. Parker, (4) David P. Yeager, (5) Thomas L. Hardin and (6) Arthur Andersen, LLP The suit alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 21, 1999 and February 12, 2002, thereby artificially inflating the price of Hub Group securities. Throughout the class period, as alleged in the complaint, defendants issued statements regarding the Company's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission (SEC). The suit alleges that these statements were materially false and misleading because, among other things: (i) the Company's 65% owned subsidiary, Hub Group Distribution Services, which represented a material portion of the Company's revenues, was improperly recognizing revenues in violation of its accounting policies and generally accepted accounting policies. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of the Company were lacking in a reasonable basis at all times. On February 12, 2002, after the close of the market, the Company shocked the market when it announced that it had discovered certain accounting irregularities at its 65% owned subsidiary, Hub Group Distribution Services. As a result of this discovery, the Company estimates that it had overstated its earnings on an after-tax, post minority interest basis by between approximately $3 million to $4 million since 1999. The Company further stated that its investigation is ongoing and once it has been completed, it will restate its financial results for the appropriate periods. In response to these disclosures, the price of the Hub Group's common stock dropped from $10.52 per share to $8.03 per share, a one-day loss of more than 31% on volume of more than 153,700 shares traded, more than ten times the average trading volume. For more information, contact Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: 800-320-5081 by E-mail: HubGroupcase@milbergNY.com or visit the firm's Website: http://www.milberg.com IRVINE SENSORS: Weiss Yourman Commences Securities Suit in C.D. CA ------------------------------------------------------------------ Weiss and Yourman LLP initiated a securities class action in United States District Court for the Central District of California on behalf of purchasers of Irvine Sensors Corporation (Nasdaq: IRSN) common stock between January 6, 2000 and September 15, 2001, inclusive. The complaint alleges that the Company, a high-tech research and development firm, along with certain of its officers and directors, violated federal securities laws, by, among other things, repeatedly maintaining throughout the class period, that Silicon Film Technologies, Inc., a majority-owned subsidiary of the Company, was near completion of its Electronic Film System or "EFS-1," a device which would interface with a conventional camera to enable the camera to take digital pictures, all the while knowing that the EFS-1 was suffering from serious and insurmountable technical design flaws. On September 15, 2001, after nearly two years of touting the EFS-1 technology, Irvine abruptly announced that SFI had suspended operations and was considering bankruptcy, essentially ending the EFS-1 project. This news caused Company stock price to plummet from a class period high of $14 a share to a low of 12 cents. According to the complaint, due to defendants' deceptive and illegal conduct, the Company's stock price was artificially high throughout the class period, causing plaintiff and the other class members to purchase their Company securities at inflated prices. For more information, contact Weiss and Yourman by Phone: 800-437-7918 by E-mail: info@wyca.com or visit the firm's Web site: http://www.wyca.com JENNY CRAIG: Shareholders File Suit Opposing ACI Capital Merger in DE --------------------------------------------------------------------- Weight control firm Jenny Craig, Inc. faces three securities class actions filed in the Delaware Court of Chancery in New Castle County challenging its merger with J. Holdings Corporation, a Company formed precisely for the merger under the direction of ACI Capital Company, Inc. The suits name as defendant the Company and: (1) Sidney Craig, (2) Jenny Craig, (3) Scott Bice, (4) Marvin Sears, (5) Andrea van de Kamp, (6) Robert Wolf, (7) Patricia Larchet, (8) Duayne Weinger. One suit adds SJF Enterprises, Inc. and Craig Enterprises, Inc. as defendants, and another names ACI and DB Capital Corporation as additional defendants. These actions, in which the plaintiffs seek class certification, generally allege that: (1) the $5.30 price per share of the Company's common stock is inadequate; (2) the members of the Company's Board of Directors breached their fiduciary duties to Company stockholders in connection with the merger and (3) the Craigs, together with ACI and DB Capital, are engaging in the merger transaction to capture the future market potential of the Company for themselves without regard for Company public stockholders. The suits seek injunctive relief against the merger, rescission of the merger if it is consummated or rescissory damages, monetary damages, and an award of plaintiffs' costs and attorneys' fees. None of the lawsuits specifies any amount of damages sought and, therefore, the Company cannot yet estimate a range of possible loss in connection with this litigation. JP MORGAN: Kirby McInerney Commences Securities Suit in S.D. New York --------------------------------------------------------------------- Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of J.P. Morgan Chase & Co. (NYSE:JPM) stock during the period November 28, 2001 through January 28, 2002, inclusive. The suit charges the Company with violations of federal securities laws. The complaint charges that on the first day of the class period, the Company recklessly misrepresented its risk and loss exposure related to its transactions and dealings with the Enron Corporation as being approximately $900 million. J.P Morgan later admitted that, in fact, its total Enron related exposure was actually about $2.6 billion, or almost three times the earlier figure. Shortly thereafter, it wrote down $1.13 billion in nonperforming assets, specifically related to losses generated by its dealings with Enron. For more details, contact Ira Press or Diem Tran by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022 by Phone: 212-317-2300 or 888-529-4787 by E-mail: dtran@kmslaw.com or visit the firm's Website: http://www.kmslaw.com NVIDIA CORPORATION: Schiffrin Barroway Files Securities Suit in N.D. CA ----------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock of NVIDIA Corp. (Nasdaq: NVDA) from February 15, 2000 through February 14, 2002, inclusive. The suit charges the Company and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the suit alleges that as part of their effort to boost the price of Company stock, defendants misrepresented the Company's true prospects in an effort to conceal its improper acts until they were able to sell at least $66 million worth of their own stock. In order to overstate revenues and assets in its 4th Quarter 2000 and 1st to 3rd Quarter 2001, the Company violated generally accepted accounting principles and SEC rules by engaging in an illegal accounting scheme. This scheme had the effect of dramatically overstating revenues and assets. Then, on February 14, 2002 (after the close of the market), the Company partially admitted that its past accounting for its prior results may be inaccurate in a press release entitled, "NVIDIA Corporation Conducting Review of Certain Transactions at the Request of the SEC." On this news the Company's shares plummeted the following day. 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: 888-299-7706 (toll free) or 610-667-7706 or by E-mail: info@sbclasslaw.com NVIDIA CORPORATION: Charles Piven Commences Securities Suit in N.D. CA ---------------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who acquired NVIDIA Corp. (Nasdaq:NVDA) securities between February 15, 2000 and February 14, 2002, inclusive, in the United States District Court for the Northern District of California against the Company and certain of its officers and directors. The suit charges that the defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of NVIDIA's securities. For further details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202 by E-mail at hoffman@pivenlaw.com or by Phone: 410-332-0030. PNC FINANCIAL: Berman DeValerio Commences Securities Suit in W.D. PA -------------------------------------------------------------------- Berman DeValerio Pease Tabacco Burt and Pucillo initiated a securities class action against the PNC Financial Services Group, Inc. (NYSE: PNC), claiming the Company artificially inflated earnings by using improper accounting methods. The suit is pending in the U.S. District Court for the Western District of Pennsylvania and seeks damages for violations of federal securities laws on behalf of all investors who bought Company stock from July 19, 2001 through January 28, 2002. The suit accuses the Company, a Pittsburgh-based financial services company, of using improper accounting methods to inflate earnings reports and subsequently releasing those figures to the public. The complaint also names two top officers and the Company's auditor, Ernst & Young, as defendants. On January 29, 2002, the Company revealed that the Federal Reserve Board had ordered it to restate its financial results for the second and third quarters of 2001 and revise its fourth quarter 2001 numbers. According to the complaint, the Board ordered the restatement because of the Company's apparent failure to comply with generally accepted accounting principles during the class period by failing to consolidate into its financial reports three financial firms in which the Company had interests. The suit said the restatements inflated the Company's net income during the class period by $155 million, or 27%, and reduced its earnings by that amount for the year ended December 31, 2001. Company stock quickly fell 12% the day after it announced the restatement, the complaint added. For further information, contact Michael G. Lange or Chauncey D. Steele IV 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. SPORT-HALEY CORPORATION: Motion To Dismiss Securities Suit Pending ------------------------------------------------------------------ Sport-Haley Corporation will mount a vigorous defense against a securities class action filed in October 2001 in the US District Court for the District of Colorado on behalf of all persons who acquired the Company's common stock during the period from September 4, 1996 through October 16, 2000. The suit names as defendants the Company and: (1) Robert G. Tomlinson, (2) Kevin M. Tomlinson and (3) Robert W. Haley The suit alleges that the defendants violated Section 10(b) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder, by knowingly overstating the Company's financial results, thereby causing its stock price to be artificially inflated. The complaint further alleges that the individual defendants are liable by virtue of being controlling persons of the Company, pursuant to Section 20(a) of the Exchange Act. The allegations arise out of its restatements of its financial statements for the fiscal years ended June 30, 1999 and 1998, previously reported by the Company. The Court appointed a group of investors, including lead plaintiff J. Roger Gregg, to act as lead plaintiff in the action. The defendants filed a motion to dismiss the action in December 2001, which is still pending. WILLIAMS COMPANIES: Brian Barry Commences Securities Suit in N.D. OK -------------------------------------------------------------------- The Law Offices of Brian Barry initiated a securities class action in the United States District Court for the Northern District of Oklahoma on behalf of all persons who purchased securities of Williams Companies, Inc. (NYSE: WMB) and Williams Communications Group, Inc. (NYSE: WCG) between July 24, 2000 and January 29, 2002, inclusive. The suit charges the Company and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of the Company's revenues and earnings caused its stock price to become artificially inflated, inflicting enormous damages on investors. For further details, contact Jill Levine by Mail: 1801 Avenue of the Stars, Suite 307, Los Angeles, California 90067 by Phone: 310-788-0831 or by E-mail: jilllevine1@yahoo.com. WILLIAMS COMPANIES: Zwerling Schachter Lodges Securities Suit in OK ------------------------------------------------------------------- Zwerling, Schachter & Zwerling, LLP initiated a securities class action in the United States District Court for the Northern District of Oklahoma, on behalf of all persons who purchased or otherwise acquired the securities of Williams Companies, Inc. (NYSE: WMB) and/or the securities of Williams Communications Group, Inc. (NYSE: WCG) between July 24, 2000 and January 29, 2002, inclusive. The suit alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations during the class period, thereby artificially inflating the price of WMB and WCG securities. The suit alleges, among other things, that defendants misled investors by failing to disclose: (1) that the WCG spin-off from WMB was not in the best interests of WMB and WCG shareholders; (2) the accounting and financial impact of the contingent liabilities retained by WMB; and (3) the precarious financial state of WCG. On January 29, 2002, Williams Companies announced it was delaying the release of its 2001 earnings "pending an internal assessment of Williams contingent obligations to Williams Communications." As a result of this news, the price of Williams Companies' common stock fell from approximately $24 per share to a low of $18.70 per share, and Williams Communications' stock fell to as low as $1.30 per share. For more information, contact Shaye J. Fuchs by Phone: 800-263-7337 by E-mail: sfuchs@zsz.com or Willy Gonzalez by Phone: 800-721-3900 by E- mail: wgonzalez@zsz.com or visit the firm's Web site: http://www.zsz.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. 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