CAR_Public/020228.mbx                C L A S S   A C T I O N   R E P O R T E R
  
              Thursday, February 28, 2002, Vol. 4, No. 42

                            Headlines

COLORADO: Denver Appeals State Court Ruling On Photo Radar System
COUNTRY STYLE: Landlords Mull Suit Over Lost Leases Due To Bankruptcy
CREMATORY LITIGATION: GA Residents File Another Suit Over Desecrations
HOLLYWOOD WRITERS: Revive Age Bias Suit V. Networks, Studios, Agencies
HYPERION BOOKS: Offers Free Books To Settle Beardstown Club Books Suit

INGERSOLL-RAND COMPANY: Recalls 458T Air Compressors For Injury Risk
NEW ZEALAND: Car Dealers To Sue Transport Minister Over Import Rules
OXYCONTIN LITIGATION: Purdue, Abbott Face Two Consumer Fraud Suits
PREPAID LEGAL: Former Members File Suit For Fraud, Breach of Contract
PREPAID LEGAL: Faces Suit Relating To Commissions Practices in Oklahoma

RACING CHAMPIONS: CA Court Yet To Grant Certification to Consumer Suit
ROTO ZIP: Voluntarily Recalls 1.9M Hand-held Saws For Injury Hazard
RR DONNELLEY: Appealing Statute of Limitations Ruling in Race Bias Case  
RR DONNELLEY: July Date Set For Age Discrimination Claims Hearing
RR DONNELLEY: Former Employees Claims Re ERISA Violations Denied

UNITED STATES: Group Seeks Compensation For Mistakenly Shot-Down Plane
WEST VIRGINIA: House Committee Endorses Bill Limiting Insurance Suits

                        Securities Fraud

ALCATEL ALSTHOM: Settlement Reached Over 1998 Share Price Downturn
AREMISSOFT CORPORATION: NJ Court Consolidates Multiple Securities Suits
CORNING INC.: Weiss Yourman Initiates Securities Suit in W.D. New York
ELAN CORPORATION: Carr Tabb Commences Securities Fraud Suit in N.D. GA
HANOVER COMPRESSOR: Faruqi Faruqi Initiates Securities Suit in S.D. TX

IMCLONE SYSTEMS: Berger Montague Commences Securities Suit in S.D. NY
IRVINE SENSORS: Bernstein Liebhard Lodges Securities Suit in C.D. CA
LASON INC.: Multiple Securities Suits Remain in Preliminary Stage
NVIDIA CORPORATION: Bernstein Liebhard Files Securities Suit in N.D. CA
OXFORD HEALTH: Securities Violations Suit Discovery Ongoing in S.D. NY

QWEST COMMUNICATIONS: Shareholder Files Suit Over KMC Telecom Deal
QWEST COMMUNICATIONS: Weiss Yourman Initiates Securities Suit in CO
RENT-A-CENTER INC.: Bernstein Liebhard Lodges Securities Suit in TX
RHYTHMS NETCONNECTIONS: Bernstein Liebhard Lodges Securities Suit in CO
                            
                            *********

COLORADO: Denver Appeals State Court Ruling On Photo Radar System
-----------------------------------------------------------------
The City of Denver, Colorado appealed a state judge's ruling declaring
its photo radar program "unconstitutional" in the Denver District
Court, the Denver Channel reports.

State Judge Mary Celeste declared void four photo-radar tickets and
ruled that the City improperly delegated police functions to a photo
radar contractor by allowing its employees to view the photos and
determine whether tickets should be issued.  She also ruled that the
contract between the City and ACS State and Local Solutions violated
Colorado law.

As a result, the City suspended its multi-million dollar radar program.  
A class action was also commenced early this month seeking refunds for
the fines paid under the system.

City officials have said that when the program is reinstated, the photo
radar vans will be stationed only in school zones and on neighborhood
streets, according to the Denver Channel. Some critics have said the
vans were being placed on thoroughfares to increase revenue.


COUNTRY STYLE: Landlords Mull Suit Over Lost Leases Due To Bankruptcy
---------------------------------------------------------------------
Disenfranchised landlords are considering the filing of a class action
against Country Style Food Services Inc. after the Company filed for  
bankruptcy protection, the Globe and Mail reports.  The landlords
reportedly signed 10-to-15 year leases with the Company, but were left
with no more than one month's rent after the Company filed for
protection under the Companies' Creditors Arrangement Act (CCAA).

Landlord Guy Beaulie is talking with seven other landlords in Ontario
about taking Country Style to court.  He told Globe and Mail, "We're
taking a pill like every other landlord."  Mr. Beaulie added he has
been left with debts of $250,000 on a useless, empty building that is
costing him $1,000 a month in taxes and utilities, saying "Country
Style came in and took all the kitchen equipment.They left a hell of a
mess."

Company President Patrick Gibbons did not deny the charges, saying "I
can only apologize for the errors of the past," he said in a telephone
interview with the Globe and Mail, "I've got 102 angry landlords on my
hands."  He asserted that the cause of the doughnut chain's bankruptcy
was outdated outlets and poor locations in a highly competitive
environment, "The Company was insolvent.The CCAA (process) is not
pretty. The majority of people will benefit, but there is some pain.
Some landlords can only lose."

Experts believe that the debacle brings to light a huge flaw in
Canada's franchise industry in that the franchisors usually hold all
the power, leaving nothing for landlords and franchisees.

Mr. Beaulieu said it would be very difficult to find another operator
because their communities are already overbuilt with fast-food
franchises.  He and a group of other landlords have asked Ontario
Premier Mike Harris for help.  However, Mr. Beaulieu admits a class
action could be difficult, costly and hard to organize.  "I lobbied
seven landlords in Northern Ontario," Mr. Beaulieu said. "Everybody is
in, but nobody wants to pay."

If they go to court, there is no guarantee they will win. Even if they
do win, Mr. Stewart said, it may not do them any good. They "may find
themselves three years hence with a 100-per-cent legal victory against
a bankrupt entity."


CREMATORY LITIGATION: GA Residents File Another Suit Over Desecrations
----------------------------------------------------------------------
Residents of Cleveland and Bradley County, Georgia have filed another
class action in the Superior Court of the State of Georgia relating to
the desecrations allegedly committed by Tri-State Crematory.  Last
week, federal investigators discovered more than 300 bodies that should
have been cremated, dumped in the crematory grounds.

The suit asserts claims pursuant to the Georgia Civil Practice Act on
behalf of all persons who paid for cremation services for their loved
ones and relatives to be performed at Tri-State.  According to the
suit, the claims are based upon:

     (1) outrageous conduct,

     (2) fraudulent conduct,

     (3) intentional infliction of emotional distress,

     (4) breach of contract,

     (5) gross and reckless misconduct,

     (6) violations of various Georgia and Tennessee laws and statutes
         governing cremations and business practices, and

     (7) indecent acts and omissions

The suit names as defendants:

     (i) T. Ray Brent Marsh, owner and operator of the Tri-State
         Crematory,

    (ii) Marsh Funeral and Cremation Services,

   (iii) Prime Succession Holdings,

    (iv) Prime Succession of Tennessee, and

     (v) Buckner-Rush Funeral Home

The suit claims that "Instead of performing the services in the solemn
manner and pursuant to the solemn duty and obligation owed to the
families, the defendants directly or by implication of law, breached
the most basic duties of contract and basic rules of common decency."

"The defendants intentionally and recklessly mistreated the human
bodies, stacked them together and returned containers filled with
ashes, sticks, insects, sand, gravel, ground masonry particles and
other things to the funeral homes for delivery to the families of the
deceased," the suit continues.

The suit claims the defendants violated the Tennessee Consumer
Protection Act and the Georgia Fair Business Practice Act, in that the
plaintiffs were consumers and the defendants provided goods and
services, and in doing so engaged in unfair and deceptive acts and
practices, according to a Cleveland Banner report.


HOLLYWOOD WRITERS: Revive Age Bias Suit V. Networks, Studios, Agencies
----------------------------------------------------------------------
Television writers filed a total of 23 separate class actions against
major Hollywood studios, TV networks and talent agencies for age
discrimination, after a federal judge dismissed a similar class action
last month for the reason that multiple defendants could not be sued in
a single action, Reuters reports.

The new suit is substantially similar to the original complaint filed
last year, alleging that older Hollywood writers were finding it
difficult to clinch writing jobs in a culture that is geared toward
younger audiences.

The plaintiffs contend that most movies, TV shows, videos and DVDs were
increasingly geared towards the youth sector.  According to Reuters the
suit contends that TV networks gear programming to fit 18-to 49-years-
old. Movie producers do likewise, seeing the chunk of their box office
profits from younger audiences.  

As a result, the suit contends that studios and networks want to hire
only young writers to create stories for youthful audiences, and that
each of the defendants engaged in a pattern or practice of refusing to
hire or represent them because of their age.  The suit adds that talent
agents only wanted to represent young talent leaving older writers with
little or no opportunities.

Defendants include all the major broadcast TV networks, NBC, ABC, CBS,
Fox, the WB and UPN, as well as movie studios such as Disney's
Touchstone Pictures, Warner Bros. and 20th Century Fox. Talent agencies
include the William Morris agency, Creative Artists Agency and
International Creative Management Inc., among others.

Plaintiffs' attorney Paul Sprenger told Reuters, "Judge Wilson told us
that we couldn't sue all of the defendants in one class action case, so
we have sued each of them separately."  He added that the Judge ruled
that federal law doesn't apply to talent agencies, so the group sued
the defendants in California State Superior Court.


HYPERION BOOKS: Offers Free Books To Settle Beardstown Club Books Suit
----------------------------------------------------------------------
Hyperion Books agreed to settle four class action suits filed by
purchasers of the Beardstown Ladies Club series, after discovering that
the investment strategies described in the book were false, according
to an Associated Press report.

The Walt Disney subsidiary published the books about a group of women
with an average age of 70 who formed an investment group in 1983 in
Beardstown, Illinois.  The books expounded on the women's stock market
strategies that allegedly helped them earn a 23.4% return over 10
years, starting 1984.  The books became bestsellers.  It was later
discovered the claim was false and the club revised their earnings to
9.1%.  In March 1998, the group apologized.

Under the settlement, purchasers of a Beardstown-themed book, video or
audiotape can get a new book from the Company for free, by presenting a
proof of purchase, either the book's Library of Congress catalogue
number page or the tape box.  This was revealed by plaintiffs' attorney
Andrew August, who told Associated Press, "We would never have gotten a
better result at trial.We were very pleased with the list of books."  
He added that the cover prices of the free books run as high as $25,
more than the price of hardback copies of the Beardstown.

The settlement has yet to be approved by a San Francisco State Court,
which has scheduled a fairness hearing for May 23,2002.


INGERSOLL-RAND COMPANY: Recalls 458T Air Compressors For Injury Risk
--------------------------------------------------------------------
Ingersoll-Rand Company is cooperating with the US Consumer Product
Safety Commission (CPSC) by voluntarily recalling about 458,000
portable air compressors sold between 1983 and 1991.  Internal
corrosion to the inner wall of the air receiver tank can cause the air
tank to unexpectedly rupture allowing pressurized air to suddenly and
forcefully escape, posing risk of injury to consumers.  The Company has
received 11 reports of sudden tank failure in these portable air
compressors.

The recalled portable compressors have single-phase electric motors up
to 3 hp or gasoline engines up to 8 hp with tank sizes up to 30
gallons. The compressors were marketed under various brand names,
including Ajax, Charge Air Pro, Energair, Guardian Power, MacTool,
Power Force, Rallye, Rand 4000, and Steel Driver.

The compressors have serial numbers beginning with the prefix "C" or
"DC."  The model numbers begin with the following prefixes - 1B, 1D,
1E, 1I, 2B, 2D, 2E, 3B, 3D, 3E, 4B, 4E, 5E, 5G, 15E, 23HP, 75, 75E,
250E, AB, AIR, AJ, C, CAP, CB, CL, CO, CP, CR, CS, CT, EA, GC, GP, HP,
HPC, IR, IRC, LTD, MT, OI, PF, RA, RL, RP, RY, SC, SDS, SE, THP, and
WB. Model and serial numbers are located on a plate or sticker attached
to the outside housing of the air compressor.  On some oil-less models,
the model and serial numbers are affixed to an internal floor baffle
beneath a removable plastic cabinet.

Hardware and construction supply stores nationwide sold the air
compressors from 1983 through 1991 for between $150 and $400.

Air compressor receiver tanks do not have an infinite life.  Tank life
is dependent upon several factors, some of which include operating
conditions, ambient conditions, proper installations, field
modifications, and the level of maintenance.  The exact effect of these
factors on air receiver life is difficult to predict.  Due to the
current age of these products, Ingersoll-Rand is voluntarily
undertaking this action to take these products out of service.

For further details, contact the Company by Phone: 877-552-2952 between
8 am and 5 pm ET Monday through Friday or visit the firm's Web site:
http://www.air.ingersoll-rand.com.


NEW ZEALAND: Car Dealers To Sue Transport Minister Over Import Rules
--------------------------------------------------------------------
New Zealand used car dealers are organizing a class action suit against
Transport Minister Mark Gosche, after he drafted new rules stating that
from April, imported cars will need built-in safety features to protect
against front-end crashes, the New Zealand National Business Review
reports.

Christchurch used car dealer, Gary Sefton, is spearheading the suit,
which more than 300 dealers have expressed interest in joining. Mr.
Sefton said the changes would exclude most Japanese cars made between
1994 and 1996 and would drive many dealers out of business.  According
to the National Business Review, the country's reputation as one of the
world's cheapest places to buy cars will change with the policies.

Minister Gosche has announced that new safety requirements include
frontal impact systems that were not introduced on Japanese-made cars
until 1994-6. Only cars meeting approved frontal impact standards will
be allowed registration for use on New Zealand roads from April.


OXYCONTIN LITIGATION: Purdue, Abbott Face Two Consumer Fraud Suits
------------------------------------------------------------------
Purdue Pharma, maker of the pain-killer Oxycontin, and Abbott
Laboratories, its marketing partner, face a class action filed on
behalf of OxyContin patients alleging that the two Companies defrauded
consumers by exaggerating the drug's effectiveness and minimizing its
addictive nature. The suits were filed in New Jersey and Washington,
DC.

According to the suits, Oxycontin's controlled-release feature does not
release consistent and sufficient amounts of its active ingredient,
oxycodone, to pain patients instructed to take the drug every 12 hours.
Patients are then left in a lurch during the latter stages of their 12-
hour dosing interval, and either wind up taking a higher dosage,
increasing their number of OxyContin dosages, or repeatedly taking
"rescue medications" consisting of other immediate release oxycodone
products, some of which Purdue also markets.

According to Neil Henrichsen of Henrichsen Seigel, PLLC, one of the law
firms bringing the suit, "Purdue and Abbott heralded OxyContin as a
`significant advance' and the `first 12-hour oxycodone analgesic.'  
However, they knew that the drug didn't work that well, and that most
patients would need to take it three times a day, or even more."

The suits also recite several instances where the two companies
downplayed the addiction risks of OxyContin. For instance, in a
videotape created by Purdue to be played for patients, the narrator
seeks to alleviate patient fears of addiction by stating, "Some
patients may be afraid of taking opioids because they are perceived as
too strong or addictive. But that is far from actual fact. Less than 1%
of patients taking opioids actually become addicted."

"That's totally untrue," according to Stephen D. Annand of Cohen
Milstein Hausfeld and Toll. "Purdue and Abbott substantially
understated the addiction risks to increase sales of OxyContin. They
spread the word throughout the medical community that this drug worked
well, with little risk of addiction. They knew from studies they
themselves sponsored, that most patients needed to take OxyContin more
than twice a day, and that many would end up becoming addicted and
abusing the drug."

The suits seek refunds and reimbursements for OxyContin purchasers who
obtained the drug through a legal prescription in New Jersey or
Washington, DC. The suits do not cover patients seeking to assert
personal injury claims, which would have to be pursued separately.

"Tragically," says Mr. Annand, "while the Companies purport to be
virtual saviors to millions of pain patients, their defective product,
and their aggressive and deceptive marketing of it, have ravaged the
very patient population they say they seek to serve."

For more information visit the firm's Web sites: http://www.cmht.com
(Cohen Milstein Hausfeld and Toll) or http://www.hslawyers.com
(Henrichsen Siegel PLLC.)


PREPAID LEGAL: Former Members File Suit For Fraud, Breach of Contract
---------------------------------------------------------------------
Prepaid Legal Services, Inc. faces multiple class actions commenced in
the second quarter of 2001 against the Company, certain of its sales
associates and other unnamed defendants. The suits were filed in
Alabama State courts by current or former members of the Company
alleging breach of contract and fraud in connection with the sale of
memberships.  

As of January 30, 2002, the Company was aware of 20 separate lawsuits
involving approximately 110 plaintiffs that have been filed in multiple
counties in Alabama and it is possible that additional cases will be
filed.  

The Company denies the allegations in the suits.  However, these cases
are all in the preliminary stages and the ultimate outcome is not
determinable.


PREPAID LEGAL: Faces Suit Relating To Commissions Practices in Oklahoma
-----------------------------------------------------------------------
Prepaid Legal Services, Inc. faces a class action filed in the District
Court of Canadian County, Oklahoma on behalf of all of the Company's
sales associates, relating to the Company's practices of advancing
commissions to sales associates.  The suit alleges violations under
the:

     (1) Oklahoma Consumer Protection Act,  

     (2) Oklahoma Uniform Consumer Credit Code and

     (3) breach of contract

The Company denies the allegations, raising affirmative defenses and
intends to vigorously defend this case. While the ultimate outcome of
these proceedings is not determinable, the Company does not currently
anticipate that these contingencies will result in any material adverse
effect to its financial condition or results of operation.


RACING CHAMPIONS: CA Court Yet To Grant Certification to Consumer Suit
----------------------------------------------------------------------
The California State Court has yet to certify as a class action the
lawsuit filed against Racing Champions South, Inc., and several other
defendants, on behalf of all US residents who purchased sports cards
manufactured, licensed, marketed, sold or distributed by any defendant
within a time period of up to four years.

The suit alleges that RCS has violated the California unfair trade
practices and consumer protection laws by selling packs of sports
trading cards containing random assortments of varying values.

In May 2001, the Court denied the defendants' motion for summary
judgment.  The defendants promptly filed an appeal with the California
Supreme Court, but in September 2001, the Supreme Court denied
permission to the defendants to appeal the denial of their motion for
summary judgment.  The plaintiffs' motion for class certification is
currently pending with the trial court.

RCS disputes these claims and says it intends to vigorously defend its
position, although no assurance can be given as to the outcome of this
matter.  RCS is also confident that the probable resolution of such
contingencies will not materially affect its financial position or
operations.


ROTO ZIP: Voluntarily Recalls 1.9M Handheld Saws For Injury Hazard
------------------------------------------------------------------
Roto Zip Tool Corporation is cooperating with the US Consumer Product
Safety Commission (CPSC) by voluntarily recalling about 1.9 million
handheld saws. The handles on these saws can separate from the body,
causing the operator to be cut.  The Company has received 360 reports
of loose or separating handles on the saws. As a result, there have
been 19 reports of injuries to consumers, including some cuts requiring
stitches.

The recall includes Revolutionr, RebelT and SolarisT model Spiral SawT
power tools. The brand name and "ROTOZIP SPIRAL SAW" are written on the
side of the tools. The saws are mostly black or red.  The recalled saws
include the serial numbers listed below:

     (1) Saw Model: Revolutionr, Serial Number Range: 01 through
         1,145,000,

     (2) Saw Model: RebelT, Serial Number Range: 01 through 415,000,

     (3) Saw Model: SolarisT, Serial Number Range: 01 through 270,000

Home, hardware and department stores, and infomercials sold these saws
nationwide from December 1999 through January 2002 for between $50 and
$190.

For more details, contact the Company by Phone: 800-920-1467 between 7
am and 7 pm CT any day of the week, or visit the firm's Web site:
http://www.rotozip.com


RR DONNELLEY: Appealing Statute of Limitations Ruling in Race Bias Case  
-----------------------------------------------------------------------
RR Donnelley and Sons, Co. faces a consolidated class action pending in
the US District Court in Chicago, Illinois on behalf of its current and
former African-American employees, accusing the Company of racial
discrimination and violation of the Civil Rights Act of 1871, as
amended, and the US Constitution, relating to the closure of the
Company's Chicago catalog operations in 1993.

The suit arose from two class actions commenced in November 1996, and
June 1998, making similar discrimination claims.  The suits further
alleged that the Company retaliated against them for filing of
discrimination charges or otherwise complaining of race discrimination.

In April, 2001, in an amended opinion, the Court certified three
plaintiff classes applicable to the two actions:

     (1) a class consisting of African-American employees discharged in
         connection with the shutdown of the Chicago catalog
         operations;

     (2) a class consisting of African-American employees of the
         Chicago catalog operations after November 1992 who were other
         than permanent employees; and

     (3) a class consisting of African-Americans subjected to an
         allegedly hostile working environment at the Chicago catalog
         operations, the Chicago Financial, Pontiac or Dwight,
         Illinois, manufacturing operations.

The Judge also consolidated both cases for pretrial purposes.  In
June 2001, the Court ruled that a four-year, rather than a two-year,
statute of limitations applied to classes one and three.  The Company
filed an appeal regarding this ruling, and in August 2001, the
Appellate Court granted the Company leave to appeal the issue of the
appropriate statute of limitations to apply to the first and third
plaintiff classes.

The Company states in a disclosure to the Securities and Exchange
Commission its intention to mount a vigorous defense to the suit.


RR DONNELLEY: July Date Set For Age Discrimination Claims Hearing
-----------------------------------------------------------------
Older employees of RR Donnelley and Sons Company filed a class action
in Chicago Federal Court, alleging that they were discriminated against
in selection for termination upon the closing of the Chicago catalog
operations.  The suit also alleges that the company violated the
Employee Retirement Income Security Act (ERISA) in determining benefits
payable to retiring or terminated employees.

In August 1997, the Court granted class certification to the suit.  The
court later ruled on summary judgment motions of the parties in an
October 2001 order, further clarified by an order dated January 25,
2002. While ruling that permanent employees who received special
augmented separation pay in conjunction with the closure of the Chicago
catalog operations were not eligible for regular separation pay, and
that special augmented separation pay was not payable to employees
other than those considered permanent employees at the date of closure,
the Judge ruled that permanent employees who elected to receive
enhanced retirement benefits were also eligible to receive regular
separation pay. The order also set for trial in July 2002, the claims
related to age discrimination.

The Company says it has meritorious defenses to the suit and vows to
vigorously oppose.  However, it made no assurances that a decision will
be made in their favor.


RR DONNELLEY: Former Employees Claims Re ERISA Violations Denied
----------------------------------------------------------------
RR Donnelley and Sons Company faces yet another class action filed in
Chicago Federal Court on behalf of certain of the Company's employees
affected by the Chicago catalog operations shutdown in 1993, alleging
violations of the Employee Retirement Income Security Act (ERISA).

The suit alleges that enhanced pension benefits were not paid to
plaintiffs and that plaintiffs are being required to contribute to the
costs of retiree medical coverage, both in violation of plan documents
and ERISA.

As of February 1, 2002, administrative review of the plaintiffs' claims
was completed, and the claims denied.  The suit relates primarily to
the circumstances surrounding the closing of the Chicago catalog
operations. The Company believes that it acted properly in the closing
of the operations.

The Company further asserts that it has a number of valid defenses to
all of the claims made and will vigorously defend its actions.  
However, management is unable to make a meaningful estimate of any loss
that could result from an unfavorable outcome of any of the pending
cases.


UNITED STATES: Group Seeks Compensation For Mistakenly Shot-Down Plane
----------------------------------------------------------------------
A group of Baptists, whose members and relatives perished after a CIA-
operated surveillance plane shot down the missionary group's Cessna in
Peru after mistakenly identifying it as a possible drug-smuggling
flight, is asking for $35 million in compensation from the US
government, the Associated Press reports.

According to Donald Davis, corporate counsel for the group, talks are
ongoing between the group and officials from the CIA and Justice
Departments to reach a settlement.  The group includes Jim Bowers,
whose wife, Veronica Bowers, and infant daughter, Charity, were killed,
and the Association of Baptists for World Evangelism.  Mr. Davis told
AP, "Since then we've not received any communication other than
promises to meet again.We have yet to receive any counteroffer or
anything that might be a proposal."

An inquiry into the tragedy has revealed that "procedural errors,
language problems and overloaded communications system" led to the
accidental downing.  The US crew reportedly realized the flight was
innocent but were unable to stop the Peruvians from shooting.

According to Associated Press, Bill Harlow, CIA spokesman, declined to
comment and dismissed allegations that the government was seeking to
delay compensation.  Rep. Peter Hoekstra, R-Mich., and Sen. Arlen
Specter, R-Pa., planned to meet with the CIA and State Department "to
answer the question, `What's the holdup here?'"  Mr. Hoekstra added,
"Our government and the Peruvian government collaborated in the
shooting down of an innocent plane.This thing needs to be settled."


WEST VIRGINIA: House Committee Endorses Bill Limiting Insurance Suits
---------------------------------------------------------------------
Handing a major victory to the insurance industry and a rebuke to West
Virginia's Supreme Court, a House Committee recently endorsed a bill
designed to revoke effects of the court's decision in the case of
Mitchell v. Broadnax (Broadnax), the Associated Press reported
recently.

A special 13-member Committee approved a sweeping measure that says the
Justices wrongly interpreted a 1979 state insurance law by their ruling
in Broadnax, the bill would wipe out all lawsuits based on that
decision.  In the case of Mitchell v. Broadnax, decided in 2000, the
Court essentially held that exclusions in coverage were void without
an adjustment in premiums for less coverage.  Insurers say that is
counter to the way policies are written in 49 states, and insurance
lobbyists flocked to West Virginia seeking legislation designed to
weaken the effects of Broadnax.

The bill would prevent three types of lawsuits by policyholders
claiming they should be covered because their insurer failed to
explicitly spell out a coverage exclusion:

     (1) first, it blocks class actions by those seeking rebates of
         past premiums;

     (2) second, it eliminates "Broadnax" lawsuits from the time of the
         bill's signing;

     (3) third (and most controversially), it extinguishes all lawsuits
         brought in the last decade that seek to use the Supreme
         Court's Broadnax interpretation.

Opponents of the bill say the language extinguishing existing cases is
unconstitutional.  The bill's sponsor, House Judiciary Committee
Chairman Jon Amores, D-Kanawha, takes a different position, saying, "If
Broadnax was wrongly decided, it was wrong in the past as well as in
the future.  Is the language banning retroactive cases constitutional?  
I'll leave that to the courts."

The bill would achieve its objective of eliminating the operation of
Broadnax, as to past, present and future claims by mandating the use of
an administrative process:

     (i) any policyholder who claims his/her exclusions are ill-defined
         can seek relief only from the state Insurance Commission, not
         the courts;

    (ii) the Commission can determine that a claimant's rates are
         excessive and can award attorney fees and costs, but claimants
         cannot obtain other relief  - not damages nor even a
         revocation of a policy the Commission finds discriminatory

Opponents succeeded in adding a provision blocking insurers from
writing exclusions relating to uninsured and underinsured coverage on
vehicles owned by the claimant but not covered by his/her policy.  A
similar exclusion inspired the Broadnax lawsuit in the first place.  
Insurers call that provision a poison pill that might block their
support for the entire bill when it reaches the House floor.

                            Securities Fraud

ALCATEL ALSTHOM: Settlement Reached Over 1998 Share Price Downturn
------------------------------------------------------------------
Telecommunications company Alcatel faces a consolidated class action
pending in the United States District Court for the Eastern District of
Texas, in connection with the fall in the share price which followed
the Company's September 1998 announcement of its half-year results.

The consolidated suit arose from several class actions challenging the
accuracy of certain public disclosures made by the Company regarding
its financial condition during the first nine months of 1998.  The
suits were filed on behalf of persons who:

     (1) acquired Company American Depository Shares (ADSs) in
         connection with its acquisition of DSC Communications
         Corporation in September 1998;

     (2) purchased Company ADSs between March 19, 1998 through
         September 17, 1998, or

     (3) acquired call and put options on Company ADSs between
         March 19, 1998 and September 17, 1998.

The Company moved to dismiss the complaints brought by the two
categories of plaintiffs. In November 1999 and again in June 2000, the
Court dismissed the complaint of those persons who acquired ADSs and
call and put options between March 19, 1998 and September 17, 1998.
Those plaintiffs have appealed.  The Company contests the merit of this
claim and intends to continue vigorously defending against it

The claims asserted by the other group of plaintiffs, representing
those parties that received ADSs during the exchange offer by the
Company to acquire DSC were partially dismissed by the court.
Thereafter, the parties conducted pre-trial discovery on the
remaining claims, and the Company moved for summary judgment seeking
dismissal of the said suit.  

Prior to any ruling on the summary judgment, the Company and the
plaintiffs entered into an agreement, which provides for the settlement
of the litigation and was approved by the Court on December 18,
2001.  The Company continues to deny any liability or wrongdoing with
respect to this litigation.


AREMISSOFT CORPORATION: NJ Court Consolidates Multiple Securities Suits
-----------------------------------------------------------------------
The United States District Court for New Jersey consolidated the seven
class actions pending against AremisSoft Corporation and two of its
officers, alleging federal securities violations.  Gunner Torderlund
commenced the first suit in May 2001, after which six similar suits
were filed, on behalf of all persons who purchased the Company's common
stock between December 17, 1999 and May 17, 2001.

The suits allege that the defendants violated 10(b) of and Rule 10b-5
under the Exchange Act and additionally that the individual defendants
are liable as controlling persons under 20(a) of that Act.

The plaintiffs stipulated among themselves as to the appointment of
George D. Bjurman and Associates, Ralph DeLuca, Keystone Trading
Partners, and Andy Win as lead plaintiffs and the appointment of a lead
counsel, and successfully moved to consolidate the actions on August
27, 2001


CORNING INC.: Weiss Yourman Initiates Securities Suit in W.D. New York
----------------------------------------------------------------------
Weiss and Yourman commenced a securities class action against Corning,
Inc. (NYSE:GLW) and certain of its officers and directors was commenced
in the United States District Court for the Western District of New
York, on behalf of purchasers of Company securities between September
27, 2000 and July 10, 2001.  The suit names as defendants the Company
and:

     (1) Roger G. Ackerman,

     (2) Katherine A. Asbeck and

     (3) James B. Flaws

The suit alleges violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The complaint alleges that defendants issued false and misleading
statements, which artificially inflated the stock.

For further details, contact James E. Tullman, David C. Katz, and/or
Mark D. Smilow by Mail: The French Building, 551 Fifth Avenue, Suite
1600 New York NY 10176 by Phone: 888-593-4771 or 212-682-3025 or by E-
mail: info@wynyc.com


ELAN CORPORATION: Carr Tabb Commences Securities Fraud Suit in N.D. GA
----------------------------------------------------------------------
Carr, Tabb, Pope & Freeman, LLP initiated a securities class action
suit against Elan Corporation, PLC (NYSE:ELN) and several of the
Company's senior executives on behalf of all persons who purchased the
American Depository Receipts (ADRs) and corresponding common stock of
Elan during the period between April 30, 1999 to February 4, 2002,
inclusive.

The suit, filed in the Gainesville, Georgia Division of the United
States District Court for the Northern District of Georgia, alleges the
defendants caused Elan to falsely report favorable financial results
that were in violation of generally accepted accounting principals
(GAAP) by, among other things, improperly recognizing revenues from
joint ventures and/or improperly recognizing income related to deals
with companies in which the Company had invested, and/or concealing
material related-party transactions.

Revelations about the defendants' fraud came to light on January 30,
2002 and February 4, 2002. On January 30, 2002, The Wall Street Journal
published an article concerning the Company's accounting methods
entitled, "Research Partnerships Give Irish Drug Maker Rosy Financial
Glow."  Despite having announced on January 28, 2002 (just two days
prior to the WSJ Article) that it was "comfortable" with the analysts'
consensus on its earnings, the Company announced on February 4th that
its performance would not be anywhere close to analysts' expectations
with earnings for the 4th quarter 2001 dropping 84% and its profits for
fiscal year 2001 falling far short of analysts' estimates.

The suit further alleges that, as a result of these misrepresentations,
Elan stock traded as high as $65 during the class period. On February
4th, the market price of Company ADRs dropped $15.10 per share, losing
over 40% of their value in one day of trading.

For more information, contact Pitts Carr or Render C. Freeman by Phone:
888-755-1649 or by E-mail: pcarr@ctpflaw.com. Inquiries by e-mail
should include mailing address and telephone number.


HANOVER COMPRESSOR: Faruqi Faruqi Initiates Securities Suit in S.D. TX
----------------------------------------------------------------------
Faruqi and Faruqi LLP commenced a securities class action in the United
States District Court for the Southern District of Texas on behalf of
all purchasers of Hanover Compressor Company (NYSE:HC) securities
between November 8, 2000 and January 28, 2002, inclusive.

The suit charges defendants with violations of federal securities laws
by, among other things, issuing a series of materially false and
misleading press releases concerning the Company's financial results
and business prospects.

Specifically, the complaint alleges that Hanover 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 quarter and fourth quarters of fiscal
2000.

Moreover, it is also alleged that the Company was engaged in improper
and/or suspect accounting practices which affected the accuracy of its
financial results and that, contrary to the statements filed with the
SEC during the class period, the Company's financial statements issued
during the class period were not prepared in accordance with generally
accepted accounting principles (GAAP). As a result, the Hanover's
securities were artificially inflated throughout the class period.

For more details, contact Anthony Vozzolo by Mail: 320 East 39th
Street, New York, NY 10016 by Phone: 877-247-4292 or 212-983-9330 by E-
mail: Avozz@faruqilaw.com or visit the firm's Web site:
http://www.faruqilaw.com


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 who purchased or otherwise obligated themselves
to purchase the Company's securities during the period from May 12,
2001 through January 7, 2002.

This complaint differs from previously filed class actions against the
Company, in that it is filed on behalf of all persons or entities who
purchased or obligated themselves to purchase any Company securities,
and is not limited to purchasers of common stock.

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 ImClone's 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 (FDA). 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;" and

     (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, ImClone 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 its securities.

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, ImClone 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 clinical trials' problems 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, which admitted
that ImClone "may need to conduct new trials of.ERBITUX, potentially
delaying the treatment's launch by months."

For further details, 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 Web site:
http://www.bergermontague.com


IRVINE SENSORS: Bernstein Liebhard Lodges Securities Suit in C.D. CA
--------------------------------------------------------------------
Bernstein Liebhard and Lifshitz LLP commenced a securities class action
in the United States District Court for the Central District of
California on behalf of persons who acquired Irvine Sensors Corporation
(NASDAQ: IRSN) common stock between January 6, 2000 and September 15,
2001, inclusive.

The suit alleges that the Company, a high-tech research and development
firm, along with certain of its officers and directors, violated
federal securities laws, by repeatedly maintaining throughout the class
period, that Silicon Film Technologies, Inc., a majority-owned
subsidiary, 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, ISC abruptly announced that SFI had suspended operations
and was considering bankruptcy, essentially ending the EFS-1 project.  
This news caused its stock price to plummet from a class period high of
$14 a share to a low of 12 cents.

According to the suit, 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 securities at inflated prices.
     
For further details, contact Linda Flood, Director of Shareholder
Relations, by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: 800-217-1522 or 212-779-1414 by E-mail: IRSN@bernlieb.com or
visit the firm's Web site: http://www.bernlieb.com


LASON INC.: Multiple Securities Suits Remain in Preliminary Stage
-----------------------------------------------------------------
Lason, Inc. and certain of its executive officers face several
securities suits commenced on December 1999 in various United States
federal courts, on behalf of purchasers of the Company's shares from
August 14, 1998, through December 17, 1999.

The suits generally allege that the defendants made public statements
concerning the Company's revenues and earnings and inflated the
market price of the shares of its common stock. The suits allege
violations of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder, and one complaint alleges violations of the
Securities Act of 1933.

The suits seek unspecified damages allegedly incurred as a result of
the decline in the market price of shares of Lason's common stock after
it announced on December 17, 1999 that it expected lower fourth quarter
earnings per share as compared with consensus analysts' estimates.

These actions are in a preliminary stage. However, the Company
believes, based on the advice of outside legal counsel, that it and the
named officers have substantial defenses to the plaintiffs' claims, and
intends to vigorously defend these claims. While the final resolution
of this litigation cannot be presently determined, management does not
believe it will have a material adverse effect on Lason's business or
the future consolidated financial statements, although such adverse
effect could be possible.


NVIDIA CORPORATION: Bernstein Liebhard Files Securities Suit in N.D. CA
-----------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP initiated a securities class
action in the United States District Court for the Northern District of
California on behalf of all persons who acquired NVIDIA Corporation
(NASDAQ: NVDA) common stock between February 15, 2000 and February 14,
2002, inclusive.

The suit charges the Company and certain of its officers and directors
with violations of the Securities Exchange Act of 1934.  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-3rd quarter 2001, NVIDIA 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.
     
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 details, contact Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: 800-217-1522 or 212-779-1414 by E-mail:
NVDA@bernlieb.com or visit the firm's Web site: http://www.bernlieb.com


OXFORD HEALTH: Securities Violations Suit Discovery Ongoing in S.D. NY
----------------------------------------------------------------------
Discovery is proceeding in the consolidated class action pending in the
United States District Court for the Southern District of New York
against Oxford Health Plans, Inc. and certain of its officers, alleging
violations of federal securities laws, relating to the decline of the
Company's share price in October 1997.

The share price decline spawned more than fifty securities suits
initially filed in the United States District Courts for the Eastern
District of Arkansas, the Eastern District of New York, the Southern
District of New York and the District of Connecticut.

In April 1998, the Judicial Panel on Multidistrict Litigation
transferred these actions together for coordinated or consolidated
pretrial proceedings in the United States District Court for the
Southern District of New York before Judge Charles L. Brieant.

Judge Brieant consolidated the class actions for pretrial purposes
under the caption In re Oxford Health Plans, Inc. Securities
Litigation.  In October 1998, the co-lead plaintiffs filed a
consolidated and amended class action, naming as defendants the Company
and:

     (1) Oxford Health Plans (NY), Inc.,

     (2) KPMG LLP, the Company's outside independent auditor during
         1996 and 1997, and

     (3) several current or former Company directors and officers.

The amended suit purports to be brought on behalf of purchasers of the
Company's common stock from November 6, 1996 through December 9, 1997,
purchasers of Oxford call options or sellers of Oxford put options
during the class period and on behalf of persons who, during the class
period, purchased the Company's securities contemporaneously with sales
of its securities by one or more of the individual defendants.  The
amended suit:

     (i) alleges that defendants violated Section 10(b) of the Exchange
         Act and Rule 10b-5 promulgated thereunder by making false and
         misleading statements and failing to disclose certain
         allegedly material information regarding changes in the
         Company's computer system and the Company's membership,
         enrollment, revenues, medical expenses and ability to collect
         on its accounts receivable;

    (ii) asserts claims against the individual defendants alleging  
         controlling person liability under Section 20(a) of the
         Exchange Act, and

   (iii) alleges violations of Section 20A of the Exchange Act by
         virtue of the individual defendants' sales of shares of
         the Company's common stock while the price of that common
         stock was allegedly artificially inflated by allegedly false
         and misleading statements and omissions.

In March 1999, the defendants asked the Court to dismiss the
consolidated suit, but Judge Brieant denied these motions in 2000.  The
Court later certified the class in the suit and named five class
representatives. The parties expect to complete all discovery,
including expert discovery, in the summer of 2002, after which the
Court will hold a status conference to discuss the scheduling of a
trial date.


QWEST COMMUNICATIONS: Shareholder Files Suit Over KMC Telecom Deal
------------------------------------------------------------------
Quest Communications International, faces a class action suit filed by
one of its shareholders, in the US District Court, in Denver, alleging
that a deal between the Company and KMC Telecom Holdings, Inc.
artificially inflated Company stock prices and harmed shareholders,
the Associated Press recently reported.  The lawsuit further alleged
that the deal was intended to keep some of the Company's debt off the
books.

Plaintiff Alice Brody of New York City said she bought 100 shares of
the Quest's stock and wants to be compensated for the damages she
claims she suffered.  The suit seeks to cover everyone who bought the
Company's stock from April 19, 2000 through February 12, 2002.  The
suit did not specify the alleged losses, and Ms. Brody's Denver lawyer,
Charles Lilley, did not return an after-hours phone call, according to
Associated Press.

The Company has defended the transaction, in which the Denver-based
company sold $450 million in equipment to KMC and agreed to pay
hundreds of millions of dollars for Internet services on that
equipment.  The Company said it used standard accounting principles to
record the deals and described them as conventional take-or-pay
commitments rather than transactions involving off-balance-sheet debt.  

Off-balance-sheet debt has come under closer scrutiny after the
collapse of Enron Corporation, which is being accused of hiding debt
through various off the books transactions.

"We disclosed our Internet equipment sales and the KMC transaction
appropriately in 2001," Company spokesman Steve Hammack said.  The deal
increased the value of Qwest shares because it allowed the Company to
provide certain services more quickly. It allowed us to save some $400
million in capital expenditures," he added.  


QWEST COMMUNICATIONS: Weiss Yourman Initiates Securities Suit in CO
-------------------------------------------------------------------
Weiss and Yourman commenced a securities class action against Qwest
Communications International, Inc. (NYSE:Q) and certain of its officers
was commenced in the United States District Court for the District of
Colorado, on behalf of purchasers of Company securities between April
19, 2000 and February 13, 2002.  The suit names as defendants the
Company and officers Joseph P. Nacchio and Robin A. Szeliga.

The suit asserts claims against the defendants for violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder. The complaint alleges that Quest
issued false and misleading statements, which artificially inflated the
stock.

For more information, contact Mark D. Smilow, James E. Tullman and/or
David C. Katz by Mail: The French Building, 551 Fifth Avenue, Suite
1600, New York, New York 10176, by Phone: 888-593-4771 or 212-682-3025
or by E-mail: info@wynyc.com


RENT-A-CENTER INC.: Bernstein Liebhard Lodges Securities Suit in TX
-------------------------------------------------------------------
Bernstein Liebhard and Lifshitz, LLP initiated a securities class
action on behalf of all persons who acquired Rent-A-Center, Inc.
(NASDAQ: RCII) securities between April 25, 2001 and October 8, 2001,
Inclusive, in the United States District Court for the Eastern District
of Texas, Texarkana Division, against the Company and:

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

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

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

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

The suit charges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of materially false and misleading
statements to the market during the class period.  

For example, on April 25, 2001, Rent-A-Center issued a press release
announcing record results for the first quarter of 2001 and
highlighting its resilience in a weakening economy.  The
representations in the press release were, according to the allegations
of the suit, materially false and misleading because the Company did
not disclose that its expenses were rising dramatically as the Company
attempted to combat weakening demand with deep discounts and
promotions.  

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

Subsequently, on October 8, 2001, only five months after the secondary
offering, Rent-A-Center issued a press release announcing that earnings
for the third and fourth quarter of 2001 would be significantly less
than the Company's previous guidance to the market, due to rising
expenses.  

In response to this announcement, Company stock price dropped by 19% in
one day on heavy trading volume.

For more details, contact Ms. Linda Flood, Director of Shareholder
Relations, by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: 800-217-1522 or 212-779-1414 by E-mail: RCII@bernlieb.com or
visit the firm's Web site: http://www.bernlieb.com.


RHYTHMS NETCONNECTIONS: Bernstein Liebhard Lodges Securities Suit in CO
-----------------------------------------------------------------------
Bernstein Liebhard and Lifshitz LLP initiated a securities class action
on behalf of all persons who acquired Rhythms NetConnections, Inc.
(NASDAQ: RTHMQ) securities between January 6, 2000 and
April 2, 2001, inclusive, in the United States District Court for the
District of Colorado against:

     (1) Catherine M. Hapka,

     (2) Steve Stringer,

     (3) Scott C. Chandler, and

     (4) John W. Braukman

The suit charges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of materially false and misleading
statements to the market between January 6, 2000 and April 2,
2001.  

Throughout the class period, the 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:

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

    (ii) 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;

   (iii) 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 its cash reserves;

    (iv) 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
         through 2001, as it had earlier guaranteed; and

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

While in possession of the true facts about the Company and its
business, the individual defendants and other insiders collectively
sold 600,000 shares of common stock for gross proceeds in excess of $16
million. Over $12.6 million alone was received by Ms. Hapka, and the
Company raised hundreds of millions of dollars in preferred stock sales
and debt issuances.

For more information, contact Linda Flood, Director of Shareholder
Relations by Mail: 10 East 40th Street, New York, New York 10016 by
Phone: 800-217-1522 or 212-779-1414 by E-mail: RTHMQ@bernlieb.com or
visit the firm's Web site: http://www.bernlieb.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-
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Information contained herein is obtained from sources believed to be
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