/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/020318.mbx C L A S S A C T I O N R E P O R T E R Monday, March 18, 2002, Vol. 4, No. 54 Headlines ALABAMA: Jackson County To Benefit From Child Welfare Consent Decree CANADA: Hamilton To Compensate 3,000 Residents For 1997 Plastimet Fire CITIZENS COMMUNICATIONS: $5.5M Power Outages Settlement Awaits Approval FLORIDA: Group Charges DCF With Violating Disabled Care Suit Settlement FORD MOTOR: Judge Approves US$10.5 Million Settlement To Age Bias Suit INTEGON GENERAL: Consumers Sue For Inferior Replacement Parts Use OKLAHOMA BOMBING: Suit Charges Iraq With Planning, Financing Attack ROSE ART: Voluntarily Recalls 124,000 Soap Making Kits For Burn Hazard TERRORIST ATTACK: Amnesty International Protests "Illegal" Detentions TOXIC MOLD: Workers File Suit V. Parish Due To Toxic Mold in Building TRAVEL AGENCIES: Settles Suit Over Deceptive Discount Travel Programs Securities Fraud ACTRADE FINANCIAL: Schiffrin Barroway Lodges Securities Suit in S.D. NY ACTRADE FINANCIAL: Berger Montague Initiates Securities Suit in S.D. NY ALLIED IRISH: Marc S. Henzel Commences Securities Suit in S.D. NY CORNELL COMPANIES: Marc Henzel Commences Securities suit in S.D. TX CORNING INC.: Schiffrin Barroway Commences Securities Suit in W.D. NY ELAN CORPORATION: Marc Henzel Commences Securities Suit in S.D. NY ELAN CORPORATION: Kaplan Fox Commences Securities Suit in S.D. NY GILAT SATELLITE: Glancy Binkow Commences Securities Suit in E.D. VA GILAT SATELLITE: Marc Henzel Initiates Securities Suit in E.D. NY HANOVER COMPRESSOR: Schoengold Sporn Lodges Securities Suit in S.D. TX HEWLETT PACKARD: Hearings On Dismissal of Federal, State Cases Set LUMENIS LTD.: Wolf Haldenstein Initiates Securities Suit in S.D. NY LUMENIS LTD.: Schiffrin Barroway Commences Securities Suit in S.D. NY LUMENIS LTD.: Marc Henzel Initiates Securities Fraud Suit in S.D. NY LUMENIS LTD.: Cauley Geller Commences Securities Fraud Suit in S.D. NY MEDI-HUT CO.: Leo Desmond Commences Securities Suit in S.D. New York MEDI-HUT CO.: Marc Henzel Commences Securities Fraud Suit in New Jersey NVIDIA CORPORATION: Kaplan Fox Initiates Securities Suit in N.D. CA PNC FINANCIAL: Kaplan Fox Commences Securities Fraud Suit in S.D. PA SMARTTALK TELESERVICES: Partial Settlement Approved In Securities Suits SYMBOL TECHNOLOGIES: Berman DeValerio Files Securities Suit in E.D. NY SYMBOL TECHNOLOGIES: Marc Henzel Initiates Securities Suit in E.D. NY SYNSORB BIOTECH: Cauley Geller Commences Securities Suit in S.D. NY SYNSORB BIOTECH: Schiffrin Barroway Lodges Securities Suit in S.D. NY TORCH OFFSHORE: Marc Henzel Lodges Securities Fraud Suit in E.D. LA ********* ALABAMA: Jackson County To Benefit From Child Welfare Consent Decree -------------------------------------------------------------------- Jackson County, Alabama's Department of Human Resources (DHR) could possibly benefit from a consent decree that settled a 1998 class action against the State, known as the "RC Case," DHR Director, Drenda King, told the Sentinel. The suit was filed on behalf of an 8-year-old Jefferson County boy with the above initials RC, and 1,500 other Alabama children, whose rights were violated when the state failed to provide them with family preservation services and specialized care for his emotional needs. In May, 1991, the State forged a consent decree establishing the standards of its child protective services and foster care system. The decree established measures, which are to be implemented by October 2002: (1) Children shall live with their families unless their safety cannot be protected with the provision of services; (2) Individualized services shall be based on an analysis of strengths and needs of the child and family; (3) Children who are living with their families or in foster care shall have access to services that are comprehensive and include concrete services. If necessary, services shall be created to meet the needs of children and families; (4) Individualized service plans will be realistic, strength based and changed as family needs change; (5) Children, families, foster families and others involved in the family's life shall have a voice in the planning process; (6) Services will be coordinated, therapeutic and culturally responsive; (7) Permanency and stability in children's lives will be promoted; (8) Services will be delivered in the most normalized setting appropriate to the family's strengths and needs; (9) Children will have access to their families through visitation, phone and mail, and other communication; (10) Children, families and foster families will have access to advocacy, including attorneys; (11) Children will be free from excessive medication, seclusion and restraint, and shall receive appropriate behavior management; (12) Older children will receive transition and independent living skills; (13) Needs of sex abuse victims will be met; (14) Child abuse and neglect allegations will be investigated quickly; Ms. King told the Sentinel the counties were implemented in stages to undergo the changes, and Jackson County was in stage 2. "We began the conversion process in 1995," she said. "We were declared converted by the court monitor in January of 1997. We were one of the first counties. I believe that is because Jackson County was already practicing good child welfare. We needed more money and more employees to carry out the programs, and the lawsuit gave us that." Because of this, Ms. King expects positive developments in child-care for Jackson County. She added that the state has been a model for others in child welfare reform, as many similar "RC Cases" are now pending in different states. CANADA: Hamilton To Compensate 3,000 Residents For 1997 Plastimet Fire ---------------------------------------------------------------------- The province of Hamilton will compensate more than 3,000 of its residents for the physical and emotional damages they suffered in the wake of the 1997 fire, which broke out on July 9, 1997 in the Wellington Street North Plastimet recycling plant. The fire caused a huge, toxic plume to hover over Hamilton, causing residents to evacuate their homes. Lead plaintiff Jay Cotter filed the suit on behalf of his family and his neighbors. He told thestar.com the suit was never about money, but was about focusing his anger on the politicians and business owners who had put the environment and the safety of citizens at such great risk. "There were numerous people in the north end who worried about these abandoned or derelict factories. And basically, the city just allowed them to operate. The only time they were fined was when people from around here would take the time to investigate and find out about things that were going on illegally." Superior Court Justice David Crane endorsed the payment of US$175 to more than 3,000 claimants and eight businesses. "This has been a long, difficult case and a somewhat precedent-setting mass tort claim. Certainly, this community felt a grievance and a process was taken that hopefully made a reasonable response to that grievance," he said. CITIZENS COMMUNICATIONS: $5.5M Power Outages Settlement Awaits Approval ----------------------------------------------------------------------- Citizens Communications, Inc. agreed to settle for US$5.5 million a class action pending in the Santa Cruz County Court, Arizona, which arose after a series of power outages hit Santa Cruz County from January 1,1997 to January 31,1999. The suit was filed on behalf of all of the Company's electric customers in the county. The Company is awaiting the Court's approval of the settlement, which is expected to occur on the first half of 2002. The Company does not admit guilt or wrongdoing in the settlement, and believes that the ultimate resolution of the suit will not have a material effect on its finances or operations. FLORIDA: Group Charges DCF With Violating Disabled Care Suit Settlement ----------------------------------------------------------------------- An advocacy group for disabled Florida residents alleges that the State's Department of Children and Families (DCF) is not properly implementing the settlement of a 1998 lawsuit concerning the inadequacy of the State's disabled healthcare program, the Miami Herald reports. The Department was initially sued in 1998 by watchdog The Advocacy Center for Persons with Disabilities, alleging the health care program was under-funded, causing thousands of people with autism, cerebral palsy, and mental retardation to stay on a long waiting list. As a result, lawmakers approved about $300 million in additional funding between 1998 and 2000, nearly doubling the number of Floridians who received services, allowing them to live either in their own homes or in small, homelike settings. Among the services the program provides are speech therapy, wheelchairs and lifts. Now, the Advocacy Center says the State is violating the settlement and that the State's effort fall short of the settlement's requirements. "People are struggling," Susan Goldstein, who heads the Autism Society's Florida chapter told the Herald. "That's the difference between Florida and other states. We're happy with the crumbs we get." The Department's General Counsel, Josefina Tamayo said, "We are in the process of reviewing the letter, and we are looking at the issues they raise very closely.We are going to be filing a response to address their issues and their claim of non-performance." If the two parties fail to agree, the suit could be reinstated in Federal Court. FORD MOTOR: Judge Approves US$10.5 Million Settlement To Age Bias Suit ---------------------------------------------------------------------- Wayne County Circuit Court Judge Edward Thomas granted final approval to a US$10.5 million settlement to two discrimination class actions against automobile giant Ford Motor Company over its employee evaluation system, Associated Press reports. The suits alleged that the Company's evaluation system known as the Performance Management Process, discriminated against older, white men. One of the lawsuits alleged age, race and gender bias, while the other alleged only age discrimination. The evaluation system, put in place by former Company president Jacques Nasser, evaluated managers with grades of A, B, or C. A grade of C could lead to the loss of bonuses, raises or promotions. Two consecutive C's could lead to dismissal. Managers performing the evaluations were given quotas for meting out each grade level. The plaintiffs claimed a disproportionate number of older, white men received C's, Associated Press reports. Mr. Nasser has since resigned from the Company, with Bill Ford, Jr. replacing him as CEO. In July last year, three classifications replaced the letter grades, and the quotas were eliminated. Under the consent decree, each plaintiff will receive up to US$ 100,000 minus attorney's fees, depending on length of employment and other criteria. The Company admitted no liability in the settlement, the implementation of which would release the claims against the Company. "It's a relief it's over," John Streeter told AP. "For a lot of people still working at Ford, it will help heal some of their wounds." INTEGON GENERAL: Consumers Sue For Inferior Replacement Parts Use ----------------------------------------------------------------- Integon General Insurance Corporation faces a class action filed in a Florida trial court by consumers who allege the Company violated State law by using inferior replacement parts in automobile repairs. The suit alleges that the Company, a division of GMAC Insurance, used inferior auto parts rather than better quality and more expensive original manufacturer equipment when repairing automobiles. The suit further alleges that the use of inferior parts decreases the safety of drivers and passengers, decreases the worth of the car and, in some cases, could void the manufacturer's warranty. Finally, the suit alleges that the use of non-original manufacturer equipment violates the Company's obligations to its policyholders and others whose cars are damaged by Company policyholders. OKLAHOMA BOMBING: Suit Charges Iraq With Planning, Financing Attack ------------------------------------------------------------------- A class action filed in the US District Court in Washington DC charges Iraq with planning and financing "in whole or in part" the bombing of the Alfred P. Murrah Federal Building in Oklahoma City nearly seven years ago, WorldNetDaily reports. The April 19, 1995 an attack on the building killed 168 people and destroyed nearly one-third of the structure. Federal officials later apprehended two of the instigators of the attack. Former Army vet Timothy McVeigh was executed in June 11,2001 while accomplice Terry Nichols now serves a life sentence for his role in the bombing. The suit alleges that the Oklahoma City bombing was "orchestrated, assisted technically and/or financially, and directly aided by agents of the Republic of Iraq.was an illegal continuation of the Persian Gulf War." The plaintiffs in the suit additionally allege that they and their loved ones were "civilian casualties of (the) Gulf War." Legal group Judicial Watch filed the suit, which asserts claims under the Antiterrorism and Death Penalty Act of 1996, which addresses state- sponsored terrorism and has a specific provision for retroactive application. The group said in a statement, "Judicial Watch and its clients contend that other individuals, in addition to Timothy McVeigh and Terry Nichols, were involved in the preparation for and execution of the attack on the Murrah Building.These individuals were operating as agents of the Republic of Iraq." The plaintiffs allege that they have strong "direct and circumstantial" evidence of Iraq's involvement. Larry Klayman, Chairman and lead counsel of Judicial Watch, told the WorldNet Daily the evidence against Iraq is strong. Mr. Klayman revealed that reports from Philippine intelligence and law enforcement sources form the basis for much of the information contained in the lawsuit. Specifically, the suit details meetings between Nichols and Ramzi Youssef, the mastermind of the 1993 World Trade Center bombing, during Nichols' travel to the Philippines between 1990 and 1994, WorldNetDaily reports. Mr. Klayman added that the group is developing other evidence as well. "It's time the whole story about the Oklahoma City bombing is revealed and that justice is done for the Iraqis' State sponsorship of that brutal attack on American citizens," Mr. Klayman said. ROSE ART: Voluntarily Recalls 124,000 Soap Making Kits For Burn Hazard ---------------------------------------------------------------------- Rose Art Industries, Inc. is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 124,400 Soap Making Kits. The soap may get too hot when heated in the microwave oven and leak from the plastic container posing a burn hazard to children. The Company has received 10 reports of children being burned by the hot soap while removing the plastic container from the microwave oven. The soap making kit is sold in a cardboard box with model number 4054 or a plastic case with model number 4121 on the packaging. The model number is located on the upper right hand corner on the front of the packaging. Each kit includes bars of soap, molds, and a plastic cup to melt soap chunks. Toy and discount stores, including Toys R Us, Wal Mart, Kaybee Toys, Target and Value City, sold these kits nationwide between August 1997 through December 2001 for about $10. For more information, contact the Company by Phone: 800-272-9667 between 9 am and 5 pm ET Monday through Friday or visit the firm's Web site: http://www.roseart.com TERRORIST ATTACK: Amnesty International Protests "Illegal" Detentions --------------------------------------------------------------------- The United States government allegedly violated the human rights of more than 1,200 people when it took them into custody in its search for possible suspects connected to the September 11 attacks on the World Trade Center and the Pentagon, advocacy group Amnesty International contends. The group condemned the government's policy, alleging in a report that the United States violated the detainees rights to humane treatment, to have prompt access to a lawyer, to be able to challenge the lawfulness of their detention and to be presumed innocent until proven otherwise. The group also issued reports of detainees not knowing why they have been held, and being treated cruelly including prolonged solitary confinement, heavy shackling of detainees and lack of adequate exercise, the Associated Press reported. In a statement, Amnesty International Executive Director William Schulz said, "The government's treatment of these individuals is simply unacceptable and is a violation of international law." The government has not divulged the names of the detainees. Attorney General John Ascroft told Associated Press that the information would be "too sensitive for public scrutiny." He has also said the Department's efforts to combat terrorism were carefully crafted to avoid infringing on constitutional rights while saving American lives. Amnesty International wants a full inquiry into the detentions and urged authorities to release detailed information on all detentions. In addition, it requested that individuals not be deported to countries where they would be at risk of serious human rights abuses. TOXIC MOLD: Workers File Suit V. Parish Due To Toxic Mold in Building --------------------------------------------------------------------- The Plaquemines Parish in New Orleans faces a class action filed by its 911 dispatchers, after several people fell sick due to toxic mold in the parish building, TheNewOrleansChannel.com reports. The dispatchers are now working out of a borrowed bus. Health officials found stachybotrys mold in the ceiling tiles in the dispatch room in November. That same month, a consultant published a report saying that the conditions in the building were "unacceptable" from a human health- risk perspective. The class action alleges that the parish purposely delayed the submission of the report to the parish sheriff. Sheriff Jiff Hingle only learned about the report last week, four months after it was first submitted. "I have two of my dispatchers that are seriously ill with lung problems," Sheriff Hingle said. "I've had numerous others that have been out from work because of rash problems, sinus problems, headaches -- and it seems to be after they pulled a complete shift here these problems seem to flare up." The problems were so persistent that Hingle asked parish administrators to examine the mold and water leaks in the building, according to theNewOrleansChannel.com. Mr. Hingle said he is angry that he was not told about the report and the danger to his deputies as soon as the results were delivered to parish officials. Parish President, Benny Rouselle, denied the allegations of the suit, saying he had not read the report. He states, "First of all, they did not deliver the report to me.The report was delivered to the health department, and the health department evidently delivered it to the building maintenance department and they discussed what their plan of action would be." TRAVEL AGENCIES: Settles Suit Over Deceptive Discount Travel Programs --------------------------------------------------------------------- Texas State Court has approved a $350,000 settlement of the class action against Turn of the Century Adventure, Inc., Travelbridge International, Inc., and various related companies. The suit alleges that the companies violated state law by misleading and deceiving consumers into purchasing a discount travel program, and names as a class all consumers who purchased the Travelbridge or Century Adventure travel program between January 1, 2000, and February 28, 2002. The action stemmed from the sale by Travelbridge and Century Adventure of a discount travel program which the companies told consumers would allow them discounts, upgrades and courtesies available only to travel agents. Consumers were led to believe that these special industry rates, available at airlines, car rental companies, cruise lines and hotels, could be obtained by attending a Travelbridge seminar on discounted travel and then purchasing the discount travel program for up to $5,390. In reality, however, these discounts are only available to travel agents with an International Airlines Travel Agent Network card and were not available to consumers who had purchased the Travelbridge "travel agent" discount program. The settlement agreement requires Travelbridge and Century Adventure to refund $350,000 to consumers as restitution. In addition, an injunction will prevent the companies from stating to consumers that the discount program entitles purchasers to travel agent rates. The injunction will also prohibit the companies from issuing identification cards that state their members are travel agents and will require Travelbridge and Century Adventure to inform consumers that generally only individuals who work in the travel industry are allowed travel agent rates. Consumers are eligible for a refund if they submit a written refund request to the Texas Attorney General's office by March 31, 2002. All refunds will be distributed by June 30, 2002. Securities Fraud ACTRADE FINANCIAL: Schiffrin Barroway Lodges Securities Suit in S.D. NY ----------------------------------------------------------------------- Schiffrin Barroway LLP initiated a securities class action against Actrade Financial Technologies, Ltd. (Nasdaq:ACRT) claiming that the company misled investors about its business and financial condition, in the US District Court for the Southern District of New York on behalf of all investors who bought the Company's securities between March 11, 1999 through February 11, 2002. The suit alleges that the Company issued a series of materially false and misleading statements to the market between March 11, 1999 and February 11, 2002. Throughout the class period, the Company issued press releases announcing record quarterly results and describing its business as providing trade financing and business-to-business financing solutions. In addition, the Company, in its fiscal year 2000 and 2001 Annual Reports filed with the SEC on Form 10-K405, represented that its loans were covered by insurance and surety bonds, which minimized the Company's risk on the loans. The representations in the press releases and annual reports were, according to the allegations of the complaint, materially false and misleading because the Company had loaned over $10 million to individuals, not businesses, who used the proceeds personally. In addition, according to the complaint, defendants are alleged to have failed to disclose to their insurers and sureties the nature of the personal loans and, as a result, the Company was jeopardizing its ability to collect under the policies and surety bonds in the case of default. On February 11, 2002, Barron's published an article detailing the Company's questionable lending practices and its alleged misrepresentations and omissions to insurers and sureties. For example, the article recounts a $6.3 million loan-default by an individual that the Company was attempting to recruit as a broker, and which an insurer and surety refused to cover on his default because they allegedly were led to believe by the Company that the loan was for a business purpose when in fact the individual pocketed the funds. In reaction to the Barron's article, Company stock price plummeted by 45%, falling to $13.75 per share on February 11, 2002, from a $24.89 per share close on February 8, 2002, which fell on a Friday. For more information, contact Shareholder Relations Manager by Phone: 888-299-7706 (toll free) or 610-822-2221 or by E-mail: info@sbclasslaw.com ACTRADE FINANCIAL: Berger Montague Initiates Securities Suit in S.D. NY ----------------------------------------------------------------------- Berger & Montague, PC commenced a securities class action against Actrade Financial Technologies (Nasdaq: ACRT) and certain of its principal officers and directors in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Company securities between March 11, 1999 and February 8, 2002. The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The suit further contends that throughout the class period, defendants stated that the Company provided short-term loans to businesses to finance commercial transactions. The suit alleges that these statements were false and misleading because defendants knew, or recklessly disregarded, that the Company had also loaned millions of dollars to individuals for non-commercial purposes, defrauded its sureties into providing coverage for these loans, and had overstated its financial results based on these fraudulent lending practices. For more information, contact Sherrie R. Savett, Douglas M. Risen or Kimberly A. Walker by Mail: 1622 Locust Street, Philadelphia, PA 19103 by Phone: 888-891-2289 or 215-875-3000 by Fax: 215-875-5715 by E-mail: InvestorProtect@bm.net or visit the firm's Web site: http://www.bergermontague.com ALLIED IRISH: Marc S. Henzel Commences Securities Suit in S.D. NY ----------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities fraud class action in the United States District Court for the Southern District of New York, on behalf of all persons who acquired AIB American Depositary Receipts of Allied Irish Banks, PLC (NYSE: AIB) (ADRs) between January 1, 2001 and February 6, 2002, inclusive. The suit alleges that the Company's financial reports since 1999 fraudulently failed to reflect at least $691 million of currency trading losses associated with its AllFirst Financial, Inc. subsidiary. On February 6, 2002, the Company shocked the investment markets by disclosing for the first time that its AllFirst subsidiary had concealed massive losses from foreign exchange trading, and that it had halted all currency trading at AllFirst. Following this announcement, the Company's ADR price fell to $19.77, down 16% from the previous day's close of $23.55. The Company has since admitted that its 2001 financial reports alone overstated net income by as much as $449 million. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com CORNELL COMPANIES: Marc Henzel Commences Securities suit in S.D. TX ------------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of Texas on behalf of purchasers of Cornell Companies, Inc. (NYSE: CRN) common stock during the period between March 6, 2001 and March 5, 2002. 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 during the class period, defendants issued favorable but false financial statements and made false and misleading statements about the Company's business. As a result of these false statements, the Company's stock traded as high as $18.40. The defendants took advantage of this artificial inflation, selling 3.4 million shares of Company stock for proceeds of over $48 million in a November 2001 secondary offering. On February 6, 2002, Bloomberg ran an article on the Company which stated in part, "Cornell Cos., which operates 69 prisons in 13 states and the District of Columbia, said it will review the accounting of an August real estate transaction involving 11 properties. Its shares fell as much as 63 percent. The company received a letter Thursday from auditor Arthur Andersen LLP that raised concern about the transaction, said Larry Stein of FRB Weber Shandwick, a firm that handles public relations for Cornell. The Andersen review was part of a year-end audit." Upon these disclosures, Company stock dropped to as low as $6.50 before closing at $9.96 on February 6, 2002, some 45% below the class period high of $18.40. On March 6, 2002, the Company issued a press release entitled, "Cornell Companies Inc. to Restate Its Financials for Year Ended December 31, 2000 and Subsequent Quarters." On this news, the Company's shares plummeted once again by more than 10%. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com CORNING INC.: Schiffrin Barroway Commences Securities Suit in W.D. NY --------------------------------------------------------------------- Schiffrin & Barroway, LLP initiates securities class action in the US District Court for the Western District of New York (02-CV-6117) claims that Corning, Inc. (NYSE:GLW) misled shareholders about its business and financial condition. The suit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Company securities between September 27, 2000 through July 10, 2001. The suit alleges that the Company and certain of its officers and directors with issuing false and misleading statement concerning its business and financial condition. Specifically, the complaint 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. For more information, contact Marc A. Topaz or Stuart L. Berman by Phone: 888-299-7706 (toll free) or 610-822-2221 or by E-mail: info@sbclasslaw.com ELAN CORPORATION: Marc Henzel Commences Securities Suit in S.D. NY ------------------------------------------------------------------ The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of purchasers of Elan Corporation PLC (NYSE: ELN) securities between December 21, 2000 and February 1, 2002, inclusive, against the Company, certain of its officers, and its auditor, KPMG LLP. The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. Specifically, the complaint alleges that throughout the class period, defendants issued to the investing public false and misleading financial statements and press releases concerning the Company's publicly reported revenues and earnings. Moreover, the Company omitted to state material information necessary in order to make prior statements not misleading. The suit additionally alleges that the Company engaged in improper accounting practices that artificially inflated its reported revenues, artificially increasing the asset side of its balance sheet, and improperly reduced its reported expenses. On January 30, 2002, the Wall Street Journal first reported on some of the Company's accounting practices and on February 4, 2002, the Company issued a press release providing information about two "qualified special purpose entities," or QSPEs, which it said were not consolidated in its final results as presented under US accounting principles. It is said that the value of the investment of the two QSPEs was "insufficient to pay the indebtedness of the entities." In response to these revelations, the market price of Company stock dropped precipitously from a class period high of $65 to below $15 on February 4, 2002. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com ELAN CORPORATION: Kaplan Fox Commences Securities Suit in S.D. NY ----------------------------------------------------------------- Kaplan Fox and Kilsheimer, LLP initiated a securities class action in the United States District Court for the Southern District of New York against Elan Corporation PLC. (NYSE:ELN) and certain of its officers and directors, on behalf of all persons or entities who purchased American Depository Shares (ADSs) of the Company between April 23, 2001 and January 30, 2002, inclusive. The suit alleges that the Company and certain of its officers and directors violated Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934. Specifically, it is alleged that the Company improperly reported revenues and earnings from entities in which it had joint ventures and/or invested in. In a Wall Street Journal article published on January 30, 2002 questioning the propriety of the Company's accounting practices, former SEC Chief Accountant, Lynn Turner reportedly characterized certain of the types of accounting practices utilized by the Company referred to in the article as a "charade." It is alleged that as a result of Defendants improper accounting practices during the class period, the price of Company ADSs traded at artificially inflated prices. For more information, contact Frederic S. Fox, Joel B. Strauss or Shelley Thompson by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952 or 212-687-1980 by Fax: 212-687-7714 or by E-mail: mail@kaplanfox.com GILAT SATELLITE: Glancy Binkow Commences Securities Suit in E.D. VA ------------------------------------------------------------------- Glancy & Binkow initiated a securities class action against Gilat Satellite Networks (NYSE:GILTF) alleging the Company and its officers and directors violated federal securities laws, in the US District Court for the Eastern District of Virginia on behalf of all persons who purchased securities of Gilat between August 14, 2000, and March 9, 2001. Among other things, the suit claims the defendants knew or recklessly disregarded that the demand for and acceptance of the Company's products and the products of its subsidiary, StarBand Communications, were greatly overstated. In addition, the Company is accused of having difficulty profitably manufacturing and selling its chief product, Very Small Aperture Terminal, and that it reported false gross profit margins. For more information, contact Michael Goldberg by Mail: 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067 by Phone: 310-201-9150 or 888-773-9224 or by E-mail: info@glancylaw.com. GILAT SATELLITE: Marc Henzel Initiates Securities Suit in E.D. NY ----------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court, Eastern District of New York, on behalf of purchasers of the securities of Gilat Satellite Networks, Ltd. (NASDAQ: GILTF) between November 13, 2000 and October 2, 2001, inclusive. The suit names as defendants the Company and officers Yoel Gat and Yoav Libovitch. 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 November 13, 2000 and October 2, 2001, thereby artificially inflating the price of Company securities. Prior to and throughout the class period, as alleged in the complaint, the Company issued a series of materially false and misleading statements which materially misrepresented its financial condition and results because, among other things, the Company was improperly delaying the writedown of tens of millions of dollars of inventory and investments which were impaired and of diminishing value. In addition, the Company failed to disclose that its StarBand division was experiencing significant difficulties attracting customers and was not generating the revenues for it that defendants had caused the market to expect. On October 2, 2001, the last day of the class period, the Company issued a press release announcing that its financial results for the third quarter of 2001 would be below previously announced guidance and that it was taking additional charges. The Company reported that revenues for the third quarter were expected to be $80 million, as compared to the $150 million announced on May 14, 2001, and that the Company expected to report a loss of $267 million or approximately $11.40 per share. Following this announcement, the price of Company shares dropped from $5.38 per share to $3.32 per share, a decline of more than 38% on heavy trading volume. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com HANOVER COMPRESSOR: Schoengold Sporn Lodges Securities Suit in S.D. TX ---------------------------------------------------------------------- Schoengold & Sporn, PC initiated a securities class action against Hanover Compressor Company (NYSE: HC) and certain key officers and directors of the Company in the United States District Court for the Southern District of Texas on behalf of all purchasers of Hanover during the period between November 8, 2000 and January 28, 2002. The Company is a provider of natural gas compression, gas handling and related services in the United States and selected international markets. The complaint alleges violations of the federal securities laws arising out of defendants' issuance of false financial statements and other false and misleading statements about the Company's operating performance. The facts, which were known by the defendants during the class period but concealed from the public, were that certain revenue and net income recognized in the 3rd and 4th Quarter should not have been recognized. Thus, the Company's financial statements for 1st to 3rd Quarter 2001 were false and misleading in that the revenue and EPS were overstated and the impact of a particular project was not disclosed. Further, in a secret "behind-the-scenes" type transaction, defendants refused to refund money to an investor and instead forwarded the money to a company related to the investor so that the transaction would go uncovered. For more information, contact Ashley Kim by Mail: 19 Fulton Street, Suite 406 New York, New York 10038 by Phone: 212-964-0046 or 866-348-7700 or by Fax: 212-267-8137 HEWLETT PACKARD: Hearings On Dismissal of Federal, State Cases Set ------------------------------------------------------------------ Two California courts will hear oral arguments on April 26, 2002, on the dismissal of two class actions against computer manufacturer Hewlett Packard over its merger with Compaq Computer Corporation. The first suit is pending in the Superior Court of the State of California, County of Santa Clara, against various of the Company's officers and directors. The suit alleges that the defendants breached their fiduciary duties to Company shareowners by, among other things, failing to conduct reasonable due diligence into the propriety of the merger and by filing with the Securities and Exchange Commission a false and misleading registration statement on Form S-4 and preliminary joint proxy statement/prospectus forming a part thereof in connection with the merger transaction. In December 2001, the defendants removed the case to the United States District Court for the Northern District of California, and later moved to dismiss the action. In January 2002, the plaintiffs moved to remand the case to State Court, and in February, moved for expedited discovery. The Magistrate Judge denied plaintiff's motion for expedited discovery, and scheduled a hearing on defendants' motion to dismiss and plaintiff's motion to remand for April 26, 2002. Another class action is pending in the United States District Court for the Northern District of California against the Company and certain of its directors. The suit alleges the proxy materials filed by the Company in connection with the merger are false and misleading and fail to disclose material information in violation of Section 14(a) of the Securities Exchange Act of 1934, SEC Rule 14a-9. The suit further alleges that the named Company directors have breached their fiduciary duties to their stockholders. In February 2002, defendants moved to dismiss the action, while the plaintiffs moved for expedited discovery. On March 1, 2002, the magistrate judge denied plaintiff's motion and set a hearing on the defendants' motion to dismiss. The Company labeled the two suits "without merit" and intends to defend against the suits vigorously. LUMENIS LTD.: Wolf Haldenstein Initiates Securities Suit in S.D. NY ------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP commenced a securities class action in the United States District Court for the Southern District of New York, on behalf of purchasers of Lumenis Ltd. (NASDAQ: LUME) between January 7, 2002 and February 28, 2002, inclusive against the Company and certain of its officers, including: (1) Chairman Jacob Frenkel, (2) President/CEO Yacha Sutton, and (3) COO Sagi Genger The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The suit alleges that throughout the class period, defendants discounted and disputed marketplace rumors about its operations even as it knew it was being investigated by the SEC and that its distributors had been contacted by the SEC. Additionally, even after announcing in a press release that it was subject to an SEC investigation, the Company continued to hide the fact that it had been aware of the SEC investigation and had been providing information to the SEC for several weeks. On February 28, 2002, the Company revealed the facts concerning the SEC investigation in a conference call. These shocking revelations caused the stock to plummet 30% in one day and more than 69% from its class period high, resulting in damages to plaintiff and members of the class. For more details, contact Fred T. Isquith, Michael Miske, George Peters, Derek Behnke or Gustavo Bruckner by Mail: 270 Madison Avenue, New York, New York 10016 by Phone: 800-575-0735 or by E-mail: classmember@whafh.com. E-mail should refer to LUMENIS. LUMENIS LTD.: Schiffrin Barroway Commences Securities Suit in S.D. NY --------------------------------------------------------------------- Schiffrin & Barroway, 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 the common stock of Lumenis Ltd. (Nasdaq: LUME) from January 7, 2002 through February 28, 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 complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The suit alleges that throughout the class period, defendants discounted and disputed marketplace rumors about its operations even as it knew it was being investigated by the SEC and that its distributors had been contacted by the SEC. Additionally, even after announcing in a press release that it was subject to an SEC investigation, the Company continued to hide the fact that it had been aware of the SEC investigation and had been providing information to the SEC for several weeks. On February 28, 2002, the Company revealed the facts concerning the SEC investigation in a conference call. These shocking revelations caused the stock to plummet 30% in one day and more than 69% from its class period high, resulting in damages to plaintiff and members of the class. 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 LUMENIS LTD.: Marc Henzel Initiates Securities Fraud Suit in S.D. NY -------------------------------------------------------------------- The Law Offices of Marc S. Henzel commences a securities class action in the United States District Court for the Southern District of New York, on behalf of purchasers of Lumenis Ltd. (Nasdaq: LUME) between January 7, 2002 and February 28, 2002, inclusive, against the Company and certain of its officers, including: (1) Chairman Jacob Frenkel, (2) President/CEO Yacha Sutton, and (3) COO Sagi Genger The complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The complaint alleges that throughout the class period, defendants discounted and disputed marketplace rumors about its operations even as it knew it was being investigated by the SEC and that its distributors had been contacted by the SEC. Additionally, even after announcing in a press release that it was subject to an SEC investigation, the Company continued to hide the fact that it had been aware of the SEC investigation and had been providing information to the SEC for several weeks. On February 28, 2002, the Company revealed the facts concerning the SEC investigation in a conference call. These shocking revelations caused the stock to plummet 30% in one day and more than 69% from its class period high, resulting in damages to plaintiff and members of the class. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808 by Phone: 888-643-6735 or 610-660-8000 by Fax: 610-660-8080 by E-mail: Mhenzel182@aol.com or visit the firm's Web site: http://members.aol.com/mhenzel182. LUMENIS LTD.: Cauley Geller Commences Securities Fraud Suit in S.D. NY ---------------------------------------------------------------------- Cauley Geller Bowman & Coates LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of Lumenis Ltd. (Nasdaq: LUME) common stock during the period between January 7, 2002 through February 28, 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 complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. The suit alleges that throughout the class period, defendants discounted and disputed marketplace rumors about its operations even as it knew it was being investigated by the SEC and that its distributors had been contacted by the SEC. Additionally, even after announcing in a press release that it was subject to an SEC investigation, the Company continued to hide the fact that it had been aware of the SEC investigation and had been providing information to the SEC for several weeks. On February 28, 2002, the Company revealed the facts concerning the SEC investigation in a conference call. These shocking revelations caused the stock to plummet 30% in one day and more than 69% from its class period high, resulting in damages to plaintiff and members of the class. 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 MEDI-HUT CO.: Leo Desmond Commences Securities Suit in S.D. New York -------------------------------------------------------------------- The Law Offices of Leo W. Desmond initiated a securities class action on behalf of shareholders who acquired Medi-Hut Co., Inc. (Nasdaq:MHUT) securities between April 4, 2000 and February 4, 2002, inclusive in the US District Court for the Southern District of New York against the Company and: (1) Joseph A. SanPietro, (2) Laurence M. Simon, (3) Robert Russo, (4) Vincent J. SanPietro, (5) James A. Aaron and (6) James S. Vacarro It is alleged that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10(b)(5) promulgated thereunder, 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 details, contact Leo W. Desmond by Phone: 888-337-6663, 561- 712-8000 by E-Mail: Info@SecuritiesAttorney.com or visit the firm's Web site: http://www.SecuritiesAttorney.com MEDI-HUT CO.: Marc Henzel Commences Securities Fraud Suit in New Jersey ----------------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the District of New Jersey on behalf of all purchasers of the common stock of Medi-Hut Co., Inc. (Nasdaq: MHUT) from April 4, 2000 through February 4, 2002, inclusive. The suit seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and: (1) Joseph A. Sanpietro, President and Chief Executive Officer, (2) Laurence M. Simon, Chief Financial Officer, (3) Robert Russo, Treasurer, (4) Vincent Sanpietro, Secretary, (5) James G. Aaron, director, and (6) James S. Vacarro, director The suit alleged that defendants knowingly and recklessly disseminated materially false and misleading statements and omissions that misrepresented the Company's business, operations and financial performance. As stated in the suit, the Company misled the investing public by failing to disclose that a Company Vice President had a controlling interest in Larval Corp., its largest customer. Specifically, the Company failed to disclose that Lawrence Marasco, its Vice President for Sales and Marketing, had a controlling interest in Larval. During fiscal year 2001, sales to Larval accounted for 62% of the Company's revenues. Because Mr. Marasco had a controlling interest in one of the Company's customers, generally accepted accounting principles dictated that the Company identify sales to that customer as related party transactions. The Company, however, failed to disclose the true nature of its sales to Larval. Indeed, each report the Company filed with the Securities and Exchange Commission during the class period, including quarterly and annual reports, was devoid of any reference to the fact that one of its largest customers was controlled by a Company employee. These reports were disseminated to shareholders and/or were publicly available to potential investors. The suit alleges that the misrepresentations and omissions by defendants influenced the views of stock market analysts and the investing public and brought about an unrealistic assessment of the Company's performance and prospects and that, as a result, the Company's stock traded at artificially inflated prices throughout the class period. On February 4, 2002, the nature of the relationship between the Company, Mr. Marasco and Larval Corp. was revealed. The market, recognizing that a majority of the Company's revenues in fiscal year 2001 were generated via sales to a related party, reacted swiftly and severely. By the close of business on February 4, shares of the Company had lost 51% of their value, falling $3.41 to $3.29 in unusually heavy trading. Four days later, Grant Thorton LLP resigned its position as the Company's independent auditor after only two weeks. Grant Thorton served as the Company's auditors from January 24, 2002 through February 8, 2002. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com NVIDIA CORPORATION: Kaplan Fox Initiates Securities Suit in N.D. CA ------------------------------------------------------------------- Kaplan Fox and Kilsheimer commenced a securities class action against NVIDIA Corporation (Nasdaq:NVDA) and certain of the Company's officers and directors in the United States District Court for the Northern District of California, on behalf of all persons or entities who purchased or otherwise acquired the Company's 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 complaint alleges, among other things, that during the class period defendants issued a series of false and misleading statements concerning the Company's financial condition. In order to overstate revenues in its financial statements, the Company violated generally accepted accounting principles (GAAP) and SEC rules by engaging in an improper scheme. As a result of defendants' misleading statements and accounting improprieties during the class period, the price of Company stock traded at artificially inflated prices. For more information, contact Frederic S. Fox or Hae Sung Nam by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952 or 212-687-1980 by Fax: 212-687-7714 or by E-mail address: mail@kaplanfox.com PNC FINANCIAL: Kaplan Fox Commences Securities Fraud Suit in S.D. PA -------------------------------------------------------------------- Kaplan Fox and Kilsheimer LLP initiated a securities class action against PNC Financial Services Group (NYSE:PNC) and certain of the Company's officers and directors in the United States District Court for the Southern District of Pennsylvania, on behalf of all persons or entities who purchased the Company's common stock between July 19, 2001 and January 29, 2002, inclusive. The suit charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges, among other things that during the class period defendants made false and misleading statements concerning the Company's financial results for the second, third and fourth quarters of 2001. Specifically, defendants improperly stated revenues during those quarters, in violation of generally accepted accounting principles, and "manipulated" the Company's books in order to report revenues, profits and growth rates to the investing public throughout 2001. As a result of defendants' false and misleading statements, and improper accounting practices during the class period, the price of Company stock traded at artificially inflated prices. For more details, contact Frederic S. Fox, Jonathan K. Levine or Adam W. Walsh by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 by Phone: 800-290-1952 or 212-687-1980 by Fax: 212-687-7714 or by E-mail: mail@kaplanfox.com SMARTTALK TELESERVICES: Partial Settlement Approved in Securities Suits ----------------------------------------------------------------------- Two California courts granted final approval to $15 million partial settlement of several class actions filed against now-bankrupt SmarTalk Teleservices, Inc. (formerly Nasdaq: SMTK), certain of its former officers and directors, and its former independent auditor, PricewaterhouseCoopers LLP, by stockholders who purchased any Smartalk security other than 5 3/4% convertible subordinated notes between August 13, 1997, and January 7, 1999. The two suits claim that the defendants violated federal securities laws by issuing inflated and materially overstated financial statements for the Company during the time period involved. The suits are proceeding in both California State Court and Federal Court. Due to this unusual situation, both courts were required to approve the settlement in order for it to be effective. The State Court held a hearing on March 1, 2002, to consider giving final approval to the settlement, while the Federal Court hearing was on February 15, 2002. The partial settlement is with only PricewaterhouseCoopers. The Company was dismissed as a defendant after it filed for bankruptcy protection in January 1999. The class actions continue against the Company's former officers and directors. SYMBOL TECHNOLOGIES: Berman DeValerio Files Securities Suit in E.D. NY ---------------------------------------------------------------------- Berman DeValerio Pease Tabacco Burt and Pucillo initiated a securities class action against Symbol Technologies, Inc. (NYSE: SBL) for securities fraud, claiming that the Company artificially inflated its stock price. The suit was filed in the US District Court for the Eastern District of New York on behalf of all investors who bought Symbol stock from October 20, 2000 through February 12, 2002. The suit charges the Company and three top officers with engaging in improper accounting practices to keep the Company's financial results in line with analysts' expectations. The Company, based in Holtzville, N.Y., develops and markets mobile and wireless computer devices. Specifically, the defendants are accused of improperly booking a $10 million royalty payment in the third quarter of 2000 and of improperly recording more than $40 million in revenue in the first quarter of 2001. When news of the suspicious accounting practices first emerged in a February 13, 2002 newspaper article, the price of Company stock quickly dropped 17%, or $2.50 a share, to $11.70 a share. The following day, February 14, 2002, the Company announced the abrupt retirement of its Chief Executive Officer and revealed poor quarterly and annual results. The company's stock price again fell sharply on the new reports, closing at $8.40 per share on February 15, 2002. For further details, contact Sara Davis 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. SYMBOL TECHNOLOGIES: Marc Henzel Initiates Securities Suit in E.D. NY --------------------------------------------------------------------- The Law Offices of Marc S. Henzel commenced a securities class action in the United States District Court for the Eastern District of New York, on behalf of purchasers of the common stock of Symbol Technologies, Inc. (NYSE: SBL) between October 19, 2000 and February 13, 2002, inclusive, against the Company and certain of its officers. The suit alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the class period that had the effect of artificially inflating the market price of the Company's securities. Specifically, the complaint alleges that defendants engaged in these actions, effectively increasing the Company's reported revenue and profits: (1) the Company booked as profit in the third quarter 2000 a one- time royalty payment in excess of $10 million, enabling the Company to make its third quarter projections; (2) the Company used expenses associated with its acquisition of Telxon to mask the fact that its sales were declining; and (3) the Company booked as having shipped in the first quarter of 2001 more than $40 million in inventory that included side provisions allowing customers to delay payments or return merchandise, or included products that "never left the warehouse." The Company subsequently had a second-quarter 2001 inventory write-down of $67.1 million after tax. On February 13, 2002, Newsday, Inc. reported that the Company had engaged in the above-described accounting practices, received an inquiry letter from the Securities and Exchange Commission, and had hired accounting and consulting firm KPMG LLP to review its sales process. The next day, the Company announced it was lowering its outlook for 2002 earnings and that its Chief Executive Officer would retire in May 2002. In response to the Newsday article and the Company's announcements, the price of Company stock plunged more than 53% from an opening price of $14.15 on February 14, 2002 to a low of $6.60 on February 15, 2002 on unusually heavy trading volume. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com SYNSORB BIOTECH: Cauley Geller Commences Securities Suit in S.D. NY ------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of SYNSORB Biotech, Inc. (Nasdaq: SYBB) common stock during the period between April 4, 2001 and December 10, 2001, inclusive. The suit charges the Company and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that throughout the class period, defendants touted the successful progression of its SYNSORB Cdr Phase III clinical trials while concealing from the public that, in fact: (1) defendants had "concerns about enrollment;" (2) defendants knew that "the completion of the trial would reach out years beyond" what they had forecast; (3) the FDA had directed defendants to use a more stringent protocol in its Phase III trials; (4) defendants had repeatedly failed to increase enrollment in the Phase III trials during the class period; (5) defendants had been experiencing "unacceptably high drop out rates;" and (6) defendants could not afford to continue to finance the Phase III clinical trials. After the market closed on December 10, 2001, the Company issued a press release announcing the termination of its SYNSORB Cdr development program and in a conference call the next morning, revealed the true facts concerning the Phase III clinical trials. These shocking revelations made in the press release and in the conference call had a dramatic effect on the price of Company stock, causing the stock to plummet over 52% and causing plaintiff and the class to suffer damages. For more details, 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 Website: http://www.classlawyer.com SYNSORB BIOTECH: Schiffrin Barroway Lodges Securities Suit in S.D. NY --------------------------------------------------------------------- Schiffrin & Barroway, 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 the common stock of SYNSORB Biotech, Inc. (Nasdaq:SYBB) from April 4, 2001 through December 10, 2001, inclusive. The complaint charges the Company and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that throughout the class period, defendants touted the successful progression of its SYNSORB Cd(r) Phase III clinical trials while concealing from the public that: (1) defendants had "concerns about enrollment;" (2) defendants knew that "the completion of the trial would reach out years beyond" what they had forecast; (3) the FDA had directed defendants to use a more stringent protocol in its Phase III trials; (4) defendants had repeatedly failed to increase enrollment in the Phase III trials during the class period; (5) defendants had been experiencing "unacceptably high drop out rates;" and (6) defendants could not afford to continue to finance the Phase III clinical trials. After the market close on December 10, 2001, the Company issued a press release announcing the termination of its SYNSORB Cd development program and in a conference call the next morning, revealed the facts concerning the Phase III clinical trials. These shocking revelations made in the press release and in the conference call had a dramatic effect on the price of Company stock, causing the stock to plummet over 52% and causing plaintiff and the class to suffer damages. For more information, contact Marc A. Topaz or Stuart L. Berman by Phone: 888-299-7706 (toll free) or 610-822-2221 or by E-mail: info@sbclasslaw.com TORCH OFFSHORE: Marc Henzel Lodges Securities Fraud Suit in E.D. LA ------------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Eastern District of Louisiana on behalf of all persons who purchased the common stock of Torch Offshore, Inc. (Nasdaq: TORC) from June 7, 2001 through August 1, 2001, inclusive. The suit names as defendants the Company, certain of its officers and directors, and: (1) UBS Warburg LLC, (2) CIBC World Markets Corp., and (3) Howard Weil, a division of Legg Mason Wood Walker, Inc. The suit alleges that the defendants violated Sections 11 and 15 of the Securities Act of 1933 by making false and misleading representations in the June 7, 2001 registration statement and prospectus prepared and disseminated by defendants in connection with the IPO. The suit alleges, among other things, that the prospectus contained material misrepresentations concerning the prices of natural gas and oil in the period preceding the IPO, as well as the effect of those prices upon the Company's business and the demand for its services. For more information, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.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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