CAR_Public/020709.mbx                C L A S S   A C T I O N   R E P O R T E R

                 Tuesday, July 9, 2002, Vol. 4, No. 134

                              Headlines

360NETWORKS INC.: Faces Lawsuit Over Misleading Financial Statements
ALASKA: Policy Denying Fishing Families Food Stamp Benefits Spark Suit
ANHEUSER-BUSCH: Inland Workers Sue For Overtime Wages in CA State Court
ARMSTRONG WORLD: Bankruptcy Court Throws Out Asbestos Flooring Suit
APARTHEID LITIGATIONS: Last White President Criticizes Fagan Lawsuit

APARTHEID LITIGATIONS: Ed Fagan Plans To Target More Companies in Suit
BENIHANA INC.: Faces NY Suit Over Federal, State Labor Law Violations
CROWLEY MARITIME: CA Court Refuses To Grant Class Certification To Suit
DAIMLERCHRYSLER AG: TX Court Grants Class Status To Belt Buckle Suit
GADZOOX NETWORKS: Plaintiffs File Amended Securities Suit in S.D. NY

HALLIBURTON COMPANY: Faces Multiple Securities Fraud Suits in TX Court
HORTI-PAK INC.: Faces $80M Suit Over June 22 Kingsville, Ontario Fire
KENTUCKY: Appeals Court Reinstates Challenge To Emergency Services Tax
MEATPACKING INDUSTRY: Ranchers' Pricing Fraud Lawsuit Gains Momentum
NETWORK ASSOCIATES: Shareholder Files Suit To Stop McAfee.com Deal

NEW YORK: Amityville's School Vote Stands For Now Despite Lawsuit
POLYMEDICA CORP.: MA Court Refuses To Dismiss Securities Fraud Suit
PSS WORLD: Asks FL Court To Dismiss Consolidated Securities Fraud Suit
PSS WORLD: Faces Overtime Wage Law Violations Suit in CA Federal Court
ROGERSCASEY INC.: Labels "Without Merit" Global Crossing 401(k) Suits

SCHERING-PLOUGH: FTC, Advocacy Group Continuing Drug Antitrust Fight
SELECTICA INC.: Plaintiffs File Amended Securities Suit in S.D. NY
SELECTICA INC.: Shareholder Files Derivative Suit in CA State Court
SUNTERRA CORP.: FL Court Dismisses Consolidated Securities Fraud Suit
TELLABS INC.: Qwest CEO Named In Securities Suit Against Former Company

UNIROYAL TECHNOLOGY: Mounting Strong Defense V. Securities Fraud Suits
UNITED STATES: Plan For Racial Bias Talks Ends Black Farmers Sit-in
WEST VIRGINIA: DSHS Provides $5.5 Million Bonus For State Welfare Needs
WISCONSIN: Plans To Use Share of Tobacco Settlement To Balance Budget
WISCONSIN: Supermax Prison Must Monitor Temperatures Of Inmates' Cells

WORLDCOM INC.: Pension Plans To Sue Investment Banks Over Company Bonds
WORLDCOM INC.: Indiana's Pension Funds Lose $66 Million In Collapse
WORLDCOM INC.: Stockholder Files Suit Alleging Fraud, Gross Negligence
XEROX CORPORATION: Asks For Dismissal of Consolidated Securities Suit

                    New Securities Fraud Cases

ALLIED CAPITAL: Marc Henzel Commences Securities Fraud Suit in S.D. NY
AMDOCS LTD.: Marc Henzel Commences Securities Fraud Suit in E.D. MO
AQUILA INC.: Marc Henzel Commences Securities Fraud Suit in W.D. MO
CIRCUIT CITY: Marc Henzel Commences Securities Fraud Suit in E.D. VA
CORPPRO COMPANIES: Marc Henzel Commences Securities Suit in E.D. OH

MERCK & CO.: Marc Henzel Commences Securities Fraud Suit in New Jersey
MIRANT CORPORATION: Marc Henzel Commences Securities Suit in N.D. CA
NTL INC.: Marc Henzel Commences Securities Fraud Suit in S.D. New York

                              *********


360NETWORKS INC.: Faces Lawsuit Over Misleading Financial Statements
--------------------------------------------------------------------
Vancouver-based 360networks Inc., faces several class actions, alleging that
the fiber-optics firm misled investors by issuing financial statements that
were materially false and overstating its assets by nearly $4.8 billion.

The lawsuit was filed in a New York district court by law firm Shalov Stone
& Bonner LLP, on behalf of US investors, and alleges that senior
executives and directors of the company disregarded the alleged
overstatement of revenue.

As a result, investors suffered substantial financial losses when the
company filed for court protection in June 2001, in Canada and the United
States, from creditors who were owed $2.8 billion, the lawsuit alleges.

Headed by former Microsoft Corp. chief financial officer Greg Maffei,
360networks planned to build a global communications network but ran
into trouble because of overcapacity in the high-speed fiber-optics
sector.  Last week, the Company said it planned to submit a reorganization
plan to its creditors this month.  If the plan is approved, it expects to
emerge this fall from creditor protection as a restructured company.

However, the suit alleges that before the Company ran into difficulty,
senior executives made material misrepresentations and omissions of material
facts concerning the Company's financial condition and business performance
during the relevant time.  The alleged
misrepresentations, which are said to have occurred between November 8,
2000, and June 28, 2001, included the failure to properly account for
the company's assets, which the complaint says were overstated by about
$4.8 billion.

According to the complaint, the Company's financial statements were
materially false and misleading because it was improperly recording revenue
under an overly aggressive system that violated generally accepted
accounting practices and served to overstate the Company's reported and
projected revenue.

The complaint also alleges that an audit report failed to include necessary
"going concern" language that might have placed investors on
notice that the Company could not survive outside of bankruptcy protection,
among other things.

Among the executives named in the complaint, which also targets the
Company's financial auditor, PricewaterhouseCoopers LLP, are Mr. Maffei
and CFO Larry Olsen.

Analysts say the catalyst for last year's bankruptcy filings was the
decision by one of the Company's main suppliers, Alcatel SA of France, to
write down its $700 million investment in the Vancouver Company.  Alcatel's
decision not to plow an additional $300 million into the Company left the
Company with a funding gap that it was unable to fill.

A Company spokeswoman said the Company believes the complaint is without
merit.


ALASKA: Policy Denying Fishing Families Food Stamp Benefits Spark
Suit ----------------------------------------------------------------------
Two Togiak women and a Native Organization have filed a class action
claiming the state of Alaska is illegally denying, terminating or reducing
food stamp benefits for families expected to get money from Bristol Bay
fishing, a report from Associated Press Newswires states.  The lawsuit
claims the families are unlikely to get much fishing income.

Attorneys for the two women and the Bristol Bay Native Association (BBNA)
recently filed the lawsuit in Dillingham Superior Court.  The attorneys say
the Division of Public Assistance has booted food stamp recipients off the
rolls in anticipation of fishing income, even though another year of low
salmon returns and rock-bottom prices almost guarantees there will be less
cash.

When a family loses its state benefits, the lawsuit says, it turns to the
Native association for aid.  "Our coffers are being bled dry because of the
state's actions," said Jeff Vance, lead counsel for BBNA.  Mr. Vance and
fellow lawyer Nikole Nelson say they have talked to state officials,
including Gov. Tony Knowles, about altering food stamp policy, but failed to
get the changes they say are needed.

"They sent us a letter saying their policies were good and that they did not
think the problem existed to the extent we are seeing," Ms. Nelson said.
"So, we were forced to file suit."

Chris Ashenbrenner, director of the Division of Public Assistance, said
state policies have not changed and no one is being booted off food stamps
if they need them.  Caseworkers talk over the upcoming season with fishing
families, then reduce benefits if additional income is
expected, she said.  If the interview brings up changes such as an addition
to a family or a decision not to fish, she said, "We take all that into
account."

Ms Ashenbrenner said that the number of Bristol Bay-area families dropped
from the food stamp program this summer is the same as it was last year.
Pearl Strub, director of BBNA's work force development, has a different
perspective.  "We have seen a tremendous increase in families seeking aid
after being denied state help," she said.  "Our
fiscal year is over in September, but I am forecasting that we are not
going to have enough money to meet July's benefits at the rate we are
going."


ANHEUSER-BUSCH: Inland Workers Sue For Overtime Wages in CA State Court
-----------------------------------------------------------------------
Two Inland workers have sued Anheuser-Busch in Riverside County Superior
Court in California, claiming they should have been paid overtime at the
brewer's Riverside distribution center, The Press-Enterprise (Riverside, CA)
reports.

The two men, George Trivich of Rialto and Tim Reyna of Corona, claim that as
sales representatives they did not work on commission, which would qualify
them for overtime.  Mr. Trivich still works for Anheuser, while Mr. Reyna is
no longer with the Company.

A spokesman for the St. Louis-based Company said it had only recently
received the lawsuit and could not comment.

The lawsuit has been filed as a class action, meaning more plaintiffs
can be added to the lawsuit.  However, it must be certified as a class
action, which takes at least a year, said James Davis, the pair's attorney
from Rancho Cucamonga.


ARMSTRONG WORLD: Bankruptcy Court Throws Out Asbestos Flooring Suit
-------------------------------------------------------------------
A bankruptcy judge has thrown out a class action filed against Armstrong
World Industries Inc. by owners of buildings containing old asbestos floors,
eliminating the prospect of a long and costly trial, Associated Press
Newswires reports.

Judge Randall J. Newsome declined to certify that the building owners
designated by the suit might act on behalf of all the owners, and threw out
the lawsuit.  "It would be difficult to concoct a group of class
representatives with greater conflicts, or less incentives, to vigorously
represent the class," Judge Newsome recently ruled.

The building owners had filed suit in August 2001, on behalf of all current
or former owners of properties containing asbestos flooring, which the
Company made until 1982.  They alleged that the old floors posed a health
risk and therefore damaged the value of their properties, all of which the
Company denied.

The lawsuit sought to have the Company pay for a national advertising
campaign alerting property owners to the hazards of asbestos flooring
and helping them identify it.  The Company also would have had to establish
testing centers where property owners could send samples of their flooring
to be checked for asbestos.

Even without the trial, the Company has some distance to go before it
emerges from the protection of the bankruptcy court.  The Company needs
to draft a reorganization and have it approved by its creditors.  The
Company filed for Chapter 11 bankruptcy reorganization in December 2000, to
resolve tens of thousands of claims against it alleging personal injury from
exposure to its asbestos insulation.

However, the biggest legal battles so far have been with the building owners
who claim property damage from the asbestos flooring the company used to
manufacture.  "To date this is the most significant win in Armstrong's
Chapter 11 case.  It puts Armstrong a step closer to resolving its Chapter
11case," said John Rigas, Armstrong general counsel.


APARTHEID LITIGATIONS: Last White President Criticizes Fagan Lawsuit
--------------------------------------------------------------------
South Africa's last white president, F.W. de Klerk, recently said that a
class action seeking large apartheid reparations was raising false hopes
among thousands of victims and threatened efforts to reconcile blacks and
whites, the Reuters English News Service reports.

Mr. de Klerk said that the $50 billion class action against foreign banks
and companies filed by US lawyer Ed Fagan would probably fail, but he feared
it could also discourage badly needed foreign investment in South Africa.
"Clearly, Fagan's lawsuit against the Swiss and American banks would open
the way to chaos," Mr. de Klerk said in a
commentary entitled "False dawn for apartheid victims" published in the
conservative Citizen newspaper.

"Although the case has little substance and is unlikely to succeed, it
does have the potential to cause real harm," said Mr. de Klerk, who was
president from 1989 to 1994, when he lost the country's first all-race
election to Nelson Mandela.

Mr. Fagan became well known in the 1990s for helping force Swiss banks into
a $1.25 billion settlement for Holocaust survivors and their heirs.  He is
now taking aim at six foreign banks accused of giving billions of dollars in
loans that propped up the apartheid regime when it faced international
sanctions in the 1980s.

Mr. de Klerk argues in his commentary that the loans were made largely to
state-owned utilities which had no major role in implementing apartheid,
and, also, that the government of the day was largely self-financing.  "It
did not need the support of Swiss banks to devise and implement apartheid,"
Mr. de Klerk said.


APARTHEID LITIGATIONS: Ed Fagan Plans To Target More Companies in Suit
----------------------------------------------------------------------
The controversial US lawyer campaigning for massive international
compensation for victims of South African apartheid, promised on Saturday to
target scores more companies in his claim, according to a Reuter English
News Service report.

Ed Fagan made the pledge as he launched a 30-day tour to gather support
for his class action against banks and corporations, which he says bolstered
apartheid and contributed to the death, injury and torture of thousands of
black South Africans.

More than 2,000 people have called the toll-free lines set up by his
Apartheid Task Force to register claims, but Mr. Fagan said he planned now
to tour black townships and rural areas to find those without access to
transport and telephones.

Mr. Fagan declined to name the firms he was planning to add to his list, but
said they would include British, US, German, and French companies in sectors
including construction, weapons, pharmaceutical, electronics and energy.
Asked about reports that he had added Siemens and DaimlerChrysler to the
list, he said that his team had not filed against them, but was
investigating the two companies.

Mr. Fagan told a news conference in Capetown that he would be going
before a judge in New York for the first time on August 9 to establish
who the claimants and alleged apartheid conspirators are.  He said he
hoped the case would finish within two to five years.

Although the claim for damages was not for a specific amount, Mr. Fagan
said he expected compensation in the order of $100 billion for the apartheid
victims.  He said he was looking to the German model in the Holocaust cases.
The German model over a period of 55 years has seen repayment, compensation
and common benefit funds in excess of $100 billion, Mr. Fagan told Reuters
after the news conference.

He denied he was raising false hopes or exploiting South Africa's history of
racism and violence, which ended with the 1994 election of Nelson Mandela,
who made reconciliation the theme of his presidency despite 27 years he
spent in jail for fighting white minority rule.

"This is a continuation of the anti-apartheid movement that was so
successful, transitioning from the democratic process to the compensation,
reparations and a full accounting process," Mr. Fagan
said.

He insisted he was not in it for the money and said he wanted to see
companies that helped prolong apartheid forced to reveal their involvement
and face public judgment.  Referring again to the lawyers' compensation,
which is an issue that has been much criticized, Mr. Fagan said that, citing
precedents in the United States, lawyers backing the claim could expect
about two percent of the final award.

Mr. Fagan, so far, has named Swiss banks Credit Suisse and UBS, as well as
U.S.-based Citigroup Inc.  He also has added to his lawsuit International
Business Machines and banks Deutsche, Commerzbank and Dresdner, a unit of
insurer Allianz AG.


BENIHANA INC.: Faces NY Suit Over Federal, State Labor Law Violations
---------------------------------------------------------------------
Restaurant chain Benihana Inc. faces a class action in New York court, which
asserts two claims, one for alleged violations of the minimum wage
provisions of the Federal Fair Labor Standards Act, and one for alleged
violations of New York State Labor Law concerning gratuities.

Certain similarly situated employees may have rights to "opt in" to the
federal claim, while the state claim purports to be brought as a class
action.  No discovery has occurred or been scheduled.

While the Company believes that the suit has no merit, this action is in its
preliminary stages and there can be no assurance that the Company will not
be required to pay a material amount in the settlement or other disposition
of this matter.


CROWLEY MARITIME: CA Court Refuses To Grant Class Certification To Suit
-----------------------------------------------------------------------
The Superior Court of the State of California for the County of Alameda
refused to grant class certification to a securities suit filed against
Crowler Maritime Corp and its board of directors.

The suit was commenced in May 2001 on behalf of Dennis Wood and a class
alleged to consist of certain holders of the Company's common stock, against
the Company and each member of its board of directors.  The suit alleges
that the defendants undertook certain actions to avoid subjecting the
Company to public reporting requirements and caused shares of the Company's
common stock to be purchased and sold at artificially low prices in
connection with the Company's tender offer announced on April 16, 2001.  The
plaintiff originally asserted causes of action for:

     (1) breach of contract,

     (2) breach of fiduciary duty and

     (3) unjust enrichment

The defendants subsequently answered the complaint and moved to dismiss the
breach of contract claim on the grounds that, based on the facts of the
case, the plaintiff could not properly allege such a claim as a matter of
law.  On December 6, 2001, the court dismissed the breach of contract claim
without leave to amend.  The parties are currently participating in
discovery.

On May 24, 2002, a hearing was held on plaintiff's motion to certify this
case as a class action.  On June 10, 2002, the Court denied plaintiff's
motion seeking to certify this case as a class action.  A case management
conference is scheduled for Thursday, June 27, 2002 and trial is currently
set for November 12, 2002.

The Company believes that there are legal and factual defenses to these
claims and intends to defend this action vigorously.  In addition, it does
not believe that the ultimate resolution of this proceeding will have a
material adverse effect on its financial position or results of operations.


DAIMLERCHRYSLER AG: TX Court Grants Class Status To Belt Buckle Suit
--------------------------------------------------------------------
County Judge Hector De Pena recently granted nationwide class action status
to a lawsuit, filed in Texas, against DaimlerChrysler AG on behalf of owners
of Chrysler, Dodge and Jeep vehicles that have a certain type of seat
buckle, the Associated Press Newswires reports.

Class action status was more appropriate because "it would be grossly
inefficient, exorbitantly costly, a waste of judicial resources and an
invitation for conflicting results to require each class member to
repetitively litigate the common issues presented in this cause," Judge
De Pena wrote in his eight-page ruling.

Edwards Law Firm LLP said in a news release that the so-called Gen 3 buckle
is prone to unlatching during accidents, or from around child or infant car
seats in sharp turns or sudden stops.  At least three deaths have been
blamed on the Gen 3 buckle, and four others are under investigation, the law
firm said.

The lawsuit seeks replacement of Gen 3 buckles on about 14 million Chrysler,
Dodge and Jeep vehicles made since 1993.  It also seeks reimbursement for
inconveniences that may be caused during the replacements, up to $500 per
owner.

Plaintiff attorney Billy Edwards said the belts around child car seats seem
particularly prone to this unlatching.  About a third of those responding to
a Gen 3 information Web site established by Mr. Edwards' office complained
that the buckle holding the seat belt around a car seat popped apart during
a sudden stop or turn, or for no discernible reason.

Mr. Edwards said the buckle has a button that sticks out so that a loose
object or flailing arms during a rollover crash could unlatch it by striking
it.  "Our goal is to get DaimlerChrysler to act before this
defect takes more lives," he said.

Mr. Edwards, in 2000, won a $6.7 million lawsuit against the Company on
behalf of the family of a Corpus Christi man killed in 1996, when a Gen 3
seat belt buckle released during a rollover accident involving his 1997
Dodge Caravan.

"Why in the world would Daimler Chrysler put the safer seat belt design in
only one part of a vehicle in the first place, much less keep the one with
the tendency to come unlatched in the back, where the kids sit?" Mr. Edwards
said.


GADZOOX NETWORKS: Plaintiffs File Amended Securities Suit in S.D. NY
--------------------------------------------------------------------
Plaintiffs in the securities class actions against Gadzoox Networks, Inc.
filed a consolidated amended suit in the United States District Court for
the Southern District of New York.

The suits were commenced in June 2001 against the Company, three former
officers, and two underwriters in the Company's initial public offering.
The suits allege:

     (1) violations of Section 11 of the Securities Act of 1933 (the
         Securities Act) against all defendants,

     (2) a violation of Section 15 of the Securities Act against the
         individual defendants, and

     (3) violations of Section 12(a)(2) of the Securities Act and
         Section 10(b) of the Securities Exchange Act of 1934 (and Rule
         10b-5, promulgated thereunder

The suits seek unspecified damages on behalf of a purported class of
purchasers of the Company's common stock between July 19, 1999 and December
6, 2000

On May 8, 2002, plaintiffs filed a consolidated amended complaint.  The
allegations of the amended complaint focus on purported actions of the
Company's underwriters in its 1999 IPO.  The plaintiffs claim that the
underwriters solicited and received excessive commissions from investors in
exchange for favorable allocations of IPO shares.

The plaintiffs also claim that the underwriters entered into agreements with
their customers whereby, in exchange for favorable allocations of shares in
the offering, the customers would commit to purchase additional shares in
the aftermarket at predetermined prices.

The plaintiffs contend that the Company is liable under Section 11 of the
Securities Act because its registration statement in the IPO did not
disclose the purported actions by the underwriters.  The amended complaint
also brings claims under Section 10 (b) of the Exchange Act and Rule 10b-5
promulgated thereunder, contending that the Company and the individual
defendants knew of, participated in or acted with  reckless disregard to the
alleged misconduct of the underwriters.

Various plaintiffs have filed similar actions asserting virtually identical
allegations against more than 300 other companies.  The lawsuits against the
Company and all of these other related lawsuits have been coordinated for
pretrial purposes and are presently being overseen by Judge Shira A.
Scheindlin.

The Company believes it has meritorious defenses to these securities
lawsuits and will defend the lawsuits vigorously.


HALLIBURTON COMPANY: Faces Multiple Securities Fraud Suits in TX Court
----------------------------------------------------------------------
Halliburton Co. (HAL) faces at least 10 securities fraud lawsuits following
disclosure that the Securities and Exchange Commission (SEC)
is investigating the Company's accounting policies, Dow Jones Business
News reports.

The suits, which are seeking class action status in federal courts in
Texas, arise from questions about the Company's accounting of cost overruns
on construction jobs.  Several of the lawsuits, such as one filed by the law
firm of Schatz & Nobel PC of Hartford, Conn., allege
that the Company "violated federal securities laws by issuing false and
misleading statements" concerning its accounting between July 22, 1999
and May 28, 2002.

Both the lawsuits and the SEC's preliminary investigation follow a May 22
article in The New York Times questioning the Company's accounting.  The
investigation is also noteworthy because Vice President Richard Cheney was
chief executive of the Company until he resigned in August 2000 to be
President George W. Bush's running mate.

The Company's vice president for investor relations, Cedric Burgher, said
recently that the Company does not believe the cases have merit.  "When you
see an investigation, you will see these suits," he said.
"It's to be expected."

Analysts have shrugged off the SEC's probe, saying that the Company's
accounting was standard in the construction industry, and that the amount at
issue would not be material to a company that reported $13 billion in
revenue last year.

These lawsuits come as federal securities class actions are on the rise amid
the downturn in the stock market and revelations about corporate-accounting
scandals.  Joseph Grundfest, a former SEC commissioner and now a professor
at Stanford University Law School, released a study in March showing 327
securities lawsuits were filed in 2001, a 60 percent increase from the year
earlier.  "Plaintiffs continue to have powerful economic incentives to sue
many companies for large sums of money," Professor Grundfest said.

John Olson, a securities lawyer for Gibson Dun & Crutcher in Washington,
said the 10 securities lawsuits against the Company are not unusual.  Such
lawsuits normally are filed quickly after disclosure of an SEC probe since
plaintiffs' lawyers are competing to be named lead counsel, which results in
larger fees.

"They like to get in early and get notices out early so they have a better
shot for attracting a larger number of plaintiffs," Mr. Olson
said.


HORTI-PAK INC.: Faces $80M Suit Over June 22 Kingsville, Ontario Fire
---------------------------------------------------------------------
Horti-Pak, Inc. faces an $80 million class action as a result of the
plastics factory fire, which occurred in Kingsville, Ontario, on June 20,
2002.  The suit also names as defendants 1099029 Ontario Limited

The plaintiffs, Jim Ludwig, Alison Causton, Sere Farms, August Keller and
Ilse I. Keller launched the suit on behalf of all persons, other than the
defendants and their employees, who owned property or owned or occupied
lands and premises within the Town of Kingsville on June 20, 2002.

In the late evening of June 20, 2002, a fire occurred at 106 Wigle Avenue in
Kingsville where the Company operated an industrial plastic manufacturing
business from premises owned by 1099029 Ontario Limited.
For the next several days, smoke emanated from the fire and spewed
combustion-produced chemicals and other material over the Town of
Kingsville.  Residents in the immediate area of the fire were evacuated from
their residences in the early morning hours of June 21st and a second time
on June 22nd along with additional residents who were more removed from the
site of the fire.

The suit alleges that the fire and the consequent wrongful release of smoke
vapors and toxins into the air, water, soil, vegetation and lands and
premises in the Town of Kingsville constituted both a private and public
nuisance for which the defendants are responsible.  The suit further alleges
that the fire and the consequent damages in the Town of Kingsville were
caused by the negligence of the defendants.

"Fires fueled by plastics, rubber and polymerized materials always present
an unknown toxic threat. Residents may not know that there are likely over
200 combustion-produced chemicals possible from this fire," said Harvey T.
Strosberg, class counsel.

"We know that the provincial environment ministry is testing for the
presence of chemical classes. We know already that three certain
carcinogens, styrene and vinyl chloride monomers plus the chemical class
known as PAHs, were present in some concentration. What we don't know is
whether the ministry's testing addresses the actual biological damage and
hazard assessment data available from bioassay information," added Mr.
Strosberg.

Mr. Strosberg's legal team is consulting with experts to attempt to ensure
that testing is being done to understand the actual threat from the organic
chemicals produced in the fire.  "However, regardless of the results of the
testing, there is no disputing that residents' lives have been disrupted and
their property affected as a result of the fire, redress for which is sought
in this action," added Mr. Strosberg.

The suit is a method for persons with common issues to join in a single
court proceeding rather than each bringing an individual lawsuit.

For more details, contact Harvey T. Strosberg by Phone: 519-561-6228
(Windsor office) or 416-362-7272 (Toronto office) by Fax: 519-561-6203 by
E-mail: hts@strosbergco.com or visit the firm's Website:
http://www.fireclassaction.comor http://www.strosbergco.com


KENTUCKY: Appeals Court Reinstates Challenge To Emergency Services Tax
----------------------------------------------------------------------
The Kentucky Court of Appeals reinstated a challenge to a $60 fee assessed
by the city of Bromley, Kentucky for emergency services, brought by a city
council member who opposed the measure, Associated Press Newswires reports.

The appeals court, in a unanimous ruling from the three-judge panel, said
that council member Gail Smith can pursue her lawsuit against the emergency
services tax of $60 as a class action, which means, of course, that the
decision or settlement forthcoming from the litigation will apply to
everyone who paid the tax.

The appeals court, however, declined to let Ms. Smith pursue her lawsuit
against a $75 tax assessed on mobile homes, ruling that she has no standing
to sue in relation to such a tax, since she neither owns nor lives in a
mobile home.

A Kenton Circuit Court ruling had dismissed both of Ms. Smith's lawsuits.

Judge William Knopf of the Kenton Circuit Court had said that Ms. Smith
had no standing to sue on the mobile home tax, giving a complex political
reason for its decision.  The Appeals Court upheld Judge Knopf's dismissal
of the suit against the mobile home tax, but posited
its  straightforward and simple reason that, since Ms. Smith does not
own or live in a mobile home, she does not have standing to challenge
the tax levied on a mobile home.

The Court of Appeals not only reinstated Ms. Smith's right to challenge the
emergency services tax, but held, as well, that she could pursue it as a
class action.

The Bromley city council enacted both the taxes in 1999.  The $60 levy was
assessed against every residential lot and business in the Kenton County
city.


MEATPACKING INDUSTRY: Ranchers' Pricing Fraud Lawsuit Gains Momentum
--------------------------------------------------------------------
Ranchers suing the nation's four biggest meatpackers may have a hard
time proving their case, Michael Held, administrative director of
the South Dakota Farm Bureau, said, according to a report by the Aberdeen
American News (SD).

The class action, launched by three ranchers, accuses the packers of not
correcting a US Department of Agriculture (USDA) mistake on the reported
price of boxed beef.  Instead, the packers took advantage of the mistake to
buy cattle at lower prices.  It will not be easy for them (the ranchers) to
show that the meatpackers knowingly bought cattle at prices lower than they
should have been, Mr. Held said.

The suit was filed in the United States District Court in Pierre, South
Dakota, by ranchers Herman Schumacher of Herreid, S.D., Michael P.
Callicrate of Kansas and Roger D. Koch of Nebraska.  The suit names as
defendants:

     (1) Excel Corporation,

     (2) ConAgra Beef Co.,

     (3) Farmland National Beef Packing Co. and

     (4) Tyson Foods, which recently bought Dakota Dunes-based IBP.

Roger Gerdes, a rancher and director of the Beef Industry Council for the
South Dakota Beef Breeds Association, however, expressed support for the
lawsuit.

The National Cattlemen's Beef Association had considered a similar
lawsuit but eventually decided to devote its resources to other issues,
said Bryan Dierlam, the group's director of legislative affairs.  The
effects of the USDA's erroneous numbers were so widespread it would have
been difficult to determine who deserved compensation, he said.

The current system allows meatpackers to take unfair advantage of
farmers and ranchers, said Bill Bullard, CEO of R-Calf United Stock
Growers of America.


NETWORK ASSOCIATES: Shareholder Files Suit To Stop McAfee.com Deal
------------------------------------------------------------------
Network Associates, Inc. faces a class action filed stop the Company's
proporsal to buy stock from McAfee.com, which the Company is a majority
stockholder, the Deseret News reports.

McAfee.com shareholder Justin Peyton filed the lawsuit recently in the
Superior Court of the State of California, County of Santa Clara, the filing
said.  The defendants named in the lawsuit are the Company and:

     (1) George Samenuk, Chairman and Chief Executive and

     (2) Stephen Richards, Financial and Operating Chief, and

     (3) three directors

McAfee.com, based in Sunnyvale, California, is a consumer application
service provider.  It provides users with online services to secure, manage
repair, update and upgrade their personal computers over the Internet.

Network Associates, based in Santa Clara, California, supplies enterprise
network security and management services.  In a filing recently with the
Securities and Exchange Commission, the Company said the suit accuses it and
several executives and directors of breaching their fiduciary duties.

"Network Associates' proposed acquisition is the product of a hopelessly
flawed process that was designed to ensure the sale of McAfee.com to one
buyer and one buyer only, on terms preferential to Network Associates and to
subvert the interests of plaintiff and the other public stockholders of
McAfee.com," according to a copy of the lawsuit included in the SEC filing.

In 1999, the Company held an initial public offering and sold 25 percent of
its stake in McAfee.  Network Associates has that reacquiring full ownership
of McAfee is part of the Company's effort to unify its strategy for
small-to-medium markets and eliminate overlapping objectives between its
business units, with a view towards cutting some costs, it said in merger
documents recently filed with the SEC.

Last Tuesday, the Company launched a tender to exchange 0.78 share of its
common stock for each McAfee common share it does not already hold.  The
tender is scheduled to expire at midnight EDT July 30, unless extended.  The
lawsuit alleges the offer is inadequate, among other things.

Based on last Wednesday's closing prices, the ratio values the 12 million
McAfee.com shares that the Company does not own at about $178 million, or
$14.84 a share.  The deal, identical to a bid the Company abandoned in
April, was originally valued at $225 million, or about $17.55 a share.

The Company was just about to close a similar bid in April, but withdrew the
offer after discovering accounting irregularities that required it to
restate financial results for 1998, 1999 and 2000.  The restatements were
filed with the SEC on June 28.

In the merger documents filed with the SEC, the Company said several
lawsuits filed in connection with its April offer were not withdrawn and
that it expected similar complaints to be filed related to the pending
tender.

"We intend to vigorously defend any such cases," the Company said.


NEW YORK: Amityville's School Vote Stands For Now Despite Lawsuit
-----------------------------------------------------------------
The results of last month's school board election in Amityville, currently
the subject of a million-dollar class action, will stand for now, state
Education Commissioner Richard Mills has ruled, Newsday reports.

Mr. Mills, this week, refused a request from a group alleging voting
irregularities, as a reason to delay seating the new board, while the state
considers an appeal of the voting results, said state Education Department
spokesman Bill Hirshen.

It will take at least 60 days for Mr. Mills to issue a ruling on the appeal
of the alleged voting irregularities, brought by the community group Strong
Voice Parents.  Mr. Mills could order a recount or a new election if the
group can prove that the alleged voting irregularities made a difference in
the outcome of the election.

Last week, Strong Voice Parents filed suit in US District Court in Central
Islip, charging that district officials tampered with voting machines to
change the election tallies.  The election installed a predominantly white
school board to oversee a district with an overwhelming minority enrollment.
The class action seeks $1 million in actual damages and $3 million in
punitive damages.

The election controversy caps a period of increasingly contentious
fights about school district policy that has polarized the community
along racial lines.


POLYMEDICA CORP.: MA Court Refuses To Dismiss Securities Fraud Suit
-------------------------------------------------------------------
The United States District Court for the District of Massachusetts refused
to dismiss the consolidated securities class action against Polymedica
Corporation and one of its officers.

The suit alleges violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seeks
unspecified damages, attorneys' fees and costs.  The suit was later amended
to include all purchasers of the Company's stock from October 26, 1998
through August 21, 2001, and name an additional two officers as defendants.

The Company moved to dismiss the suit on December 2001. The court denied the
motion without a hearing on May 10, 2002.

The Company will file answers to the consolidated amended complaint shortly.
The Company believes that it has meritorious defenses to the claims made in
the consolidated amended complaint and intends to contest the claims
vigorously.


PSS WORLD: Asks FL Court To Dismiss Consolidated Securities Fraud Suit
----------------------------------------------------------------------
PSS World Medical, Inc. asked the United States District Court for the
Middle District of Florida to dismiss the consolidated securities class
action against it and certain of its present and former directors and
officers.

The suit was filed on behalf of persons who purchased or acquired PSS the
Company's common stock at various times during the period between October
26, 1999 and October 3, 2000.  The suit alleges, among other things,
violations of Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder, and seeks unspecified damages.

The plaintiffs allege that the Company issued false and misleading
statements and failed to disclose material facts concerning, among other
things, the Company's financial condition.  The plaintiffs further allege
that because of the issuance of false and misleading statements and/or
failure to disclose material facts, the price of the Company's common stock
was artificially inflated during the class period.

The Company believes that the allegations contained in the suit are without
merit and intends to defend vigorously against the claims. There can be no
assurance that this litigation will be ultimately resolved on terms that are
favorable to the Company.


PSS WORLD: Faces Overtime Wage Law Violations Suit in CA Federal Court
----------------------------------------------------------------------
PSS World Medical, Inc. faces a class action suit brought by three former
and present employees of the Company, in the United States District Court
for the Central District of California, Santa Ana Division.

The plaintiffs allege that the Company wrongfully classifies its purchasers,
operations leader trainees and account receivable representatives as exempt
from the overtime requirements imposed by the Fair Labor Standards Act and
the California Wage Orders.

The plaintiffs seek court approval to proceed as a collective action under
the Fair Labor Standards Act, a representative action under California's
Unfair Competition Act and/or a class action on behalf of all persons in the
United States who have occupied any one of the three positions within the
pertinent limitations period.

The Company intends to vigorously defend against the claims, but there can
be no assurance that this litigation will be ultimately resolved on terms
that are favorable to the Company.


ROGERSCASEY INC.: Labels "Without Merit" Global Crossing 401(k) Suits
---------------------------------------------------------------------
RogersCasey, Inc. (formerly Barra RogersCasey, Inc.) was named as a
defendant in a number of class actions commenced since February 5, 2002, on
behalf of participants in the Global Crossing, Ltd. Employees' Retirement
Savings Plan, a 401(k) plan operated and administered by Global Crossing
Ltd.  Ten of the complaints have been filed in the United States District
Court, for the Central District of California, Western Division, and three
have been filed in the Western District of New York.  Other defendants
include the administrators and directors of the Plan, as well as officers
and directors of Global Crossing, Ltd.

In the complaints that have been served on the Company, the plaintiffs
generally allege that the defendants failed to fulfill their fiduciary
duties owed to the Plan's participants under the Employee Retirement Income
Security Act of 1974 (ERISA) in connection with allegedly undisclosed
information regarding Global Crossing's business and financial condition and
seek unquantified monetary damages and other unspecified equitable remedies.

These lawsuits are in the early organizational stages.  Several parties have
filed motions to consolidate these cases into a single lawsuit in the
Central District of California.  The Company has not yet filed a response to
the complaints, but a motion to consolidate the actions before a single
court has been filed by the other defendants before the Judicial Panel on
Multidistrict Litigation.

The Company has sent letters to the plaintiffs' counsel indicating that it
believes the claims against it are groundless, that the plaintiffs should
dismiss RogersCasey as a defendant, and that it intends to file a motion to
compel arbitration of the claims made in the lawsuits as provided in the
Company's engagement contract and pursuant to the Federal Arbitration Act.

The Company believes these suits are without merit and intends to vigorously
defend against them.  At this time it is too early to estimate any potential
losses from this action, but the Company currently believes that the outcome
of these actions will not have a material effect on its business, financial
condition or results of operations.


SCHERING-PLOUGH: FTC, Advocacy Group Continuing Drug Antitrust Fight
--------------------------------------------------------------------
Attorneys at the Federal Trade Commission (FTC) are not giving up in their
fight against Schering-Plough Corp., a case that could have far-reaching
implications for the pharmaceutical industry, The Star-Ledger reports.

Lawyers for the regulatory agency will appeal a decision by an
administrative law judge, who dismissed charges the FTC brought against the
Company and a generic drug company, Upsher-Smith Laboratories.  Last year,
the FTC charged Schering-Plough with illegally paying Upsher-Smith up to $90
million to delay launching cheaper, generic versions of the drug K-Dur, a
potassium chloride supplement often prescribed to patients undergoing
treatment for high blood pressure.

The Company and Upsher contend that their 1997 agreement settling a patent
infringement lawsuit, allowed the generic manufacturer to begin selling the
generic drug sooner than if the matter was litigated in court, and therefore
helped consumers.  However, FTC's contention that
Upsher was receiving payments from the Company to keep cheap generic
versions of the drug off the market, in addition to being illegal, would
cancel any consumer benefit to be derived from the 1997 agreement.

Some industry representatives have said that FTC's loss against the Company
could hurt other lawsuits brought by consumer groups that contend the major
pharmaceutical companies and generic competitors
have conspired to keep cheaper generic drugs off the market.

However, Ahaviah Glaser, director of the Prescription Access Litigation
Project, said the organization will continue to aggressively pursue its
cases.  The organization filed a class action on behalf of consumers last
year, alleging that three companies cited by the FTC had inflated prices
artificially.  It also filed a similar suit against AstraZeneca over the
cancer drug Tamoxifen.


SELECTICA INC.: Plaintiffs File Amended Securities Suit in S.D. NY
------------------------------------------------------------------
Plaintiffs in the securities class action against Selectica, Inc. filed a
consolidated amended suit in the United States District Court for the
Southern District of New York.  The suit names as defendants the Company,
certain of its executives, and the underwriters of its initial public
offering (IPO).

The complaints allege that the defendants violated federal securities laws
by making material false and misleading statements in the prospectus
incorporated in the Company's registration statement on Form S-1 filed with
the SEC in March 2000.

The suits allege, among other things, that the Company's underwriters
solicited and received excessive and undisclosed commissions from several
investors in exchange for which they allocated to these investors material
portions of the restricted number of shares of common stock issued in
connection with the Company's IPO.

The complaints further allege that the underwriters entered into agreements
with its customers in which they agreed to allocate the common stock sold in
the Company's IPO to certain customers in exchange for which such customers
agreed to purchase additional shares of the
Company's common stock in the after-market at pre-determined prices.

In August 2001, these actions were consolidated before a single judge along
with cases brought against numerous other issuers and their underwriters
that make similar allegations involving the IPOs of those issuers.  The
consolidation was for purposes of pretrial motions and discovery only.

The Company labeled the allegations "without merit" and intends to
vigorously defend against the suit.


SELECTICA INC.: Shareholder Files Derivative Suit in CA State Court
-------------------------------------------------------------------
Selectica, Inc. faces a shareholder derivative suit filed in the Superior
Court of California, Santa Clara County, against certain officers and
directors of the Company as well as the underwriters of the Company's March
13, 2000 initial public offering (IPO) and against the Company as nominal
defendant.  The action was filed by a shareholder purporting to assert on
behalf of the Company, claims for:

     (1) breach of fiduciary duty,

     (2) aiding and abetting and conspiracy,

     (3) negligence,

     (4) unjust enrichment and

     (5) breach of contract relating to the pricing of shares in the
         IPO

The Company believes that the allegations against it and its officers and
directors are without merit and intends to contest them vigorously.
However, the litigation is in the preliminary stage, and the Company cannot
predict its outcome.  The litigation process is inherently uncertain.  If
the outcome of the litigation is adverse to the Company and if, in addition,
the Company is required to pay significant monetary damages, the Company's
business would be significantly
harmed.


SUNTERRA CORP.: FL Court Dismisses Consolidated Securities Fraud Suit
---------------------------------------------------------------------
The United States District Court for the Middle District of Florida, Orlando
Division dismissed without prejudice a consolidated securities class action
against Sunterra Corporation.

The suit was filed, relating to a putative securities class action brought
on behalf of purchasers of the Company's common stock the period from
October 8, 1998 through January 19, 2000.  Originally, the Company and
several of its officers and directors were named as
defendants in the suit.

Following the filing of the Chapter 11 cases by the Company, the suit was
automatically stayed against the Company pursuant to Bankruptcy Code Section
362.  The suit then named the Company's former officers and two current
directors as defendants, as well as Arthur Andersen, LLP, the Company's
independent auditors during the class period.

In the spring of 2001, all of the defendants moved to dismiss the suit,
which the court granted without prejudice on March 12, 2002.  Pursuant to
the district court's order, the plaintiffs were to file a second amended
complaint on or before May 3, 2002, which was subsequently extended to July
3, 2002, by order dated May 2, 2002.


TELLABS INC.: Qwest CEO Named In Securities Suit Against Former Company
-----------------------------------------------------------------------
Qwest Communications Chief Executive Richard Notebaert has been named in a
class action alleging his former company, Tellabs Inc., made misleading
statements about revenue expectations last year, The Associated Press
reports.  Michael Birck, chairman of Tellabs' board of directors also was
named in the lawsuit.

The suit, filed in United States District Court in Chicago, alleges that
Tellabs made misleading statements that demand for its products was strong,
and that the Company would meet earnings and revenue forecasts.  The lawsuit
says further that the allegedly misleading statements were made between
December 11, 2000, and June 19, 2001.

Company spokeswoman Jennifer Stiglic said recently that earnings guidance
was issued March 7, 2001, and April 6, 2001.  Revised guidance for the
second quarter was issued June 19, 2001, said Ms. Stiglic.  The Company will
fight the lawsuit, she said.  "We do not believe the
complaint has any merit."

Qwest spokesman Chris Hardman said that Mr. Notebaert and the Company would
have no comment.  Mr. Notebaert was named CEO last month after
Joseph Nacchio resigned amid a Securities and Exchange Commission (SEC)
inquiry into Qwest accounting practices.  Analyst Thomas Friedberg, at
Brean Murray & Company, said that the lawsuit's charges "probably will have
little or no effect on Mr. Notebaert's reputation.  Mr. Friedberg added that
any telecom-equipment company is "vulnerable to shareholder
actions or nuisances" because of the industry slump.

F. Drake Johnstone, an analyst with Davenport & Co. presents another 'take'
on the effect of the shareholders' suit naming of Mr. Notebaert as a
defendant.  Mr. Johnstone said the suit deals another blow to Qwest, whose
accounting is being investigated by the Securities and Exchange Commission,
by raising questions of Mr. Notebaert's integrity and reliability as
Tellab's chief executive officer, thereby casting a
shadow over Mr. Notebaert's current role at Qwest.

The class action, also alleges, among other things, that five weeks after
Tellabs officials reassured investors that it would meet financial targets
for the second quarter of 2001, the Company revised revenue and profit
estimates for the quarter.  Tellabs has pointed, in
defense, to fast-changing market conditions as a reason for its actions.

"At the time in question, the market changed abruptly," Ms. Stiglic said.
"As soon as we realized that our customers were scaling back their spending,
we revised our revenue forecasts and informed our
shareholders."


UNIROYAL TECHNOLOGY: Mounting Strong Defense V. Securities Fraud Suits
----------------------------------------------------------------------
Uniroyal Technology vowed to defend against the securities class action
filed by a New York shareholder, alleging that the Company issued misleading
press releases and reports, and withheld damaging information about its
financial condition, according to a report by the Sarasota Herald-Tribune.

The suit, which seeks to represent those who bought Company stock from
February 8, 2000, to May 13, 2002, was filed in Tampa federal court by
lawfirm Milberg Weiss Bershad Hynes & Lerach LLP, a leading class action law
firm.  The suing shareholder, Rosa Belloco, alleges that the Company issued
false press releases about the status and potential of its acquisition in
the compound semiconductor field, Sterling Semiconductor Corp.  That caused
investors to buy the Company's stock at artificially inflated prices, the
lawsuit said.

The press releases touted the acquisition of Sterling and that it would
position the Company for growth.  Subsequent events showed that the Company
was not financially stable and that Sterling was not worth what the Company
paid for it, the lawsuit contended.

Among other allegations, the suit also claims a conflict of interest
revolving around the father-son relationship between Company chairman,
Howard R. Curd, and the head of the investment banking firm Jesup & Lamont
Securities Corp., Howard F. Curd.  Jesup & Lamont handled
many of the Company's purchases and sales.

Company chairman, Howard R. Curd, said he does not think the suit has
any merits and "we have very good defenses against it.  Basically, there are
law firms that spend their time on these things, and every time a stock
moves, they push a button and out comes a lawsuit."  The elder Curd also
pointed out that Jesup & Lamont has a long history of serving as investment
banker to the Company, going back to early 20th century deals when it was a
tire maker.


UNITED STATES: Plan For Racial Bias Talks Ends Black Farmers Sit-in
-------------------------------------------------------------------
African-American farmers recently ended a sit-in at a United States
Department of Agriculture (USDA) office in Brownsville, Tennessee, after
federal officials agreed to meet with them next week to discuss their
allegations of discrimination, The Washington Post reports.

The 15 protesters said department field offices wrongly denied crop loans to
black farmers.  The sit-in began last Monday after a rally by 150 farmers
and their supporter from 11 states.

Protest leader Gary Grant said demonstrators would start meeting with
Agriculture Secretary Ann M. Veneman's representatives on Tuesday of this
week.  The demonstrators' representatives will meet with Secretary
Veneman next Friday.  These meetings were offered in a letter from the
Department to the Black Farmers and Agriculturalists Association on
Wednesday of last week.

The group has asked for immediate ruling on five loan applications.  The
answers arrived last Friday, but Mr. Grant would not say whether the loans
were approved.  The USDA office sit-in was planned to show support for five
Tennessee farmers who were still waiting for their farm loans to be
processed when planting season ended July 1.

In 1999, the Agriculture Department settled a class action in which black
farmers said they had been denied loans by regional offices for decades when
white farmers had not received similar denials.  The department says it has
paid more than $615 million as of February on more than half of the 22,692
claims filed.  However, the protesters say
current loan applications from black farmers continue to be processed
slowly.

"We are leaving this (Agriculture Department office) tonight and giving
it back to the USDA officials to do, from now on, the right thing by all
farmers, especially the black farmers," Mr. Grant said.


WEST VIRGINIA: DSHS Provides $5.5 Million Bonus For State Welfare Needs
-----------------------------------------------------------------------
West Virginia will get a $5.5 million high-performance bonus for putting
welfare recipients to work and helping them stay employed, federal officials
announced recently.  The funds came from the US Department of Health and
Human Services (DSHS) and were distributed to states that qualified for
helping parents find jobs and keep jobs during fiscal year 2000.

Paul Nusbaum, secretary of West Virginia's Department of Health and
Human Resources (DHHR), said the money came as a surprise.  Mr. Nusbaum
has cut child care to low-income working families and more than $27
million worth of contracts aimed at helping low-income families and
abused and neglected children.   Those cuts were necessary, Mr. Nusbaum
said, to avoid a $90 million shortage in the state's welfare budget.

DHHR officials are busy defending the state's welfare system, called
West Virginia Works, in a class action before the state Supreme Court, in
which women whose families lost welfare assistance after reaching the
60-month limit have been testifying about the hardships their families are
experiencing.  The 60-month limit was mandated by the federal Temporary
Assistance for Needy Families program, passed by Congress in 1996.

Attorney Larry Harless filed the lawsuit on behalf of the families,
challenging the limits on the state's welfare program, even though
limits have been set by the federal government.  The source of state
authority that may mandate that West Virginia provide some measure of
aid for families dropped because of the federal statute's mandate, may
be the state's constitution.


WISCONSIN: Plans To Use Share of Tobacco Settlement To Balance Budget
---------------------------------------------------------------------
Wisconsin lawmakers are considering using the state's entire share of the
national tobacco settlement, once estimated to be worth $5.9 billion, to
help cover a one-time budget deficit, the Associated Press Newswires
reports.

The tobacco settlement, signed in 1998, by tobacco companies involved in a
class action over health care costs, was established to pay the states over
a 25-year period.  About a dozen states, including Wisconsin, chose instead
to sell the future profits to investors, leaving them only a fraction of the
promised money, but making it available immediately.  Most of these states
put the money into escrow to earn interest.

Wisconsin is the only state considering using all the profits for a one-time
Band-Aid, according to the National Conference of State Legislatures.  "It
is fiscally irresponsible, and it blows what we could be using in the future
to fight death and disease in Wisconsin," said Maureen Busalacchi, deputy
director for SmokeFree Wisconsin.

The state sold its tobacco settlement payments in May for about $1.3
billion.  In effect, it sold bonds to investors to borrow against its share
of the settlement.

The state Senate last week passed a bill that would use the remaining $825
million of that amount, it already had approved using the other $450
million, to solve a $1.1 billion deficit.  The Assembly will consider the
proposal this coming Monday.

Before the state learned of its budget deficit, it had planned to put the
money into a permanent endowment fund and use the interest to pay for
anti-smoking efforts and other state programs.  The state's tobacco control
board, which has a $15 million budget for 2002-2003, had been slated to get
$25 million a year.

Tim Roby, a spokesman for Gov. Scott McCallum, said Wisconsin was left with
little choice once it became clear the Legislature was not going to adopt
the governor's plan to phase out the $1 billion in state aid to local
governments to use for programs such as police and fire protection.  "If you
don't use the tobacco money, you are faced with extra serious decisions,
including a huge tax increase.  That was not going to happen," Mr. Roby
said.  "It's our rainy day fund, like it or
not."


WISCONSIN: Supermax Prison Must Monitor Temperatures Of Inmates' Cells
--------------------------------------------------------------------
Wisconsin's ultrasecurity Supermax prison must monitor the temperatures
inside inmates' cells and remove prisoners if conditions get too hot, US
District Judge Barbara Crabb recently ruled, according to a report
by Associated Press Newswires.

Attorneys for inmates in a class action over the conditions at the prison in
Boscobel, asked Judge Crabb to review the issue of cell temperatures at
Supermax because of the high temperatures in Wisconsin during the past 10
days.  The lawsuit has been settled, but Judge Crabb
is maintaining an ongoing supervision of conditions at the Supermax, so
that conditions she has ruled on, before the settlement and since,
reflect an aim to remove brutality from the system.

Prison officials, therefore, were to try to maintain cell temperatures
between 80 and 84 degrees, in summer, under a settlement reached between
state corrections officials and inmates who had filed the class action.  In
an order she recently issued, Judge Crabb said prison officials have issued
shorts to inmates and allowed them to take one shower each day, up from
three a week.  Judge Crabb understood that fans in cells might pose safety
risks and she would not order issuance of fans to cells without scheduling a
hearing on the issue.

In the meantime, Judge Crabb ordered Warden Gerald Berge to submit by July
15, an affidavit affirming that all inmates have access to cold water in
their cells at all time and provide the court with the water temperature, as
well.

Judge Crabb also included in the order an admonishment that the cells must
be monitored each day for temperature and water and inmates must be removed
from cells in which the temperature reaches 94 degrees or higher, unless
"compelling considerations prevent such removals," Judge
Crabb said.


WORLDCOM INC.: Pension Plans To Sue Investment Banks Over Company Bonds
-----------------------------------------------------------------------
A number of public pension funds are expected to file a class action over
their on WorldCom Inc. bonds, Dow Jones Business News reports.

The suit will be brought against Wall Street firms that underwrote a
record $11.8 billion bond issue in May 2001, as well as against WorldCom,
Inc. itself, William Lerach, a lawyer with the law firm of Milberg Weiss,
said.   Mr. Lerach also represents Enron Corporation's shareholders in a
lawsuit against Arthur Andersen and Enron's bankers.

Mr. Lerach said his law firm is representing "a number of large public
pension funds" but he did not disclose further details.  "In the next
couple of days, you will see some developments," he said.

Salomon Smith Barney and JP Morgan Chase & Co. (JPM) served as lead
underwriters on the WorldCom bond deal, which has left investors with losses
of about $10 billion in the past 13 months.

The California Public Employees' Retirement System has said it faces
$330 million in losses from WorldCom bonds, while the New York State
Common Retirement Fund has lost more than $300 million on its investment in
the Company's stock and bonds.

The New York fund said recently it has filed a motion to be lead plaintiff
in a shareholder lawsuit against WorldCom, some of its
officers and directors and its accounting firm Arthur Andersen.


WORLDCOM INC.: Indiana's Pension Funds Lose $66 Million In Collapse
-------------------------------------------------------------------
The collapse of WorldCom, Inc. has cost the state of Indiana's two largest
pension funds about $66 million, more than twice the amount lost when Enron
crumbled, the Associated Press Newswires reports.

Both pension funds have joined a class action against Enron and it is likely
that both funds will join a similar suit against the Company, although this
is still in the talking and considering stage.  William
Christopher, executive director of one of the funds, the Teachers'
Retirement Fund, said that that decision will be up to the funds' boards of
trustees.

However Indiana's state employees and teachers, whether still working
or retired, should not worry about their pensions, according to E. William
Butler, executive director of the Public Employees' Retirement
Fund, one of the two large pension funds.  The $66 million lost is a tiny
fraction of what the major two pension funds are worth, Mr. Butler
said.  The two major funds lost about $25 million when Enron's stock
tumbled.

The Public Employees' Retirement Fund manages $11 billion worth of assets,
and the second major fund, the Teachers' Retirement Fund manages $6 billion.
"We can absorb this loss in the short term.  We focus on the long haul,"
said Mr. Butler.

Together these two funds serve nearly 400,000 Indiana residents, about
275,000 working and retired state and local government employees participate
in the Public Employees Retirement Fund and about 115,000
retired and working educators are served by the Teachers' Retirement
Fund.  When WorldCom nose-dived, the teachers' fund lost about $9.4
million, and the public employees' fund lost about $56.4 million.

The Indiana pension funds began investing in publicly traded companies in
January 1997, after the state constitutions prohibiting stock
investment was changed.  Proponents of the amendment had argued that
allowing state pension funds to be invested in the market would make
more money for the funds.


WORLDCOM INC.: Stockholder Files Suit Alleging Fraud, Gross Negligence
----------------------------------------------------------------------
A WorldCom, Inc. stockholder added to the growing list of class actions
against the fallen communications giant, by filing a suit in the United
States District Court in Jackson, Mississippi, the Associated Press
Newswires reports.  The suit names as defendants the Company and former
chief executive officer Bernard J. Ebbers, among others.

The suit claims fraud and gross negligence by the defendants and
seeks unspecified damages.  The only named plaintiff in the lawsuit is James
T. Shotts, address unavailable.  The suit was filed by Pascagoula attorney
Michael L. Fondren.  Calls to his office were not answered.

The Company revealed last month that it had accounted improperly for nearly
$4 billion in expenses, which inflated its financial results.


XEROX CORPORATION: Asks For Dismissal of Consolidated Securities Suit
---------------------------------------------------------------------
Xerox Corporation asked the United States District Court for the District of
Connecticut to dismiss a consolidated securities class action pending
against it and:

     (1) Paul A. Allaire,

     (2) G. Richard Thoman,

     (3) Anne M. Mulcahy,

     (4) Barry D. Romeril,

     (5) Gregory Tayler and

     (6) Philip Fishbach

The suit, filed on all purchasers of securities of, and bonds issued by, the
Company during the period between February 17, 1998 through
February 6, 2001, generally alleges that each of the Company, KPMG, and the
individual defendants violated Section 10(b) of the 34 Act and Securities
and Exchange Commission Rule 10b-5 thereunder.  The individual defendants
are also allegedly liable as "controlling persons" of the Company pursuant
to Section 20(a) of the 34 Act.

Plaintiffs claim that the defendants participated in a fraudulent scheme
that operated as a fraud and deceit on purchasers of the Company's common
stock by disseminating materially false and misleading statements and/or
concealing material adverse facts relating to the
Company's Mexican operations and other matters relating to the Company's
accounting practices and financial condition.

The plaintiffs further allege that this scheme deceived the investing public
regarding the true state of the Company's financial condition and caused the
plaintiffs and other members of the alleged class to purchase the Company's
common stock and bonds at artificially inflated prices.

On May 6, 2002, the Company and the individual defendants filed a motion to
dismiss the second consolidated amended complaint.  KPMG filed a separate
motion to dismiss.  The individual defendants and the Company deny any
wrongdoing and intend to vigorously defend the action.  Based on the stage
of the litigation, it is not possible to estimate the amount of loss or
range of possible loss that might result from an adverse judgment or a
settlement of this matter.

                       New Securities Fraud Cases

ALLIED CAPITAL: Marc Henzel Commences Securities Fraud Suit in S.D. NY
----------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court, Southern District of New York on behalf of
purchasers of the securities of Allied Capital Corporation (NYSE: ALD)
between November 14, 2001 and May 16, 2002, inclusive.  The action is
pending against the Company and:

     (1) William L. Walton and

     (2) Penni F. Roll

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 14, 2001 and May 16, 2002, thereby artificially inflating the price
of Company securities.

Throughout the class period, as alleged in the suit, defendants issued
numerous statements and filed quarterly and annual reports with the SEC,
which described the Company's investments and their valuations.  The suit
alleges that these statements were materially false and misleading because
they failed to disclose and/or misrepresented these adverse facts, among
others:

     (i) that the Company was overstating the value of its investments
         in companies such as Velocita, Inc. and The Loewen Group,
         Inc.;

    (ii) that the Company was improperly delaying the write-down of its
         impaired investments; and

   (iii) that as a result, the value of the Company's private finance
         portfolio and total assets was materially overstated at all
         relevant times.

On May 16, 2002, the last day of the class period, when concerns were raised
by a money manager about the Company's long-term prospects and its
accounting practices and management, shares of the Company fell $2.79 per
share, or approximately 10%, to close at $23.20 per share, after reaching an
intra-day low of $20 per share, on volume of more than 14 million shares
traded.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


AMDOCS LTD.: Marc Henzel Commences Securities Fraud Suit in E.D. MO
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court, Eastern District of Missouri, on behalf of
purchasers of the securities of Amdocs Limited (NYSE: DOX) between July 24,
2001 and June 20, 2002, inclusive.  The suit names as defendants the Company
and:

     (1) Bruce K. Anderson,

     (2) Robert A. Minucci,

     (3) Avinoam Naor, and

     (4) Dov Baharav

The suit alleges that defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market between July
24, 2001 and June 20, 2002, thereby artificially inflating the price of
Company securities.

As alleged in the complaint, these statements were materially false and
misleading because they failed to disclose, among other things, that the
Company's business and operations were being negatively affected by a host
of adverse factors, including, but not limited to, the following:

     (i) that the Company was experiencing declining sales as its
         business began to be affected by adverse market forces.
         Throughout the class period, defendants repeatedly emphasized
         that the Company was not being affected by the slowdown in the
         communications industry when, in fact, that was not true;

    (ii) throughout the class period, the Company artificially inflated
         its financial statements by maintaining inadequate reserves
         for doubtful accounts and failing to disclose that the
         Company's revenue growth improperly included revenues from a
         recent acquisition; and

   (iii) defendants lacked a reasonable basis upon which to publish
         and/or affirm the revenue guidance they provided to analysts
         and investors.

On June 4, 2002, the last day of the class period, defendants shocked the
market when they finally revealed that the revenue for the third quarter and
year end 2002 would be significantly lower than investors had been led to
believe.  The Company announced that pro forma earnings per share for the
third quarter of 2002 would likely be only $0.20, a far cry from the
previous guidance of $0.33.  The Company also announced a massive lay-off
and the resignation of the Company's Chief Executive Officer.

As a result of the news, the stock plunged over 40% in one day on unusually
large trading volumes.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


AQUILA INC.: Marc Henzel Commences Securities Fraud Suit in W.D. MO
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court, Western District of Missouri on behalf of all
persons who purchased or acquired Aquila, Inc. (NYSE: ILA) securities
between April 25, 2001 and December 3, 2001.

The complaint charges the Company, certain of its officers and directors,
and UtiliCorp United Inc., the Company's controlling shareholder, with
making material misstatements and omissions concerning the Company's planned
formation of an Audit Committee consisting of independent directors to
monitor transactions between UtiliCorp and Aquila.

Defendants' failure to timely appoint an independent Audit Committee
ultimately permitted UtiliCorp to commence a tender offer pursuant to which
it bought back all of the outstanding Company Class A common stock at a
non-negotiated and less than optimum price per share.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


CIRCUIT CITY: Marc Henzel Commences Securities Fraud Suit in E.D. VA
--------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court, Eastern District of Virginia on behalf of
purchasers of the securities of Circuit City Stores, Inc. (NYSE: CC) between
December 6, 2001 and February 22, 2002, inclusive.
The action is pending against the Company and Alan W. McCollough.

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
December 6, 2001 and February 22, 2002, thereby artificially inflating the
price of Company securities.

The complaint alleges that defendants issued materially false and misleading
statements during the class period which failed to disclose, among other
things, that the Company was facing significant inventory shortages and was
experiencing problems with its internal controls which would result in the
Company having to incur additional expenses associated with the termination
of leases and with the remodeling of almost half of its retail stores.

When defendants belatedly disclosed these problems on February 22, 2002, the
last day of the class period, the price of Company stock plummeted over 33%
to close at $16.08 per share.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


CORPPRO COMPANIES: Marc Henzel Commences Securities Suit in E.D. OH
-------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court for the Eastern District of Ohio against
Corrpro Companies, Inc. (AMEX: CO) and certain of its officers and
directors.  The case was filed on behalf of all persons who purchased the
Company's common stock during the period April 1, 2000 through March 20,
2002 inclusive.

The suti 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 materially false and misleading statements concerning
the Company's financial results that had the effect of artificially
inflating the price of the Company's common stock during the class period.

Specifically, on March 20, 2002, the Company announced that it had
discovered accounting irregularities causing the Company's consolidated
operating income before taxes through December 31, 2001 to be inflated by
between $4.5 and $5.3 million.  In addition, the Company announced that as a
result of these "irregularities," it is expected to have to take a charge to
pre-tax earnings in the Company's fiscal fourth quarter ending March 31,
2002 of between $5.3 and $6.7 million.

The irregularities are alleged to have occurred at the Company's Australian
subsidiary and appear to date back to at least calendar year 2000.  The
Company "expects" that it will have to restate its audited financial
statements for the March 31, 2001 fiscal year as well as unaudited financial
results for the first nine months through December 31, 2001 of its fiscal
year ending March 31, 2002.

The Company also admitted that, due to the irregularities and likely
restatement, it will be in default under the financial covenants of its
senior secured credit agreement and its senior note facility. Upon default,
the Company's lenders may accelerate repayment of principal which could have
a material adverse impact on the Company's liquidity, its financial position
and/or its ability to operate as a going concern.

The Company also announced that it had replaced its CFO, the fourth CFO the
Company had employed in the past three years.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


MERCK & 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
shareholders who purchased stock in Merck & Co., Inc. (NYSE: MRK) and
several top officers today, claiming the company improperly inflated
revenues by billions of dollars.  The suit seeks damages for violations of
federal securities laws on behalf of all investors who bought the Company's
common stock from July 1, 1999 through June 21, 2002.

According to the complaint, Merck overstated revenues by billions of dollars
from its subsidiary Merck-Medco Managed Care, LLC by including consumer
co-payments for prescription drugs in its revenues.  During the class
period, Merk-Medco's revenues made up over 50% of Merck's total revenues.

The lawsuit claims that the Company violated Generally Accepted Accounting
Practices because neither company bills for the co-payments, gets billed for
them, or otherwise comes into contact with co-payment money.  Patients make
co-payments directly to pharmacies when they purchase medicine.

On June 21, 2002, The Wall Street Journal reported on the Company's
accounting practices and estimated that the Company and Merck-Medco may have
pumped up their 2001 revenues by as much as $4.6 billion.  Similar
overstatements may have occurred for 1999 and 2000, the complaint says. That
same day, according to the complaint, a Company spokesman admitted that the
company had been recording prescription drug co-payments as revenue since it
acquired Merk-Medco in 1993.

In the wake of these revelations, Company stock immediately dropped 4.25%
from its closing price of $52.20 on June 20, 2002 to a closing price of
$49.98 on June 21, 2002, its lowest closing price since late 1997.

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 visit the firm's Website:
http://members.aol.com/mhenzel182


MIRANT CORPORATION: Marc Henzel Commences Securities Suit in N.D. CA
--------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court for the Northern District of Georgia, Atlanta
Division, on behalf of purchasers of the securities of Mirant Corporation,
(NYSE: MIR) between January 19, 2001 and May 6, 2002, inclusive.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and SEC Rule 10b-5, by issuing a series
of materially false and misleading statements between January 19, 2001 and
May 6, 2002.

The complaint charges that the Company reaped illegal profits in California
by artificially manipulating energy prices through a variety of improper
tactics that resulted in investigations by both the Attorney General of the
State of California, and the Federal Energy Regulatory Commission, as well
as a number of private lawsuits.

During the class period, while the Company announced quarter-after-quarter
of outstanding growth, and assured investors that problems in the California
market had been properly accounted for, the Company, in fact, failed to:

     (1) provide for the return of illegally obtained revenue, through
         a charge to earnings;

     (2) provide for professional fees associated with the
         investigations arising from the fraud through a charge to
         earnings; and

     (3) disclose the fact that the illegally obtained revenue was
         subject to forfeiture and that investigations surrounding the
         illegally obtained revenue would result in the expenditure of
         material amounts for legal and professional fees.

As a result, defendants' class period financial statements were materially
overstated, and failed to comply with Generally Accepted Accounting
Principles (GAAP).

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 visit the firm's Website:
http://members.aol.com/mhenzel182


NTL INC.: Marc Henzel Commences Securities Fraud Suit in S.D. New York
----------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action in the
United States District Court, Southern District of New York on behalf of
purchasers of the securities of NTL, Inc. (NYSE: NLI) between August 9, 2000
and November 29, 2001, inclusive.  The action is pending against the Company
and:

     (1) George S. Blumenthal,

     (2) J. Barclay Knapp,

     (3) Steven Carter and

     (4) John F. Gregg

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 August
9, 2000 and November 29, 2002, thereby artificially inflating the price of
Company securities.

The complaint alleges that, throughout the class period, defendants issued a
series of materially false and misleading statements which failed to
disclose, among other things:

     (i) that the Company was unable to effectively integrate its
         acquisitions and, as a result was experiencing substantial
         difficulties in operating its business;

    (ii) that the Company was not fully funded until 2003, and as a
         result of its massive debt burden would necessarily have to
         restructure its debt;

   (iii) that the Company was underreporting churn rates by failing to
         report terminations and by continuing to bill customers for
         accounts which they had terminated, thereby creating the false
         impression that the Company was retaining customers longer and
         that migrations were decreasing; and

    (iv) that the Company was improperly delaying the writedown of
         billions of dollars of impaired assets, thereby artificially
         inflating the Company's operating results.

Indeed, after the end of the class period, the Company announced that it
would write off over $11 billion of goodwill and other asset impairments
prior to reporting fourth quarter financial results, which would result in
an astounding loss per share for the fourth quarter 2001 of $46.46 per
share.

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 visit the firm's Website:
http://members.aol.com/mhenzel182

                              *********

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
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Information contained herein is obtained from sources believed to be
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