/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/020805.mbx C L A S S A C T I O N R E P O R T E R Monday, August 5, 2002, Vol. 4, No. 153 Headlines APARTHEID LITIGATION: Tutu Says Banks Should Pay For Apartheid Support APARTHEID LITIGATIONS: South African Group To Include Shell in Lawsuit CHARTER COMMUNICATIONS: Mounting Vigorous Defense V. Securities Suit ENTERTAINMENT INDUSTRY: Actors, Writers To Fight Hollywood's Age Bias FLORIDA: Judge Allows FL Suit Over Blacks' Voting Rights To Proceed GREENLEE TEXTRON: Recalls Electrical Testing Meters For Shock Hazard MBA POLYMERS: Injury Suit Settlement Stalled as 36T Claims Pour In NEW MEXICO: Inmates File Suit V. Luna Jail Over Book-Banning Policy PEMSTAR INC.: Will Vigorously Defend V. Securities Suit in Minnesota PENNSYLVANIA: Ruling Creating Bucks County Oversight Board Upheld RAFFLES TOWN: Closing Arguments Submitted In Breach of Contract Suit SOURCE MEDIA: Fairness Hearing For Suit Settlement Set For October 2002 UNITED KINGDOM: Liability Insurers Told Faulty Products Suits On Rise UNITED STATES: Americans Used As Bait To Get Public Support For WWII US NAVY: Rep. Jones To Investigate Bias Assertions V. Chaplain Corps New Securities Fraud Cases 26% GOALS: Kirby McInerney Commences Securities Fraud Suit in S.D. NY CAPITAL ONE: Wolf Haldenstein Commences Securities Suit in E.D. VA CHARTER COMMUNICATIONS: Charles Piven Commences Securities Suit in CA CITIGROUP INC.: Kaplan Fox Commences Securities Fraud Suit in S.D. NY CITIGROUP INC.: Stull Stull Commences Securities Fraud Suit in S.D. NY CRYOLIFE INC.: Rabin & Peckel Commences Securities Fraud Suit in GA ECLIPSYS CORPORATION: Cauley Geller Launches Securities Suit in S.D. FL ECLIPSYS CORPORATION: Schiffrin & Barroway Files Securities Suit in FL EL PASO: Cauley Geller Commences Securities Fraud Suit in S.D. Texas EMPYREAN BIOSCIENCE: Rosen Law Commences Securities Suit in N.D. OH ICN PHARMACEUTICALS: Kirby McInerney Launches Securities Suit in NY NICOR INC.: Charles Piven Commences Securities Fraud Suit in N.D. IL PEMSTAR INC.: Mark McNair Commences Securities Fraud Suit in Minnesota PERKINELMER INC.: Mark McNair Launches Securities Suit in Massachusetts SONUS NETWORKS: Wechsler Harwood Commences Securities Suit in MA Court TELLABS INC.: Much Shelist Commences Securities Fraud Suit in N.D. IL UNIROYAL TECHNOLOGIES: Bernstein Liebhard Files Securities Suit in FL VIVENDI UNIVERSAL: Mark McNair Commences Securities Suit in S.D. NY VIVENDI UNIVERSAL: Charles Piven Commences Securities Suit in S.D. NY XCEL ENERGY: Milberg Weiss Commences Securities Fraud Suit in MN Court ********* APARTHEID LITIGATION: Tutu Says Banks Should Pay For Apartheid Support ---------------------------------------------------------------------- Swiss banks should pay compensation to the victims of South Africa's apartheid regime, Nobel Peace Prize laureate Bishop Desmond Tutu said, the Associated Press Newswires report. "They should pay. They can afford it. And they should pay it with dignity," Bishop Tutu said, to the weekly newsmagazine Facts, in a recent interview. His comments followed the filing of a class action in the United States on behalf of apartheid victims and seeking billions of dollars in damages from corporations and banks, including the two foremost Swiss banks, UBS and Credit Suisse. The banks are charged with hiding behind Swiss neutrality and undermining a UN embargo between 1985 and 1993, by helping the white- dominated regime of South Africa with loans and other business deals worth billions of dollars, as foreign capital fled the country. The lawsuit was filed by a group of lawyers in US District Court in Manhattan, seeking to follow a precedent established in litigation on behalf of Holocaust victims or their survivors, who gained a US$1.25 billion settlement from Swiss banks and corporations. The lawyers are hoping that hundreds of thousands of South Africans will join the lawsuit. Bishop Tutu, the former archbishop of Capetown, who headed South Africa's Truth and Reconciliation Commission following the end of apartheid, said demands that foreign companies stop dealing with the apartheid company fell on deaf ears. Bishop Tutu said that the banks were asked to give no more credit to the apartheid regime, but they said "business is business; don't talk to us about morality." Archbishop Tutu says, "They would have done business with the devil." Apartheid was an oppressive web of laws starting in 1948 that classified all South Africans by race and stripped even the most basic right from those who were not white. As efforts to overthrow the white regime grew, the government authorities began jailing opponents, killing others without benefit of a trial and chasing still others from their homes. The regime ended in 1994 with the election of Nelson Mandela as president in the nation's first all-race elections. The South African government has distanced itself from this class action for apartheid reparations. While Citigroup, the largest financial institution in the United States, says there are no grounds for the class action, Bishop Tutu says that compensation is the least that firms that supported the apartheid government can do. "All corporations that did business with the apartheid regime should know that they are in the line of fire," he added. APARTHEID LITIGATIONS: South African Group To Include Shell in Lawsuit ---------------------------------------------------------------------- The Apartheid Claims Taskforce, a South African task force seeking billions of dollars from foreign companies alleged to have bolstered white apartheid rule, intends to add Royal Dutch Shell to a planned lawsuit, Reuters reports. Taskforce spokesman John Ngcebetsha told Reuters that lawyers would cite oil giant Shell (RD)(SHEL), alleged to have helped white-ruled South Africa circumvent an anti-apartheid oil embargo, next. "We have filed against seven companies and corporations so far and, in the next few weeks, probably before August 9, we will file against another two or three companies including Royal Dutch Shell," Ngcebetsha said. The first apartheid suit, filed by prominent US attorney Ed Fagan is set to go to court in August 9. Mr. Fagan will ask the court to create an order preserving evidence in corporate files of complicity in the racist system. Mr. Ngcebetsha told Reuters lawyers, churches and civic groups met in Johannesburg on Thursday to assess progress in their class action suit on behalf of millions of blacks. "It was resolved that claims against banks, companies and corporations that profiteered from apartheid should go ahead in a more united way in the future," he said. Mr. Fagan told Reuters in July that the case could involve dozens of companies that continued to invest in South African during apartheid, defying international sanctions. He said the process could win reparations of up to $100 billion for the black victims. U.S. lawyer Michael Hausfeld, who has worked with Fagan on some cases and has a similar track record of class actions on behalf of victims of war and racism, arrived in South Africa on Wednesday to explore a similar action, Reuters reports. "What is probably one of the grossest violations of human rights was imposed by apartheid. It left a wake of victims that have never been accounted to by those who assisted and furthered the commission of the crime," he told Reuters. CHARTER COMMUNICATIONS: Mounting Vigorous Defense V. Securities Suit -------------------------------------------------------------------- Charter Communications, Inc. (Nasdaq:CHTR) faces a securities class action in the United States District Court for the Central District of California on behalf of all persons who purchased the Company's securities. (Nasdaq:CHTR) between November 9, 1999 and July 17, 2002, inclusive. The suit charges the Company and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of the Company's revenue and earnings caused Company stock price to become artificially inflated, inflicting damages on investors. David Andersen, Charter Senior Vice President of Communications, said in a statement, "Our financial statements comply with generally accepted accounting principles, in all material respects, and they, and the related SEC filings, provide an accurate picture of the Company, its financial condition, results of operations, and the assumptions underlying them. KPMG was retained as our new outside independent auditors on April 22, 2002." He added, "They have issued a review report that will be included with our second quarter 10-Q filing with the SEC. In this report, KPMG has indicated that they are not aware of any material modifications that should be made to the financial statements they have reviewed in order for our financial statements to be in conformity with generally accepted accounting principles." He further said, "We intend to vigorously defend ourselves against this action, and believe that our financial reports and disclosures will be validated." ENTERTAINMENT INDUSTRY: Actors, Writers To Fight Hollywood's Age Bias --------------------------------------------------------------------- When it came time to hire a crew for his new film, "4 Faces," veteran character actor Peter Mark Richman favored experience over youth, according to the Associated Press Newswires. The 75-year-old actor hired the camera operator who worked on the 1980 film, "Somewhere In Time," and the script supervisor for the classic film, "Easy Rider." "These people are 75 or 80 years old, with resumes going back 50 years, who really can't get jobs," said Mr. Richman. "There are so many vital people, so many gems of experience, who are lost doing other things, because they are rejected in this profession." Mr. Richman is one of several entertainment industry professionals, who are forming a group to lobby producers and networks for more roles for older actors and to support similar legislative efforts, as well. The group, called the Industry Coalition for Age Equity in the Media, has the backing of the Screen Actors Guild, The American Federation of Television and Radio Artists and the California Commission on Aging. Therefore, it has all the credentials for effective lobbying, and even for sponsorship of class actions. As an initial activity, the coalition is supporting legislation pending in the California's state legislature that would, among other things, launch a media campaign to change cultural perceptions of the aging. There is another model out there for the coalition to consider, since charges of age discrimination in Hollywood have been brewing for some time. In February, more than 150 television writers filed 23 separate class actions in Los Angeles Superior Court against the major television networks, movie studios and talent agencies. The writers claim the defendants engaged in a pattern of refusing to hire or represent them because of their age. FLORIDA: Judge Allows FL Suit Over Blacks' Voting Rights To Proceed ------------------------------------------------------------------- Federal Judge Alan Gold ruled in favor of the National Association for Advancement of Colored People (NAACP) and other civil liberties groups in a class action relating to presidential election problems that kept African-Americans from voting in Florida, the Associated Press reports. Judge Gold rejected the state's motion for summary judgment and allowed the suit to proceed, saying that the plaintiffs have met the standard for pursuing their lawsuit. Trial is set to commence on August 26, in what will be the first major test of Florida's revised election system. According to the Associated Press, two counties, Duval and Volusa, are pursuing settlement agreements rather than pursuing a trial. Only three of Florida's largest counties - Miami-Dade, Hillsborough and Orange - are named as defendants along with state agencies. NAACP attorney Thomasina Williams told AP she hoped Judge Gold's order would persuade others to settle. "Unfortunately, there seem to be some defendants who are pretty recalcitrant.There's definitely going to be a trial." The state Division of Elections referred a call for comment to its attorneys, and calls to them were not immediately returned, AP reports. "I know what kind of election we conducted," Hillsborough County Election Supervisor Pam Iorio, told AP. "To have us targeted as a county that denied individuals voting rights is wrong." Orange County Elections Supervisor Bill Cowles, said, "At this point, we are still preparing to go forth and defend our stance." Susan Torres, an attorney for Miami-Dade, said the county is still negotiating with the civil rights groups but is prepared to go to trial. The judge's ruling allows all blacks who claim they were improperly kept from voting in the presidential race decided by the US Supreme Court to participate in the suit. The class has been split into three main groups: (1) People turned away from the polls, (2) Those dropped from voter rolls after they were wrongly identified as convicted felons, and (3) those whose registration was not properly processed GREENLEE TEXTRON: Recalls Electrical Testing Meters For Shock Hazard -------------------------------------------------------------------- Greenlee Textron, Inc. is cooperating with the US Consumer Product Safety Commission (CPSC) by voluntarily recalling about 650 electrical testing meters. The meters are used to measure voltage and current of electric-powered equipment. An incompatible grommet, located in the battery compartment to protect internal wires, can cause the meter to provide inaccurate voltage and current readings. A meter that inaccurately indicates zero voltage or current creates the potential for electric shock or an electrocution hazard from the equipment being tested. The Company has not received any reports of injuries or property damage. This recall is being conducted to prevent the possibility of injuries. This recall involves certain CM-700 and CM-750 electrical meters. The 8-inch meters are dark green with bright yellow features. The model number and the words "Greenlee Test Instruments" are printed across the front of the meter. A silver plate on the back of the meter displays the serial number (S/N). Serial numbers included in the recall range from 0203540001 through 0203540650. The electrical meters were made in Taiwan. Home Depot (model CM-750 only) and electrical supply stores sold the meters nationwide during April 2002. The CM-700 model sold for about $100, and the CM-750 for about $140. For more details, contact the Company by Phone: 800-435-0786 between 8 am to 5 pm CT Monday through Friday or visit the firm's Website: http://www.greenlee.textron.com MBA POLYMERS: Injury Suit Settlement Stalled as 36T Claims Pour In ------------------------------------------------------------------- Plaintiffs in the class action against plastic recycler MBA Polymers will not receive their portions of the $8 million suit settlement until fall, as the Company recently received more than 36,000 claims, the Contra Costa Times reports. The suit was commenced after the Company's West Ohio Avenue warehouse caught fire on October 26,2000. The surrounding neighborhood was shrouded in toxic smoke due to the accident. The smoke from the fire killed one worker, sent 200 people to the hospital, shut down 12 schools and forced people in neighborhoods surrounding the plant to stay inside for hours. The accident caused several suits to be filed against the Company, claiming it failed to filter from the warehouse combustible toner dust from spent printer cartridges, the accumulation of which led to an explosion, the Contra Costa Times reports. In June, a Contra Costa Superior Court judge approved the settlement, and the deadline to file claims was set on July 18,2002. Company attorney Richard Franco however told the Contra Costa Times that investigation and verification of the 36,541 claims probably won't end until October. ""It just takes time to sift through," he said after a Contra Costa Superior Court hearing to discuss details of the settlement's disbursement. "You can't just devise a claims form that's perfect." The claims process has proved long and confusing for others who sued. Solano County resident Bridget Phillips was worried after telephone numbers she used to check on her claim were recently disconnected, the Contra Costa Times reports. "I was just concerned that they might be scamming people," said Ms. Phillips, who was forced to shelter at a relative's Richmond home during the toxic release. NEW MEXICO: Inmates File Suit V. Luna Jail Over Book-Banning Policy ------------------------------------------------------------------- Las Cruces Deming lawyers have filed a lawsuit seeking class action status, on behalf of Luna Jail detainees, asking the state District Court to overturn what they say is a Luna County Detention Center policy denying inmates all literature except religious material, a policy which the lawsuit claims violates the ban against government establishment of religion, the Albuquerque Journal reports. The lawsuit filed by Deming attorneys Jeffrey Smith and Carlos Ogden described two recent occasions when jail staff blocked delivery of books to an inmate because the material "was not religious in content." The second batch of books rejected by jail officers included The Autobiography of Benjamin Franklin, H.G. Wells' The Invisible Man, John Steinbeck's The Red Pony and A Collection of Great American Short Stories, edited by Wallace Stegner. Mr. Ogden said that Mr. Smith returned to the detention center with the books a second time to make sure he had not misunderstood the stated policy the first time. Mr. Ogden added that several inmates he spoke to recently also understood the policy at the Luna jail is to prohibit all literature except religious material. The lawsuit also alleges, "The plaintiffs are equally restricted from reading Shakespeare as they would be properly forbidden to possess (and read) manuals of how to escape from jail." Detention Center Director Ed Gilmore said he prohibits certain kinds of materials, such as pornography, violent literature and hardcover books, which he said could be turned into a weapon. Luna County Manager Scott Vinson has suggested that there may have been a misunderstanding about the policy. "Our policy is that everything that comes in has to be checked by jail staff. So you can bring in reading material, but it has to be checked for contraband. They (the inmates) are not going to get it immediately," Mr. Vinson said. He added that Mr. Smith might have dealt with an overzealous guard. PEMSTAR INC.: Will Vigorously Defend V. Securities Suit in Minnesota -------------------------------------------------------------------- Pemstar Incorporated announced it will vigorously fight the shareholder lawsuit filed on July 24, 2002, the day the Company reported a first quarter loss of $(0.54) per share. The suit was filed on behalf of shareholders who acquired the Company's (Nasdaq:PMTR) securities between June 8, 2001 and May 3, 2002, inclusive, in the United States District Court for the District of Minnesota, against the Company and certain of its officers and directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. PENNSYLVANIA: Ruling Creating Bucks County Oversight Board Upheld ----------------------------------------------------------------- US Judge Clifford Scott Green has upheld the recent ruling issued by US Magistrate Diane Devlin Welsh, which would establish a Bucks County Oversight Prison Board, and Judge Green dismissed the Bucks County commissioners' appeal of Magistrate Welsh's federal court order that forces the commissioners to impanel a new prison oversight board that includes citizen participation. Judge Green said he found no reason to overturn Magistrate Welsh's ruling directing the commissioners to establish an oversight board, which would be composed of several elected and appointed county officials as well as three members of the public. Under the order, the commissioners have until August 9 to establish the board and hold its first meeting. The commissioners had appealed Justice Welsh's order on July 19, claiming state law gives them no authority to establish the board. They argued that under the prevailing law, the county commissioners have the responsibility for running the jail. Attorneys for the female inmates have maintained that the commissioners had agreed to permit the Magistrate to mediate the settlement of their class action and that they are therefore obliged to accept her ruling. Anita F. Alberts, one of the attorneys representing the female inmates, said that she hopes Judge Green's order sends a message to the commisioners that it is time to impanel the oversight board. "I think they'll do anything to avoid citizen involvement," said Ms. Alberts. "They don't want to be bothered, but citizen involvement is pretty important." Under Ms. Welsh's order, the three citizen members are to be selected by October. In the past two years, the Bucks County Prison has been at the center of several scandals and criminal probes. Investigating agencies uncovered a drug ring operating inside the jail, among other criminal activities. Also, four prison employees were convicted of sexual assaults on female inmates. RAFFLES TOWN: Closing Arguments Submitted In Breach of Contract Suit -------------------------------------------------------------------- The defense in the Raffles Town Club (RTC) class action recently made its closing submissions on the case, maintaining its stance that the statements in the club's brochures were not actionable in law and were not part of the membership contract, the Business Times (Singapore) reported. RTC's lawyers also questioned what the plaintiffs could possibly get from the club if they were to succeed in their class action. In their submissions, the defense said that if the court ruled in favor of the plaintiffs, a liquidator would have to be appointed to RTC, and the remaining 14,000 members of the club would stand to lose everything, while those members who sued would be able to get back only a fraction of the sum that would be paid out. "The plaintiffs are well aware that if they are successful, the eventual outcome of this litigation would be that RTC would be declared bankrupt," the submissions read. The defense also said that RTC, which has cash of just $13.6 million currently, now depends on the membership dues and support of its present shareholders, who had nothing to do with the club's membership drive in 1996. The 4,895 plaintiffs are seeking damages of some $137 million in refunded membership fees of $28,000 each and other remedies, alleging that they were misled into joining the club in November 1996, on the faith of statements made in RTC's invitation brochure, which said the club would be "limited and exclusive." They found out only in early 2001, during a legal battle between RTC's former shareholders, that the club had taken in 19,000 members in late 1996 -- a fact which shocked them, as they had the impression there were only 6,000 to 7,000 members. Defense counsel K Shanmugam also said during the closing submissions that the defense had shown, from business records of RTC, that the club's food and beverage outlets and other facilities have been under- utilized for most of the days since RTC's opening. He also said the plaintiffs have not managed to establish that the club's facilities were unable to cope with the demands of its membership. SOURCE MEDIA: Fairness Hearing For Suit Settlement Set For October 2002 ----------------------------------------------------------------------- A fairness hearing on the settlement proposed in the class action filed against Source Media, Inc. in the United States District Court for the Northern District of Texas has been set for October 11,2002. The suit alleges federal securities violations on behalf of all persons who purchased or otherwise acquired the Company's securities from January 20,1998 through August 14,1998, inclusive. The hearing will be held for the purpose of determining: (1) whether proposed settlements in the Litigation for a total of $3,550,000 in cash, in addition to the assignment of certain rights, should be approved by the Court as fair, reasonable and adequate; (2) whether the Litigation should be dismissed on the merits and with prejudice pursuant to the terms of the Stipulation; (3) whether the Texas Guaranty Stipulation should be approved; (4) whether the proposed Plan of Allocation should be approved as fair and reasonable; (5) whether Co-Lead Counsel's application for fees and expenses (including an award of reasonable costs and expenses (including lost wages) directly relating to the representation of the Settlement Class to any Representative Plaintiffs serving on behalf of the Settlement Class) and interest thereon should be approved; and (6) whether the releases provided for in the Stipulation should be approved as fair, reasonable and adequate to the Members of the Settlement Class. UNITED KINGDOM: Liability Insurers Told Faulty Products Suits On Rise --------------------------------------------------------------------- Liability insurers have been warned to expect further class actions in the future against alleged faulty products, despite the failure of a group of women in the High Court this week in their action against manufacturers of a contraceptive pill, according to a recent report by the Post Magazine. The action was brought under the terms of the Consumer Protection Act by solicitors Leigh Day & Co. on behalf of over 100 women against pill manufacturers Schering Health Care, Wyeth and Organon Laboratories, alleging their third generation pills caused potentially lethal blood clots. Mr. Justice Mackay halted proceedings 13 weeks into a trial scheduled to last 21 weeks, ruling that the third generation pill posed no increased risk of clots. He based his ruling on evidence from 10 epidemiological experts. Wendy Hopkins, litigation partner at Beachcroft Wansbroughs, the firm acting for defendant Organon, said this was only the second time a claim of such magnitude against a manufacturer has been brought to trial. Ms. Hopkins warned that with the advent of after-the-event insurance, such actions against manufacturers are bound to become more common. UNITED STATES: Americans Used As Bait To Get Public Support For WWII ----------------------------------------------------------------- President Franklin Delano Roosevelt deliberately stranded 7,000 American civilians in the Philippines and other United States territories, using them as "bait" to gain public support for an American declaration of war on Japan in the name of self-defense. In this case, it required an invasion of American territory by the Japanese and their firing of the first shot, which for the American government was an essential condition precedent to securing the full support of an American public that did not want American boys to fight in foreign wars. Because of the pact the Japanese had with the Axis powers, war with Japan assured FDR of war with Hitler and that we would come to the aid of Great Britain struggling in a war that FDR believed it was essential that the United States and Great Britain must win for the good of the world. The federal class action was filed Monday in the US Court of Federal Claims. Lead counsel is law Professor Anthony D'Amato of Northwestern University, and Marcia Fee Achenbach is lead plaintiff. She was born in the Philippines of American parents, and was a teenager when the Japanese marched into the Philippines. She suffered the injuries and starvation endured by other prisoners and still experiences depression and anxiety. Tuberculosis scarred her lungs. The suit was filed on behalf of all civilian US citizens who were imprisoned by the Japanese in the Philippines, from December 7, 1942 to September 2, 1945, or their legal representatives, if they are deceased. Basing his case on official documents dating to the period, Professor D'Amato alleges that FDR calculated that Japanese forces, thwarted in their northern expansion by the German-Soviet pact, would move southward to obtain oil and would strike at US controlled oil fields in southeast Asia, including the Philippines. Civilians were to be retained on US islands of Wake, Guam, Midway and the Philippines in order to strengthen and justify the US response of self-defense to the firing of the first shot by the Japanese. FDR knew this was the only way to obtain the support of the American public to US entry into a foreign war. FDR was convinced US entry into World War II was necessary in order to assure the defeat of Hitler. Since Japan at this time had become an official ally of the Axis Powers, US entry into the European War was assured, once the United States was at war with Japan. The six-year Statute of Limitations that applies for actions against the United States is an affirmative defense available to the United States, and could be a formidable obstacle. However, the plaintiffs' attorneys argue that this period should be tolled by reason of the secrecy in which the United States has kept its decision to subject the plaintiffs to attack. The evidence for the development of the strategy to deliberately retain the 7,000 American civilians in the Philippines and encourage the southward expansion of the Japanese, resides in transcripts of telephone conversations between FDR and Churchill. The American documents are kept under seal, and the British say they cannot locate their transcripts. All material available for this period for the use of historians and other researchers have been redacted of all references to American civilians in the Philippines, according to allegations of the lawsuit, Achenbach v. United States. The lawsuit contends that if the historians and researchers did not know that these strategies of, in effect, using the 7,000 for "bait," were shaped and then implemented, how could people like plaintiffs follow the barely visible trail of information. Plaintiffs believe that the defendants should be equitably estopped from asserting the bar of the statute of limitations as a defense. US NAVY: Rep. Jones To Investigate Bias Assertions V. Chaplain Corps -------------------------------------------------------------------- US Representative Walter B. Jones promised to investigate unfair treatement within the Navy Chaplain Corps, as four current and one former navy chaplain awaits the Fifth District Court in Washington DC to rule on class action status for their suit, JDNews.com reports. The suit reveals numerous alleged cases of racial, sexual and religious discrimination within the Navy Chaplain Corps, primarily between two groups of protestant religious leaders. The suit primarily alleges censorship of freedom of speech and practice in religious services, some based on theological differences between some members of more traditional protestants known as liturgical and a less-traditional group known as non-liturgical. Rep. Jones assured the group he would look into the matter, which has led to litigation, JDNEws.com reports. "I intend to ask the Navy to give me a briefing on the court action status, and I will do everything that I can to protect those who feel persecuted," he said. "This has the potential to go to 600 litigants by this fall," said former Navy chaplain Phil Veitch of Jacksonville. He added that the structure of the Chaplain Corps is not representative of the congregations that they serve, and some are manipulating which faiths enter the Navy, which are promoted and which are transferred to more influential duty stations. The group said that only a select few of the liturgical leaders who are in power use it to perpetuate discrimination against some members of the non-liturgical group. "The way to end this is not a buy-off, but to make changes," Lt. Cmdr. Dave Wilder, a chaplain at Camp Lejeune, told JDNews.com. "It's about ministry to the troops." New Securities Fraud Cases 26% GOALS: Kirby McInerney Commences Securities Fraud Suit in S.D. NY --------------------------------------------------------------------- Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of the 26% GOALs due September 12, 2002 (Amex: NYJ.A) during the period from March 6, 2001 through September 26, 2001. The complaint asserts claims for violation of Section 10(b) of the Securities and Exchange Act of 1934 against: (1) Anthony R. Muller, (2) Dan E. Pettit, (3) Charles J. Abbe, (4) Zita M. Cobb, (5) Joseph Ip, (6) Frederick Leonberger, (7) Michael C. Phillips, (8) Donald R. Scifres, (9) Jozef Straus, (10) Kevin Kalkhoven, (11) the Furukawa Electric Co., Ltd. and (12) JDS Uniphase Corporation The alleged violations, according to the complaint, stem from materially false and misleading statements issued by the defendants during the class period that: (i) misrepresented the Company's assets and financial performance; and (ii) caused the 26% GOALs to trade at artificially-inflated prices. After July 26, 2001, when JDS Uniphase restated its financial results to write-off billions of dollars of assets, and again in September 2001 when further write-downs were revealed, the 26% GOALS declined in value. The lawsuit seeks to recover losses suffered by purported class members, excluding the defendants and their affiliates. For more details, contact Ira M. Press or Ori Braun by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022 by Phone: 212-317-2300 or Toll Free 888-529-4787 or by E-Mail: obraun@kmslaw.com CAPITAL ONE: Wolf Haldenstein Commences Securities Suit in E.D. VA ------------------------------------------------------------------ Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Eastern District of Virginia, on behalf of purchasers of the securities of Capital One Financial Corporation (NYSE: COF) between January 15, 2002 and July 16, 2002, inclusive, against the Company and certain of its officers and directors. 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. During the class period, the Company announced that each quarter resulted in record revenues and earnings. Additionally, the Company continually reaffirmed to investors that its impressive growth would not outpace its loan reserves and that the Company was well-capitalized and had attained an excellent credit performance in tandem with the 19 successive quarters of record earnings. However, the complaint alleges that these reports were materially false and misleading because the Company omitted that, in breach of guidelines released on January 31, 2001, it had been under-reserving for subprime loans and was undergoing severe infrastructure inadequacies, regarding credit-risk assessment and information system, a result from the augmented growth in its business. On July 16, 2002, the Company announced that it had agreed with regulators to enhance reserves by $247 million in the second quarter of 2002, as well as raise the Company's allowances for bad loans and further internal procedures to handle the sudden arrival of new clients. The price of the Company's common stock plunged following the announcement, declining 39% from a close of $50.60 per share on July 16, 2002, closing at $30.48 per share on July 17, 2002. For more details, contact Fred Taylor Isquith, Gregory M. Nespole, Michael Miske, George Peters or Derek Behnke by Mail: 270 Madison Avenue, New York, New York 10016 by Phone: 800-575-0735 by E-mail: classmember@whafh.com or visit the firm's Website: http://www.whafh.com. All e-mail correspondence should make reference to Capital One. CHARTER COMMUNICATIONS: Charles Piven Commences Securities Suit in CA --------------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who acquired Charter Communications, Inc. (Nasdaq: CHTR) securities between November 9, 1999 and July 17, 2002, inclusive, in the United States District Court for the Central District of California, against the Company and certain of its officers and directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202 by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com CITIGROUP INC.: Kaplan Fox Commences Securities Fraud Suit in S.D. NY --------------------------------------------------------------------- Kaplan Fox & Kilsheimer LLP initiated a securities class action against Citigroup, Inc. and its Chairman and CEO, Sanford I. Weill, (NYSE: C), in the United States District Court for the Southern District of New York. This suit is brought on behalf of all persons or entities who purchased or otherwise acquired the Company's common stock between July 24, 1999 and July 23, 2002, inclusive. The complaint alleges that the defendants violated the federal securities laws. Specifically, the complaint alleges, that during the class period, defendants failed to disclose material facts concerning the Company's relationship with Enron Corp. The Company never disclosed that it was structuring financing deals for Enron so that Enron could falsify its financial statements and defraud its investors. After Enron's collapse, the Company continued to misrepresent its potential Enron-related exposure by failing to disclose the true extent of its potential legal liability arising out of its finance transactions with Enron. As a result of defendants' failure to disclose the true nature of the Company's relationship with Enron, Company stock price was artificially inflated during the class period trading as high as $57. Upon news that the Senate Committee found evidence that the Company was involved in Enron's collapse, the stock fell to $27 on trading of 121 million shares. For more details, contact Kaplan Fox & Kilsheimer LLP by Mail: 805 Third Avenue, 22nd Floor, New York, NY 10022 or by E-mail: mail@kaplanfox.com CITIGROUP INC.: Stull Stull Commences Securities Fraud Suit in S.D. NY ---------------------------------------------------------------------- Stull Stull & Brody LLP initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of persons who purchased or acquired Citigroup Inc. (NYSE:C) securities between July 24, 1999 and July 23, 2002, inclusive against the Company and: (1) Sanford I. Weill, its Chairman and Chief Executive Officer, and (2) Todd Thomson, its Chief Financial Officer The complaint alleges that defendants made misrepresentations and/or omissions of material fact, including failing to disclose that Citigroup misrepresented a 1999 transaction with Enron that was structured as commodity trade but served the same purpose as a loan to help Enron keep $125 million in debt off of its books, affirmatively misrepresenting the Company's potential Enron-related exposure in its 2001 Annual Report and elsewhere, and failing to disclose the true extent of the Company's potential legal liability arising out of its "structured finance" dealings with Enron. The complaint alleges that when Wall Street learned about the foregoing on July 23, 2002 after executives of the Company and J.P. Morgan Chase testified before the U.S. Senate regarding the transactions at issue, Citigroup stock plummeted $5.04 or 15.73% to close at $27.00, less than half its class period high. For more details, contact Tzivia Brody by Mail: 6 East 45th Street, New York NY 10017 by Phone: 1-800-337-4983 by Fax: 212-490-2022 or by E- mail at SSBNY@aol.com CRYOLIFE INC.: Rabin & Peckel Commences Securities Fraud Suit in GA ------------------------------------------------------------------- Rabin & Peckel LLP initiated a securities class action in the United States District Court for the Northern District of Georgia on behalf of all persons or entities who purchased Cryolife, Inc. (NYSE:CRY) between April 2, 2001 and July 5, 2002, both dates inclusive. The suit names as defendants the Company and: (1) Steven G. Anderson, President, CEO, and Chairman, (2) James C. VanderWyck, Vice President, Regulatory Affairs and Quality Assurance, (3) D. Ashley Lee, Vice President and CFO, and (4) Albert E. Heacox, Vice President, Laboratory Operations The defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making material misrepresentations and/or failing to make material disclosures throughout the class period due to their failure to disclose and correct quality control problems in the Company's processing of human tissues and heart valves. As a result, the Company's class period assurances to the investing public that patient safety was of paramount concern to it and that the Company complied with applicable governmental processing and quality regulations were also knowingly false when made. On June 24, 2002, the Company issued a press release stating that it had received its first and only warning letter from the FDA and denying that there was any evidence of fungal infection in the heart valves which had triggered the FDA's second inspection of the Company's facilities in March of 2002. On July 5, 2002, the Company issued a corrective press release announcing that it had received a prior warning letter from the FDA in 1997, and that it had been notified by the CDC that there was evidence of fungal infection in at least one of the heart valves it had supplied. On July 6, 2002, however, the Wall Street Journal Online reported that CDC disagreed with the Company's June 24 and July 5 statements, as a result of a letter the CDC knew the Company had received in March 2002 in which evidence of the fungal infection was discussed. The market's reaction to the Company's corrective disclosures and to the CDC's disclosure was immedoate: the Company's common stock dropped from a high of almost $45 per share during the class period and of $23.66 per share just before the disclosure to as low as $9.90 per share on July 10, 2002. In addition, the complaint alleges that the Company misrepresented its 2001 income and earnings during the class period, in violation of generally accepted accounting principles (GAAP), overstating both income and earnings per share by approximately 20%. The Company admitted that its previously issued financial statements were false in a March 29, 2002 press release, which announced that the Company had restated its reported financial results for 2001. For more details, contact Eric J. Belfi or Sharon Lee by Phone: 800-497-8076 or 212-682-1818 by Fax: 212-682-1892 by E-mail: email@rabinlaw.com or visit the firm's Website: http://www.rabinlaw.com ECLIPSYS CORPORATION: Cauley Geller Launches Securities Suit in S.D. FL ----------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of purchasers of Eclipsys Corporation (Nasdaq: ECLP) publicly traded securities during the period between July 23, 2001 and June 27, 2002, inclusive. 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 23, 2001 and June 27, 2002, thereby artificially inflating the price of Company securities. As alleged in the suit, defendants issued highly positive press releases regarding the Company's addition of new contracts for its information technology, in an effort to create the impression that Company revenues were growing and the Company was well positioned to generate strong profitability. However: (1) during a six-week period in July to August 2001, insiders sold more than $9.5 million worth of Company stock at or near the stock's two year highs; and (2) unbeknownst to the investing public, although the defendants were aware that new-sales bookings had slowed considerably and expenditures in research and development and marketing and distribution had accelerated, the Company failed to timely disclose these facts to the public in any of Company public filings with the Securities and Exchange Commission or press releases. On June 27, 2002, defendants issued a press release announcing that results for the second quarter of 2002 would fall short of the Company's previous statements. The Company announced it would report a net loss in the range of $0.07 to $0.10 per share. Trading price of Company stock dropped nearly 50% in response to this. For more details, contact Jackie Addison, Sue Null or Ellie Baker by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 or by E-mail: info@classlawyer.com ECLIPSYS CORPORATION: Schiffrin & Barroway Files Securities Suit in FL ---------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of all purchasers of the common stock of Eclipsys Corporation (Nasdaq: ECLP) publicly traded securities during the period between July 23, 2001 and June 27, 2002, 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 defendants issued highly positive press releases regarding the Company's addition of new contracts for its information technology, in an effort to create the impression that the Company's revenues were growing and the Company was well positioned to generate strong profitability. However: (1) during a six-week period in July to August 2001, insiders sold more than $9.5 million worth of Eclipsys stock at or near the stock's two year highs; and (2) unbeknownst to the investing public, although the defendants were aware that new-sales bookings had slowed considerably and expenditures in research and development and marketing and distribution had accelerated, the Company failed to timely disclose these facts to the public in any of the Company's public filings with the Securities and Exchange Commission or press releases. On June 27, 2002, defendants issued a press release announcing that results for the second quarter of 2002 would fall short of the Company's previous statements. The Company announced it would report a net loss in the range of $0.07 to $0.10 per share. Trading price of Eclipsys stock dropped nearly 50% in response to this. For more details, contact Marc A. Topaz or Stuart L. Berman by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1- 888-299-7706 (toll free) or 610-667-7706 or by E-mail: info@sbclasslaw.com EL PASO: Cauley Geller Commences Securities Fraud Suit in S.D. Texas -------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP initiated a securities class action in the United States District Court for the Southern District of Texas on behalf of purchasers of El Paso Corporation (NYSE: EP) common stock during the period between July 25, 2001 and May 29, 2002, 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 defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of the Company's trading practices and revenues caused the Company's stock price to become artificially inflated, inflicting damages on investors. For more details, contact Jackie Addison, Sue Null or Ellie Baker by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 888-551-9944 or by E-mail: info@classlawyer.com EMPYREAN BIOSCIENCE: Rosen Law Commences Securities Suit in N.D. OH ------------------------------------------------------------------- The Rosen Law Firm initiated a securities class action in the United States District Court for Northern District of Ohio on behalf of purchasers of Empyrean Bioscience, Inc. (OTCBB: EMDG) publicly traded securities during the period from July 30, 1999 through December 7, 2001, inclusive. The suit is pending in the United States District Court for the Northern District of Ohio in Cleveland, Ohio. The complaint charges that the Company and certain of its current and former officers and directors violated Sections 11 and 12(a)(2) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between July 30, 1999 through December 7, 2001. The complaint alleges that the Company misrepresented in its required Securities & Exchange Commission (SEC) filings material facts concerning clinical trials for its Geda Plus microbicidal gel. Specifically, the complaint alleges that the Company misrepresented that the National Institute of Health was funding and participating in clinical trials. Additionally, the Company misrepresented that Phase III clinical trials were proceeding in Brazil during 2001. As a result of these misstatements and non-disclosures, according to the complaint, the Company's financial reports filed with the SEC throughout the class period were materially false and misleading, thereby artificially inflating the price of Company securities. For more details, contact Laurence Rosen by Mail: 232 Madison Avenue, Suite 906, New York, NY 10016 by Phone: 866-767-3653 by E-mail: lrosen@rosenlegal.com or visit the firm's Website: http://www.rosenlegal.com ICN PHARMACEUTICALS: Kirby McInerney Launches Securities Suit in NY ------------------------------------------------------------------- Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Eastern District of New York on behalf of all purchasers of ICN Pharmaceuticals, Inc. common stock (NYSE:ICN) during the period from May 3, 2001 through July 11, 2002. The suit asserts claims for violation of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against the Company, as well as its Chief Executive and Chief Financial Officers. The alleged violations, according to the complaint, stem from materially false and misleading statements made by the defendants during the class period that: (1) materially misrepresented the Company's financial performance (inflating reported revenues during the class period); and (2) caused Company stock to trade at artificially-inflated prices. The complaint alleges that, during the class period, Company shares traded at prices inflated to above $25 per share by the defendants' reporting of revenues inflated by "channel-stuffing." On July 11, 2002, Company shares dramatically deflated, losing over 50% of their value in one day, when the Company: (i) announced that it would not be able to meet previously- announced financial guidance regarding second-quarter revenues and earnings; and (ii) admitted that revenues and earnings would be depressed throughout the year due to the high inventory levels created by the Company's earlier flooding of the sales channels. For more details, contact Ira M. Press or Orie Braun by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022 by Phone: 212-317-2300 or 888-529-4787 or by E-Mail: obraun@kmslaw.com NICOR INC.: Charles Piven Commences Securities Fraud Suit in N.D. IL -------------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who acquired Nicor, Inc. (NYSE: GAS) securities between January 24, 2002 and July 18, 2002, inclusive, in the United States District Court for the Northern District of Illinois, against the Company and two of the Company's senior officers. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202 by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com PEMSTAR INC.: Mark McNair Commences Securities Fraud Suit in Minnesota ---------------------------------------------------------------------- The Law Office Of Mark McNair initiated a securities class action on behalf of shareholders who acquired PEMSTAR, Inc. (Nasdaq:PMTR) securities between June 8, 2001 and May 3, 2002, inclusive, in the United States District Court for the District of Minnesota, against the Company and certain of its officers and directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Mark McNair by Mail: 1101 30th St. N.W. Suite 500, Washington, DC 20007 by Phone: 877-511-4717 or 202-872-4717 or by E-mail: mcnair@justice4investors.com. PERKINELMER INC.: Mark McNair Launches Securities Suit in Massachusetts ----------------------------------------------------------------------- The Law Office Of Mark McNair initiated a securities class action on behalf of shareholders who acquired PerkinElmer, Inc. (NYSE:PKI) securities between July 15, 2001 and April 11, 2002, inclusive, in the United States District Court for the District of Massachusetts, against the Company and: (1) Gregory L. Summe and (2) Robert F. Friel The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Mark McNair by Mail: 1101 30th St. N.W. Suite 500, Washington, DC 20007 by Phone: 877-511-4717 or 202-872-4717 or by E-mail: mcnair@justice4investors.com. SONUS NETWORKS: Wechsler Harwood Commences Securities Suit in MA Court ---------------------------------------------------------------------- Wechsler Harwood Halebian & Feffer LLP initiated a securities class action in the United States District Court for the District of Massachusetts on behalf all persons who purchased or acquired Sonus Networks, Inc. (Nasdaq:SONS) securities between December 11, 2000 and January 16, 2002, inclusive against the Company and certain of its officers. 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 11, 2000 and January 16, 2002, thereby artificially inflating the price of Company securities. The complaint alleges that defendants issued numerous statements, which highlighted the Company's financial performance and described the Company's success in acquiring and/or developing new products, which it was then able to offer to current and prospective customers. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that certain products that Sonus claimed it had sold to Qwest Communications International, Inc. would not be ready for deployment in time to meet Qwest's needs and would result in Qwest having to purchase competing products from Nortel; (2) that the Company's highly-touted transaction with Qwest, which contributed more than 10% of Sonus' first quarter 2001 revenues, was actually a quid pro quo deal wherein Sonus had to agree to buy a $20 million Irrevocable Right of Use (IRUs) from Qwest in exchange for a $20 million order from Qwest; (3) that contrary to defendants' representations, Sonus' products were not carrier class as they did not have 99.999% availability, did not have voice quality as good as circuit- switched networks and did not have sophisticated network management and configuration capabilities; and (4) as a result, Sonus was not on track to report revenues of $195 million in 2001. On January 16, 2002, the last day of the class period, the Company announced its disappointing fourth quarter and year-end 2001 results and revealed that revenues for the year were just $173 million compared to class period estimates exceeding $200 million. Following this announcement, shares of Sonus stock fell below $5 per share. For more details, contact Craig Lowther by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: 877-935-7400 or by E- mail: clowther@whhf.com or visit the firm's Website: http://www.whhf.com TELLABS INC.: Much Shelist Commences Securities Fraud Suit in N.D. IL --------------------------------------------------------------------- Much Shelist Freed Denenberg Ament & Rubenstein, PC initiated a securities class action in the United States District Court for the Northern District of Illinois, on behalf of all persons and entities who purchased the Company's securities during the period December 11, 2000 through June 19, 2001, inclusive. The suit names as defendants the Company and: (1) Richard C. Notebaert, its CEO and Chief Executive Officer and a Director, and (2) Michael J. Birck, its Chairman of the Board of Directors, The defendants allegedly violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market. These alleged misstatements had the effect of artificially inflating the price of Company securities. The suit alleges that the Company represented to the public, in press releases issued throughout the class period, that: (i) its new products were enjoying strong demand; (ii) the seeming slowdown in its business was due to "component- parts shortages which have been corrected;" and (iii) the Company's business was strong fundamentally and the Company would meet earnings and revenues expectations. The suit alleges that these, and other, statements were materially false and misleading because, as alleged in the complaint, the Company's new optical networking line of products were inferior to the competition and its products were not well-received or in high demand. The complaint further alleges that, contrary to defendants' statements to the investing public, the Company's highly-touted acquisition of SALIX was a failure as sales of the product line it gained in the acquisition were falling. On June 19, 2002, the Company issued a press release revealing that second quarter of 2001 revenues would be 35% less than guidance reiterated only weeks before, and that the Company's earnings would be breakeven instead of the consensus $0.29 per share. In reaction to the announcement, the price of the Company's common stock fell by 31%, from $23 per share on June 19 to $15.87 on June 20, representing a 75% decline from the class period high. During the class period, Mr. Birck sold a total of 80,000 Company shares at prices between $64.25 to $65.38 per share, grossing proceeds of more than $5.18 million. For more details, contact Carol V. Gilden by Phone: 800-470-6824 or by E-mail: investorhelp@muchshelist.com UNIROYAL TECHNOLOGIES: Bernstein Liebhard Files Securities Suit in FL --------------------------------------------------------------------- Bernstein Liebhard & Lifshitz LLP initiated a securities class action on behalf of all persons who purchased or acquired Uniroyal Technology Corp. (Nasdaq: UTCI) securities between February 8, 2000 and May 13, 2002, inclusive. The action is pending in the United States District Court for the Middle District of Florida against: Executive Vice President, Chief Financial Officer and Treasurer George Zulanas, Jr. and Howard R. Curd, Chairman of the Board and Chief Executive Officer. The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 8, 2000 and May 13, 2002. According to the complaint, defendants issued a series of press releases touting its financial stability and its acquisition of Sterling Semiconductor, while strategically positioning the Company to increase its participation in the explosive compound semiconductor industry via internal growth. However, unbeknownst to the investing public that purchased Company stock during the class period: (1) the Company was not a financially stable company; (2) its acquisition of Sterling was not lucrative at all; and (3) it was not strategically positioning the Company to increase its participation in the explosive compound semiconductor industry via acquisition and internal growth. But for the Company's financial support, Sterling would probably have been forced to seek protection under the bankruptcy laws. Sterling was a development stage company and not, as defendants touted, "a leading developer of silicon carbide technology and materials." Moreover, in order to materially inflate the Company's net worth and further foster the illusion of growth, defendants agreed to pay an inflated price for Sterling with materially overvalued stock serving as currency. On December 31, 2001, eighteen months after having acquired Sterling in exchange for stock, with a purported value of more than $40 million, the Company shocked the market by announcing that it recorded a write- down of Sterling goodwill of approximately $9,816,000. On January 2, 2002, Company stock closed at $1.69 down from $3.20 the previous day and substantially down from its class period high of $71.125 reached on February 23, 2000. For more details, contact Ms. Linda Flood, Director of Shareholder Relations by Mail: 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-1414 or by E-mail: UTCI@bernlieb.com. VIVENDI UNIVERSAL: Mark McNair Commences Securities Suit in S.D. NY ------------------------------------------------------------------- The Law Offices Of Mark McNair initiated a securities class action on behalf of shareholders who acquired Vivendi Universal (NYSE:V) (Paris Bourse:EX FP) securities between February 11, 2002 and July 3, 2002, inclusive, in the United States District Court for the Southern District of New York, against the Company and Jean-Marie Messier, the Company's former Chairman and Chief Executive Officer. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Mark McNair by Mail: 1101 30th St. N.W. Suite 500, Washington, DC 20007 by Phone: 877-511-4717 or 202-872-4717 or by E-mail: mcnair@justice4investors.com. VIVENDI UNIVERSAL: Charles Piven Commences Securities Suit in S.D. NY --------------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action on behalf of shareholders who acquired Vivendi Universal (NYSE: V); (Paris Bourse: EX FP) securities between February 11, 2002 and July 3, 2002, inclusive, in the United States District Court for the Southern District of New York, against the Company and Jean-Marie Messier, the Company's former Chairman and Chief Executive Officer. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202 by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com XCEL ENERGY: Milberg Weiss Commences Securities Fraud Suit in MN Court ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Xcel Energy, Inc. (NYSE: XEL) between January 31, 2001 and July 26, 2002, inclusive. The action is pending in the United States District Court, District of Minnesota against the Company and: (1) James J. Howard, (2) Wayne H. Brunetti and (3) Edward J. Mcintyre 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 January 31, 2001 and July 26, 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 Securities & Exchange Commission (SEC) which described the Company's financial performance and the financial performance of NRG Energy, Inc. (NRG), the Company's majority-owned subsidiary. As alleged in the suit, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had engaged in "round-trip" energy trades that provided no economic benefit for the Company; (ii) that Xcel's and NRG's credit agreements with lenders contained cross-default provisions and covenants, the result of which was that in the event of a default by NRG, among other adverse effects, Xcel would lose access to $800 million in credit; (iii) that the Company lacked the necessary internal controls to adequately monitor the trading of its power; and (iv) that as a result, the value of the Company's revenues and financial results were materially overstated at all relevant times. After the close of the market on July 25, 2002, the Company issued a press release announcing its financial results for the second quarter, the period ended June 30, 2002, and disclosed that its earnings had declined and that it was revising its earnings expectations for fiscal 2002. In a conference call the very next day, defendants finally disclosed the true extent of the Company's liquidity and credit difficulties and its management's inability to effectively remedy such difficulties stemming from the operations of NRG. As reported in several business articles dated July 26, 2002, analysts were horrified to learn that the liquidity and credit difficulties extended to Xcel itself under the "cross-collateral default" provisions Xcel and NRG had entered into with lenders. Market reaction to these revelations was swift and brutal. On July 26, 2002, Xcel stock closed at $7.55, a more than 36% one-day decline, on extremely heavy trading volume. Subsequently, on July 28, 2002, defendants disclosed that Xcel was being investigated by the SEC, among other regulators, for engaging in "round-trip" or "wash" transactions, which involve the simultaneous buying and trading of power at the same price and same amount and provide no economic benefit to the Company. For more details, contact Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl., New York, NY 10119-0165 by Phone: 800-320-5081 by E-mail: XcelEnergycase@milbergNY.com or visit the firm's Website: http://www.milberg.com ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2002. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re- mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *