CAR_Public/020903.mbx               C L A S S   A C T I O N   R E P O R T E R
  
             Tuesday, September 3, 2002, Vol. 4, No. 174

                           Headlines
                             
APARTHEID LITIGATION: Former Judge To Lead Apartheid Lawsuit Team
ASK JEEVES: Faces Shareholder Derivative Suit Pending In CA State Court
AT&T CORP.: Denial Of Services To Minority, Poor Areas Alleged In Suit
BROADCOM CORPORATION: CA Court Refuses To Dismiss Securities Fraud Suit
BSQUARE INC.: Plaintiffs File Amended Securities Fraud Suit in S.D. NY

CABLEVISION SYSTEMS: Faces Suits Over Rainbow Media Stock Swap in DE
CALIFORNIA: Jury Returns $5M Verdicts v. Cemetery For Faulty Burials
CONSECO INC.: Shareholder Files Suit Over Accounting Irregularities
CSX TRANSPORTATION: Claimants Get Settlements Over Chemical Fire Suit
ENRON CORP: Workers Get Severance Pay Under $29 Million Agreement

GEORGIA: Inmate Of Old Jail Files Suit Seeking To Open Unused New Jail
IMMERSION CORPORATION: Asks NY Court To Dismiss Securities Fraud Suit
JAPAN: Health Ministry Denies Error, Liability In Hepatitis C Scandal
MENORAH GARDENS: Hearings Over Suit Class Certification Continue
METLIFE INC.: Reaches Agreement To Settle Racial Discrimination Suit

MICROSOFT CORP.: May Be Ordered To Add Java Programming To Windows
NATIONAL AUSTRALIA: Denies Any Role in Enron Account Manipulations
PDI INC.: Asking NJ Court To Dismiss Consolidated Securities Fraud Suit
SAGENT TECHNOLOGY: Asks NY Court To Strike Portions of Securities Suit
SAGENT TECHNOLOGY: CA Court Sustains Motion To Dismiss Securities Suit

SECURITIES LITIGATION: Regulators Look For Evidence Of Analysts' Roles
SLAVE REPARATIONS: About 60,000 Russians Get Compensation From Germany
VIRGINIA: City, Residents Ask Assistance From Court-Appointed Mediator
TERAYON COMMUNICATIONS: CA Court Refuses To Dismiss Securities Suit
WELLS FARGO: Mexican Group Calls For Bank Boycott Over Back-Wages Claim

                     New Securities Fraud Cases

FIRST HORIZON: Milberg Weiss Commences Securities Fraud Suit in N.D. GA
RIVERSTONE NETWORKS: Glancy & Binkow Lodges Securities Suit in N.D. CA
SALOMON SMITH: Beatie Osborn Commences Securities Fraud Suit in S.D. NY

                           *********

APARTHEID LITIGATION: Former Judge To Lead Apartheid Lawsuit Team
-----------------------------------------------------------------
A former judge who headed the investigation into South Africa's
apartheid atrocities is to lead a team suing foreign corporations for
allegedly helping finance the violent regime, a US lawyer said
recently, according to Reuters English News Service.

Lawyer Edward Fagan said Dumisa Ntsebeza was flying to the United
States with him to lead the legal action.  "He (Ntsebeza) is now coming
to the United States to assume the leadership of the apartheid cases,"
Mr. Fagan told reporters at London's Heathrow airport as the pair were
about to board a plane to New York.

Mr. Ntsebeza retired as a judge of the South African Labour Court
earlier this week, thus freeing himself to take an active part in the
campaign for massive compensation for apartheid victims.  He was the
chief investigator in Archbishop Desmond Tutu's Truth and
Reconciliation Commission, which probed apartheid's history and
recorded hundreds of human rights violations, mainly against blacks,
but was not empowered to award financial reparations to the victims.

Lawyers, churches and civic groups in South Africa had been lobbying
for greater involvement by Mr. Ntsebeza in the moves to bring a class
action against the companies, which would mean that all victims, not
just the named plaintiffs, could receive damages if the case were
successful.

Mr. Fagan, who has spearheaded the case so far, said he planned to
issue lawsuits against another 31 companies, but did not identify them.  
He said they would be issued in stages over the coming weeks, but all
would be filed by October 13.

Asked what evidence the lawsuits would be based on, Mr. Fagan said,
"They are based on unfair labor claims, they are based on profiteering
. human rights violations.  They will be filed all across the country
in the United States."

The class action he already has filed against some Swiss banks, US-
based Citigroup, German banks and against IBM Computer Co., alleges the
banks provided funds to prop up the apartheid government between 1985
and 1993, at a time when the regime was running out of cash because of
the sanctions imposed by the United Nations.

Millions of black South Africans lost their homes, tens of thousands
were tortured and jailed for their political beliefs and thousands more
were killed in clashes with apartheid police or were assassinated by
government death squads.


ASK JEEVES: Faces Shareholder Derivative Suit Pending In CA State Court
-----------------------------------------------------------------------
Ask Jeeves, Inc. faces a shareholder derivative suit filed in the
Superior Court of California, County of Alameda, asserting claims
against the officers and directors at the time of the Company's initial
public offering (IPO).  The suit also names as defendants Morgan
Stanley & Co., Inc., and FleetBoston Robertson Stephens, the
underwriters of the Company's IPO.

The complaint alleges breach of fiduciary duty, negligence and unjust
enrichment of the named officers and directors, for acquiescing and/or
conspiring with the underwriter defendants in underpricing the IPO.

The Company is aware that similar allegations have been made in other
derivative lawsuits involving issuers that have also been sued in the
Southern District of New York securities class action cases.  Based
upon the Company's understanding of the facts, it believes that the
complaint is deficient.  However, an unfavorable outcome could have a
material adverse effect on its operating results and financial
position.


AT&T CORP.: Denial Of Services To Minority, Poor Areas Alleged In Suit
----------------------------------------------------------------------
An official in South Florida's Broward County said her community has
been concerned about AT&T's failure to bring high-speed internet
service to less affluent areas, one of the central allegations in a
class action for discrimination filed against AT&T Corp. this past
week, according to a report by AFX  News.

The lawsuit alleges that AT&T and its broadband division denied high-
speed broadband services to minority and poor neighborhoods, as well as
overcharging for services elsewhere.  "A good majority of the low-
income areas had yet to be rebuilt," said Leslie Stout, an official in
Broward County's office of information technology.  "Looking at what
area of the county had not been rebuilt (for broadband) caused us great
concern."

In July, AT&T Broadband reached an agreement with Broward County to
bring broadband service to all unincorporated areas of the county by
2004, Ms. Stout said.

The class action alleges that AT&T Broadband Services hold several
franchises in Broward County where only one percent of eligible African
American households have access to high-speed broadband internet
service as opposed to 100 percent of eligible white households.  
Richard Greenfield, co-counsel on the suit, said those statistics had
been leaked to the law firm by AT&T Broadband employees.

Broward County officials could not confirm or refute those figures, but
did say most non-affluent households in the county were not upgraded.

The lawsuit accuses AT&T of  "electronic redlining," meaning drawing a
red line on a map around areas they would not upgrade.  The lawsuit was
filed in the Miami federal court on behalf of Gwen Hudson and Cynthia
Martin, two residents of Broward County who are the lead plaintiffs in
the case.

A hearing is scheduled to consider an emergency injunction to stop the
merger of AT&T with Comcast (Broward county commissioners had made the
AT&T broadband build-out a condition for approval of the transfer of
AT&T's cable franchise license to Comcast.  The build-out never
happened).  

Additionally, Mr. Greenfield is requesting an expedited discovery of
evidence.  His team will ask the judge to order AT&T to turn over
requested documents within two weeks.  "We are going after the
documents we know are there that will show that AT&T is not providing
equal access to the minority community," Mr. Greenfield said.  "We
understand from reliable sources that AT&T has retained counsel who are
going in and doing an Arthur Andersen with the files."

Marc Cooper, head of research at the Consumer Federation of America,
said accusations of redlining have been made against cable companies in
South Florida for years.  Mr. Cooper confirmed that US
telecommunications law does prohibit discrimination, citing the very
first line of the Telecommunications Act of 1934, the basis of all
modern telecommunications law.  

The first line states that the purpose of the act is to make
telecommunications services available "to all people of the United
States without discrimination."


BROADCOM CORPORATION: CA Court Refuses To Dismiss Securities Fraud Suit
-----------------------------------------------------------------------
The United States District Court for the Central District of California
will not dismiss the consolidated securities class action pending
against Broadcom Corporation, its Chief Executive Officer, Chief
Technical Officer and Chief Financial Officer.

The consolidated suit arose from thirty-one lawsuits, alleging
violations of the Securities Exchange Act of 1934.  The suit was filed
on behalf of all persons who purchased the Company's public securities,
or bought or sold options on the Company's stock, between July 31, 2000
and February 26, 2001 and alleges claims under Sections 10(b) and 20(a)
of the 1934 Act and Rule 10b-5 promulgated thereunder, an earlier Class
Action Reporter story states.

The Company filed a motion to dismiss the plaintiffs' consolidated
complaint under the Private Securities Litigation Reform Act of 1995
and Rules 9(b) and 12(b)(6) of the Federal Rules of Civil
Procedure, and that motion was granted by the district court in March
2002.

The court granted plaintiffs leave to file a second amended complaint
and plaintiffs filed a second amended complaint in April 2002.  In May
2002 the Company filed a motion to dismiss the second amended
complaint, which motion was denied in July 2002.  The Company's answer
to the seconded amended complaint is due in September 2002.

The Company believes the allegations in the purported consolidated
shareholder class action are without merit and is defending the action
vigorously.

From March through June 2001, the Company, its directors, Chief
Financial Officer and other officers, were sued in five purported
shareholder derivative actions based upon the same general set of
alleged facts and circumstances as in the purported shareholder class
action.

Four of these actions were filed in the Superior Court of the State of
California for the County of Orange, and by order of the court these
four actions were consolidated into a single action.  One purported
derivative action was filed in the United States District Court for
the Central District of California.  The parties have stipulated that
the federal case will be stayed while the consolidated derivative
lawsuit proceeds in the California Superior Court.  

In March 2002 the plaintiffs filed their consolidated amended complaint
in the state action.  The Company and individual defendants filed a
demurrer to the state action in April 2002, which the court overruled
in May 2002.  

The Company and the individual defendants applied to the Court of
Appeal for a writ of mandate compelling the Superior Court to
reconsider its ruling.  In August 2002 the Court of Appeal denied the
writ application and the Company filed a petition for review with the
Supreme Court.

The Company filed an answer to the complaint denying the plaintiffs'
allegations in August 2002.  The Company believes the allegations in
these purported derivative actions are also without merit and is
defending the actions vigorously.


BSQUARE INC.: Plaintiffs File Amended Securities Fraud Suit in S.D. NY
----------------------------------------------------------------------
Plaintiffs in the securities class action pending against Bsquare, Inc.
filed an amended complaint in the United States District Court for the
Southern District of New York.

The suit, which also names as defendants certain of the Company's
current and former officers and directors, and the underwriters of the
Company's initial public offering, purports to filed on behalf of
purchasers of the Company's common stock during the period from October
19, 1999 to December 6, 2000.

The suit alleges that the underwriter defendants agreed to allocate
stock in the Company's initial public offering to certain investors in
exchange for excessive and undisclosed commissions and agreements by
those investors to make additional purchases of stock in the
aftermarket at pre-determined prices.

The suit also alleges that the prospectus for the Company's initial
public offering was false and misleading in violation of the securities
laws because it did not disclose these arrangements.  

The litigation is being coordinated with over 300 nearly-identical
actions filed against other companies.  It is not yet clear when the
Company will be required to respond to the amended complaint.  The
Company intends to defend these actions vigorously.  However, due to
the inherent uncertainties of litigation, the Company cannot accurately
predict the ultimate outcome of the litigation.


CABLEVISION SYSTEMS: Faces Suits Over Rainbow Media Stock Swap in DE
--------------------------------------------------------------------
Cablevision Systems Corporation faces several securities class actions
pending in the Delaware Chancery Court.  The suits, which also name the
Company's directors as defendants, allege breach of fiduciary duties
and breach of contract with respect to the exchange of the Rainbow
Media Group tracking stock for Cablevision NY Group common stock.

The suits were filed on behalf of all holders of publicly traded shares
of Rainbow Media Group tracking stock, and seeks to:

     (1) enjoin the exchange of Rainbow Media Group tracking stock for
         Cablevision NY Group common stock;

     (2) enjoin any sales of "RMG assets," or, in the alternative,
         award rescissory damages;

     (3) if the exchange is completed, rescind it or award rescissory
         damages;

     (4) award compensatory damages; and

     (5) award costs and disbursements.

The Company believes the claims are without merit and intends to
vigorously contest the lawsuits.


CALIFORNIA: Jury Returns $5M Verdicts v. Cemetery For Faulty Burials
--------------------------------------------------------------------
A jury in Bellflower, California, has returned $5 million in verdicts
against a Compton cemetery for burying bodies alongside a roadway after
staging fake graveside services on a nearby grass plot, a plaintiffs'
attorney said, according to an Associated Press Newswires report.

More than 250 verdicts were handed down earlier this week in a class
action filed against Angeles Abbey Memorial Park.  The awards ranged
from $1,000 to $125,000 depending on the relationships between the
plaintiffs and the deceased, Santa Ana attorney Amador Corona said.

The cemetery moved a roadway and buried bodies in a dirt area that had
been covered by asphalt, Mr. Corona said.  Confusion over the new
configuration of the roadway allowed motorists to drive over the dirt
burial sites, the lawyer said.

Several of the plaintiffs claimed they had been misled to believe that
their relatives were being buried in the grassy area where interment
services had been held.

After the lawsuit was filed, the dirt area was sodded and marked to
indicate the graves, Mr. Corona said.  A telephone call to Scott Cox,
an attorney for the cemetery, was not immediately returned.


CONSECO INC.: Shareholder Files Suit Over Accounting Irregularities
-------------------------------------------------------------------
A Conseco, Inc. shareholder has filed a class action accusing the
Company of misleading investors about its financial condition, reports
the Associated Press Newswires.  The lawsuit filed in federal court in
Indianapolis alleges that the Company violated the Securities and
Exchange Act through "material omissions" and "misleading statements"
regarding its overall liquidity since releasing its third-quarter
earnings last October.

Among other allegations, the 41-page complaint claims that the Company
failed to disclose write-offs in its manufactured home loan portfolio
third-quarter report and painted a "rosy picture" during a November
2001 investors conference in midtown Manhattan.

The result, said attorney Lionel Z. Glancy of Los Angeles-based Glancy
& Binkow LLP, was that the Company's stock price remained "artificially
inflated" until earlier this month, when the company announced it was
entering restructuring talks with creditors in an effort to avoid
bankruptcy.  Mr. Glancy's law firm was one of two that filed the
lawsuit on behalf of Carolyn L. Porter of suburban Los Angeles.

The lawsuit was filed on behalf of all public investors who bought the
Company's common stock between October 30, 2001, and July 15.  It also
names as defendants Chief Executive Officer Gary C. Wendt, Chief
Operating Officer William J. Shea and former Chief Financial Officer
Charles B. Chokel.

Mr. Glancy said attorneys plan to seek "substantial" monetary damages
from the Company as well as attorneys, accountants and experts' fees.


CSX TRANSPORTATION: Claimants Get Settlements Over Chemical Fire Suit
---------------------------------------------------------------------
The first of more than 9,000 people in a class action over a 1987
chemical tank fire, are collecting their share of a $220 million
partial settlement, the Associated Press Newswires reports.

Attorneys said each claimant is getting an average of $10,000.  They
have been told to come to the New Orleans Arena to pick up their
checks.  The amounts are similar to another payout two years ago.

The current batch of checks is financed by settlement of claims against
the Company, one of nine companies that a Civil District Court jury
found liable for the chemical tank fire.  The Company owns the
switching track where the parked tank car leaked the cancer-causing
chemical butadiene on the night of September 13, 1987, before erupting
in flames, spewing noxious smoke and ash, and forcing nearby residents
to evacuate.

Checks that the plaintiffs received in 2000, were underwritten from a
$215 million settlement reached with six other companies they sued.  
Negotiations are under way to reach settlements with the remaining
two defendant companies.


ENRON CORP: Workers Get Severance Pay Under $29 Million Agreement
-----------------------------------------------------------------
Under a $29 million deal recently approved by US Bankruptcy Judge
Arthur Gonzalez in New York, 4,200 former Enron employees will receive
up to $13,500 each in severance pay, according to a report by USA
Today.

"This gives them a beacon of hope," says Richard Rathvon, co-chair of
the Enron Employment-Related Issues Committee, which worked with the
AFL-CIO and Jesse Jackson's Rainbow Push coalition to negotiate the
deal with Enron over the past six months.

"It is a big relief for everyone," says Deborah Perrotta, a former
Enron administrative assistant.  "It is not as much as we wanted, but
it is better than nothing."  The money will give a big boost to Ms.
Perrotta, who lost $40,000 on Enron stock in her company 401(k) account
and other mutual funds.

The severance agreement does not block the former employees from taking
part in the ongoing class actions against Enron on behalf of the
shareholders and 401(k) participants.  The former workers also may get
part of $85 million in retention bonuses paid to Enron executives
around the same time that Enron filed for bankruptcy reorganization in
winter.  The employees' committee plans to argue for that money in
bankruptcy court.

Judge Gonzalez postponed a ruling on the fate of  $12 million that
former Enron executive Michael Kopper agreed to give up as part of his
recent plea bargain with federal prosecutors.  Mr. Kopper pleaded
guilty last week to fraud and money laundering, and he agreed to
surrender the $12 million to the Justice Department and the Securities
and Exchange Commission, which hopes to return the money to investors.

However, creditors in the Enron bankruptcy case sued Mr. Kopper laying
claim to the $12 million.  Judge Gonzalez issued a temporary
restraining order, stopping transfer of the funds, and extended
application of this order to September 16.

The Justice Department and the SEC, believing that the bankruptcy court
lacks jurisdiction over criminal cases, hope to move the creditors'
lawsuit against Mr. Kopper into the US District Court in New York.


GEORGIA: Inmate Of Old Jail Files Suit Seeking To Open Unused New Jail
----------------------------------------------------------------------
A McIntosh County, Georgia inmate has filed a federal lawsuit seeking
to close the current county jail and open the new $4 million detention
center that was completed in February but has remained empty due to
political infighting, Associated Press Newswires reports.

In a recently filed class action, in US District Court, Douglas W.
Alexander, an attorney represent Lee Stuart Guest and all other
inmates, asked that the old 24-bed jail be closed immediately.  The
lawsuit claims, among other things, that the jail is overcrowded,
filthy and bug-infested.

Meanwhile, the new 61-bed jail remains vacant because McIntosh County
Sheriff Charles Jones and county commissioners cannot agree over
staffing.  Sheriff Jones says he cannot safely operate the new jail
without 16 additional jailers.  The county commission has said it would
hire four, with the Sheriff reassigning members of his current staff to
the new jail.  Sheriff Jones said he had not seen the lawsuit and could
not comment.

Mr. Alexander has long been an advocate of prisoner and inmate rights.  
Other lawsuits he has filed in federal court resulted in a new jail in
Glynn County and the closing of the Charlton County jail.  "While the
defendants bicker over staffing and funding issues, a brand new state-
of-the-art facility remains unoccupied - the citizens of McIntosh
County bear the cost of maintaining this new facility as well as
housing prisoners in other south Georgia counties," says the lawsuit.

County commissioners sued first, asking the court to force the sheriff
to occupy the new jail.  The judge, Senior Superior Court Judge A.
Blenn Taylor Jr. dismissed the case but offered to mediate the matter.

Next, the Sheriff filed his own suit August 16, four days before county
commission election, seeking an order compelling commissioners to
provide him with enough money to hire 16 new staff members.  No due
date set for a hearing.

In a separate petition for an injunction, Mr. Alexander asserted that
Mr. Jones may have seized enough money through the county's forfeiture
contraband program to hire additional staff.


IMMERSION CORPORATION: Asks NY Court To Dismiss Securities Fraud Suit
---------------------------------------------------------------------
Immersion Corporation asked the United States District Court for the
Southern District of New York to dismiss the consolidated securities
class action pending against the Company and:

     (1) Louis Rosenberg, former CEO, President and Chairman of the
         Company,

     (2) Victor Viegas, CFO,

     (3) Bruce Schena, former Chief Technology Officer, and Director,
         and

     (4) certain underwriters of the Company's November 12, 1999
         initial public offering

The suit, filed on behalf of all persons who purchased the Company's
common stock from November 12, 1999 through December 6, 2000, alleges
violations of Sections 11 and 15 of the Securities Act of 1933 and
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, on the
grounds that the prospectus incorporated in the registration statement
for the Company's initial public offering failed to disclose, among
other things, that:

     (1) the underwriter had solicited and received excessive and
         undisclosed commissions from certain investors in exchange for
         which the underwriter allocated to those investors material
         portions of the shares of the Company's stock sold in the
         offering; and

     (2) the underwriter had entered into agreements with customers
         whereby the underwriter agreed to allocate shares of the
         Company's stock sold in the offering to those customers in
         exchange for which the customers agreed to purchase additional
         shares of the Company's stock in the aftermarket at pre-
         determined prices.

The Company and certain individual defendants were served with the
complaint, but after the 120 day period for service allowed by the
Federal Rules of Civil Procedure had elapsed.  The lawsuit has been
consolidated for pretrial purposes with similar lawsuits to more than
300 other initial public offerings conducted in 1999 and 2000 before
the Honorable Judge Shira A. Scheindlin. The defendants' time to
respond to the complaints has been stayed pending a plan for further
coordination.

In April 2002, plaintiffs electronically served amended complaints in
most of the cases.  The plaintiffs also indicated that they would file
amended complaints in the cases against the Company and certain other
issuers after their pending motions for appointment of lead plaintiffs
were granted.

On July 15, 2002, the Company filed a motion for dismissal of the suit,
case, and the Company expects such motion to be heard prior to year-
end.


JAPAN: Health Ministry Denies Error, Liability In Hepatitis C Scandal
---------------------------------------------------------------------
Japan's Health Ministry virtually denied the state was at fault in its
response to dealing with hepatitis C infections in the 1980s from
tainted blood products, instead laying the blame on the products'
maker, the defunct Green Cross Corp., the Kyodo News reports.

Analysts of the situation say that people who contracted the illness
are expected to move toward class actions against the state.  An
estimated two million people were infected with hepatitis C across
Japan, and medical experts say they were mainly infected through
tainted blood products.

In an investigation report released recently, the Health, Labor and
Welfare Ministry admitted inadequate information gathering as it failed
to learn about a 1977 US ban on unheated hepatitis-tainted blood
products.  As a result, it failed to ban such products until mass
hepatitis infections came to light in Aomori Prefecture, northeastern
Japan, in April 1987.

Meanwhile, the report, based on information from some 1,300 former
Green Cross employees and related documents, strongly criticized Green
Cross for underreporting infections after they came to light.

Green Cross was criticized for only beginning to voluntarily recall the
tainted products, blood-clotting fibrinogen drugs, in 1987, after eight
cases of hepatitis infection from the agents surfaced in 1986 - 1987.

Lawyers pushing for the state to be held legally responsible, said the
ministry investigation was of limited value as a third party was not
involved.  The delay in reporting such infections was behind the delay
in the government's action on the heated blood products, recalled in
June 1988.


MENORAH GARDENS: Hearings Over Suit Class Certification Continue
----------------------------------------------------------------
The grim hearings in Judge J. Leonard Fleet's courtroom continue in the
case of the moved, discarded and otherwise desecrated bodies by Menorah
Gardens Cemetery staff. The deceased's families must now present or sit
through macabre testimony, Associated Press Newswires reports.

The hearings, relating to the events at the Palm Beach cemetery, are
being conducted by Judge Fleet so that he may determine whether the
1,400 families should be allowed to pursue their lawsuit against
Houston-based Service Corporation International as a single class
action or, instead, press their claims as individuals.  The number of
bodies involved is a key issue.

Therefore, reason exists for the grim testimony taken from witnesses,
such as gravediggers and landscape personnel, to support the most
serious allegations in the lawsuit that bodies were dug up with
backhoes to make room for fresh burials, and the old bones ended up in
a wooded heap used for fill dirt.

Another witness, a family member relates how her father's body was
located, "The coffin was broken up when they found it - it was broken,
it was filled with swamp water, and it was a mess."

Company officials paint an image of a rogue crew, about whose acts they
knew nothing, but who were fired, when the company was informed of
events at Menorah Gardens.  Family attorneys say SCI knew about the
seriously crowded conditions and about the actions taken to relieve the
crowding and make way for fresh burials.


METLIFE INC.: Reaches Agreement To Settle Racial Discrimination Suit
--------------------------------------------------------------------
A federal judge signed and made public a settlement under which
MetLife, Inc. agreed to give nonwhite customers as much as $160 million
in compensation for allegedly charging them higher rates for life
insurance and discriminating in other ways for much of the 20th
century, according to a report by the Wall Street Journal.

The settlement will cover an estimated 1.8 million policies issued to
African Americans and other nonwhites from 1901 through 1972.  It
covers individuals who were sold "substandard" policies because of
race, which carried higher premiums and paid less in benefits than
policies sold to whites.

It also is meant to compensate nonwhites whom records showed were
required to undergo medical exams and detailed background checks before
buying policies, while whites were not.  In cases, where policyholders
have died, family members will receive compensation.

US District Judge Harold Baer, Jr. in Manhattan signed the preliminary
settlement.  It covers both a class action on behalf of African
American policyholders and an investigation of MetLife by the New York
State Insurance Department, MetLife's home-state regulator.  Other
states are due to review the settlement and are considered likely to
sign on to it.  The class action part of the settlement requires final
approval after a public "fairness" hearing before the judge, scheduled
for February 2003.

The Company did not officially admit wrongdoing in the settlement.

The investigation and settlement followed two front-page articles in
The Wall Street Journal, during 2000 and 2001, which detailed MetLife's
disparate treatment of whites and nonwhites.  The Company disclosed in
February that it had set aside a $250 million reserve to cover the
expected costs of a settlement, including legal fees and other
expenses.  The legal fees of the policyholders have not yet been
determined and will be in addition to the $160 million settlement.

The settlement will give policyholders a combination of cash and term
life insurance, depending on individual circumstances.  Some of the
policies at issue were very small, but the settlement fixes a minimum
payment of $10 per policy.  There will be wide variations in size of
payouts depending on category of policies, but the average payment
ranges from $20 to $892, depending on the type and age of the policies.

Due to the intervention of the New York life insurance department, the
settlement for policyholders is substantially better than the terms
tentatively agreed to during December 2001, people involved in the
talks said.


MICROSOFT CORP.: May Be Ordered To Add Java Programming To Windows
------------------------------------------------------------------
US District Judge J. Frederick Motz is overseeing the lawsuits brought
by Sun Microsystems and AOL Time Warner's Netscape Communications unit
seeking billions of dollars in antitrust damages from Microsoft Corp.,
the world's largest software company.  These suits have been combined
with more than 100 proposed class actions that accuse Microsoft of
using its monopoly to overcharge consumers for Windows.

During a recent hearing on the lawsuits, Judge Motz said he will
consider ordering Microsoft to include Sun Microsystems' Java
programming language in Windows, which powers 95 percent of the world's
PCs, according to a report by The Seattle Times.   The judge said he
will hold a December 3 hearing on Sun's request.

Sun, which makes software for servers that power corporate computer
networks, says Microsoft is using its Windows monopoly on personal-
computer operating systems to gain control of the market for delivering
services, such as banking or pay movies over the Internet.  Such "Web
services" include programs that enable cellphone users to send and
receive e-mail.

Sun's lawyer, Lloyd Day Jr., told Judge Motz the order is needed to
prevent Microsoft from dominating the market for Web services.  "This
is a very important matter; it urgently needs to be decided," Mr. Day
told the judge.  "Every day, every week, developers are making
decisions" on whether to write programs with Java or Microsoft's new
.Net language for Internet applications.  Judge Motz said issuing such
an order "would be a rather profound act that would change the whole
nature of the market."

"There are serious allegations that irreparable harm might be suffered.  
I have an obligation to take it seriously," Judge Motz said during the
hearing.

Programs written in Java can run on any operating system, and Mr. Day
argued that including Java in Windows would make rival operating
systems more popular with consumers.


NATIONAL AUSTRALIA: Denies Any Role in Enron Account Manipulations
------------------------------------------------------------------
National Australia Bank (NAB), which owns Yorkshire, Clydesdale and
Northern banks in the United Kingdom, denied reports that it had
assisted former energy giant Enron Corp. in the manipulating of its
accounts, according to a recent report by the Daily Mail.

The Australian bank said it had been a relatively minor member of a
loan syndicate known as Firefly.  The bank said further that it had
provided four percent of the total finance, strictly on an interim
basis, to facilitate Enron's purchase of Brazil's Elektro.

The Bank added that the loan had been approved in February 1999, and
has since been repaid in full, and that no claim or class action has
been made against it.

Details of the Bank's alleged involvement in Firefly only came to light
after hundreds of documents were released recently by a congressional
committee investigating the Enron scandal.  Among the documents was an
internal memo from financial service company Citicorp group, allegedly
naming NAB as a member of two groups of lenders.

According to one report on Firefly, Robert Roach the chief investigator
for the U.S. Congressional investigation, said, "The evidence is that
Enron would not have been able to engage in the extent of accounting
deceptions it did were it not for the active participation of major
financial institutions willing to go along with, and even expand upon,
Enron's activities."


PDI INC.: Asking NJ Court To Dismiss Consolidated Securities Fraud Suit
-----------------------------------------------------------------------
PDI, Inc. intends to ask the United States District Court for the
District of New Jersey to dismiss the consolidated securities class
action pending against it, its chief executive officer, and its chief
financial officer.

The suit alleges violations of the Securities Exchange Act of 1934, and
Sections 10(b) and 20(a) of the 1934 Act and Rule 10b-5 promulgated
thereunder.  The suit was filed on behalf of all persons who purchased
the Company's common stock between May 22, 2001 and November 12, 2001.

The essence of the allegations in the consolidated and amended
complaint is that the defendants intentionally or recklessly made false
or misleading public statements and omissions concerning the Company's
financial condition and prospects with respect to its marketing of
Ceftin in connection with the October 2000 distribution agreement with
GlaxoSmithKline, as well as its marketing of Lotensin in connection
with the May 2001 distribution agreement with Novartis Pharmaceuticals
Corp.

The Company has not yet answered the consolidated and amended complaint
and intends to file a motion to dismiss under the Private Securities
Litigation Reform Act of 1995 and Rules 9(b) and 12(b)(6) of the
Federal Rules of Civil Procedure.  Discovery has not yet commenced in
the consolidated action.

The Company believes that the allegations in this purported securities
class action are without merit.


SAGENT TECHNOLOGY: Asks NY Court To Strike Portions of Securities Suit
----------------------------------------------------------------------
Sagent Technology, Inc. asked the United States District Court for the
Southern District of New York to strike several portions of the amended
consolidated securities class action filed on behalf of the individual
investors who purchased Company's stock between October 21, 1999 and
April 18, 2000.  The suit alleges that the Company misrepresented its
prospects for 1999 and the first quarter of 2000.  

The original consolidated suit was filed in April 2001.  The Company
moved to dismiss the suit, which the court granted on September 28,
2001, but gave the plaintiffs leave to amend the complaint.  On
December 28, 2001, the class plaintiffs filed a second amended
complaint, which the Company again moved to dismiss.

The hearing on the Company's motion was held on June 3, 2002.  On June
5, 2002, the court issued an order granting in part and denying in part
the Company's motion to dismiss the second amended complaint.

Thereafter, the plaintiffs filed a third amended complaint.  The
Company has moved to strike certain portions of that complaint on the
grounds that those particular allegations were dismissed by the court
from the prior complaint.  The court heard this motion in August 26,
2002, but has yet to release a ruling.

The Company will answer the complaint following the court's ruling on
that motion.  Because certain claims survived the motion to dismiss the
prior complaint, and the discovery stay is no longer in effect for
those allegations, the parties are engaging in discovery.


SAGENT TECHNOLOGY: CA Court Sustains Motion To Dismiss Securities Suit
----------------------------------------------------------------------
The Superior Court of California for the County of Santa Clara
sustained Sagent Technology, Inc.'s motion to dismiss the consolidated
shareholder derivative suit filed against certain of the
Company's present and former officers and directors as defendants.

The principal allegation of the suit is that the defendants breached
their fiduciary duties to the Company through the dissemination of
allegedly misleading and inaccurate information and other allegations.  

The Company filed a motion to dismiss one of the suits, on the grounds
that, among other things, the plaintiff had failed to make a pre-suit
demand on the board of directors as required by Delaware law.  The
officer and director defendants joined in that motion, and also moved
to dismiss on the grounds that the complaint fails to allege the
asserted causes of action against the individual defendants.

The court heard oral arguments on the defendants' motion to dismiss the
suit in January 2002.  On March 1, 2002, the court issued an order
sustaining the Company's motion to dismiss, granting the plaintiff
leave to amend the complaint.  The plaintiffs filed an amended
complaint in April 2002, which the Company and the individual
defendants each a filed motion to dismiss.

The Court heard oral argument on July 9, 2002 and thereafter sustained
the motions to dismiss, holding that the nominal plaintiff did not have
standing to litigate the complaint where he had failed to make a pre-
suit demand on the Company's Board of Directors as required by Delaware
law.  The plaintiffs have not filed an amended complaint to date.


SECURITIES LITIGATION: Regulators Look For Evidence Of Analysts' Roles
----------------------------------------------------------------------
Regulators from more than 40 states are sifting through mounds of Wall
Street's e-mails, employee evaluations and other internal documents in
their attempt to dissect the role of the stock analysts in the
technology and telecom bubble, the Reuters English News Service
reports.  The regulators plan to publicize the material regularly to
enable class action lawyers to seek redress for injured investors.

They are hoping that the documents will provide a window into the
analysts' activities, and whether financial companies routinely used
favorable stock recommendations to win lucrative investment banking
business.

While loath to tip their hand, many regulators suggest action against
Wall Street firms will materialize in the near future.  The measure
would resemble the New York Attorney General Eliot Spitzer's probe into
and settlement with Merrill Lynch & Co. this past spring.

In fact, some regulators say they favor similar public releases of
potentially embarrassing material to enable class-action lawyers to
seek redress on behalf of injured investors.  They have plenty of
material to work from.

"We are still looking at thousands and thousands of pages of
documents," said Joseph Borg, President of the North American
Securities Administrators Association and Alabama's director of
securities.  "We could be seeing literally millions of pages."  Most of
the about 44 states involved in the Wall Street inquiry have formed
into teams, with each team focusing on a top investment bank.

Bear Stearns, for example, is being probed by a New Jersey regulator,
with support from Delaware, Hawaii, Maine, Pennsylvania and Vermont.
Lehman Brothers is being investigated by an Alabama regulator, with the
assistance of Georgia, Indiana and Mississippi.

A steering committee of a dozen or so states, chaired by California,
New York and New Jersey is overseeing the probe.  The regulators
dismiss the suggestion they are trying to beat the Securities and
Exchange Commission to the punch or that they want to impose industry
rules apart from the Commission.

Actually, said Tanya Solov, Illinois' director of Illinois' securities
department, "we are not engaged in a race with other regulators."    
"Rather, the states are holding regular teleconferences with the SEC,
NASD and NYSE," Joseph Borg said.


SLAVE REPARATIONS: About 60,000 Russians Get Compensation From Germany
----------------------------------------------------------------------
About 60,000 Russians have received compensation for forced and slave
labor under the Nazi regime, for a total of more than $57.1 million
(EUR58 million), the head of the reconciliation fund said, according to
a report by Associated Press Newswires.

Natalia Malysheva told ITAR-Tass news agency that about 500,000
applications under the fund had been filed this year, of which 190,000
had been evaluated.  Compensation has been denied by Germany in about
10 percent of the cases, she said.  The payments are being made in
installments, and those who worked in concentration camps as so-called
slave laborers are due to receive more than others who worked as forced
laborers under other circumstances.

German government and industry set up the $5 billion fund for former
Nazi laborers in 2000, under pressure from class actions, and most of
those expected to benefit are now living in central and eastern Europe.

Payments to victims in Russia have suffered repeated hang-ups,
including disputes over whether the payments would be taxed and delays
in getting lists of recipients.  Ms. Malysheva said the payments were
now "coming regularly; nobody holds back any money."


VIRGINIA: City, Residents Ask Assistance From Court-Appointed Mediator
----------------------------------------------------------------------
The city of Portsmouth and the residents of Fairwood Homes are hoping a
court-appointed mediator will help resolve their legal dispute over
relocation assistance and other issues, involved in their class action,
The Virginian-Pilot and The Ledger-Star (Norfolk, Va.) report.

The city of Portsmouth and the Portsmouth Redevelopment and Housing
Authority filed a motion asking for a stay of proceedings while a
court-appointed magistrate judge helps mediate their settlement
efforts.  US District Judge Raymond Jackson entered the order, and a
hearing with the magistrate judge will be held very soon.

In late May, residents were given 30 days to vacate the housing complex
of Fairwood Homes.  The owners have allowed extension, however, with
the latest deadline being set for the end of the month.  Lawyers for
residents filed suit in June seeking financial relocation assistance
and unspecified punitive damages.  Lawyers also sought to force the
city to replace the blighted neighborhood with new housing that would
serve low-income residents.

The class action also names the owners of the complex, Portsmouth
Partners of Virginia, the city's Industrial Development Authority, and
Empowerment 2010, the nonprofit agency that oversees spending of the
federal grant awarded to Portsmouth and Norfolk.

Samuel Meekins, an attorney for the owners, said he objects to the
mediation.  "Relocation obligations are municipal obligations, and
making us engage in settlement obligations to pay someone else's debt
is not going to work," he said.  The US Department of Housing and Urban
Assistance determined that residents are entitled to such assistance.

The lawsuit was filed as a class action that could potentially include
residents back to the mid-1990s, when the city purchased a portion of
Fairwood Homes for redevelopment.  How many residents would be included
is one of the issues that would need to be negotiated, said Julie
Nepveu, an attorney with the Washington-based Lawyers' Committee
for Civil Rights Under Law.  The attorney speculated it could be from
600 to 1,100 families.


TERAYON COMMUNICATIONS: CA Court Refuses To Dismiss Securities Suit
-------------------------------------------------------------------
The United States District Court for the Northern District of
California refused to dismiss the consolidated securities class action
pending against Terayon Communication Systems, Inc.

Several suits were filed in April 2000 against the Company and certain
of its officers and directors, on behalf of purchasers of the Company's
securities between February 2, 2000 and April 11, 2000.  The suits
alleged that the defendants had violated the federal securities laws by
issuing materially false and misleading statements and failing to
disclose material information regarding the Company's technology.  

These suits were later consolidated, with the consolidated suit
containing factual allegations nearly identical to those in
the original lawsuits, but asserting claims on behalf of purchasers of
the Company's securities between November 15, 1999 and April 11, 2000.

In October, 2000, defendants moved to dismiss the consolidated suit.  
In March 2001, after defendants' motion had been fully briefed and
argued, the court issued an order granting in part defendants' motion
and giving plaintiffs leave to file an amended complaint.

In April 2001, plaintiffs filed their first amended consolidated class
action complaint.  The defendants again moved to dismiss this new
complaint.  On March 29, 2002, the court denied the defendants' motion
to dismiss. The parties are now in the discovery process.


The Company considers the lawsuits to be without merit and intends to
defend vigorously against these allegations.  However, the litigation
could prove to be costly and time consuming to defend, and there can be
no assurances about the eventual outcome.


WELLS FARGO: Mexican Group Calls For Bank Boycott Over Back-Wages Claim
-----------------------------------------------------------------------
A coalition of Mexican immigrants has called for a boycott of Wells
Fargo banks to support Mexican laborers who claim money deducted from
the wages they earned working on American farms and railroads during
World War II, is still owed them, reports Associated Press Newswires.

Members of the Council of Presidents of Mexican Federations of Los
Angeles also protested in front of a Wells Fargo bank in downtown Los
Angeles recently.  They urged people not to sign for new accounts with
the bank, and to close current accounts.

Wells Fargo, responsible for transferring workers' withheld wages to a
Mexican bank, could owe the workers millions in back wages, said
Guadalupe Gomez, council president.  "They need to tell the
people where their money went; we need to get the documentation," said
Martha Jimenez, a spokeswoman for one of the groups, the Zacatecas
Federation.

Wells Fargo spokesman Larry Haeg said, "We believe we completely
fulfilled our responsibility to transfer the money.  We never held the
savings account or checks of any individual braceros."

The workers include more than 300,000 Mexicans who came to the United
States between 1942 and 1949 to harvest crops and maintain railroad
tracks as guest workers.  Called "braceros" after the Spanish word for
arm, they came to this country under an agreement between the United
States and Mexico, aimed at filling labor shortages caused by World War
II.

Under the agreement, 10 percent of each worker's wages was to be
withheld and transferred, via US and Mexican banks, into individual
savings funds set up for each bracero.  However, many of the braceros
say they never received that money when they returned to Mexico.

The workers filed a class action in San Francisco in March 2001,
seeking repayment of the money deducted from their paychecks, plus
interest.  Although the lawsuit did not specify the amount, advocates
estimated it at $500 million.

The council of presidents launched the boycott by setting fire to Wells
Fargo debit cards in front of the Mexican consulate in Los Angeles
after hearing that a judge rejected the lawsuit by the workers.

US District Court Judge Charles Breyer wrote that he did "not doubt
that many braceros never received the savings fund withholdings to
which they were entitled.  The court is sympathetic to the braceros'
situation."

However, Judge Breyer concluded in the ruling that the braceros were
not entitled to any relief from the Mexican or American governments, or
from Wells Fargo, in a United States court of law.

                     New Securities Fraud Cases

FIRST HORIZON: Milberg Weiss Commences Securities Fraud Suit in N.D. GA
-----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of First Horizon
Pharmaceutical Corporation (Nasdaq: FHRX) between April 24, 2002
through July 2, 2002, inclusive.

The action is pending in the United States District Court, Northern
District of Georgia against the Company and:

     (1) Mahendra G. Shah,

     (2) John N. Kapoor,

     (3) Balaji Venkataraman,

     (4) Jon S. Saxe,

     (5) Pierre Lapalme,

     (6) Jerry N. Ellis,

     (7) Banc of America Securities LLC,

     (8) JP Morgan Thomas Weisel Partners LLC, and

     (9) Lasalle Capital Markets

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, and sections 11, 12(a)(2) and 15 of the Securities Act of
1933, by issuing a series of materially false and misleading statements
to the market.

On April 24, 2002, First Horizon completed a public offering of
securities, selling 6.5 million shares of common stock at an offering
price of $21.75 per share, pursuant to a Prospectus declared effective
by the SEC on April 18, 2002.

The Company failed to disclose material information in the Prospectus
relating to two products, Tanafed Suspension (a pediatric liquid and
allergy product) and Prenate GT (a prescription prenatal vitamin).  The
Company touted the market for these products highly in its Prospectus.

However, the market for these products was severely declining and
defendants had flooded wholesalers with Prenate GT inventory in the
first quarter of 2002 in order to report strong sales prior to the
secondary offering.

Belatedly, defendants disclosed that due to price erosion arising from
generic competition, First Horizon's products had not been widely
accepted by the market. In addition, sales growth from the Company's
newly acquired "Sular" drug line had failed to yield strong results,
and a promised redeployment of First Horizon's sales force similarly
failed to boost First Horizon's bottom line.

As a result of the Company's misrepresentations, First Horizon
investors have sustained tremendous losses, and stand to lose much more
as the Company's financial condition continues to decline.  

On July 2, 2002, the Company shocked the market by revealing that for
the second quarter of 2002, the Company expected to report revenues of
between $25 and $26 million, and earnings per share between $0.00 and
$0.02, excluding a $2.2 million debt write-off.

For the full year, First Horizon revised its guidance to $0.34 a share,
a far cry from its earlier guidance of $0.56 to $0.57 a share. A July
2, 2002 press release attributed the massive shortfall mainly to
"greater than expected erosion of sales in the second quarter" of
Tanafed and Prenate GT, as well as "distraction" arising out of a sales
force "realignment."

In response to the Company's devastating news concerning the lack of
acceptance of two of the Company's key products, First Horizon's stock
price plummeted by an astonishing 81% or by $14.74 to $3.51, on volumes
of 16.4 million shares, about 30 times the daily average.

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 or contact Kenneth Vianale or Tara Isaacson by
Mail: The Plaza 5355 Town Center Road Suite 900 Boca Raton, FL 33486 by
Phone: 561-361-5000 by E-mail: FirstHorizonCase@milbergNY.com or visit
the firm's Website: http://www.milberg.com  


RIVERSTONE NETWORKS: Glancy & Binkow Lodges Securities Suit in N.D. CA
----------------------------------------------------------------------
Glancy & Binkow LLP initiated a securities class action in the United
States District Court for the Northern District of California on behalf
of all persons who purchased securities of Riverstone Networks, Inc.
(Nasdaq:RSTN) between August 10, 2001 and June 5, 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 financial condition and sales caused its
stock price to become artificially inflated, inflicting damages on
investors.

The suit alleges that defendants misled the investing community
concerning the true effect that the downturn in telecom spending had
upon the Company and its financial viability. On February 28, 2002, the
Company shocked the market when it announced:

     (1) revenues for the fourth quarter ending March 2, 2002, would be
         approximately $50 to $54 million, instead of the projected $65
         million;

     (2) that the Company would reduce its expenses, including
         workforce reductions, by 10 percent;

     (3) that it expects to take charges in the fourth quarter totaling
         approximately $26 million to $30 million, consisting of asset
         impairments, write downs in equity investments, charges
         related to discontinued products and costs associated with
         workforce reductions; and

     (4) the Days Sales Outstanding, an important financial indicator
         showing the average time it takes customers to pay their bills
         increased to 75.7 days.

As a direct result, the price of Riverstone stock dropped from $7.59 to
$3.82, a 49% drop from the class period high of $21.10. On June 5,
2002, Riverstone announced a further decline in sales of 40%. This
information further depressed Riverstone common stock, which sank an
additional 21%, from $3.30 per share on June 5, 2002 to $2.61 on June
6, 2002.

For more details, contact Michael Goldberg by Mail: 1801 Avenue of the
Stars, Suite 311, Los Angeles, California 90067 by Phone: 310-201-9161
or 888-773-9224 or by E-mail: info@glancylaw.com.


SALOMON SMITH: Beatie Osborn Commences Securities Fraud Suit in S.D. NY
-----------------------------------------------------------------------
Beatie and Osborn LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of individuals who purchased Rhythms NetConnections, Inc. (NYSE: RTHM)
common stock during the period between April 7, 1999 and August 2,
2001.

The complaint alleges that Merrill Lynch & Co., Inc., Salomon Smith
Barney Inc., Jack Grubman, Mark Kastan and Kenneth Hoexter urged
investors to purchase Rhythms stock when defendants knew or should have
known that such purchases were not a good investment.

The complaint alleges that defendants issued "Buy" recommendations
about Rhythms without any rational economic basis, failed to disclose
that they were issuing "Buy" recommendations to obtain investment
banking business and concealed significant, material conflicts of
interests that prevented them from providing independent objective
analysis.

For more details, contact Eduard Korsinsky or Benjamin D. Coleman by
Mail: 521 Fifth Avenue, 34th Floor New York, New York 10175 by Phone:
800-891-6305 by Fax: 212-888-9664 by E-mail:
clientrelations@bandolaw.com or visit the firm's Website:
http://www.bandolaw.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
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Beard Group, Inc., Washington, D.C.  Enid Sterling, Aurora Fatima
Antonio and Lyndsey Resnick, Editors.

Copyright 2002.  All rights reserved.  ISSN 1525-2272.

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