CAR_Public/030129.mbx               C L A S S   A C T I O N   R E P O R T E R

             Wednesday, January 28, 2003, Vol. 5, No. 20

                           Headlines

ARIBA INC.: SEC Starts Informal Investigation Over Earnings Restatement
CABLE & WIRELESS: Faces New Securities Fraud Suit From UK, US Investors
CANADA: Families Submit Claims V. Ontario Govt For Autistic Children
FASTFOOD LITIGATION: US Bill To Be Filed Seeking To Deter Obesity Suits
FIESTA AIR: Reaches Pact Over Deceptive Air Conditioner Sales in Texas

FUL-FLAV-R FOODS: Recalls Red Bell Pepper Product Due To Botulism Risk
GEORGIA: Predatory Lending Bill Proposed To Stop GA Insurers' Flight
HERBSLAND INC.: Recalls Ancom Heart Drug, Which Might Pose Health Risks
ILLINOIS: Morgan Stanley, Plaintiffs To Settle IL Yield-Burning Lawsuit
INDIAN FUNDS: Ex-Indian Affairs Head Accused of Deleting Suit Records

MARTHA STEWART: Lost $400 Million Due To Imclone Stock Trade Litigation
MASSACHUSETTS: Mobile Home Tenants Ask For Revision of Rent Rise Order
MCSi INC.: Investors File Three Securities Fraud Lawsuits in S.D. Ohio
MEAD JOHNSON: Recalls 505 Cases of Enfacare Formula over Contamination
MICROSOFT CORPORATION: Court Throws Out Five Consumer Antitrust Suits

NEW YORK: Parents Commence Lawsuit Over Denial of Rights in School Law
PHARMACEUTICAL FIRMS: Aventis, Andrx Settle Cardizem Antitrust Charges
TERRORIST ATTACK: Victims' Families Sue, Labeling Fund Head As "Unfair"
TRANSKARYOTIC THERAPIES: Investors File Securities Lawsuits in MA Court
UNITED MEDICAL: Doctors To File Suit Over Additional Insurance Premium

*Pension Rules Raise Red Flags, Older Workers See Major Benefits Loss


                 Meetings, Conferences & Seminars

* Scheduled Events for Class Action Professionals
* Online Teleconferences


                     New Security Fraud Cases

AMERICREDIT CORPORATION: Milberg Weiss Commences Securities Suit in TX
ARIBA INC.: Schiffrin & Barroway Files Securities Fraud Suit in N.D. CA
ARIBA INC.: Cauley Geller Commences Securities Fraud Lawsuit in N.D. CA
ARIBA INC.: Rabin & Peckel Launches Securities Fraud Lawsuit in N.D. CA
LEAP WIRELESS: Bernstein Liebhard Commences Securities Suit in S.D. CA

MCSi INC.: Milberg Weiss Commences Securities Fraud Suit in S.D. Ohio
MERRILL LYNCH: Wolf Haldenstein Commences Securities Lawsuit in S.D. NY
MOTOROLA INC.: Marc Henzel Commences Securities Fraud Suit in N.D. IL
ROBERTSON STEPHENS: Pomerantz Haudek Lodges Securities Suit in S.D. NY
SPIEGEL INC.: Bernstein Liebhard Commences Securities Fraud Suit in IL

TRANSKARYOTIC THERAPIES: Shapiro Haber Commences Securities Suit in MA
TRANSKARYOTIC THERAPIES: Charles Piven Commences Securities Suit in MA
TRANSKARYOTIC THERAPIES: Wechsler Harwood Files Securities Suit in MA
TRANSKARYOTIC THERAPIES: Cohen Milstein Commences Securities Suit in MA

                              *********

ARIBA INC.: SEC Starts Informal Investigation Over Earnings Restatement
-----------------------------------------------------------------------
The United States Securities and Exchange Commission (SEC) commenced an
informal investigation of e-procurement and spend management company
Ariba, Inc, following reports that the Company will have to restate its
fiscal 2000 figures and 10 quarters of results, Computerwire reports.

Ariba hopes to complete its own figures inquiry by the end of February
and warns that this could lead to further restatements.  The
restatements involve payments and air travel provided by chairman and
co-founder Keith Krach that should have gone through the company's
books, though this would have increased its expenses.  Stock options
issued to executives at companies acquired by Ariba were also excluded
from the accounts, Computerwire states.  The consequences could be
enormous because Ariba will have to battle a delisting by Nasdaq
because of late filing of its annual 10K filing, and inevitably faces a
class action over the restatement.

All this is a dangerous distraction for a software company fighting to
win business from customers reluctant to spend.  It did however manage
to start its financial year with modest growth.  In the first quarter
to December 31, the net loss was $55.9 million, down from a restated
loss of $157.7 million on revenue up 12.3% at $62 million.


CABLE & WIRELESS: Faces New Securities Fraud Suit From UK, US Investors
-----------------------------------------------------------------------
Cable & Wireless PLC faces a possible securities class action filed by
institutional investors seeking up to $3 billion (GBP1.8 billion) in
damages, FT.com reports.  The suit will be brought by prominent
American securities fraud law firm Milberg Weiss Bershad Hynes &
Lerach, and prominent UK firm Class Law in the United States District
Court in New York.

Already, the lawyers say they have signed up six undisclosed US
institutional investors and are seeking the support of large UK
shareholders.  Class Law also indicated it may later widen the lawsuit
to take in KMPG, C&W's auditors, FT.com reports.

Stephen Alexander, partner at Class Law, told FT.com the case could set
a precedent if UK shareholders join US class actions.  He said that as
the US investors were seeking damages for losses on shares in C&W
bought in the London market, UK institutions could join.  Late last
year, Philadelphia law firm Schiffrin & Barroway lodged a similar
lawsuit in Virginia.

The new class action alleges C&W made false statements about the
company's finances by failing to disclose a potential tax liability of
1.5B resulting from the sale three years ago of its One2One mobile arm
to Deutsche Telekom, FT.com reports.  The action also alleges C&W had
"billions of dollars worth of property lease commitments that had not
been disclosed."  Last November C&W made the surprise disclosure of
property lease commitments totalling GBP2.2 billion.

The Company said on Monday that it understood its "obligations to
shareholders" and it would defend its position "vigorously", FT.com
reports.


CANADA: Families Submit Claims V. Ontario Govt For Autistic Children
--------------------------------------------------------------------
A group of 50 families representing Ontario families of children with
Autism Spectrum Disorder announced today that they have submitted 50
individual claims to the Ontario Human Rights Commission against the
Ontario Government.  The families are taking this action in an attempt
to end the systemic discrimination that denies Ontario children
necessary medical intervention.  Although the Ontario government
recognizes the need for intensive behavioral intervention (IBI/ABA), it
refuses to fund the treatment for children over the age of six.  The
parents insist that the treatment be made available to all the children
who need it, regardless of age.

This concerted action by families of children with autism joins legal
action in several Canadian provinces.  In October 2002, the British
Columbia Court of Appeals ruled against the BC government and
established a clear precedent that it is discriminatory under the
Canadian Charter of Rights and Freedoms for a provincial government to
deny medically necessary fully funded IBI for children with Autistic
Spectrum Disorder for all ages for as long as deemed beneficial by the
child's physician.

The Newfoundland Human Rights Commission recently directed the
Newfoundland Health department to eliminate all waiting lists for
intensive intervention for young children with autism.  A class action
is ongoing in Quebec that is not only demanding that IBI be made
available to all children with autism spectrum disorders but also
requesting compensation for children with autism who have been
condemned to a severe lifelong handicap because they have been denied
medically necessary early intervention.

Many of the provinces allegedly falsely claim they cannot afford to
fund the treatment, which costs in range from $25,000 to $50,000 per
year over several years. Although the cost is high, there is current
research exploring how to deliver the treatment in the most cost-
efficient manner while maintaining the positive results.  However, the
cost of intensive early intervention pales when compared to the average
multi-million dollar lifelong cost to governments for supporting a
person with autism who has not benefited from effective early
treatment.  Cost-benefit studies have demonstrated that if all children
with autism were provided with early intensive behavioral intervention,
the current annual cost in Canada of providing services to people with
autism, which is estimated at $3 billion, would be cut in half.

It is estimated that in Canada, there are currently about 100,000
people with autism spectrum disorders.  Over the last decade there has
been an increase of epidemic proportions in the number of new cases
with about a 60% increase in Canadian reported cases in the past few
years.  In California, autism now represents 40% of all children with
developmental disabilities entering the California service system.
This means that the cost of autism conditions in Canada will rise to
staggering levels unless accurate early diagnosis, effective treatment
and adequate supports are provided to all people with autism conditions
on a universal and accessible basis.

For more information, contact Laurie Turza, Autism Society Canada,
Executive Director by Phone: (519) 942-8720 or (866) 874-3334 by E-
mail: asc@on.aibn.com or contact Lisa Simmermon, President, Autism
Society Canada, by Phone: (306) 545-0966 or by E-mail:
simmermon@accesscomm.ca or contact Peter Zwack, Vice President, Autism
Society Canada, by Phone: (514) 987-3000 ext 3304 or by E-mail:
zwack.peter@uqam.ca


FASTFOOD LITIGATION: US Bill To Be Filed Seeking To Deter Obesity Suits
-----------------------------------------------------------------------
United States Representative Ric Keller, R-Fla., intends to file the
Personal Responsibility in Food Consumption Act next week in
Washington, in an attempt to protect restaurants and food manufacturers
from lawsuits similar to the obesity suit filed against McDonald's
Corporation, the Associated Press reports.

The bill followed New York Federal Judge Robert Sweet's ruling
rejecting a class action blaming McDonald's for children's health
problems.  The judge ruled that the plaintiffs failed to show the fast-
food chain's products "involve a danger that is not within the common
knowledge of consumers."

"We believe there should be common sense in a food court, not blaming
other people in a legal court whenever there is an excessive
consumption of fast food," Rep. Keller said at a news conference at his
Orlando office, according to AP.  "We think that most people understand
that it's common sense that if you eat unlimited amounts of supersize
fries and milkshakes and Big Macs . that can possibly lead to obesity
and things like diabetes, cardiovascular disease."

Rep. Keller added that the bill won't stop lawsuits in cases where
restaurants or food manufacturers failed to comply with regulatory
requirements and caused illnesses such E. coli.  US Senator Mitch
McConnell, R-Ky., plans to file a similar bill in the Senate.

The attorney representing the plaintiffs in the lawsuit, Samuel Hirsch,
didn't return a phone call to his New York office seeking comment on
the proposed legislation, AP states. He has said he plans to amend the
lawsuit and refile it in a month.

Similar lawsuits have been filed around the nation.  Rep. Keller said
such lawsuits set dangerous precedents. "Essentially it would convert
the 18-year-old kids who work in places like McDonald's into bartenders
who would have to look at someone like me and say, 'Sorry congressman,
I'm going to have to cut you off. I can't give you that hot apple pie.
You've had enough. Look at you,'" Rep. Keller, who packs around 210
pounds on his 5-8 frame, told AP.  "It's an issue that has put the
restaurant industry right in the crosshairs of the leading trial
lawyers in this country."

A spokesman for the Association of Trial Lawyers of America in
Washington didn't return two phone calls, AP states.


FIESTA AIR: Reaches Pact Over Deceptive Air Conditioner Sales in Texas
----------------------------------------------------------------------
Texas' Attorney General reached an agreement that could benefit
hundreds of consumers affected by the deceptive trade practices of
Fiesta Air Conditioning and Heating, Inc.  The now-defunct Dallas-based
company sold costly central air conditioning units to hundreds of
Texans in 1999.  Under the terms of the plan announced today, several
benefits are available for eligible consumers who purchased units from
the company and who file written complaints within the next 90 days.

Fiesta Air Conditioning and Heating operated primarily in Dallas and
San Antonio, through a team of door-to-door sales agents, solicited
consumers in their homes.  The business devoted a large proportion of
its efforts towards Hispanic-surnamed families and negotiated sales in
Spanish.  Each air conditioning installation contract cost consumers
several thousands of dollars.

Worry Free Service is a financial services company based in Kansas
City, Missouri that provided financing for many of the units.  The
agreement announced today does not include other financing companies
which were also involved.

An investigation by the Office of the Attorney General revealed several
violations committed by Fiesta Air Conditioning and Heating during the
time it operated.  A significant number of consumers reported that the
air conditioning units, because of poor installation, did not work
properly or at all.  In many cases the installations were either not
fully completed or were completed but not inspected or approved by
municipal authorities, leaving them unusable.

For every former Fiesta client whose unit was financed by Worry Free
who files a complaint in a timely manner, Worry Free Service has agreed
to send out a licensed person to inspect that consumer's unit at no
charge.  When necessary, the company will offer to make repairs to
consumers' homes as a result of poor installation, and it will ensure
that the units are properly installed and in working order.
Furthermore, Worry Free Service will also offer to exchange units that
are either under- or over-sized.

The company has also agreed to renegotiate contracts signed with Fiesta
Air Conditioning and Heating that are deemed unreasonable.  If it is
determined that a consumer was overcharged by Fiesta Air Conditioning
and Heating, they will be eligible for a partial refund.  The company
will also review complaints filed by consumers who believe they were
charged an excessive interest rate and will lower the rate if
necessary.

To be eligible, consumers must file complaints with the Office of the
Attorney General, no later than April 24, 2003.  For more information,
contact the Attorney General by Phone: 1-800-252-8011 or visit the
Website: http://www.oag.state.tx.us.


FUL-FLAV-R FOODS: Recalls Red Bell Pepper Product Due To Botulism Risk
----------------------------------------------------------------------
Ful-Flav-R Foods recalled Ful-Flav-R Food brand Diced Red Bell Peppers
because the product may pose a risk of botulism, according to State
Health Director Diana M. Bont , R.N., Dr.P.H.  No illnesses associated
with the product, which is being voluntarily recalled by the
manufacturer, have been reported.

The recall involves approximately 700 cases of the product packaged in
6 pound, 6 ounce cans with production code "APR04/RB291" on the lids.
Customers who have purchased the product should immediately return it
to the distributor or to Ful-Flav-R Food Products Company.

This product was distributed to schools, hospitals, restaurants,
delicatessens and cafeterias throughout California.  The company has
notified the distributors of the product recall.  No other products
from Ful-Flav-R Food Products Company are involved in the recall.

This acidified food product is required to have a pH level below 4.6 to
inhibit the growth of the bacteria responsible for producing the toxin.
The firm has found that some of the product packed under this code has
a pH above 4.6 and was inadequately acidified.

Botulism toxin, which cannot be detected by sight, taste or smell, can
cause severe illnesses, including double vision, swallowing
difficulties, weakness, vertigo and breathing difficulty.  Consumers
should seek immediate medical care if they develop these symptoms.

For more details, contact the Company by Phone: (510) 339-9618 or
(408) 776-7735


GEORGIA: Predatory Lending Bill Proposed To Stop GA Insurers' Flight
--------------------------------------------------------------------
Republican senators wrote a new predatory lending bill for the state of
Georgia that will keep lenders from fleeing the state's mortgage
industry, the Associated Press reports.  Under the proposal, borrowers
are prevented from suing those who bought investments that included a
loan that violated the law, so only the original lender would be
liable.  Loans obtained through the Federal Housing Administration or
the Veterans Administration would also be exempt from the law.

An earlier Class Action Reporter story states that the Georgia Fair
Lending Act already has prompted 26 lenders to pull out of the state.
With Standard & Poor having decided to cease rating investments covered
under the law, it is believed many banks may follow.  The law was
approved last April and applies to home loans of less than $322,700.
The Act protects borrowers from exorbitant terms, including prepayment
penalties and many fees on high- interest loans.  Other states have
predatory lending laws, but Georgia's is unique in allowing borrowers
to seek punitive damages from lenders and anyone down the financial
chain who bought the loan or a security that covers the loan.

Banks or other institutions that offer home loans often sell them to
large companies like Freddie Mac and Fannie Mae, which often bundle
groups of loans together and sell them on the open market like bonds.
Investors decide which ones to buy based on how agencies like Standard
& Poor's rate them.

"Predatory lenders and banks have concocted a campaign of
disinformation and distortion to get the Georgia General Assembly to
gut the Fair Lending Act," Sen. Vincent Fort, D-Atlanta, who pushed for
the Georgia Fair Lending Act told AP.

"Every individual that is truly knowledgeable of the mortgage industry
understands the true crisis we are in," said Sen. Casey Cagle, the
bill's sponsor.  Sen. maintains his changes to the bill will still
leave Georgia with the strongest predatory lending law in the nation
and will protect homebuyers from predatory lenders.  The law, approved
last April, applies to home loans of less than $322,700.  It protects
borrowers from exorbitant terms, including prepayment penalties and
other fees on high-interest loans.

Other states have predatory lending laws, but Georgia is unique in
allowing borrowers to seek punitive damages from lenders and anyone
down the financial chain who bought the loan or a security that covers
the loan, AP states.

Another part of Sen. Cagle's bill drawing criticism is assignee
liability -- the provision that allows cheated borrowers to hold the
current holder of their mortgage liable if the loan is found to be
illegal.  Under the law, almost everyone involved in the lending
process -- bankers, brokers and anyone buying the right to collect
payments -- would be liable if the loan is found to be predatory. There
is no limit to how much could be collected in a class action lawsuit.

On Friday, Standard & Poor's will stop rating Georgia mortgage-backed
securities that include loans covered by the law.  In turn, fewer
companies would buy mortgages in the state and there will be less money
to loan, Sen. Cagle told AP.  The Standard & Poor's decision to stop
rating mortgage-backed securities would affect about 15 percent of
Georgia mortgages that are bundled and sold to investors.


HERBSLAND INC.: Recalls Ancom Heart Drug, Which Might Pose Health Risks
-----------------------------------------------------------------------
Herbsland Inc. is recalling all 100 tablet bottles of Ancom Anti-
Hypertensive Compound Tablets, an unapproved new drug labeled to
contain several prescription drug ingredients, including reserpine,
diazepam, promethiazine, and hydrochlorothiazide.  The sale of a
product with this combination of ingredients poses possible serious
health risks including sedation, depression, and potentially life-
threatening abnormalities of the blood.  This recall includes all lot
codes of the product remaining on the market.

Ancom Tablets were sold without prescriptions to consumers through
distributors and retail stores located in the New York City
metropolitan area, specifically Manhattan, Brooklyn, and Queens.
Nationwide sales are also possible as this product was sold via the
Internet.

Ancom Tablets are labeled for anti-hypertensive use and are packaged in
white plastic bottles of 100 tablets bearing blue and white lettered
labeling.  Each bottle is sold in an outer cardboard holding carton.
Both the carton and immediate container label bear the product name as
Ancom tablets, Anti-hypertensive Compound, and display the
manufacture's name as Shanghai Pharmaceutical Industry Corp., Shanghai,
China.  The labeling also bears Chinese markings, which appear to be
dual declarations.  The holding carton is white with a pink and blue
vertical stripe bearing blue and white lettering.  The product carton
also includes a pre-printed insert labeled with an ingredient statement
and directions for use.

No illnesses have been reported to date.  Consumers who have used this
product and are experiencing any adverse reactions should seek advice
from their physician for appropriate evaluation and treatment of their
hypertension.

For more details, contact the Company by Phone: 1-917-480-9170 or the
United States Food and Drug Administration (FDA) by Mail: MedWatch, HF-
2, FDA, 5600 Fishers Lane, Rockville, MD 20852-9787 by Phone:
1-800-FDA-1088, by Fax: 1-800-FDA-0178 or visit the MedWatch website:
http://www.fda.gov/medwatch.


ILLINOIS: Morgan Stanley, Plaintiffs To Settle IL Yield-Burning Lawsuit
-----------------------------------------------------------------------
One of a half-dozen lawsuits filed against securities firms, alleging
they overcharged local Illinois governments for US Treasury securities
used in bond refundings is on its way to being settled, an attorney
told a trial court judge on Monday, Reuters reports.

The suit is one of the six suits filed in Cook County Circuit Court
that focus on the so-called practice of yield burning, which occurs
when securities firms inflate the price of Treasuries needed for bond
refundings in order to comply with tax regulations, while making fat
profits for themselves.

Some of the suits were dismissed from state trial courts for being
filed too late - several years after the bond transactions occurred.
Last year, a three-judge panel from the Illinois Appeals court revived
the suits, ruling that a five-year statute of limitations under the
state's securities act did not apply to the cases, which were filed
several years after the bond transactions occurred.  The defendants
appealed to the state Supreme Court, but they refused to hear the suit.

Clint Krislov, an attorney who filed the lawsuits on behalf of
taxpayers, told Reuters an agreement in principle had been reached with
Morgan Stanley MWD.N, the lead underwriter for an Illinois Health
Facilities Authority $49.9 million advanced refunding bond issue from
1993.  Mr. Krislov added that he believed the case will be settled in a
week or so.  An attorney for Morgan Stanley confirmed that discussions
to settle the case were ongoing.

Mr. Krislov told Reuters that since the appellate court ruling, he has
been trying to settle the cases by asking the securities firms to pay
twice the amount of the overcharge, with half of the money going to the
government that sold the bonds and the other half to his law firm.

Attorneys for the securities firms, who crowded Schiller's courtroom on
Monday, made it clear they were still fighting the lawsuits on behalf
of their clients.  In one case that targets Bear, Stearns & Co. BSC.N
for $249,024 in alleged overcharges for a 1992 $159.8 million Cook
County bond refunding, the county was attempting to block the lawsuit,
Reuters reports.

Other pending yield-burning lawsuits were filed against Prudential
Securities PRU.N and Everen Securities WB.N over Chicago bond
refundings, William Blair & Co. over a DuPage County bond refunding,
Banc One Capital Markets ONE.N over a LaGrange Park Public Library
District bond refunding, and PaineWebber Group UBSZn.VX over an
Illinois bond refunding.  Mr. Krislov said he planned to pursue the
Banc One and Blair cases as class-action lawsuits.


INDIAN FUNDS: Ex-Indian Affairs Head Accused of Deleting Suit Records
---------------------------------------------------------------------
Court-appointed special master for the Indian funds lawsuit Alan
Balaran said that former head of Indian affairs at the United States
Interior Department Neal McCaleb broke federal law by deleting months
of records related to the suit, the Austin American Statesman reports.
The suit charges the government with losing billions of dollars in
American Indians' money.

Last December, Mr. McCaleb said in a deposition he didn't know he was
supposed to be storing copies of his e-mail and he thought his
assistant was doing it. Mr. Balaran refuted this, saying Mr. McCaleb's
story is unbelievable, citing numerous written directives and a pair of
meetings in which Mr. McCaleb was instructed by Interior official to
keep the electronic correspondence.

"What began as an inquiry into a possible error in judgment resulted in
the discovery that the most senior official of the Bureau of Indian
Affairs . violated court orders and federal law by destroying
individual Indian trust records with impunity," Mr. Balaran wrote,
according to the Austin American Statesman.

The documents in question relate to a 6-year-old class-action lawsuit
on behalf of 350,000 Indian landowners which claims the government
mismanaged as much as $137 billion in oil, gas and timber royalties
from Indian land since 1887.  The documents include daily spreadsheets
indicating payments from oil, gas and timber leases, the Austin
American Statesman.

In response to the report, Interior Department spokesman Dan DuBray
referred to a statement McCaleb made last October that the e-mail
deletions were a mistake, and that McCaleb notified the court as soon
as they came to his attention, the Austin American Statesman reports.
The Interior Department has all along disputed the $137 billion figure,
but also has acknowledged mishandling of Indian claims and records over
the years.

Mr. Balaran filed his report with US District Judge Royce Lamberth,
held Mr. McCaleb and Interior Secretary Gale Norton in contempt of
court for failing to comply with his order to fix the trust management
accounts last September.  Mr. McCaleb retired from the Interior
Department at the end of last year, saying he took Judge Lamberth's
contempt citation personally and was hurt by it, the Austin American
Statesman reports.

Dennis Gingold, the attorney for the Indian plaintiffs, said that the
investigation confirmed that Mr. McCaleb "knowingly destroyed federal
records . That is a crime."  He added that Mr. McCaleb lied under oath,
both in his deposition and in an affidavit he signed.


MARTHA STEWART: Lost $400 Million Due To Imclone Stock Trade Litigation
-----------------------------------------------------------------------
Homemaking celebrity Martha Stewart says she lost $400 million because
of the federal probe into her ImClone stock trade, The New Yorker
magazine states.  The interview with writer Jeffrey Toobin is Ms.
Stewart's first interview since the debacle, which started in June.

Martha Stewart and her company, Martha Stewart Living Omnimedia, face
increasing pressure after federal investigators probed Ms. Stewart's
sale of 3,928 Imclone shares on December 27,2001, the day before the
Food and Drug Administration announced it would not review the biotech
company's application for a promising cancer drug called Erbitux.  The
stock subsequently plummeted.  Ms. Stewart is a friend of Sam Waksal, a
co-founder of ImClone.  She has maintained her innocence, saying she
had an agreement with her broker to sell the stock if it dropped below
$60, the Associated Press states.

She told Mr. Toobin that the losses have been mostly in the decline in
value of her more than 30 million shares in her multimedia company, but
also in legal fees and lost business opportunities.  Ms. Stewart noted
that her image has suffered and said she's "puzzled by the public's
delight" in her troubles.

"My business is about homemaking," she told the New Yorker. "And that I
have been turned into or vilified openly as something other than what I
really am has been really confusing . It's sort of the American way to
go up and down the ladder, maybe several times in a lifetime.  And I've
had a real long up . And now I've had a long way down."

Ms. Stewart, chairman and chief executive of Martha Stewart Living
Omnimedia, discussed her sentiments about the probe and the public
reaction.  She would not speak on the record about the facts of the
case and a magazine spokeswoman declined to say whether Stewart's
lawyer was present.

In coming weeks, officials in the Justice Department and the Securities
and Exchange Commission will decide whether to charge Ms. Stewart with
securities law violations.  Ms. Stewart said she'd never leave her
company, and has been able to stay focused on her business.

"I'm real lucky, because I am able to sort of compartmentalize," she
said. "I can be concerned on one hand, and be productive on the other
hand . I can still sleep."


MASSACHUSETTS: Mobile Home Tenants Ask For Revision of Rent Rise Order
----------------------------------------------------------------------
Tenants at the Post Road Mobile Home Park received a letter last week
warning they might be evicted if they do not pay increased rents by the
date specified in the letter, the Telegram & Gazette (Worcester, MA)
reports.  Tenant Denise Fortin recently filed a class action against
the Mobile Park and its owners.

David W. Adams, a Brookline lawyer who represents the tenants
association, said the letter instructed the tenants to pay a $496 rent,
which represents a $127 increase.  The letter also warned of a late-
payment fee that would up the rent to $556.

Earlier in the month, Middlesex Superior Court Judge Elizabeth M. Fahey
declined to issue a preliminary injunction that would have halted the
34 percent increase in lot rents, instead ordering the rent increase to
be placed in escrow.  The money will remain in a separate interest-
bearing account until the judge makes a ruling.  Mr. Adams told his
clients to pay the $127 rent increase for this month.

Judge Fahey recently heard Mr. Adams' motion asking for clarification
on her previous ruling.  Mr. Adams said it was unclear what the judge
wanted the tenants to do and said he surmised that the judge thought
there was a single rent increase over the five-year lease period, which
is not the case.  The five-year leases, which were sent to tenants last
year call for an increase each year for a period of five years.  Judge
Fahey took Mr. Adams' motion under advisement and will issue a ruling
soon.

In his motion, Mr. Adams also asked Judge Fahey to certify the case as
a class action and define who composes the class.  So far, Ms. Fortin
is the only tenant named in the lawsuit, but Mr. Adams said several
others are waiting to join it.


MCSi INC.: Investors File Three Securities Fraud Lawsuits in S.D. Ohio
----------------------------------------------------------------------
MCSi, Inc. (Nasdaq:MCSI) is building a defense against a putative class
action filed for violations of federal securities laws in the United
States District Court for the Southern District of Ohio, Western
Division. The complaint also names as defendants Michael E. Peppel,
Chief Executive Officer, President and Chairman of the Board and Ira H.
Stanley, its Chief Financial Officer and Vice-President.

Filed by three law firms, the named plaintiff is a single shareholder
who purports to represent a class of Company shareholders who purchased
Company securities between July 24, 2001 and February 26, 2002.  The
complaint alleges that during this seven-month period the Company "made
untrue statements of material fact and/or omitted to state material
facts necessary to make the statements not misleading . in an effort to
maintain artificially high market prices for MCSi's securities in
violation of (US securities law)."

The Company has retained the law firm of Willkie Farr & Gallagher to
respond to the complaint.  "MCSi strongly denies the allegations of
wrongdoing made in the lawsuit, and we intend to vigorously defend
ourselves against the claims made," Mr. Peppel said in a statement.


MEAD JOHNSON: Recalls 505 Cases of Enfacare Formula over Contamination
----------------------------------------------------------------------
Mead Johnson Nutritionals initiated a voluntary recall of 505 cases of
EnfaCare LIPIL 12.9 ounce powdered infant formula.  The cases and cans
are coded BME01, with an expiration date of January 1, 2004 (embossed
1JAN04). This voluntary recall is being initiated because the product
is contaminated with Enterobacter sakazakii (E. sakazakii).

E. sakazakii, commonly found in the environment, is a food-borne
pathogen that can, in rare cases, cause sepsis (bacteria in the blood),
meningitis (inflammation of the lining of the brain), or necrotizing
enterocolitis (severe intestinal infection) in newborn infants,
particularly premature infants, or infants with weakened immune
systems.  The Company is unaware of any reports of illness associated
with E. sakazakii as a result of feeding infants product from batch
BME01; however, product from batch BME01 should not be used.

EnfaCare LIPIL is a formula for infants with conditions such as
prematurity.  Five hundred five cases from this batch were shipped to
hospitals, retail stores and WIC clinics nationwide during December
2002.  No other batches of EnfaCare LIPIL are affected.

For more information, contact the Mead Johnson Consumer Resource Center
by Phone: 1-888-587-7275.


MICROSOFT CORPORATION: Court Throws Out Five Consumer Antitrust Suits
---------------------------------------------------------------------
United States Federal Judge J. Frederick Motz threw out five of the
consumer antitrust lawsuits filed against software giant Microsoft
Corporation, saying laws in the states where the suits were filed do
not allow consumers to collect damages from the Company unless they
purchased software directly from it, Reuters reports.

Judge Motz granted the Company's motion to dismiss the suits filed in
Connecticut, Kentucky, Maryland and Oklahoma.  The suits were filed
against the Company after the government filed a landmark antitrust
suit against the Company.  The suits allege that the Company:

     (1) abused its monopoly power to prevent competition in the market
         for personal computer operating systems,

     (2) leveraged its Windows monopoly to obtain monopolies in the
         markets for word processing and spreadsheet software and

     (3) used its monopoly positions in these markets to overcharge
         purchasers of Windows, Word, Excel and Office software.

Judge Motz said that state courts have ruled that so-called indirect
purchasers cannot collect damages.  Most consumers purchase Microsoft's
Windows operating system and its other software through retailers or
get it pre-installed on the computers they buy, Reuters states.  The
judge is overseeing many of the consumer lawsuits, as well as civil
cases filed by Sun Microsystems Inc., AOL Time Warner Inc. unit
Netscape Communications, Be Incorporated and Burst.com.

A settlement of the government suit was endorsed by US District Judge
Colleen Kollar-Kotelly in November, although Massachusetts and West
Virginia are appealing.


NEW YORK: Parents Commence Lawsuit Over Denial of Rights in School Law
----------------------------------------------------------------------
School systems in New York and Albany, NY faces a lawsuit filed by a
group of parents whose children attend poorly performing public
schools, alleging that the students have been denied the right to
transfer to better public schools or receive free tutoring as required
by the federal education reform law enacted last year, the Washington
Post reports.

The suit, filed in Manhattan State Court, is the first in the nation
brought under the No Child Left Behind Act, which imposes federally
mandated penalties on schools with persistently low standardized test
scores, according to education activists.

Last summer, the federal government estimated that 3.5 million children
attending 8,600 low-performing public schools across the country had
the right to choose another public school or free tutoring under the
law, the Washington Post reports.  While exact figures are unavailable,
school choice advocates said only a small fraction of eligible students
have exercised those options, which were envisioned as key elements of
the law.

"I've seen no state or local school district make a declaration that
they are not going to provide choice or supplemental services," Eugene
W. Hickok, undersecretary of education, who added that he did not know
the specifics of the New York case told the Washington Post.  "But I
have seen less than energetic implementation of the law."

The federal law requires schools that receive federal Title I funds and
fail to show improvement for two consecutive years - including the
years before the new law was enacted - to offer students the option of
transferring to better-performing schools.  If a school fails to
improve for three years, local school districts must offer tutoring or
other supplemental services, the Washington Post states.

Paul Houston, executive director of the American Association of School
Administrators, told the Post many school superintendents are still
unsure of their obligations under the new law.  "There is a lot of
confusion, a lot of frustration and a lot of a sense of not knowing
what it is they are supposed to do," he said.

David Chai, a spokesman for New York City Board of Education, told the
Post the school system last summer sent parents nearly 300,000 letters
in eight languages informing them of their right to transfers and
another 250,000 letters informing parents of the availability of
tutoring.  Still, he said, only 1,500 students requested transfers,
while another 20,000 are now receiving tutoring.

"There certainly hasn't been the kind of clear-cut communication that
is as extensive as it needs to be about this law," Jeanne Allen,
president of the Center for Education Reform, a Washington organization
that supports vouchers and other school choice options, told the Post.
"First, school districts tried to skirt their responsibility because
they didn't buy into it.  Now, it seems, they are trying to do the
least possible to comply."

Overall, 331 schools in New York City -- roughly a quarter of the
schools in the nation's largest system -- are designated as failing
under the law, according to the suit.  In Albany, the suit says, three
schools with a total of just more than 2,000 students are considered
failing.  Nationally, many education experts fear that a large share of
the nation's schools could be designated failing within several years,
and many will have to offer transfers and tutoring to students.

"These school districts, through their actions and inaction, have
denied hundreds of thousands of children these basic rights," Charlie
King, the New York attorney who filed the suit told the Post.  Mr. King
said he plans to amend the lawsuit to include parents from other
cities.


PHARMACEUTICAL FIRMS: Aventis, Andrx Settle Cardizem Antitrust Charges
----------------------------------------------------------------------
Pharmaceutical companies Aventis Pharmaceuticals and Andrx Corporation
agreed to settle for $80 million the lawsuit filed in United States
District Court in Detroit, alleging they conspired to keep a less
expensive, generic version of Cardizem CD, a blood pressure medication,
off the market.

The suit was commenced in May 2001, alleging that consumers paid too
much for Cardizem CD and its generic equivalents, because the two firms
worked for the delay of its cheaper competitors.  In 2001, Federal
Judge Nancy Edmunds ruled that the two firms violated antitrust laws by
delaying the less-expensive generic drug's marketing for 11 months, the
Associated Press reports.

States and consumers will share in the settlement, under which the
average consumer will be eligible to recover 20 percent of what he or
she spent on the drug over 14 months in 1998-99, as much as several
hundred dollars, New York Attorney General Elliot Spitzer, who handled
the case with state officials in Michigan with assistance from
officials in 27 other states, told AP.  The settlement will be shared
in this way:

     (1) $21 million of the settlement will go to consumers in every
         state, Puerto Rico and the District of Columbia,

     (2) $30 million will go to insurance companies and other third-
         party payers and $4.5 million will go to the states,

     (3) The remainder - more than $24 million - will pay for
         administrative costs and legal fees.

"Today's settlement continues our mission to protect consumers by
fighting prescription drug companies' efforts to manipulate the law to
keep cheaper generic drugs of the market," Atty. Gen. Spitzer said
Monday, AP reports.  Spokeswomen for the drug companies didn't
immediately respond to requests for comment.


TERRORIST ATTACK: Victims' Families Sue, Labeling Fund Head As "Unfair"
-----------------------------------------------------------------------
September 11 Victim Compensation Fund special master Kenneth Feinberg
faces a lawsuit filed by seven families of victims of the World Trade
Center attack, charging him with acting unfairly in calculating awards
for victims' relatives, the Associated Press reports.

The suit charges Mr. Feinberg with using illegal formulas to compute
the monetary awards.  The suit further states that Mr. Feinberg has
"alienated and disenfranchised the very constituency he was appointed
to serve."  The suit was filed in Manhattan federal court, The New York
Times reports.

The suit further asserts that the fund violates state law - and
shortchanges applicants - by using after-tax earnings to calculate
awards. The compensation offered to families would be greater if the
awards were instead based on pretax earnings, as New York law requires
for wrongful death awards, according to the lawsuit.  The complaint
also alleges that the fund discriminates against unmarried victims and
has illegally limited the size of the awards that some high-income
families can receive, the Associated Press states.

Mr. Feinberg, who will have 60 days to respond to the lawsuit, told AP
he had not seen the complaint and had no comment.  The fund has so far
offered 154 awards, totaling $240 million, to relatives of victims.

TRANSKARYOTIC THERAPIES: Investors File Securities Lawsuits in MA Court
-----------------------------------------------------------------------
Transkaryotic Therapies, Inc. (Nasdaq: TKTX) faces several securities
class actions filed in the United States District Court for the
District of Massachusetts, on behalf of purchasers of the Company's
common stock from January 4, 2001 through January 14, 2003.  The suits
also name its Chief Executive Officer as defendant.

The suits allege that the Company made false and misleading statements
and failed to disclose material information concerning the status and
progress for obtaining US marketing approval of its Replagal(TM)
product to treat Fabry disease during that period.

Fabry disease is an inherited disorder caused by a faulty gene in the
body. Because of this error in the body's genetic makeup, an essential
enzyme (known as alpha-galactosidase, or alpha-GAL) is missing or does
not work properly.  Without this enzyme, certain fatty materials, are
not removed from the body, and instead stay in the cells. The result is
a build-up of material. It is this build-up, or storage, that causes
most of the problems in Fabry disease. As it builds up in the walls of
blood vessels and other tissues over time, it does increasing damage to
the body. Major organs systems like the heart, kidney and brain become
affected and can stop functioning properly, causing life-threatening
problems.

The complaint alleges that during the class period, defendants made
misrepresentations and nondisclosures of material fact to the investing
public concerning TKTX's prospects for FDA approval for the marketing
of TKTX's Replagal enzyme therapy for the treatment of Fabry disease.
In fact, the suit alleges, defendants knew by virtue of their ongoing
communications with the FDA that the FDA considered TKTX's data on the
primary pain reduction endpoint of TKTX's Phase II study to be
uninterpretable, and further that the FDA considered that TKTX's
cardiac and renal data did not support approval.

The Company believes it has highly meritorious defenses to the
lawsuits, but cannot predict the outcome at this early stage of
litigation



UNITED MEDICAL: Doctors To File Suit Over Additional Insurance Premium
----------------------------------------------------------------------
Fallen medical insurer United Medical Protection (UMP) faces the
possibility of a class action to be filed by hundreds of doctors, in
response to UMP's request in 2000 that they pay an additional premium,
ABC Online reports.  The premium is already the subject of a case
running in the Federal Court since 2001, in which a group of doctors is
pursuing a refund, alleging they were assured the payment would not be
required.

Sydney anesthesiologist Michael Levitt told ABC doctors are organizing
the latest action because the liquidator is still pursuing the
additional premium from doctors who refused to pay before the company's
collapse last April.

"We've been told that there are about 400 to 500 doctors who haven't
paid the call and who would be interested in joining such a class
action," he said.  "The average call ranged from about $2,500 from GPs
up to $57,000-odd for orthopedic surgeons and obstetricians."


*Pension Rules Raise Red Flags, Older Workers See Major Benefits Loss
---------------------------------------------------------------------
The Bush Administration recently proposed some rules that would make it
easier for companies to offer a pension plan attacked by labor
advocates and in class actions as unfair to older employees, The
Seattle Times reports.

Spokesmen for employers said that cash-balance plans are better suited
to a more mobile work force while preserving the old system in which
employers instead of employees pay for retirement.  The traditional
plans have been disappearing because they are too costly but cash-
balance plans can save a company hundreds of thousands of dollars a
year.

"These are very good, legitimate plans," said James Klein, president of
the American Benefits Council, a lobbying group for Fortune 500
companies.  Mr. Klein said that the alternative to cash-balance plans
is "getting rid of the traditional pension plans altogether," and
companies that have already adopted them "should be saluted, not
criticized."

However, labor advocates say the proposed rules would help corporations
save money at the expense of workers in their 40s, 50s and 60s, who can
lose up to 50 percent of their expected benefits when traditional plans
are converted.

The proposed regulations issued for comment by the Treasury Department
recently "gives a green light to a tremendously unfair practice that
robs older employees of benefits they had counted on getting, said
Karen Ferguson of the Pension Rights Center, a worker-advocacy group in
Washington, DC.

The new rules, which will be out for comment for 90 days before
becoming final, are expected to end a moratorium begun three years ago
on Internal Revenue Service approval of cash-balance plans.  The
proposed rules say that if employers contribute the same percentage of
pay to the new plans for older workers as they do for younger workers,
they will not be considered discriminatory.  The new rules come after
more than 800 discrimination complaints and several class actions by
older workers against some of the nation's biggest firms, including
AT&T.

Cash-balance plans were first approved by the IRS in 1985, and hundreds
of companies converted before the IRS moratorium was imposed.  They are
cheaper to administer than traditional plans.  Recently, Delta Air
Lines said it would save $500 million over five years by switching.

In traditional pension plans, a very large share of a person's benefit
is earned in the final years before retirement.  Older workers complain
they lose out on those lucrative years when a company converts to a
cash-balance plan, which does not make up for the difference.  By
contrast, workers build equity in cash-balance plans earlier than
they would in traditional plans.  The totals at the end of a career are
far less than the old plan, but fewer people actually spend their
entire career at one company.  Thus, the new plans are thought to be
attractive to younger people.

However, even some younger workers are finding the new deal
unpalatable.  Jeffrey Zitz is a 38-year-old senior engineer at IBM's
East Fishkill facility in New York state, who specializes in computer
modeling.  So, when IBM announced plans in 1999, to convert to a cash-
balance plan, and said the average employee would lose 20 percent of
his/her pension benefit, Mr. Zitz made his own computer model.  "I was
sure they were taking money off the table, but I didn't know how much,"
Mr. Zitz said.

To Mr. Zitz's dismay, he learned his loss would be closer to 65
percent.  Using IBM's own numbers, he figured his monthly pension at
age 65, would drop from $14,465 to just $4,542, and more recent changes
have driven the figure even lower.

IBM has since allowed workers as young as 40 to stick with the old
plan, but that does not help Mr. Zitz.  "There is not much I can do
about getting that money back," says Mr. Zitz, who says he would have
to sock away $20,000 a year in after-tax income to make up the
shortfall.

Lynda French, a former IBM employee who runs Cashbenefits.com, an
advocacy Web site for employees affected by the switch, said she
retired at age 55 two years ago, before IBM relented and lowered the
age limit, because she would have lost "about half" of her nest egg.
Such conversions are "taking away money that people already have
earned.  You can't go back and replan your financial status," she said.


                     Meetings, Conferences & Seminars


* Scheduled Events for Class Action Professionals
-------------------------------------------------

January 30, 2003
   TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENT
      CEB.Com
         Four Points Hotel Sunnyvale, California
            Contact: 1-800-232-3444; customer_service@ceb.ucop.edu

January 30-31, 2003
   REINSURANCE CONFERENCE: A PRACTICAL OVERVIEW OF CURRENT ISSUES
      Mealey Publications
         The Ritz-Carlton Hotel, Philadelphia
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

February 3-4, 2003
   DEFENSE STRATEGIES FOR PHARMACEUTICAL AND MEDICAL DEVICE LITIGATION
      Mealey Publications
         The Ritz-Carlton Hotel, Phoenix, AZ
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

February 3-4, 2003
   MOLD LITIGATION CONFERENCE
      Mealey Publications
         La Jolla Marriott, San Diego, CA
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

February 13-14, 2003
   PRODUCTS LIABILITY
      American Law Institute
         Coral Gables, Florida
            Contact: 215-243-1614; 800-CLE-NEWS x1614

February 14, 2003
   THE SCIENCE OF MOLD
      Bridgeport Continuing Education
         Sacramento
            Contact: 818-505-1490

February 19, 2003
   INSURANCE COVERAGE 2003: CLAIM TRENDS AND LITIGATION
      Practicing Law Institute
         PLI New York Center
            Contact: 800-260-4PLI; info@pli.edu.


February 19, 2003
   ASBESTOS PREMISES LIABILITY CONFERENCE
      Mealey Publications
         The Marriott Hotel, Philadelphia
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

February 20-21, 2003
   ASBESTOS LITIGATION 101 CONFERENCE
      Mealey Publications
         The Marriott Hotel, Philadelphia
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

March 3-4, 2003
   TOXIC MOLD LITIGATION
      Marriott East Side Hotel, New York
         Contact: 1-888-224-2480;
            http://www.americanconference.com


March 3-4, 2003
   PRACTICAL TRAINING FOR THE CLAIMS PROFESSIONAL
      Mealey Publications
         The Westin Hotel, Stamford
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

March 6-7, 2003
   VACCINE LITIGATION CONFERENCE
      Mealey Publications
         The Ritz-Carlton, Boston Commons, Boston
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

March 20-21, 2003
   FUNDAMENTALS OF INSURANCE COVERAGE LAW
      Mealey Publications
         The Westin Hotel, Philadelphia
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

March 23-24, 2003
   CALIFORNIA ENVIRONMENTAL UPDATE
      Bridgeport Continuing Education
         Long Beach
            Contact: 818-505-1490

April 2-5, 2003
   INSURANCE INSOLVENCY & REINSURANCE ROUNDTABLE
      Mealey Publications
         The Fairmont Scottsdale Princess, AZ
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

April 4-5, 2003
   TOXIC TORT IN CALIFORNIA
      Bridgeport Continuing Education
         San Francisco
            Contact: 818-505-1490

April 4-5, 2003
   TOXIC TORT AND ENVIRONMENTAL IN CALIFORNIA
      Bridgeport Continuing Education
         Contact: 818-505-1490

April 8, 2003
   SILICA LITIGATION CONFERENCE
      Mealey Publications
         The Ritz-Carlton Hotel Boston
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

April 10-11, 2003
   HANDLING CONSTRUCTION RISKS 2003:
      ALLOCATE NOW OR LITIGATE LATER
         Practicing Law Institute
            PLI New York Center
               Contact: 800-260-4PLI; info@pli.edu.

April 28-29, 2003
   EPHEDRA LITIGATION CONFERENCE
      Mealey Publications
         The Ritz-Carlton Huntington Hotel & Spa, Pasadena, CA
            Contact: 1-800-MEALEYS; 610-768-7800;
               mealeyseminars@lexisnexis.com

May 8-9, 2002
FEN-PHEN LITIGATION CONFERENCE
   Mealey Publications
      The Fairmont Hotel, Dallas
         Contact: 1-800-MEALEYS; 610-768-7800;
            mealeyseminars@lexisnexis.com

May 14-15, 2003
   CALIFORNIA ENVIRONMENTAL UPDATE
      Bridgeport Continuing Education
         San Jose
            Contact: 818-505-1490

June 12-13, 2003
   ENVIRONMENTAL INSURANCE: PAST, PRESENT AND FUTURE
      American Law Institute
         Boston
            Contact: 215-243-1614; 800-CLE-NEWS x1614

June 16-17, 2003
   LITIGATING EMPLOYMENT DISCRIMINATION &
      SEXUAL HARASSMENT CLAIMS
         Practicing Law Institute
            PLI New York Center
               Contact: 800-260-4PLI; info@pli.edu.

TBA
   Water Contamination Litigation Conference
      Mealey Publications
         Contact: 1-800-MEALEYS; 610-768-7800;
            mealeyseminars@lexisnexis.com

TBA
   Fair Labor Standards Conference
      Mealey Publications
         Contact: 1-800-MEALEYS; 610-768-7800;
            mealeyseminars@lexisnexis.com


* Online Teleconferences
------------------------

January 06-31, 2003
   ETHICAL CONSIDERATIONS IN MASS TORT
      AND CLASS ACTION LITIGATION IN TEXAS
         CLE Online Seminar
            Contact: 512-778-5665; info@cleonline.com

January 06-31, 2003
   NBI PRESENTS "LITIGATING THE CLASS
      ACTION LAWSUIT IN FLORIDA
         CLE Online Seminar
            Contact: 512-778-5665; info@cleonline.com

May 14, 2003
   CLASS ACTION BASICS
      ABA-CLE
         Contact: 800-285-2221; abacle@abanet.org

PAXIL LITIGATION
   LawCommerce.Com
      Contact: customerservice@lawcommerce.com

INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES
   Big Class Action
      Contact: seminars@bigclassaction.com

RECOVERIES
   Big Class Action
      Contact: seminars@bigclassaction.com

SHOULD I FILE A CLASS ACTION?
   LawCommerce.Com
      Contact: customerservice@lawcommerce.com

THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM
   LawCommerce.Com
      Contact: customerservice@lawcommerce.com

THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION
   LawCommerce.Com
      Contact: customerservice@lawcommerce.com

TRYING AN ASBESTOS CASE
   LawCommerce.Com
      Contact: customerservice@lawcommerce.com

______________________________________________________________________
The Meetings, Conferences and Seminars column appears in the Class
Action Reporter each Wednesday.  Submissions via e-mail to
carconf@beard.com are encouraged.


                     New Security Fraud Cases

AMERICREDIT CORPORATION: Milberg Weiss Commences Securities Suit in TX
----------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class
action in the United States District Court for the Northern District of
Texas on behalf of purchasers of AmeriCredit Corporation (NYSE:ACF)
publicly traded securities during the period between April 14, 1999 and
January 15, 2003.

The complaint charges the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
AmeriCredit is a national consumer finance company specializing in
purchasing, securitizing and servicing automobile loans.  The complaint
alleges violations of the federal securities laws arising out of
defendants' issuance of false and misleading statements about the
Company's business, operating performance and prospects.  Specifically,
defendants were improperly deferring delinquent loans to avoid consumer
defaults so AmeriCredit would have access to cash which otherwise would
have been restricted.

For more details, contact William Lerach by Phone: 800/449-4900 by E-
mail: wsl@milberg.com or visit the firm's Website:
http://www.milberg.com


ARIBA INC.: Schiffrin & Barroway Files Securities Fraud Suit in N.D. CA
-----------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the
United States District Court for the Northern District of California on
behalf of all purchasers of the common stock of Ariba, Inc.
(Nasdaq:ARBAE) publicly traded securities during the period between
January 11, 2000 and January 15, 2003, 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 beginning in January 2000 and throughout the class period,
defendants issued numerous positive press releases and Securities and
Exchange Commission (SEC) filings regarding Ariba's revenue growth and
projections, thereby falsely portraying Ariba's business prospects and
artificially inflating and maintaining the price of Ariba common stock
during the class period.

On January 15, 2003, Ariba announced that it was going to restate --
i.e. admit as false -- all of its financial results for ten quarters,
covering the quarter ended March 31, 2000 through the quarter ended
June 30, 2002, and that fiscal years 2000 and 2001 will also be
restated.  The Company further announced on that date that it may be
delisted by the Nasdaq Stock Market because it has not filed its annual
report with the Securities and Exchange Commission (SEC) for 2002.
Ariba's stock plunged 15% on the day of this revelation, completing a
98% decline from the class period high.

For more details, contact Marc A. Topaz or Stuart L. Berman by Mail:
Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Mail:
1-888-299-7706 (toll free) or 1-610-667-7706 by E-mail:
info@sbclasslaw.com or visit the firm's Website:
http://www.sbclasslaw.com


ARIBA INC.: Cauley Geller Commences Securities Fraud Lawsuit in N.D. CA
-----------------------------------------------------------------------
Cauley Geller Bowman & Coates, LLP initiated a securities class action
in the United States District Court for the Northern District of
California, on behalf of purchasers of Ariba, Inc. (Nasdaq: ARBAE)
publicly traded securities during the period between January 11, 2000
and January 15, 2003, inclusive.

The complaint charges the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Ariba describes itself as the "leading Enterprise Spend Management
solutions provider."  Ariba helps companies develop and leverage spend
management as a core competency to drive significant bottom line
results.

Specifically, the complaint alleges that beginning in January 2000 and
throughout the class period, defendants issued numerous positive press
releases and Securities and Exchange Commission (SEC) filings regarding
Ariba's revenue growth and projections, thereby falsely portraying
Ariba's business prospects and artificially inflating and maintaining
the price of Ariba common stock during the class period.

On January 15, 2003, Ariba announced that it was going to restate -
i.e. admit as false - all of its financial results for ten quarters,
covering the quarter ended March 31, 2000 through the quarter ended
June 30, 2002, and that fiscal years 2000 and 2001 will also be
restated.  The Company further announced on that date that it may be
delisted by the NASDAQ Stock Market because it has not filed its annual
report with the Securities and Exchange Commission (SEC) for 2002.
Ariba's stock plunged 15% on the day of this revelation, completing a
98% decline from the class period high.

For more details, contact Jackie Addison, Heather Gann or Sue Null by
Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone:
1-888-551-9944 by E-mail: info@cauleygeller.com or visit the firm's
Website: http://www.cauleygeller.com


ARIBA INC.: Rabin & Peckel Launches Securities Fraud Lawsuit in N.D. CA
-----------------------------------------------------------------------
Rabin & Peckel LLP initiated a securities class action in the United
States District Court for the Northern District of California on behalf
of all persons or entities who purchased or otherwise acquired Ariba,
Inc. (Nasdaq:ARBA) securities during the period from January 11, 2000
through January 15, 2003, both dates inclusive.

The suit alleges that the Company and certain of its officers and
directors violated the Securities Exchange Act of 1934 by making a
series of materially false and misleading statements concerning the
Company's financial results during the class period.  In particular,
during December 2002 and January 2003, Ariba informed investors for the
first time that the financial information contained in Ariba's
previously filed annual report for the fiscal years ended September 30,
2000 and 2001, and in Ariba's quarterly reports for the quarters ended
March 31, 200 through June 30, 2002 were unreliable.

Additionally, the company announced it would restate is financial
statements to reflect payments and air services made to Larry Mueller,
Ariba's then-President and Chief Operating Officer, and that the
Company improperly recorded stock options issued to individuals by
companies that Ariba acquired during 2000.  The Company revealed to the
public that the SEC had begun an investigation into the Company's
accounting practices.

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


LEAP WIRELESS: Bernstein Liebhard Commences Securities Suit in S.D. CA
----------------------------------------------------------------------
Bernstein Liebhard & Lifshitz LLP initiated a securities class action
on behalf of all persons who purchased or acquired common stock of Leap
Wireless International, Inc. (OTC BB: LWIN) between February 11, 2002
through and including July 24, 2002, in the United States District
Court for the Southern District of California against the Company and:

     (1) Harvey P. White,

     (2) Susan G. Swenson, and

     (3) Manford Leonard

The complaint charges Leap Wireless International, Inc. and certain of
its officers and directors with issuing false and misleading statements
concerning its business and financial condition.  Specifically, the
complaint alleges that starting on February 11, 2002, the day after the
Company publicly announced its financial results for its fiscal year
ending December 31, 2001, defendants concealed the deteriorated value
of its wireless license assets by undertaking a fraudulent impairment
test of those assets which grossly overstated the value of Leap's
wireless license assets in its financial statements.

The suit alleges that defendants were motivated by the need to preserve
the image of Leap as a viable wireless company with valuable assets,
sufficient to persuade lenders, investors and vendors to provide
capital, loans and equipment to the Company.  Defendants issued
materially false and misleading statements on February 11, 2002, April
24, 2002 and May 2, 2002.  On July 24, 2002, the last day of the class
period, Leap announced its financial results for its second quarter of
2002 and admitted for the first time that circumstances existed
throughout the year were adversely affecting the Company.

On this news the market price of Leap shares fell from a class period
high of $10.00 to below $1.00 and are presently trading at less that
$.40 per share.

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


MCSi INC.: Milberg Weiss Commences Securities Fraud Suit in S.D. Ohio
---------------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class
action on behalf of purchasers of the securities of MCSi, Inc. (NASDAQ:
MCSI) between July 24, 2001 to February 26, 2002, inclusive, and who
were injured thereby.  The action is pending in the United States
District Court for the Southern District of Ohio, Western Division,
against the Comapny, Michael E. Peppel (CEO, President and Chairman)
and Ira H. Stanley (CFO, Sr. V.P.).

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 July 24, 2001 to February 26, 2002.
According to the complaint, throughout the class period, defendants
issued numerous statements in quarterly and annual press releases
regarding the supposed strength of its business, particularly the
success of its high-margin systems integration business.

According to the complaint, these, and other representations detailed
therein, were materially false and misleading because they failed to
disclose that MCSi's business was deteriorating overall and that its
integration services business was not operating as successfully as
defendants had represented.  The suit further alleges that the scheme
was designed to artificially inflate the price of MCSi's common stock
in order to allow MCSi insiders to profit by selling their shares of
MCSi common stock at artificially inflated prices in two follow-on
public offerings.

On August 15, 2001, MCSi sold 4 million shares in a secondary offering
at $11.50 per share and on December 19, 2001, the Company and certain
selling shareholders, including Mr. Peppel who sold 200,000 shares for
gross proceeds of $4,575,000, undertook another public offering,
selling a total of 5.2 million shares of MCSi common stock at $22.875
per share.  Then, on February 26, 2002, the Company shocked the market
by reporting a 29% decline in sales for the fourth quarter of 2001, and
a loss of $0.24 per share (including a restructuring charge). In
reaction to this announcement, the price of MCSi common stock plunged
by 40%, falling from a $17.35 per share close on February 25 to a close
of $10.40 per share on February 26, on extremely heavy trading volume.

For more details, contact Steven G. Schulman or U. Seth Ottensoser by
Mail: One Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165 by
Phone: (800) 320-5081 by E-mail: mcsi@milbergNY.com or visit the firm's
Website: http://www.milberg.com


MERRILL LYNCH: Wolf Haldenstein Commences Securities Lawsuit in S.D. NY
-----------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP commenced in the United
States District Court for the Southern District of New York a
securities class action on behalf of all purchasers of Merrill Lynch
Focus Twenty Fund shares, of all four share classes (Nasdaq: MAFOX,
MBFOX, MCFOX, MDFOX) from the Focus Twenty Fund's initial public
offering (which took place on or about March 3, 2000 through December
23, 2002, inclusive against:

     (1) Merrill Lynch & Co., Inc.,

     (2) Merrill Lynch, Pierce, Fenner & Smith, Inc.,

     (3) Merrill Lynch Focus Twenty Fund, Inc., and

     (4) other Merrill Lynch-affiliated entities

The suit alleges violations of Sections 11, 12 and 15 of the Securities
Act of 1933 and of the Investment Company Act of 1940.  The
relationships among the defendants include that the defendants are:

     (i) the underwriters for the common stock of certain of the
         companies in the Focus Twenty Fund's portfolio;

    (ii) the investment bankers and corporate finance specialists for
         certain of the companies whose securities are in the Fund's
         portfolio;

   (iii) seeking to obtain additional investment banking business from
         these present and former clients and from other companies
         whose shares also were/are in the Fund's portfolio;

    (iv) the issuers of the shares in the Fund;

     (v) preparing and publicly disseminating research reports and
         recommendations on many of the companies whose shares were in
         the Fund's portfolio; and

    (vi) the broker for certain members of the class.

This action arises as a result of the issuance by the defendants of
shares in the Fund, and concerns material misstatements and omissions
by defendants in the Prospectus and other incorporated documents,
relating to defendants' conflicts of interest, which include but are
not limited to the following:

     (a) defendants failed to disclose and omitted material information
         that Merrill Lynch had had investment banking relationships
         with, including having brought public, certain of the
         companies whose securities were part of the Fund's portfolio.
         Defendants disclosed neither this general fact nor the
         identities of the particular companies with which it had
         investment banking relationships;

     (b) defendants failed to disclose and omitted material information
         concerning that Merrill Lynch was continuing to seek
         investment banking relationships with many of the companies
         whose securities were part of the Fund's portfolio; and

    (c) defendants failed to disclose and omitted material information
        concerning that a material part of the total compensation paid
        to Merrill Lynch research analysts was based upon obtaining
        investment banking business for Merrill Lynch and not upon the
        accuracy of their research about a given company.

Hence, Merrill Lynch and its affiliated companies including the Fund
recommended investments in and/or invested in companies in order to
enhance Merrill Lynch's opportunity to obtain investment banking
business from those companies (without regard to whether they were good
investments for the investors including plaintiffs and the Class).

For more details, contact George Peters, Derek Behnke, Robert B.
Weintraub, Daniel W. Krasner 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. Your e-mail should
refer to the Merrill Lynch Focus Twenty Fund.


MOTOROLA INC.: Marc Henzel Commences Securities Fraud Suit in N.D. IL
---------------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Northern District of
Illinois, on behalf of all persons who purchased the securities of
Motorola, Inc. (NYSE: MOT) between February 3, 2000 and May 14, 2001,
inclusive against the Company and certain of its officers and
directors.

On February 3, 2000, Motorola issued a press release in which it
announced that Motorola would provide products and services to Telsim
Mobil Telekomunikasyon Hizmetleri A.S. (Telsim), a Turkish cellular
phone system operator controlled by Turkish citizen Kemal Uzan, his
sons Hakan and Cem, and various members of his immediate family.  The
press release, however, failed to disclose that Motorola's deal with
Telsim required Motorola to provide the Turkish company with $1.7
billion in vendor financing.

On March 29, 2001, Motorola filed its Form Def 14A Proxy Statement with
the SEC in which the Company partially disclosed the magnitude of its
vendor financing commitments.  On April 6, 2001, shares of Motorola
stock dropped twenty three percent.  Six weeks later, Motorola revealed
that $728 million of the Telsim loan was past due and that Motorola
actually had loaned Telsim $2 billion in vendor financing -- $300
million more than had been disclosed.

For more details, contact Marc S. Henzel by Mail: The Law Offices of
Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-
2808, by Phone: (888) 643-6735 or (610) 660-8000, by Fax:
(610) 660-8080, by E-mail: Mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182.


ROBERTSON STEPHENS: Pomerantz Haudek Lodges Securities Suit in S.D. NY
----------------------------------------------------------------------
Pomerantz Haudek Block Grossman & Gross LLP initiated a securities
class action in the United States District Court for the Southern
District of New York, case number 03 CV 0590, against Robertson
Stephens, Inc. and its former managing director and senior research
analyst Paul Johnson on behalf of investors who purchased the common
stock of Corvis Corporation (Nasdaq:CORV) during the period from August
22, 2000 through January 29, 2001, inclusive.

The lawsuit charges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 by issuing false and misleading
analyst reports on Corvis, a maker of optical networking equipment,
that contradicted Mr. Johnson's privately held beliefs.  As a result of
defendants' false and misleading statements, the market price of Corvis
common stock was artificially inflated, maintained or stabilized during
the Class Period.

On January 9, 2003, the Securities and Exchange Commission (SEC) and
the National Association of Securities Dealers charged Paul Johnson for
issuing "Buy" ratings on Corvis to the public while privately advising
a group of Robertson Stephens limited partnerships (in which Mr.
Johnson had invested) to sell their Corvis shares.  The SEC complaint
also charged Johnson with issuing positive research reports on Redback
Networks, Inc. and Sycamore Networks, Inc. in which Mr. Johnson praised
proposed acquisitions by Redback and Sycamore of two private companies
in which Mr. Johnson had undisclosed investments.

For more details, contact Andrew G. Tolan by Phone: 888-476-6529
((888) 4-POMLAW) by E-mail: agtolan@pomlaw.com or visit the firm's
Website: http://www.pomlaw.com


SPIEGEL INC.: Bernstein Liebhard Commences Securities Fraud Suit in IL
----------------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP initiated a securities class action
on behalf of all persons who purchased or acquired common stock of
Spiegel, Inc. and Spiegel Holdings, Inc. (OTC: SPGLA) (formerly traded
as NASDAQ: SPGLA) between April 24, 2001 through and including April
19, 2002.  The case is pending in the United States District Court for
the Northern District of Illinois against the Company and:

     (1) Spiegel Holdings, Inc.,

     (2) Michael R. Moran,

     (3) Martin Zaepfel,

     (4) James W. Sievers, and

     (5) James Cannataro

The complaint charges Spiegel, Inc. and Spiegel Holdings, Inc. and
certain of its officers and directors with issuing false and misleading
statements concerning its business and financial condition.
Specifically, the complaint alleges that:

     (i) the Company lacked sufficient internal controls and therefore
         was unable to understand its true financial standing,
         including the fact that FNCB had inadequate and improper
         internal and financial controls and accounting practices,
         including improperly inflated earnings, improper accounting
         for increasing charge-offs and seriously inflated the value of
         its securitized receivables;

    (ii) that the Company's credit card accounts were seriously
         overstated and credit had been extended to certain high-risk
         market segments without appropriate disclosure of this
         liability;

   (iii) because of these problems, the value of the Company's balance
         sheet and income statement were materially overstated at all
         relevant times;

    (iv) Spiegel's Eddie Bauer division was mismanaged, and had
         significant over-inventory.

The result of these problems was a rapid deterioration in the Company's
credit portfolio and significant earnings shortfalls in fiscal 2001.

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


TRANSKARYOTIC THERAPIES: Shapiro Haber Commences Securities Suit in MA
----------------------------------------------------------------------
Shapiro Haber & Urmy LLP initiated a securities class action against
Transkaryotic Therapies, Inc. (Nasdaq: TKTX) and its CEO, on behalf of
persons who purchased TKT securities, or who sold put options, on the
open market from January 4, 2001 through January 14, 2003.  The action
was filed in the United States District Court for the District of
Massachusetts in Boston, Massachusetts.

The complaint alleges that during the class period, defendants made
misrepresentations and nondisclosures of material fact to the investing
public concerning TKT's prospects for FDA approval of TKT's Replagal
enzyme therapy for the treatment of Fabry disease.  In fact, as the
Complaint alleges, defendants knew by virtue of their ongoing
communications with the FDA of adverse facts concerning the FDA's
consideration of TKT's application that were inconsistent with TKT's
positive representations.

More specifically, according to testimony at the January 14, 2003 FDA
Advisory Committee hearing, in a letter dated December 22, 2000, the
FDA had advised TKT that "the clinical study data (from the Phase II
studies) had not provided substantial evidence of efficiency and fully
detailed the facts leading to that conclusion. (The FDA's Center for
Biologics Evaluation and Research) recommended that additional clinical
studies be conducted."

The facts were all finally revealed after the January 14, 2003 FDA
Advisory Committee meeting.  On January 15, 2003, TKT closed at $6.49,
more than 85% below its class period high.

Defendants were motivated to make the materially false and misleading
statements during the class period, among other things, so that TKT
could sell $267 million in common stock in secondary public offerings
and Richard F. Selden, TKT's President and CEO, could sell 90,000
shares of his personal holdings of TKT common stock during the class
period for total consideration of $2,800,000.

For more details, contact Thomas G. Shapiro or Liz Hutton by Mail: 75
State Street, Boston, MA 02109 by Phone: (800) 287-8119 by Fax:
(617) 439-0134, or by E-mail: cases@shulaw.com.


TRANSKARYOTIC THERAPIES: Charles Piven Commences Securities Suit in MA
----------------------------------------------------------------------
The Law Offices Of Charles J. Piven, PA initiated a securities class
action on behalf of shareholders who purchased, converted, exchanged or
otherwise acquired the common stock of Transkaryotic Therapies, Inc.
(Nasdaq:TKTX) between January 4, 2001 and January 14, 2003, inclusive,
in the United States District Court for the District of Massachusetts
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


TRANSKARYOTIC THERAPIES: Wechsler Harwood Files Securities Suit in MA
---------------------------------------------------------------------
Wechsler Harwood LLP initiated a securities class action against
Transkaryotic Therapies, Inc. (Nasdaq:TKTX), on behalf of persons who
purchased or otherwise acquired the securities of Transkaryotic
Therapies, Inc. during the period from January 4, 2001 through and
including January 13, 2003.  The suit names Transkaryotic Therapies,
Inc. as a defendant, along with Richard F. Selden, the Company's
President and CEO, and Rodman W. Moorhead III, the Company's Chairman
and is pending in the United States District Court in Massachusetts.

The complaint asserts securities fraud claims under sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder.  The complaint alleges that the defendants
violated the Federal securities laws by making materially false and
misleading statements and failing to disclose material adverse
information regarding the prospects for FDA approval of Replagal,
Transkaryotic's drug for the treatment of Fabry Disease.

In particular, the complaint alleges that defendants repeatedly
represented that FDA approval was not only likely, but imminent, when
they knew or should have known that the Replagal Biologics License
Application (BLA) the Company had submitted to the FDA was grossly
deficient and could not support approval.

At a meeting on Jan. 14, 2003, the FDA Advisory Committee voted 15-0 to
tell the FDA that Transkaryotic had not provided sufficient evidence
that Replagal is effective in treating Fabry Disease.  When
Transkaryotic shares resumed trading on January 15, 2003, they lost
more than 25% of their value in a single day, falling to $6.49 per
share.

For more details, contact David Leifer by Mail: 488 Madison Avenue, 8th
Floor, New York, New York 10022 by Phone: (877) 935-7400 or by E-mail:
dleifer@whesq.com


TRANSKARYOTIC THERAPIES: Cohen Milstein Commences Securities Suit in MA
-----------------------------------------------------------------------
Cohen, Milstein, Hausfeld & Toll, PLLC initiated a securities class
action in the United States District Court for the District of
Massachusetts, on behalf of persons who purchased or otherwise acquired
the securities of Transkaryotic Therapies, Inc. (Nasdaq:TKTX) during
the period from January 4, 2001 through and including January 14, 2003.

The suit names Transkaryotic Therapies, Inc. as a defendant, along with
Richard F. Selden, the Company's President and CEO and Rodman W.
Moorhead III, the Company's Chairman.  The complaint asserts securities
fraud claims under sections 10(b) and 20(a) of the Securities Exchange
Act of 1934, and Rule 10b-5 promulgated thereunder.

The complaint alleges that the defendants violated the federal
securities laws by making materially false and misleading statements
and failing to disclose material adverse information regarding the
prospects for FDA approval of Replagal, Transkaryotic's drug for the
treatment of Fabry disease.  In particular, the complaint alleges that
defendants repeatedly represented that FDA approval was not only
likely, but imminent, when they knew or should have known that the
Replagal Biologics License Application (BLA) the Company had submitted
to the FDA was grossly deficient and could not support approval.

At a meeting on January 14, 2003, the FDA Advisory Committee voted 15-0
to tell the FDA that Transkaryotic had not provided sufficient evidence
that Replagal is effective in treating Fabry disease.  It was also
revealed that the FDA had informed the Company as early as December
2000 that the renal and liver data submitted by Transkaryotic did not
support FDA approval.  When Transkaryotic shares resumed trading on
January 15, 2003, they lost more than 25% of their value in a single
day, falling to $6.49 per share.

As a result of defendants' alleged misrepresentations and omissions,
plaintiff alleges, the market price of Transkaryotic securities was
artificially inflated during the class period.

For more details, contact Steven J. Toll or Mary Ann Fink by Mail: 1100
New York Avenue, NW West Tower, Suite 500, Washington, DC 20005 by
Phone: 888/240-0775 or 202/408-4600 by E-mail: stoll@cmht.com or
mfink@cmht.com or visit the firm's Website: http://www.cmht.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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