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/raid1/www/Hosts/bankrupt/CAR_Public/030130.mbx C L A S S A C T I O N R E P O R T E R Thursday, January 30, 2003, Vol. 5, No. 21 Headlines AT&T BROADBAND: Reaches Agreement To Settle CA Cable Customers Lawsuit BASELINE DESIGN: Recalls 30,000 Beanbag Chairs For Suffocation Hazard CLEARONE COMMUNICATIONS: UT Attorney's Office Starts Securities Probe DELTA AIR: SkyMiles Program Participants Commence Antitrust Suit in NY DIAL CORPORATION: Prepares For Trial In IL Sexual Harassment Lawsuit ENRON CORPORATION: TX Court Dismisses Five Andersen Partners From Suit FASTFOOD LITIGATION: Experts Believe More Obesity Lawsuits Are Likely GOTHAM PARTNERS: Shareholders File Suit Over Blocked First Union Merger HUBBLE HOMES: Boise Homeowners File Suit Over Shoddy Home Construction KOREA: Lawsuit System To Be Implemented 100 Days After Roh Inauguration NEW YORK: Attorney Skeptical of HIV-Infected Inmates' Numbers OREGON: State Court To Decide Whether To Lift AMHI Suit Consent Decree PRE-PAID LEGAL: Plaintiffs Voluntarily Dismiss OK Derivative Lawsuit RURAL CELLULAR: Investors File Several Securities Fraud Lawsuits in MN SANDATA TECHNOLOGIES: Executes Settlement of Securities Fraud Lawsuit SOUTH CAROLINA: High Court Decertifies SC Suit Over Return Tax Refunds TERRORIST ATTACK: Plaintiffs Seek Revision Of Compensation Fund Rules TOBACCO INDUSTRY: Vector Releases Nicotine-Reduced Cigarettes To Market UNITED MEDICAL: Liquidator Says Doctors' Lawsuit Is "Counterproductive" WYETH: Colorado Woman Files Suit Over Hormone Replacement Pill Effects New Securities Fraud Cases AEGON NV: Milberg Weiss Files Securities Violations Suit in S.D. NY AMERICREDIT CORPORATION: Schiffrin & Barroway Files TX Securities Suit ARIBA INC.: Marc Henzel Commences Securities Fraud Lawsuit in N.D. CA BIO-TECHNOLOGY GENERAL: Rabin Murray Lodges Securities Suit in NJ Court CABLE & WIRELESS: Pomerantz Haudek Commences Securities Suit in E.D. VA MERILL LYNCH: Schatz & Nobel Commences Securities Fraud Suit in S.D. NY TELLIUM INC.: Rabin Murray Commences Securities Fraud Suit in NJ Court VERITAS SOFTWARE: Schiffrin & Barroway Files Securities Suit in N.D. CA VERITAS SOFTWARE: Marc Henzel Commences Securities Lawsuit in N.D. CA VERITAS SOFTWARE: Cauley Geller Lodges Securities Fraud Suit in N.D. CA ********* AT&T BROADBAND: Reaches Agreement To Settle CA Cable Customers Lawsuit ---------------------------------------------------------------------- AT&T Broadband, Inc. agreed to settle the consumer class action filed in Los Angeles Superior Court on behalf of cable customers of MediaOne, which the Company acquired in a merger in 2000, the Daily Review reports. The suit was filed based on a state law that went on the books in January 1997, setting a $4.75 cap on the amount cable companies could collect in late fees. According to court records, AT&T Broadband's position was that the extra 24 cents it collected was allowable because it was being passed on as franchise fees paid to local cities, the Daily Review reports. Initially, a Superior Court judge agreed with AT&T Broadband, but an appellate ruled otherwise in 2000. Shortly after the appellate court ruling, the Company lowered its late fee and now charges $4.50. Under the settlement, about 3 million AT&T Broadband cable TV customers in California would get a small refund on future cable bills. Customers of the cable company, which was acquired last year by Comcast Corp., have begun getting word of the proposed settlement in bills going out this month. Under terms of the proposed settlement, AT&T Broadband would agree to pay $461,589 while denying any wrongdoing. Of that amount, $369,271 would be divided up among current customers - and not just those who paid the late fees - throughout California in the form of a future refund. Attorney for the plaintiffs Jonathan Weiss told the Review that approach is being taken because it would be very difficult to go back and check records to see which customers paid late charges. To account for refunds due to customers who have left AT&T Broadband, another $92,317 would go to a charity that is yet to be determined. Additionally, the settlement calls for AT&T Broadband to pay up to $225,000 in attorneys' fees and expenses. The $461,589 settlement amount represents a disputed portion -- which amounts to 24 cents for each late charge -- of a $4.99 late fee collected during a three-year period ending in early 2000. The settlement has to be approved by the court at a March 27 hearing. BASELINE DESIGN: Recalls 30,000 Beanbag Chairs For Suffocation Hazard --------------------------------------------------------------------- Baseline Design is cooperating with the United States Consumer Product Safety Commission (CPSC) by recalling about 30,000 beanbag chairs manufactured in 1999. Some of these beanbag chairs have zippers that can be opened, allowing access to the polystyrene beads inside the chairs. This poses a suffocation hazard to young children who can unzip the chair and inhale the small beads. The Company is aware of three incidents in which the chairs were unzipped freely. Two of the incidents involved young children who were able to open the beanbag chair zippers and handle the small polystyrene beads, including one child who received medical attention after inhaling the beads. The recalled beanbag chairs are designed with 12-inch double zippers and have various designs, including a smiley face, a football-shape, a baseball-shape, a basketball-shape and solid green, yellow, pink and blue neon colors. The beanbags have a tag that states, in part, "Made by Baseline Design." Wal-Mart stores located in the Northeast US sold the beanbag chairs from September 1999 through December 1999 for about $30. For more details, contact the Company by Phone: (800) 497-3626, Ext. 3046, between 8 am and 5 pm ET Monday through Friday or visit the firm's Website: http://www.foamex.com. CLEARONE COMMUNICATIONS: UT Attorney's Office Starts Securities Probe --------------------------------------------------------------------- The United States Attorney's Office for the District of Utah initiated a criminal investigation of ClearOne Communications, Inc., following a Securities and Exchange Commission (SEC) complaint filed against the Company on January 15,2003, Reuters reports. The SEC complaint alleged the Company violated federal securities laws and filed false financial statements. The Company also faces a class action filed in the United States District Court in Utah, which also names as defendants: (1) Chief Executive Officer Frances Flood, (2) Chief Financial Officer Susie Strohm and (3) ex-Chief Financial Officer Randall Wichinski The Company told Reuters plans to defend itself vigorously against any civil allegations made in the class action or others that may be pending. The Company also received a request for information from Nasdaq relating to its trading halt January 21 resulting from the SEC complaint. It said it was working aggressively to satisfy Nasdaq's request for information and that trading in its stock will remain halted until the company has fully satisfied Nasdaq's request. DELTA AIR: SkyMiles Program Participants Commence Antitrust Suit in NY ---------------------------------------------------------------------- Delta Air faces a class action filed by three participants in its SkyMiles program, alleging the Company violated federal law by blocking consumers from selling or trading miles they earn in Delta's frequent flier program, Bloomberg News reports. The suit, filed in New York federal court, charges the Atlanta-based airline (NYSE: DAL) has broken US antitrust law by penalizing consumers that sell or trade their miles to others in the program. Consumers accumulate miles, which entitle them to tickets and other benefits, by flying on Delta, using credit cards affiliated with the airline, or buying them directly from Delta. Delta declined to comment, the Atlanta Business Journal reports. The suit seeks class action status. Plaintiffs Allison Haas, Jason Kanefsky and Howard Smith seek undetermined damages. DIAL CORPORATION: Prepares For Trial In IL Sexual Harassment Lawsuit -------------------------------------------------------------------- Dial Corporation said it plans to go to trial to fight a sexual harassment class action brought by the Equal Employment Opportunity Commission (EEOC), The Wall Street Journal reports. The lawsuit, filed in 1999, in the United States District Court in Chicago, alleges the Company engaged in a pattern of discrimination against some female employees at its Aurora, Illinois, soap- manufacturing facility by subjecting them to sexual harassment, and then not promptly addressing their complaints. Dial, maker of Dial soap, Purex detergent and Renuzit air-fresheners, denies the EEOC's allegations, and is preparing for a trial in late April. In an 8-K filing to the Securities and Exchange Commission, the Company said that the EEOC was seeking $15 million to settle the case. However, the Company assert that based on its own investigations "we do not believe the facts warrant such a large settlement. Accordingly we are preparing for trial." A lawyer for the EEOC said settlement talks had occurred in the past, but the commission was now preparing for trial. ENRON CORPORATION: TX Court Dismisses Five Andersen Partners From Suit ---------------------------------------------------------------------- United States District Judge Melinda Harmon dismissed five Arthur Andersen partners from the class action filed by shareholders of fallen energy trader Enron Corporation, the Houston Chronicle reports. Judge Harmon dismissed from the suit: (1) Nancy Temple, the former Arthur Andersen attorney whose internal memo persuaded a jury to convict the firm of obstruction of justice, (2) Donald Dreyfuss, (3) James Friedlieb, (4) Gregory Hale and (5) Roger Williard, one of three partners in Andersen's Houston office who was put on administrative leave and has since left the Company However, the judge ruled that thirteen other current and former partners, including former Chief Executive Officer Joseph Berardino, will remain in the suit. The judge had earlier ruled that Andersen itself also stays in the case. The order could lead to Ms. Temple being absolved of civil liability in connection with any finding of securities fraud related to Enron, but she is still subject to a five-year statute of limitations on a possible criminal charge of obstruction of justice. A US House committee has urged the Justice Department to investigate whether Temple perjured herself while testifying before a congressional panel investigating Enron, the Houston Chronicle reports. In June, the accounting firm was found guilty in June of obstructing an expected SEC investigation of Enron. Some jurors said the verdict was not based on Andersen's destruction of records but on Ms. Temple's e- mail suggesting that Enron's lead auditor delete her name and make other changes in an internal memo related to the company's third- quarter earnings report. Trey Davis, director of special projects for the University of California, lead plaintiff in the lawsuit, told the Houston Chronicle the decision "does not appear that it will ultimately have much impact on the ability of the class to achieve a meaningful recovery." Judge Harmon dismissed the plaintiffs' complaint that the 18 current and former Andersen officials could be individually held liable for securities fraud as part of a "group" of employees that worked at the company. The judge said that she was not reluctant to hold a company accountable for the actions of its employees, but it's a different matter to hold employees accountable for the actions of a company. "The Court concludes that there must be a showing that the individual employee, himself, violated the securities statute(s) through substantial participation in the fraud," Judge Harmon wrote, the Houston Chronicle states. Judge Harmon has been praised by attorneys on all sides of the civil case for her reasoned and legally notated decision on the dismissal motions. Harry Reasoner, a Vinson & Elkins partner and spokesman, told the Chronicle his firm and the financial institution defendants must now consider an attempted appeal without her permission. Attorneys are often reluctant to do so for fear or annoying the trial judge who has their clients' fate in her hands. FASTFOOD LITIGATION: Experts Believe More Obesity Lawsuits Are Likely --------------------------------------------------------------------- Legal experts believe that the dismissal of an obesity lawsuit against fast-food giant McDonald's Corporation will not deter other similar lawsuits from popping up, Reuters reports. The original suit, filed in the United States District Court for the Southern District of New York, blames the Company for their patrons' health problems like obesity, heart problems and diabetes. Judge Robert Sweet dismissed the suit saying the plaintiffs failed to show that the fast-food chain's products "involve a danger that is not within the common knowledge of consumers," an earlier Class Action Reporter story states. "It wasn't as simple as one, two, three," Victor Schwartz, head of the public policy group of the law firm Shook, Hardy and Bacon, and general counsel of the American Tort Reform Association, told Reuters. Judge Sweet's ruling left the door open for plaintiffs to re-file the case, with guidance on how the suit might be strengthened. Several legal watchers say the ruling suggests that plaintiffs could pursue the negligence charge by concentrating on the way McDonald's processes some of its products -- such as Chicken McNuggets or fries. "I think what the judge was doing was tipping his hand and saying this argument could have some merit," Albert Yoon, assistant professor at Northwestern University School of Law told Reuters. "For instance, Chicken McNuggets, rather than being merely chicken fried in a pan, are a McFrankenstein creation of various elements not utilized by the home cook," Judge Sweet wrote in his opinion. "If plaintiffs were able to flesh out this argument in an amended complaint, "it may establish that the dangers of McDonald's products were not commonly well known and thus that McDonald's had a duty toward its customers." "We can go in with the chicken, the french fries," John Banzhaf III, a George Washington University Law professor who has been working since last year on a connection between obesity and the litigation, told Reuters. "I'm pretty much sure we can dig up others . he's given us a road map on possible addiction." Attorney for the plaintiffs Stephen Hirsch has said they planned to appeal the decision. He was on vacation and was not available for comment, his office told Reuters. Whatever the outcome of the most recent case, some say fast food and other food manufacturers must proceed with caution, as much of their future depends on the public's opinion, Reuters states. "The law tends to follow society in developing and identifying the most important issues of the day," said William McKenna, a partner in the litigation department of Foley and Lardner. One of the greatest threats facing the food industry is from the state attorneys general, who four years ago won a $206 billion settlement from tobacco companies for smoking-related health-care costs, Reuters states. These types of suits remove two huge stumbling blocks that appear when individuals sue: that the person knew that eating too much fast-food could result in health problems and that the food itself was a direct cause of such problems. "We remain confident," McDonald's spokeswoman Lisa Howard told Reuters. "And we believe the facts will prevail. Any effort to resurrect this frivolous lawsuit will ultimately end up being rejected by the court." GOTHAM PARTNERS: Shareholders File Suit Over Blocked First Union Merger ----------------------------------------------------------------------- Hedge fund Gotham Partners faces a class action in New York State Court filed last week by several common shareholders of First Union Real Estate Equity and Mortgage Investments, over the blocked US$81 million merger between the two entities, TheStreet.com reports. Earlier, a group of First Union preferred shareholders convinced a New York judge to block a proposed merger between the REIT and a money- losing golf course venture controlled by Gotham. The suit alleges the proposed merger was "inherently unfair" because it was designed to primarily benefit Gotham, which needed the deal in order to recoup the more than $30 million it had sunk into the golf venture, Gotham Golf, TheStreet.com reports. The shareholders want damages on grounds the aborted merger allegedly prevented managers from carrying out the REIT's regular operations. They're asking the court to name an independent shareholder committee to "manage the affairs of First Union." The deal also would have permitted Gotham to cash out its more than 16% ownership stake in First Union. Gotham is in the process of liquidating its once-$300 million hedge fund. Meanwhile, New York Attorney General Eliot Spitzer is looking into some of the hedge fund's trading and research practices in order to determine if Gotham engaged in market manipulation, TheStreet.com reports. HUBBLE HOMES: Boise Homeowners File Suit Over Shoddy Home Construction ---------------------------------------------------------------------- A second group of homeowners filed suit against a Boise-area housing developer, claiming poor construction has caused more than 140 homes to flood, weakening the homes' structural integrity and prompting dangerous mold growth. According to the complaint filed yesterday in Ada County District Court in Boise against Hubble Homes, the damage caused by the stagnant water has left some homes in the Odiaga Rosecreek development completely uninhabitable. In early December 2002, another group of homeowners in the adjacent Leo Rosecreek subdivision filed suit against the same developer for similar causes. Homeowners in the Odiaga Rosecreek subdivision claim defendants Hubble Homes -- formerly known as Cherry Lane Homes -- and Hubble Engineering overlooked or ignored obvious drainage issues with the building site, prompting thriving mold and fungus infiltration, including inside cooling and heating systems, and damaging the structural stability of the homes. "Many of the plaintiffs are worried about the health effects of the mold that has arisen from the damp conditions," Attorney for the plaintiffs Steve Berman noted. "In addition, the impact on property values has been devastating." Even more distressing, the suit contends Hubble Homes has performed mold tests in several Odiaga residents' homes but refuses to release the results of the tests to homeowners. The suit also claims Hubble Engineering ignored several warnings about possible groundwater seepage into crawlspaces and failed to perform the necessary tests of subsurface conditions. Even after becoming aware of the defects in the homes, the suit contends Hubble Homes continued to sell the lots without mentioning the problems other homeowners experienced. "We find this to be outrageous behavior in our view, and we will ask the court for leave to add punitive damages to our claim against this builder," Mr. Berman added. Mr. Berman noted that homeowners often reported drainage problems and tried to work with developers to repair their homes but with little success. "The builders have kept a steady pattern of ignoring homeowners' concerns," he said. The suit states that at least 50 homeowners have been affected by construction defects and estimates individual losses for each of the homes at $50,000 to $200,000, setting the final damages as high as $10 million. Plaintiffs also have the option to file for punitive damages against the developers under Idaho law. The proposed class action, if approved, would include all persons who purchased or otherwise acquired real property within the Odiaga Rosecreek Subdivision Nos. 1, 2, and 3 from July 9, 1997 to the present. The suit cites violations of: (1) the Idaho Consumer Protection Act, (2) breach of implied warranty and habitability, (3) breach of expressed warranty, (4) breach of contract, (5) negligence, (6) misfeasance and nuisance For more details, contact Steve Berman of Hagens Berman by Phone: 1-206-623-7292, or by E-mail: steve@hagens-berman.com or visit the firm's Website: http://www.hagens-berman.com KOREA: Lawsuit System To Be Implemented 100 Days After Roh Inauguration ----------------------------------------------------------------------- Korea's proposed class action system for securities disputes and the special bill for the implementation of free trade agreements are expected to be implemented within 100 days after the inauguration Roh Moo-hyun as president in late February, The ChosunIbo reports. The new government is also expected to adopt within a year the bill limiting the voting rights of chaebols' financial units have for their stakes in sister firms, and all-inclusive taxation system on donations and inheritances. An official at the Ministry of Finance and Economy (MOFE) told the ChosunIbo Monday that the ministry reported the implementation schedule for President Roh's various election pledges to the presidential transition committee last weekend. The official said that the class-action lawsuit bill and the FTA special bill were designed to compensate farm and fishery industries for damages they might incur following market openings. NEW YORK: Attorney Skeptical of HIV-Infected Inmates' Numbers ------------------------------------------------------------- The percentage of HIV-positive inmates in New York prisons may have dropped more than 14 percent, but it still exceeds the rest of nation's percentages, according to recently released federal statistics, PressRepublican states. The United States Department of Justice report stated that the number of HIV-infected New York state prisoners dropped from 7,000 in 1999 to 6,000 in 2000. From 1995 to 2000, the number of inmate AIDS-related deaths also nose-dived from 258 to eight. The most recent figure, however, still accounted for nearly 25 percent of convicts nationwide infected with HIV. The federal report, called "HIV in Prisons, 2000," shows male and female infection rates state by state and then compares those numbers to prior years. For example, it shows 18.2 percent of female state prisoners were infected with HIV in 2000. That's more than double the percentage of any other state, PressRepublican reports. Jack Beck, lawyer for the plaintiffs in a class action on behalf of all HIV-infected state inmates, said that the reduction in infection and death rates may show a marked improvement for New York prisons but it doesn't accurately reflect what's going on behind bars to prevent the disease. He added that he believes the number of deaths in 2000 was well above the eight reported. He told the PressRepublican.com the drop in inmate HIV infections reflects what's going on with the disease in the community at large, due to the implementation of needle-exchange programs and medications. He also pointed out that infected individuals are living longer because of medications. The State Department of Correctional Services, meanwhile, said AIDS- related deaths increased to 22 in 2001. For its part, the state has increased funding for inmate AIDS treatment to more than $70 million in 2000. That's almost double what the state spent five years earlier. State prisons spokesman James Flateau told PressRepublican.com he had not yet seen the federal report and therefore would not comment on it. OREGON: State Court To Decide Whether To Lift AMHI Suit Consent Decree ---------------------------------------------------------------------- Trial over the lifting of a 12-year-old consent decree governing Oregon's adult mental health system will be resumed on Monday in Maine Superior Court, KJ & Sentinel Online reports. The consent decree was established in 1990 to settle a class action filed on behalf of patients of the Augusta Mental Health Institute (AMHI), over the inadequate conditions at the psychiatric hospital. The state originally agreed to have completed the requirements laid out in the decree but failed to meet the timeline set by the court. This led the court to declare to state officials in contempt. In January 2002, the administration of Gov. Angus King claimed that the state had come into compliance with the consent decree's terms. Lawyers for the plaintiffs disagreed. Lawyers on both sides have already presented four weeks of testimony to Chief Justice Nancy D. Mills, and she has scheduled three more weeks of court time. However, Judge Mills has made clear to the legal teams that she expects them to do everything they can to finish up in the allotted time, the KJ & Sentinel Online reports. Judge Mills must now decide, after hearing seven weeks or more of evidence, whether the state has met its burden. The state is wrapping up its presentation to the judge. Lawyers for the patients, who agree the Maine mental health system has improved over the past decade, are expected to begin making their case this week that state mental health officials still have not delivered on the promise of a radically different system of care for the mentally ill based on individualized, flexible community mental health care in the least restrictive setting possible, the KJ & Sentinel Online states. "We want all individuals, regardless of their disabilities, to know what resources are available and how to access those resources," Martha Kluzak, the Department of Behavioral and Developmental Services' housing coordinator for central Maine told KJ & Sentinel Online. However, Helen Bailey, an Augusta attorney representing former AMHI patients and public policy director of the Disability Rights Center, questioned Ms. Kluzak about the way department officials spent discretionary housing funds and whether members of the class of former AMHI patients protected by the consent decree knew the money was available and how to apply for it, KJ & Sentinel Online reports. PRE-PAID LEGAL: Plaintiffs Voluntarily Dismiss OK Derivative Lawsuit -------------------------------------------------------------------- Plaintiffs in a shareholder derivative action brought by certain shareholders in the United States District Court for the Western District of Oklahoma on behalf of Pre-Paid Legal Services, Inc. (NYSE:PPD) voluntarily dismissed the suit, subject to approval by the Court. The action charged certain Pre-Paid directors and officers with breaches of fiduciary duty. The complaint alleged, among other things, accounting misconduct and alleged waste of corporate assets of the Company which was alleged to have occurred between March 18, 1999 and May 15, 2001. The complaint alleged similar wrongdoings as alleged in a securities fraud lawsuit which has been dismissed and is currently on appeal. The individual defendants in the shareholder derivative action were: (1) Harland C. Stonecipher, (2) Randy Harp, (3) Shirley A. Stone, (4) Peter K. Grunebaum, (5) Martin H. Belsky, (6) Wilburn L. Smith, (7) Kathleen S. Pinson, (8) David A. Savula, (9) John W. Hail, and (10) John A. Addison The shareholders who originally brought this action have filed a notice of voluntary dismissal of the action which must be approved by the Court. The plaintiffs have also sold their shares in the Company and thus no longer have the legal standing necessary to continuing prosecuting it. On June 10, 2002, Defendants filed a Motion to Dismiss the Consolidated Amended Verified Shareholder Derivative Complaint, asserting, among other things, that the complaint was unfounded and premature because plaintiff's purported injury and damage claim were based primarily on the securities class action referred to above, which was dismissed with prejudice. The motion to dismiss further asserted that the claims were barred by: (i) the director protection provisions of Pre-Paid's Articles and the Oklahoma General Corporation Act; (ii) the Oklahoma General Corporation Act's protection of directors from liability for actions taken in reliance on experts; (iii) the Business Judgment Rule's presumption that the directors acted on an informed basis, in good faith, and in what they believed to be in the best interest of the corporation; and (iv) plaintiffs' failure to make a demand on the Board of Directors before filing the lawsuit. Plaintiffs sought voluntary dismissal of this action and did not file a brief in opposition to the motion to dismiss. The proposed dismissal does not involve the payment of any money for costs in bringing the action or the payment of any attorney fees. For more details, contact Tanya Autry of Emerson Poynter, LLP by Mail: P.O. Box 164810, Little Rock, AR 72216-4810 by Phone: 1-800-663-9817 by E-mail: tanya@emersonfirm.com or contact Curtis L. Bowman of Cauley Geller Bowman & Coates LLP by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 RURAL CELLULAR: Investors File Several Securities Fraud Lawsuits in MN ---------------------------------------------------------------------- Rural Cellular Corporation faces several securities class actions filed in the United States District Court in Minnesota, alleging that the Company and some of its officers and directors issued false and misleading statements about the company's business and financial condition, which caused the company's shares to sell at artificially inflated levels, echopress.com reports. According to allegations by one of the lawsuits, the Company: (1) deceived the investing public regarding Rural Cellular's business, operations and management and the intrinsic value of Rural Cellular common stock, and (2) caused plaintiffs and members of the class-action lawsuit to purchase Rural Cellular common stock at artificially inflated prices. One law firm, Reinhardt & Anderson of St. Paul, is enlisting investors in a timeline between May 7, 2001 and November 12, 2002. Another firm, Schiffrin and Barroway, is seeking investors from January 6, 2002 to November 13, 2002, echopress.com reports. The timelines are different because different law firms determined varying times in which they feel the Company was giving out incomplete information. It is not known at this point as to how many investors will be part of the suits. Rural Cellular Corporation was contacted by the Echo Press about the pending lawsuit, but a company representative said the company would not make a statement about the allegations. SANDATA TECHNOLOGIES: Executes Settlement of Securities Fraud Lawsuit --------------------------------------------------------------------- Sandata Technologies, Inc. executed a stipulation of settlement with the members of its Board of Directors and the plaintiffs in a consolidated securities class actions pending in the Court of Chancery of the State of Delaware. The consolidated suit alleges that the defendants breached their fiduciary duties to the Company and its public stockholders in connection with Sandata Acquisition Corporation's August 5, 2002 proposal to acquire all of the outstanding public shares of the Company. The consolidated actions also allege, among other things, that the directors serving on the Special Committee of the Board of Directors of Sandata are not independent and that the consideration to be received under Sandata Acquisition Corporation's proposal is inadequate. The Stipulation of Settlement provides generally for the dismissal of the consolidated actions and release of any and all causes of action or claims, among other things, that any of the plaintiffs or members of the class have against any defendant or their affiliates, including, among others, any of their associates, officers, directors, attorneys, investment bankers, investment advisors and valuation experts, including Sandata Acquisition Corporation and Brean Murray, among others, arising out of any of the Agreement and Plan of Merger, dated as of October 28, 2002, by and among Sandata, Sandata Acquisition Corp., Bert E. Brodsky, Hugh Freund and Gary Stoller, the merger, or any of the transactions contemplated thereby, the negotiation thereof, and any public filings or statements by the defendants contained in any of the above. In consideration for the dismissal of the consolidated action and release of all causes of action and claims, Sandata Acquisition Corporation agreed to increase the merger consideration from $1.91 to $2.21 per share of Sandata common stock. The Stipulation of Settlement further provides that the consolidated actions will be maintained as a class action by the plaintiffs, without the right of any of the members of the class to opt out. The parties agreed to file the Stipulation of Settlement with the Delaware Chancery Court as soon as practicable. The Company agreed to mail notice to the members of the class who were stockholders of record at any time from August 5, 2002, through the date of the merger. The defendants to the consolidated action also agreed not to oppose an application by the plaintiffs to the Delaware Chancery Court for plaintiffs' attorneys' fees and expenses not to exceed $60,000. If the Delaware Chancery Court approves the settlement, the parties agreed to move the court for an Order and Final Judgment: (1) approving the settlement as fair, reasonable, adequate and in the best interests of the class and directing consummation of the settlement in accordance with its terms; (2) formally certifying the class; (3) dismissing the consolidated action with prejudice as against the plaintiffs and all members of the class; (4) permanently barring and enjoining the members of the class from instituting any action or other proceeding in any court in any jurisdiction that in any way relates to the settled claims; (5) authorizing plaintiffs' counsel to execute a release of settled claims on behalf of the members of the class; (6) awarding plaintiffs' counsel such fees and expenses as the court deems appropriate and (7) reserving jurisdiction over all matters relating to the administration and consummation of the settlement. The Stipulation of Settlement is subject to final approval of the settlement by the Delaware Chancery Court of which there can be no assurances. Following the execution of the Stipulation of Settlement, Sandata, Sandata Acquisition Corporation and Mr. Brodsky, Mr. Freund and Mr. Stoller executed a First Amendment to the Agreement and Plan of Merger, dated as of January 27, 2003. The Amendment increases the merger consideration to be paid to the unaffiliated stockholders of Sandata in the merger from $1.91 to $2.21 per share of Sandata common stock. SOUTH CAROLINA: High Court Decertifies SC Suit Over Return Tax Refunds ---------------------------------------------------------------------- South Carolina's Supreme Court reversed a lower court's ruling granting certification to a lawsuit filed by 10 Upstate taxpayers, over the state revenue department's return tax refunds, the Island Packet Online reports. The court ruled that Spartanburg County Circuit Court Judge Gary Clary went too far when he ordered the Revenue Department return tax refunds seized to pay debts several years ago. The court reminded it to the state court for a new hearing. A 1995 law allowed the agency to take money owed to county hospitals, local governments, universities and the Internal Revenue Service out of state income tax refunds, Revenue Department Spokesman Danny Brazell told the Island Packet Online. The Revenue Department charges a $25 fee, and local governments and other eligible agencies can add their own fees, said Kenneth Anthony Jr., a lawyer for the taxpayers. However, the justices ruled the agencies weren't entitled to charge those fees. They also said the agencies' collection notices sent to taxpayers didn't comply with the 1995 law, which was amended in 1999 to improve notification, the Island Packet Online states. There are about 30 named defendants in the suit, including a number of county hospitals, the Municipal Association of South Carolina and the South Carolina Association of Counties. TERRORIST ATTACK: Plaintiffs Seek Revision Of Compensation Fund Rules --------------------------------------------------------------------- On one of those crisp, clear fall mornings that people want to remember, people went about the ordinary business of going to work, but that was a morning no one want to remember, one different from all others, and not to be forgotten- it was September 11, 2001. Now, seven plaintiffs, wives and parents of seven of the deceased victims who were busy at work in the north tower of the World Trade Center on that fateful morning, are seeking a declaratory judgment setting forth their rights because of alleged violations by defendants of the legislation creating the September 11th Victim Compensation Fund (Fund), according to court documents recently filed. Where necessary, the plaintiffs seek injunctive relief mandating that defendants rescind the complained of rules, regulations, criteria and methodologies now implementing the administration of the Fund and adopt substitutes that are in compliance with the legislation which created the Fund; namely, the Air Transportation Safety and System Stabilization Act of 2001(ACT), according to court documents filed recently. John F. Cambria, an attorney with the law firm Salans, in New York, has filed the class action complaint for this case, June Colaio v. Special Master Kenneth R. Feinberg, in the US District Court, Southern District of New York. The Fund is an unlimited government fund, which provides essentially a no-fault alternative to private tort litigation against the involved airlines and others. The Act does not provide for a cap to be placed on either the individual compensation awards or on the total amount of the Fund. It is limited to individuals who suffered physical injuries or death as a result of the terrorist attacks on the World Trade Center, the Pentagon, or the crash near Shanksville, Pennsylvania. The Act provides for a Special Master, appointed by the United States Attorney General and not subject to Senate confirmation, who is to be responsible for all aspects of the Fund's administration. The Special Master's tasks include drafting rules and regulations for the Fund, as well as drafting the criteria and methodologies to be employed in the computing of the awards. The Act directs the Special Master to determine the extent of harm the plaintiff has suffered because of the death of the victim, "including any economic and non-economic losses and the amount of compensation to which the claimant is entitled based on the harm to the claimant, the facts of the claim and the individual circumstances of the claimant." Further, the Special Master is given responsibility for being the sole decision maker with regard to individual compensation awards. The Special Master's compensation determinations are "final and not subject to judicial review." The Act also directs the Special Master to reduce the amount of a claimant's compensation "by the amount of the collateral source compensation the claimant has received or is entitled to receive as a result of the airplane crashes." Collateral sources would include "life insurance, pension funds, death benefit programs, and payment by Federal, State or local governments related to the September 11 terrorist attacks." No punitive damages may be awarded by the Special Master, and no negligence or any other theory of theory of liability is to be considered in the award determination. The complaint alleges that the conduct of the named defendants, Special Master, Kenneth R. Feinberg, United States Attorney John Ashcroft and the Department of Justice, "has been arbitrary, capricious, an abuse of discretion and not in accordance with law." The complaint alleges, more specifically, that the defendants have promulgated rules and regulations and adopted criteria and methodologies purporting to implement the intentions of the Act and administer the Fund, which not only violate the Act's intentions but also violate the statutory law of the state of New York. Defendants continue these violations, contends the complaint, by: (1) calculating, limiting and awarding compensation for economic loss on the basis of after-tax earnings in contravention of New York law; (2) calculating, limiting and awarding compensation for economic loss for decedents who were not married at the time of their deaths by applying an arbitrary and unreasonable consumption rate in contravention of New York law; (3) calculating, limiting and awarding compensation for economic loss for decedents by utilizing as 'average earnings' a 1998- 2000 three-year income average and disregarding annualized earnings for 2001, and refusing to consider any elements of compensation other than salary and bonus in contravention of New York law; and (4) failing to calculate, or to promulgate rules and regulations, or to develop methodologies and schedules for awarding compensation for economic loss for decedents whose 'average earnings' exceeded the 98th percentile of individual income in the United States in 2000, and by instituting a de facto, arbitrary and unreasonable cap on any individual award in contravention of New York law." Plaintiffs assert, as well, that defendants have violated the Act, because the Act requires that awards of economic loss be made in accordance with applicable state law. The plaintiffs therefore are asking the court for a judgment declaring that the complained of rules and regulations, purporting to implement the Air Transportation Safety and System Stabilization Act of 2001 and to administer the September 11th Victim Compensation Fund of 2001, as well as the complained of criteria and methodologies for calculation of individual compensation awards, developed by the defendants are in violation of the Act. They ask, as well, that the court order preliminary and injunctive relief, mandating, as described earlier above, that "defendants rescind the complained of rules, regulations, criteria and methodologies and adopt substitutes that are in compliance with the provisions of the Act." Plaintiffs seek also an award of class action attorneys fees and costs. TOBACCO INDUSTRY: Vector Releases Nicotine-Reduced Cigarettes To Market ----------------------------------------------------------------------- The first tobacco CEO to acknowledge smoking is addictive is offering a new cigarette made with genetically modified tobacco that lets smokers choose their level of nicotine, the Aberdeen American News (SD) reports. Vector Tobacco Inc. stops short of marketing its Quest cigarettes as a smoking-cessation product. Such a claim could draw the regulatory attention of the Food and Drug Administration. The cigarettes are designed, however, to allow smokers to cut back on nicotine, the addictive element in tobacco. "The purpose of this product is to help people get to a nicotine-free environment, where they can have zero in their system. Then they can decide what to do from that point forward," said Bennett LeBow, who runs parent company Vector Group Ltd. The company is now spending $15 million on advertising for Quest in seven Mid-Atlantic and Mid-West states. It also is funding research at Duke University on how Quest affects smokers' nicotine intake and urge to smoke. "Quest is an intriguing curiosity," said Kenneth Warner, a public health professor and director of the University of Michigan Tobacco Research Network, which studies smoking and health. "Whether Quest could be used by smokers to consciously wean themselves off smoking remains to be seen, but it seems worthy of study." Mr. LeBow's other tobacco company, Mebane-based Liggett Group, was the first to break ranks with Big Tobacco and settle smoking-related litigation in 1996. Mr. LeBow was the first tobacco CEO to acknowledge that smoking is addictive and causes serious health problems. A Supreme Court ruling in 2000, that bars the FDA from regulating the tobacco industry, allows Vector to put Quest on the market without the extensive testing required of a stop-smoking product categorized as a drug. This will remain the case as long as Quest makes no claim to being a smoke-cessation product. UNITED MEDICAL: Liquidator Says Doctors' Lawsuit Is "Counterproductive" ----------------------------------------------------------------------- Provisional liquidator of collapsed medical insurer United Medical Protection, David Lombe criticized the class action proposed by a group of doctors against the Company, saying it is counterproductive to the future of the insurer and its members, ABC Business News reports. A group of doctors commenced the suit in response to UMP's request in 2000 that they pay an additional premium, an earlier Class Action Reporter story states. 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 Dr. Michael Levitt, one of the plaintiffs, told ABC "If we win and (they) have to refund $74 million to doctors then in fact they will be presumably insolvent." The Australian Medical Association says if UMP's recovery is derailed, hundreds of doctors would be left uninsured. "I don't think that the total derailing of UMP would be in the medical profession's or in the public's best interest," the AMA's Dr Michael Sedgley told ABC. WYETH: Colorado Woman Files Suit Over Hormone Replacement Pill Effects ---------------------------------------------------------------------- Pharmaceutical giant Wyeth faces a federal suit filed by a Crawford, Colorado woman, over the hormone replacement pill Prempro, in the United States District Court in Denver, Colorado. Clinical trials on Prempro were halted last year because of health risks to women. Lead plaintiff Pennie Alexander, 58, told Rocky Mountain News Prempro nearly killed her. She developed blood clots and spent a week in intensive care. "This company said it was the best thing that could happen to me," she said. "For about seven years everything was great, and then in a matter of hours I was in major trouble." Ms. Alexander continued by saying that in August last year, just after clinical trials of Prempro were stopped, she fell ill. The blood clots had traveled from her lungs to her heart, she said. "I'm healthy now, but to be taken down in a matter of hours is scary," she asserted. Ms. Alexander's husband, Lee searched the Internet for information on Prempro and discovered lawsuits filed elsewhere in the country and the name of Kansas City law firm Stueve Helder Siegel. The Web site of the Kansas City firm, Stueve Helder Siegel, asks women who have taken Prempro to join the case. Other law firms also have filed large lawsuits against Prempro's manufacturer, pharmaceutical giant Wyeth, in California and elsewhere, Rocky Mountain News reports. An estimated 6 million women have taken hormone replacements. About half of them were taking Prempro before the trials were halted last summer. Officials of New Jersey-based Wyeth could not be reached Monday, but its Web site contains a January 8 announcement that the US Food and Drug Administration had approved Prempro's new warning label. Prempro, which contains the hormones estrogen and progestin, is approved by the FDA for treatment of hot flashes, night sweats, vaginal dryness and osteoporosis, Rocky Mountain News reports. New Securities Fraud Cases AEGON NV: Milberg Weiss Files Securities Violations Suit in S.D. NY ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Aegon N.V. (NYSE: AEG) between August 9, 2001 to July 22, 2002, inclusive, in the United States District Court for the Southern District of New York against the Company, Don Shepard, Kees Storm and Jos B.M. Streppel 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 August 9, 2001 to July 22, 2002. Aegon, through its member companies, is an international insurer. During the years preceding the class period, and during the class period, as stock markets suffered substantial declines, increasing numbers of investors gravitated from variable products to fixed products. Aegon distinguished itself from its competitors with the claim that its purportedly broad product mix better enabled it to take advantage of this market shift while it simultaneously assured investors that it had sufficient reserves to fund the sharply increasing guaranteed payout obligations required by its fixed products. The complaint further alleges that Aegon also assured investors that it was less vulnerable to the vicissitudes of the equity and credit markets than competitors because the Company matched "high quality investment assets . in an optimal way to the corresponding insurance liability, taking into account currency, yield and maturity characteristics," The Company claimed that, for the foregoing reasons, "(c)onsistency and reliability in earnings forecasting is a particular source of pride" and that, while not immune to equity and real estate market shifts, the Company was not subject to sharp downward variations in annual net income. Accordingly, the Company reduced its earnings guidance for 2002 but at all relevant times maintained its forecast that 2002 net income would at least equal 2001 net income. The class period ends on July 22, 2002. The complaint alleges that, on that date, the Company shocked the market, announcing that 2002 net income would not equal 2001 net income but, on the contrary, would be 30% to 35% lower than 2001 net income. On this news, Aegon shares declined from a closing price of $16.99 on Friday, July 19, 2002 to a closing price of $13.25 on Monday, July 22, 2002, when trading resumed. 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: aegon@milbergNY.com or visit the firm's Website: http://www.milberg.com AMERICREDIT CORPORATION: Schiffrin & Barroway Files TX Securities Suit ---------------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Northern District of Texas on behalf of all purchasers of the common stock of the AmeriCredit Corporation (NYSE:ACF) from April 14, 1999 through January 15, 2003, inclusive. The complaint alleges that AmeriCredit and certain of its officers and directors with violations of the Securities Exchange Act of 1934. AmeriCredit purchases auto finance contracts without recourse from franchised and select independent automobile dealerships, and, to a lesser extent, makes loans directly to consumers buying used and new vehicles. Among other things, plaintiff alleges that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of AmeriCredit's revenues and earnings caused AmeriCredit's stock price to become artificially inflated, causing huge damages for investors. 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 Marc A. Topaz or Stuart L. Berman by Phone: (888) 299-7706 (toll free) or (610) 667-7706 by E-mail: info@sbclasslaw.com ARIBA INC.: Marc Henzel Commences Securities Fraud Lawsuit in N.D. CA --------------------------------------------------------------------- The Law Of Marc S. Henzel 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: ARBA) publicly traded securities during the period between January 11, 2000 and January 15, 2003. The complaint charges Ariba and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ariba is a spend-management software solutions provider. Ariba provides software, services and network access to enable corporations to evaluate and manage the cash costs associated with running their business. On January 15, 2003, the Company issued a press release entitled, "Ariba Provides Update on Accounting Review and Restatement of Financial Statements." The press release stated in part: "Ariba, Inc. announced today that it will restate its financial statements for the fiscal years ended September 30, 2001 and 2000 and for the quarters ended March 31, 2000 through June 30, 2002 as a result of an ongoing review of accounting matters." While Ariba's financial statements were admittedly false, the Company's top officers and directors took advantage of this and sold nearly $692 million worth of their Ariba shares to the unsuspecting public. 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. BIO-TECHNOLOGY GENERAL: Rabin Murray Lodges Securities Suit in NJ Court ----------------------------------------------------------------------- Rabin Murray & Frank LLP initiated a securities class action in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Bio- Technology General Corporation securities (Nasdaq:BTGC) during the period from April 19, 1999 through August 2, 2002, both dates inclusive. The suit names the Company, Sim Fass, Christopher G. Clement, and Yehuda Sternlicht as defendants. The suit alleges that defendants BTG 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. Specifically, the Complaint alleges that on August 2, 2002, defendants announced that the Company's reported financial results for fiscal years 1999, 2000 and 2001 would be restated to eliminate revenue that had been improperly recognized. BTG has admitted that in 1999 through 2001, it inappropriately recorded revenue in certain transactions, including shipments to distributors where significant uncertainties existed concerning realization of the invoiced amounts. As a result of defendants' allegedly false and misleading statements during the class period, shareholders acquired shares of BTG at artificially inflated prices, and were damaged thereby. For more details, contact Eric Belfi and Sharon Lee by Mail: 275 Madison Avenue, New York, NY 10016, by Phone: (800) 497-8076 or (212) 682-1818, by Fax: (212) 682-1892, or by E-mail: email@rabinlaw.com or visit the firm's Website: http://www.rabinlaw.com CABLE & WIRELESS: Pomerantz Haudek Commences Securities Suit in E.D. VA ----------------------------------------------------------------------- Pomerantz Haudek Block Grossman & Gross LLP initiated a securities class action in the United States District Court for the Eastern District of Virginia, case number 03 CV 108A, against Cable & Wireless PLC (NYSE:CWP) and the Company's Chief Executive Officer and a member of its Board of Directors on behalf of investors who purchased the securities of CWP during the period between 1999 and December 6, 2002, inclusive. The complaint alleges that CWP, a global telecommunications business with customers in 80 countries, including the United States, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements touting CWP's cash-rich position, numerous all cash acquisitions of companies, and the benefits of its August 6, 1999 sale of its 50% ownership stake in One 2 One, a mobile telecommunications operator, to Deutsche Telekom. Defendants, however, failed to disclose a critical contractual term relating to its disposition of One 2 One, which obligated the Company to set aside 1.5 billion Pounds or $2.4 billion in cash once the Company's long-term debt rating fell below a certain threshold. Specifically, the contract contained an indemnification clause that would obligate CWP to cover any potential tax liabilities arising out of the sale. Contained in that indemnification was a trigger mechanism whereby any future downgrade of CWP long-term debt rating below a predetermined level would activate the 1.5 billion Pounds obligation on behalf of CWP. On December 6, 2002, CWP shocked the market when it announced that a downgrade by Moody's Investment Service (Moody's) on its long-term debt rating had triggered its obligation to escrow 1.5 billion Pounds in cash. It was only on December 6, 2002, that the Company disclosed its 1.5 billion pounds contingent liability. As a result of the disclosure, the stock price of CWP fell $1.57 from $3.90 to a closing price of $2.33, a single-day drop of 40%. 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 MERILL LYNCH: Schatz & Nobel Commences Securities Fraud Suit in S.D. NY ----------------------------------------------------------------------- Schatz & Nobel PC initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased shares of Merrill Lynch Focus Twenty Fund (Nasdaq: MAFOX thorough MDFOX) from Focus Twenty's initial public offering (which took place on or about March 3, 2000) through December 23, 2002, inclusive. The suit alleges that, in connection with the issuance of shares in the Fund, Merrill Lynch made materially false statements and omissions in the Registration Statement and Prospectus. Based on e-mails and other Merrill Lynch communications made public as a result of the investigation conducted by the New York State Attorney General, the Complaint alleges that defendants misled investors by issuing favorable analyst reports regarding the underlying securities when they allegedly knew that the positive recommendations were unwarranted. Specifically, Merrill Lynch failed to disclose that it had and was continuing to seek investment-banking relationships with a number of the companies whose securities were part of the Fund's portfolio. Defendants also omitted to disclose that they had served as underwriters for certain of the companies in the Fund's portfolio. Unbeknownst to investors, Merrill Lynch's recommendations and investments in companies in the Fund's portfolio were influenced by its efforts to attract lucrative investment banking business from those same companies. For more details, contact Nancy A. Kulesa by Phone: 1-800-797-5499 by E-mail: sn06106@aol.com or visit the firm's Website: http://www.snlaw.net TELLIUM INC.: Rabin Murray Commences Securities Fraud Suit in NJ Court ---------------------------------------------------------------------- Rabin, Murray & Frank LLP initiated a securities class action in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Tellium, Inc., (Nasdaq:TELM) common stock during the period from May 17, 2001 through February 1, 2002, both dates inclusive. The Company, certain of its officers and directors, and Morgan Stanley Dean Witter & Co. are named as defendants in the action. The suit alleges that defendants violated the Securities Act of 1933 by making a series of false and misleading statements and omissions of material fact contained in the Company's registration statement and prospectus for the issuance and initial public offering of Tellium common stock on May 17, 2001. Specifically the Prospectus touted the Company's $300 million agreement with Qwest Communications Corporation (Qwest), stating, for example, that Qwest had committed to "purchase a minimum of $300 million of our optical switches over the first three years of the contract." The prospectus failed to disclose that Qwest agreed to purchase Tellium products in exchange for lucrative shares of Tellium in its initial public offering and that Qwest did not need the large number of switches they had ordered and, in fact, had no strong obligation to purchase more switches in the future. As a result of defendants' allegedly false and misleading statements and omissions of material fact in Tellium's Prospectus, shareholders acquired shares of Tellium common stock at artificially inflated prices, and were damaged thereby. For more details, contact Eric J. Belfi or Sharon Lee by Mail: 275 Madison Avenue, New York, NY 10016, by Phone: (800) 497-8076 or (212) 682-1818, by Fax: (212) 682-1892, or by E-mail: email@rabinlaw.com. VERITAS SOFTWARE: Schiffrin & Barroway Files Securities 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 VERITAS Software Corporation (Nasdaq:VRTS) publicly traded securities during the period between January 24, 2001 and January 16, 2003, inclusive. The complaint charges VERITAS Software Corporation and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that: (1) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing; (2) the Company had improperly accounted its transaction with AOL Time Warner; (3) the Company's improper treatment of its transactions and revenue recognition policies resulted in material overstatement of revenue and income at all relevant times. The scheme deceived the investing public regarding Veritas's business, operations and management and inflated the intrinsic value of the Company's shares. On January 17, 2003, the Company announced the restatement of its 2000, 2001 and 2002 financial statements as a result of its improper accounting for transactions with AOL Time Warner. The release stated in part: "(t)he transactions involved in a $50 million software purchase by AOL and a $20 million advertising services purchase from AOL." For more details, contact Marc A. Topaz or Stuart L. Berman by Phone: (888) 299-7706 (toll free) or (610) 667-7706 by E-mail: info@sbclasslaw.com or visit the firm's Website: http://www.sbclasslaw.com VERITAS SOFTWARE: Marc Henzel Commences Securities Lawsuit in N.D. CA --------------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Northern District of California on behalf of purchasers of VERITAS Software Corporation (NASDAQ: VRTS) publicly traded securities during the period between January 24, 2001 and January 16, 2003. The complaint charges VERITAS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. VERITAS is a software storage company that provides data protection, storage management and disaster recovery software. The complaint alleges that on January 17, 2003, the Company announced the restatement of its 2000 and 2001 financial statements as a result of its improper accounting for transactions with AOL Time Warner in 2000. The release stated in part: "(t)he transactions involved in a $50 million software purchase by AOL and a $20 million advertising services purchase from AOL." While VERITAS' financial statements were admittedly false and its stock price artificially inflated, the Company's top officers and directors took advantage of this and sold nearly $15 million worth of their VERITAS shares to the unsuspecting public. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone: (888) 643-6735 or (610) 660-8000, by Fax: (610) 660-8080, by E-mail: Mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182. VERITAS SOFTWARE: Cauley Geller Lodges Securities Fraud Suit 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 VERITAS Software Corporation (Nasdaq: VRTS) publicly traded securities during the period between January 24, 2001 and January 16, 2003, inclusive. The complaint charges VERITAS Software Corporation and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that: (1) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing; (2) the Company had improperly accounted its transaction with AOL Time Warner; (3) the Company's improper treatment of its transactions and revenue recognition policies resulted in material overstatement of revenue and income at all relevant times. The scheme deceived the investing public in relation to VERITAS' business, operations and management and inflated the intrinsic value of the Company's shares. On January 17, 2003, the Company announced the restatement of its 2000, 2001 and 2002 financial statements as a result of its improper accounting for transactions with AOL Time Warner. The release stated in part: "(t)he transactions involved a $50 million software purchase by AOL and a $20 million advertising services purchase from AOL." 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/library/user--images/veritas.pdf ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2002. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re- mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. 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