CAR_Public/030310.mbx                C L A S S   A C T I O N   R E P O R T E R
  
                 Monday, March 10, 2003, Vol. 5, No. 48

                              Headlines                            

AMERICAN IMAGE: Fairness Hearing For Securities Suit Set May 2003 in NY
ATICO INTERNATIONAL: Recalls 37,000 Electrical Hot Pots For Burn Hazard
BLOCKBUSTER INC.: CA Court Says Late Fees Not Penalty in Consumer Suit
CANADA: Alberta Bill Allowing Class Actions Pushed, Met With Criticism
CANADA: 1,000 Farmers Commence Suit V. Genetically Modified Seed Giants

CANADA: Pensioners Commence Suit Against Ontario Transport Commission
CANADIAN PACIFIC: Ontario Residents Begin Suit Over Train Derailment
COMPAQ COMPUTER: Parliament Member Calls For Probe Over Defective PCs
FRIEDMAN'S INC.: Black Workers File Racial Discrimination Lawsuit in MD
JP MORGAN: Dismisses Bankers For Sexually Harassing Woman Co-Worker

MAKITA U.S.A.: Recalls 350,000 Electric Orbit Sanders for Injury Hazard
MARYLAND: State Judge Refuses To Halt University System's Tuition Raise
MONTANA: Parents File Suit Over Videotaping In High School Locker Rooms
MOTOROLA INC.: MD Court Dismisses Suits Over Radiation in Cell Phones
NEBRASKA: Judge Rejects Motion For Temporary Reinstatement of Medicaid

PROGRESSIVE CORPORATION: Claims Representatives To Join Overtime Suit
RARE MEDIUM: Court Hears Appeal of Dismissal of New York Investors Suit
RARE MEDIUM: Asks NY Court To Dismiss Lawsuit For Securities Violations
RARE MEDIUM: Plaintiffs Ask That Suit Be Remanded To Kansas State Court
RHODE ISLAND: Nightclub Fire To Spawn Suits, Claims To Reach $1 Billion

UNITED STATES: Cherokee Chief Appointed Special Trustee Of Trust Funds


                     New Securities Fraud Cases


CARREKER CORPORATION: Wolf Haldenstein Files Securities Suit in N.D. TX
CARREKER CORPORATION: Kaplan Fox Commences Securities Suit in E.D. TX
CARREKER CORPORATION: Federman & Sherwood Lodges Securities Suit in TX
INTERCEPT INC.: Cauley Geller Commences Securities Lawsuit in N.D. GA
PROVIDENT FINANCIAL: Schiffrin & Barroway Lodges Securities Suit in OH

ROYAL AHOLD: Finkelstein Thompson Commences Securities Suit in E.D. VA
UNUMPROVIDENT CORPORATION: Emerson Poynter Lodges Securities Suit in TN
VITALWORKS INC.: Cauley Geller Commences Securities Lawsuit in CT Court
VITALWORKS INC.: Schiffrin & Barroway Files Securities Suit in CT Court

                            *********

AMERICAN IMAGE: Fairness Hearing For Securities Suit Set May 2003 in NY
-----------------------------------------------------------------------
The United States District Court for the Southern District of New York
will hold a fairness hearing on the settlement of the securities class
action filed against American Image Motor Co., Inc. on behalf of all
purchasers of its common stock from September 23,1996 through March
13,1997, on May 6, 2003.

The hearing will determine:

     (1) whether the proposed Settlement of the captioned class action
         lawsuit, including the plan of Allocation, should be approved
         by the court as fair, reasonable and adequate;

     (2) whether the Litigation should be dismissed on the merits and
         with prejudice against the Settling Defendants pursuant to the
         terms of the Stipulation; and

     (3) whether Lead Counsel's application for fees and expenses
         should be granted.

For more information, contact Claims Administrator, American Image
Securities Litigation by Mail: c/o Berdon LLP, P.O. Box 9014, Jericho,
NY 11753-8914 by Phone: (800) 766-3330 by Fax: (516) 931-0810 or visit
the firm's Website: http://www.berdonllp.com/claims


ATICO INTERNATIONAL: Recalls 37,000 Electrical Hot Pots For Burn Hazard
-----------------------------------------------------------------------
Atico International USA, Inc. is cooperating with the United States
Consumer Product Safety Commission (CPSC) by voluntarily recalling
about 37,000 electrical hot pots.  The bottom of the hot pot can
separate from the top, which could pose a serious burn hazard to
consumers.  The Company has received five reports of the hot pots
separating, though no injuries have been reported.
        
The recalled Kitchen Gourmet(r) Hot Pots, which are used to heat
beverages, are made of white plastic and have a date code of 0702 on
the bottom of the pot and box.  The hot pots, which are shaped like a
pitcher, also have the words, "Kitchen Gourmet," "Do Not Immerse in  
Water," and "Made in China" printed on the bottom
        
Walgreens stores nationwide sold the hot pots from September 2002
through January 2003 for about $10.
        
For more details, contact the Company by Mail: 501 S. Andrews Ave., Ft.
Lauderdale, Fla. 33301, by Phone: (800) 645-3867 between 9 am and 5 pm
ET Monday through Friday or visit the firm's Website:
http://www.aticousa.com.


BLOCKBUSTER INC.: CA Court Says Late Fees Not Penalty in Consumer Suit
----------------------------------------------------------------------
Alameda County Superior Court judge Ronald M. Sabraw ruled in favor of
video rental chain Blockbuster, Inc. in a class action filed over the
chain's late fees, the Associated Press reports.

The suit, filed by Sharon Pickens, objected to the chain's late fees,
saying the chain made unfair profits with them.  Several other similar
lawsuits have been filed against the Company.  Judge Sabraw ruled that
Blockbuster's late fees were not a penalty and it's up to consumers
whether to keep rented videos beyond the initial rental period.

In 2000, 16 percent of Blockbuster's revenue were from late fees but
the company no longer breaks out that figure, Blockbuster spokesman
Randy Hargrove told AP.  Edward B. Stead, Blockbuster's general
counsel, said the ruling confirmed that challenges to the late fees
"have no merit and are being driven by the plaintiffs' lawyers."

In a separate suit, a state district court judge in Beaumont approved a
settlement in January 2002 that called for Blockbuster to issue
discount coupons to more than 38 million customers, but lawyers for
some plaintiffs are appealing that ruling.


CANADA: Alberta Bill Allowing Class Actions Pushed, Met With Criticism
----------------------------------------------------------------------
The province of Alberta, Canada took steps to become the seventh
province to adopt class action legislation, canoe.ca reports.  The
legislation, however, was criticized by consumer groups and lawyers,
who claim that it fails to measure up to the bills in other provinces.

MLA Brent Rathgeber, who introduced the bill Thursday, had earlier said
it would be based on a model act developed by the Uniform Law
Commission, but it quickly became apparent that wasn't the case.  
Justice Minister David Hancock told canoe.ca that Alberta's legislation
will require that the person who launches the class action will be
responsible for all the costs of the litigation.

Minister Hancock continued that the province chose this process because
of fears expressed by some that the legislation would encourage a
proliferation of lawsuits.  "People see litigation in the States all
the time and it was raised with me by people in the public their
concern that someone can bring a lawsuit over almost everything," he
said.

Margaret Shone, who researched class action laws for the Alberta Law
Reform Institute, said the province went against the institute's
recommendation for a no-cost process.  "Our board felt a no-cost
process would operate more fairly," she told canoe.ca.

Quebec (1978) and Ontario (1992), the first two provinces with class
action laws, have established funds that plaintiffs can use to cover
court costs.  Provinces that have proclaimed class action legislation
more recently - British Columbia, Saskatchewan, Newfoundland and
Manitoba - have implemented a no-cost process that doesn't make either
the plaintiff or the respondent responsible for the other's court
costs, canoe.ca reports.


CANADA: 1,000 Farmers Commence Suit V. Genetically Modified Seed Giants
-----------------------------------------------------------------------
Canadian farmer Robert Willick, who is leading a class action of 1,000
farmers against seed giants Monsanto, and Aventis recently acquired by
Bayer, warned Australians not to follow the path of genetically
modified (GM) crop production, the Australian Associated Press General
News reported.  Mr. Willick was with Australia's Network of Concerned
Farmers (NCF) as they toured four states in Australia, advocating
action against the production of GM crops.

The tour precedes a pending decision by the officer of the Gene
Technology Regulator on applications from Monsanto and Bayer to grow
herbicide-resistant canola in Australia.  Only two crops, cotton and
carnations, are currently allowed to be grown commercially in
Australia.  It is this decision that Mr. Willick and the NCF hope to
influence so that GM does not spread to Australia.  They seek from the
state governments of Queensland, New South Wales, Victoria and South
Australia a moratorium on GM foods.

Mr. Willick told how he lost the market for his crops because the GM
crops were not wanted by the European market, "Now, Australia can
service that market if it grows non-genetically engineered canola, for
example.  Learn from our experience; consumers don't want it."

Meanwhile, back in Canada, Mr. Willick, who has just completed a three-
year process to gain an organic farming license, is leading a group of
nearly 1,000 organic farmers in Saskatchewan, in a class action against
Monsanto and Bayer.  The lawsuit aims to stop GM wheat and to gain
compensation for losing canola as a crop due to contamination by GM
canola.


CANADA: Pensioners Commence Suit Against Ontario Transport Commission
---------------------------------------------------------------------
The Ontario Northland Transportation Commission (ONTC) faces a
statement of claim for a proposed class action filed in Ontario
Superior Court, charging the Commission tried to take ownership of
money in an employee pension plan, the North Bay Nugget reports.

The Ontario Northland Pensioners' Association, a group of "pensioners
questioning the status of surpluses in their pension fund and the
legality of decisions made by the ONTC regarding their pensions," filed
the suit, seeking restitution from the commission for funds which were
"illegally or inequitably" removed from the fund.  No restitution
amount is mentioned.

The statement further alleges:

     (1) the pension plan had 2,301 members, consisting of 1,041 active
         employees, 1,232 pensioners, 23 deferred members and five
         suspended members as of January 2001.  Its assets were $450.4
         million, including a $136.7-million surplus;

     (2) alleges the commission's predecessor, the Temiskaming and
         Northern Ontario Railway, established an "irrevocable" trust
         in 1939 in the form of a pension fund "and an administrative
         plan to direct the administration of such trust;"

     (3) alleges ONTC has since committed a number of breaches of
         trust.  For example, it says the commission "unilaterally"
         amended the rules of the pension plan to provide for the
         transferring of any "actual or actuarial surplus remaining in
         the trust, or on discontinuance of the trust," to the
         commission "to be used as it may direct."

     (3) alleges the commission amended the pension plan to grant
         itself unilateral power to amend and/or terminate the pension
         plan, "and to allow for the financing of a substantial early
         retirement window using money from the pension fund."

A statement of claim contains allegations which have yet to be proven
in court.  A Superior Court justice must certify the suit as a class
action before it can proceed.  Justice Patricia Hennessy will hear the
motion for certification on June 23.

ONTC spokeswoman Judy Cardoni told the North Bay Nugget the commission
is evaluating the statement of claim.  "It's premature to file a
statement of defence or comment any further," Ms. Cardoni said.


CANADIAN PACIFIC: Ontario Residents Begin Suit Over Train Derailment
--------------------------------------------------------------------
Residents of Shannonville, Ontario filed a class action against
Canadian Pacific Railway in Belleville's Superior Court, over the train
derailment last month, which injured two workers and forced hundreds of
people to evacuate, Canada.com reports.

On February 21, an eastbound train derailed and struck a train on a
siding, causing four large propane tanks to burn and several to
explode.  Hundreds of people evacuated the nearby areas due to fears
that the cars on the eastbound train containing the highly toxic
substance anhydrous ammonia could be breached, leading to a potentially
deadly spill.

The suit, filed on behalf of 500 residents, seeking $22 million in
compensation, alleging environmental contamination, clean-up costs,
loss of property value and other economic damages.  The suit, filed
against the Canadian Pacific Railway Company and Canadian Pacific
Railway Ltd., further alleges negligence on the part of one or both
companies, charging the trains were not properly inspected, ran at
excessive rates of speed, were insufficiently staffed, and were
mechanically unfit for the tracks in that area, Canada.com reports.

None of the allegations have been proven in a court of law and a
statement of defence has yet to be filed by Canadian Pacific. Canadian
Pacific was not immediately available for comment.  Since the
derailment, Canadian Pacific has been distributing claim reports to
area residents so they can be reimbursed for out of pocket expenses
incurred as a result of the accident.  The forms, however, contain a
release that states the signatory waives all rights to further
compensation, Canada.com reports.


COMPAQ COMPUTER: Parliament Member Calls For Probe Over Defective PCs
---------------------------------------------------------------------
Tony Ianno, Member of Parliament for Trinity-Spadina in Canada, sent a
letter to the Hon. Martin Cauchon, Minister of Justice, asking him to
investigate whether the Canadian government should undertake legal
action against Hewlett Packard (HP) subsidiary Compaq Computer
Corporation.

Mr. Ianno issued his call for an investigation in light of the
potential purchase of defective computers by the federal government and
Canadian consumers.  In his letter to the Minister, Mr. Ianno notes the
Government of Canada purchased approximately $300 million worth of
computers from Compaq during a four-year period ending in November
2000.  He urged the Minister to "have the appropriate authorities
investigate whether legal action should be considered here in Canada".

Hewlett Packard is currently under investigation by the US federal
government, as well as by the states of California and Illinois.  They
are also defendants in private class actions alleging the companies
knowingly sold defective computers to millions of American customers.  
The defects involve the silent corruption of Data, which according to
court documents from La Pray et al v. Compaq Computer Corporation in
Beaumont, Texas it "created the potential for the corruption and
possible loss of important documents, spreadsheets or images saved to
floppy disks."

A California lawsuit involves investigations about questionable
payments to key lawyers and witnesses in the case, according to
official documents and press accounts.  Toshiba settled similar
allegations in 1999 for US $2.1 billion.

According to Mr. Ianno, "this matter is of urgency because many of
these computers in question are being used for health care services and
military applications".  Mr. Ianno wants to make certain that if there
are defective chips in the computers sold here, that Canadian
authorities will initiate an action in Canada against these US
companies on behalf of the government to ensure that they are
compensated for their damages, and that, Canadian consumers are treated
equally in the same manner as American consumers.


FRIEDMAN'S INC.: Black Workers File Racial Discrimination Lawsuit in MD
-----------------------------------------------------------------------
National jewelry store chain Friedman's, Inc. faces a federal class
action in the United States District Court in Maryland alleging it
discriminated against African Americans in hiring and promotions, the
Washington Post reports.

Former manager Rondall Mitchell initiated the suit.  Mr. Mitchell
supervised 10 stores in Virginia and later 12 in Maryland, and is
white.  He alleges that he was demoted and received a pay cut because
he hired and retained black employees, against explicit orders to limit
hiring blacks.

At a news conference, Mr. Mitchell said, he was told not to promote
blacks to store manager positions because, he was told, "the first
thing they'll do is hire a lot more like them, and then you'll have an
all-black store."

His attorney Morris J. Baller also said in a statement, "Friedman's has
systematically discouraged African Americans from seeking promotions
and from becoming too large a part of its workforce . This company has
a corporate policy to impose a quota limiting the number of African
American employees in any given store and has retaliated against
managers who have attempted to hire and promote qualified African
Americans."

Attorneys for the plaintiffs say they have a tape recorded by a former
top store manager showing evidence of racial bias, the Post reports.  
One of the Company's manager allegedly criticized black employees and
directed a white manager to transfer blacks to another store.

The United States Equal Employment Opportunity Commission has also
investigated two claims of racial discrimination at Friedman's and has
found that there is "reasonable cause to believe" that racial bias at
the store affected black employees and applicants

Denis Shanagher, an attorney for Friedman's, which is based in
Savannah, Ga., said in a statement that "these charges are
unsubstantiated and without merit."  The retail chain is "an equal
opportunity employer and does not tolerate employment discrimination of
any kind," he said.

Mr. Shanagher said in a telephone interview that the company had
investigated allegations against the manager and that on the basis of
that investigation, the company terminated his employment in October
2000, the Post reports.  "We believe our sales force represents the
communities in which they serve, and it is a diverse workforce," Mr.
Shanagher said.


JP MORGAN: Dismisses Bankers For Sexually Harassing Woman Co-Worker
-------------------------------------------------------------------
Two J.P. Morgan Chase investment bankers were dismissed after they
allegedly sexually harassed a woman who worked with them, current and
former employees at the company told the New York Times.

Bankers Palden Guiyed Namgyal and Norman Gretzinger were dismissed,
after they allegedly made unwanted and inappropriate advances toward a
less-senior female investment banker.  When the woman protested,
another high-ranking investment banker who was there intervened, and
later reported the incident to the firm's personnel department, which
investigated.  Mr. Namgyal was also a managing director at the firm.

The swift and severe disciplinary action comes in the wake of several
class actions filed by women brokers in the 1990s.  Two other big
brokerage firms - Merrill Lynch and the Smith Barney unit of Citigroup,
settled similar class actions.  Another suit, filed by the United
States Equal Employment Commission (EEOC), is pending against another
big securities firm, Morgan Stanley, and a trial is set for later this
year.  

The suits have caused some big investment banks to treat complaints of
sexual harassment more seriously, some people on Wall Street told the
NY Times.  Brokerage firms and trading floors have largely retained
reputations as places where such behavior often goes unpunished.  They
have repeatedly been sued by women who complained of unfair and
sometimes demeaning treatment.

"This goes right under the category of ethics, and we are in a whole
new climate," Janet Hanson, a money manager who founded 85 Broads, a
network of women who have worked at Goldman, Sachs, told The Times.  
"This may just be the beginning of companies' behaving in a very, very
different manner because the liability is too great. The Street is
getting that message."

Kristin C. Lemkau, a spokeswoman for J. P. Morgan, declined to discuss
details of the incident or the dismissals, according to the NY Times.  
Describing the firm's policies, she said, "We do not tolerate sexual
harassment or discriminatory behavior of any kind.  Employees who are
found in violation of the firm's policies are terminated without
exception."

The men, who live in Bronxville, N.Y., declined to comment on their
dismissals, the NY Times reports.


MAKITA U.S.A.: Recalls 350,000 Electric Orbit Sanders for Injury Hazard
-----------------------------------------------------------------------
Makita U.S.A., Inc. is cooperating with the United States Consumer
Product Safety Commission (CPSC) by voluntarily recalling about 350,000
electric orbit sanders.  The pads on the sanders can break apart during
use and strike the operator, posing an injury hazard to consumers.  The
Company has received 13 reports of pads coming apart, including three
minor injuries that resulted from pieces of the pad striking consumers.
        
The recalled sanders include the BO5000 and BO5001 model numbers, which
can be found on the silver nameplate on the sander's body.  The
sander's housing is blue and the name "Makita" appears in large white
letters on the motor housing.  These sanders were manufactured in the
United States.
        
Home centers, hardware stores, and industrial suppliers nationwide
sold the sanders from April 1992 through February 2003 for between $110
and $125.
        
For more details, contact the Company by Phone: (800) 462-5482 between
8 am and 4:30 pm Monday through Friday.


MARYLAND: State Judge Refuses To Halt University System's Tuition Raise
-----------------------------------------------------------------------
Baltimore Circuit Court Judge Stuart R. Berger refused to temporarily
halt a midyear tuition increase by the University System of Maryland,
in response to a class action filed by seven students protesting the 5%
increase at the system's schools, the Baltimore Sun reports.

The students filed the suit over the system's mid-semester tuition
increases, which range from $75 to $500 depending on a student's class.  
The suit purports to be on behalf of all 130,000 students in the
Maryland system, even though not all campuses were affected by tuition
increase, an earlier Class Action Reporter story states.

Judge Berger, however, said he will rule on the legality of the
increase next month.  While the additional cost has caused "significant
harm" for some students, Judge Berger said, it has not caused such
irreparable damage to justify a preliminary injunction.  Instead, he
said, he will rule on the case next month.  If he finds that the
increase is illegal, students who have paid would get a refund, the
Baltimore Sun reports.

Deborah Thompson Eisenberg, a lawyer for the students, told Judge
Berger that this was insufficient notice for students who had enrolled
for this semester based on rates given at the start of the school year.  
"The bottom line is, a surprise surcharge would not be tolerated in the
private marketplace and it should not be tolerated here," she said.

Assistant Attorney General John Anderson countered that officials
alerted students as soon as they realized another budget cut was
likely.  He questioned whether tuition rates given at the school year's
outset are a fixed contract, noting that some university literature
states that rates are changeable, the Baltimore Sun stated.


MONTANA: Parents File Suit Over Videotaping In High School Locker Rooms
-----------------------------------------------------------------------
The parents of several teenage girls who allegedly were secretly
videotaped while undressing in locker rooms at Powell County High
School, in Montana, are taking legal action against the school and the
county, according to Associated Press Newswires.

Alan Blakley and Mark E. Jones, both Missoula, Montana, attorneys for
the plaintiffs, filed administrative petitions recently with the school
board and the county, putting both bodies on notice that a lawsuit
likely will follow if they cannot reach a resolution by administrative
action.

Mr. Blakley and Mr. Jones are representing some 20 parents of students
at Florence, Drummond, Philipsburg, Frenchtown, Troy, Powell County and
Missoula Loyuola Sacred Heart high schools.  The claims against these
schools contend that they had a duty to protect the girls from being
viewed and videotaped in the locker rooms in various states of undress.

Last December, three Powell County High School senior boys pleaded
guilty to installing two-way mirrors in the girls' and boys' locker
rooms that permitted them to observe and videotape female athletes
undressing and nude.  Authorities uncovered seven videotaping locations
in both the girls' and boys' locker rooms.  Visiting female athletes
were filmed using the boys' locker rooms during tournament play.

Later in December, the three senior boys pleaded guilty to one count
each of felony burglary before District Court Judge Ted Mizner, who
gave each of them a deferred two year sentence, and ordered all three
to serve 30 days in jail, apologize and complete 250 hours of community
service.  The school board expelled all three seniors.

Mr. Blakley and Mr. Jones said their clients are upset with the
sentence the defendants received, and said class actions likely will be
filed in two courts, alleging negligence in the state court and
violation of civil rights in federal court.  The plaintiffs also intend
to take legal action against the parents of the three boys, because
they were minors at the time.  State law has a $2,500 limit on damages
the victims can collect, Mr. Jones said.

Mr. Jones said he and his clients have trouble believing that an act
like videotaping that requires so much setting-up, positioning of the
camera, could have gone on for two to three years without any adults
knowing about it.  "Deer Lodge is a small school.  It is inconceivable
to me, as an ex-teacher that those sorts of things could be going on
without some teacher or coach knowing about it," he said.

Mr. Jones also noted disturbing comments made by other male students
that were published in the 2001-02 high school yearbook.  One student
remarked, under a heading "Worst Part of PCHS,"  "The cameras in the
bathrooms."  Under the heading, "Idea of a Perfect 10," another student
said, "the locker room video."

Efforts are being made by the county to have the court destroy the
videotapes, which were confiscated from the boys.  Mr. Blakley
objects because these tapes are the evidence in their civil cases.  
Powell County Attorney Chris Miller said the victims and the parents he
spoke to want the tapes destroyed.  He said a list of the girls
appearing in the tapes could be made, thus preserving that evidence,
and then the tapes could be destroyed.

Mr. Blakley and Mr. Jones say the tapes could also show the viewing
locations, what lockers were used to conceal the camcorders, who had
access or keys and who might have easily viewed the voyeurs committing
the crime.


MOTOROLA INC.: MD Court Dismisses Suits Over Radiation in Cell Phones
---------------------------------------------------------------------
United States District Court in Maryland Judge Catherine Blake
dismissed five class actions filed against telecommunications equipment
firm Motorola, Inc, citing insufficient evidence, WirelessWeek.com
reports.  The suits sought to have headsets distributed to cell phone
owners because of radiation concerns.  The suits are:

     (1) Pinney, et al, vs. Nokia (filed in Maryland),

     (2) Farina vs. Nokia (filed in Pennsylvania),

     (3) Gilliam vs. Nokia, et al, (filed in New York),

     (4) Gimpleson, et al, vs. Nokia, et al, (filed in Georgia) and

     (5) Naquin, et al, vs. Nokia, et al, (filed in Louisiana)

Earlier, Judge Blake also dismissed an $800 million cancer lawsuit.  
The five suits did not allege, as the earlier case did, adverse health
effects caused by the phones.  Primarily, the plaintiffs sought to
mitigate future cell phone health problems by getting cell phone makers
to distribute headsets.  They also filed their complaints in several
state courts, only to have the defendants ask that the cases be
consolidated and filed in federal court, WirelessWeek.com reports.

Judge Blake said plaintiffs' efforts to press their cases in many state
courts preempted federal law.  "Because the plaintiffs' claims amounted
to a disguised attack on the validity and sufficiency of federal safety
regulations regarding cell phones, I found that federal question
jurisdiction supported removal," she said.


NEBRASKA: Judge Rejects Motion For Temporary Reinstatement of Medicaid
----------------------------------------------------------------------
A federal judge in Nebraska has rejected a motion by two working
mothers to temporarily reinstate their Medicare health benefits while
they await ruling in a class action filed relating loss of such
benefits, the Associated Press Newswire reports.

Two working parents Teresa Kai of Pender and Stacy Noller of Kearny
lost their Medicaid health care coverage when the Legislature
eliminated eligibility for thousands of working parents last year. Both
Ms. Kai and Ms. Noller have chronic medical problems and claim that
they will be unable to work without the prescription drugs provided
under Medicaid, the state's health insurance program for the poor and
disabled.

Rebecca Gould, a lawyer with the Appleseed Center for Law in the Public
Interest, filed a lawsuit in their behalf, in federal court in Lincoln,
claiming that under federal law the two women are entitled to
continuing Medicaid coverage through the Transitional Medical
Assistance program, which provides six months of additional health-care
coverage for people terminated from Medicaid.

However, as indicated above, US District Judge Laurie Smith Camp
rejected a request from the women to have their benefits reinstated
until the ruling on their class action is rendered.  Rebecca Gould, who
is representing the two women, said she will appeal the ruling on the
motion to the US Court of Appeals for the Eighth Circuit.

"This decision (from Judge Camp) does not mean the case is over at
all," Ms. Gould said.  "This was just a ruling on a motion."

The class action was filed in response to lawmakers' cutting of
Medicaid benefits during a special session last year at the urging of
Governor Michael Johanns.  These cuts helped balance the state budget
by eliminating practices that had allowed some people who would
otherwise not qualify, to receive Medicaid benefits.  Eliminated under
the cuts was a practice called "stacking" by which a family, for
example, which does not qualify for Medicaid might be listed as two
households so that its income is spread out over two households.  An
estimated 28,000 people in Nebraska are being removed from Medicaid
under the cuts.


PROGRESSIVE CORPORATION: Claims Representatives To Join Overtime Suit
---------------------------------------------------------------------
Hundreds of current and former claims representatives of the
Progressive Corporation are expected to join a federal collective
action lawsuit seeking unpaid overtime with less than a week to go
before a court-ordered deadline of March 10, 2003.  

More than 1,000 current and former claims representatives have elected
to join the nationwide collective action so far.  The case is pending
in the United States District Court in New Orleans, Louisiana.  The
suit, filed in August 2001 by former claims representative Kelly Marie
Camp, contends that the Company violated federal law by classifying
claims representatives as overtime-exempt employees.  US Magistrate
Joseph C. Wilkinson Jr. conditionally certified the suit as a class
action on November 9, 2002.

For more details, contact Jonathan Herman of Crull, Castaing, Lilly &
Herman - New Orleans by Phone: 1-504-581-7700 or 1-504-884-2507
(mobile) or contact James Jacobs of Murphy, Rogers & Sloss - New
Orleans, by Phone: 1-504-523-0400 or contact J. Derek Braziel of
Edwards & George - Dallas by Phone: 1-214-292-2870, or 1-214-763-20
(mobile)


RARE MEDIUM: Court Hears Appeal of Dismissal of New York Investors Suit
-----------------------------------------------------------------------
The United States Court of Appeals in New York heard the plaintiffs'
appeal of the dismissal of a class action against Rare Medium, Inc.,
Rare Medium Group, Inc., and Rare Medium Texas I, Inc.  The suit, filed
in the United States District Court for the Southern District of New
York, asserted claims for:

     (1) breach of contract,

     (2) tortuous interference with contractual relations,

     (3) tortious interference with prospective advantage, and

     (4) breach of implied obligation of good faith

These claims arose out of the plaintiffs' alleged attempt to engage in
transactions involving some or all of the approximately 1,200,000
shares of the Company's common stock (prior to the reverse stock split)
that the plaintiffs obtained in the Company's acquisition of Big Hand,
Inc.  The plaintiffs sought unspecified compensatory and punitive
damages, interest, attorneys' fees and costs.

In October 2001, the federal court dismissed the case without
prejudice.  The plaintiffs filed an amended complaint based on
substantially the same alleged facts.  The amended complaint also
sought an unspecified amount of actual damages, punitive damages,
interest, and costs.

In June 2002, the court again dismissed the case, this time with
prejudice.  The plaintiffs filed a notice of appeal.  The Company
intends to continue to contest this matter vigorously if the court of
appeals overturns the federal court's rulings.


RARE MEDIUM: Asks NY Court To Dismiss Lawsuit For Securities Violations
-----------------------------------------------------------------------
Rare Medium Group, Inc. asked the United States District Court for the
Southern District of New York to dismiss a class action filed by five
of its shareholders against it, certain of its subsidiaries and certain
of its current and former officers and directors.

The plaintiffs became owners of restricted stock when they sold the
company that they owned to Rare Medium.  Plaintiffs assert the
following four claims against defendants:

     (1) common-law fraud,

     (2) violation of Section 10(b) of the Securities Exchange Act of
         1934 and Rule 10b-5 promulgated thereunder,

     (3) violation of the Michigan Securities Act and

     (4) breach of fiduciary duty

These claims arise out of alleged representations by defendants to
induce plaintiffs to enter into the transaction.  The complaint seeks
compensatory damages of approximately $5.6 million, exemplary and/or
punitive damages in the same amount, as well as attorney fees.

The Company filed a motion to dismiss the complaint in its entirety,
which the court granted, dismissing the suit without prejudice.  In
July 2002, the plaintiffs filed an amended complaint asserting similar
causes of action to those asserted in the original complaint.

The Company again asked the court to dismiss the suit on behalf of
itself and its current and former officers and directors.  On November
5, 2002, the plaintiffs filed a brief in opposition to the motion to
dismiss.  The Company intends to continue to dispute this matter
vigorously.  The court has yet to decide on the matter.


RARE MEDIUM: Plaintiffs Ask That Suit Be Remanded To Kansas State Court
-----------------------------------------------------------------------
Plaintiffs in the class action against Rare Medium Group currently
pending in the United States District Court in Kansas seeks to have the
suit remanded to state court.

The suit was initially filed in July 2002 in the District Court for
Johnson County Kansas, against the lead plaintiff's counsel in the
suit, the Company, certain of the Company's current and former
officers, the Company's former investor relations firm and a former
employee of one of the plaintiffs.  The plaintiffs assert claims for
fraud, negligence and breach of fiduciary duty against all of the
defendants and certain of the Company's current and former officers in
connection with allegedly false statements purportedly made to the
plaintiffs.  The plaintiffs have sought
unspecified damages from the defendants.

In September 2002, the matter was removed to the Kansas federal court.  
The Company has opposed this motion.


RHODE ISLAND: Nightclub Fire To Spawn Suits, Claims To Reach $1 Billion
-----------------------------------------------------------------------
The West Warwick, Rhode Island, nightclub fire is certain to spawn
numerous civil lawsuits with claims that could total over $1 billion.  
There are 98 people killed and around 200 injured, the Associated Press
Newswires reports.  Officials of all kinds, judicial officials, for
example, have issued warnings to lawyers, the general public, to let
the grieving families be, to let them get on with their grieving,
alone, unpressured.

Rhode Island Superior Court Presiding Justice Joseph F. Rodgers Jr.
said he has referred several complaints to Supreme Court Disciplinary
Counsel David Curtin, who is responsible for reviewing complaints filed
against attorneys.

State officials are working to streamline the court process for the
expected lawsuits so they will be handled efficiently.  So far, just
one lawsuit, on behalf of the families of a man and a woman who died in
the February 20 fire, has been filed by an attorney who said he plans
to seek $1 million for each family.  The lawsuit names the nightclub
owners Jeffrey and Michael Derderian, members of the band, their
management company, the town of Warwick, local Fire Inspector Denis
Larocque and American Foam Corporation, the company that sold the club
the highly flammable foam that covered The Station nightclub's walls as
soundproofing.

Investigators believe the pyrotechnics used by the '80s heavy metal
band, Great White, set fire to the foam.  Members of the band say they
received permission for the fireworks from the Derderians.  However,
the owners say they were never told that the band intended to use
pyrotechnics in the one-story, low-ceilinged nightclub.

Many more lawsuits are expected, so many that Presiding Justice Rodgers
has named Superior Court Judge Alice B. Gibney to manage the cases.  
Judge Gibney is a native of West Warwick, and has had both civil and
criminal experience in her 19 years on the bench.  She is known mainly
for her work on complex litigation cases, including medical malpractice
and asbestos lawsuits.

Attorney Michael St. Pierre, president of the Rhode Island Bar
Association, said appointing a single judge to handle all of the cases
is common in complicated multiparty litigation.  Mr. Pierre added that
although all the cases will be consolidated under one judge that does
not mean the plaintiffs will end up joining in a single class action.  
Some plaintiffs may choose to sue different defendants.  Rhode Island
state law caps civil claims against municipalities at $100,000 per
family.

"The pot of insurance money is not going to be anywhere near enough to
cover these claims," said Mr. Pierre.  The potential volume of claims
has some state lawmakers thinking about establishing a special
compensation fund in order to pay the victims or their families,
similar, in some ways, to the fund created by Congress for victims and
families of the September 11 terrorist attacks.  Rhode Island's House
Speaker William Murphy plans to meet with the chief justices of the
superior and supreme courts, as well as other legal authorities, to
discuss the fund, said Larry Berman, spokesman for Mr. Murphy.

"This thing is so new to us, so disturbing; they haven't even buried
everybody yet, and they haven't finished grieving . the system needs
to be allowed to work," Mr. Williams said.  "I think everybody wants to
serve these victims and their families, and the question, of course, is
in what direction should we go."


UNITED STATES: Cherokee Chief Appointed Special Trustee Of Trust Funds
----------------------------------------------------------------------
The United States Senate's Indian Affairs Committee has voted nine to
five to approve President Bush's nomination of Cherokee Indian Chief
Ross Swimmer as Special Trustee to manage the American Indian Trust
Funds, according to a report by the Associated Press Newswires.  This
vote gets the nomination out of committee and onto the Senate floor
where it will be the subject of debate, and a vote taken which will
either approve or reject the nomination.

Chief Swimmer served as head of the Bureau of Indian Affairs in the
Reagan administration.  He currently works in the trust transition
office.  Chief Swimmer's nomination by President Bush as the third
special trustee since the post was created by Congress in the mid-1999s
has drawn mixed reaction from Indian tribes across the nation.

Senator Ken Conrad, D-N.D., said tribes in his state oppose Chief
Swimmer's nomination partly because of his lack of experience as a
trustee.  However, his nomination was praised by Senator Donald
Nickles, R-Okla., who said, "He (Chief Swimmer) has decades of
experience and has served in many leadership capacities.  I do not know
anyone more qualified for this position."

The government holds billions of dollars in trust for individual
American Indians and tribes.  Certain amounts of these monies are
distributed to the Indians at fixed intervals.  The monies are
royalties which are supposed to be collected from individuals who are
leasing the lands owned by the Indians and using them for grazing,
mining, logging and many other uses.

For a number of years, government officials have conceded that the
program administering these funds is in shambles.  It is unknown, in
fact, whether billions of dollars have been lost, stolen or just not
collected.  The Indians filed a class action before District Court
Judge Royce Lamberth to seek a full accounting of these trust funds and
to ask the court to order the instituting of a program which will
effectively administer the trust funds from the present forward.

Judge Lamberth for years has ordered the onset of accountings and the
development of a new program, but nothing effective or definitive has
been forthcoming under any of the terms of various Secretaries of
Interior, who are in charge of Indian Affairs, and the trust funds in
particular.  Judge Lamberth has even held the Secretaries in contempt
for their failure to come up with something approximating a good
response to his orders for an accounting and plans for a new program to
administer the funds.  However, nothing which approaches success has
been forthcoming.  For Judge Lamberth, and the Indians, this has been
an unfulfilled endeavor.
        

                     New Securities Fraud Cases


CARREKER CORPORATION: Wolf Haldenstein Files Securities Suit in N.D. TX
-----------------------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class
action in the United States District Court for the Northern District of
Texas, Dallas Division, on behalf of all who purchased or acquired the
securities of Carreker Corporation between May 20, 1998 and December
10, 2002, inclusive against the Company and certain of its officers and
directors.

During the class period, defendants filed a registration statement and
prospectus for the Carreker's initial public offering, issued press
releases, filed quarterly and annual reports with the SEC and made
other public statements that highlighted the Company's seeming ability
to consistently grow its revenues and earnings, causing its stock price
to rise correspondingly.

The complaint alleges that these statements were materially false and
misleading because they failed to disclose that Carreker had engaged in
improper accounting practices, namely, improper revenue recognition,
thereby artificially inflating the Company's reported financial
results.

On December 10, 2002, Carreker issued a press release announcing that
it was reviewing its previously published and filed financial
statements, because the Company might have improperly recognized
revenues and that its previous financial reports should not be relied
upon.  According to the press release, the investigation focused on the
improper timing of revenue recognition, which would likely be fixed
through a restatement shifting the revenues to the quarter in which
they should properly have been recognized under Generally Accepted
Accounting Principles.

In response to this disclosure, the price of Carreker common stock
plummeted, falling from a December 9, 2002 close of $5.08 per share to
a closing price of $3.98 per share on December 10, a one day decline of
22.6%.

Shortly thereafter, the SEC opened an investigation into the Company's
accounting practices, which is ongoing.  On January 28, 2003, Carreker
announced that it would restate its previous financial statements
beginning with its fiscal year 1998.

For more details, contact Fred Taylor Isquith, Gustavo Bruckner,
Michael Miske, George Peters or Derek Behnke by Mail: 270 Madison
Avenue, New York, New York 10016, by Phone: (800) 575-0735 by E-mail:
classmember@whafh.com or visit the firm's Website:
http://www.whafh.com. All e-mail correspondence should make reference  
to Carreker.


CARREKER CORPORATION: Kaplan Fox Commences Securities Suit in E.D. TX
---------------------------------------------------------------------
Kaplan Fox & Kilsheimer LLP filed a securities class action against
Carreker Corporation (Nasdaq:CANIE) and certain of its officers and
directors in the United States District Court for the Eastern District
of Texas.  This suit is brought on behalf of all persons or entities,
other than defendants, who purchased or otherwise acquired Carreker
common stock between May 20, 1998 and December 9, 2002, inclusive.

The complaint alleges that Carreker and certain of its officers and
directors violated the federal securities laws by issuing false and
misleading statements during the class period.

On May 20, 1998, the Company made an initial public offering (the
"Offering") by selling 5.1 million shares of common stock for $11 per
share.  The Offering was commenced by the filing of a registration
statement, which incorporated by reference a prospectus with the SEC on
Form S-1/A (the Registration Statement and Prospectus are collectively
referred to herein as the "Registration Statement").  The Registration
Statement was the first of many false and misleading statements issued
by Defendants throughout the Class Period.

On December 10, 2002, Carreker announced it was postponing its third-
quarter earnings release and warned that it may restate its prior
results because of problems regarding the timing of revenue
recognition.  In response to this disclosure, the price of Carreker
common stock plummeted, declining by 22.6% to close at $3.93.  As a
result of the Defendants' false and misleading statements, Carreker
common stock traded at artificially high levels during the Class
Period.

For more details, contact Frederic S. Fox, Hae Sung Nam by Mail: 805
Third Avenue, 22nd Floor, New York, NY 10022 by Phone: (800) 290-1952
or (212) 687-1980 by Fax: (212) 687-7714 or by E-mail:
mail@kaplanfox.com


CARREKER CORPORATION: Federman & Sherwood Lodges Securities Suit in TX
----------------------------------------------------------------------
Federman & Sherwood initiated a securities class action in the United
States District Court for the Northern District of Texas on behalf of
persons who acquired the securities of Carreker Corporation from May
20, 1998 through December 10, 2002.

The suit alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder by the Securities and Exchange Commission by issuing a
series of materially false and misleading statements to the market.

As stated in the suit, Carreker filed financial statements which
represented that revenues, income and earnings were growing
consistently, and that the Company had achieved several quarters of
record growth due to the Company's business model and strong demand for
its product.  The suit also alleges that the Company assured investors
of its "dedication to transparent reporting practices," highlighting
its "quality and integrity of accounting and corporate governance
practices."

For more details, contact William B. Federman by Mail: 120 N. Robinson,
Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560 by Fax:
(405) 239-2112 or by E-mail: wfederman@aol.com


INTERCEPT INC.: Cauley Geller Commences Securities Lawsuit in N.D. GA
---------------------------------------------------------------------
Cauley Geller Bowman Coates & Rudman, LLP initiated a securities class
action in the United States District Court for the Northern District of
Georgia on behalf of purchasers of InterCept, Inc. ICPT publicly traded
securities during the period between September 16, 2002 and January 9,
2003, inclusive.

The complaint charges InterCept and certain of its officers and/or
directors with violations of the federal securities laws.  
Specifically, the complaint alleges that, during the class period,
defendants made material misrepresentations and/or omitted to make
material disclosures due to their false assurances that the adult
pornography internet portion of their merchant processing business was
insignificant and due to their failure to disclose that VISA
regulations implemented on November 1, 2002, which were targeted
specifically to address risks of internet pornography card processing,
had caused a material loss of business.

Specifically, the complaint alleges that defendants knew by the time
their fourth quarter earnings estimate was issued on November 4, 2002
that they would suffer a material loss of business because defendants
were aware by November 1, 2002 which of their customers had met the
deadline to become sponsored merchants under the new VISA regulations.

In a January 9, 2003 press release, InterCept announced that it was
revising its fourth quarter 2002 earnings per share estimate downward
to $0.92 to $0.98 from its earlier, November 4, 2002, estimate of $1.11
to $1.15.  The Company cited "reduced revenues in our merchant area
result(ing) primarily from the iBill operations, which experienced a
large loss of merchant customers following the implementation of a new
credit card association rule in mid-November."

Following these disclosures, shares of InterCept declined from the
class period high of $19.11 per share to close near $7.00 per share on
January 10, 2003 on unusually high volume.  By the close of trading on
January 10, 2003, the stock had lost more than half of its value just
prior to the disclosure.

For more details, contact Samuel H. Rudman or David A. Rosenfeld,
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


PROVIDENT FINANCIAL: Schiffrin & Barroway Lodges Securities Suit in OH
----------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the
United States District Court for the Southern District of Ohio, Western
Division, on behalf of all purchasers of the common stock of Provident
Financial Group Inc. (Nasdaq:PFGI) publicly traded securities during
the period between April 14, 1998 and March 4, 2003, inclusive.

The complaint charges Provident Financial Group 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 defendants issued numerous statements and filed
quarterly and annual reports with the SEC that described the Company's
increasing revenues and financial performance.

The suit alleges that these statements were materially false and
misleading because they failed to disclose and/or misrepresented the
following adverse facts, among others:

     (1) that the Company had materially overstated its operating
         results by failing to properly account for certain off-balance
         sheet transactions.  Specifically, the Company failed to
         properly account for auto financing leases which caused it to
         overstate its earnings;

     (2) that the Company lacked adequate internal controls and was
         therefore unable to ascertain the true financial condition of
         the Company; and

     (3) as a result of the foregoing, the Company's financial
         statements issued during the Class Period were materially
         false and misleading.

Indeed, the Company, by restating its financial statements, has now
admitted that its previously issued financial statements were
materially false and misleading.

On March 5, 2003, before the open of the market, Provident shocked the
market by announcing that it would be restating its financial results
for fiscal years 1997 through 2002.  The Company attributed the
accounting issues to "nine auto lease financing transactions originated
between 1997 and 1999."  

The Company also revealed that it had restated its total assets for
1997 through 2002 -- increasing its net assets for each year (by
understating assets, the Company materially overstated its return on
assets, a key operating metric for banks).  In addition, the Company
reported that it was reducing its earnings guidance for fiscal year
2003, as a result of the accounting problem.

In response to the announcement of the earnings restatement, the price
of Provident stock dropped from $28.07 per share to $22.46 per share in
heavy trading.

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


ROYAL AHOLD: Finkelstein Thompson Commences Securities Suit in E.D. VA
----------------------------------------------------------------------
Finkelstein, Thompson & Loughran filed a securities class action in the
United States District Court for the Eastern District of Virginia, on
behalf of investors who purchased or otherwise acquired the securities
of Royal Ahold Corporation (AHO) during the period from May 15, 2001
through February 21, 2003, inclusive.

On February 24, 2003, Ahold announced that:

     (1) the Company's U.S. Foodservice subsidiary had materially
         overstated its income by nearly $500 million;

     (2) the Company's Disco subsidiary had engaged in certain
         transactions that were possibly illegal and were improperly
         accounted for; and

     (3) the Company's historical financial statements would be
         restated to proportionally consolidate, under Dutch GAAP and
         U.S. GAAP, several of the Company's joint ventures.

The Company also announced its CEO and CFO had resigned and that its
independent auditors had suspended their fiscal year 2002 audit pending
completion of the investigations into the foregoing accounting
irregularities.

For more details, contact Donald J. Enright or Conor R. Crowley by
Phone: 1-202-337-8000 by E-mail: dje@ftllaw.com or crc@ftllaw.com or
visit the firm's Website: http://www.ftllaw.com


UNUMPROVIDENT CORPORATION: Emerson Poynter Lodges Securities Suit in TN
-----------------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the United
States District Court for the Middle District of Tennessee on behalf of
purchasers of UnumProvident Corporation (NYSE:UNM) publicly traded
securities during the period between May 7, 2001 and February 4, 2003.

The complaint charges UnumProvident and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.  
UnumProvident provides group disability and special risk insurance, as
well as group life insurance, long-term care insurance, and payroll-
deducted voluntary benefits offered to employees at their worksites.

The complaint alleges that during the class period, defendants caused
UnumProvident's shares to trade at artificially inflated levels through
the issuance of false and misleading financial statements.  The Company
failed to properly record the impairment to its investments and
operated "long-term denial factories," causing the Company's financial
results to be inflated.  As a result, the Company's shares traded at
inflated prices enabling UnumProvident to raise proceeds of $250
million on June 13, 2002 in its bond offering.

For more details, contact Ms. Tanya Autry by Phone: (800) 663-9817 or
by E-mail: shareholder@emersonfirm.com


VITALWORKS INC.: Cauley Geller Commences Securities Lawsuit in CT Court
-----------------------------------------------------------------------
Cauley Geller Bowman Coates & Rudman, LLP initiated a securities class
action in the United States District Court for the District of
Connecticut on behalf of purchasers of VitalWorks, Inc. publicly traded
securities during the period between April 24, 2002 and October 23,
2002, inclusive.

The complaint alleges that the defendants issued false and misleading
statements concerning the Company's increasing revenues and future
prospects.  On October 23, 2002, VitalWorks announced that it had
failed to achieve pre- announced third quarter 2002 revenues and was
lowering revenue guidance for the remainder of fiscal year 2002;
additionally, the Company reported that it was lowering revenue
guidance for fiscal year 2003 by over 10%.

Market reaction to defendants' belated disclosures was swift and
severe.  On October 24, 2002, the first day of trading following
VitalWorks announcements, the price of VitalWorks common shares fell
over 56% in value to close at $3.13 per share on record trading volume
of over 14 million shares.

For more details, contact Samuel H. Rudman or David A. Rosenfeld by
Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone:
1-888-551-9944 by E-mail: info@cauleygeller.com


VITALWORKS INC.: Schiffrin & Barroway Files Securities Suit in CT Court
-----------------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a securities class action in the
United States District Court for the District of Connecticut on behalf
of all purchasers of the common stock of VitalWorks, Inc. (Nasdaq:VWKS)
publicly traded securities during the period between April 24, 2002 and
October 23, 2002, inclusive.

The complaint charges VitalWorks, Inc. and certain of its officers and
directors with issuing false misleading statements concerning its
business and financial condition.  Specifically, the complaint alleges
that the defendants issued false and misleading statements concerning
the Company's increasing revenues and future prospects.

On October 23, 2002, VitalWorks announced that it had failed to achieve
pre- announced third quarter 2002 revenues and was lowering revenue
guidance for the remainder of fiscal year 2002; additionally, the
Company reported that it was lowering revenue guidance for fiscal year
2003 by over 10%.  Market reaction to defendants' belated disclosures
was swift and severe.  On October 24, 2002, the first day of trading
following VitalWorks announcements, the price of VitalWorks common
shares fell over 56% in value to close at $3.13 per share on record
trading volume of over 14 million shares.

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


                              *********


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-
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Information contained herein is obtained from sources believed to be
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