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C L A S S A C T I O N R E P O R T E R
Wednesday, April 30, 2003, Vol. 5, No. 84
Headlines
ALASKA: Okaya Exec Admits Knowing Where Sockeye Salmon Was Sold
ALLIANT ENERGY: Shareholders Commence Suit Over Accounting Fraud
AMAZON.COM: WA Court Dismisses Lawsuit For Securities Violations
AMAZON.COM: Suit Filed For Tennessee False Claims Act Violations
AMAZON.COM: Consumers File Antitrust Suit Over Borders.com Site
BOEING CO.: KS Court Grants Class Certification To Sex Bias Suit
CREDIT CARDS: MasterCard Enters Settlement Right Before NY Trial
FLORIDA: Teachers Launch Age Discrimination Suit Against State
KUSHA INC.: Recalls Rice Pilaf Packages Due To Mislabeling
NVIDIA CORPORATION: CA Court Dismisses Securities Fraud Lawsuit
PEREGRINA CHEESE: Recalls Cheese Due To Listeria Contamination
SECURITIES LITIGATION: Wall Street Firms Enter $1.4B Agreement
TAI CHIEN: Recalls Ancom Hypertensive Tablets For Health Hazards
TD WATERHOUSE: Agrees To Settle Stock Fraud Lawsuit For $12.4M
TOBACCO INDUSTRY: Candy Cigarettes Produced Despite Crackdown
WAL-MART INC.: Plaintiffs File Brief Detailing Sex Bias Offenses
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
* Online Teleconferences
New Securities Fraud Cases
AFC ENTERPRISES: Marc Henzel Launches Securities Suit in N.D. CA
COLLINS & AIKMAN: Marc Henzel Lodges Securities Suit in E.D. MI
CORE LABORATORIES: Ademi & O'Reilly Lodges Securities Suit in NY
COSI INDUSTRIES: Marc Henzel Launches Securities Suit in S.D. NY
ELECTRO SCIENTIFIC: Marc Henzel Commences Securities Suit in OR
FIFTH THIRD: Marc Henzel Commences Securities Lawsuit in S.D. OH
GAINSCO INC.: Vianale & Vianale Files Securities Suit in S.D. FL
GAINSCO INC.: Cauley Geller Commences Securities Suit in S.D. NY
HOTELS.COM: Marc Henzel Commences Securities Lawsuit in N.D. TX
IMPERIAL CHEMICALS: Ademi & O'Reilly Files Securities Suit in NY
ROYAL AHOLD: Marc Henzel Commences Securities Lawsuit in S.D. NY
SAWTEK INC.: Marc Henzel Commences Securities Lawsuit in M.D. FL
SUPERGEN INC.: Weiss & Yourman Lodges Securities Suit in N.D. CA
UNUMPROVIDENT CORPORATION: Marc Henzel Files TN Stock Fraud Suit
VAXGEN INC.: Much Shelist Launches Securities Lawsuit in N.D. CA
VERITAS SOFTWARE: Marc Henzel Lodges Securities Suit in N.D. CA
WESTAR ENERGY: Marc Henzel Commences Securities Suit in KS Court
*********
ALASKA: Okaya Exec Admits Knowing Where Sockeye Salmon Was Sold
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An executive for Japanese trading company Okaya & Co., Ltd.
acknowledged that the Company knew where major fish processors in
Bristol Bay planned to market sockeye salmon, but said it never
pressured processors to lower prices to fishermen, the Associated Press
reports.
Okaya was named as a defendant in a class action filed against several
Japanese importers and Seattle-based processors on behalf of 4,500
Bristol Bay sockeye salmon permit holders. The suit alleges that the
defendants conspired to lower prices to fishermen from 1989 to 1995.
The suit seeks millions of dollars in damages.
Osamu Terasawa, now a food products manager for Okaya & Co., Ltd., said
that as head of Okaya USA's Seattle office in the 1990s, he gathered
information from processors and newspapers to compile reports sent back
to the parent company in Japan, AP reports. A 1996 Okaya memo listed
estimated metric tons of specific varieties of sockeye salmon to be
produced by each processing facility, and the prospective buyers. Mr.
Terasawa said he sent similar memos to the parent company during the
case period.
He clarified that even though he was gathering the information, he
never tried to coerce processors to lower prices paid to fishermen. He
said that it wasn't a good way to do business and that processors might
then sell their fish elsewhere. He did meet regularly with processors
in Seattle from 1993 to 1997 to discuss fisheries, including prices
paid to fishermen, he said, according to an AP report.
Plaintiffs have questioned Okaya's profit and loss statements, arguing
that the company failed to produce invoices from a number of sales
during the case period. Mr. Terasawa said he was able to get
sufficient information from Okaya's accounting department to compile
accurate totals without those invoices.
Defendants have blamed a glut of salmon and world economic condition
for lowering sockeye salmon prices. The trial began February 3 and is
expected to continue through May.
ALLIANT ENERGY: Shareholders Commence Suit Over Accounting Fraud
----------------------------------------------------------------
A recently filed class action alleges that Alliant Energy Corporation
misled investors last year into thinking the company's investments in
such unregulated businesses as Brazilian hydro-electric plants and a
Mexican resort town, would fuel the company's growth by as much as 10
percent a year, the Wisconsin State Journal reports.
Instead, says the lawsuit, those outside investments have been "a
material drain" on Alliant Energy, which is located in Madison,
Wisconsin. Consequently, the officials have had to cut their earnings
expectations by more than 35 percent. The announcement of the revised
earnings expectations resulted in a stock sell-off that cut the share
price by 23 percent in one day, the lawsuit claims.
The lawsuit was filed by Milberg Weiss Bershad Hynes & Lerach, one of
the leading law firms in actions nationwide on behalf of investors, on
behalf of the shareholders who bought Alliant stock between January 29,
2002, and July 18, 2002. The lawsuit seeks an undetermined amount of
damages.
The lawsuit against Alliant was filed in US District Court in Madison
and names the Company and its chairman, president and chief executive
officer Erroll Davis as defendants, as well as chief financial officer
Thomas Walker and controller John Kratchmer.
The lawsuit alleges that company officials made "materially false and
misleading statements" last year in the class period set forth above,
that exaggerated the performance of Alliant's unregulated businesses,
and claimed these businesses would make up for an expected weakness in
the company's utility businesses.
Alliant subsidiaries have investments in several hundred non-utility
businesses that fall outside the scrutiny of state regulators. They
include elderly housing developments; a short-line railroad in Iowa;
the McLeodUSA telecommunications company; power generation in China,
Australia and Brazil; and a Mexican resort town under construction.
News of the lawsuit was not surprising to Steve Hiniker, executive
director of the Citizens' Utility Board (CUB). "It's about time," Mr.
Hiniker said, referring to the filing of the lawsuit. "This is all
pretty well-known that Alliant has been running itself down on
unrealistic expectations on its unregulated investments."
Mr. Hiniker added that CUB will consider filing a brief in support of
the plaintiffs. The case has been assigned to District Court Judge
John Shabaz, who ruled against Alliant last May, in a case in which
Alliant is challenging the constitutionality of provisions of a state
law that governs utility holding companies, including their unregulated
assets.
AMAZON.COM: WA Court Dismisses Lawsuit For Securities Violations
----------------------------------------------------------------
The United States District Court for the Western District of Washington
dismissed all the claims against Amazon.com, Inc. LLC, its directors
and certain of its senior officers in the consolidated securities class
action filed by holders of the Company's equity and debt securities.
The suit alleges violations of the Securities Act of 1933 and/or the
Securities Exchange Act of 1934. The suit further alleges that the
Company, together with certain of its officers and directors and
certain third-parties, made false or misleading statements during the
period from October 29, 1998 through July 23, 2001 concerning its
business, financial condition and results, inventories, future
prospects and strategic alliance transactions. The 1933 Act complaint
alleges that the defendants made false or misleading statements in
connection with the Company's February 2000 offering of the 6.875%
PEACS.
The Company disputes the allegations in these complaints. On April 1,
2003, the court granted its Motion for Summary Judgment and issued a
judgment dismissing all claims brought against it in the proceeding
with prejudice. The Company will defend itself vigorously against any
appeal that the plaintiff may take from this judgment.
AMAZON.COM: Suit Filed For Tennessee False Claims Act Violations
----------------------------------------------------------------
Amazon.com, LLC faces a class action filed in the Chancery Court of
Davidson County, Tennessee, by a private litigant purportedly on behalf
of the State of Tennessee under the Tennessee False Claims Act. The
complaint alleges that the Company (along with other companies with
which it has commercial agreements) wrongfully failed to collect and
remit sales and use taxes for sales of personal property to customers
in Tennessee and knowingly created records and statements falsely
stating the Company was not required to collect or remit such taxes.
The complaint seeks injunctive relief, unpaid taxes, interest,
attorneys' fees, civil penalties of up to $10,000 per violation, and
treble damages under the state's False Claims Act.
The Company is aware that the private litigant in this case has filed
similar actions against other retailers in other states, and it is
possible that it has been or will be named in similar cases in other
states as well. The Company does not believe that it is liable under
existing laws and regulations for any failure to collect sales or other
taxes relating to internet sales.
AMAZON.COM: Consumers File Antitrust Suit Over Borders.com Site
---------------------------------------------------------------
Amazon.com, Inc. LLC faces a class action filed by Gary Gerlinger,
individually and on behalf of all other similarly situated consumers in
the United States who, during the period from August 1, 2001 to the
present, purchased books online from either Amazon.com or Borders.com,
in the United States District Court for the Northern District of
California.
The complaint alleges that the agreement pursuant to which an affiliate
of Amazon.com operates Borders.com as a co-branded site violates
federal anti-trust laws, California statutory law and the common law of
unjust enrichment. The complaint seeks injunctive relief, damages,
including treble damages or statutory damages where applicable,
attorneys' fees, costs and disbursements, disgorgement of all sums
obtained by allegedly wrongful acts, interest and declaratory relief.
The Company disputes the plaintiff's allegations of wrongdoing and
intends to vigorously defend itself in this matter.
BOEING CO.: KS Court Grants Class Certification To Sex Bias Suit
----------------------------------------------------------------
The United States District Court in Wichita, Kansas granted class
certification to a sex discrimination lawsuit filed against Boeing Co.,
on behalf of 4,800 women who worked in their Kansas facility, Reuters
reports.
The suit alleges that the Company denied women equal pay, promotions
and other employment opportunities solely on their gender, attorney
Steve Berman of law firm Hagens Berman told Reuters. The suit seeks
back pay, compensatory damages and punitive damages that could possibly
reach up to $50 million.
"I think there is an endemic problem at Boeing," Mr. Berman told
Reuters. "It is a white male-dominated culture . that doesn't look
favorably on women."
Boeing spokesman Ken Mercer told Reuters the lawsuit was "without
merit" and the class was very limited. He said Boeing was still
reviewing its options in the case.
"These suits are an attempt to inflate a very limited class in Seattle
to include employees around the country," he said. "We do believe that
they are without merit and we will vigorously defend ourselves."
Mr. Berman told Reuters the plaintiffs had amassed abundant evidence of
widespread discrimination against women employed by Boeing who
assembled aircraft and worked in other positions. He said the
company's upper management was aware of the problem, but had done
little to correct "a deep-seated gender bias within its organization."
Mr. Mercer denied this, saying the company took claims of
discrimination very seriously. "The company does not tolerate
discrimination," he said. "We have policies and procedures designed to
respond positively to employees that submit allegations of unfair
practices and do deal forcefully with those that have violated firm
policies."
CREDIT CARDS: MasterCard Enters Settlement Right Before NY Trial
----------------------------------------------------------------
Credit card giant MasterCard International settled a class action filed
by retailers like Wal-Mart, The Limited, Sears Roebuck, Safeway,
Circuit City, and three trade associations, right before the suit
proceeded to trial in the United States District Court for the Eastern
District of New York, Brandweek.com reports.
The suit relates to how the stores process transactions made with debit
cards, which deduct cash from consumers' existing bank accounts, rather
than building up their debt with credit accounts. The suit charges
both MasterCard and Visa USA with violating US antitrust law by
monopolistic and anticompetitive business practices concerning debit
cards.
The suit specifically alleges that Visa and MasterCard violated
antitrust laws by insisting that merchants who accept their credit
cards must also accept their debit cards, and also that the two card
companies charge unfair fees, eventually driving up costs for
consumers. The case was certified as a class action and now includes
five million merchants in the US and is said to involve billions of
dollars, an earlier Class Action Reporter story.
Federal judge John Gleeson revealed the settlement, calling it an "11th
hour settlement." He refused to reveal details, saying only that the
suit is settled as to Mastercard. He also forbade Mastercard and the
other plaintiffs from speaking publicly about the agreement.
In a statement issued Monday by Visa USA, Daniel Tarman, Vice
President, said, "Wal-Mart ... seeks to increase its power and profits
at the expense of consumer choice and competition. Visa USA will
vigorously defend in court every consumer's right to choose how to pay
at the checkout counter to stop Wal-Mart's assault on consumer choice.
If Wal-Mart succeeds in this case, it will be able to reach into every
consumer's wallet and dictate how they pay at the checkout counter."
Mr. Tarman added that testimony will also show the "tremendous value
cardholders and merchants receive when they accept Visa check cards-a
product that is cheaper than all MasterCards, paper checks and
certainly our high priced competitor American Express. There's no
question that if Wal-Mart wins, consumers lose . At the end of the day,
it will be clear that Wal-Mart simply tried to use this litigation as
part of a business strategy to increase profits and bulldoze its way
into the financial services industry at the expense of consumer choice
and competition," according to BrandWeek.com.
FLORIDA: Teachers Launch Age Discrimination Suit Against State
--------------------------------------------------------------
A group of Pinellas County, Florida, teachers have filed an age
discrimination lawsuit against the state of Florida, saying that more
experienced teachers are not being fairly compensated when compared to
newly hired teachers, the Associated Press Newswires reports.
According to state law, teachers hired after July 1, 2001, will have
salary levels calculated according to all their years of public school
teaching experience, regardless of where it was acquired. However, the
Pinellas County teachers contract in effect before July 2001, allowed
only eight years of experience acquired outside the district to count,
even if a teacher had many more years of experience.
Lawmakers see the new law as a way to help the state attract teachers
from outside the state, by forcing districts to calculate salary based
on all their experience. David Linesch, a lawyer representing teacher
who filed the complaint, said the law puts longer-serving, and
typically older, teachers at a salary disadvantage, which he said is a
violation of the 1992 Florida Civil Rights Act.
Mr. Linesch sent a letter detailing the teachers' complaints to
Governor Jeb Bush, the Legislature and the Pinellas County schools.
Associate Superintendent Ronald Stone said the complaint is premature,
because the board is negotiating with teachers to resolve the issue.
If the matter is not resolved, Mr. Linesch said, the complaint could
develop into a statewide class action. As a possibly helpful
precedent, a similar salary issue was settled in Hillsborough County
shortly after the law took effect. About 900 teachers benefited from
the Hillsborough school board's decision to credit teachers for more
years of experience gained outside their district than previously
allowed.
School Board attorney John Bowen disagreed with the characterization of
age discrimination, pointing out that many of the teachers benefiting
from the new law are probably of a similar age as the teachers who did
not benefit.
Pinellas County has estimated it will cost about $1.8 million to boost
salaries for the more than 400 veteran teachers not covered by the law.
Mr. Linesch said the remedy he is seeking is to pay the veteran
teachers retroactively, back to the date of the new law.
KUSHA INC.: Recalls Rice Pilaf Packages Due To Mislabeling
----------------------------------------------------------
Kusha, Inc. recalled its 8-ounce package of "Royal Spanish Rice Pilaf"
and 8-ounce package of "Royal Chicken Rice Pilaf" because they were
misbranded as the ingredient statement for the seasoning packet was
incomplete. Royal Spanish Rice Pilaf is packed in 8 oz. box with UPC
number 7-45042-14140-2. The following ingredients were not declared on
the label: Hydrolyzed Corn Gluten, Soy Protein and Wheat Gluten,
Chicken Fat, Partially Hydrogenated Cottonseed and Soy Oil, Corn
Starch, Tapioca Maltodextrin, Monosodium Glutamate, Turmeric, Disodium
Inosinate, Disodium Guanylate, Dextrose, Thiamine Hydrochloride, Lactic
Acid.
Royal Chicken Pilaf is packed in 8 oz. box with UPC number 7-45042-
14142-6. The following ingredients were not declared on the label:
Partially Hydrogenated Soybean Oil, Natural Chicken Flavor, Buttermilk
Solids, Sodium Bicarabonate, Dried Yeast, Soy Sauce, Guar Gum, Lactose,
Sodium Casienate.
No serious illnesses have been reported to date in connection with this
problem. The recall was initiated after it was discovered that the
statement for the seasoning packet did not reveal a complete
ingredient. Production of the Royal Spanish and Royal Chicken Rice
Pilaf has been suspended and Kusha, Inc. is going to re-label the
ingredient statement.
For more details, contact the Company by Phone: (949) 250-4268
NVIDIA CORPORATION: CA Court Dismisses Securities Fraud Lawsuit
---------------------------------------------------------------
The United States District Court for the Northern District of
California dismissed the consolidated securities class action filed
against NVIDIA Corporation and certain of its current and former
officers, alleging violations of the federal securities laws arising
out of the Company's announcement on February 14, 2002 of an internal
investigation of certain accounting matters.
Three related derivative actions against the Company, certain of its
current and former executive officers, directors and its independent
auditors, KPMG LLP, in California Superior Court and in Delaware
Chancery Court. The two related derivative actions filed in California
Superior Court have been consolidated and are currently stayed pursuant
to a voluntary stipulation agreement.
The actions allege claims in connection with various alleged statements
and omissions to the public and to the securities markets and seek
damages together with interest and reimbursement of costs and expenses
of the litigation. The derivative actions also seek disgorgement of
alleged profits from insider trading by officers and directors.
The actions are in the preliminary stages. On March 28, 2003 the
federal court granted the Company's motion and dismissed the
consolidated amended complaint as to all claims and defendants with
leave to amend. Plaintiffs must file their second consolidated amended
complaint by May 12, 2003.
The Company has also filed a motion to dismiss the derivative action
filed in Delaware. A hearing on this motion was held April 23, 2003
and a ruling is expected within the next month.
The Company is unable to predict the ultimate outcome of the suits.
There can be no assurance the Company will be successful in defending
the suits, and if it is unsuccessful, it may be subject to significant
damages. Even if the Company is successful, defending the suits is
likely to be expensive and may divert management's attention from other
business concerns and harm its business.
PEREGRINA CHEESE: Recalls Cheese Due To Listeria Contamination
--------------------------------------------------------------
Peregrina Cheese Corp recalled 14-ounce plastic trays of "Peregrina
Cheese Brand Queso Fresco Fresh Cheese" because they may be
contaminated with Listeria monocytogenes.
If consumed, the product could cause Listeriosis, a disease that
usually causes mild flu-like symptoms in healthy individuals; however
in immune-compromised individuals, meningitis and blood poisoning can
occur. Pregnant women are also considered a high-risk group, as
Listeriosis can also result in stillbirths.
The cheese was distributed to retail outlets in the New York and New
Jersey metropolitan area. "Peregrina Cheese Brand Queso Fresco, Fresh
Cheese" is sold in a 14-ounce plastic tray package with code "0933."
The package contains a plant number of 36-8431 and a "grocery sticker"
identifying the code "0933." The label shows the address of the plant
location as 342 Ten Eyck Street, Brooklyn, New York 11206.
The recall was initiated after routine samples taken by New York State
Department of Agriculture and Markets Dairy Products Specialists
discovered the product to be contaminated with Listeria monocytogenes.
For more information, contact the Company by Mail: 342 Ten Eyck Street,
Brooklyn, New York 11206 or by Phone: (718) 456-2391
SECURITIES LITIGATION: Wall Street Firms Enter $1.4B Agreement
--------------------------------------------------------------
Several Wall Street investment firms finalized a $1.4 billion
settlement with US market regulators for the investigation charging
them with issuing biased research to gain investment banking business,
Reuters reports.
The settlement is considered the largest in Wall Street history, with
ten investment firms participating and three of the most profitable
brokerages during the late 1990s market boom -- Citigroup Inc.'s
Salomon Smith Barney unit , Credit Suisse Group's CSFB
and Merrill Lynch & Co. paying a total of $800 million,
according to the Securities and Exchange Commission. The settlement is
broken down into:
(1) Salomon - $400 million,
(2) Merrill - $200 million,
(3) Credit Suisse Group's CSFB - $200 million,
(4) Morgan Stanley - $125 million,
(5) Goldman Sachs - $110 million,
(6) Bear Stearns - $80 million,
(7) J.P. Morgan Chase - $80 million,
(8) Lehman Brothers - $80 million,
(9) UBS AG's UBS Warburg unit - $80 million and
(10) US Bancorp's Piper Jaffray - $32.5 million
Thousands of investors filed suits against companies who made their
initial stock offerings during the technology stock bubble, naming as
defendants 55 underwriters, 309 issuers of stock in high technology and
Internet-related stocks and thousands of individuals, according to an
earlier Class Action Reporter story. The suits target a high
percentage of the more than 460 high technology and Internet-related
companies that raised capital by selling ownership of their company to
the public from January 1998 to December 2000.
The suits similarly alleged that the value of the plaintiffs'
investments plummeted as a result of alleged fraud - misstatements in
financial statements and prospectuses, unauthorized underwriter
agreements, improper disclosure - that caused the prices of stocks to
be artificially inflated.
Regulators singled out Henry Blodget, a former Internet analyst at
Merrill Lynch, and Jack Grubman, a former telecommunications analyst at
Salomon Smith Barney, who agreed to pay almost $20 million in fines and
be barred permanently from working in the financial services industry,
Reuters states.
"When wrongdoing occurs, it must be confronted and punished," SEC
Chairman William Donaldson said, flanked by New York Attorney general
Eliot Spitzer, New York Stock Exchange Chairman Richard Grasso and
other regulators during a press conference. "Today we are doing just
that."
Under the settlement, firms will have to:
(i) physically separate their research and investment banking,
(ii) bar their analysts from pitch meetings with clients to win
underwriting business, and
(iii) interaction between analysts and investment bankers will have
to be chaperoned by compliance officers.
The settlement aims to make it more difficult to breach conflicts of
interest between research and investment banking departments. The
strictest requirements were reserved for Citigroup's investment banking
arm, which agreed to pay $400 million, including $300 million in fines
and restitution, Reuters reports.
The settlement - the result of a coordinated probe between the SEC, Mr.
Spitzer's office, different state securities enforcement offices, the
NASD and the New York Stock Exchange - does not preclude future probes
into practices by individual researchers or bankers, Mr. Spitzer told
Reuters.
"We believe we have restored what is wonderful about our capitalist
system -- which is truth, integrity and risk taking," said Mr. Spitzer
during the press conference.
The settlement, first unveiled in December, includes a provision
stating that brokerages will not be able to get reimbursed for the
fines and restitution by insurance coverage. None of the brokerages
will admit wrongdoing under their deal with the stock exchanges, state
regulators and the SEC.
TAI CHIEN: Recalls Ancom Hypertensive Tablets For Health Hazards
----------------------------------------------------------------
Tai Chien Inc. recalled all 100-tablet bottles of Ancom Anti-
Hypertensive Compound Tablets, an unapproved new drug labeled to
contain several prescription drug ingredients, including reserpine,
diazepam, promethiazine, and hydrochlorothiazide. The sale of a
product with this combination of ingredients poses possible serious
health risks including sedation, depression, and potentially life-
threatening abnormalities of the blood.
This recall includes all lot codes of the product remaining on the
market. Ancom Tablets were sold without prescriptions to consumers at
Tai Chien's retail establishment in New York City. Product was also
sold to a distributor in Puerto Rico.
Ancom Tablets are labeled for anti-hypertensive use and are packaged in
white plastic bottles of 100 tablets bearing blue and white lettered
labeling. Each bottle is sold in an outer cardboard holding carton.
Both the carton and immediate container label bear the product name as
Ancom tablets, Anti-hypertensive Compound, and display the
manufacture's name as Shanghai Pharmaceutical Industry Corp., Shanghai,
China. The labeling also bears Chinese markings, which appear to be
dual declarations. The holding carton is white with a pink and blue
vertical stripe bearing blue and white lettering. The product carton
also includes a pre-printed insert labeled with an ingredient statement
and directions for use.
At least one illness has been reported to date. Consumers who have
used this product and are experiencing any adverse reactions should
seek advice from their physician for appropriate evaluation and
treatment of their hypertension.
For more details, contact the company by Phone: 1-212-431-5636.
TD WATERHOUSE: Agrees To Settle Stock Fraud Lawsuit For $12.4M
--------------------------------------------------------------
Securities firm TD Waterhouse agreed to pay up to $12.4 million to
settle a class action filed on behalf of 180,000 customers who did
securities trades that involved foreign exchange transactions between
May 1994, and November 2001, the Toronto Star reports.
The suit was filed after several clients objected to the Company's
earning a profit on currency conversions on their securities trades.
The Company did the conversions at wholesale rates available to banks
and charged higher rates to its clients, making a profit on the
difference.
Under the settlement, which was approved in Windsor court, the Company
will give clients vouchers for free trades ranging from $29 to $986,
depending on the value of the foreign exchange in their transactions
with the discount brokerage firm, the Toronto Star reports.
"On the class over-all it's a 50 per cent recovery of the alleged
overcharge," Windsor class action lawyer Harvey Strosberg told the
Star.
However, some clients said they would rather be paid back in cash.
Most of the customers - about 140,000 - had transactions worth less
than $30,000 during the period, Mr. Strosberg told the Star. They will
get credits worth $28.
Only 7,500 had transactions worth more than $200,000. Their credits
will range from $174 to $986 for anyone with trades valued at more than
$1 million. But it is the customers whose trades were worth less who
are recovering more of their losses, he continued. The average
recovery rate is 82 per cent for clients with trades worth less than
$30,000.
TD Waterhouse did not comment on the settlement yesterday, the Star
states. Newspaper ads about the settlement will appear tomorrow and on
May 7. TD Waterhouse clients will also get notices in the mail in
coming weeks.
TOBACCO INDUSTRY: Candy Cigarettes Produced Despite Crackdown
-------------------------------------------------------------
Candy companies are continuing to roll out cigarettes of the edible
kind. There are the red-tipped sticks of sugar in boxes that have
names such as Victory. There are chocolate ones, among others,
complete with cellophane wrappers and faux tax stamps, the Houston
Chronicle reports.
Candy cigarettes are not as widely available as they once were.
However, Amy Barkley, an advocate for Campaign for Tobacco Free Kids,
based in Louisville, Ky., said she was surprised that the tobacco-
themed candy has not been "snuffed out" in these days of increasing
pressure on tobacco companies.
"You would think action would have been taken by now," said Ms.
Barkley.
Although some studies have shown that children who use candy tobacco
products are twice as likely to smoke, there has been little success
curbing the production in America, said Lyndon Haviland, chief
operating officer for Legacy, a nonprofit anti-smoking group. Efforts
to ban candy cigarettes in the United States have failed twice - once
in 1970 and again in 1990. Eleven states also have tried
unsuccessfully to ban candy-cigarette sales. Several countries,
however, including Canada, Saudi Arabia and the United Kingdom, have
banned tobacco-related confections.
Mr. Haviland said lengthy court battles have restricted severely the
marketing of cigarettes in ways that would attract children. However,
these litigations deal only with actions of tobacco companies. Candy
companies are not bound by the same rules, even though they appear to
be reaching out to the same audience.
According to a study conducted at the University of Rochester, candy
cigarettes have been around in America since at least 1915. By 1939,
cigarette manufacturers authorized the duplication of cigarette designs
on candy packages. By the late 1990s, official branding had been
extinguished in the United States, in the wake of a candy industry
study that said such intertwined advertising could lead to children
smoking.
Candy, gum and chocolate cigarettes continue to be produced. Although
the word cigarette is no longer used on the box, the plastic wrap,
brown tax seals and familiar, if not exact logos, continue.
Susan Fussell, spokeswoman for the National Confectioners Association,
referred, in conversation, to the candy products as "candy tobacco
products," even though the technical name for the sweets is "candy
sticks" and she disputed, as well, the studies that show candy
cigarettes lead to the real thing, calling it "not strong or sound
science."
"There is quite a bit of sound science" to show that peer pressure is
the primary cause of smoking, said Ms. Fussell.
WAL-MART INC.: Plaintiffs File Brief Detailing Sex Bias Offenses
----------------------------------------------------------------
Plaintiffs in the sex discrimination class action filed against retail
giant Wal-Mart, Inc. revealed the Company's offenses in a brief that
was filed in the United States District Court in San Francisco,
California, the Los Angeles Times reports.
The brief detailed several offenses at the Company. Female managers
were allegedly required to attend strip clubs with male colleagues.
They were also forced to take business meetings at Hooters, a
restaurant where food is served by amply endowed women clad in tight
shirts. Top executives at Sam's Club allegedly referred to female
employees in meetings as "little Janie Qs" and "girls." A woman
executive who complained received a warning against being overly
judgmental. The brief also revealed that a gender pay gap averaging 5%
exists in the Company, saying that it was a reflection and result of "a
culture of bias" in the company.
The suit alleges job discrimination on behalf of more than 1.5 million
women employed by Wal-Mart since late 1998. The proposed class dwarfs
the size of other employment discrimination cases and, if approved,
would make the suit one of the largest against a corporation.
The plaintiffs are seeking back wages equivalent to what they believe
they would have earned were it not for the alleged bias. They also are
seeking compensation for promotions allegedly lost because of
discrimination, the LA Times reports.
Wal-Mart spokeswoman Mona Williams denied any pervasive bias within the
company and disputed the plaintiffs' analysis of the evidence. She
told the LA Times that experts who analyzed payroll data for the
company found that "nine out of 10 times, women and men are paid
equally," and that women are promoted at a rate consistent with the
rate at which they apply for positions.
"We feel there is room for improvement with the pay, but from a
promotional standpoint, it's absolutely fair," Ms. Williams continued.
Brad Seligman, a lawyer for the plaintiffs, said the attitude conveyed
in the comment is not an aberration. "We've got more than 100
declarations from 30 states," Mr. Seligman told the LA Times, director
of the Oakland-based Impact Fund, a legal advocacy organization. "It's
not just a problem in the Deep South or Alaska. It's a constant story
that we hear all across the country, and it's consistent with what the
numbers show."
The Company is scheduled to file its brief in opposition to the class
action in early June. A hearing on the class question is set for July.
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
-------------------------------------------------
May 1, 2003
TOXIC TORT IN CALIFORNIA
Bridgeport Continuing Education
Los Angeles
Contact: 818-505-1490
May 1-2, 2003
ASBESTOS LITIGATION 2003
Andrews Publication
New Orleans Grande Hotel, New Orleans
Contact: seminar@andrewspub.com
May 3, 2003
2003 CRITICAL ISSUES IN EMPLOYMENT LITIGATION
Continuing Education of the Bar
Coast Anaheim Hotel, Anaheim
Contact: 1-800-232-3444; http://www.ceb.com
May 5-6, 2003
THE CURRENT STATE OF MEDICAL MALPRACTICE IN PA & NJ
Mealey Publications
The Ritz-Carlton Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
May 7-8, 2003
MANAGING MOLD LIABILITIES
Bridgeport Continuing Education
San Francisco
Contact: 818-505-1490
May 10, 2003
2003 CRITICAL ISSUES IN EMPLOYMENT LITIGATION
Continuing Education of the Bar
Wilshire Grand Hotel & Centre, Los Angeles, CA
Contact: 1-800-232-3444; http://www.ceb.com
May 14-15, 2003
CALIFORNIA ENVIRONMENTAL UPDATE
Bridgeport Continuing Education
San Jose
Contact: 818-505-1490
May 15-16, 2003
D&O LIABILITY INSURANCE
American Conference Institute
TriBeCa Grand Hotel, New York
Contact: 1-888-224-2480; http://www.americanconference.com
May 17, 2003
2003 CRITICAL ISSUES IN EMPLOYMENT LITIGATION
Continuing Education of the Bar
Red Lion Hotel, Sacramento, CA
Contact: 1-800-232-3444; http://www.ceb.com
May 20, 2003
FEN-PHEN LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
May 31, 2003
2003 CRITICAL ISSUES IN EMPLOYMENT LITIGATION
Continuing Education of the Bar
Crowne Plaza Hotel, San Francisco, CA
Contact: 1-800-232-3444; http://www.ceb.com
June 2-3, 2003
BAYCOL LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel Amelia Island, FL
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
June 2-3, 2003
ASBESTOS BANKRUPTCY CONFERENCE
Mealey Publications
The Westin Hotel Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
June 7, 2003
USING MEDITATION TO RESOLVE MOLD CLAIMS - AN ATTORNEYS GUIDE
BridgeportCE
Omni Los Angeles Hotel
Contact: 1-818-505-1490; www.reconferences.com
June 9, 2003
ANTI-SLAPP STATUTE CONFERENCE
Mealey Publications
The Ritz-Carlton Huntington Hotel & Spa
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
June 12-13, 2003
ARSENIC AND CCA-TREATED WOOD LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel Amelia Island, FL
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
June 12-13, 2003
ENVIRONMENTAL INSURANCE: PAST, PRESENT AND FUTURE
American Law Institute
Boston
Contact: 215-243-1614; 800-CLE-NEWS x1614
June 16-17, 2003
LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
June 16-17, 2003
ASBESTOS LITIGATION 101 CONFERENCE
Mealey Publications
The Fairmont Hotel, Dallas
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
June 16-17, 2003
MANAGING MOLD LIABILITIES
Bridgeport Continuing Education
San Francisco
Contact: 818-505-1490
June 19-20, 2003
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Chicago
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
June 24-25, 2003
SECURITIES CLASS ACTIONS
American Conference Institute
Crowne Plaza Times Square, New York
Contact: 1-888-224-2480; http://www.americanconference.com
June 26-27, 2003
THE CLASS ACTION LITIGATION SUMMIT
Northstar Conferences
The Westin Embassy Row, Washington, DC
Contact: 866-265-1975; 212-596-6006; cservice@northstarconferences.com
July 15, 2003
LEXISNEXIS PRESENTS: WALL STREET FORUM: MASS TORT LITIGATION
Mealey Publications
The Ritz-Carlton Hotel, Battery Park, New York
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
July 31-August 1, 2003
CLASS ACTION LITIGATION 2003: PROSECUTION AND DEFENSE STRATEGIES
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
August 1, 2003
CLASS ACTION LITIGATION 2003: PROSECUTION AND DEFENSE STRATEGIES
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
September 8-9, 2003
CORPORATE GOVERNANCE: LIABILITY OF CORPORATE
OFFICERS AND DIRECTORS
Mealey Publications
The Ritz-Carlton Hotel Amelia Island, FL
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
September 8-9, 2003
NATIONAL ASBESTOS LITIGATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel Chicago
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
September 15-16, 2003
SECURITIES LITIGATION & ENFORCEMENT 2003
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
September 19-21, 2003
THE 20TH TOBACCO PRODUCTS LIABILITY PROJECT CONFERENCE
Northeastern University School of Law
Contact: scuri@tplp.org
September 22-23, 2003
BAD FAITH CONFERENCE
Mealey Publications
The Westin Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
October 2-3, 2003
SECURITIES LITIGATION & ENFORCEMENT 2003
Practising Law Institute
PLI New York Center
Contact: 800-260-4PLI; info@pli.edu.
November 6-7, 2003
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Ritz Carlton, New Orleans, Louisiana
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
November 13-14, 2003
ASBESTOS LITIGATION IN THE 21ST CENTURY
ALI-ABA
New Orleans
Contact: 215-243-1614; 800-CLE-NEWS x1614
November 17, 2003
Water Contamination Litigation Conference
Mealey Publications
Pasadena
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
March 18-19, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
The Fairmont, San Francisco, California
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
June 10 & 11, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Atlantis, Paradise Island, Bahamas
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
TBA
Fair Labor Standards Conference
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com
* Online Teleconferences
------------------------
May 08-10, 2003
EMPLOYMENT DISCRIMINATION & CIVIL RIGHTS ACTIONS IN
FEDERAL AND STATE COURTS
ABA-CLE
Contact: 800-285-2221; abacle@abanet.org
May 14, 2003
CLASS ACTION BASICS
ABA-CLE
Contact: 800-285-2221; abacle@abanet.org
ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
EXPERT WITNESS ADMISSIBILITY IN MOLD CASES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
PAXIL LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECENT DEVELOPMENTS INVOLVING BAYCOL
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
SHOULD I FILE A CLASS ACTION?
LawCommerce.Com / Law Education Institute
Contact: customerservice@lawcommerce.com
THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
TRYING AN ASBESTOS CASE
LawCommerce.Com
Contact: customerservice@lawcommerce.com
______________________________________________________________________
The Meetings, Conferences and Seminars column appears in the Class
Action Reporter each Wednesday. Submissions via e-mail to
carconf@beard.com are encouraged.
New Securities Fraud Cases
AFC ENTERPRISES: Marc Henzel Launches Securities Suit 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
Georgia on behalf of all purchasers of the common stock of AFC
Enterprises, Inc. (NasdaqNM: AFCE) from March 2, 2001 through March 24,
2003, inclusive.
The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between March 2, 2001 and March 24, 2003, thereby artificially
inflating the price of AFC securities.
The complaint alleges that these statements were materially false and
misleading because they failed to disclose and misrepresented the
following adverse facts, among others:
(1) that the Company was improperly accounting for the value of
certain long-lived assets, thereby artificially inflating its
operating results;
(2) that the Company was improperly accounting for the sale of
corporate-owned stores to franchisees, thereby artificially
inflating its operating results;
(3) that the Company was improperly accounting for cooperative
advertising costs, thereby understating its advertising
expenses and artificially inflating its operating results;
(4) that the Company's Seattle Coffee Company was improperly
accounting for inventory, sales allowances and slotting fees;
and
(5) as a result of the foregoing, the Company's financial
statements published during the Class Period were not prepared
in accordance with Generally Accepted Accounting Principles
and, therefore, it was not true that the Company's financial
statements were a "fair presentation" of the Company's
financial position.
Indeed, by announcing its intention to restate its financial
statements, AFC has admitted that its prior financial statements were
materially false and misleading when issued.
On March 24, 2003, after the market closed, AFC shocked the market by
announcing that it would be restating its financial statements for
fiscal year 2001 and the first three quarters of 2002. The Company
also reported that it was examining whether or not its financial
statements for fiscal year 2000 should be restated. In response to
this negative announcement the price of AFC common stock dropped
precipitously, falling to as low as $12.30 per share, on extremely
heavy trading volume.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
COLLINS & AIKMAN: Marc Henzel Lodges Securities Suit in E.D. MI
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Eastern District of
Michigan, on behalf of purchasers of the securities of Collins & Aikman
Corp. (NYSE: CKC) between August 7, 2001 and August 2, 2002, inclusive,
and who suffered damages thereby. The action, is pending against the
Company, Heartland Industrial Partners L.P. and ten senior officers
and/or directors of CKC.
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 7, 2001 and August 2, 2002.
The complaint alleges that Heartland was at all relevant times a
private equity firm that presented itself as being expert in leveraged
buyouts of industrial manufacturers and that, in February 2001,
Heartland acquired a controlling interest in CKC. CKC was at all
relevant times a manufacturer of automotive interior components.
The complaint further alleges that Heartland and CKC acquired Textron
Automotive Company's TAC-Trim division and that, throughout the class
period, Heartland and CKC repeatedly stated that the TAC-Trim
acquisition would be accretive to earnings and that, in addition to
doubling CKC's annual revenue, the TAC-Trim acquisition would increase
operating income by reducing costs through synergies and economies of
scale.
The truth was revealed on August 5, 2002, when the Company reported a
net loss of $20.3 million, or $0.29 per diluted share, compared with
net income of $9.2 million, or $0.11 per diluted share a year earlier,
and announced that it expected 2002 earnings to be $0.20 to $0.26 per
share, well below the consensus estimate of $0.74 per share. On this
news, the investing public dumped its CKC stock, pushing the price down
49% to close at $2.81 on relatively high trading volume.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
CORE LABORATORIES: Ademi & O'Reilly Lodges Securities Suit in NY
----------------------------------------------------------------
Ademi & O'Reilly, LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of purchasers of Core Laboratories, N.V. (NYSE:CLB) common stock during
the period between May 6, 2002, and March 31, 2003, inclusive.
The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between May 6, 2002, and March 31, 2003, thereby artificially
inflating the price of Core common stock.
Throughout the class period, as alleged in the complaint, defendants
issued numerous statements and filed quarterly reports with the SEC,
which described the Company's increasing financial performance. The
complaint 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 net income and
earnings per share;
(2) that the Company had overstated its ability to collect on
certain accounts receivable;
(3) that the Company had improperly delayed the booking of
expenses and foreign exchange translation losses from certain
field locations;
(4) that the Company lacked adequate internal controls and was
therefore unable to ascertain the true financial condition of
the Company; and
(5) that as a result, the value of the Company's net income and
financial results was materially overstated at all relevant
times.
On March 31, 2003, after the markets had closed trading for the day,
the Company shocked the market by announcing that it would be restating
its financial results for prior 2002 quarterly operating results
because of:
(i) the issuance of duplicate invoices in the Company's Mexico
operations;
(ii) the need for higher provisions for doubtful accounts
receivables;
(iii) the need for timely booking of expenses and foreign exchange
translation losses from certain field locations;
(iv) changes in the estimated life of certain assets; and
(v) consolidation costs of two Nigerian offices
Following this announcement, shares of Core common stock fell $1.31 per
share, or more than 12.5%, to close at $9.09 per share, on volume of
515,300 shares traded, or almost four times the average daily volume.
For more details, contact Guri Ademi by Phone: 1-866-264-3995 by Fax:
1-414-482-8001 by E-mail: gademi@ademilaw.com
COSI INDUSTRIES: Marc Henzel Launches Securities Suit in S.D. NY
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Southern District of New
York on behalf of purchasers of the common stock of Cosi, Inc. (NASDAQ:
COSI) between November 22, 2002 to February 4, 2003 inclusive and who
were damaged thereby. The action, is pending against the Company,
Andrew M. Stenzler (CEO and Chairman), Jonathan M. Wainwright, Jr.
(President) and Kenneth S. Betuker (CFO).
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 November 22, 2002 to February 4, 2003.
As alleged in the complaint, the Registration Statement and Prospectus
for the Company's November 22, 2002 IPO contained several sections
which discussed the Company's plans for growth and described how the
proceeds raised from the IPO would enable the Company to implement
these plans.
The complaint further alleges that similar representations were made by
Mr. Stenzler in an interview broadcast on CNNfn. These statements were
materially false and misleading, according to the complaint, because:
(1) they failed to disclose that the funds raised by the IPO would
be insufficient to implement the Company's expansion plan,
contrary to defendants' Class Period representations; and
(2) at the time of the IPO, defendants should have known that the
costs of expansion would be greater than the cash available to
the Company (which included working capital and proceeds from
the IPO), making it highly improbable that the Company would
be able to successfully continue to open numerous new stores
at such a rapid pace.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
ELECTRO SCIENTIFIC: Marc Henzel Commences Securities Suit in OR
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the District of Oregon on
behalf of all purchasers of the common stock of Electro Scientific
Industries, Inc. (NasdaqNM: ESIO) from September 17, 2002 through March
30, 2003, inclusive.
The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between September 17, 2002 and March 20, 2003, thereby
artificially inflating the price of Electro Scientific securities.
The complaint alleges that these statements were materially false and
misleading because they failed to disclose and misrepresented the
following adverse facts, among others:
(1) that the Company had reported artificially inflated financial
results for the quarters ended August 31, 2002 and November
30, 2002;
(2) that the Company was improperly accounting for sales, thereby
overstating its sales figures and, in addition thereto, was
understating the cost of sales, in violation of Generally
Accepted Accounting Principles (GAAP) and its own revenue
recognition policies;
(3) that the Company lacked adequate internal controls and was
therefore unable to ascertain the true financial condition of
the Company; and
(4) as a result of the foregoing, it was not true that the
Company's financial statements published during the class
period contained "all adjustments ... necessary for a fair
presentation" of the Company's financial position.
On March 20, 2003, after the close of the market, Electro Scientific
issued a press release announcing that it would be restating its
financial statements for the first and second fiscal quarters. In
response to this announcement, the price of Electro Scientific common
stock dropped precipitously falling from $15.17 per share to $12.51 per
share.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
FIFTH THIRD: Marc Henzel Commences Securities Lawsuit in S.D. OH
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Southern District of Ohio,
Western Division, on behalf of purchasers of the securities of Fifth
Third Bancorp (Nasdaq: FITB) between September 21, 2001 to January 31,
2003 inclusive. The action, is pending against the Company, George A.
Schaefer, Jr. (CEO and President), Neal E. Arnold (CFO) and David J.
DeBrunner (Controller).
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 September 21, 2001 to January 31,
2003. The complaint alleges, among other things, that Fifth Third
issued press releases and filed financial reports with the SEC which
represented that the Company had successfully and seamlessly integrated
a large corporate acquisition (Old Kent) into its operations and
further represented that its business was stronger than ever and that
the Company would continue to grow and provide investment-safety.
According to the complaint, these statements were materially false and
misleading because they failed to disclose that the Old Kent (and
other) merger(s) seriously strained the Company's infrastructure,
causing deficiencies in its internal controls and other business-
critical systems. The alleged motive in this action was the Company's
plan to acquire a Tennessee-based bank using FifthThird stock as
currency.
On September 10, 2002, the Company announced that it would be taking a
$54 million after-tax ($81.8 million pre-tax) charge for impaired
funds, resulting from a botched accounting reconciliation. According
to the complaint, the Company played down the incident as a one-time
immaterial event, which was false and misleading because, according to
the complaint, it was symptomatic of material, company-wide
infrastructure deficiencies.
On November 14, 2002 the Company revealed that the write-off had
triggered investigations by banking regulators and the SEC. According
to the complaint, the Company continued to insist, falsely, that its
controls were adequate. On January 31, 2003, the Company reported that
banking regulators would likely take formal action against the Company,
which would likely require Fifth Third to improve its internal controls
by, among other things, adding personnel and processes.
On February 3, 2003, the first trading day following the announcement,
the price of Fifth Third common stock closed at $52.21 per share, a
decline of 15% from the closing price on November 14, 2002 close of
$62.53, the day that Fifth Third first revealed that it was being
investigated by banking regulators and the SEC.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
GAINSCO INC.: Vianale & Vianale Files Securities Suit in S.D. FL
----------------------------------------------------------------
Vianale & Vianale LLP initiated a securities class action on behalf of
purchasers of the securities of Gainsco, Inc. (OTCBB:GNAC) between
November 17, 1999 and February 7, 2002, inclusive. The suit is pending
in the United States District Court, Southern District of Florida,
against the Company, Glenn W. Anderson and Daniel J. Coots.
The complaint alleges that during the class period, defendants issued
false and misleading statements to the marketplace that artificially
inflated the price of Gainsco's shares. Specifically, on November 17,
1999, Gainsco, an insurance holding company, announced that it would
acquire Tri-State, Ltd.'s privately owned insurance operation which
specialized in nonstandard passenger automobile insurance.
According to CEO Anderson, the Tri-State acquisition marked the
Company's expansion of its passenger auto insurance business that began
with Gainsco's earlier purchase of Miami-based Lalande Group. Mr.
Anderson also told the public that the Company would integrate Tri-
State's business with Lalande Group's underwriting and claims systems
"to maximize service and cost efficiency." The transaction was
expected to be "minimally accretive to earnings in 2000."
The Company's second-quarter Form 10-Q, filed in August 2000, stated
that Gainsco had paid $1.15 million to Tri-State's former owners "based
on a conversion goal and specific profitability targets," and falsely
lulled the investment community into believing that Tri-State was
profitable, when in fact it was not. Gainsco continued to issue highly
positive statements throughout 2000 and 2001 and assured the public
that it was resolved to "maintain a strong, disciplined balance sheet."
On August 9, 2001, however, the Company announced that it was selling
the agency operations of Tri-State and would take a $5.1 million write
off from its original $6.0 million investment in Tri-State. This,
however, was only a partial disclosure of Tri-State's problems and led
investors to believe the worst was behind the Company.
On August 14, 2001, the Company announced that it would sell Tri-State
to its president, Herb Hill, for $900,000. On February 7, 2002, the
end of the class period, Gainsco announced that it would discontinue
writing commercial lines insurance business due to adverse claims
development and unprofitable results." Gainsco's stock declined
substantially on the news.
For more details, contact Kenneth J. Vianale or Julie Prag Vianale by
Mail: 5355 Town Center Road, Suite 801, Boca Raton, Florida 33486 by
Phone: (561) 391-4900 by E-mail: info@vianalelaw.com
GAINSCO INC.: Cauley Geller Commences Securities Suit in S.D. NY
----------------------------------------------------------------
Cauley Geller Bowman Coates & Rudman, LLP initiated a securities class
action in the United States District Court for the Southern District of
Florida, on behalf of purchasers of Gainsco, Inc. (OTC Bulletin Board:
GNAC) publicly traded securities during the period between November 17,
1999 and February 7, 2002, inclusive.
The complaint alleges that during the class period, defendants issued
false and misleading statements to the marketplace that artificially
inflated the price of Gainsco's shares. Specifically, on November 17,
1999, Gainsco, an insurance holding company, announced that it would
acquire Tri-State, Ltd.'s privately-owned insurance operation which
specialized in nonstandard passenger automobile insurance.
According to CEO Anderson, the Tri-State acquisition marked the
Company's expansion of its passenger auto insurance business that began
with Gainsco's earlier purchase of Miami-based Lalande Group. Mr.
Anderson also told the public that the Company would integrate Tri-
State's business with Lalande Group's underwriting and claims systems
"to maximize service and cost efficiency." The transaction was
expected to be "minimally accretive to earnings in 2000."
The Company's second-quarter Form 10-Q, filed in August 2000, stated
that Gainsco had paid $1.15 million to Tri-State's former owners "based
on a conversion goal and specific profitability targets," and falsely
lulled the investment community into believing that Tri-State was
profitable, when in fact it was not. Gainsco continued to issue highly
positive statements throughout 2000 and 2001 and assured the public
that it was resolved to "maintain a strong, disciplined balance sheet."
On August 9, 2001, however, the Company announced that it was selling
the agency operations of Tri-State and would take a $5.1 million write
off from its original $6.0 million investment in Tri-State. This,
however, was only a partial disclosure of Tri- State's problems and led
investors to believe the worst was behind the Company.
On August 14, 2001, the Company announced that it would sell Tri- State
to its president, Herb Hill, for $900,000. On February 7, 2002, the
end of the class period, Gainsco announced that it would "discontinue
writing commercial lines insurance business due to adverse claims
development and unprofitable results." Gainsco's stock declined
substantially on the news.
For more details, contact Samuel H. Rudman, 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 Fax: 1-501-312-8505 or by E-
mail: info@cauleygeller.com
HOTELS.COM: Marc Henzel Commences Securities Lawsuit in N.D. TX
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Northern District of Texas
on behalf of purchasers of Hotels.com (NASDAQ: ROOM) publicly traded
securities during the period between October 23, 2002 and January 6,
2003.
The complaint charges Hotels.com and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Hotels.com is an online consolidator of hotel accommodations,
contracting with hotels in advance for volume purchases and guaranteed
availability of hotel rooms at wholesale prices, which are then sold to
customers.
On October 10, 2002, USA Interactive announced that it was ending its
ongoing process to acquire all of the shares of Hotels.com that it did
not own. Hotels.com then claimed that its prospects were "excellent"
and days later, on October 23, 2002, the Company projected phenomenal
growth for its Q4, including Q4 02 revenue of $283-$289 million and
cash earnings per share of $0.46 to $0.47. These projections, on top
of the Company's October 10, 2002 announcement, sent the Company's
shares soaring to above $60 per share, eventually hitting a Class
Period high of $75 on December 2, 2002. Then on January 6, 2003, with
more than $42 million of insider trading proceeds, the defendants
announced that the Company would fall materially short of hitting its
forecasted projections.
On this news, the Company's shares dropped to $44 from $59, a market
cap loss of more than $855 million.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
IMPERIAL CHEMICALS: Ademi & O'Reilly Files Securities Suit in NY
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Ademi & O'Reilly, LLP initiated a securities class action in the United
States District Court for the Southern District of New York on behalf
of purchasers of Imperial Chemical Industries PLC (NYSE:ICI) American
Depositary Shares (ADSs), each representing 1 pound Sterling Ordinary
Share, during the period between August 1, 2002 to March 24, 2003,
inclusive.
The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between August 1, 2002 and March 24, 2003, thereby artificially
inflating the price of ICI securities.
Throughout the class period, as alleged in the complaint, defendants
issued numerous press releases in which they stated that they had
resolved the Company's distribution and software problems that the
Company had experienced at its Quest division's Fragrance & Food
businesses. Defendants further stated that the Company was on track to
report strong financial results, that the Company had cleared its
backlog of customer orders and that the Company had not lost any
customers as a result of its production problems.
The complaint 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 ICI's software, distribution and production problems at
its Quest division were not "temporary" problems or "unique"
to the Naarden, The Netherlands location, but impacted
company-wide operations and profitability;
(2) that ICI's software, distribution and production problems at
its Quest division had not been "essentially" or "largely"
"resolved" or "rectified"; and
(3) that contrary to ICI's representations that it had cleared its
backlog of orders and not lost any customers as a result of
the software, distribution and production problems at Quest,
ICI's customers were, in fact, obtaining new sources of supply
and discontinuing their relationships with ICI.
On March 25, 2003, before the open of trading, ICI shocked investors
when it issued a profit warning with respect to its fiscal 2003 first
quarter. Defendants announced that its first quarter profit would drop
approximately 24%, as a result of, among other things, "business lost
following the customer service problems in 2002."
Following this announcement, shares of ICI fell from a close of $9.60
per share on March 24, 2003 to a close of $5.60 per share on March 25,
2003, or a single-day decline of more than 36%, on nearly twenty times
normal trading volume.
For more details, contact Guri Ademi by Phone: 1-866-264-3995 by Fax:
1-414-482-8001 by E-mail: gademi@ademilaw.com
ROYAL AHOLD: Marc Henzel Commences Securities Lawsuit in S.D. NY
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The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court, Southern District of New York, on
behalf of purchasers of the securities of Koninklijke Ahold N.V. d/b/a
Royal Ahold, Inc. (NYSE: AHO) between June 7, 2001 and February 24,
2003, inclusive.
The complaint alleges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between June 7, 2001 and February 24, 2003, thereby artificially
inflating the price of Ahold American Depositary Receipts (ADR's).
The complaint alleges that in 2001 and 2002 Ahold issued quarterly
press releases reporting the Company's results of operations and
financial condition. These press releases and it public filings with
the SEC represented that the Company was growing at a breakneck pace.
The complaint further alleges that on February 24, 2002 Ahold shocked
the market; it issued a press release announcing that Ahold's operating
earnings for fiscal year 2001 and expected operating earnings for
fiscal year 2002 "have been overstated by an amount that the company
believes may exceed U.S. $500 million," and that the overstatements
would require the restatement of Ahold's financial statements for
fiscal year 2001 and the first three quarters of 2002.
The release further stated that the Company was investigating the
legality of certain transactions at its Argentine Disco unit, and that
the investigation had uncovered certain transactions that were
"questionable." The Company further announced that, "in view of the
above" van der Hoeven and Meurs were resigning; the Company was
deferring the announcement of its full year financial results scheduled
for March 5, 2003; and that Ahold's auditors had suspended the fiscal
year 2002 audit pending completion of these investigations.
On this news, the price of Ahold securities plummeted. As
illustrative, the ADRs closed at $10.69 on Friday, February 21, 2003.
The Company's announcement was released at about 2:30 a.m. Eastern
Standard Time on Monday, February 24, 2002. The ADRs opened on the
next trading day at $4.36, fell to $3.60 and closed the day at $4.16,
down 61% from the previous day's closing price.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
SAWTEK INC.: Marc Henzel Commences Securities Lawsuit in M.D. FL
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The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the Middle District of Florida
on behalf of all persons who purchased securities of Sawtek, Inc.
currently a subsidiary of TriQuint Semiconductor, Inc. (Nasdaq: TQNT)
between January 27, 2000 and May 24, 2001, inclusive.
The complaint charges Sawtek and certain of its executive officers with
violations of federal securities laws. Among other things, plaintiff
claims that defendants' material omissions and the dissemination of
materially false and misleading statements concerning Sawtek's business
operations and financial performance caused Sawtek's stock price to
become artificially inflated, inflicting damages on investors. Sawtek
designs, develops, manufactures and markets a broad range of electronic
signal processing components, based on "surface acoustic wave" or SAW
technology, primarily for use in the wireless communications industry.
The complaint alleges that during the class period, defendants
misrepresented Sawtek's financial performance by improper "channel
stuffing" -- inflating revenue by shipping more products than
distributors could sell -- and by disseminating false and misleading
statements concerning the Company's revenue and business prospects
despite a widespread downturn in the wireless and telecommunications
markets.
Sawtek's actual financial performance was revealed on May 23, 2001,
when defendants' acknowledged that the Company's projected results for
the quarter ending June 30, 2001, would fall well below the Company's
previously issued revenue guidance. By the close of trading on the
next day, May 24, 2001, Sawtek's stock price had plunged more than
seventeen percent (17%) from the previous day's close as a result of
this news.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
SUPERGEN INC.: Weiss & Yourman Lodges Securities Suit in N.D. CA
----------------------------------------------------------------
Weiss & Yourman initiated a securities class action in the United
States District Court for the Northern District of California on behalf
of purchasers of SuperGen, Inc. (Nasdaq: SUPG) stock between April 18,
2000 and March 13, 2003, inclusive.
The complaint charges that the Company and its Chief Executive Officer,
President and Chairman of the Board violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and Rule 10-b(5). The action
alleges that defendants issued a series of false and misleading
statements concerning its Mitozytrex drug (also known as MitoExtra) and
the drug's ability to treat cancer.
Specifically, the complaint charges that defendants repeatedly issued
press releases claiming Mitozytex was a new drug available to treat
gastric and pancreatic cancers, when, in fact, the drug was nothing
more than an injectable form of the already existing drug mitomycin.
Moreover, the complaint alleges that defendants purposefully did not
inform the public of the significant risks associated with use of
Mitozytex, including but not limited to fever, anorexia, nausea,
vomiting, myelosuppression and hemolytic uremic syndrome.
As a result of these false and misleading statements, defendants were
able to sell millions of shares of SuperGen stock and notes for
proceeds of $25 million, thereby profiting from the artificial
inflation in SuperGen's stock price. The complaint charges that as a
result of defendants' actions, plaintiff and the Class were damaged.
For more details, contact Weiss & Yourman - Los Angeles by Phone:
(800) 437-7918 by E-mail: info@wyca.com or visit the firm's Website:
http://www.wyca.com.
UNUMPROVIDENT CORPORATION: Marc Henzel Files TN Stock Fraud Suit
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
filed in the United States District Court for the Eastern 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.
UnumProvident operates around the World.
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.
UnumProvident and its top officers inflated the prices of the Company's
securities in order to pursue an accelerated securities sale program.
Defendants knew that by concealing UnumProvident's true financial
results they could foster the perception in the business community that
UnumProvident was a "growth company," i.e., it was the only way
UnumProvident could post the revenue and earnings per share growth
claimed by defendants.
On February 5, 2003, UnumProvident announced that it had recorded
investment losses of $93 million and also reported that it was
responding to Securities and Exchange Commission requests for
information relating to its investment disclosures
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
VAXGEN INC.: Much Shelist Launches Securities Lawsuit in N.D. CA
----------------------------------------------------------------
Much Shelist Freed Denenberg Ament & Rubenstein, PC initiated a class
action against VaxGen Incorporated (Nasdaq:VXGN) and certain of its
officers and directors in the United States District Court for the
Northern District of California, on behalf of all persons and entities
who purchased Company securities during the period August 6, 2002
through February 26, 2003, inclusive.
The suit alleges that VaxGen and certain of its officers and directors,
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 during the
class period. These alleged misstatements had the effect of
artificially inflating the price of Company securities.
VaxGen is engaged in the development and commercialization of AIDSVAX,
a vaccine designed to prevent infection or disease caused by HIV (Human
Immunodeficiency Virus), the virus that causes AIDS. Allegedly, during
the class period, defendants were completing the final stages of
AIDSVAX's Phase III clinical trials required to obtain Food and Drug
Administration approval to market AIDSVAX as an AIDS vaccine.
According to the complaint, throughout the class period, defendants
caused VaxGen to make a number of positive statements about the status
of the trial and describing their eventual plans to manufacture and
market AIDSVAX, causing VaxGen's stock to trade at artificially
inflated prices.
On February 23, 2003, VaxGen shocked the market by reporting the long-
anticipated results of the US trials, disclosing that the "study did
not show a statistically significant reduction of HIV infection within
the study population as a whole, which was the primary endpoint of the
trial." The partial disclosure of the overall failure of the US
clinical trial caused VaxGen's shares to plummet, declining over 50% to
approximately $3 per share on February 24, 2003.
However, even when defendants released the results on Feb. 24, 2003,
they claimed that while the vaccine failed to demonstrate efficacy on
US caucasians, the trials had demonstrated 30%-84% efficacy rates in US
blacks and Asians. That analysis, the company said, had less than a 1%
chance of being due to random chance, making it highly statistically
significant. VaxGen President Donald P. Francis touted the results as
evidence that AIDSVAX could protect against HIV infection.
As reported by The Wall Street Journal on February 24, 2003, the
"results overall won't lead the Food and Drug Administration to approve
the vaccine for use in the wider public, but the company hopes that
further analysis, as well as results from another trial being conducted
in Thailand on injection drug users, may prompt the agency to approve
the vaccine for some ethnic minorities." These corrective statements
had their intended effect and VaxGen's stock closed at close to $7 per
share on February 24, 2003.
On February 26, 2003, defendants were forced to admit that the
reliability of their earlier reports of higher efficacy rates for non-
caucasians were impaired because they had not taken the requisite
"penalties" to account for the fact that less than 500 of the 5000
clinical trial participants were non-caucasians, resulting in an
extremely small subset of data being analyzed for non-caucasians.
As the news that earlier promises that AIDSVAX could prove useful for
non-caucasians fell apart, the stock declined further, resulting in a
total loss in market cap since November 18, 2002 of approximately 85%.
For more details, contact Carol V. Gilden by Phone: (800) 470-6824 or
by E-mail: investorhelp@muchshelist.com
VERITAS SOFTWARE: Marc Henzel Lodges Securities Suit 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 the Company and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The
Company 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 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
WESTAR ENERGY: Marc Henzel Commences Securities Suit in KS Court
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class action
in the United States District Court for the District of Kansas on
behalf of all purchasers of the common stock of Westar Energy Inc.
(NYSE: WR) and on behalf of all purchasers of Western Resources Capital
I Cumulative Quarterly Income Preferred Securities Series A (NYSE:
WR_pa) from March 31, 2001 through December 26, 2002, inclusive.
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 March 31, 2001 and December 26, 2002.
As alleged in the complaint, these statements were materially false and
misleading because they failed to disclose and/or misrepresented the
following adverse facts, among others:
(1) that the Company had engaged in certain trades that may have
violated Federal Energy Regulatory Commission (FERC) affiliate
transaction rules, specifically that these transactions
involved power sales from one Cleco Corporation (NYSE: CNL)
affiliate to Westar and then back to another or the same Cleco
affiliate, these transactions totaled approximately $3.4
million in 2000, $12.6 million in 2001 and $3.8 million in
2002; and
(2) further as a result of a improper accounting practices
regarding Westar's approximately 88% ownership of Protection
One (NYSE: POI) a provider of property monitoring services,
including electronic monitoring and maintenance of alarm
systems, first and second quarter 2002 financial earning
results had to be re-audited and restated.
On December 26, 2002, the last day of the class period, Westar
announced in a press release that it had received a subpoena from the
Federal Energy Regulatory Commission on December 16, 2002, and that in
addition to seeking details on trades with Cleco and its affiliates,
FERC also requested documents concerning power transactions between
Westar's system and marketing operations, and information on power
trades in which Westar or other trading companies acted as
intermediaries.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave.,
Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735
by Fax: 610-660-8080 by E-Mail: mhenzel182@aol.com or visit the firm's
Website: http://members.aol.com/mhenzel182
*********
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 2003. All rights reserved. ISSN 1525-2272.
This material is copyrighted and any commercial use, resale or
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