/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030611.mbx C L A S S A C T I O N R E P O R T E R Wednesday, June 11, 2003, Vol. 5, No. 114 Headlines AGENT ORANGE: Supreme Court Divided on Agent Orange Litigation AMERICAN AIRLINES: Ex-TWA Pilots To Testify in Senate Hearing BROWN & WILLIAMSON: Receives Stay in IL Light Cigarettes Lawsuit CREDIT CARDS: Parties in Visa, Mastercard Lawsuit Sign Agreement ENRON CORPORATION: Mediator Backs out of Bankruptcy Proceedings GENERAL MOTORS: To Recall About 107T Buick Rendezvous Vehicles GOLDEN STREAM: Recalls 8 oz Island Crunch Mix For Allergy Hazard JENNIFER CONVERTIBLES: Fairness Hearing Set September 2003 in NY KIEN IMPORT: Recalls Pickled Rootlets For Undeclared Sulfites KOREA: Civic Group Urges Implementation of Class Action System MICROSOFT CORPORATION: EU to Refrain From Setting Probe Deadline NEVADA: Governor Signs Law Protecting Homebuilders From Lawsuits NEW ORLEANS: Lawsuit For Garbage Dump Residents Nears Trial Date PACIFIC SMOKING: Recalls Salmon Due To Listeria Contamination PARLUX FRAGRANCES: Investors Launch Suit V. Taking Firm Private PHARMACEUTICAL FIRMS: Kenneth Moll To File Personal Injury Suit SUMMIT IMPORT: Recalls Macapuno Item Due To Undeclared Sulfites Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases ALLOU HEALTHCARE: Berman DeValerio Lodges Securities Suit in NY ALLOU HEALTHCARE: Shalov Stone Files Securities Suit in E.D. NY DAISYTEK INTERNATIONAL: Federman & Sherwood Begins TX Stock Suit IMPERIAL CHEMICAL: Wolf Haldenstein Lodges Securities Suit in NY MERILL LYNCH: Pomerantz Haudek Files Securities Suit in S.D. NY MORGAN STANLEY: Shapiro Haber Lodges Securities Suit in S.D. NY PATRIOT AMERICAN: Milberg Weiss Files Securities Suit in N.D. CA RECOTON CORPORATION: Schiffrin & Barroway Files Stock Suit in FL REGENERON PHARMACEUTICALS: Kirby McInerney Files Securities Suit TYCO INTERNATIONAL: Bernard Gross Lodges Securities Suit in NY ********* AGENT ORANGE: Supreme Court Divided on Agent Orange Litigation -------------------------------------------------------------- The United States Supreme Court is divided on whether Vietnam veterans should be allowed to sue chemical companies over Agent Orange exposure, the Associated Press reports. Agent Orange is an herbicide used in the 1960s and 1970s to clear dense jungle foliage that provided cover for enemy forces. In 1984, companies that made the herbicide like Dow Chemical Co., Monsanto Co. and others, reached a $180 million settlement, which they thought would end the litigation. They tried to reach veterans with ads in local and national newspapers and magazines. Two war veterans filed claims almost ten years after the litigation, saying they were wrongly shut out of the settlement. Joe Isaacson, a vice principal in Irvington, NJ and Daniel Stephenson, a retired helicopter pilot living in Florida, both claimed their constitutional rights were violated by the settlement. They told the court that although the Vietnam War ended 30 years ago, some war-related illnesses are just being discovered. The two men claimed their cancers are related to Agent Orange. The justices voted 4-4 on whether it's too late for the veterans to sue. The court, however, allowed the vets to continue lawsuits claiming they were wrongly shut out of the settlement. The court ordered more consideration of Mr. Isaacson's claims, and left undisturbed a decision that allowed Mr. Stephenson's lawsuit. A ninth Justice, John Paul Stevens recused himself from voting. He did not give a reason for his recusal, but his only son was a Vietnam veteran who apparently suffered from cancer before his death in 1996 at age 47. The court was asked two questions in the suit. First, whether people who are unaware of their involvement in a class action suit are allowed to argue later that they were not property represented and second, what standard should be used if those lawsuits are allowed, the Associated Press reports. The court did not answer these questions. The effect of tie votes, which are extremely rare at the court, is to affirm the 2nd US Circuit Court of Appeals judgment and allow litigation to proceed in the lower court. Business groups had feared a ruling that would threaten to reopen many class action settlements at a cost of millions or possibly billions of dollars. Groups like the Veterans of Foreign Wars and the American Legion urged the court to fix what they called an injustice against people "who survived the bullets and bombs of the enemy" but are now dying of cancer, AP states. AMERICAN AIRLINES: Ex-TWA Pilots To Testify in Senate Hearing ------------------------------------------------------------- The leaders of a group of 2,300 former TWA pilots are welcoming the chance to take their "horror story" of the merger with American Airlines before a special, June 12, 2003, US Senate hearing chaired by Missouri Sen. Kit Bond. "We commend Sen. Bond and his colleagues for the courage and the wisdom to chair this special hearing," said First Officer John Hefley speaking for TWA Pilots for Justice, the group of former TWA pilots fighting to regain reinstatement of lost seniority and more than 1,400 jobs to date in the aftermath of the airline integration. "It is time the Congress and the American people learned how more than 2,300 ex-TWA pilots and their families were deceived and victimized in the consolidation." Sen. Bond will chair the US Senate Health, Education, Labor and Pension Committee, which has called before the committee the key players in the events surrounding the merger, including leaders of the airlines and their pilots and flight attendants unions. Sen. Bond's home state has been a major casualty in the airline merger with thousands of Missouri residents who formerly worked for TWA losing their jobs. Witnesses will include former TWA First Officer and Pilot Ted Case. Mr. Case had accumulated 13 plus years as a pilot with TWA, but was stripped of all years of seniority when he joined American on April 10, 2001. He was also a union representative for the TWA pilots during the merger discussions and is a co- plaintiff in the federal class action filed by the pilots. "This was a case of skyway robbery and that will be evident from the hearing," said Mr. Case. "I will be appearing on behalf of all my colleagues and every American worker who holds so dear the fundamental principle of seniority. What happened to us was wrong, needs to be corrected, and should never be allowed to happen again to another worker in this country." BROWN & WILLIAMSON: Receives Stay in IL Light Cigarettes Lawsuit ---------------------------------------------------------------- Tobacco giant Brown & Williamson Tobacco Corporation was granted a stay in the "lights" cigarettes class action filed in the same Illinois jurisdiction where a judge found against rival Philip Morris USA in a similar suit earlier this year, Reuters reports. In March, the Madison County Circuit Court ordered Philip Morris to pay a $10.1 billion fine in a lawsuit charging it with misleading smokers into thinking light cigarettes were safer than regular cigarettes. The court stayed all further proceedings in the case against the Company because issues on appeal in the case against Philip Morris would directly impact the case against Brown & Williamson, the Louisville, Kentucky- based company said, according to Reuters. Philip Morris USA, Altria Group Inc.'s (MO) U.S. tobacco unit, is waiting to hear whether the Illinois Supreme Court will accept a direct appeal of the $10.1 billion verdict. If accepted, a direct appeal would bypass the state's intermediate appellate court. CREDIT CARDS: Parties in Visa, Mastercard Lawsuit Sign Agreement ---------------------------------------------------------------- Formal settlement agreements have been signed by parties in the antitrust case against Visa USA and MasterCard International. The multi-billion dollar agreement will be submitted in US District Court in Brooklyn, New York to Judge John Gleeson for preliminary approval. "The pay out to merchants will be easy, fair, and equitable. The payment amount will be based on a merchant's volume of debit card transactions between October 25, 1992 and the May 2003 settlement," said Lloyd Constantine, the lead counsel for the merchants and a principle in the New York firm Constantine & Partners. "The changes in Visa and MasterCard's business practices, beginning August 1, will bring even larger economic benefits for merchants as offline debit interchange fees drop. In the long run, this settlement offers more choice and a positive pricing effect for consumers." According to the settlement terms, Visa is set to pay $2.025 billion to merchants over the next 10 years and MasterCard is set to pay $1.025 billion over the same period. By December 22, 2003, Visa and MasterCard must pay $350 million to the settlement fund and then pay $300 million every year for the next nine years. However, both Visa and MasterCard have agreed to cooperate in an effort to secure financing to allow a one-time complete payment to merchants next year. That would allow merchants to receive one check, instead of getting ten fractional payments over ten years. "This process would save a significant amount in administrative costs, upward of $100 million, so we expect that the total of the single check merchants would receive would be worth significantly more than the total they would have received in ten checks over ten years," said Mr. Constantine. The agreements also state that Visa and MasterCard will lower fees on offline signature debit card transactions beginning August 1, 2003, saving merchants more than $1 billion for the remainder of this year. As of January 1, 2004, merchants will no longer be forced to comply with the credit card associations' tying arrangements that required them to accept all Visa and MasterCard debit card products if they accepted the associations' credit cards. Visa and MasterCard have agreed to make their database of debit card transactions available so that notice and the allocation of payments to merchants will be completed quickly, cost effectively, and accurately. "In effect, this will mean most merchants will be able to receive a claim with minimal paperwork," said Mr. Constantine. "If a merchant questions the payment they will be able to complete a more detailed form to ensure that they receive the proper payment." The lawsuit, filed in October 1996, by Sears Roebuck, Wal-Mart, The Limited, Safeway, Circuit City, and three trade associations charged Visa and MasterCard with violating US antitrust law by monopolistic and anticompetitive business practices concerning debit cards. The lawsuit was certified as a class action and now includes more than five million merchants. The settlements with Visa and MasterCard were reached earlier this year as a trial was scheduled to begin in federal court. The specifics of the plan of allocation for the merchants' payments are scheduled for submission to the court on August 18. The parties will seek final approval of the agreement by Judge Gleeson in late September. ENRON CORPORATION: Mediator Backs out of Bankruptcy Proceedings --------------------------------------------------------------- The mediator in civil and bankruptcy proceedings involving Enron Corporation bowed out before the process began, the Associated Press reports. Manhattan federal judge Kevin T. Duffy was tasked with helping Enron, shareholders who've sued the energy company and financial institutions Enron says gave it bad advice settle their differences. Judges Arthur J. Gonzalez, who is handling Enron's bankruptcy case in Manhattan, and Houston federal District Judge Melinda Harmon, who is overseeing suits brought by shareholders and others, appointed Judge Duffy. "Any delay is a slight setback, but we know they'll get someone else," Brian Rosen, a lawyer representing Enron in bankruptcy proceedings told AP. "We await the new appointment and look forward to getting the process underway," said Trey Davis, a spokesman for the University of California, the lead plaintiff in the shareholders suit against Enron, AP states. Although he isn't involved in the Enron situation, Andrew Barton of the American Arbitration Association, an organization that develops rules that guide alternative dispute resolution, told AP conflicts of interest are a frequent reason mediators step down. "Mediators back out when they discover conflicts of interest," he said. "I don't know what happened (in this case), but it's generally a conflict of interest" that prompts a change. A new mediator will be named soon, although Mr. Rosen told AP Enron hasn't been advised of any time frame more specific than that. GENERAL MOTORS: To Recall About 107T Buick Rendezvous Vehicles -------------------------------------------------------------- General Motors Corporation will recall about 107,000 model year 2002 and 2003 Buick Rendezvous vehicles to repair its rear liftgate, the Associated Press reports. 95,000 of the sports utility vehicles are in the United States, while 12,000 are in Canada. In severe crashes, the liftgate structure may fracture and may separate from the latch assembly and open. In one case, GM said, a person in a vehicle was injured after the liftgate tore away from the latch. The Company will fix the liftgate by adding a metal strap between the inner and outer panels. The repair will be done at no cost to owners, the Associated Press states. GOLDEN STREAM: Recalls 8 oz Island Crunch Mix For Allergy Hazard ---------------------------------------------------------------- Golden Stream Quality Foods of Fishers, IN is recalling its 8 oz. packages of Island Crunch Mix because they may contain undeclared cashews. People who have allergies to cashews run the risk of serious or life threatening allergic reaction if they consume these products. The Island Crunch Mix was distributed to retail stores in the following states: AL, AZ, CA, CO, FL, GA, HI, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, NC, NE, NY, OH, PA, SC, TN, TX, VA, WA and WI. The products affected would have a "best by date" between 100303 and 050504. The product comes in an 8 oz. preprinted plastic stand up bag. No illnesses have been reported to date in connection with this problem. The recall was initiated after routine quality inspections discovered the cashew-containing product was distributed in packaging that did not reveal the presence of cashews. In order to maintain the highest quality control, the company has already conducted a process audit and has implemented the appropriate corrective actions during the processing and packaging process. For more details, contact the Company by Phone: 317-567-2726. JENNIFER CONVERTIBLES: Fairness Hearing Set September 2003 in NY ---------------------------------------------------------------- Fairness hearing for the settlement proposed by Jennifer Convertibles to settle the securities class action filed against it is set for September 19,2003 in the United States District Court for the Eastern District of New York. The suit was filed on behalf of all persons or entities who purchased or otherwise acquired Jennifer Convertibles Common Stock from November 24,1993 to December 2,1994. The hearing is to: (1) determine whether the proposed settlement of this class action for up to $2,250,000 in cash should be approved by the Court as fair, reasonable and adequate and whether the litigation should be dismissed; (2) whether the application for an award of attorneys' fees and reimbursement of expenses should be approved; and (3) whether Plaintiffs' proposed plan of allocation should be approved. The court may continue or adjourn the hearing without further notice to the members of the class. For more details, contact Jeffrey H. Squire or Lewis Sandler by Mail: 830 Third Avenue, New York, NY 10022 or contact David L. Wales of Wolf Haldenstein Adler Freeman & Herz, LLP by Mail: 270 Madison Avenue, New York, NY 10016 KIEN IMPORT: Recalls Pickled Rootlets For Undeclared Sulfites ------------------------------------------------------------- Kien Import Corporation is recalling 15oz. glass jars of K. McGill Brand Pickled Lotus Rootlets because the product contains undeclared sulfites. People who have severe sensitivity to sulfites run the risk of serious or life threatening allergic reactions if they consume this product. No illnesses have been reported to date in connection with this product. The Pickled Lotus Rootlets, a product of Vietnam, was distributed nationwide to retail stores in uncoded, 15oz. glass jars. The recall was initiated after it was discovered through routine sampling by NYS Dept. of Agriculture & Markets food inspectors that the product containing sulfites was distributed in packaging that did not declare the presence of sulfites. The consumption of 10 milligrams of sulfites per serving has been reported to elicit severe reactions in some asthmatics. Anaphylactic shock could occur in certain sulfite sensitive individuals upon ingesting 10 milligrams or more of sulfites. Analysis of the Pickled Lotus Rootlets revealed that it contained greater than l0 mg of sulfites per serving. Establishments and consumers who have purchased the 15oz. glass jars of K. McGill Brand Pickled Lotus Rootlets can return the product to the place of purchase for a full refund. For more details, contact the Company by Phone: 718-349-8282. KOREA: Civic Group Urges Implementation of Class Action System -------------------------------------------------------------- A civic group urged Korean lawmakers to introduce the system allowing class action lawsuits to be filed against companies engaged in accounting fraud and false disclosures without delay, the Korea Times reports. The People's Solidarity for Participatory Democracy (PSPD) said that giving fraud-ridden companies a two-year grace period to clean up their balance sheets implies that fraudulent accounting is prevalent in the local market. The PSPD also said the class action system should allow retail investors to sue any fraudulent companies, regardless of the size of the companies. MICROSOFT CORPORATION: EU to Refrain From Setting Probe Deadline ---------------------------------------------------------------- The European Union will resist announcing a deadline for its four-year investigation of software giant Microsoft Corporation over allegations of antitrust law violations, the Associated Press reports. "We will now resist media pressure (to offer deadlines)," EU spokeswoman Amelia Torres said in a regular news briefing, AP states. "From now on, no more predictions. The Company was accused of illegally bundling its media player into its Windows operating system and withholding key information from rivals to try to win more of the market in software for computer servers. According to The New York Times, the Commission sent a questionnaire to music and movie companies two months ago, asking them how they view the technologies they use to disseminate material over the Internet. Microsoft argues that its 2002 settlement with US authorities, combined with additional steps it has taken, should satisfy European regulators. The Commission also is studying complaints Microsoft is leveraging its Windows monopoly into new markets, including mobile phones. The EU has been thinking about the legal and political implications of cracking down on the US software giant and announced that a final ruling was months away. The Commission has been wrestling with how far to push Microsoft for remedies, such as an order to spin off its media player, which lets computer users listen to music and watch video clips, AP states. NEVADA: Governor Signs Law Protecting Homebuilders From Lawsuits ---------------------------------------------------------------- Nevada governor Kenny Guinn signed into law Bill SB241, a compromise legislating requiring what builders call a "right to repair" before Nevada homeowners can sue for construction defects, the Reno Gazette & Journal reports. Under the new law, homeowners are required to issue formal complaints about the defects in their houses to a builder before filing a lawsuit. The homeowner could only file a lawsuit if the builder didn't respond to the complaint within three months or didn't fix the problem. If builders elect to repair defects, all repairs must be completed within 105 days if the problems are in up to four homes, and 150 days if the defects are in five or more homes. When a homeowner notifies a builder of a defect common throughout an association or neighborhood, the builder may send a notice to other homeowners who have similar homes constructed by the builder but haven't yet filed a complaint. If the notice isn't sent, those homeowners could go straight to court. If a notice is sent, defects are found and a repair is requested, repairs would have to be completed within 105 days, the Reno Gazette & Journal reports. The SB421 was instituted after lawsuits flooded the fast-growing Western states such as Arizona and California. More than 100 such suits are crowding Las Vegas courts, as these areas now host sprawling developments built quickly to accommodate tremendous growth. NEW ORLEANS: Lawsuit For Garbage Dump Residents Nears Trial Date ---------------------------------------------------------------- Recently, Civil District Judge Nadine Ramsey ruled that the 1993 lawsuit, brought by residents seeking compensation for living atop an old, contaminated city garbage dump, should proceed, a ruling which Linda Harang, attorney for the Agriculture Street Landfill residents, said could move the case to trial by June 2004. The lawsuit was filed against the city of New Orleans, the Orleans Parish School Board and the Housing Authority of New Orleans, the Associated Press Newswires reports. The three defendants said they would appeal. The residents include people who lived in two residential developments built atop the Agriculture Street Landfill, the city's main garbage dump from 1909 to 1958. The Environmental Protection Agency found 149 chemicals, including lead and arsenic, in soil beneath the homes. The residents ask, in their lawsuit, to be included in a 10-year health program to identify potential medical problems. They also are seeking to be compensated for lost property value, the cost of relocation and emotional damages. Lawyers for the defendants unsuccessfully tried to get community activists to say they had known of contamination risks for a long time. Such an admission could have resulted in the judge ruling that the residents had waited too long to file their lawsuit. Community leaders said that until they were notified by the EPA that their property was under strong consideration to become part of the Superfund site and represented a health hazard, they did not have proof of the risk they had faced. The EPA, which had refused to declare the site eligible as a Superfund site in 1986, used different standards that gave more weight to soil contamination, and added the site to the list in 1994. PACIFIC SMOKING: Recalls Salmon Due To Listeria Contamination ------------------------------------------------------------- Pacific Smoking Co. is recalling 433.55 pounds of Pacific Seafood Northwest Style Smoked Salmon, because it has the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages and stillbirths among pregnant women. Pacific Seafood Northwest Style Smoked Salmon was distributed in Washington and Oregon through food service and retail outlets. The smoked salmon is vacuumed packaged in approximate one half to one pound packages. Each package has an orange sticker with the lot numbers 033121, 073103. No illnesses relating to this product have been reported to date. The potential for contamination was noted after routine FDA testing revealed the presence of Listeria monocytogenes in retail packs of smoked salmon. For more details, contact the Company by Phone: 503-905-4446. PARLUX FRAGRANCES: Investors Launch Suit V. Taking Firm Private --------------------------------------------------------------- Shareholders of Parlux Fragrances filed a class action in Delaware to block an attempt by Chairman Ilia Lekach and a New York firm, Quality King Distributors, to take the Fort Lauderdale company private, The Miami Herald reports. The lawsuit claims that the $4 a share offer is "unfair and grossly inadequate" because the stock is worth more given its current price and the company's prospects. Mr. Lekach timed his offer to take advantage of the decline in the market price of Parlux's stock," the lawsuit claims. The effect is to cap the market for the shares so he can buy "the public interest in Parlux as cheaply as possible," the lawsuit further claims. Privately held Quality King Distributors, a health and beauty products distributor based in Ronkonkoma, New York, and Parlux first announced talks in October. In January, they said they had not reached a deal. Quality King and Mr. Lekach announced May 19, 2003, after the market had closed, that they wanted to acquire the stock of Parlux, a perfume maker and distributor. Mr. Lekach currently owns 31 percent of the 10 million outstanding shares. That day shares closed at $2. 50. The next day Parlux shot up to $3.70. After the latest announcement, the company said on May 22, that it had appointed a committee of directors to evaluate, negotiate and approve or disapprove the transaction. The shareholders class action, whose lead plaintiff is Judy Altman, was filed the next day, to block the attempt to take the company private. Committee deliberations could last from three weeks to a few months, said Frank Buttacavoli, Parlux's chief financial officer. PHARMACEUTICAL FIRMS: Kenneth Moll To File Personal Injury Suit --------------------------------------------------------------- Kenneth B. Moll & Associates, Ltd. will be filing a worldwide class action against certain pharmaceutical firms that sold contaminated blood products that resulted in serious injuries and deaths worldwide. To be named in the suits are: (1) Bayer Corporation, (2) Bayer AG, (3) Cutter Biological, (4) Baxter Healthcare Corporation, (5) Armour Pharmaceutical Company, Inc., (6) Aventis Behring LLC, (7) Aventis, Inc., and (8) Alpha Therapeutic Corporation According to Kenneth B. Moll & Associates, Ltd., American pharmaceutical corporations manufactured and sold blood-clotting products known as "Factor VIII" and "Factor IX" for the treatment of hemophilia which were contaminated with the viruses that cause AIDS and Hepatitis C (HIV and HCV). According to the Chicago-based firm, products were manufactured using human blood plasma from paid American donors who were in high-risk populations for these diseases, specifically prisoners and intravenous drug users. Due to the AIDS epidemic of the early 1980s, scientists developed a thermal process by which blood-clotting products were to be treated, thereby killing any contaminants. However, according to a New York Times article published on May 22, 2003, these companies continued to sell the untreated, contaminated blood-clotting products outside of the United States after the safe versions of the products were available and sold within the United States. Consequently, hemophiliacs outside of the United States continued to receive blood-clotting products that were known to be potentially contaminated with the HIV and HCV viruses throughout the mid-1980s. According to the firm, over 10,000 hemophiliacs around the world were infected with HIV and/or HCV from blood-clotting products manufactured by these American pharmaceutical companies. Thousands more throughout the world may have contracted AIDS and/or Hepatitis C as a result of this contamination. Numerous countries around the world received contaminated blood-clotting products from these American pharmaceutical companies. A large amount of the contaminated blood-clotting products were sent to Malaysia, Singapore, Indonesia, Japan, Hong Kong, Taiwan, Argentina, Italy, Germany, Ireland, the Netherlands and the United Kingdom. Attorney Kenneth B. Moll, whose firm has represented clients in over 40 countries, states, "the primary goals of this lawsuit are to inform the public of the egregious conduct of these pharmaceutical manufacturers and to provide compensation to the victims of this contamination." For more information, contact Kenneth B. Moll by Phone: 312/558-6444 by Fax: 312/558-1112 by E-mail: lawyers@kbmoll.com or visit the firm's website: http://www.kbmoll.com SUMMIT IMPORT: Recalls Macapuno Item Due To Undeclared Sulfites --------------------------------------------------------------- Summit Import Corporation is recalling 12 ounce bottles of Masagana Brand Macapuno Strings because they may contain undeclared sulfites. People who have allergies to sulfites run the risk of serious or life-threatening allergic reactions if they consume this product. The recalled Macapuno Strings were distributed to retail stores in NY, VA and MD. The product comes in 12 ounce, clear glass bottles, with no apparent code. No illnesses have been reported to date in connection with this problem. The recall was initiated after it was discovered through routine sampling by New York Department of Agriculture and Markets Food Inspectors that the sulfite containing product was distributed in packaging that did not reveal the presence of sulfites. The consumption of 10 milligrams of sulfites per serving has been reported to elicit severe reactions in some asthmatics. Anaphylactic shock could occur in certain sulfite sensitive individuals upon ingesting 10 milligrams or more of sulfites. Analysis of the Macapuno Strings revealed it contained over 10 milligrams per serving. For more details, contact the Company by Phone: 201-839-2882. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- June 12-13, 2003 MOLD 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 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 16-17, 2003 MANAGING MOLD LIABILITIES Bridgeport Continuing Education San Francisco Contact: 818-505-1490 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. August 26-27, 2003 THE ANNUAL MANAGING MOLD LIABILITIES CONFERENCE FROM CONSTRUCTION THROUGH TRIAL Bridgeport Continuing Education Contact: http://www.reconferences.com;818-505-1490 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 11-12, 2003 MASS TORT LITIGATION TOOLS FOR PARALEGALS Mealey Publications The Westin Hotel, Philadelphia 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 18-19, 2003 REINSURANCE SUMMIT Mealey Publications The Westin Hotel, Chicago Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com 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 September 26, 2003 MANAGING ENVIRONMENTAL RISKS Bridgeport Continuing Education Los Angeles Contact: 818-505-1490 September 29-30, 2003 PRACTICAL SKILLS SERIES: MASS TORT LITIGATION Mealey Publications The Ritz-Carlton Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 29-30, 2003 CONSUMER FINANCE CLASS ACTIONS American Conference Institute New York City Contact: 1-888-224-2480; http://www.americanconference.com October 2-3, 2003 SECURITIES LITIGATION & ENFORCEMENT 2003 Practising Law Institute PLI New York Center Contact: 800-260-4PLI; info@pli.edu. October 13-14, 2003 SILICA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Atlanta Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 16-17, 2003 LEAD LITIGATION CONFERENCE Mealey Publications Westin Copley Plaza, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 24, 2003 7TH ANNUAL NATIONAL INSTITUTE ON CLASS ACTIONS American Bar Association San Francisco, CA Contact: 800-285-2221; abacle@abanet.org November 6-7, 2003 SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION MassTortsMadePerfect.Com Ritz Carlton, New Orleans, Louisiana Contact: 1-800-320-2227; register@masstortsmadeperfect.com November 7, 2003 7TH ANNUAL NATIONAL INSTITUTE ON CLASS ACTIONS American Bar Association Washington, DC Contact: 800-285-2221; abacle@abanet.org November 10-11, 2003 FEN-PHEN LITIGATION CONFERENCE Mealey Publications The Four Seasons Hotel, Houston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 13-14, 2003 MASS TORT LITIGATION TOOLS FOR PARALEGALS Mealey Publications The Westin Bonaventure Hotel, Los Angeles Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.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 November 17-18, 2003 INSURANCE ALLOCATION CONFERENCE Mealey Publications The Ritz-Carlton Golf Resort, Naples, FL Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 18, 2003 MEDICAL MONITORING CONFERENCE Mealey Publications The Ritz-Carlton Huntington Hotel & Spa, Pasadena Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 8-9, 2003 ASBESTOS PREMISES LIABILITY CONFERENCE Mealey Publications The Fairmont Hotel, San Francisco Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 8-9, 2003 CALIFORNIA SECTION 17200 CONFERENCE Mealey Publications The Fairmont Hotel, San Francisco Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 11-12, 2003 CONSTRUCTION DEFECT AND MOLD LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton, Lake Las Vegas, Las Vegas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 12, 2003 MOLD LITIGATION 101 CONFERENCE Mealey Publications The Ritz-Carlton, Lake Las Vegas, Las Vegas 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 TBA AIRLINE BANKRUPTCY LITIGATION CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com * Online Teleconferences ------------------------ June 05-30, 2003 NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA Contact: 512-778-5665; info@cleonline.com June 05-30, 2003 NBI PRESENTS "EMERGING ISSUES IN CALIFORNIA INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION. Contact: 512-778-5665; info@cleonline.com July 18, 2003 CLASS ACTION OVERVIEW American Bar Association 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 IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO SALES AND ADVERSTISING American Bar Association Contact: 800-285-2221; abacle@abanet.org ________________________________________________________________ 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 ALLOU HEALTHCARE: Berman DeValerio Lodges Securities Suit in NY --------------------------------------------------------------- Berman DeValerio Pease Tabacco Burt & Pucillo filed a securities class action against the the former top management and outside auditors of Allou Healthcare Inc. (AMEX:ALU) yesterday, accusing them of deceiving the public about the bankrupt company's financial condition. The lawsuit was filed in the U.S. District Court for the Eastern District of New York, on behalf of all investors who bought Allou common stock from June 22, 1998 through April 9, 2003. The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by releasing false and misleading financial statements about Allou's revenue and earnings, causing the company's stock to reach an artificially high price. For years, Allou reported strong fiscal growth. The lawsuit claims that those reports were false and that Allou depended on loans to operate its business. To obtain financing, the defendants made material misstatements to the public throughout the class period, overstating Allou's inventory and accounts receivable, the lawsuit says. Eventually, the complaint says, accountants engaged by Allou's lenders discovered the company had been inflating its financial results. On April 9, 2003, Allou announced that its lenders had filed an involuntary petition for Chapter 11 bankruptcy against the company. Allou consented to the petition shortly after it had been filed, according to the complaint. That same day, Allou also disclosed that its lenders had declared a default of its credit line. As a result of these revelations, Allou's stock price plummeted nearly 26% on April 9 from its closing price the previous day, before the American Stock Exchange suspended trading in the stock. The last listed trading price of $1.07 represents a 91.92% drop from the Class Period high of $13.25, which occurred on April 21, 1999. For more details, contact Michael T. Matraia or Mark Booker by Mail: One Liberty Square, Boston, MA 02109 by Phone: (800) 516-9926 or by E-mail: law@bermanesq.com ALLOU HEALTHCARE: Shalov Stone Files Securities Suit in E.D. NY ---------------------------------------------------------------- Shalov Stone & Bonner LLP initiated a securities class action on behalf of all persons who suffered damages as a result of their acquisition of the common shares of Allou Healthcare Inc. (AMEX: ALU) during the period June 22, 1998 through and including April 9, 2003. The complaint names as defendants: (1) Victor Jacobs, (2) Herman Jacobs, (3) David Shamilzadeh, (4) Mayer Rispler & Co., PC, (5) Arthur Andersen LLP and (6) KPMG LLP The action is pending in the United States District Court for the Eastern District of New York. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by issuing a series of material misrepresentations to the market during the class period, thereby artificially inflating the price of Allou securities. The complaint alleges, among other things, that Allou materially overstated its accounts receivable by at least $78 million, and thereby overstated its revenues, earnings and net worth. On April 9, 2003, Allou announced that "its lenders have filed an involuntary petition for bankruptcy in the Eastern District of New York under the provisions of chapter 11, title 11, of the United States Code." Following this news, on April 9, 2003, AMEX suspended trading in Allou's common stock. Thereafter, press reports revealed that an outside restructuring expert that had been retained to run Allou discovered, among other things, that "only $30 million of $108 million in accounts receivable reported by Allou to its banks seemed to be valid." The Company thereafter announced further overstatements and that it had retained a forensic accounting firm to investigate the company's financial reports. For more details, contact Susie Cowen by Mail: 485 7th Avenue, Suite 1000, New York, NY 10018 by Phone: (212) 239-4340 or by E- mail: scowen@lawssb.com. DAISYTEK INTERNATIONAL: Federman & Sherwood Begins TX Stock Suit ---------------------------------------------------------------- Federman & Sherwood filed 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 Daisytek International Corporation (Nasdaq: DZTKQ) between November 9, 2001 and April 28, 2003, The complaint alleges that certain of Daisytek's former officers and directors violated the federal securities laws by filing false financial reports with the SEC during the class period. The complaint alleges that the defendants knew or should have known that the reports did not properly report Daisytek's uncollectible customer accounts during the class period. 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 IMPERIAL CHEMICAL: Wolf Haldenstein Lodges Securities Suit in NY ---------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired the American Depository Shares of Imperial Chemical Industries PLC (NYSE: ICI) between August 1, 2002 and March 24, 2003, inclusive, against ICI and certain officers of the Company. During the Class Period, defendants issued numerous press releases to the investing public representing that they had resolved the Company's distribution and software problems that ICI had experienced at its Quest division's Fragrance and Food businesses. Defendants further represented that ICI was on track to report strong financial results that the Company had cleared its backlog of customer orders and that it had not lost any customers as a result of its production problems. Defendants' 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 influenced 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 had 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 the Company. On March 25, 2003, before the market opened, ICI shocked investors when it issued a profit warning with respect to its fiscal 2003 first quarter. Defendant 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 $6.05 per share on March 25, 2003, or a single-day decline of more than 36% on nearly ten times normal trading volume. For more details, contact Fred Taylor Isquith, 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 ICI. MERILL LYNCH: Pomerantz Haudek Files Securities Suit in S.D. NY --------------------------------------------------------------- Pomerantz Haudek Block Grossman & Gross LLP initiated a securities class action in the United States District Court for the Southern District of New York, against Merrill Lynch Pierce Fenner & Smith and Phua K. Young, a managing director of Merrill Lynch, on behalf of investors who purchased the securities of Tyco International Ltd. (NYSE:TYC) during the period from September 9, 1999 through May 28, 2003, inclusive. The lawsuit charges that defendants engaged in an illegal scheme to defraud Tyco investors in violation of Securities & Exchange Commission (SEC) Rule 10b-5. According to the complaint, Mr. Young wrote and publicly issued hundreds of research reports on Tyco representing that he was an ``independent'' Merrill Lynch analyst, when in fact, Mr. Young described himself in an internal email as a ``LOYAL TYCO EMPLOYEE.'' It is further alleged that Mr. Young regularly sent drafts of his research reports to Tyco's Investor Relations Department for review of his opinions and conclusions, flew on Tyco corporate jets for business trips, accepted unlawful gifts from Tyco CEO Dennis Kozlowski, and with respect to at least one published research report, asked Tyco Investor Relations ``did I not sound pumped up enough?'' On May 28, 2003, the National Association of Securities Dealers (NASD) filed a disciplinary proceeding against Mr. Young alleging numerous violations against him for issuing research opinions to the marketplace that he did not personally believe in and which had no reasonable basis. For more details, contact Andrew G. Tolan by Phone: (888) 476-6529 / (888) 4-POMLAW or by E-mail: agtolan@pomlaw.com MORGAN STANLEY: Shapiro Haber Lodges Securities Suit in S.D. NY --------------------------------------------------------------- Shapiro Haber & Urmy LLP initiated a securities class action against Morgan Stanley & Co., Inc. (NYSE:MWD) and UBS Warburg LLC (NYSE:UBS) on behalf of persons who purchased Atmel Corporation (NasdaqNM:ATML) common stock from February 4, 2000 through July 11, 2001, inclusive. The action was filed in the United States District Court for the Southern District of New York. The complaint alleges that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act, by issuing favorable research reports on Atmel without disclosing that they had been paid by Atmel for issuing the reports. For more details, contact Thomas G. Shapiro, Ted Hess-Mahan, or Liz Hutton by Mail: 75 State Street, Boston, MA 02109, by Phone: (800) 287-8119 by Fax: (617) 439-0134, or E-mail: cases@shulaw.com. PATRIOT AMERICAN: Milberg Weiss Files Securities Suit in N.D. CA ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP commenced a securities class action against Patriot American Hospitality Inc., Wyndham International Inc. (Wyndham), Paul A. Nussbaum and James D. Carreker is pending in the United States District Court for the Northern District of California on behalf of all persons who purchased or otherwise acquired the paired-shares of Patriot American and Wyndham during the period between Jan. 5, 1998 and Dec. 17, 1998 for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The action was originally filed on August 19, 1999 in the United States District Court for the Northern District of Texas and is one of nine lawsuits alleging securities fraud filed in the Northern District of California or the Northern District of Texas. On October 22, 1999, the Judicial Panel on Multidistrict Litigation (JPML) transferred this action to the United States District Court for the Northern District of California and consolidated it with actions pending in that court. Prior to transfer and consolidation of these cases, several groups of plaintiffs filed motions for appointment as lead plaintiff and for appointment of their attorneys as lead counsel. The court, however, stayed the proceedings pending the JPML's final transfer. Once the actions were transferred, they were assigned to the Honorable Vaughn R. Walker. On October 20, 2000, Judge Walker consolidated the pending actions for pre-trial purposes, and ordered the parties to litigate the sufficiency of the pending complaints. The defendants then filed their motion to dismiss the complaint. After the briefing was completed, the court, on August 15, 2001, granted the motion to dismiss with leave to amend the claims. The complaint was amended on October 15, 2001. Defendants again filed a motion to dismiss. This motion was granted with leave to amend on September 3, 2002. On December 2, 2002, a second amended complaint was filed. The second amended complaint alleges Patriot American, Wyndham, Nussbaum and Carreker violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Patriot American went public in 1995 as a real estate investment trust (REIT). In 1996, Patriot American bought the California Jockey Club and Bay Meadows Operating Co., which operated as a paired-share REIT, and adopted this advantageous tax status after consummation of the purchase. Operating as a paired-share REIT allowed Patriot American to both own and operate hotels while at the same time sheltering income and availing itself of the tax benefits, which included not paying federal taxes. In mid to late 1997, Mr. Nussbaum hired William Evans, a full- time, in-house investment banker, to maintain the flow of capital Patriot American needed for acquisitions, and then went on a hotel buying spree. Beginning in late 1997, defendants caused Patriot to enter into the first of three forward-equity contracts, disregarding the extreme risks associated with these loans. According to statements made by Mr. Rex Stewart, former CFO of Patriot American, as soon as Mr. Evans arrived at the Company in mid to late 1997, Mr. Stewart was "kept out of the loop on capital decisions," and was never consulted regarding the defendants' decision to issue the forward-equity contracts. Defendants borrowed a total of $354 million using the three forward-equity contracts, which were structured so that, in effect, Patriot sold over 13.3 million shares of its stock at approximately $26.21 per share (which over one year later the Company would be required to buy back at that price) to raise capital for use in making acquisitions. This enabled defendants to purchase over $5.3 billion of assets within an 18-month period, including $4.5 billion during the class period. The class period begins on January 5, 1998, with Patriot American's announcement of its acquisition of Wyndham. Together, Wyndham and Patriot American are referred to as "Patriot" or the "Company." Defendants proclaimed that they had the "necessary components ... in place to facilitate rapid growth" and had worked closely to ensure that they were "developing the best possible infrastructure to manage our growth." Patriot repeated to investors on February 12, 1998, May 4, 1998, July 9, 1998, July 22, 1998 and July 29, 1998, that it was successfully integrating the $4.5 billion worth of companies that it acquired during the class period, that it had the ability to pay its short-term debt, and that Patriot was poised for growth. However, by March of 1998, only three months into the class period, defendants were aware that Patriot had lost Chief Financial Officer Rex Stewart due to conflicts with Mr. Nussbaum and Mr. Evans related to their failure to include him in important financial decisions related to financing and acquisitions. Additionally, by this time, defendants were aware of similar conflicts between Mr. Evans and Anne Raymond, the acting CFO of Wyndham, which caused Ms. Raymond to take a sabbatical in early 1998, immediately following the merger; that sabbatical turned into a retirement around mid-year 1998. In addition to losing its CFOs, a management study was conducted that identified the integration and capital problems that ultimately doomed Patriot's acquisition program and business. Defendants received this document at a management retreat held at the home of Harlan Crow, a shareholder, prior to the completion of the merger with Wyndham and prior to the beginning of the class period. The problems outlined in this study were discussed at weekly Monday executive lunch meetings at Patriot's Dallas headquarters. Moreover, at no point in the class period did Patriot ever have an integrated computer system that would allow for the integration of sales and accounting information to be received directly from the Company's separate properties. While defendants were busy acquiring more and more companies, Patriot was fighting a cash crisis so dire that by July 1998 defendants unilaterally put vendors on a 60-day payment schedule, eliminated advertising, and cut travel incentive programs designed to attract guests in an effort to raise much needed cash. Finally, by September 1998, Patriot's cash crisis became so bad that defendants ordered the cancellation of hotel improvements and renovations which had been previously budgeted and approved. Thereafter, beginning in November 1998, defendants were forced to begin selling off assets and announced the "divestiture" of $365 million worth of their properties. Even knowing that Patriot was suffering from a severe shortage of cash, that the integration of Wyndham was not complete or going well and that there was a great disparity between forecasted and actual revenues, on November 8, 1998, defendants misrepresented the Company's performance in 3Q98, claiming that the increases in revenues were the result of the "strength of our dramatically growing brand." Ultimately, defendants' cash crisis could no longer be fixed by cuts in programs and improvements. On December 16, 1998, defendants were forced to enter into a highly unfavorable contract for an "equity infusion" of $1 billion with Apollo Real Estate Advisors of New York, Apollo Management, L.P., Thomas H. Lee Company, Beacon Capital Partners Inc. and Rosen Consulting Group (Apollo Group). In exchange, the Apollo Group received, for its $1 billion, 47% of the Company and half of its board seats. As investors digested the implications of the Apollo Group equity infusion, the price of Patriot stock collapsed to as low as $6.75 per share, 78% off its class period high of $29.50 per share. For more details, contact William Lerach by Phone: 800/449-4900 by E-mail: wsl@milberg.com or visit the firm's Website: http://www.milberg.com RECOTON CORPORATION: Schiffrin & Barroway Files Stock Suit in FL ---------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Middle District of Florida, Orlando Division on behalf of all purchasers of the common stock of Recoton Corporation (NasdaqNM:RCOTQ) from November 15, 1999 through August 19, 2002, 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 November 15, 1999 and August 19, 2002, thereby artificially inflating the price of Recoton securities. During the class period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that a ``strategic plan,'' which was required by its creditors, was not implemented to improve efficiencies, increase future profitability, improve cash flow, and increase return on assets; (2) that there was never a plan to develop a more incentive-based method of compensation; (3) that the Company's reported financial results were in violation of generally accepted accounting principles (GAAP) because, inter alia, the company improperly recognized and overstated revenue; and the Company failed to properly reflect inventory on its balance sheets at the lower of cost or market value; (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 were materially overstated at all relevant times. On May 8, 2002, the investing public learned via a Company press release that no strategic plan had been implemented to improve operating efficiencies, increase future profitability, improve cash flow and increase return on assets. Additionally, on August 19, 2002, the Company revealed information showing that, contrary to its earlier statements on awarding only incentive- based compensation to management, bonuses had been paid to executives in advance of the Company's achievement of certain goals. The Company also revealed that it had granted additional price concessions to customers "on products previously purchased." On news of the this, shares of Recoton stock fell 15% to close at $1.76 per share, down more than 91% from its previous class period high of $20.50. For more details, contact Marc A. Topaz or Stuart L. Berman by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E- mail: info@sbclasslaw.com REGENERON PHARMACEUTICALS: Kirby McInerney Files Securities Suit ---------------------------------------------------------------- Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of Regeneron Pharmaceuticals, Inc. (NasdaqNM:REGN) common stock during the period from March 28, 2000 to March 30, 2003, inclusive. The action charges Regeneron and certain of its senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the class period -- of artificially inflating the price of Regeneron's shares. Regeneron issued a series of material misrepresentations to the market concerning the Company's financial condition during the class period. Specifically, Regeneron failed to disclose: (1) that the Company knew that AXOKINE had immunogenicty problems such that patients developed antibodies to AXOKINE after continued use; (2) that the Company knew of this fact and manipulated its clinical results to portray that AXOKINE did not cause significant amounts of clinical patients rejecting the drug; (3) that the Company's account of AXOKINE published in PNAS failed to provide an accurate portrayal of the effects of the drug; (4) that the Company sought to suppress the immunogenicty problems that were associated with it by developing a pegylated version of AXOKINE; (5) that the Company knew that AXOKINE's effect on clinical patients were similar to the effects of prescription obesity drugs that were already on the market; and (6) that the overall magnitude of the weight loss from AXOKINE was small; a fact that was manipulated by defendants in its published clinical results. When this news hit the market on March 31, 2003, Regeneron share price fell from $17.31 to $7.52. For more details, contact Ira M. Press or Elaine Mui by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022 by Phone: (212) 317-2300 or (888) 529-4787 or by E-Mail: emui@kmslaw.com TYCO INTERNATIONAL: Bernard Gross Lodges Securities Suit in NY -------------------------------------------------------------- The Law Offices Bernard M. Gross, PC initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of TYCO International Ltd (NYSE:TYC) during the period between September 9, 1999 through and including May 28, 2003. The action is pending in the United States District Court, Southern District of New York, against Merrill Lynch Pierce Fenner & Smith, Incorporated and Phua Young. The case has been assigned to the Honorable Robert W. Sweet. The complaint alleges that defendants engaged in a scheme to defraud Tyco investors in violation of SEC Rule 10b-5. Mr. Young issued numerous misleading research reports on Tyco while supposedly working as an `independent' director. Mr. Young voiced opinions in his research reports on Tyco that were flatly contradicted in his own private emails, where he expressed his true outlook on Tyco. Emails from Mr. Young show that he didn't believe his own publicly-issued research reports concluding that Tyco's subsidiary, CIT Group, could be sold for as high as $7-8 billion. Mr. Young privately expressed his true view that CIT would fetch much less, if a buyer could be found at all. In other emails, Mr. Young made it plain that Tyco ``effectively bought and paid for'' him when he candidly described himself in a private email as ``LOYAL TYCO EMPLOYEE.'' Mr. Young routinely sent his draft Tyco research reports to Tyco's Investor Relations Department for review, comment and editing. With respect to one of his reports, Mr. Young asked Tyco: ``Did I not sound pumped up enough?'' Mr. Young is also accused of passing insider tips to his institutional clients in advance of at least one Tyco deal involving Siemens and accepting unlawful gifts from Tyco. For more details, contact Susan Gross or Deborah R. Gross by Mail: 1515 Locust Street, 2nd Floor Philadelphia, PA 19102 by Phone: 866-561-3600(toll-free) or 215-561-3600 by E-mail: susang@bernardmgross.com or debbie@bernardmgross.com or visit the firm's Website: http://www.bernardmgross.com ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. 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