CAR_Public/030625.mbx               C L A S S   A C T I O N   R E P O R T E R
  
               Wednesday, June 25, 2003, Vol. 5, No. 124

                           Headlines                            

ALBERS MEDICAL: Widens Recall of Lipitor Products Over FDA Probe
ASTRAZENECA: Pleads Guilty To Charges of Zoladex Pricing Fraud
AUSTRALIA: Suits Filed Over Backpackers' Deaths In Hostel Fire
CANADIAN-NATIONAL: IL Residents File Suit Over Train Derailment
CHILDREN'S BEVERAGE: SEC Charges CEO, Alleging Securities Fraud

CONSECO FINANCE: High Court Vacates $27M Award in Consumer Suit
DENVER HEALTH: Nurses Sue Over Free Speech, Rights Violations
DISABILITY RIGHTS: High Court Considers Revisions For Access Law
GEMSTAR-TV GUIDE: SEC Files Securities Charges V. Ex-CEO, Ex-CFO
GENESIS MICROCHIP: Faces Securities Violations Suit in N.D. CA

HARRIS TEETER: Recalls Chopped Pecans Over Undeclared Walnuts
HOLOCAUST LITIGATION: Atty. General Knocks Insurance Law Ruling
MEDCO HEALTH: Sued For Pressuring Doctors To Buy Merck Medicines
NEW JERSEY: Reaches Settlement For Suit Over Foster Child Care
NVE INC.: FDA Warns Consumers V. Using Products With Tadalafil

PAXIL: FDA Warns Against Using Paxil for MDD Treatment in Teens
PHILIP MORRIS: Asks Court To Extend Appeals Deadline in Lawsuit
PRODUCTOS REAL: Recalls Guacamole For Listeria Contamination
RITE AID: Payout To Shareholders Only Part Of Accounting Debacle
SEASILVER: FTC, FDA Launch Action V. Firms Selling Supplement

WISCONSIN: Milwaukee County Faces Suit for Harming Pension Fund

*Payday-Loan Industry Growing Fast By Targeting The Desperate
*Workers Are Suing Over Mismanagement Of 401(k) Retirement Funds

              Meetings, Conferences & Seminars


* Scheduled Events for Class Action Professionals
* Online Teleconferences

                     New Securities Fraud Cases

ADMINISTAFF INC.: Emerson Poynter Lodges Securities Suit in TX
BARRICK GOLD: Emerson Poynter Lodges Securities Suit in S.D. NY
BLUE RHINO: Glancy & Binkow Lodges Securities Lawsuit in C.D. CA
CENTRAL PARKING: Emerson Poynter Launches Securities Suit in TN
CREE INC.: Emerson Poynter Lodges Securities Lawsuit in M.D. NC

CRYO-CELL INTERNATIONAL: Emerson Poynter Files Stock Suit in FL
FEDERAL HOME: Emerson Poynter Lodges Securities Suit in S.D. NY
FEDERAL HOME: Glancy & Binkow Lodges Securities Suit in E.D. VA
FEDERAL HOME: Spector Roseman Lodges Securities Suit in E.D. VA
GUIDANT CORPORATION: Glancy & Binkow Files Securities Suit in IN

GUIDANT CORPORATION: Emerson Poynter Files Securities Suit in IN
GUIDANT CORPORATION: Abbey Gardy Launches Securities Suit in IN

                           *********


ALBERS MEDICAL: Widens Recall of Lipitor Products Over FDA Probe
----------------------------------------------------------------
Albers Medical Distributors, Inc., of Kansas City, Missouri, has
expanded their recall to include all Lipitor products repacked
by MED-PRO, Inc., of Lexington, Nebraska, in the light of the
Food and Drug Administration's (FDA) continuing investigation of
counterfeit Lipitor.  In addition, H.D. Smith Wholesale Drug
Co., of Springfield, Illinois, has recalled all Lipitor products
repacked by MED-PRO.

FDA is also announcing that its Forensic Chemistry Center in
Cincinnati, OH, has determined that the counterfeit tablets that
have been tested as of this date contain atorvastatin, the
active ingredient of Lipitor.  The Forensic Chemistry Center's
analysis to date has not identified any known harmful substances
in the counterfeit tablets, although analytical testing
continues.

Despite these results, FDA cannot assure that the counterfeit
products are safe and effective.  Individual tablets of this
counterfeit medicine may vary significantly, even within
individual lots, because the source of the atorvastatin is
unknown and because there is no evidence that the tablets have
been produced according to good manufacturing practices that are
meant to ensure consistency from batch to batch.

Consequently, FDA's advice to healthcare providers and consumers
remains the same as when the agency issued its original alert on
counterfeit Lipitor on May 23, 2003.  They should check the
packaging very carefully before using Lipitor.  


ASTRAZENECA: Pleads Guilty To Charges of Zoladex Pricing Fraud
--------------------------------------------------------------
AstraZeneca Pharmaceuticals LP has pleaded guilty to a large-
scale healthcare crime and agreed to pay $355 million to resolve
the associated criminal charges and civil liabilities, an
announcement by the United States Food and Drugs Administration
states.

The massive conspiracy, uncovered by FDA, Office of Criminal
Investigations (OCI), the United States Attorney's Office for
the District of Delaware, the Department of Health and Human
Services (DHHS), and the Defense Criminal Investigative Service
(DCIS) investigators, involved illegitimate pricing and
marketing of Zoladex, an AstraZeneca drug for the treatment of
prostate cancer.  The various schemes used by the firm caused
multimillion dollar losses to federally and state- funded
insurance programs and individual patients.

"FDA will not tolerate criminal conduct that exploits patients,
plunders the national treasury, and adds to the cost of health
care," FDA Commissioner Mark B. McClellan, M.D., Ph.D said in a
statement.  "Today's announcement sends a strong message that
the FDA will enforce the laws, and take vigorous actions against
those who defraud consumers and abuse the health care system."

AstraZeneca pleaded guilty to criminal conspiracy to violate the
Prescription Drug Marketing Act by causing Medicare, Medicaid
and other federal providers to be overcharged for Zoladex that
had been provided as free samples to urologists.  As part of the
plea agreement, the company agreed to pay a $63,872,156 criminal
fine.

AstraZeneca also agreed to settle its civil liabilities and to
resolve allegations that its fraudulent drug pricing schemes and
sales and marketing misconduct had caused false and fraudulent
claims to be filed with federal and state health care programs.

The agreed payments are $266,127,844 to the US government for
claims filed with the Medicare, TriCare, Department of Defense
and Railroad Retirement Board Medicare programs, and a total of
$24,900,000 to the US and state governments for claims involving
state Medicaid programs.

The FDA Office of Criminal Investigations began investigation of
AstraZeneca pricing and marketing practices after a private
individual filed a civil False Claims Act suit.  The broadly-
based investigation, which involved also the Office of the
Inspector General for the DHHS, the DCIS and the Federal Bureau
of Investigation, discovered that AstraZeneca employees were
using several illegal methods to stimulate the demand for
Zoladex by enabling prescribers to reap illicit profits.

In one of these schemes, AstraZeneca provided thousands of free
samples of Zoladex to physicians knowing that they would charge
their patients and insurance programs for the samples.  Another
illegal inducement used by the firm involved inflating the price
of Zoladex reported to Medicare as the basis for reimbursement,
while deeply discounting the actual price charged to the
physicians.  AstraZeneca also misreported and underpaid the
Medicaid rebates it owed to the states for the use of Zoladex.

The investigation, which is continuing, also resulted in charges
against three physicians of conspiring with AstraZeneca to bill
patients and third party payers for free Zoladex samples.  Two
of the prescribers have pleaded guilty.


AUSTRALIA: Suits Filed Over Backpackers' Deaths In Hostel Fire
--------------------------------------------------------------
Two separate lawsuits were filed against the Palace Backpackers
Hostel in Childers, three years after a fire hit it, killing
fifteen young travelers, the Australia Associated Press General
News reports.  The subject of who was responsible for the
backpackers' deaths is central to the lawsuits and is central
also to the feelings of the residents of Childers, who sheltered
the fire's survivors.

Brisbane law firm Trilby Misso has filed a lawsuit against the
Isis Shire Council, the Palace Backpackers Hostel owner Patricia
Wood and its operators Christian Atkinson and John Dobe, on
behalf of 70 survivors, with up to $180,000 in damages being
sought for each survivor.  Another law firm, Slater and Gordon,
is believed to be seeking $193,000 damages for each of the
victim's families.

Isis Shire Council is planning to fight the lawsuits' claims
that it failed to perform its duties under laws requiring it to
be satisfied the hostel's premises were free of fire hazards.

Many locals in the Childers community, who gave shelter and care
to survivors of the fire, feel shocked at the lawsuits'
contentions that responsibility for the fire rests with any
residents of Childers.

An informal ceremony was held to commemorate the 15 victims on
Monday, June 23, the anniversary date of the fire.


CANADIAN-NATIONAL: IL Residents File Suit Over Train Derailment
---------------------------------------------------------------
Canadian National-Illinois Central faces a class action filed by
about 325 residents of Tamaroa, Illinois, over the February 9
train derailment, which spilled toxic chemicals and caused more
than 1,000 people to be evacuated for up to five days, the St.
Louis Post-Dispatch reports.

800 Tamaroa households and businesses already shared nearly
$700,000 in compensation, but plaintiffs say the money wasn't
enough.  The plaintiffs' lawyer Joseph Lieberman told the Post-
Dispatch, "We just want Canadian National to do what's fair."

The suit seeks an unspecified amount of compensatory damages and
was filed in St. Clair County Circuit Court.  Mr. Lieberman
recounts that the plaintiffs lost everything from the food in
their deep freezers to the inventory on their store shelves.  
Many also have health complaints for which they want the company
to compensate them.

Jack Burke, a spokesman for Canadian National, told the Post-
Dispatch most in this town of 800 "are overwhelmingly happy with
the settlement," as evidenced by the 800 claims the company
paid.


CHILDREN'S BEVERAGE: SEC Charges CEO, Alleging Securities Fraud
---------------------------------------------------------------
The United States Securities and Exchange Commission (SEC) filed
a complaint in the United States District Court for the Northern
District of Illinois seeking an order of permanent injunction
and other ancillary relief against Jon A. Darmstadter, the
President and Chief Executive Officer of The Children's Beverage
Group, Inc.

The complaint alleges that Mr. Darmstadter engaged in
unauthorized purchases and sales of Company stock in a brokerage
account belonging to one of his employees.  In essence, he
engaged in a scheme to avoid the registration provisions of the
securities laws by distributing Children's Beverage stock
through his employee's account.  He forged letters of
authorization in order misrepresent to the registered
representative on the account that his employee had authorized
the transactions.  

The complaint alleges that these unauthorized transactions
violated the registration and antifraud provisions of the
securities laws.  The complaint seeks a permanent injunction,
civil penalties and disgorgement against Mr. Darmstadter.   


CONSECO FINANCE: High Court Vacates $27M Award in Consumer Suit
---------------------------------------------------------------
The US Supreme Court voted 5-4 to throw out a decision against
Conseco Finance (also known as Green Tree Financial
Corporation), a unit of Conseco, Inc., ordering the Company to
pay $27 million to two classes of individuals, the Associated
Press reports.

The Company was sued for violating a South Carolina law
governing the handling of home-improvement and mobile-home
financing transactions.  A lower court ruled against the firm,
saying the company violated state laws that require disclosure
of insurance and attorney preference options for the financing
transactions.

The Company appealed the class-action status of the arbitration
proceedings ordered by South Carolina state courts, saying its
arbitration agreements did not allow class-action judgments, AP
states.

The high court ruled that the question of whether class-action
arbitration proceedings are allowed hasn't been properly
decided.  "We vacate the judgment of the South Carolina Supreme
Court and remand the case so that this question may be resolved
in arbitration," Justice Stephen Breyer wrote.

Justice Breyer's majority ruling also said the interpretation of
the Conseco unit's arbitration clause should be handled in
arbitration, not the courts.  The decision leaves open the
possibility the Conseco unit could face new judgments against
it, AP states.


DENVER HEALTH: Nurses Sue Over Free Speech, Rights Violations
-------------------------------------------------------------
The Denver Health and Hospital Authority faces a class action
filed by its nurses in the United States District Court in
Denver, Colorado, charging it with violating the nurses' rights
to free speech and freedom of association under federal and
state constitutions, the Denver Business Journal reports.

The nurses charge the Center with threatening, intimidating,
harassing and discriminating against them to dissuade them from
discussing and joining a union.  Last summer, the nurses began
meeting to discuss how to improve staffing, retention and
patient care.  From January to March of this year, a growing
majority of Denver Health nurses signed cards to join with
Service Employees International Union Local 105.  In March,
nurses began attending Denver Health board meetings and
proposing that they have a collective voice to improve patient
care at Denver Health.

"All we want is to improve the quality of patient care at our
hospital and to have a voice in how it's delivered," said Pat
Thompson, a nurse at Denver Health for nine years and a
plaintiff in the lawsuit, in a statement, according to the
Journal. "We filed this lawsuit to protect our First Amendment
freedoms."

"As patients' advocates, we want to be able to speak freely
about delivering the best care possible -- especially in a time
of budget cuts," Eric Bean, a nurse at Denver Health for six
years and a suit plaintiff, told the Journal.  "We tried
everything to resolve this issue and decided that a lawsuit was
the final measure we had to use to preserve a free voice in our
hospital."

The lawsuit seeks an injunction to require Denver Health to
recognize employees' constitutional rights.  The Service
Employees International Union is also a plaintiff in the suit.  

Denver Health officials were not immediately available for
comment, the Journal states.


DISABILITY RIGHTS: High Court Considers Revisions For Access Law
----------------------------------------------------------------
The United States Supreme Court will decide whether states can
be sued over failure to install wheelchair ramps or other
devices for the disabled, in the lawsuit filed by a paraplegic
man who crawled two flights of steps to reach a hearing in a
Tennessee court that didn't have an elevator, the Associated
Press reports.

George Lane was summoned to face misdemeanor charges in 1996 in
the tiny town of Benton, Tennessee.  He pleaded guilty to
driving with a revoked license in the accident in which he lost
his leg.  When Mr. Lane refused to drag himself up the stairs
for a second hearing, he was charged with failing to appear in
court.

Mr. Lane sued under the Americans With Disabilities Act, along
with Beverly Jones, a court reporter and mother of two who
contends she can't get into many courtrooms for jobs.  She also
was injured in a car accident.  The act bans job discrimination
against the disabled and requires the government to provide
"services, programs or activities" to those with special needs.

The High Court will scrutinize the ADA, which was passed by
Congress in 1990.  The High Court has repeatedly narrowed the
law.  In 2001, it ruled that state workers cannot use the ADA to
win damages for on-the-job discrimination.  Now the court will
decide whether to shield states from lawsuits over
accommodations.

The High Court has attempted to resolve the issue, but has not
succeeded.  This spring, the state of California decided to drop
an appeal in a case involving a clinically depressed doctor who
sued after he was turned down for a medical license because of
his condition, AP reports.  The latest case, to be decided next
year, has more compelling facts.  It pits Tennessee against the
Bush administration and two paraplegics who use wheelchairs and
cannot access some courthouses in that state.

William J. Brown, the Cleveland, Tenn., attorney for the
paraplegics, told AP that Tennessee courts are inaccessible to
many people, ranging from a double-amputee veteran also involved
in this case to people using crutches because of a minor injury.

"We have a cross-section of America who cannot get to the bar of
justice," he said.

Tennessee's lawyer, Michael E. Moore, argued that the suits
should not be allowed because the Constitution's 11th Amendment
protects states from being sued against their will, AP states.  
He said the high court has repeatedly ruled that Congress
exceeding its authority in parts of the law.


GEMSTAR-TV GUIDE: SEC Files Securities Charges V. Ex-CEO, Ex-CFO
----------------------------------------------------------------
The United States Securities and Exchange Commission filed
securities fraud charges against the former chief executive
officer and former chief financial officer of Gemstar-TV Guide
International, Inc. for their roles in a widespread and complex
scheme to inflate the Company's licensing and advertising
revenues.

The Commission's lawsuit, filed in the US District Court in Los
Angeles, California seeks antifraud injunctions, civil money
penalties, disgorgement of ill-gotten gains (including salaries,
bonuses, and proceeds from the sale of stock during the fraud),
and permanent bars from service as an officer or director of a
public company.  The Commission also seeks continuation of the
order that the district court entered on May 9, 2003, pursuant
to the Sarbanes-Oxley Act requiring Gemstar to place into escrow
extraordinary payments to any of its directors, officers, or
other affiliates, including nearly $38 million in cash payments
that the company had previously agreed to pay the defendants.
          
Named in the Commission's complaint are defendants:
          
     (1) Henry C. Yuen, age 55, of Pasadena, CA - Mr. Yuen was
         Gemstar's chief executive officer and chairman of the
         board during the relevant period;

     (2) Elsie M. Leung, age 57, of Pasadena, CA - Ms. Leung, a
         California-licensed CPA, was Gemstar's chief financial
         officer and a member of its board of directors during
         the relevant period;

Gemstar is a Los Angeles-based media and technology company
that, among other things, publishes TV Guide magazine and
develops, licenses, and markets an interactive program guide
(IPG) for televisions.  The IPG is a technology that enables
consumers to navigate through and select television programs.   

During the relevant period, Gemstar generated revenues from the
IPG by licensing the technology to third parties and selling
advertising on the IPG.  In statements to securities analysts
and the investing public, Mr. Yuen repeatedly touted the IPG
technology and IPG advertising revenues as the company's future
and as the "value driver" of the company's stock, and downplayed
expected declines in revenue from TV Guide magazine.
          
The Commission's complaint alleges that, to enable Gemstar to
meet its ambitious projections for revenue growth from IPG
licensing and advertising, Mr. Yuen, Ms. Leung, and others
engaged in a fraudulent scheme to overstate Gemstar's revenues
and to report the inflated revenues to the investing public.  In
total, the defendants caused Gemstar to overstate its total
revenues by at least $223 million from March 2000 through
September 2002.
     
Stephen M. Cutler, Director of the Commission's Division of
Enforcement, said, "The manipulation of financial results to
present a distorted picture of a company's true performance
represents a betrayal of the investing public.  It is even more
disturbing when a company's highest officials engage in such
conduct and enrich themselves at the same time."
          
Randall R. Lee, Regional Director of the Commission's Pacific
Regional Office, stated, "These charges, together with our
emergency action last month to prevent Gemstar-TV Guide from
making tens of millions of dollars in extraordinary payments to
its former CEO and CFO, demonstrate the SEC's unwavering
commitment to ensuring that those who deceive the investing
public are held accountable and do not profit from their
misdeeds."
     
The Commission's complaint alleges that Mr. Yuen and Ms. Leung
manipulated Gemstar's financial results in three ways.  First,
Gemstar recorded revenue under expired, disputed, or non-
existent agreements, and improperly reported this as IPG
licensing and advertising revenue.
          
Second, Gemstar recorded amounts from related transactions as if
they were not related, some of which included "round-trip"
transactions (that is, Gemstar paid money to a third party and
then received it back) and non-monetary payments, and reported
this as IPG advertising revenue in order to inflate those
revenues.
     
Third, Gemstar switched revenues from its media and licensing
business sectors to its IPG advertising sector in order to show
dramatic growth and acceptance of IPG advertising, when in fact
such growth and acceptance did not exist.  In these
transactions, Mr. Yuen and Ms. Leung allegedly created revenue
by structuring the transactions so that all or a portion of the
amount to be paid to Gemstar was nominally and falsely
designated as the purchase of IPG advertising in order to
inflate IPG advertising revenue.
          
The Commission's complaint further alleges that Mr. Yuen and Ms.
Leung reaped millions of dollars in financial gains from their
fraudulent scheme in that their compensation was tied to the
financial performance of the company.  By fraudulently
overstating Gemstar's revenues, Mr. Yuen and Ms. Leung
fraudulently inflated their own salaries and bonuses.  

According to the complaint, from 2000 through 2002, Mr. Yuen
received approximately $18.8 million in salary and bonuses;
exercised stock options for a taxable profit of approximately
$14.6 million; and realized over $63.6 million from the
disposition of Gemstar stock.  In addition, he is seeking
payment of over $29 million as a termination fee and payment of
salary, bonuses, and vacation pay that he claims to be owed by
Gemstar.
     
During this same period, Ms. Leung received over $5.3 million in
salary and bonuses, and exercised stock options for a taxable
profit of approximately  $4.9 million, according to the
complaint.  In addition, she is seeking payment of over $8.1
million as a termination fee and payment of salary, bonuses, and
vacation pay that she claims to be owed.
          

GENESIS MICROCHIP: Faces Securities Violations Suit in N.D. CA
--------------------------------------------------------------
Genesis Microchip, Inc. faces a securities class action filed in
the United States District Court in the Northern District of
California.  The suit also names as defendants former Chief
Executive Officer Amnon Fisher, and Chief Financial Officer Eric
Erdman.

The complaint alleges violations of Section 10(b) of the
Securities and Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder against Genesis and the Individual Defendants, and
violations of Section 20(a) of the Exchange Act against
the Individual Defendants.  The complaint seeks unspecified
damages on behalf of a purported class of purchasers of the
Company's common stock between April 29, 2002 and June 14, 2002.

The Company believes that it has meritorious defenses to these
lawsuits.  The future financial impact of this claim is not yet
determinable and no provision has been made in the Company's
consolidated financial statements for any future costs
associated with this claim.


HARRIS TEETER: Recalls Chopped Pecans Over Undeclared Walnuts
-------------------------------------------------------------
Harris Teeter is recalling all Harris Teeter brand 6-ounce bags
of chopped pecans due to the presence of undeclared walnut
pieces.  Consumption of this product by individuals who have
walnut allergies may result in a serious reaction.

The only Harris Teeter brand 6 ounce bags of chopped pecans
affected are those in lot number #372930D.  These bags have an
expiration date of May 15, 2004.

Customers who have purchased this product and are concerned
about walnut allergies should return it to the store of purchase
for a full refund.  Any customers with questions or concerns
should contact Harris Teeter customer service at 1-800-432-6111.


HOLOCAUST LITIGATION: Atty. General Knocks Insurance Law Ruling
---------------------------------------------------------------
California Attorney General Bill Lockyer expressed his
disappointment over the United States' Supreme Court's ruling in
American Insurance Association, et al., v. John Garamendi,
Insurance Commissioner, State of California.

"I am extremely disappointed in the US Supreme Court's ruling
striking down a California law aimed at addressing historical
wrongs committed by Nazi Germany, which engaged in genocide,
slavery and the theft of Jewish assets, including life and
property insurance policies," Attorney General Lockyer said.

"Today's ruling places the interests of the world's insurance
companies ahead of Holocaust victims and the people of
California.  It will make it more difficult for survivors of the
Holocaust and their relatives to obtain justice.  It also denies
Californians access to information they need to make informed
decisions about their own insurance policies," he continued.  

He said he respectfully disagreed with the court's finding that
California's law interferes with the ability of the United
State's government to enact and implement foreign policy.  "The
law merely asks that insurance companies that choose to do
business in California embrace a basic American value by taking
responsibility for their actions.  The court's sweeping opinion
casts doubt on the fate of other state laws currently being
challenged in court that seek to achieve the same objective," he
asserted.

In 1998, California made it an unfair business practice for any
insurer operating in the state to fail to pay any valid claim
from Holocaust survivors.  The law struck down by the court
required insurance companies to turn over policy documentation
in their possession, and those who refused would not be
permitted to operate in this state.

Four other related cases currently are being litigated.  Two are
before the California Supreme Court, and two other 9th Circuit
rulings are pending before the US Supreme Court on petitions for
writ of certiorari.  The California Supreme Court has agreed to
hear Mitsubishi Materials Corporation, et al. v. Superior Court,
and Taiheijo Cement Corporation, et al. v. Superior Court.  The
cases pending before the U.S. Supreme Court are Kim, Suk Yoon,
et al. v Ishikawajima Harima Industries, and Tenney v. Mitsui &
Co., Ltd., et al.
                                                 

MEDCO HEALTH: Sued For Pressuring Doctors To Buy Merck Medicines
----------------------------------------------------------------
Medco Health Solutions faces two civil "whistleblower" lawsuits,
charging it with pressuring doctors to switch patients to
medications made by its owner, pharmaceutical giant Merck & Co.,
the Associated Press reports.

Federal prosecutors joined the suits against Medco, who was
supposed to help health plans find low-cost prescription drugs.  
The suits allege that the Company provided misleading
information to the government over its contract to manage drug
benefits for federal employees.  US Attorney Patrick Meehan said
his office has joined the suits.

Medco was hired to coordinate prescription drug coverage for
employee health plans of more than 1,000 companies, making it
the nation's largest manager of pharmacy benefits.  Instead of
looking for ways to lower drug costs, the suit alleges the
Company routinely induced physicians to switch patients to Merck
drugs, even if a patient had been doing well on another
medication that cost less.

The Company also allegedly shortchanged patients, by mailing
them fewer than the number of pills they paid for.  The Company
allegedly tried to avoid penalties for delays in filling mail
orders by destroying prescriptions on days when the order volume
was heavy.  The government further charged the Company with
failing to call doctors to explain prescriptions that were
unclear, and fabricating records to make it appear as if calls
from pharmacists to physicians had been made, AP states.

A Medco spokesman declined to immediately comment on the suits,
saying the company was still reviewing the court filings, AP
reports.


NEW JERSEY: Reaches Settlement For Suit Over Foster Child Care
--------------------------------------------------------------
New Jersey state officials and child advocacy group Children's
Rights, Inc. reached a settlement for the class action filed
against the state's Division of Youth and Family Services, the
Associated Press reports.

The group sued the state in August 1999, seeking reform at the
division.  The department allegedly violated foster children's
civil rights with a care system that failed to plan for their
future and left them at risk for abuse and neglect.  

Using DYFS data turned over as part of the lawsuit, Children's
Rights released a series of reports in the last two months that
were critical of agency managers and workers.  Its latest
report, released last week, revealed that children placed in
group homes, shelters and detention centers around the state by
DYFS were sexually assaulted and physically abused, AP states.  
Another group of findings released earlier this month said state
officials and management at the agency knew about problems at
DYFS for years but never took action to correct them.

DYFS officials told AP reform is under way at the agency,
including an 18-member panel formed by Mr. McGreevey to oversee
the process.  A package of legislation is also pending in the
state Legislature that would create an Office of Child Advocate,
require criminal background checks of residential supervisors
used by DYFS, and provide financial assistance to foster
children for college.

The settlement details will be announced this week at a news
conference with Gov. James E. McGreevey and officials from
Children's Rights Inc.


NVE INC.: FDA Warns Consumers V. Using Products With Tadalafil
--------------------------------------------------------------
The Food and Drug Administration (FDA) is warning consumers not
to purchase or consume several products manufactured by NVE,
Inc., in Newton, New Jersey and distributed by Hi-Tech in
Norcross, Georgia.  These products, which are being marketed as
dietary supplements, actually contain a prescription drug
ingredient that poses possible health risks.  The products are
being sold over-the-counter and are claiming to increase
stamina, confidence and performance.  The products involved are:

     (1) SIGRA,

     (2) STAMINA Rx and STAMINA Rx for Women,

     (3) Y-Y,

     (4) Spontane ES and

     (5) Uroprin

FDA has determined that the products actually contain the
prescription-strength drug ingredient, tadalafil.  Tadalafil is
the active ingredient in Cialis, an Eli Lilly product approved
in Europe to treat male erectile dysfunction.  An interaction
between certain prescription drugs containing nitrates (such as
nitroglycerin) and tadalafil may cause a drastic lowering of
blood pressure.  

There is real danger that this product may be taken by patients
taking nitrates since erectile dysfunction is often a common
problem in people with diabetes, hypertension (high blood
pressure), hyperlipidemia (high cholesterol), ischemic heart
disease and in people who smoke.

FDA's Office of Criminal Investigations, with assistance from
FDA's New Jersey and Atlanta Districts, executed concurrent
federal search warrants in Georgia and New Jersey after finding
these dietary supplements.

Consumers who have used these products and have medical concerns
should consult with their health care providers.


PAXIL: FDA Warns Against Using Paxil for MDD Treatment in Teens
---------------------------------------------------------------
The Food and Drug Administration (FDA) is reviewing reports of a
possible increased risk of suicidal thinking and suicide
attempts in children and adolescents under the age of 18 treated
with the drug Paxil for major depressive disorder (MDD).  

Although the FDA has not completed its evaluation of the new
safety data, FDA is recommending that Paxil not be used in
children and adolescents for the treatment of MDD.  There is
currently no evidence that Paxil is effective in children or
adolescents with MDD, and Paxil is not currently approved for
use in children and adolescents.  Other approved treatment
options are available for depression in children.

Paxil is approved for use in adults for the treatment of
Obsessive Compulsive Disorder (OCD), MDD, Panic Disorder, Social
Anxiety Disorder (SAD), Generalized Anxiety Disorder, and Post-
traumatic Stress Disorder.  There is no evidence that Paxil is
associated with an increased risk of suicidal thinking in
adults.

Three well-controlled trials in pediatric patients with MDD
failed to show that the drug was more effective than placebo.  
The new safety information that is currently under review was
derived from trials of Paxil in pediatric patients.

Following its review of the same data, the UK Department of
Health issued a Press Release on June 10 stating that paroxetine
(brand name Seroxat in the UK) must not be used to treat
children and teenagers under the age of 18 years for depressive
illness because UK authorities have concluded that there is an
increase in the rate of self harm and potentially suicidal
behavior in this age group, when paroxetine is used for
depressive illness.

FDA advises that caretakers of pediatric patients already
receiving treatment with Paxil for MDD talk to their doctor
before stopping use of the drug.  Patients should not
discontinue use of Paxil without first consulting their
physicians, and it is important that Paxil not be abruptly
discontinued.


PHILIP MORRIS: Asks Court To Extend Appeals Deadline in Lawsuit
---------------------------------------------------------------
Philip Morris USA asked the United States Fifth District
Appellate Court in Mount Vernon, Illinois to approve a speedy
schedule for its appeal of a $10.1 billion lawsuit over light
cigarettes, the Associated Press reports.

The Company was supposed to file its appeal by August, but is
seeking an extension for September 19.  The Company is also
presenting a four-month schedule for both sides to submit briefs
in the case, for approval.  Typically, such appeals take far
longer to complete, and include several extensions in the
schedule, William Ohlemeyer, associate general counsel and vice
president of the company, said Monday, AP reports.  The company
also asked the court to grant no extensions during the appeal.

Madison County Judge Nicholas Byron dealt the tobacco giant a
huge blow when he ordered it to pay $10.1 billion to 1.1 million
Illinois smokers for misleading them into believing light
cigarettes are less harmful than regular brands in March.  

The company was also directed to post an initial $6 billion
appeal bond in the case, and pay hundreds of millions of dollars
more over the length of the appeal.  The Company, however,
argued it never claimed its light cigarettes were less harmful
than regular brands.  Company officials also believe the lawsuit
never should have been allowed to proceed because members of the
class have too little in common, Mr. Ohlemeyer told AP.

Lawyer Stephen Tillery, who represents the 1.1 million Illinois
smokers in the lawsuit, did not immediately return a telephone
call from The Associated Press.


PRODUCTOS REAL: Recalls Guacamole For Listeria Contamination
------------------------------------------------------------
Productos Real of Anthony, Texas recalled Real Guacamole, Hot,
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.

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.

"Real Guacamole, Hot" was distributed in West Texas, New Mexico,
and Arizona through retail stores and direct delivery.

The product is packaged in 13 oz. plastic containers labeled
"Real Guacamole, Hot" and bears the code and expiration date on
the bottom of the plastic tub.  The recall includes all codes
"MAY 25 2003" through "JUL 15 2003."  No illnesses have been
reported to date.

The recall was the result of sampling conducted by the US Food
and Drug Administration that revealed that the finished product
contained the bacteria.  The company has ceased production and
distribution of the product.  The FDA and the company continued
their investigation as to what caused the problem.

For more details, contact the Company by Phone: 915-886-3666.


RITE AID: Payout To Shareholders Only Part Of Accounting Debacle
----------------------------------------------------------------
In a few weeks, checks totaling nearly $140 million will be
mailed to thousands of current and former shareholders of Rite
Aid Corporation, the Patriot News reports.  This payout is the
first installment from the settlement of a 1999 class action.  
It is also just one measure of the costs resulting from the
accounting debacle that plunged Rite Aid into crisis.

Shareholders in the federal class action are being paid from a
$334 million settlement fund that includes $207 million from
Rite Aid and $125 million from the accounting firm KPMG, Rite
Aid's former auditor.  Former chairman and CEO Martin L. Grass
also contributed approximately $1.5 million.

The results of the accounting mess have spread beyond the
shareholders' class action and its settlement.  Mr. Grass,
recently has plead guilty to federal conspiracy charges.  Mr.
Grass's proposed plea bargain calls for eight years in prison
and $3.5 million in penalties.

In a recent Securities and Exchange Commission filing, Rite Aid
said it has spent more than $120 million on legal-defense fees
for Mr. Grass and the other indicted executives, to reconcile
its books and records, to restate 1998 and 1999 earnings and to
investigate prior bookkeeping practices.

Charles M. Elson, director of the Center for Corporate
Governance at the University of Delaware, said "any time a
company goes into crisis, those who deal with the company are
impacted in a negative way."

"It's like a rock in the water," Mr. Elson said.  "The waves
cross many shores."

Thus, in the past three years, the Rite Aid drugstore chain has
posted $657 million in charges to close 300 under-performing
stores as part of a restructuring to reverse Mr. Grass's
ambitious expansion efforts, according to an SEC report.  With
the closings came the thousands of employees who became
unemployed as well as the alienated vendors to whom the company
has devoted considerable time in the effort to mend fences.

Federal prosecutors are tightlipped about how much the case has
cost taxpayers, but an assistant US attorney worked on the case
full time, and it took a team of four full-time FBI and SEC
investigators to pore through pile upon pile of accounting
records and other evidence, said lead prosecutor Assistant US
Attorney Kim Douglas Daniel.

David Bershad, lead attorney for the shareholders, said the
settlement, the fifth largest of its kind, does not approach his
clients' actual losses.  Mr. Bershad said, " the belief is that
the losses were more than a billion (dollars) and, depending how
you count, they could be more than $2 billion."

Marc Sherman, a professor of forensic accounting at Georgetown
University, said it is difficult to say how much of the
shareholders' losses can be attributed to mismanagement; how
much can be blamed on the criminal conspiracy to artificially
inflate the stock price; and what portion relates to the bear
market that gained momentum shortly after Mr. Grass resigned in
1999.

"You need to be able to strip out the other (elements) of
changes in shareholder value, and you need to be able to predict
how shareholder value reacts to future events, so you are never
really certain," said Professor Sherman.


SEASILVER: FTC, FDA Launch Action V. Firms Selling Supplement
-------------------------------------------------------------
The Federal Trade Commission (FTC) and the Food and Drug
Administration (FDA) filed coordinated actions against two
companies - both charged with promoting the dietary supplement
"Seasilver" with unsubstantiated medical claims.  

The agencies' actions against Seasilver USA, Inc. and
Americaloe, Inc. are designed to halt the fraudulent marketing
of Seasilver and to seize the available inventory of the
product.  The suits are the latest part of Operation Cure.All,
an on-going coordinated effort among the FTC, the FDA, Health
Canada, Canada's Competition Bureau, and state Attorneys General
to crack down on unscrupulous marketers who prey on consumers
with serious illnesses.

The FTC has charged the two companies, their owners, the
principal distributor, and a purported "expert" with making
false and unsubstantiated claims about the health benefits and
safety of a product they market called "Seasilver"- a purported
cure-all liquid supplement.  The FTC alleges that the defendants
promoted Seasilver as safe and effective to treat or cure 650
diseases, including AIDS and cancers, and to cause substantial
and permanent weight loss.  The FDA has seized inventories of
the product.

"The FTC and the FDA are committed to aggressive action against
fraudulent claims in the dietary supplement market," said
Timothy J. Muris, Chairman of the FTC.  "Like the snake oil
salesman of old, Seasilver claimed to cure 650 different health
problems, including such serious diseases as cancer, AIDS, and
diabetes.  These claims may keep consumers from seeking
appropriate treatment.  They certainly empty consumers'
pockets."

"This is the sort of intolerable health fraud I had in mind when
I announced six months ago that the FDA will take vigorous
actions against firms that prey on consumers and patients by
selling worthless dietary supplements as cures for serious and
chronic diseases and conditions," said Mark B. McClellan, M.D.,
PhD, the FDA Commissioner.  "Using these ineffective products is
worse than wasting money - it may cause irreparable harm by
delaying or replacing approved treatments that can bring actual
health benefits."

In a complaint filed in federal district court in Nevada on June
12, 2003, the FTC alleges that two Carlsbad, California-based
companies, Seasilver USA. Inc. and Americaloe, Inc., their
principals, Bela and Jason Berkes; Brett Rademacher, doing
business as Netmark International and NetmarkPro; and David R.
Friedman, D.C., violated the FTC Act by making false and
unsubstantiated claims for Seasilver.

Seasilver is a liquid multi-vitamin/mineral/amino acid dietary
supplement that purports to contain, among other ingredients,
aloe vera, phyto-silver (purportedly a plant-based silver), sea
vegetables, the herb Pau D'Arco, and cranberry concentrate.  A
32-oz. bottle of Seasilver costs $39.95.

According to the FTC, the defendants promote Seasilver through
national television and radio infomercials, Web sites
(http://www.seasilver.comand http://www.myseasilver.com/main,
spam emails, and a glossy 28-page consumer brochure.  The
defendants publicly claimed that Seasilver USA earns $180
million annually from selling Seasilver.

The FTC alleges that the defendants' ads and promotional
materials represented that Seasilver:

     (1) treats or cures cancer;

     (2) enables nine out of ten diabetes patients to stop their
         insulin medication; and

     (3) causes rapid, substantial, and permanent weight loss
         without dieting.

The FTC charges that these and other claims go beyond existing
scientific evidence on any of the ingredients contained in the
product, and therefore, are false and unsubstantiated.  In
addition, the complaint alleges that the defendants represented,
without scientific support, that Seasilver:

     (i) treats or cures AIDS, diabetes, lyme disease, and
         various cancers;

    (ii) cures chronic obstructive pulmonary disease;

   (iii) enables post-heart attack patients to reduce their
         heart medication, eliminates high blood pressure; and

    (iv) is 100 percent safe for pregnant and lactating women,
         senior citizens, children, and infants.

Finally, the complaint alleges that defendants provided
deceptive advertisements and promotional materials to
distributors for use in their marketing and sale of Seasilver.

At the FTC's request, on June 13, 2003, the federal district
court issued a temporary restraining order prohibiting the
defendants from making the challenged claims and freezing their
assets.  In addition, the FTC is seeking preliminary and
permanent injunctive relief, including restitution to consumers
who purchased the product.

On June 16, 2003, acting at the FDA's request, the United States
Attorney for the Southern District of California filed a
complaint seeking the seizure of Seasilver USA's Seasilver
product.  On June 17, 2003, United States Marshals seized
132,480 bottles of Seasilver, worth nearly $5.3 million from
Seasilver USA's San Diego headquarters.

The Government's complaint alleges that, although Seasilver USA
markets Seasilver as a dietary supplement, it promotes it on the
Internet and in marketing materials sent with the product as a
treatment for serious diseases including cancer, diabetes,
hypoglycemia, psoriasis, hepatitis, and arthritis.  These claims
cause Seasilver to be an unapproved new drug under the Federal
Food, Drug, and Cosmetic Act (the Act).  

Such claims also cause Seasilver to be misbranded under the Act
because it lacks adequate directions for use.  Seasilver's
labeling also contains claims such as "cleanses your vital
organs" and "oxygenates your body's cells."  According to the
complaint, these claims show that Seasilver is intended to
affect the structure or function of the body.  Because the
claims are unsubstantiated, Seasilver is misbranded under the
Act.

In addition to the violations caused by its product claims,
Seasilver USA has had ongoing sanitation problems at its
manufacturing facility.  As recently as December of last year,
FDA cited the company for using equipment that cannot be
properly cleaned and for permitting its employees to work the
production line in street clothes.  Employees in facilities like
Seasilver USA's must wear garments that protect against
contamination of food and food containers.


WISCONSIN: Milwaukee County Faces Suit for Harming Pension Fund
---------------------------------------------------------------
A lawsuit filed on behalf of all the members of Milwaukee
County's retirement system claims that that county's pension was
harmed because the county has failed for years to pay certain
administrative costs to run the fund, The Milwaukee Journal
Sentinel reports.

Attorneys for the plaintiffs are seeking class action status for
the recently filed lawsuit.  The lawsuit contends that the
county officials left the pension fund to pay the administrative
costs.  Retired county employee Virginia Schumann and current
county employee Geoffrey Bilda are the named plaintiffs.  The
county and its Pension Board are the defendants.


*Payday-Loan Industry Growing Fast By Targeting The Desperate
-------------------------------------------------------------
When bills mount up, but money is dwindling, the big question in
the consumer's mind is where he is going to find a little cash
to tide him over until payday.  An entire industry, unregulated
and possibly illegal, has sprung up to answer that question, the
Macon Telegraph reports.

These payday-loan companies offer advances of $100 to $500,
asking only for proof of a job and a checking account, but
requiring no credit check in the process of getting the consumer
out of a short-term hole.  However, the borrower can end up in
an even deeper hole and also owe much more than when he started
this process of "help."

Payday lenders say they are simply filling a need in the
marketplace by giving help, but state regulators and consumer
advocates call it a predatory practice.   The consumer advocates
go to court as do the state regulators; and the consumer
advocates bring their class actions on behalf of some borrowers
from the payday lenders.  Although forced to pay damages in one
instance, the payday lenders simply go forth to do business in
some slightly different form, a practice encouraged and made
possible by the fact that there is no legislation prohibiting
payday lending on the books in Georgia, or most of the other
states.

What the payday lenders are doing now is basically "loan
sharking," said Georgia Insurance Commissioner John Oxendine.

The deal to give "help" usually goes like this:  For every $100
of cash advance, a payday borrower must pay back $115 to $130
within two weeks.  A borrower who lacks enough to pay off the
principal might extend or "roll over" the loan another two weeks
by paying another $15 to $30.  This process translates into an
annual percentage rate that starts at roughly 400 percent and
rising sharply.  That is just the every-day, garden-variety
payday loan.

Customers at some of Georgia's "cash advance" businesses sign
contracts to pay nearly $6 for every dollar advanced to them,
and sometimes their cash advance contracts include provisions
obligating them to buy high-priced phone cards or Internet
access they don't want.  By employing a number of methods of
imposing high fees and high penalties, and by linking high-cost
purchases to the advance, an $100 advance can cost the customer
nearly $600, plus an eruption of bad-check charges when the
company electronically debits the customer's chronically empty
checking account.

As Georgia's insurance commissioner, John Oxendine also serves
as the industrial loan commissioner, regulating small-loan
companies.  Commissioner Oxendine and Georgia's Attorney General
Thurbert Baker are of the opinion that most payday lenders in
Georgia are operating illegally.

The Georgia Industrial Loan Act (GILA), which regulates
companies making loans under $3000, requires lenders to get a
license.  A few companies making payday loans have done so.  
Under the terms of a GILA license, they would not be permitted
to charge their customary interest rates.  While Mr. Oxendine
knows payday lending has boomed in Georgia, he can't say how
big the industry has grown since there is no law on the books to
keep track of the payday lenders.  However, Mr. Oxendine
acknowledged there are a lot of them, and said, "they are
preying on the most innocent victims."

Senator Donald Cheeks, an Augusta Republican, wants a law to ban
payday lending.  "It is an egregious form of lending.  It is the
most hideous, most predatory form of lending that I know," he
said.  "Anybody in their right mind that's got any conscience
should realize that that business should be put out of
(business)."

According to a 2002 report from the National Conference of State
Legislatures, the number of payday-loan offices in the United
States grew from practically nothing to more than 10,000 in the
1990s.  The report cited a recent estimate from the industry
that it generated $2.4 billion in fees from 65 million
transactions involving between 8 and 10 million American
households.

At least 32 states permit payday lending; many using variations
of a model law written by the industry itself.  In most of the
rest of the states, it is not expressly authorized by law.  
However, in most of those places, including Georgia, payday
lending goes on anyway.

Only a handful of places, such as New York, New Jersey and a few
New England states actually prohibit payday lending, according
to the Consumer Federation of America.  Even in those states, a
payday loan is as close as the nearest computer.  An Internet
search for the phrase "payday loan" nets about 156,000 hits,
many of them offers of an online cash advance.

Most observers agree bank deregulation had something to do with
the growth of payday lenders.  Banks have increased their bad-
check charges in recent years.  To many consumers, it may appear
more economical to borrow a couple of hundred dollars for a week
or two than to risk a bounced check and a marred credit rating.

Short-term sources for that kind of money are few.  Payday
lenders offer convenience.  There is no collateral required.  In
most instances, a paycheck, a checking account and proof of
identity are all that are required for a loan of $100 to $500.

Jean Ann Fox, who is probably the payday loan industry's least
favorite person, sees payday lending not as a convenience but as
a sign of "perpetual debt."   As director of consumer protection
for the Consumer Federation of America, Ms. Fox is a persistent
critic of payday lending.  In her view, the industry's growth,
along with the explosion of title pawn lenders and rent to own
businesses, signals the increasingly precarious finances of many
American households.

"Not everybody made out during the '90s," said Ms. Fox.  "A lot
of the growth is just a sign of perpetual debt."  Payday
lenders, she said, are high-cost newcomers in an old niche.

"The places you go for relatively small amounts of money include
traditional pawn shops, small-loan companies, cash advances on
your credit card, your savings account or asking friends and
family to help you out in a pinch," Ms. Fox said.  The payday
lenders offer a quick, easy alternative, and none of the
feelings of humiliation and of being unsuccessful that may
attend, particularly, the approach to family or friends."

Ms. Fox cited a study made by the Community Financial Services
Association of America, a 2002 study of payday lending in North
Carolina - a state that once legalized payday lending but has
since outlawed it.  The study confirmed that contrary to the
payday lending industry's assertion that payday lending is for
occasional one-time use, "repeat business is a regular practice
and the key to profits," the report said.

As Ms. Fox sees it, "The profits were being made by trapping a
relatively small number of customers into rolling over their
loans on a regular basis."  A roll-over is the practice of
extending a loan: paying another $15 or $20 service fee to
stretch out the due date another two weeks.

In Commissioner Oxendine's view, Georgia needs a law to outlaw
payday lending.  Without it, Mr. Oxendine said, his office lacks
the authority to take control of the situation.  All he can do
is take piecemeal action while the business continues unabated.  

The Commissioner explained why legislation is important.  
"Everytime we go to the courts, we win, and we get precedent
that the payday lenders can't do this practice any more.  Then
they just turn around and come up with a new version . there are
a million different schemes out there.  They can play that game
all day.  We will always be playing catch-up.  We can be doing
this for 20 years.  If we have to be relying totally on the
courts, we will be playing catch-up.  As long as they can think
of a new angle, we have to start all over," he said.


*Workers Are Suing Over Mismanagement Of 401(k) Retirement Funds
----------------------------------------------------------------
For workers, it may seem that their 401(k) retirement savings
accounts are "under siege."  On the employer side, there has
been a wave of companies, among them Charles Schwab and
Prudential Securities, that recently decided to stop
contributing to their employees' retirement accounts, the Miami
Herald reports.

Workers, themselves, it appears, are undermining the objectives
of their accounts by not saving nearly enough money to produce
viable retirement incomes.  Figures from the Center for
Retirement Research at Boston College indicate that only 8.6
percent of workers are putting the maximum of $12,000 that is
allowed into their 401(k)s.

Now there come the allegations of mismanagement of 401(k) funds
at companies large and small, accompanied by class actions in
their wake.  Against Tyco, HealthSouth, Enron, WorldCom and
others, a clutch of lawsuits are being filed and others are
being prepared, contending that the companies have not fulfilled
their duties as fiduciaries in charge of their workers'
retirement savings.

The lawsuits allege that when the books are "cooked" and the 401
(k) plan trustees knew about this state of affairs, company
stock was not the kind of sound investment that fiduciaries
should be offering, under the federal law that governs the
401(k) accounts.  That is, the Employee Retirement Income
Security Act or ERISA.

Last week, the judge hearing a lawsuit against Bernard Ebbers,
former WorldCom CEO, allowed the proceedings of an employees'
class action to proceed as he ruled against Mr. Ebbers' motion
to dismiss the workers' case.

"When a corporate insider puts on his ERISA hat, he is not
assumed to have forgotten adverse information he may have
acquired while acting in his corporate capacity," US District
Court Judge Denise Cote of the Southern District of New York
ruled.

In another instance, Dennis Kozlowski at Tyco is facing a
similar claim of failing in his fiduciary duties, as do many
lesser-known executives who sat on Tyco's retirement committee.  
Attorneys for the plaintiff employees say they also intend to
sue Scott Sullivan, Tyco's former chief financial officer.

"When they suggest an investment and it's a bad one, they can't
just put their heads in the sand," said Derek Loeser, a partner
in the Seattle law firm Keller Rohrback, representing Tyco's
current and former employees, The Miami Herald reports.

The plaintiffs' attorneys will have to prove malfeasance in
order to prevail, 401(k) analysts have said.  "It does seem that
if management knows that misrepresentations are going on and
they continue to put that (company) stock into the pension plan,
that cannot be considered normal fiduciary responsibility," said
Alicia Munnell, director of the Center for Retirement Research
at Boston College.

Then there are corporations where wrongful accounting practices
are not rampant, and the measure of the conduct of the manager
of a 401(k) retirement plan is not what he knew, but whether he
has been negligent.

Thomas Noonan, president of Union Financial, a registered
investment advisor in Fort Lauderdale, argues that especially at
smaller companies, the 401(k) plan trustees often rely blindly
on an investment advisor or do not put sufficient effort into
constructing the plan.

If the business owner stuffs the company's retirement plan with
a stock because his broker liked it; or if the plan was not
properly diversified; or if risky stocks simply are not the
right choices for a plan that has to hand back the money to the
participants (and therefore the stock cannot be held for the
long ride in order to gain in value), Mr. Noonan said the plan's
trustees cannot argue that they did their fiduciary duty.  They
could face personal liability for the losses to the employees,
he said.

"The money belongs to plan participants.  It does not belong to
the retirement plan manager who buys a hot stock because his
broker told him to," Mr. Noonan said.

While the 401(k) managers may think these are tough days for
them, The Miami Herald said, plaintiffs' attorneys don't see it
that way.

"This is going to be the best thing that ever happened to them,"
Mr. Loeser said.  "Their duty as fiduciaries is the highest
known to law.  This (season of employee class actions for
recovery of losses in their 401(k)s) should remind them they
cannot operate on autopilot."


              Meetings, Conferences & Seminars


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


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 8-10, 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 8-9, 2003
ASBESTOS LITIGATION
American Conference Institute
New York City
Contact: 1-888-224-2480; http://www.americanconference.com  

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 15, 2003
LEXISNEXIS PRESENTS WALL STREET FORUM:
PHARMACEUTICAL & MEDICAL DEVICE INDUSTRY LITIGATION
Mealey Publications
The Ritz-Carlton New York, Battery Park
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

ADMINISTAFF INC.: Emerson Poynter Lodges Securities Suit in TX
--------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Southern District of Texas,
Houston Division, on behalf of purchasers of Administaff, Inc.
(NYSE:ASF) publicly traded securities during the period between
April 2, 2001 and July 31, 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 April 3, 2001 and July
31, 2002, thereby artificially inflating the price of
Administaff 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 Administaff had inadequate and deficient pricing
         and billing systems and was incorrectly calibrating
         pricing for clients that experienced declines in
         average payroll cost per worksite employee;

     (2) that Administaff was incorrectly matching the price and
         cost for health insurance on new and renewing client
         contracts; and

     (3) that, in violation of Generally Accepted Accounting
         Practices and in order to retain its coveted place on
         the Fortune 500 listing, Administaff was improperly
         recognizing revenue by failing to net Administaff's
         worksite employee payroll costs against revenues.

On August 1, 2002, before the open of trading, Administaff
shocked the investing public when it released its financial and
operational results for the second quarter ended June 30, 2002,
reporting ``a net loss and diluted net loss per share of $3.2
million and $0.11'' as compared to Thomson Financial/First Call
estimates of $0.04 earnings per share.

Market reaction was swift and negative, with Administaff stock
falling from a close of $7.50 on July 31, 2002 to a close of
$4.20 on August 1, 2002, or a single-day decline of 44% in heavy
trading.

For more details, contact John G. Emerson or Tanya Autry by
Mail: 830 Apollo Lane, Houston, TX 77059 by Phone:
(281) 488-8854 or by E-mail: shareholder@emersonfirm.com


BARRICK GOLD: Emerson Poynter Lodges Securities Suit in S.D. NY
---------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Southern District of New
York, on behalf of purchasers of Barick Gold Corporation
(NYSE:ABX) publicly traded securities during the period between
February 14, 2002 and September 26, 2002, inclusive.

The complaint charges that the Company, Randall Oliphant (CEO
and President until February 12, 2003), John K. Carrington (COO
and Vice Chairman) and Jamie C. Sokalsky (CFO) 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 February
14, 2002 and September 26, 2002.

For example, throughout the Class Period, Barrick assured the
markets that it was improving its operations by keeping its
production costs in check and that the Company expected to earn
$0.42-$0.47 per share in 2002, even taking into account the
phasing out of several mines and decreasing ore quality (which
increases costs) in several of its mines.

These representations were materially false and misleading,
according to the complaint, because they failed to disclose that
the Company's expected costs for the year would be well above
the figures highlighted to the public, that Barrick's costs per
ounce had increased dramatically in 2002 and would continue to
increase throughout the year, and that the Company's repeated
assurances that production and costs would continue to improve
in 2002 were lacking in any reasonable basis and were
contradicted by facts known to defendants, or, at the very
least, recklessly disregarded by them.

On September 26, 2002, the Company announced that it expects to
earn materially less in 2002 than previously announced, due to
increased costs stemming from production issues at several mines
(which, the Company misleadingly represented during the Class
Period, would be resolved in the second half of 2002).

In reaction to the announcement, which came only days after the
Company reiterated its positive expectations, Barrick's stock
fell by 10.5% in one day, from $17.77 on September 25, 2002 to
$15.90 on September 26, on extremely heavy trading volume.

Fr more details, contact John G. Emerson or Tanya Autry by Mail:
830 Apollo Lane, Houston, TX 77058 by Phone: (281) 488-8854 or
by E-mail: shareholder@emersonfirm.com


BLUE RHINO: Glancy & Binkow Lodges Securities Lawsuit in C.D. CA
----------------------------------------------------------------
Glancy & Binkow LLP initiated a securities class action in the
United States District Court for the Central District of
California on behalf of all persons who purchased securities of
Blue Rhino Corporation (NasdaqNM:RINO) between August 15, 2002
and February 5, 2003, inclusive.

The complaint charges Blue Rhino 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 the Company's business operations and financial
performance caused Blue Rhino's stock price to become
artificially inflated, inflicting damages on investors.

Blue Rhino provides propane cylinder exchange and complementary
propane and non-propane products to consumers through a national
network of independent distributors.  The complaint alleges
that, during the class period, defendants failed to disclose
known facts, or facts that defendants should have known,
including:

     (1) that distributers which the Company acquired on
         November 22, 2002, were not healthy, highly profitable
         and independent of the Company as portrayed by Blue   
         Rhino;

     (2) that the Company misrepresented the purchase price of
         these acquisitions as totaling only $21 million when,
         in fact, the true price of the acquisitions was $32
         million;

     (3) that the Company was beginning to see a decline in
         earnings from the National Fire Protection
         Association's ``overfill protection device''
         regulations;

     (4) that the Company's earnings projections were lacking in
         any reasonable basis when made; and

     (5) that the false and misleading information disseminated
         by the defendants caused Blue Rhino's securities to
         trade at artificially inflated prices.

For more details, contact Michael Goldberg by Mail: 1801 Avenue
of the Stars, Suite 311, Los Angeles, California 90067, by
Phone: (310) 201-9161 or (888) 773-9224 or by E-mail:
info@glancylaw.com or visit the firm's Website:
http://www.glancylaw.com


CENTRAL PARKING: Emerson Poynter Launches Securities Suit in TN
---------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Middle District of
Tennessee, on behalf of purchasers of Central Parking
Corporation (NYSE:CPC) publicly traded securities during the
period between November 4, 2002 and February 13, 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 November 4, 2002 and
February 13, 2003, thereby artificially inflating the price of
Central Parking common stock.

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's internal controls were inadequate to
         record and document the Company's financial results;

     (2) that the Company was materially understating its bad
         debt reserve, thereby overstating its earnings;

     (3) that the Company as materially understating its
         accounts payable, thereby overstating its financial
         condition; and

     (4) as a result of the foregoing, the Company's financial
         statements were not prepared in accordance with
         Generally Accepted Accounting Principles and,
         therefore, were materially false and misleading.

On February 14, 2003, Central Parking shocked the market when it
announced that it would be taking a charge to increase its bad
debt reserve and that it would be taking a charge to increase
its accounts payables.  In response to this announcement, the
price of Central Parking common stock dropped from $15.82 on
February 13, 2003 to a close of $12.31 on February 14, 2003, or
a single-day decline of more than 22%, on more than seven times
normal trading volume.

For more details, contact John G. Emerson by Mail: 830 Apollo
Lane, Houston, TX 77058 by Phone: (281) 488-8854 or by E-mail:
shareholder@emersonfirm.com


CREE INC.: Emerson Poynter Lodges Securities Lawsuit in M.D. NC
---------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Middle District of North
Carolina, on behalf of purchasers of Cree, Inc. (NasdaqNM:CREE)
publicly traded securities during the period between August 19,
1998 and June 13, 2003, inclusive.

During the class period, the Company issued statements that
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 defendants artificially boosted Cree's
         operating income through an undisclosed agreement with
         defendant Neal Hunter's brother, Jeff Hunter, the then
         chairman of C3, that required C3 to accept shipments of
         silicon carbide (SiC) crystals for the manufacture of
         moissanite gemstones far in excess of market demand;

     (3) that the defendants failed to properly disclose how
         officers and director's compensation was determined;

     (4) that the defendants failed to disclose in its
         registration statements and its prospectuses the proper
         use of the proceeds from those offerings. For example,
         in its January 14, 2000 prospectus, Cree failed to
         disclose that it would invest $5 million of the
         offering proceeds in World Theatre, Inc.;

     (5) that the defendants were actively concealing these
         facts in order to manipulate the Company's earnings
         outlooks in order to maintain its favorable stock
         prices;

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

     (7) that the Company's earnings projections were lacking in
         any reasonable basis when made.  

On June 13, 2003, Eric Hunter, the former chief executive of
Cree filed a $3 billion lawsuit against Cree and defendant Neal
Hunter, his brother.  Among the allegations contained in the
lawsuit, Eric Hunter alleged that since as early as August 1995
and continuing until at least May 2003, Cree and the Individual
Defendants engaged in a series of undisclosed corporate
activities, which included, among other things, the filing of
false and misleading statements to the public and the SEC with
respect to the Company's secondary stock offerings, anticipated
earnings and revenue, reported income and operating income.

Market reaction to the news was swift. Shares of Cree fell 18.5%
or $4.11 per share to close at $18.10 per share on heavy trading
volume on June 13, 2003.

For more details, contact John G. Emerson or Tanya Autry by
Mail: 830 Apollo Lane, Houston, TX 77058 by Phone:
(281) 488-8854 or by E-mail: shareholder@emersonfirm.com


CRYO-CELL INTERNATIONAL: Emerson Poynter Files Stock Suit in FL
---------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Middle District of Florida,
Tampa Division, on behalf of purchasers of Cryo-Cell
International, Inc. (NasdaqSC:CCELE) publicly traded securities
during the period between March 16, 1999 and May 20, 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 16, 1999 and May
20, 2003, thereby artificially inflating the price of Cryo-Cell
securities.

During the class period, the Company issued statements that
failed to disclose and/or misrepresented the following adverse
facts, among others:

     (1) that the Company had materially overstated its
         earnings, net income and earnings per share;

     (2) that the Company continually recognized revenue in
         violation of generally accepted accounting principles
         (GAAP) and the Company's own internal accounting
         principles with respect to related-party transactions,
         revenue sharing agreements and revenue recognition for
         the sale Area Licenses;

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

     (4) that as a result, the Company's financial results were
         materially overstated at all relevant times.

On April 15, 2003, the Company issued a press release wherein it
disclosed that it may be necessary to restate its financial
results for fiscal years 2001 and 2002 because of improper
recognition of revenue.  Shortly thereafter, on May 20, 2003,
the Company issued a press release announcing the resignation of
its auditor, Ernst & Young LLP and the Company's continued
assessment of certain revenue recognition accounting policies.
On news of this, Cryo-Cell shares fell 14%.

For more details, contact John G. Emerson or Tanya Autry by
Mail: 830 Apollo Lane, Houston, TX 77058 by Phone:
(281) 488-8854 or by E-mail: shareholder@emersonfirm.com


FEDERAL HOME: Emerson Poynter Lodges Securities Suit in S.D. NY
---------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Southern District of New
York, on behalf of purchasers of Federal Home Loan Mortgage
Corporation (NYSE:FRE) publicly traded securities during the
period between January 27, 2003 and June 9, 2003, inclusive.

The complaint charges defendants with violations of federal
securities laws by, among other things, issuing a series of
materially false and misleading press releases concerning
Freddie Mac's financial results and business prospects.  
Specifically, the complaint alleges that Freddie Mac failed to
disclose:

     (1) that the Company lacked adequate internal controls and
         personnel expertise;

     (2) the Company failed to follow accounting rules that
         require derivative securities to be marked to market;

     (3) the Company ``smoothed out its earnings'' using
         accounting techniques to lower results in good times
         and lift results when business conditions deteriorates;
         and

     (4) the Company provided investigators with doctored
         records to conceal improper accounting techniques.

As a result, the price of the Company's securities were
artificially inflated during the Class Period.  On June 9, 2003,
however, the Company shocked the market when it announced it had
fired defendant David Glenn concerning ``serious questions about
the timeliness and completeness of his cooperation and candor
with the board's audit committee counsel''.

Moreover, on June 11, 2002, various news sources reported that
the US Attorney's office for Eastern Virginia and the United
States Securities and Exchange Commission (SEC) were
investigating the Company.

For more details, contact John G. Emerson by Mail: 830 Apollo
Lane, Houston, TX 77058 by Phone: (281) 488-8854 or by E-mail:
shareholder@emersonfirm.com


FEDERAL HOME: Glancy & Binkow Lodges Securities Suit in E.D. VA
---------------------------------------------------------------
Glancy & Binkow LLP initiated a securities class action in the
United States District Court for the Eastern District of
Virginia on behalf of of all persons who purchased securities of
Federal Home Loan Mortgage Corporation (NYSE:FRE) between April
18, 2000 and June 6, 2003, inclusive.

The complaint charges Freddie Mac and certain of its officers
and directors with violations of federal securities laws for
disseminating materially false and misleading statements to the
markets during the Class Period.  Freddie Mac is a stockholder-
owned corporation that was established by Congress in 1970 to
support home ownership and rental housing.  

Freddie Mac purchases residential mortgages and mortgage-related
securities, which it finances primarily by issuing mortgage
passthrough securities and debt instruments in the capital
markets.

Plaintiff claims that defendants failed to disclose that:

     (1) the Company at all relevant times lacked adequate
         internal accounting controls and personnel expertise;

     (2) the Company failed to follow accounting rules that
         require derivative securities to be marked to market;

     (3) the Company ``smoothed out its earnings'' using
         accounting techniques to lower results in good times
         and lift results when business conditions deteriorated;
         and

     (4) the Company provided investigators with doctored
         records to conceal its improper accounting techniques.

For more details, contact Michael Goldberg, Esquire, of Glancy &
Binkow LLP by Mail: 1801 Avenue of the Stars, Suite 311, Los
Angeles, California 90067, by Phone: (310) 201-9161 or Toll Free
at (888) 773-9224 or by E-mail: info@glancylaw.com.


FEDERAL HOME: Spector Roseman Lodges Securities Suit in E.D. VA
---------------------------------------------------------------
Spector, Roseman & Kodroff, PC initiated a securities class
action in the United States District Court for the Eastern
District of Virginia, on behalf of purchasers of the common
stock of Federal Home Loan Mortgage Corporation (Freddie Mac)
(NYSE:FRE) between April 18, 2000 through June 6, 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 during the class period thereby
artificially inflating the price of Freddie Mac securities.

The complaint specifically alleges that throughout the class
period the Company issued statements, press releases, and filed
quarterly and annual reports with the SEC describing the
Company's business operations and financial condition.  These
representations were materially false and misleading because
they failed to disclose that the Company had materially
misstated its operating earnings throughout the class period.

Specifically, Freddie Mac may have earned more than it reported
and had a higher capital surplus.  This practice, called
"smoothing" allows companies to meet or exceed earnings
estimates and report substantial growth going forward by
deferring present gains to future periods.  The effect of this
practice is to create the impression that earnings growth is
steady and the Company meets or exceeds analysts' expectations
on a regular basis.  This practice violates Generally Accepted
Accounting Principles. The Company also is alleged to have
failed to account properly for hedges and assets with respect to
derivative securities.

On June 9, 2003, before the market opened, Freddie Mac issued a
press release announcing that it had fired defendant David Glenn
because of "serious questions about the timeliness and
completeness of his cooperation and candor with the board's
audit committee counsel," that defendant Leland C. Brendsel had
retired and that defendant Vaughn Clarke had resigned.

On this news, shares of Freddie Mac, which had closed at $59.87
on June 6, 2003, fell to $52 in midday trading on June 9, 2003.
On June 11, 2003, the US Attorney's office for Eastern Virginia
confirmed that it was investigating Freddie Mac and that the SEC
was also investigating whether Freddie Mac deferred income to
smooth out results in future periods.  Moreover, the SEC is
reportedly investigating whether Freddie Mac's CEO and CFO
certified otherwise false financial statements in violation of
Sarbanes-Oxley.

For more details, contact Robert M. Roseman by Phone:
(888) 844-5862 or visit the firm's Website: http://www.srk-
law.com


GUIDANT CORPORATION: Glancy & Binkow Files Securities Suit in IN
----------------------------------------------------------------
Glancy & Binkow LLP initiated a securities class action in the
United States District Court for the Southern District of
Indiana on behalf of all persons who purchased securities of
Guidant Corporation (NYSE:GDT) between June 23, 1999 and June
12, 2003, inclusive.

The Complaint charges Guidant, certain of its executive officers
and Guidant's wholly owned subsidiary, EndoVascular
Technologies, Inc., 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 the Company's business
operations and prospects caused Guidant's stock price to become
artificially inflated, inflicting damages on investors.

Guidant designs, develops, manufactures and markets therapeutic
medical devices for the treatment of cardiovascular and vascular
diseases.  The complaint alleges that during the Class Period,
defendants, among other things, failed to disclose problems with
the Company's ``Ancure Endograft System'' -- a device for
treating abdominal aortic aneurysms.

Unbeknownst to investors, defendants had learned from physicians
during clinical trials that the delivery system for implanting
the Ancure Device in the aorta was seriously flawed, and in some
instances physicians were unable to implant the Ancure Device or
could not implant it in a manner consistent with the FDA
approved instructions for its use.

Plaintiff claims the Company failed to disclose this information
to the investing public to avoid damage to the Company's
reputation, which would have a materially adverse effect on its
financial performance and prospects.

The truth emerged on June 12, 2003, when the United States
Attorney's Office for the Northern District of California issued
a press release in which it announced that Guidant's
EndoVascular Technologies, Inc. subsidiary had pled guilty to
ten felonies and agreed to pay $94.2 million to settle criminal
and civil charges that it had covered up thousands of incidents
in which the Ancure Device had malfunctioned and that use of the
Ancure Device had resulted in twelve deaths and dozens of
invasive surgeries.

For more details, contact Michael Goldberg by Mail: 1801 Avenue
of the Stars, Suite 311, Los Angeles, California 90067, by
Phone: (310) 201-9161 or (888) 773-9224 or by E-mail:
info@glancylaw.com.


GUIDANT CORPORATION: Emerson Poynter Files Securities Suit in IN
----------------------------------------------------------------
Emerson Poynter LLP initiated a securities class action in the
United States District Court for the Southern District of
Indiana, Indianapolis Division, on behalf of purchasers of
Guidant Corporation (NYSE:GDT) publicly traded securities during
the period between June 23, 1999 and June 12, 2003, inclusive.

The Complaint alleges that defendants violated Section 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 throughout the Class Period.

Specifically, the complaint alleges that defendants issued
numerous positive statements regarding the performance of
ANCURE, a device used for the treatment of abdominal aortic
aneurysms (AAA).  As alleged in the complaint, these statements
were materially false and misleading because they failed to
disclose and/or misrepresented the following adverse facts,
which were known, or should have been known to defendants at the
time they were made:

     (1) that the Company had violated Food & Drug
         Administration (FDA) regulations by marketing and
         selling a device (ANCURE) which had not been approved
         by the FDA;

     (2) that the Company failed to report to the FDA that
         problems with ANCURE had resulted in more than 2,600
         injuries, including 12 deaths; and

     (3) that as a result of the Company's actions, the Company
         would be subject to additional government scrutiny,
         thereby negatively impacting its future earnings.

On June 12, 2003, the Company announced that its subsidiary,
EndoVascular Technologies (EVT), entered into a settlement
agreement with the U.S. Department of Justice relating to
certain problems with ANCURE(r).  Specifically, the article
stated that under the terms of the agreement, EVT agreed to make
a payment of $43.4 million and an additional $49 million civil
settlement to the government.  EVT also agreed to plead guilty
to 10 felony counts, including nine for shipping misbranded
products and one count of a former employee making false
statements to the government.  

Prior to the disclosure of this adverse information, the
Individual Defendants and other Guidant insiders sold more than
$26.4 million of their personally-held shares of Guidant stock
to the unsuspecting public.

For more details, contact John G. Emerson by Mail: 830 Apollo
Lane, Houston, TX 77058 by Phone: (281) 488-8854 or by E-mail:
shareholder@emersonfirm.com


GUIDANT CORPORATION: Abbey Gardy Launches Securities Suit in IN
---------------------------------------------------------------
Abbey Gardy, LLP initiated a securities class action in the
United States District Court for the Southern District of
Indiana, on behalf of all persons who purchased or otherwise
acquired the securities of Guidant Corporation (NYSE:GDT)
between September 28, 1999 and June 12, 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 during the class period thereby
artificially inflating the price of Guidant securities.

The complaint charges Guidant and and certain of its officers
and directors with violations of federal securities laws.  
Specifically, the alleges that defendants misled the investing
public as to the safety, reliability, marketability and
financial impact of Ancure, a device Guidant's subsidiary,
EndoVascular Technologies (Endovascular), developed and marketed
for the treatment of abdominal aortic aneurysms.

Defendants misled the investing public as to the present risks
for its business and finances as a result of product liability
lawsuits and government prosecution relating to Ancure.  
Defendants further misled the investing public and the Food and
Drug Administration as to the safety of Ancure by concealing the
number of patient injuries or complications that resulted from
the use of Ancure.  The purpose of the scheme was to, among
other things, allow the Company to continue to provide inflated
expectations as to Ancure's marketability, and to maintain
inflated share price multiples unobtainable had the truth been
known.

On June 12, 2003, Guidant announced that it and Endovascular,
had settled with the Department of Justice in relation to an
investigation of the regulatory misconduct involving the
deployment of Guidant's Ancure Endograft System (Ancure).  Under
the terms of the plea agreement Guidant agreed to make a payment
of $43.4 million and an additional $49 million civil settlement
to the government.  Endovascular also agreed to plead guilty to
10 felony counts.

For more details, contact Nancy Kaboolian by Phone:
(212) 889-3700 or (800) 889-3701 by E-mail:
nkaboolian@abbeygardy.com or visit the firm's Website:
http://www.abbeygardy.com


                              *********

A list of Meetings, Conferences and Seminars appears in each
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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
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online database created to respond to custom searches. Go to
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                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Class Action Reporter is a daily newsletter, co-published by
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Copyright 2003.  All rights reserved.  ISSN 1525-2272.

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