/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030711.mbx C L A S S A C T I O N R E P O R T E R Friday, July 11, 2003, Vol. 5, No. 136 Headlines BLUE SQUARE: Sued for Violating Israeli Consumer Protection Act CALIFORNIA: Mulls Diphenyl Ether Ban Over Risk to Women, Newborn CHIRON CORPORATION: Agrees To Settle Antitrust Suit Over Tests CORDIS CORPORATION: Warns Centers Of Risks Of Cypher Stent Use CORRUGATED BOXES: Top Firms Launch Antitrust Lawsuits in N.D. IL ENRON CORPORATION: Trial in Washington County Lawsuit Delayed FLORIDA: Court Certifies ADA Suit V. Palm Beach Elections Head FROZEN SHRIMP: Quirola Consumers Warned Of Undeclared Sulfites GEORGIA: Violent Death Rate For Prison "Extraordinarily High" GLAXOSMITHKLINE: To Settle Lawsuits Over Lymerix Lime Vaccine HAWAII: Two Dozen Japanese Tourists Injured in Tour Bus Accident IN-FLIGHT ENTERTAINMENT: FAA Reveals Systems Still Malfunction NEW YORK: Court Allows Race Bias Suit V. Parks Dept To Proceed NORWEGIAN CRUISE: Couple Allegedly Held Captive On Company Ship PACIFIC SEAFOOD: Recalls Salmon Due To Listeria Contamination PHARMACEUTICAL FIRMS: UK Hemophiliacs Sue Over Tainted Blood POLAROID: Employees Commence Lawsuit For ERISA Violations in MA PROCOM TECHNOLOGIES: Investors Sue Over False Revenue Statements QWEST COMMUNICATIONS: To Settle Consumer Fraud Suit For $3.75M RESPIRONICS CALIFORNIA: Recalls Ventilators For Health Hazards SLAVE REPARATIONS: Lead Plaintiff in Suit Lauds Bush Statement SOMALIA: United States Appeals Court Hears Deportation Lawsuit SOUTH CAROLINA: Chester County District Sued For Unpaid Overtime TAR CREEK: Plaintiffs' Lawyers To Tour Site, Meet With Clients TENET HEALTHCARE: SEC Subpoenas Medicare Payments Documents UCLA SCHOOL OF MEDICINE: Judge Urges Desecration Suit Settlement * Mass Tort Conference Covers Spectrum of Topics Asbestos Alert ASBESTOS LITIGATION: Asbestos Bill Heightens Insurer Woes ASBESTOS LITIGATION: Texas Senator Resurrects Asbestos Measure ASBESTOS LITIGATION: Status Confab Eyed for ABB Asbestos Plan ASBESTOS LITIGATION: Halliburton Shares Soar on Asbestos Plan ASBESTOS LITIGATION: Rantoul Levies $4,446 for Asbestos Claims ASBESTOS LITIGATION: UAI Gets Another Asbestos-Related Rap ASBESTOS LITIGATION: Administrative Judge Upholds Levy in Suit ASBESTOS LITIGATION: Watts Battles 100 Asbestos-Related Suits New Securities Fraud Cases BARRICK GOLD: Rabin Murray Launches Securities Suit in S.D. NY CRYO-CELL INTERNATIONAL: Marc Henzel Files Securities Suit in FL DAISYTEK INTERNATIONAL: Marc Henzel Lodges Securities Suit in TX FEDERAL HOME: Marc Henzel Files Securities Fraud Suit in S.D. NY POLYMEDICA CORPORATION: Lasky & Rifkind Lodges Stock Suit in MA READ-RITE CORPORATION: Schiffrin & Barroway Lodges Lawsuit in CA READ-RITE CORPORATION: Charles Piven Files Securities Suit in CA SINGING MACHINE: Lasky & Rifkind Launches Securities Suit in FL ********* BLUE SQUARE: Sued for Violating Israeli Consumer Protection Act --------------------------------------------------------------- Blue Square-Israel Ltd. received a copy of a claim and a petition to approve a class action, which had been filed against it and its subsidiaries, The Blue Square Chain Investments & Properties Ltd. and The Blue Square Chain (Hyper Hyper) Ltd., on June 23 with the District Court in Tel Aviv-Yafo. The petitioners allege that these companies, when charging for goods purchased by weight in their stores, round the amounts due by customers in a manner that contravenes the Israeli Consumer Protection Act of 1981 and other applicable law. The claimants are claiming an aggregate of NIS25 million against the companies. Blue Square is now in the process of examining the claim and the petition. Blue Square-Israel Ltd is a leading retailer in Israel. A pioneer of modern food retailing in the region, Blue Square currently operates [162] supermarkets under different formats, each offering varying levels of services and prices. For more information, visit the Company's Website; http://www.coop.co.il. CALIFORNIA: Mulls Diphenyl Ether Ban Over Risk to Women, Newborn ---------------------------------------------------------------- California Environmental Protection Agency Secretary Winston Hickox backed a proposal to ban two forms of chemicals used as flame retardants, the Associated Press reports. These chemicals are commonly used in upholstery, electronics and other foam and plastic products. California could be the first state to ban the use of polybrominated diphenyl ethers (PBDEs) and octabrominated diphenyl ethers - which can accumulate in the blood of mothers and their newborn children. Citing research partly developed by the state EPA, Sec. Hickox said the chemicals can disrupt the thyroid and hurt children's brain development. He added that the levels in North American women are the highest in the world and are nearing levels that have been shown to damage learning, memory and behavior in laboratory mice. The European Union will ban the use of these chemicals by mid- 2004. Some American manufacturers have voluntarily stopped using the chemicals, but Sec. Hickox told AP the chemicals should be banned worldwide. Assemblywoman Wilma Chan told AP she hopes approval of her proposed California ban "will spark the rest of the nation to take action." The chemicals would be banned by 2008 under the plan. A telephone message was not immediately returned Monday from the Chemical Manufacturers Association, AP reports. CHIRON CORPORATION: Agrees To Settle Antitrust Suit Over Tests -------------------------------------------------------------- Chiron Corporation and its European licensee, F. Hoffman-La Roche have settled antitrust complaints with European blood banks over the pricing of its hepatitis and HIV tests, the Associated Press reports. The German Red Cross Donation Service and the Working Society of Physicians filed the suit in October 2001, alleging that Roche's prices for its tests were unreasonable and should be prohibited. Groups from the Netherlands, the United Kingdom, Finland and Luxembourg later joined the suit. The Commission of the European Communities has accepted a joint settlement proposal made by the defendants. The Company told AP that it settled the suit by modifying licensing agreements that allow Hoffman-La Roche to use Chiron's technology in hepatitis C and HIV-1 blood-testing kits. Under the settlement, the company will extend a time-limited license offer to blood banks using "home brew" testing, allowing them to continue to use their own in-house technology to screen donations. As part of this offer, Chiron will provide relief from liability for past infringements to all blood banks that take such a license, the Associated Press reports. CORDIS CORPORATION: Warns Centers Of Risks Of Cypher Stent Use -------------------------------------------------------------- Cordis Corporation told 1,200 cardiac centers to be careful in using its popular new drug coated heart stent, Cypher, saying it has been linked to blood clots in almost three dozen people, including five who died, the Associated Press reports. The Cypher stent is a tiny metal scaffold that props open a cleaned- out artery and, unlike other stents, emits a drug to reduce the chances the artery will clog again. The Company wrote a letter to the centers, saying clots could happen if the Cypher was used improperly by choosing stents that were too small, implainting stents improperly or not giving patients appropriate anti-clotting medicine afterward. The Company however, called the risk very rare considering 50,000 patients have received a Cypher stent since the eagerly awaited device began selling in April. It further stated that the drug doesn't prevent a different risk posed by all stents - blood clots that form around the device and can cause a heart attack. The United States Food and Drug Administration echoed the warning after it received reports of blood clots in 34 Cypher stent recipients. Five of those patients died, although FDA doesn't know if the clots actually caused the deaths, a spokeswoman told the Associated Press. The FDA said that in studies where Cypher was implanted under strict conditions, it proved no more likely to cause blood clots than long-used bare- metal stents. FDA cardiovascular devices chief Dr. Bram Zuckerman detailed guidelines for the safe-use of Cypher, namely: (1) Cypher stents are only for new patients, not to replace a reclogged stent; (2) Recipients must take anti-clotting drugs for three months after getting the stent - not the mere two weeks prescribed for bare-metal stents - because arteries heal slower after Cypher insertion; (3) Closely match stent size to artery diameter. Demand for the Cypher greatly eclipsed supply when it debuted, and Cordis said it initially concentrated on making smaller sizes but now offers a larger size. (4) Be sure the stent is fully open, touching the artery wall; For more information, contact the Company by Phone: 1-800-327- 7714, or the FDA by Phone: 1-800-FDA-1088 or visit the firm's Website: http://www.fda.gov/MedWatch. CORRUGATED BOXES: Top Firms Launch Antitrust Lawsuits in N.D. IL ---------------------------------------------------------------- Several corporate giants commenced three new separate lawsuits against corrugated and sheet box manufacturers in the United States District Court for the Northern District of Illinois, Packaging Online reports. The suit alleges that the defendants conspired to artificially manipulate the supply and prices for corrugated plaintiff boxes between 1993 to 1995. The plaintiffs include: (1) Procter & Gamble, (2) Kraft Food North America, (3) Coca-Cola, (4) Colgate-Palmolive, (5) Chiquita Brands, (6) Hallmark Cards, (7) Sara Lee, (8) SmithKline Beecham, and (9) Tyson Foods Paul Vishny, legal counsel for the Association of Independent Corrugated Converters (AICC) wrote, according to Packaging Online, that "the number and notoriety of the plaintiffs reads like a Who's Who of the Fortune 100 companies." An earlier suit in Philadelphia case listed only a dairy, a refractories company, and other small users. "Interestingly enough, these new cases also do not include a class for linerboard purchasers, just corrugated sheets and boxes," Mr. Vishny added. "In all likelihood, these cases will be transferred to Philadelphia, but they are not class action suits and will probably require separate trials" ENRON CORPORATION: Trial in Washington County Lawsuit Delayed ------------------------------------------------------------- Washington County Judge Terry Flenniken reset trial for a securities class action against Enron Corporation from September 29, 2003 to November 10. It is the first Enron shareholder suit expected to reach trial, the Houston Chronicle reports. Judge Flenniken moved the date after the plaintiffs' attorneys missed a deadline to name expert witnesses. The suit was filed on behalf of Washington County residents who bought Enron stock after former Enron Chairman Ken Lay spoke at a local Chamber of Commerce forum. The suit was filed at a time when dozens of cases were filed nationwide after Enron collapsed in December 2001. Most of the suits were consolidated in the United States District Court in Houston, Texas, before Judge Melinda Harmon, but the Washington County suit escaped this fate. This is because attorneys Sean Jez and George Fleming, decided to limit the number of plaintiffs so it could not be lumped in with the federal securities fraud suits. The attorneys also named only a few defendants to keep the case manageable and move it to trial quickly. The suit only names former Enron accounting firm Arthur Andersen and several former Enron and Andersen executives such as Mr. Lay, former Chief Executive Officer Jeffrey Skilling and former Chief Financial Officer Andrew Fastow as defendants. Even with the delay, the case is seen as proceeding well. Defendants have tried to get the case stopped, moved to federal court or broadened, but Judge Flenniken has generally treated the maneuvers as stall tactics and pushed forward with the case, the Houston Chronicle reports. Arthur Andersen asked the court to include as defendants financial institutions J.P. Morgan Chase & Co., Merrill Lynch, Bank of America, Credit Suisse First Boston and others. Judge Flenniken refused to grant the request, and Andersen's attorney Rusty Hardin appealed the decision to the Texas 14th Court of Appeals. Arguments before the appeals court in Houston are scheduled this week. FLORIDA: Court Certifies ADA Suit V. Palm Beach Elections Head -------------------------------------------------------------- US Magistrate Judge Linnea Johnson granted class status to a lawsuit filed against Palm Beach County Elections Supervisor Theresa Lepore over voting machines for sight-impaired voters, the Miami Herald reports. The suit charges Ms. Lepore with failing to distribute Sequoia audio voting machines during the 2002 general elections, because she thought it would slow the process down. The suit, filed on behalf of 30,000 sight-impaired voters, alleges violations of the Americans with Disabilities Act. The trial is tentatively scheduled for December. "It's a huge boost," Miami attorney Matthew W. Dietz, who filed the lawsuit in February on behalf of five voters, told the Herald. Ms. LePore told the Herald the lawsuit is unfair because the county isn't required by law to put audio voting machines in every precinct until 2006. She said in the 2002 general election, the machines were new and an audio ballot took a long time, so it was decided to only have it in the main office. "We knew the polls were going to be crowded and we wanted to make it convenient for the voters who had to use the audio ballot, so we had it in the main office so they could be comfortable," Ms. LePore said. FROZEN SHRIMP: Quirola Consumers Warned Of Undeclared Sulfites -------------------------------------------------------------- New York Agriculture Commissioner Nathan L. Rudgers warned sulfite-allergic consumers and asthmatics to avoid consuming "Quirola Fresh Frozen Shrimp" due to the presence of undeclared sulfites in the product. The product was sold by Chong Rae Choi, 10 Willoughby Street, Brooklyn, New York 11201. "Quirola Fresh Frozen Shrimp", a product of Ecuador, was offered for sale from a bulk display on June 17, 2003. The shrimp was sold cash and carry from the 10 Willoughby Street location. Routine sampling by New York State Department of Agriculture and Markets food inspectors revealed the shrimp contained high levels of sulfites, which were not declared on the label. Sulfites can cause deadly reactions in asthmatics and others suffering sulfite allergies. No illnesses have been reported to date. Consumers who purchased "Quirola Fresh Frozen Shrimp" should return it to the place of purchase. GEORGIA: Violent Death Rate For Prison "Extraordinarily High" ------------------------------------------------------------- Prisoners at Phillips State Prison in Buford, Georgia have died violently at an "extraordinarily high" rate, documents in a class action filed against the 1,200-bed prison, state, according to the Associated Press. The Atlanta-based advocacy group Southern Center for Human Rights filed the suit on behalf of 225 mentally ill inmates. The suit alleges the Georgia Department of Corrections permitted deaths to occur because of undertrained correctional staff and "inadequate procedures dealing with the special population of seriously mentally ill prisoners." The suit further states that since July 2001, six inmates have died from suicide, falls or assaults by other inmates. The most recent death was inmate Reginald Taylor, who hanged himself after the was "slammed against a wall or fence by an officer.' The Georgia Department of Corrections does not comment on pending litigation, spokeswoman Scheree Lipscomb told AP. GLAXOSMITHKLINE: To Settle Lawsuits Over Lymerix Lime Vaccine ------------------------------------------------------------- GlaxoSmithKline, formerly SmithKline Beecham, agreed to settle a consolidated class action over its discontinued Lymerix Lime disease vaccine, alleging it could cause an arthritic condition in some people, Philly.com reports. Several suits were filed in New York, New Jersey and Pennsylvania, but these were later consolidated in Chester County Court under Judge Jacqueline C. Cody. In February 2002, the Company removed Lymerix off the market, which plaintiffs' attorneys said accomplished the main goal of the suit. Under the settlement, the Company initially agreed to pay $926,250 for lawyers' fees and $137,997 for the suit's costs to the plaintiffs' attorneys. Those who received the vaccine will get nothing from the settlement. Judge Cody expressed concern on the amounts, and trimmed the amout by 5%. Stephen A. Sheller, an attorney for the plaintiffs, didn't criticize the scrutiny of the attorney fees, though he said the lawyers wouldn't become wealthy after the money was divided more than 30 ways, the Houston Chronicle reports. Mr. Sheller said the litigation was started at the urging of doctors worried that the vaccine could cause a risk of arthritis in some genetically susceptible people. GlaxoSmithKline denied that the vaccine caused any illness and said it was proven safe and effective in clinical trials. The company said it agreed to the settlement only to avoid the costs of lengthy litigation, the Houston Chronicle reports. The company took the vaccine off the market for financial reasons, not because of health risks or lawsuits, said Danielle Halstrom, a GlaxoSmithKline spokeswoman. HAWAII: Two Dozen Japanese Tourists Injured in Tour Bus Accident ---------------------------------------------------------------- Two-dozen Japanese tourists were injured when a tour bus crashed into a guardrail, the Associated Press reports. The driver of the bus allegedly collapsed at the wheel and is presently in critical condition at the Queen's Medical Center. The tourists were returning to their hotel Saturday night, when the tour bus flipped onto its side and slid 150 feet on a highway just outside Honolulu, Hawaii. Two of the passengers were in serious condition, authorities told AP. Twenty-two other passengers were treated for minor injuries and released. Police further added that two passengers tried unsuccessfully to take control of the bus after the driver slumped over. Most of the passengers got out through escape hatches through the roof of the bus, Fire Department spokesman Capt. Kenison Tejada told AP. The driver's arm was trapped under the bus, Capt. Tejada said. "We were able to use the jaws (Jaws of Life device) to free him up and take him out of the front windshield, which was actually near the ground level." Police told AP the driver may have suffered from medical problems, and that neither alcohol nor amphetamines were factors in the crash. IN-FLIGHT ENTERTAINMENT: FAA Reveals Systems Still Malfunction -------------------------------------------------------------- An analysis of the United States Federal Aviation Administration (FAA) database reveals that in-flight entertainment systems are still malfunctioning, even after a Swissair jet crashed in 1998 due to an entertainment system malfunction, the Associated Press reports. The entertainment system in the Swissair jet caught fire, causing it to crash in Nova Scotia, and killing all 229 passengers on board. After the crash, US airlines sent 60 reports of service difficulties with the entertainment systems. Many involved fire smoke, sparks or a burning odor in the passenger cabin. In response, the FAA sent 22 orders to modify, repair or ban entertainment systems installed as replacements between 1992 and 2000. However, the agency vouched for the safety of entertainment systems, and said the orders were meant to prevent unsafe conditions. The agency told AP it has made sure that no system has the same design features as the one on the Swissair aircraft. The FAA also required airlines to report within three days each "failure, malfunction or defect" that could endanger an aircraft. "More incidents probably go unreported than are reported," Alex Richman, spokesman for AlgoPlus Consulting, which analyzes data for aircraft operators told AP. Manufacturers say safety is the first priority for their systems. "We'd support any procedures that would further enhance the safety of the systems," Rob Brookler of the World Airline Entertainment Association, which represents manufacturers, suppliers and airlines, told AP. NEW YORK: Court Allows Race Bias Suit V. Parks Dept To Proceed -------------------------------------------------------------- The United States District Court in Manhattan allowed a lawsuit filed by several Parks and Recreation Department employees against the agency to proceed as a class action, the Associated Press reports. A group of 11 black and Hispanic Parks Department employees lodged the suit in 2001, alleging the agency refused to give minorities raises and promotions and failed to enforce laws promoting equal employment opportunity. Judge Denny Chin ruled Monday that the allegations were common to all of the employees "regardless of civil service rank, title, provisional status, or collective bargaining agreement," the Associated Press reports. The ruling would expand the impact of the case if the plaintiffs win. Barbara Butler, a senior attorney for the city's corporation counsel, told AP the ruling was standard procedure. NORWEGIAN CRUISE: Couple Allegedly Held Captive On Company Ship --------------------------------------------------------------- A married couple recently sued the Norwegian Cruise Lines (Norwegian), alleging they were held captive on one of the company's luxury ships in Hawaii because the wife was doing work for a law firm suing the Company, Reuters reports. The couple, Mark and Beth Lurie, filed suit in Manhattan, in the US District Court, contending they were prevented from leaving the Norwegian Star when it docked in Maui on February 28. The lawsuit further alleges they were held incommunicado in a locked room for several hours. They were then forced to leave the ship before the cruise ended. The Luries, who said they paid $1,499 for the week-long cruise, are seeking more than $500,000 in actual damages and over $1 million in punitive damages. The lawsuit said the ship's crew held them captive because Beth Lurie is a paralegal for Jenkens & Gilchrist Parker Chapin, a Manhattan law firm that has filed a class action on behalf of Norwegian Cruise employees, alleging they have not been fully paid. Barry Fertel, the couple's lawyer, told Reuters that Beth Lurie had been asked by her firm to question some cruise line employees, during her vacation cruise, regarding the class action. The lawsuit claims that Norwegian Cruise, a unit of NCL Holding, which is owned by Malaysia's Star Cruises, refused to reimburse the couple for the cost of the cruise. Spokeswoman for the cruise line, Susan Robison, said that at no time was the couple confined to their cabin. She also said a federal district judge in New York has ordered the law firm representing Mark and Beth Lurie not to send anyone undercover as passengers onboard the company's ships. PACIFIC SEAFOOD: Recalls Salmon Due To Listeria Contamination ------------------------------------------------------------- Pacific Smoking Co. of Salem, Oregon, is voluntarily recalling 222.44 pounds of Pacific Seafood Northwest Style Smoked Salmon, because it has the potential to be contaminated with Listeria monocytogenes, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Although healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea, Listeria infection can cause miscarriages and stillbirths among pregnant women. Pacific Seafood Northwest Style Smoked Salmon was distributed in Oregon, Washington, Idaho, Montana, and California, through food service and retail outlets. The smoked salmon is vacuumed packaged in approximate one half to one pound packages. On the back of each package there is an orange sticker with the lot numbers 052922, 092903. No illnesses relating to this product have been reported to date. The potential for contamination was noted after routine FDA testing revealed the presence of Listeria monocytogenes in retail packs of smoked salmon. For more details, contact the Company by Phone: 503-905-4446. PHARMACEUTICAL FIRMS: UK Hemophiliacs Sue Over Tainted Blood ------------------------------------------------------------ Five pharmaceutical firms face a class action filed in the United States District Court for the Northern District of California on behalf of hundreds of Scottish hemophiliacs who were infected with HIV after receiving contaminated blood products, Scotland on Sunday reports. The suit names as defendants: (1) Alpha Therapeutic, (2) Armour, (3) Aventis, (4) Baxter and (5) Bayer The pharmaceutical giants allegedly conspired to sell contaminated products abroad, and dumped drugs that were considered unsafe for the United States on the European market. Hemophiliacs take drugs in question to reduce bleeding. Components of human blood were used to make the medicines and it is alleged transfusions from high-risk groups were knowingly used. The companies allegedly manufactured the blood-based clotting products Factor VIII and Factor IX and selling them to health services treating hemophiliacs in countries across the world, including Scotland, despite knowing they had been made using blood from donors at high risk of carrying Aids and Hepatitis C. Hundreds of British hemophiliacs were infected with HIV and the Hepatitis C virus in the 1980s after receiving these contaminated blood products. The suit further alleges that the drug companies were aware of techniques for `screening-out' blood products infected with HIV and Hepatitis C but failed to use them. The firms reportedly knew the treatments were definitely contaminated but sold them regardless, even though they had decided not to market them in the US. The suit was filed on behalf of 30,000 hemophiliacs, and seeks a minimum of GBP45,000 compensation for each. The companies could be forced to pay out a minimum of GBP1.35 billion (US$2.25 billion). Hemophiliacs in Scotland have been campaigning for compensation and a public inquiry in the UK into what happened, but have so far been unsuccessful. Andy Gunn, 28, a hemophiliac from Inverness who could benefit from a successful court case, told Scotland on Sunday, "Nobody will help us in the UK so we have to rely on the US lawyers. All we can hope is that they win, these companies are shown up and we, the victims, get some kind of compensation." Lieff, Cabraser, Heimann & Bernstein, the lead legal firm for the plaintiffs in the case, told Scotland on Sunday the companies involved deliberately targeted high risk groups such as drug abusers, prisoners and poor inner city residents as blood donors, because they were more likely to respond to cash offers. Heather Foster, a lawyer with Lieff, Cabraser, told Scotland on Sunday, "One of the reasons the defendants' actions were so bad is that these products were banned in the US but continued to be exported to Scotland and to the rest of the UK." Asked why the NHS came to buy products banned in America, she said the companies must have convinced the British government that they were safe. Ms. Foster said there were hopes about a settlement for Scottish patients, since US hemophiliacs had already been compensated. Patients preparing for the case also allege that they have been unable to access their medical records, preventing them pinpointing which batches of blood product they were given. Health minister Malcolm Chisholm told hospitals earlier this year that they must hand over relevant notes. POLAROID: Employees Commence Lawsuit For ERISA Violations in MA --------------------------------------------------------------- Polaroid faces a lawsuit filed in the United States District Court in Boston, Massachusetts by five of its former employees, alleging violations of the Employee Retirement Income Security Act (ERISA), the Associated Press reports. The employees allege that the Company, its bankrupt estate and its new parent, violated their rights when the Company cut off their long-term disability benefits last year, after the sale of the Company to One Equity Partners, a unit of Chicago-based Bank One Corporation. The Company allegedly sent a letter telling about 180 employees receiving long-term disability, and 70 surviving spouses, that they would no longer be considered employees. The plaintiffs include a man with incurable skin cancer and a woman with Alzheimer's. They have asked the court to restore their benefits, reimburse insurance premiums and pay damages, AP reports. Spokesmen for Polaroid, which is now a separate entity from the bankrupt estate, and One Equity declined comment, the Associated Press states. PROCOM TECHNOLOGIES: Investors Sue Over False Revenue Statements ---------------------------------------------------------------- Procom Technologies faces allegations in a shareholders' lawsuit that the Irvine-based maker of data-storage systems fabricated revenue statements between 1999, and 2001, using tricks such as shipping products to employees' homes, and then counting shipments as sales, The Orange County Register reports. The lawsuit, first filed last year, was amended in May with new accusations. The lawsuit, which is pending in federal court in New York, seeks class action status on behalf of anyone who purchased Procom shares between December 9, 1999, and June 25, 2001. Peter Bincow, a Los Angeles attorney representing shareholders suing Procom, said investigators hired by his firm uncovered evidence of the overstated revenue in interviews with former Procom employees. It is these interviews that support the new accusations appearing in the amended lawsuit. Procom, once a hot technology stock now selling for less than one dollar for more than a year, was founded in 1987, by four Iranian-American friends who met at the University of California, Irvine, and went public in 1996 at $9 a share. The stock soared as high as $67 four years later after George Gilder, a respected Wall Street newsletter editor, highlighted the company's growth prospects. However, Procom never successfully navigated a transition from its original business, compact-disc systems for data storage, to the faster-growing NAS (network-attached storage) market, said Mr. Gilder. The NAS systems attach directly to an office computer network, bypassing a server. The company, which has had trouble winning acceptance for its products, is unlkely to survive in its current form, said Ian Gibson, an analyst who follows data-storage companies for Roth Capital Partners in Newport Beach. QWEST COMMUNICATIONS: To Settle Consumer Fraud Suit For $3.75M -------------------------------------------------------------- Qwest Communications agreed to pay $3.75 million to settle a fraud lawsuit filed by the State of Arizona and customers against it, the Associated Press reports. The Company's payment will be for the costs the state incurred for the filing of the suit and for a consumer education program. The payment is separate from compensation allotted to thousands of individual customers, Arizona Attorney General Terry Goddard announced. The suit was commenced in October 2001, and charges the Company with placing unauthorized charges on the customers' phone accounts. The suit further alleged that the Company refused to provide refunds to customers and continued to charge for unauthorized services even after customers complained or contested the charges. The Company also promised to include prohibitions against billing consumers for products or services not ordered or authorized. The Company later worked out a settlement, in which they admitted no wrongdoing. Many of the promises included in the settlement already have been implemented, company spokesman Jeff Mirasola told AP. "We're pleased to resolve this matter so we can now continue our focus on delivering our 'spirit of service' to our customers," he said. He added that transfers of calls were a particular source of aggravation to Qwest customers. The company is training service representatives so they can handle more matters. "Arizona consumers are the big winners in this settlement," Atty. Gen. Goddard told AP. "Qwest's concessions will improve fundamental business practices and make it much more consumer friendly." Similar lawsuits in Colorado and Washington have been settled. A settlement to a lawsuit in Utah is also in the works, Mr. Mirasola told AP. RESPIRONICS CALIFORNIA: Recalls Ventilators For Health Hazards -------------------------------------------------------------- Respironics California, Inc. is recalling its Espirit Ventilator Model V1000, a computer controlled, electrically powered, mechanical ventilator. It is intended to provide ventilatory support for adult and pediatric patients suffering breathing distress. A material used to construct three check-valves in this ventilator predisposed them to premature failure and their orientation in the ventilator could also have caused a problem. There have been two patient injuries resulting in partial or complete failure to permit ventilation. There is a reasonable probability that use of the product presents a high risk of serious adverse health consequences, including death, the FDA stated. For more details, contact Kathy Moore, Director, Quality Assurance/Regulatory Affairs by Phone: 760-918-7321 SLAVE REPARATIONS: Lead Plaintiff in Suit Lauds Bush Statement -------------------------------------------------------------- The lead plaintiff in the class actions against several US companies seeking reparations for slavery hailed President Bush's statement, calling slavery as "one of the greatest crimes in history.' "I applaud President Bush's statement made today on Goree Island that slavery was 'one of the greatest crimes in history'. Our lawsuit against 19 blue-chip corporations for slavery reparations is based on this fact," Deadria Farmer-Paellmann said in a statement. "As with President Bush, international law recognizes that slavery was a crime against humanity for which there is no statute of limitation." The statement asserted that slavery did not end in 1865 in the United States of America with the passage of the Thirteenth Amendment. Several plaintiffs in the pending lawsuits were enslaved in 20th Century United States. The statement went on to say "the president's statement should send a message to defendants in the lawsuit that the truth about slavery being a crime is reaching all levels of society. Corporate defendants should not be able to continue profiting from their crimes. Furthermore, within the last year, the defendants have violated consumer protection laws by communicating false and misleading statements to their consumers about their slave labor practices. Plaintiffs in the lawsuit are consumers of the defendants, as are other members of the plaintiff class. We expect these matters to go to trial too." "A recent United States Supreme Court decision, Nike v. Kasky, affirms our right to a trial on these consumer protection matters," Ms. Farmer-Paellmann said. Nike was accused of making false statements to its consumers about its labor practices. The Supreme Court sent the case back to state court for a trial - a major victory for consumers. "We urge President Bush to back up his passionate words about slavery with reconciliatory action by supporting HR 40," said Conrad Worrill, a reparations activist who has been instrumental in organizing the African American community to attend court hearings on the reparations case. HR40 is a bill Congressman John Conyers has been introducing into Congress since 1989. It would create a commission to study the effects of slavery on the descendants of enslaved Africans. SOMALIA: United States Appeals Court Hears Deportation Lawsuit -------------------------------------------------------------- The United States government has no right to deport Somalis to their war-torn East African homeland, a lawyer argued before a three-judge panel of the Ninth Circuit of the US Court of Appeals, the Dow Jones International News reports. "We are just saying you can't remove aliens to Somalia under the current state of affairs," Nick Gellert told the appeals court judges, noting the fact that there has been no operating central government to receive Somalians from other countries and then alluding to a Somali peace conference over the past weekend at which delegates agreed to create a federal government. A Justice Department lawyer disagreed, saying there is nothing in federal law that prohibits the government from deporting an illegal alien to his or her homeland, even if that country is in chaos, wracked by civil war and lacks a functioning government to accept the deportee. "It is simply not there," Gregory Mack told the panel. "The government may remove aliens to the country of their birth - without qualifications." The issue stems from the government's attempts to deport five Seattle-area Somali men last fall. The Somalis' attorneys sued the Immigration and Naturalization Service, which has since been blended into the new Department of Homeland Security, seeking to block their removal. In January, US District Judge Marsha Pechman sided with the Somali men, and granted class action status that prevented as many as 2,742 Somalis across the country from being deported. In her order, Judge Pechman said that anyone returned to Somalia would face an "extremely high" possibility of being harmed. "The INS is . unable to inform the court what happens to Somalis who are removed, or even confirm that the Somalis handed over to the charter aviation company are in fact transported to Somalis," Judge Pechman ruled. The government then appealed Judge Pechman's ruling to the Ninth Circuit. SOUTH CAROLINA: Chester County District Sued For Unpaid Overtime ---------------------------------------------------------------- A former Chester County schools employee, David Rice, sued the school district over money he claims was not paid him for overtime, The Herald reports. Mr. Rice is one of several plaintiffs named in a class action filed against 20 South Carolina school districts by Jackson, Mississippi-based School Litigation Group on behalf of the plaintiffs. The plaintiffs are all hourly wage employees, whose lawsuit alleges they were not properly paid under the Fair Labor Standards Act. The litigation group attracts plaintiffs by advertising in newspapers and on television, and has filed similar lawsuits for overtime for school district workers in five other southern states. It ran advertisements in South Carolina last winter, one of the group's founding partners said. Attorney Allen Smith of Childes and Halligan is handling the lawsuit for the Chester County School District. He said he still is in the process of gathering payroll records and information in hope of "getting to the bottom of things." The lawsuit could collectively cost the 20 school districts, already cash-trapped because of state budget cuts, more than $15 million. The litigation group does not ask for attorneys fees up front, but instead collects fees from the school districts if the plaintiffs win the lawsuit. If the plaintiffs lose, the School Litigation Group attorneys bear the cost. Attorney Allen Smith said if the suit follows a typical course it could take a year or more before it gets to the courts, unless resolution is reached beforehand. TAR CREEK: Plaintiffs' Lawyers To Tour Site, Meet With Clients -------------------------------------------------------------- Lawyers for plaintiffs in the class action filed against six former mining companies in the Tar Creek Superfund site will tour the site, hold a public press conference, and meet with Picher area residents, and representatives of Picher City and the Picher school district, the Joplin Globe reports. A suit was filed in Oklahoma federal court against six mining companies, seeking damages the plaintiffs experienced over the loss of value to their properties. The suit seeks an "independently supervised medical monitoring program" for people living in the Superfund area, and an "independently supervised relocation program to ensure the residents of the contaminated properties be provided support and financial assistance in relocating away from the contaminated areas." The suit names as defendants: (1) ASARCO Inc., (2) Blue Tee Corporation, (3) Goldfields Mining Corporation, (4) NL Industries Inc., (5) Childress Royalty Co. and (6) Doe Run Corporation The tour group will include Robert F. (Bobby) Kennedy Jr., of the law firm of Kennedy and Madonna, White Plains, N.Y.; Christopher Seeger of the Seeger-Weiss firm of New York City; and Charles Speer of Payne & Jones, Kansas City, Mo. TENET HEALTHCARE: SEC Subpoenas Medicare Payments Documents ----------------------------------------------------------- The United States Securities and Exchange Commission issued a civil subpoena asking for financial documents from Tenet Healthcare Corporation, the Associated Press reports. The Company ran into difficulty in October last year, as it was accused of relying too heavily on supplemental Medicare payments. Additionally, two doctors at a Tenet hospital in Redding performed hundreds of unnecessary heart surgeries. The Company later made several changes, like reducing its reliance on outlier payments, expensing stock options and adding more independent members to its board. Former CEO Jeffrey C. Barbakow stepped down from his position and the company launched a search for a new chief executive. The subpoena shows that the SEC is conducting a formal investigation into the huge operator of for-profit hospitals, Company officials told AP. The subpoena seeks documents since May 31, 1997, related to Medicare outlier payments, stop-loss payments and increases in gross charges, as well as the company's financial and other disclosures. The Company said it would hand over the requested documents and continue to cooperate with the investigation, AP reports. UCLA SCHOOL OF MEDICINE: Judge Urges Desecration Suit Settlement ---------------------------------------------------------------- Superior Court Commissioner Bruce E. Mitchell urged parties in the lawsuit claiming that UCLA's School of Medicine wrongfully dumped donated bodies, to reach a settlement, the Associated Press Newswires reports. Commissioner Mitchell said it would be "financially ruinous" for both sides to continue the lawsuit when as many as 8,000 plaintiffs potentially are involved. He suggested that the University of California, Los Angeles, resolve the case, perhaps, by making some sort of charitable deduction. Attorneys are seeking class action status for the 1996 lawsuit, but the judge did not rule on whether to certify the lawsuit, saying he wanted more information. He scheduled a hearing for September 22. The lawsuit was filed on behalf of donors from the 1950s to 1993, and seeks unspecified damages for breach of contract, negligence and fraud. The lawsuit names as defendants UCLA, the University of California Board of Regents and others. The lawsuit also says the university promised that corpses donated for research would be cremated after use and ashes scattered in a rose garden or at sea. Instead, the suit contends that the remains were wrongfully cremated with dead lab animals before the ashes were dumped in a medical waste landfill. * Mass Tort Conference Covers Spectrum of Topics -------------------------------------------------- At the recently-held fifth annual Mass Torts Made Perfect Conference in Chicago securities plaintiff attorneys met to discuss how best to follow through on information gleaned from government securities fraud investigations and findings. James Hooper, an attorney with Hooper & Weiss, noted that the recent settlement between the government regulators and some members of the brokerage industry has broadened the field of opportunity for plaintiffs in litigation. "This is the third meeting of attorneys across the country to make Wall Street pay Main Street back. The money came right out of Middle America." He said. Seminars covered a wide range of topics from "Why Securities Fit into Mass Torts" which compared elements of individual remedies for mass corporate fraud and class action remedies and whether there's room in the legal system for both to "Size Does Not Matter," which illuminated how small law firms can take on mass securities arbitration claims. Cases against Goldman Sachs, Salomon Smith Barney/City Group, Credit Suisse and Merrill Lynch were also discussed. "This was a successful meeting to exchange ideas and strategies amongst attorneys representing injured clients" noted Troy Rafferty, an attorney with Levin, Papantonio, Thomas, Mitchell, Echsner & Procotor and an event organizer. Mass Torts Made Perfect, formed by Johnnie Cochran, Mike Papantonio and John Morgan, was created to unravel the complexities of mass tort litigation, helping plaintiffs' attorneys increase their mass tort knowledge and expand their practices. Asbestos Alert ASBESTOS LITIGATION: Asbestos Bill Heightens Insurer Woes --------------------------------------------------------- A group of insurers that has been lobbying for the passage of a bill to handle the flood surge of asbestos litigation is getting worried with the latest developments. The American Insurance Association said the recent changes in the proposed bill are troublesome to the industry. The insurers Sen. Orrin Hatch, R-Utah, Chairman of the Senate Judiciary Committee, urged to curb specific claim values to be paid from the proposed $108,000,000,000 privately financed trust fund to make sure it meets the needs of asbestos victims while staying within projected funding levels. Robert E. Vagley, president of the insurance association, raised concerns over the amendment made last week. "The end result may be legislation that substitutes one unsustainable compensation system for another," Mr. Vagley warned. "Insurers would have no choice but to oppose (the bill) if this occurs," he said in a letter. As Democrats worked to increase proposed payouts from the program, Hatch made warnings similar to those from the association about the need to keep the costs to the fund in check. The trust fund would be paid for primarily by businesses facing asbestos claims and their insurers. Outstanding state and federal claims -- and future claims -- would be consolidated in a national court that would make payouts with set amounts for specific ailments. Proponents say the Hatch bill would eliminate economic uncertainty for businesses confronted with thousands of asbestos suits while making the process more fair and equitable for workers sickened by exposure to the mineral. Critics, such as the AFL-CIO and asbestos victims' advocates, painted Hatch's initial proposal as tilted too far toward businesses and insurers. They want to make sure people sickened by asbestos get payments similar to what they could have received in court. ASBESTOS LITIGATION: Texas Senator Resurrects Asbestos Measure -------------------------------------------------------------- A massive political fight ensued in the Texas Legislature as Republican leaders pushed to pass legislation aimed at cutting the number of asbestos-related lawsuits that flood the courts in the state. Gov. Rick Perry added asbestos legislation to the special session originally called to address congressional redistricting. Changing the rules for asbestos-related lawsuits is very important to Gov. Perry and President Bush, who is pressing similar efforts at the national level. With federal lawmakers debating many of the same issues as their counterparts in Texas, passing the bill quickly is seen as a potential bargaining chip in the national negotiations. The Texas bill stalled during the regular legislative session when it was blocked by one vote from reaching the Senate floor, prompting Perry to dress down state Sen. Eddie Lucio Jr., D- Brownsville, in full view of the chamber. The House Civil Practices Committee passed its version, House Bill 47, on a 7-1 vote with no discussion after two hours of testimony. Rep. Yvonne Davis, D-Dallas, cast the lone no vote. The bill is expected to pass the full House easily by the end of the week. ASBESTOS LITIGATION: Status Confab Eyed for ABB Asbestos Plan ------------------------------------------------------------- Concerned parties in the asbestos-related case of Swiss engineering firm ABB's (ABB) have asked a US District Judge Alfred Wolin for a status conference. ABB trust appointee David Austern said he expected the judge to announce late next week a date for the status conference. "It's a technical nicety, to clarify who's going to do what, and what are the time limits," Mr. Austern said. According to Reuters, last month, a bankruptcy court judge tentatively the proposed asbestos settlement -- capping claims at $1,300,000,000 -- but asked for additional evidence. The ruling, if approved by the district judge, is seen as the turning point in ABB's battle for survival. ASBESTOS LITIGATION: Halliburton Shares Soar on Asbestos Plan ------------------------------------------------------------- The noise on the creation of an asbestos fund to deal with the flood of asbestos legislation gives the Houston-based company a boost as its shares increase. The asbestos bill is beneficial to the company since such move could cut Halliburton's current $4,250,000,000 liability by more than 75 percent. Reuters reported that Halliburton got an extra boost from J.P. Morgan analysts, who upgraded the shares to "overweight" from "neutral." ASBESTOS LITIGATION: Rantoul Levies $4,446 for Asbestos Claims -------------------------------------------------------------- Rantoul, a village in Illinois, has agreed to pay a $4,446 settlement to the state for burning down a former Chanute Air Force Base building that contained asbestos. The payout should solve the expensive problems brought on by the decision to use the old building for firefighter training. "I'm glad to see that this is over," said Rantoul Mayor Neal Williams. "I'd like to see us move on." The agreement was reached Thursday, July 3 following months of negotiations between village attorney Ken Beth and the Illinois attorney general's office. The latest payment will bring Rantoul's total bill to $93,046 in cleanup work and fines. In the spring of 2002, the village board approved spending $23,600 to have a professional asbestos removal engineering firm, Oedifice Engineering Inc. of Champaign, design a cleanup project. In October 2002, the board awarded a bid to Champion Environmental Services of Hoopeston to remove asbestos and do other cleanup work for $65,000. The problem began on December 9, 2001, when Rantoul firefighters burned down the old Airman Leadership School dormitory on South Century Boulevard at Tuskegee Avenue as part of a training operation. After state environmental officials received an anonymous telephone call the next day alleging that the building still contained asbestos, the Environmental Protection Agency sent an inspector to the burn site in mid-December. Of 12 samples taken at the site, 11 of them contained a low level of asbestos, and one contained a moderate level of asbestos. Once used extensively as a fireproofing material, asbestos is a fibrous mineral that can cause respiratory problems and cancer if inhaled. ASBESTOS LITIGATION: UAI Gets Another Asbestos-Related Rap --------------------------------------------------------- Universal Automotive Industries, Inc reports that on February 27, 2003, it has been named as a defendant in an asbestos- related lawsuit filed in St. Louis County, Missouri. UAI believes this case will be dismissed during the second quarter 2003. The company also believes that it has good faith defenses to the allegations made in this cause and intend to file answers or other pleadings denying liability in the near future. Its current liability insurance policy does not cover asbestos related claims. UAI has not yet established a reserve against potential liability with respect to these lawsuits. During 2002, UAI was named, along with numerous other defendants (typically, 100 or more), in a total of 65 lawsuits in Madison County, Illinois, and one lawsuit in Outagamie County, Wisconsin. The lawsuits named most of the major domestic manufacturers and distributors of brake parts, among others. The counts against UAI alleged negligence and willful and wanton conduct regarding asbestos exposure over extended periods of time. The company referred these cases to experienced asbestos toxic tort counsel. UAI received notice from the courts that all of these lawsuits, naming it a defendant and claiming alleged liability in connection with the sale and distribution of brake parts containing asbestos, were voluntarily dismissed without prejudice by the plaintiffs. ASBESTOS LITIGATION: Administrative Judge Upholds Levy in Suit --------------------------------------------------------------- An administrative law judge, according to the federal Environmental Protection Agency, has upheld the penalty levied against a Virginia company for the improper removal of asbestos from the West Virginia University Coliseum. Chief Administrative Law Judge Susan L. Biro ruled in late June that the EPA's proposed penalty of $14,500 against USA Remediation Services Inc. was appropriate. Biro said EPA had proved its claims that USA Remediation Services, of Warren, Va., and its subcontractor, Keystone Abatement Services of Pittsburgh, both cited in May 2002, have failed to keep material containing asbestos adequately wet during removal and disposal. The agency also cited WVU's Board of Governors because the university owns and operates the Coliseum. Keystone Abatement and the WVU Board of Governors settled their citations in a June 2002 consent agreement. WVU's board agreed to pay a $10,500 penalty and Keystone agreed to pay $10,000. USA Remediation denied the allegations and requested a hearing, which was held March 4 in Washington, D.C. The abatement project, worth $7,800,000, closed down the 14,000-seat Coliseum from August 1999 to October 2000. ASBESTOS LITIGATION: Watts Battles 100 Asbestos-Related Suits ------------------------------------------------------------- Watts reports that as of March 31, 2003, it is a defendant in around 100 actions filed in Mississippi and New Jersey state courts and alleging injury or death as a result of exposure to asbestos. These filings typically name multiple defendants, and are filed on behalf of many plaintiffs. They do not identify any particular products of Watts as a source of asbestos exposure, and there is no reason to conclude that these filings will have a material effect on the company's liquidity, financial condition or results of operations. New Securities Fraud Cases BARRICK GOLD: Rabin Murray Launches Securities Suit in S.D. NY -------------------------------------------------------------- Rabin Murray & Frank LLP initiated a securities class action in the United States District Court for the Southern District of New York, 03-CV-5059, on behalf of all persons or entities who purchased or otherwise acquired Barrick Gold Corporation securities (NYSE:ABX) during the period February 14, 2002 to September 26, 2002, both dates inclusive. The complaint names as defendants the Company and: (1) Randall Oliphant, (2) John K. Carrington, and (3) Jamie C. Sokalasky The complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission. In particular, the complaint alleges the Company 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 (i) the Company's expected costs for the year would be well above the figures highlighted to the public, (ii) Barrick's costs per ounce had increased dramatically in 2002 and would continue to increase throughout the year, and (iii) 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 expected 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, 2002 on extremely heavy trading volume. For more details, contact Eric J. Belfi or Sharon Lee by Phone: (800) 497-8076 or (212) 682-1818 or by E-mail: email@rabinlaw.com CRYO-CELL INTERNATIONAL: Marc Henzel Files Securities Suit in FL ---------------------------------------------------------------- The Law Offices of Marc S. Henzel 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. (Nasdaq:CCCEC) publicly traded securities during the period between March 16, 1999 through 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 Marc S. Henzel by Mail: 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone: 888/643-6735 or 610/660-8000, by Fax: 610/660-8080, by E-mail: Mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182. DAISYTEK INTERNATIONAL: Marc Henzel Lodges Securities Suit in TX ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Eastern District of Texas on behalf of purchasers of Daisytek International Corporation (NASDAQ:DZTK) publicly traded securities during the period between November 9, 2001 and April 28, 2003. The complaint charges Daisytek and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges violations of the federal securities laws arising out of defendants' issuance of false and misleading statements about the Company's business, operating performance and prospects. Specifically, defendants were improperly accounting for uncollectible customer accounts receivables and vendor rebates receivables to inflate the Company's results. Daisytek is a global distributor of computer and office supplies and professional tape products. Due to Daisytek's favorable reported results, defendants were able to secure financing essential to the Company. The Company subsequently disclosed it would record "significant" write-downs of customer and vendor receivables and inventory and large restructuring charges. On this news, the Company's stock dropped to $0.53. The Company subsequently announced the resignation of its CEO and its CFO. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone: (888) 643-6735 or (610) 660-8000, by Fax: (610) 660-8080, by E- mail: Mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182. FEDERAL HOME: Marc Henzel Files Securities Fraud Suit in S.D. NY ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Federal Home Loan Mortgage Corporation (NYSE:FRE) between January 27, 2003 and June 9, 2003, inclusive, is pending in the United States District Court for the Southern District of New York against the Company and: (1) David Glenn (COO until June 9, 2003), (2) Vaughn Clarke (CFO until June 9, 2003) and (3) Leland C. Brendsel (CEO and Chairman until June 9, 2003) The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between January 27, 2003 and June 9, 2003. According to the complaint, the Company's Class Period earnings announcement was materially false and misleading because it failed to disclose that the Company: (1) lacked adequate internal accounting controls and personnel expertise, (2) failed to follow accounting rules that require derivative securities to be marked to market, (3) "smoothed out its earnings" using accounting techniques to lower results in good times and lift results when business conditions deteriorated and (4) provided investigators with doctored records to conceal their improper accounting techniques. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by Phone: (888) 643-6735 or (610) 660-8000, by Fax: (610) 660-8080, by E- mail: Mhenzel182@aol.com or visit the firm's Website: http://members.aol.com/mhenzel182. POLYMEDICA CORPORATION: Lasky & Rifkind Lodges Stock Suit in MA --------------------------------------------------------------- Lasky & Rifkind, Ltd. initiated a securities class action in the District Court for the District of Massachusetts, on behalf of persons who purchased or otherwise acquired the securities of PolyMedica Corporation (Nasdaq:PLMD) between July 23, 2001 and June 30, 2003, inclusive. The lawsuit was filed against PolyMedica and certain officers of the Company. The complaint alleges that throughout the class period, PolyMedica overstated earnings by capitalizing certain advertising costs rather than expensing them as incurred, thereby recording the costs as assets rather than as expenses. The complaint further alleges that the above detailed accounting practice misled PolyMedica investors because it allowed the Company to understate operating expenses and overstate assets throughout the class period. Following discussions with the Securities and Exchange Commission regarding the above described accounting practices, PolyMedica issued a press release announcing that it may be forced to restate results for the fiscal years 2002 and 2003 and that any restatement could significantly reduce the Company's reported earnings for the class period. News of the possible restatement resulted in a significant fall in the trading price of the Company's common stock. For more details, contact Leigh Lasky by Phone: 212-907-0800 or by E-mail: lasky@laskyrifkind.com READ-RITE CORPORATION: Schiffrin & Barroway Lodges Lawsuit in CA ---------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock of Read-Rite Corporation (NasdaqNM:RDRT) (Other OTC:RDRTQ.PK) from October 30, 2001 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 between October 30, 2001 and June 6, 2003, thereby artificially inflating the price of Read- Rite common stock. Read-Rite is one of the three major independent suppliers of magnetic recording heads for the hard disk drive (HDD) and tape drive markets. The Company also designs, manufactures and markets magnetic recording heads as head gimbal assemblies (HGAs) and incorporate multiple head gimbal assemblies into head stack assemblies (HSAs). Throughout the Class Period, and as alleged in the Complaint, defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's financial performance. These statements contained in the Company's press releases and SEC filings were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company's financial results were in violation of generally accepted accounting principles (GAAP), namely, the Company's 40 GB/platter inventory was overstated by $16.7 million; the Company's Philippine real estate holdings were overstated by roughly $6.8 million; and the Company's second quarter fiscal year 2002 loss was grossly understated; (2) that the Company needed to restructure the Company's operations and the associated charges would cost the Company in excess of $20 million causing earnings shortfalls in future quarters; (3) that the Company was experiencing massive technical problems associated with the Company's 40GB/per platter programs. Morever, the Company was experiencing these problems well before January 2002 and beyond April 2002 when defendants claimed such problems were fixed; (4) that the Company was underfunded and could not complete the production of its 80GB programs; (5) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (6) that the Company's estimates, projections, and opinions were lacking in any reasonable basis when made. After the close of the Class Period, the Company announced, on June 17, 2003, that it would file for bankruptcy. For more details, contact Marc A. Topaz or Stuart L. Berman by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E- mail: info@sbclasslaw.com READ-RITE CORPORATION: Charles Piven Files Securities Suit in CA ---------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Read-Rite Corporation (Other OTC:RDRTQ.PK) between October 30, 2001 and June 6, 2003, inclusive. The case is pending in the United States District Court for the Northern District of California against certain of Read-Rite's officers. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com SINGING MACHINE: Lasky & Rifkind Launches Securities Suit in FL --------------------------------------------------------------- Lasky & Rifkind, Ltd. initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of persons who purchased or otherwise acquired the securities of The Singing Machine Company, Inc. (AMEX:SMD) between August 9, 2001 and June 27, 2003, inclusive. The lawsuit has been filed against the Company and certain of its officers. The complaint alleges that throughout the class period, the Company issued a series of material misrepresentations to the market that overstated the Company's financial performance following its emergence from bankruptcy in 1998. The complaint alleges that the financial statements issued by the Company during the Class Period, were materially false and misleading because in the statements the Company overstated its net income. On June 27, 2003, the Company announced that it would restate its fiscal 2002 financial statements and possibly fiscal 2001 financial statements to increase accrual for taxes. The Company also announced that the restatement would have the effect of reducing the Company's reported net income for fiscal 2002 and possibly fiscal 2001. News of the restatement caused the trading price of The Singing Machine Company's shares to fall significantly. For more details, contact Leigh Lasky by Phone: (212) 907-0800 or by E-mail: lasky@laskyrifkind.com ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. The Asbestos Defendant Profiles is backed by an online database created to respond to custom searches. Go to http://litigationdatasource.com/asbestos_defendant_profiles.html ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2003. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *