/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/030805.mbx C L A S S A C T I O N R E P O R T E R Tuesday, August 5, 2003, Vol. 5, No. 153 Headlines AMERICAN SKANDIA: NY Court Dismisses Securities Fraud Lawsuit AMERITRADE INC.: NE High Court Reinstates Consumers' Fraud Suit CANADA: 3T B.C. Residents In Path Of Forest Wildfire Evacuated CAPRICIOUS CHEESE: Recalls Cheese For Listeria Contamination CATALINA MARKETING: Shareholders Launch Securities Suits in FL CATHOLIC CHURCH: KY Archdiocese Agrees To Settle Sex Abuse Suit DNA TESTING: Evidence In Serial Killer Case Not Hindered by Suit EAGLE DISTRIBUTORS: Recalls Chocolates For Undeclared Peanuts EASTWELL TRADING: Recalls Fruit Candy for Undeclared Sulfites FLOWERS FOODS: Recalls Bread Products For Containing Metal Mesh HIROSHIMA VICTIMS: Survivors Ask Government To Speed Process HOTEL ALCUDIA: Lawsuit Possible After Cryptosporidium Outbreak MCI/WORLDCOM: GSA Suspends New Business Over Access Fee Charges MCI/WORLDCOM: BoycottMCI Head Hails Suspension of GSA Contracts NEVIS CAPITAL: SEC Institutes Civil Action For Securities Fraud RED-LIGHT CAMERAS: Drivers Sue To Oppose Red Light Camera System SCHWARTZ APPETIZING: Recalls Herring For Listeria Contamination TOBACCO LITIGATION: Jury Rules in Philip Morris' Favor XEROX CORPORATION: IL Court Upholds $300M Pension Lawsuit Award New Securities Fraud Cases ADMINISTAFF INC.: Federman & Sherwood Lodges TX Securities Suit CATALINA MARKETING: Milberg Weiss Lodges Securities Suit in FL CREE INC.: Abbey Gardy Launches Securities Fraud Suit in M.D. NC INTERMUNE INC.: Wechsler Harwood Lodges Securities Lawsuit in CA QUEST SOFTWARE: Schiffrin & Barroway Launches CA Securities Suit QUEST SOFTWARE: Glancy & Binkow Files Securities Suit in C.D. CA QUEST SOFTWARE: Cauley Geller Lodges Securities Suit in C.D. CA READ-RITE CORPORATION: Glancy & Binkow Lodges CA Securities Suit SINGING MACHINE: Seeger Weiss Lodges Securities Suit in S.D. FL SOLUTIA INC.: Brodsky & Smith Lodges Securities Suit in N.D. CA STELLENT INC.: Shalov Stone Lodges Securities Suit in MN Court STELLENT INC.: Brian Felgoise Lodges Securities Suit in MN Court STELLENT INC.: Charles Piven Lodges Securities Suit in MN Court STELLENT INC.: Cauley Geller Launches Securities Lawsuit in MN ********* AMERICAN SKANDIA: NY Court Dismisses Securities Fraud Lawsuit ------------------------------------------------------------- United States District Court for the Southern District of New York Senior Judge Milton Pollack dismissed with prejudice the class action filed against American Skandia Life Assurance Corporation as a result of the agreement with Prudential Financial, Inc. concerning the sale of American Skandia. The lawsuit purported to represent a class of investors who during the period December 1997 to October 2000 purchased American Skandia variable annuity products for the purpose of funding a "qualified" (i.e., tax- deferred) retirement account. The plaintiffs alleged that the prospectuses for these variable annuity products contained material misstatements and omissions concerning the suitability of such products as funding vehicles for tax qualified accounts in violation of US securities laws. Judge Pollack concluded that the plaintiff's claims were without legal merit. In dismissing the plaintiffs' claims, Judge Pollack wrote that, "the disclosures in the Prospectuses, taken in context, conclusively disprove the materiality of the alleged omissions and are thus fatal to the Plaintiffs' claims." Once the court enters its judgment, plaintiffs will have thirty calendar days to appeal the decision. "Judge Pollack's conclusions are in agreement with Skandia's previously stated belief that the claims raised by the lawsuit were without merit" said Jan-Mikael Bexhed, Skandia's General Counsel. For further information, please contact Jan-Mikael Bexhed, EVP and General Counsel by Phone: 46-8-788-3722 or contact Harry Vos, Head of Investor Relations by Phone: +46-8-788-3643 AMERITRADE INC.: NE High Court Reinstates Consumers' Fraud Suit --------------------------------------------------------------- The Nebraska Supreme Court reinstated a class action against online brokerage Ameritrade, Inc., charging the Company with failing to fix problems that stopped its customers from making trades online, the Associated Press reports. The suit alleges that the glitches were caused by "antiquated and inadequate systems and an insufficient number of employees" to help customers make trades. The suit further alleged that the Company spent more money on recruiting new subscribers than fixing the glitches. Last year, Douglas County District Judge Joseph Troia's dismissed the suit because the plaintiffs failed to submit evidence to prove their allegations. He noted that three plaintiffs complained about problems with one trade each and the fourth complained of problems with three of 149 trades over an eight-month period. "That amounts to approximately six complaints out of 400 trades and a satisfactory rating of 98.5 percent," Judge Troia wrote, AP reports. "One could argue that six miscues out of more than 400 trades does not indicate negligence." State Supreme Court Judge Lindsey Miller-Lerman ruled that Judge Troia was wrong to dismiss the action. She said the record "does not demonstrate Ameritrade's entitlement to judgment." Ameritrade's attorneys did not immediately return telephone calls seeking comment, AP reports. CANADA: 3T B.C. Residents In Path Of Forest Wildfire Evacuated -------------------------------------------------------------- The British Columbia government declared a state of emergency recently and evacuated about 3,000 people, forced from their homes in the Thompson-Nicola regional district as a fast-moving forest fire expanded across 25 square miles, the Associated Press Newswires reports. About 2,700 residents of the region in the Rocky Mountains were still on alert to evacuate quickly if necessary. Premier Gordon Campbell said his announcement of a state of emergency was made not only to help crews fighting in the afflicted areas to perform their tasks in a coordinated manner, but to encourage the residents being evacuated that the government was responsible for their necessary evacuation. The McClure Lake fire, 22 miles north of Kamloops, has forced the evacuation of McLure and Louis Creek residents, consumed three structures and forced the closure of a portion of the highway to Kamloops, the government said in a news release. In an early evacuation last week, more than 100 people from the mining town of Hillside were evacuated from their homes. CAPRICIOUS CHEESE: Recalls Cheese For Listeria Contamination ------------------------------------------------------------ Capricious Cheese Co. of Eureka, CA is recalling 19 wheels of Capricious Washed Curd Cheese because it has the potential to be contaminated with Listeria monocytogenes, an organism that 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. Eleven wheels of Capricious Cheese were distributed in California, in retail stores in the San Francisco Bay area and, during June, in Farmer's Markets in San Francisco, Davis, and Arcata. Capricious Washed Curd Cheese comes in 7-8 pound wheels. There is an identifying green stamp of 01/28/03 on the side and bottom of the cheese. However, since these wheels were sold in slices, there are no identifying characteristics. There have been no reports of illness to date. The recall was the result of a routine sampling by the FDA. One of two cheeses from the 1/28/02 batch was contaminated by the bacteria. The other tested negative. It is believed the contamination was on the rind. The company has ceased distribution while they, the FDA, and the CA Department of Food & Agriculture continue their investigation as to what caused the problem. For more details, contact the Company's owner, Ginger Olsen by Phone: (707) 442-3209. CATALINA MARKETING: Shareholders Launch Securities Suits in FL -------------------------------------------------------------- Catalina Marketing Corporation, certain of its current and former officers of the company and its Catalina Health Resource business unit, faces several securities class actions in the United States District Court for the Middle District of Florida alleging violations of federal securities laws. The plaintiffs allege that the defendants made positive statements concerning the company's expectations about growth in its revenues and earnings and the demand that existed for the company's services, and that the defendants engaged in improper revenue recognition. The lawsuits allege that these improper acts took place beginning in early calendar year 2002. Plaintiffs allege these statements and actions were misleading and seek unspecified damages. Catalina Marketing believes the claims are meritless and will defend against them vigorously. For further information, contact Diana L. Myers, Executive Counsel, Legal Affairs by Phone: (727) 579-5012. CATHOLIC CHURCH: KY Archdiocese Agrees To Settle Sex Abuse Suit --------------------------------------------------------------- In Jefferson County Circuit Court a hearing was held recently in which the Archdiocese of Louisville agreed to pay 243 victims $25.7 million over child sex abuse committed by certain members of the Catholic clergy, The Atlanta Journal-Constitution reports. William McMurry represented 214 of the victims and negotiated the class action settlement. Some of the victims were upset either at the size of the settlement - they did not think it crippled the archdiocese enough - or they were upset at Mr. McMurry's 40 percent contingency fee, which is not an uncommon fee, however, for such difficult-to-win cases. The judge signed an order approving both the settlement and the fee for Mr. McMurry. If the settlement fee is divided up equally - and that is still to be determined - each victim will receive about $60,000, after Mr. McMurry's fees, which total more than $10 million. Mr. McMurry delivered the settlement in 14 months and put together a resolution of the matter that is being felt far beyond this midsized Southern town of Louisville, Kentucky, in which reside 200,000 Catholics on the banks of the Ohio River. Jeffrey Anderson, a Minneapolis-based lawyer who since the 1980s has litigated more than 500 sex abuse cases against the Catholic Church in many states, said he had never before seen one lawyer take on so many cases in so short a period. "It's had a powerful impact, not just on the (Louisville) archdiocese, but on bishops across the country. The ripple effect is enormous," he said. The first case against the Archdiocese of Louisville walked into Mr. McMurry's office on April 16, 2002, in the person of Michael Turner, a construction company owner. Mr. Turner had read a story two days earlier in The Louisville Courier-Journal about a priest forced to retire because of sex abuse allegations filed by a niece. He was the same priest who had molested Mr. Turner when he was in the eighth grade. Mr. McMurry told Mr. Turner he was not sure there was a case because of the statute of limitations, but he would look into it. He gave Mr. Turner his cell phone number and said call him any time. Mr. Turner filed his suit three days later under his own name. Louisville is the only archdiocese in which every plaintiff sued by name rather than John or Jane Doe. Mr. McMurry said, "It was important for everybody's name to be out there, to have their credibility and reputation in front of the community of victims." The people started coming; within two months, 100 more lawsuits were filed. Mr. McMurry held a news conference after each batch of suits, which inspired more victims to come forward. Every client had his cellphone number. Mr. McMurry was the first person to whom many had ever told their story; he was as much therapist to his clients as he was lawyer. However, Mr. McMurry worried that the cases, which dated from the '50s to the '90s, would be dismissed because the statute of limitations had expired, as had happened to similar lawsuits in Boston and New York. The archdiocese nevertheless foresaw years of litigation, according to Brian Reynolds, chancellor and chief administrative officer of the archdiocese. Mr. McMurry, therefore, joined the 243 plaintiffs as a class to make his move for settlement, and the two sides agreed to mediation. Mr. McMurry's opening bid was $150 million. The church, without litigation insurance, offered $5 million. And the final settlement inched forward to $25.7 million, reached on June 10 of this year. The amount is more than half of the archdiocese's unrestricted funds. The archdiocese also agreed from then on to refer to the plaintiffs as "victims," rather than "alleged victims." In anticipation of the settlement, the archdiocese in April reduced its $9 million annual budget by $2 million and laid off 34 employees. Additional cuts of about $1 million are expected, said Mr. Reynolds. It is still unclear how deeply those cuts will affect the archdiocese's far-flung charitable and social service programs, which range from food banks to English classes for immigrants. Mr. Reynolds said he expected the affects to be "substantial." "The church has to earn people's trust back," said Mr. Reynolds. However, he added, "I am convinced change is under way and we will not go backwards." Many victims are not convinced. There is a petition for the removal of Archbishop Thomas Kelly, in office since 1982, who victims believe had knowledge of some abuses and did not take sufficient action. The victims also do not trust the archdiocese to monitor its own recently instituted safeguards, including the programs to educate staff and students about inappropriate behavior. DNA TESTING: Evidence In Serial Killer Case Not Hindered by Suit ---------------------------------------------------------------- A class action against Louisiana's DNA collection law will not affect use of genetic evidence against Louisiana's serial killing suspect, the Associated Press Newswires reports. The class action has been filed in federal court and challenges the state's law providing for collecting DNA samples from people accused of violent or sexual crimes. The lawsuit claims the law is too vague and broad, giving police an open call to get DNA samples without a conviction. The lawsuit seeks to be a class action for all men swabbed against their will and asks the court to order the return of all DNA samples taken during the swabbing. Attorney General Richard Ieyoub is named as a defendant in the class action brought by Floyd Wagster Jr., who was picked up for a DNA sample during the serial killer investigation. Mr. Wagster is asking the US District Court in Baton Rouge to overturn Louisiana's DNA laws; get rid of its DNA database and pay Mr. Floyd an unspecified amount in damages. Mr. Wagster's lawsuit claims that sheriff's deputies violated his civil rights by picking him up for questioning without any reason. The lawsuit further claims that Sheriff's Maj. Bud Connor intimidated and abused him to get a DNA sample, and threatened to leak his name to reporters unless he agreed. Sheriff Elmer Litchfield and Louisiana State Police Superintendent Terry Landry also are named as defendants in the lawsuit. Police say DNA evidence taken from Derrick Todd Lee links him to the slayings of six women. The attorney general's office and Zachary police had Mr. Lee's DNA checked out for a missing person's case. A judge signed a subpoena forcing Mr. Lee to submit his DNA sample. Since Mr. Lee's DNA swabbing was not caused by his arrest on a violent or sexual crime charge, the fate of the law relating to collection of DNA in relation to such crimes will not affect Mr. Lee's case. EAGLE DISTRIBUTORS: Recalls Chocolates For Undeclared Peanuts ------------------------------------------------------------- Eagle Distributors Inc. is recalling "Viola Filled Chocolates" because they may contain undeclared peanuts. People who have allergies to peanuts run the risk of serious or life-threatening allergic reactions if they consume this product. The recalled "Viola Filled Chocolates," packaged in 8 oz. clear plastic bags with UPC Code 7485432033, were sold nationwide. They are a product of Poland. The recall was initiated after it was discovered through routine sampling by New York State Department of Agriculture and Markets food inspectors that the peanut-containing product was distributed in packaging that did not reveal the presence of peanuts. No illnesses have been reported to date in connection with this problem. For more details, contact the Company by Phone: 1-773-775-5777. EASTWELL TRADING: Recalls Fruit Candy for Undeclared Sulfites ------------------------------------------------------------- Eastwell Trading Corporation is recalling Dried Fruit Candy- Sweet Potato because it may contain undeclared sulfites. People with severe sensitivity to sulfites run the risk of serious or life-threatening allergic reaction if they consume this product. The recalled Dried Fruit Candy-Sweet Potato is packaged in 6- ounce clear plastic bags with UPC #6911749383313. The product was sold nationwide. The recall was initiated after routine sampling by New York State Department of Agriculture and Markets Food Inspectors revealed that the product containing sulfites was distributed in packages that did not declare the presence of sulfites. The consumption of 10 milligrams of sulfites per serving has been reported to elicit severe reactions in some asthmatics. Anaphylactic shock could occur in certain sulfite sensitive individuals upon ingesting 10 milligrams or more of sulfites. Analysis of the Dried Fruit Candy-Sweet Potato revealed that it contains 18.75 milligrams per serving. No illnesses have been reported to date in connection with this problem. For more details, contact the Company by Phone: 718-714-5689. FLOWERS FOODS: Recalls Bread Products For Containing Metal Mesh --------------------------------------------------------------- Flowers Foods is voluntarily recalling the products listed below with the following Best By Date Codes: Aug 2nd 155 0227; Aug 3rd 155 0237; Aug 5th 155 0257; Aug 6th 155 0267; and Aug 8th 155 0267 (raisin and banana bread only): (1) Broad Street Bakery Garlic Breadsticks, (2) Broad Street Bakery 16oz Jew Rye Bread, (3) Broad Street Bakery 16oz Pumpernickel Bread, (4) Broad Street Bakery 16oz Sourdough Bread, (5) Cobblestone Mill Garlic Breadsticks, (6) Cobblestone Mill 16oz Cinnamon Raisin Bread, (7) Cobblestone Mill Banana Bread, (8) Cobblestone Mill Jew Rye 16oz Bread, (9) Cobblestone Mill 16oz Pumpernickel Bread, (10) Cobblestone Mill 16 oz Sourdough Bread, (11) Cobblestone Mill 24oz 9 Grain Bread, (12) Cobblestone Mill 24oz Wheatberry Bread, (13) Country Farm Raisin Bread, (14) Flowers 32oz Pumpernickel Bread, (15) Flowers 32oz Sourdough Bread, (16) Flowers 42oz Club White Bread, (17) Flowers 42oz Club Wheat Bread, (18) Flowers 6" Hot Dog Buns, (19) Winn Dixie Raisin Bread These products, in packages with the codes noted, may contain small pieces of metal mesh screen. The affected product is limited to the following states -- Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Tennessee, North Carolina, Virginia, and West Virginia -- as well as to the following areas: parts of Kentucky, Texas, New Mexico, South Carolina; eastern Oklahoma, extreme southeastern Kansas, southern Missouri, and southern Ohio. Upon discovering the situation with the product, Flowers immediately removed the product with the codes noted above from the market. The company's findings and corrective actions have been reported to the Food and Drug Administration (FDA). Grocers have been advised by Flowers Foods, Inc. to withdraw product for sale and hold it for pickup by the company. For more details, contact the Company by Phone: 1-800-660-3590. Caller must enter code 1925# and then extension 294# when prompted. HIROSHIMA VICTIMS: Survivors Ask Government To Speed Process ------------------------------------------------------------ Survivors of the 1945 US atomic bombings of Hiroshima and Nagasaki are urging the Japanese government to speed up the official recognition process for the victims, the Yomiuri Shimbun reports. So far, the government has recognized 318 people as radiation illness victims in Hiroshima and 128 people as victims in Nagasaki. It was learned that forty of these victims died of their illness, while awaiting certification. At least nine people waited for more than a year after applying for recognition, others have waited three years or more. An official of the Heath, Labor and Welfare Ministry's Health Service Bureau told the Shimbun the screening panel could only convene once a month at the most because of the schedules of the 17 panel members. A group of survivors, whose applications were denied, launched a class action at eight district courts against the government, to try to have the status denial overturned. The government has yet to answer their complaints. Of 92 people who were denied certification, 66 of them answered that they wanted to participate in the class action suits, while only 20 people said they did not, a survey by the Shimbun states. HOTEL ALCUDIA: Possible Lawsuit After Cryptosporidium Outbreak -------------------------------------------------------------- The Mytravel Group faces a possible class action after dozens of vacationers got infected by cryptosporidium, a water-borne parasite, after using an infected swimming pool at the Hotel Alcudia Pins, which is used exclusively by Airtours, part of the MyTravel group, travel.telegraph reports. People complained of sickness, diarrhea and stomach cramps. A Mytravel spokeswoman said that there have been 15 positive cases, but the figure was likely to rise. Among the victims were Clare Flaszynski, her husband Mark, and sons Joshua, seven, and Daniel, five, from Wakefield in West Yorkshire. They were on a two-week Airtours self-catering package at the hotel from July 2. "There was newspaper in the pool, which stayed there for three days, along with plasters and bits of gravel," Mrs. Flaszynksi told travel.telegraph. MyTravel has closed the pool until August 7 so that tests can be carried out and it can be disinfected. The Company also agreed to compensate holidaymakers �40 each for loss of pool facilities. Any payments to sick holidaymakers would be dealt with individually, the MyTravel spokeswoman said. "Our understanding is that hygiene standards at the pool were up to scratch," she said. "We put the health and safety of our customers first and, once alerted to the possibility of cryptosporidium, we took immediate action." Two years ago, the Alcudia Pins also experienced a cryptosporidium outbreak, which caused JMC, the tour operator to make undisclosed compensation payments to those affected and an interim compensation payment of �1.2 million to 680 tourists who contracted salmonella at the hotel. Brenda Wall of Holiday Travelwatch, which campaigns on behalf of holidaymakers, told travel.telegraph, "We've had hundreds of calls about this and the number of people who have gone down with the illness is going up all the time." Two firms of solicitors - Alexander Harris in Manchester and Irwin Mitchell in Birmingham - are planning to file a class action on behalf of various holidaymakers. 220 disgruntled people have signed up--some never ill--but who claim their holiday was ruined because they were unable to use the pool. MCI/WORLDCOM: GSA Suspends New Business Over Access Fee Charges --------------------------------------------------------------- The United States General Services Administration suspended federal business with telecommunications firm MCI, after rival telecommunications companies charged that MCI defrauded them of hundreds of millions of dollars in access fees, the Associated Press reports. MCI is formerly known as WorldCom, which was driven into bankruptcy by an $11 billion accounting scandal in 2002, where it was accused of falsifying balance sheets to hide expenses and inflate earnings. Worldcom is set to emerge from Chapter 11 bankruptcy protection, and has taken the name of MCI in an effort to clean up its image. Recently, rival carriers such as AT&T charged that the Company disguised long-distance calls as local calls and diverted some calls to Canada to avoid paying special-access fees. The Justice Department has started its probe of the Company, which has said its competitors were only trying to throw up roadblocks to its emergence from bankruptcy. MCI's government contracts are estimated to be worth more than $1 billion each year. Several critics have accused the government with being too lenient with the Company by continuing to award it work, including hiring MCI to build a wireless phone network in Iraq. However, a GSA official started considering last month whether the Company met standards required of all government contractors. "This official determined that MCI WorldCom lacks the necessary internal controls and business ethics," the GSA told AP. "It is important that all companies and individuals doing business with the federal government be ethical and responsible," GSA Administrator Stephen Perry told AP. He said the agency acted to "protect the interests of the government and taxpayers." A GSA suspension usually lasts for less than a year, in which time, it will decide whether to impose a more serious penalty called debarment, which could exclude the company from government business for a period typically not longer than three years, the Associated Press reports. However, the suspension doesn't affect existing government contracts. MCI said it would not oppose the GSA decision. "We are in the process of rebuilding our ethics program and understand that there is still more work to do," MCI Chairman Michael Capellas told AP. He said the company will work to regain approval for new government business by addressing the GSA's concerns. Meanwhile, the Company is also facing mounting pressure in Congress. Last week, Rep. Billy Tauzin, R-La., chairman of the House Energy and Commerce Committee, asked the Federal Communications Commission to explain how it is investigating MCI competitors' allegations. He wants the agency to turn over documents related to that probe within two weeks. "A gross violation of regulations governing the origination and termination of long-distance calls undermines the basic telecommunications system of the United States," Rep. Tauzin wrote in a letter to FCC Chairman Michael Powell. "If true, these allegations represent an unprecedented violation of FCC rules." MCI/WORLDCOM: BoycottMCI Head Hails Suspension of GSA Contracts --------------------------------------------------------------- Mitch Marcus, founder of the group BoycottMCI.com lauded the General Services Administration's decision to bar all future contracts with beleaguered telecommunications firm MCI/Worldcom, saying it is a step in the right direction. In a statement, Mr. Marcus said, "The latest round of disclosures about the deep-running culture of corruption at MCI/WorldCom made it impossible for even the General Services Administration (GSA) to continue ignoring the obvious: A company of MCI/WorldCom's low repute should not be subsidized with federal tax dollars." He added that it was his hope that the decision will be made permanent - as with Enron and Arthur Andersen - so that the federal government sends a clear message that crime does not pay. He, however, said the deal might be a "pre-negotiated one . under which MCI can wiggle out of it in as little as a month. MCI/WorldCom is what it is and the GSA must hold steadfast on the suspension and debarment. It is imperative that the US House and Senate keep up the heat on the GSA to assure that today's action, which was long overdue, becomes permanent. Mr. Marcus again reiterated his calls for a boycott of the Company, saying, "At the same time, BoycottMCI.com urges individual consumers and corporate Americans to recognize that the GSA action is a clear signal that they, too, should dump MCI/WorldCom. This is a company that has systematically and ruthlessly victimized consumers, investors, its competitors, and, most recently, federal taxpayers. The handwriting is on the wall: If you are using MCI/WorldCom, the time has come to cut the cord and to start using the services of a telecommunications company that is not synonymous with the worst corporate abuses of the 1990s." For more details, contact Mitch Marcus by Phone: 443-604-2785 or by E-mail: mitch@boycottworldcom.com NEVIS CAPITAL: SEC Institutes Civil Action For Securities Fraud --------------------------------------------------------------- The United States Securities and Exchange Commission instituted public administrative and cease-and-desist proceedings against Nevis Capital Management, LLC), a registered investment adviser, its President, David R. Wilmerding, III and its Executive Vice- President, Jon C. Baker, all of the Baltimore, Maryland area, for alleged violations of the antifraud and reporting provisions of the federal securities laws relating to their initial public offering (IPO) allocation practices and disclosures. This matter, which arose from a routine regulatory examination, involves fraudulent and deceptive conduct by Nevis Capital, Mr. Wilmerding and Mr. Baker that served to benefit themselves, to the detriment of investors. In the SEC's order, the Division of Enforcement alleges that between December 1998 and December 1999, Nevis Capital, Mr. Wilmerding and Mr. Baker inequitably allocated IPO shares to only two of their approximately 105 clients, the Snowdon Limited Partnership and the Nevis Fund. Nevis Capital and Mr. Wilmerding further falsely stated in their January 28, 1999, Form ADV amendment that all clients would be treated equally, on a pro rata basis, when, in fact, they had an undisclosed policy to allocate IPOs only to Snowdon and the Nevis Fund. The Division alleges that the IPO shares had a significant impact on the performance of Snowdon and the Nevis Fund, which also benefited Nevis Capital, Mr. Wilmerding and Mr. Baker, at the expense of their other clients. In total, Nevis Capital received approximately $2,600,000 in fees as result of its allocation of IPOs to Snowdon and the Nevis Fund. The Division further alleges that the Nevis Fund's exceptional cumulative returns of 90.1%, 154.6% and 286.5 % as of May 31, 1999, Sept. 30, 1999, and Dec. 31, 1999, would have been -5%, - 3.6% and 41% without first-day IPO gains. The Division alleges that between December 1998 and July 2000, Nevis Capital, MMr. Wilmerding and Mr. Baker misrepresented the reasons for the Nevis Fund's performance in its prospectus, annual and semi- annual reports and advertisements, claiming that the Fund's returns were attributable to their long-term investment strategy and failing to disclose that the Nevis Fund's returns were primarily attributable to IPO investments. Based upon the foregoing conduct, the Division alleges that Nevis Capital, Mr. Wilmerding and Mr. Baker willfully violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 34(b) of the Investment Company Act of 1940; Nevis Capital willfully violated and Mr. Wilmerding and Mr. Baker willfully aided and abetted and caused Nevis Capital's violations of Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 (Advisers Act) and Rule 206(4)- 1(a)(5) thereunder; and Nevis Capital and Mr. Wilmerding willfully violated Section 207 of the Advisers Act. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Nevis Capital, Mr. Wilmerding and Mr. Baker an opportunity to respond to the allegations against them, and to determine whether any remedial action should be ordered, and disgorgement and/or penalties imposed, by the SEC. RED-LIGHT CAMERAS: Drivers Sue To Oppose Red Light Camera System ---------------------------------------------------------------- Hundreds of San Francisco drivers have filed a criminal case and a handful of civil cases around the state, to oppose the city's red light camera system used to catch drivers who run red lights, law.com reports. The city views the cameras as handy tools in nabbing red-light runners. In 2002, the city issued about 17,400 citations for running red lights, about 9,300 of them thanks to red-light camera photos, city officials told law.com. San Francisco assesses a $341 fine for each ticket, and violators get a moving violation point on their driver's license. Attorneys for the drivers asked San Francisco Commissioner Paul Slavit to dismiss the citations against their clients, arguing that photos taken by the unmanned cameras were inadmissible as evidence, based on three primary grounds: (1) the photos are hearsay because they can't be properly authenticated; (2) the red-light camera system - which includes a camera, sensors and computer - doesn't meet the Kelly-Frye standard, California's test for determining the admissibility of scientific evidence; and (3) the city's red-light camera system isn't operated by a government entity, as required under the state Vehicle Code, but by a privately contracted company. Commissioner Slavit says his decision will partly determine how lawsuits against the system are handled. He added that the outcome of five pending civil suits across the state, including one in San Francisco, could have an even broader impact. "The civil cases are the ones that would have the most far-reaching effect," Mr. Slavit said. In San Diego, lawyers were able to persuade a superior court judge to throw out nearly 300 red-light camera tickets in 2001 by using the third reason why photos can't be used as evidence, said Arthur Tait, a partner with San Diego-based Tait, Creamer & Wong who worked on that case. City attorneys however, said that the city is complying with the Vehicle Code. Even if the city weren't in full compliance, the brief says, that should only affect the weight given to the photos, not render them inadmissible. They also reiterated that the photos can be properly authenticated and that the technology behind the red-light cameras is reliable and accepted in the scientific community. "It is unreasonable for a defendant, assuming the registered owner is the driver captured on film, to suggest that the camera is taking a photograph of someone else or someone else's car," the brief says, law.com reports. Diana Hammons, spokeswoman for San Francisco's Department of Parking and Traffic, told law.com most cities' red-light programs include such fees. "It encourages the companies to maintain the systems and keep them operational," she said. The city attorney's office is also defending red-light cameras in a civil suit brought by a woman who pleaded guilty to running a red light, then later sued the city, state and private companies involved in the cameras' operations. The case, Buys v. City and County of San Francisco, 400669, was coordinated earlier this month with four other civil cases in Los Angeles and San Diego counties. Two are class actions with more than 275,000 potential members, plaintiffs' attorneys in those cases said. SCHWARTZ APPETIZING: Recalls Herring For Listeria Contamination --------------------------------------------------------------- Schwartz Appetizing, Inc. is recalling 7 oz. containers of SCHMALTZ HERRING, CODE 08/06, because it has the potential to be contaminated with Listeria monocytogenes, an organism that 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. The 7 oz. containers of SCHMALTZ HERRING were sold to retail customers in Monroe and Brooklyn, New York, and through the firm's own retail store. The product was sold in plastic containers with a stick-on label bearing code date "08/06" (on the bottom of the container) and UPC number 7 87434 22222 1. No illnesses have been reported to date. The recall was the result of routine sampling by the US Food and Drug Administration (FDA) which revealed that the finished product contained the bacteria. The company has ceased the production and distribution of the product as the FDA and the company continue their investigation as to what caused the problem. For more details, contact the Company by Phone: 1-718-851-1011. TOBACCO LITIGATION: Jury Rules in Philip Morris' Favor ------------------------------------------------------ A Los Angeles jury ruled that Philip Morris USA did not mislead a former smoker about the dangers of smoking, Reuters reports. Smoker Fredric Reller filed the suit after he discovered he had inoperable lung cancer. The suit also named as defendant Brown & Williamson Tobacco Corporation, the company that makes Pall Mall cigarettes. Brown & Williamson was later dismissed from the case several weeks before it began on June 11. The trial began last month, with Philip Morris arguing that Reller, 64, was already addicted to nicotine by the time he started smoking the company's cigarettes. The jury ruled that while smoking was a "substantial factor" in causing Mr. Reller's illness, the company had not misled him about how smoking affected his health. The jury deadlocked on one fraud count against the tobacco company after six days of deliberation. The case was closely watched because Mr. Reller's attorney, Michael Piuze, has won two record-setting verdicts against Philip Morris. In his two previous tobacco trials in Los Angeles, Mr. Piuze set records for punitive damages for individual smokers, Reuters reports. In 2001, a jury awarded $3 billion to Richard Boeken and last year, another panel awarded a staggering $28 billion to Betty Bullock. Both were reduced by judges who found them excessive in light of the much smaller compensatory damages awarded to the plaintiffs. Both verdicts are being appealed. Mr. Piuze said he would seek a retrial on the one fraud count on which the jury had been unable to reach a conclusion and with which he could mount another try for damages. "I'm kind of perplexed about the jury's finding that Philip Morris never made a false statement about smoking," he told Reuters after the verdicts. "You have to ask the jury what that's about." "The jury heard clear and compelling evidence that Mr. Reller was well aware of the risks of smoking and was responsible for the smoking decisions he made," William Ohlemeyer, Philip Morris' associate general counsel told Reuters. "The jury's decision makes common sense and legal sense." XEROX CORPORATION: IL Court Upholds $300M Pension Lawsuit Award --------------------------------------------------------------- The Seventh Circuit Court of Appeals in Illinois upheld a lower court's ruling, ordering Xerox Corporation to pay its former employees about $300 million in damages for underpaid retirement benefits, Reuters reports. The suit was originally filed in 200 against the Company's pension plan, The Retirement Income Guarantee Plan, on behalf of as many as 25,000 employees, challenging the methodology used to establish interest rates. In 2001, a lower court found that some lump sum distributions were improperly calculated, and ordered the pension plan to pay some $300 million on a pretax basis to the retirees. The Company appealed the ruling. The appeals court said it modified the original ruling related to the rate by which some of the pension assets were calculated. "As the court of appeals has made its ruling, Xerox is disappointed in the ruling and intends to seek a rehearing," Xerox spokesman Bill McKee told Reuters. The company can now ask the court's three-judge panel to rehear the case, or request that the entire Seventh Circuit Court listen to the arguments again. Mr. McKee said he did not know when any rehearing would take place, should it occur. The ruling comes after an Illinois district court on Thursday ruled that International Business Machines Corp.'s IBM.N defined contribution pension plan was unfair to older employees. IBM said it would appeal the ruling. New Securities Fraud Cases ADMINISTAFF INC.: Federman & Sherwood Lodges TX Securities Suit --------------------------------------------------------------- Federman & Sherwood initiated a securities class action lawsuit against Administaff, Inc. (NYSE: ASF) in the United States District Court for the Southern District of Texas, alleging violations of federal securities laws. The suit charges the Company and certain of its current and former officers and directors with improperly recognizing revenue in the financial statements included in certain public reports of the Company. For more details, contact William B. Federman by Mail: 120 N. Robinson, Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560 by Fax: (405) 239-2112 or by E-mail: wfederman@aol.com CATALINA MARKETING: Milberg Weiss Lodges Securities Suit in FL -------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP initiated a securities class action on behalf of purchasers of the securities of Catalina Marketing Corporation (NASD:POS) between January 17, 2002 and June 30, 2003, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. The action, numbered 03-CV-1582 is pending in the United States District Court for the Middle District of Florida, Tampa Division, against the Company and: (1) Daniel D. Granger, (2) Michael G. Bechtol, (3) David M. Diamond, and (4) Christopher W. Wolf 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 numerous positive statements concerning the Company's ability to grow its revenues and earnings at a rapid pace and the strong demand that existed for the Company's products, especially at its Health Resource division. Throughout the Class Period, defendants issued highly positive statements regarding in an effort to create the impression that Catalina' revenues were growing and the Company was well positioned to generate strong profitability. In response, Catalina stock traded at over $36 per share during April 2002. In particular, defendants repeatedly emphasized the success of the Company's Health Resource division, which defendants touted as a strong revenue contributor. On April 13, 2003, defendants partially disclosed material problems at Health Resource, including the fact that Catalina would miss revenue and earnings targets because of "disappointing" results for the Health Resource division. Prior to revealing this information, defendants sold over $10,000,000 worth of their Catalina holdings. The magnitude of the problems within Health Resource again came partially to light on June 30, 2003. After the close of trading, defendants revealed that the Company would not be able to timely file its Annual Report on Form 10-K, because of certain "revenue recognition issues" at Health Resource. As a result of defendants improper revenue recognition, the press release revealed that it will have to restate financial results for fiscal 2003. As a result, Catalina stock dropped to slightly over $16 per share on unusually large trading volumes - - a far cry from the stock's Class Period high of over $39. On July 15, 2003, defendants revealed that the accounting issues were not limited to solely Health Resource. In a July 15, 2003 press release, defendants announced that "(t)he company is now also reviewing certain other revenue recognition timing matters in its core domestic business as well as with Catalina Health Resources." For more details, contact Steven G. Schulman by Mail: One Pennsylvania Plaza, 49th fl., New York, NY, 10119-0165 by Phone: (800) 320-5081 or by E-mail: catalina@milbergNY.com CREE INC.: Abbey Gardy Launches Securities Fraud Suit in M.D. NC ---------------------------------------------------------------- Abbey Gardy, LLP initiated a securities class action on behalf of all persons who purchased securities of Cree Inc. (NasdaqNM:CREE) between January 14, 2000 and June 13, 2003 inclusive in the United States District Court for the Middle District of North Carolina. 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 Cree securities. For more details, contact Nancy Kaboolian by Phone: (212) 889-3700 or 800-889-3701 or by E-mail: nkaboolian@abbeygardy.com INTERMUNE INC.: Wechsler Harwood Lodges Securities Lawsuit in CA ---------------------------------------------------------------- Wechsler Harwood LLP initiated a securities class action on behalf of persons or entities who purchased or otherwise acquired the securities of InterMune, Inc. (NasdaqNM:ITMN) between October 24, 2002 and June 11, 2003, inclusive, in the United States District Court for the Northern District of California against the Company and certain of its officers. The Complaint alleges that defendants made false and misleading statements concerning Actimmune, a leading product of the Company. In particular, the complaint alleges that defendants were aware that: (1) the number of patients anticipated by InterMune treated with Actimmune, related throughout the Class Period as a precise and valid means by which to record the level of strength of the demand for Actimmune, was ``inherently'' unreliable, inconsistent, and lacking in any accountable basis for presentation; (2) the Company's sales and marketing efforts had experienced disruptions and problems, including a great amount of turnover and lack of suitable training; (3) beginning with at least the fourth quarter of fiscal 2002, the Company was materially understating the inventory level its distributors held, of which millions of dollars worth was held in excess, and materially overstating its revenues; (4) InterMune's internal controls and systems were inadequate and insufficient; and (5) based on the foregoing, InterMune lacked reasonable basis to issue its financial and operational projections. On June 11, 2003, the Company announced that it was lowering its 2003 revenue guidance figures and decreasing projected earnings from Actimmune. The Company also announced it had overstated the number of patients using Actimmune and that, contrary to its earlier representations, demand for Actimmune from doctors was flat. Following these disclosures the InterMune's stock price dropped to $16.74, a 33% one-day decline. For more details, contact Craig Lowther by Mail: 488 Madison Avenue, 8th Floor, New York, New York 10022 by Phone: (877) 935-7400 by E-mail: clowther@whesq.com or visit the Website: http://www.barrack.com/ QUEST SOFTWARE: Schiffrin & Barroway Launches CA Securities Suit ---------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Central District of California, Southern Division, on behalf of all securities purchasers of Quest Software, Inc. (NasdaqNM:QSFT) from April 30, 2002 through July 23, 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 numerous positive statements throughout the class period regarding the Company's financial performance. As alleged in the complaint, these statements were each materially false and misleading when made as they failed to disclose and misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (1) that the Company had materially overstated its earnings, revenues, net income, and earnings per share; (2) that the Company deferred revenue and fixed asset balances of foreign subsidiaries in violation of Generally Accepted Accounting Principles; (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 value of the Company's net income and financial results were materially overstated at all relevant times. On July 23, 2003, after the close of the markets, the Company announced that it has discovered a computational error in its internal consolidation system that had caused deferred revenue and fixed asset balances of foreign subsidiaries to be inaccurately reported. News of this shocked the market. On July 24, 2003, shares of Quest Software fell 18.07 percent to close at $8.84 per share. 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 QUEST SOFTWARE: Glancy & Binkow Files Securities Suit 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 Quest Software, Inc. (NasdaqNM:QSFT) between April 30, 2002 and July 23, 2003, inclusive. The complaint charges Quest and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' dissemination of materially false and misleading statements concerning Quest's revenue and earnings caused the Company's stock price to become artificially inflated, inflicting damages on investors. Quest is an independent software vendor for the primary database management systems and packaged and custom applications used by large and medium-sized enterprises. The complaint alleges that, during the class period, defendants failed to disclose or misrepresented that: (1) the Company had materially overstated its earnings, revenues, net income and earnings per share; (2) the Company deferred revenue and fixed asset balances of foreign subsidiaries in violation of GAAP; (3) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) as a result, the value of the Company's net income and financial results were materially overstated at all relevant times. On July 23, 2003, the Company filed a Form 8-K with the SEC wherein Quest announced that it has discovered a computational error in its internal consolidation system that has caused deferred revenue and fixed asset balances of foreign subsidiaries to be inaccurately reported. For more details, contact Lionel Z. Glancy by Mail: Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by Phone: (310) 201-9161 or (888) 773-9224 by E-mail: info@glancylaw.com or visit the firm's Website: http://www.glancylaw.com QUEST SOFTWARE: Cauley Geller Lodges Securities Suit in C.D. CA --------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the Central District of California on behalf of purchasers of Quest Software, Inc. (Nasdaq: QSFT) publicly traded securities during the period between April 30, 2002 and July 23, 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 numerous positive statements throughout the class period regarding the Company's financial performance. As alleged in the complaint, these statements were each materially false and misleading when made as they failed to disclose and misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (1) that the Company had materially overstated its earnings, revenues, net income, and earnings per share; (2) that the Company deferred revenue and fixed asset balances of foreign subsidiaries in violation of Generally Accepted Accounting Principles; (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 value of the Company's net income and financial results were materially overstated at all relevant times. On July 23, 2003, after the close of the markets, the Company announced that it has discovered a computational error in its internal consolidation system that had caused deferred revenue and fixed asset balances of foreign subsidiaries to be inaccurately reported. News of this shocked the market. On July 24, 2003, shares of Quest Software fell 18.07 percent to close at $8.84 per share. For more details, contact Samuel H. Rudman, David A. Rosenfeld, Jackie Addison or Heather Gann by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com READ-RITE CORPORATION: Glancy & Binkow Lodges CA Securities Suit ---------------------------------------------------------------- Glancy & Binkow LLP initiated a securities class action in the United States District Court for the Northern District of California on behalf all persons who purchased securities of Read-Rite Corporation (Other OTC:RDRTQ.PK) between October 30, 2001 and June 17, 2003, inclusive. The complaint charges Read-Rite and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' dissemination of materially false and misleading statements concerning Read-Rite's financial condition caused the Company's stock price to become artificially inflated, inflicting damages on investors. Read- Rite designs, manufactures and markets magnetic reading devices such as hard disk drives. The complaint alleges that, during the class period, defendants failed to disclose or misrepresented that: (1) Read-Rite's 40 GB/platter inventory was overstated by $16.7 million; (2) the Company needed to restructure its operations, and the associated charges would cost the Company more than $20 million, causing earnings shortfalls in future quarters; (3) The Company's second quarter Fiscal Year 2003 loss was grossly understated; (4) Read-Rite was experiencing massive technical problems associated with the Company's 40GB/per platter programs, and was experiencing these problems well before January 2002 and beyond April 2002 when defendants claimed such problems were fixed; and (5) Read-Rite was underfunded, did not maintain sufficient staffing and could not complete the production of its 80-gigabyte product despite representations that it could. On June 17, 2003, Read-Rite formally announced that it had filed for bankruptcy protection seeking to liquidate its assets under Chapter 7. For more details, contact Michael Goldberg by Mail: Glancy & Binkow LLP, 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. SINGING MACHINE: Seeger Weiss Lodges Securities Suit in S.D. FL --------------------------------------------------------------- Seeger Weiss LLP initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of all persons who purchased the publicly traded securities of The Singing Machine Company, Inc. (AMEX:SMD), from August 9, 2001 to July 14, 2003, inclusive. The Singing Machine is engaged in the production and distribution of consumer-oriented karaoke machines. The complaint alleges that defendants Edward Steele, John F. Klecha, April Green, the Company and Salberg & Company (the Company's auditors), violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between August 9, 2001 and May 20, 2003, thereby artificially inflating the price of the Company's securities. The Complaint alleges that the Company emerged from bankruptcy in 1998, and issued a series of press release announcing ``record'' net income to create the impression that the Company had profitability emerged from bankruptcy and had successfully completed its corporate turnaround. In response to the Company's announcement, the stock price climbed to $26 per share in March 2002. On June 27, 2003, the Company announced that it was restating its 2002 financial results and may even restate its 2001 results because its net income for those years was overstated and that the Company was delaying the filing of its Annual Report on Form 10-K for the fiscal year that ended March 31, 2003. In response, the Company's stock fell 33% in price with enormous trading volume. As a result of the defendants' misrepresentations, SMC investors have sustained tremendous losses. On July 14, 2003, the Company announced that it was restating its financial results for fiscal years 2001 and 2002 and stated that its auditors had expressed ``substantial doubt'' about the Company's ability to continue as a going concern. In response, the Company stock fell 19% percent to close at $3.03 per share on July 15, 2003. As now revealed, during the Class Period the defendants issued false and misleading financial statements and press releases concerning the Company's financial results. The Company's financial statements during the Class Period, all of which were implicitly or explicitly represented to have been prepared in conformity with generally accepted accounting principles (GAAP), were materially false and misleading because the defendants had caused the Company to materially overstate its net income in its publicly issued financial statements. As a result, the Company's shareholders have sustained tremendous losses. For more details, contact Stephen A. Weiss, David R. Buchanan, or Eric T. Chaffin by Phone: 212-584-0700 or 877-539-4125 or by E-mail: sweiss@seegerweiss.com or dbuchanan@seegerweiss.com or echaffin@seegerweiss.com SOLUTIA INC.: Brodsky & Smith Lodges Securities Suit in N.D. CA --------------------------------------------------------------- Brodsky & Smith, LLC initiated a securities class action on behalf of shareholders who purchased the common stock and other securities of Solutia, Inc. (NYSE:SOI), between December 16, 1998 and October 10, 2002 inclusive. The class action was filed against the Company and certain of its officers and directors in the United States District Court for the Northern District of California. The complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market during the class period, thereby artificially inflating the price of Solutia securities. Specifically, during the class period, the defendants caused the Company's stock to trade at artificially inflated levels through their control over Flexsys, a chemical supplier in which the Company had a 50% interest, by: (1) agreeing to charge prices at certain levels and to fix, increase, or maintain prices of rubber chemicals sold in the US; (2) by selling rubber chemicals at the agreed upon prices; and (3) by inflating their profits via the above acts For more details, contact Marc L. Ackerman, or Evan J. Smith by Mail: Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by Phone: 877-LEGAL-90 or by E-mail: clients@brodsky-smith.com STELLENT INC.: Shalov Stone Lodges Securities Suit in MN Court -------------------------------------------------------------- Shalov Stone & Bonner LLP initiated a securities class action on behalf of investors who purchased the stock of Stellent Inc. (NASDAQ: STEL) in the period from October 2, 2001 through April 1, 2002. The lawsuit was filed against the Company and certain of its officers and directors in the United States District Court in Minnesota. The complaint alleges that the defendants issued fraudulently misleading financial statements that overstated Stellent's financial condition during the relevant period. According to the complaint, as a result of this fraudulent conduct, investors have suffered substantial losses. For more details, contact Ralph M. Stone by Mail: 485 Seventh Avenue, Suite 1000, New York, New York 10018, by Phone: (212) 239-4340 or by E-mail: rstone@lawssb.com STELLENT INC.: Brian Felgoise Lodges Securities Suit in MN Court ---------------------------------------------------------------- The Law Offices of Brian M. Felgoise, PC commenced a securities class action on behalf of shareholders who acquired Stellent, Inc. (NasdaqNM:STEL) securities between October 2, 2001 and April 1, 2002, inclusive, in the United States District Court for the District of Minnesota. The suit names as defendants the company and certain key officers and directors. The action charges that defendants violated the 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 Brian M. Felgoise by Mail: 261 Old York Road, Suite 423, Jenkintown, Pennsylvania, 19046, by Phone: 215-896-1900 or by E-mail: FelgoiseLaw@aol.com STELLENT INC.: Charles Piven Lodges Securities Suit in MN Court --------------------------------------------------------------- The Law Offices Of Charles J. Piven, PA initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Stellent, Inc. (NasdaqNM:STEL) between October 2, 2001 and April 1, 2002, inclusive. The case is pending in the United States District Court for the District of Minnesota. 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 STELLENT INC.: Cauley Geller Launches Securities Lawsuit in MN -------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the District of Minnesota, on behalf of purchasers of Stellent, Inc. (Nasdaq: STEL) publicly traded securities during the period between October 2, 2001 and April 1, 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 materially false and misleading statements concerning the Company's revenue growth and its financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that significant amounts of the Company's sales were to affiliates that were financed by the Company itself; and (2) that the Company's customer base was beginning to defer purchases and the expected revenue growth which the Company touted in press releases would no longer occur. When these facts were belatedly disclosed to the market, the price of Stellent common stock declined precipitously. For more details, contact Samuel H. Rudman, David A. Rosenfeld, Jackie Addison or Heather Gann by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com ********* 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. 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