/raid1/www/Hosts/bankrupt/CAR_Public/040121.mbx
C L A S S A C T I O N R E P O R T E R
Wednesday, January 21, 2004, Vol. 6, No. 14
Headlines
ADECCO SA: Shareholders Lodge Securities Fraud Suits in E.D. NY
AUSTRALIA: Camden, Campbelltown Face Possible Suits Over Deaths
BLUEBERRY GROWERS: Negotiations in Maine Antitrust Suit Resume
CANADA: Government To Appeal Same-Sex Pension Benefits Ruling
FLORIDA: Audit Says Prisoners Given Good Mental Health Treatment
JAPAN AIRLINES: Cancels 120 Flights Because Of Engine Cracks
MARTHA STEWART: To Face Imclone Insider Trading Trial This Week
MONSANTO COMPANY: Judge Denies Request To Recuse Himself In Case
NEW HAVEN: Sued For Planned Conversion To Stockholder-Owned Bank
NORTHWEST AIRLINES: Privacy Group To Sue Over Passenger Records
TEXAS: Kids Win Ruling On Access To Federally Funded Checkups
TOBACCO LITIGATION: Class Certification Sought For Canadian Suit
TOBACCO LITIGATION: NY Faces Seneca Suit Over `Net Tobacco Ban
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
* Online Teleconferences
New Securities Fraud Cases
ADECCO SA: Charles Piven Commences Securities Lawsuit in E.D. NY
ADECCO SA: Schiffrin & Barroway Files Securities Suit in E.D. NY
BIOVAIL CORPORATION: Marc Henzel Commences Securities Suit in NY
CAREER EDUCATION: Kirby McInerney Launches Securities Suit in IL
CAREER EDUCATION: Marc Henzel Lodges Securities Suit in N.D. IL
DYNACQ HEALTHCARE: Emerson Poynter Files Securities Suit in TX
MERCK & CO.: Milberg Weiss Launches Securities Suit in E.D. LA
MICROMUSE INC.: Marc Henzel Launches Securities Suit in N.D. CA
NETWORK ENGINES: Marc Henzel Lodges Securities Suit in MA Court
PARMALAT FINANZIARIA: Marc Henzel Lodges Securities Suit in NY
PMA CAPITAL: Marc Henzel Lodges Securities Fraud Suit in E.D. PA
RYLAND GROUP: Marc Henzel Lodges Securities Lawsuit in C.D. CA
TITAN PHARMACEUTICALS: Marc Henzel Lodges Securities Suit in CA
TOPAZ GROUP: Marc Henzel Commences Securities Fraud Suit in WA
VAN DER MOOLEN: Marc Henzel Lodges Securities Fraud Suit in NY
VIRBAC CORPORATION: Marc Henzel Files Securities Suit in N.D. TX
WATSON PHARMACEUTICALS: Marc Henzel Lodges Securities Suit in CA
WEBACCESS: Cisneros Schendzielos Lodges Securities Lawsuit in CO
*********
ADECCO SA: Shareholders Lodge Securities Fraud Suits in E.D. NY
---------------------------------------------------------------
Adecco S.A., the world's largest staffing company faces three
securities class actions filed in the United States District
Court for the Eastern District of New York on behalf of holders
of the Company's stock between March 16,2000 and January 9,2004,
Dow Jones News Wires reports. The suits have been filed by:
(1) Glancy & Binkow LLP, based in Los Angeles, California,
(2) Schiffrin & Barroway LLP, based in Cynwyd, near
Philadelphia, and
(3) Cauley Geller Bowman & Rudman LLP, with offices in Boca
Raton, Florida
In similar press statements, the law firms said they are
charging the Company with violations of several sections of the
Securities Exchange Act of 1934. The suits also name as
defendants:
(1) Chairman John Bowmer,
(2) Chief Executive Jerome Caille, and
(3) Chief Financial Officer Felix Weber
The defendants allegedly issued a series of material
misrepresentations to the market concerning the company's
financial results, Schiffrin & Barroway said in a press
statement. "(The defendants) failed to disclose ... that the
company lacked adequate internal controls and was therefore
unable to ascertain the true financial condition of the
company," the law firm continued.
"Because of this the company's net income was materially
overstated in violation of Generally Accepted Accounting
Principals, or U.S. GAAP, and the value of the company's net
income and financial results were materially overstated at all
relevant times," it added.
Last Monday, the company revealed that it had instituted an
internal investigation into accounting and controlling
weaknesses detected in the U.S. and other countries. The news
caused the Company's stock to fall by 35% this week. Two company
officials, including Mr. Weber, have left the company.
AUSTRALIA: Camden, Campbelltown Face Possible Suits Over Deaths
---------------------------------------------------------------
The Camden and Campbelltown hospitals in Australia face
negligence suits to be filed by families of patients who died
while under the hospitals' care, smh.com.au reports.
The Australian Health Minister has also announced that he
expects even more deaths to be reported to the State
Government's special commission of inquiry. At the same time,
the Australian Medical Association and the Australian Salaried
Medical Officers Federation warned their members at the
hospitals to seek legal advice in preparation for the
investigation into the deaths.
Marsdens Solicitors, a high-profile Campbelltown legal firm,
confirmed last night it had been approached by as many as four
affected families to pursue financial compensation. The firm
has interviewed other families this week and is sifting through
a range of new complaints from former patients who say they
received less than optimum care at the two hospitals.
The Health Minister, Morris Iemma, said yesterday that the
Government expected more deaths to be referred to the coroner
and the special commission of inquiry - and more families to
come forward regarding the care of patients at the two
hospitals, smh.com.au reports. "I'd be surprised if there
weren't more to come forward," he said. "We want people to come
forward. That is why we set up the special commission."
It was revealed yesterday that the deaths of three more
Campbelltown patients - Glenys Bonning, 27, Tracey Brunia, 34,
and Elizabeth Mansell, 55 - were under investigation by the
special commission of inquiry headed by Bret Walker, SC. The
acting head of South Western Sydney Area Health Service, Deborah
Picone, said Mrs Brunia's case had already been given to the NSW
Coroner, while the other two deaths were under review,
smh.com.au reports.
BLUEBERRY GROWERS: Negotiations in Maine Antitrust Suit Resume
--------------------------------------------------------------
Negotiations between blueberry growers, processors and their
attorneys for a settlement of the antitrust class action filed
against the growers, the Bangor Daily News reports. The suit
names as defendants:
(1) Allen's Blueberry Freezer of Ellsworth,
(2) Jasper Wyman & Son of Milbridge, and
(3) Cherryfield Foods, Inc. of Cherryfield
The suit alleges that the defendants conspired to keep low the
field prices they paid to Maine's 500 growers from 1996 to 1999.
The growers believed the processors shortchanged them, to get
higher profits.
First filed in February 2000, the lawsuit included a fourth
defendant, Merrill's Blueberry Farm of Ellsworth. Merrill's was
dropped from the suit shortly before it began in Knox County
Superior Court. Merrill's and the three other companies process
approximately 95 percent of all wild blueberries grown in Maine.
Last month, the court found the defendants guilty of antitrust
charges. Justice Joseph Jabar ordered the defendants to pay the
growers $56 million in damages, and the processors have appealed
the decision to the Maine Supreme Judicial Court. They are
waiting for the case to be scheduled.
The parties in the suit started negotiations last week, but that
has yielded little ground in resolving the suit, which will
greatly affect the way the wild blueberry industry, with Maine
as the world leader for sales, conducts its business.
"Maine has this huge cloud over its head with the current
situation," David Bell, executive director of the Wild Blueberry
Commission, said last week, according to Bangor Daily News.
"This is just really too bad, because everyone has worked so
hard in this industry.
"After terrible marketing conditions the last 21/2 years, our
sense late last summer and into the fall was that things were
turning around," Mr. Bell continued. "But now everyone is
talking about this verdict. No one is even talking about the
fact that things are reasonable again in the marketplace."
CANADA: Government To Appeal Same-Sex Pension Benefits Ruling
-------------------------------------------------------------
Canada's federal government intends to appeal a court ruling
granting retroactive pension benefits to gays and lesbians whose
partners died after April 1985 when the Charter of Rights and
Freedoms took effect, The Globe and Mail reports.
Four hundred people participated in the class action against the
province, seeking retroactive pension benefits for survivors
whose partners died after April 1985. Quebec was the only
province not represented in the suit because it operates a
separate pension plan.
Ontario Superior Court Justice Ellen Macdonald later ruled that
the province had discriminated against survivors of same-sex
couples by denying them benefits under the Canada Pension Plan
if their partner died before January 1,1998. She also made
benefits retroactive to April 17,1985 and entitled plaintiffs to
interest on payments retroactive to February 1,1992.
The ruling has been labeled a "monumental decision" for many
homosexuals, and it is estimated that some 1,500 gays and
lesbians across Canada are eligible for survivor benefits at a
cost of $400-million to the federal government.
The federal government imposed the 1998 cut-off date when it
introduced Bill C-23, granting several rights to same-sex
couples in 2000. The Crown had contended that providing
benefits retroactive to 1998 was generous, and in step with the
evolving legal status of same-sex relationships.
Justice Macdonald dismissed that argument: "I can find nothing
generous in codifying a mechanism for discrimination that has
been in existence since at least the advent of the charter."
FLORIDA: Audit Says Prisoners Given Good Mental Health Treatment
----------------------------------------------------------------
A general audit of the Charlotte Correctional Institution (CCI)
stated that the private company that provides medical services
at the institution offers good mental health treatment to
prisoners there, the HeraldTribune reports.
The state Correctional Medical Authority's survey said that
Wexford Health Sources provides an adequate, full range of
services that include group and individual treatment, case
management, psychiatric consultation, psychotropic medications
and inpatient care.
The state Department of Corrections has entered sweeping policy
changes after a class action, styled "Osterback v. Moore," was
filed in 1997 in the United States District Court in Miami,
Florida. The suit alleged that prisoners were handled in "close
management," restrictive confinement for inmates demonstrating
behavioral problems.
Department officials have said that in a resource-consolidation
move, CCI became one of three males-only prisons in the state
dedicated to housing close management inmates, who, for their
own security and the safety of the prison, cannot live with the
general prison population, the HeraldTribune reports. "These
are the bad boys. These are the inmates that can't get along.
They are the bad and the mad ones, as we say," Steve Epple, a
DOC health services manager, told the Herald Tribune.
He added that because of close management (CM), the inmates
become more of a security risk, as they spend more time locked
in their cells. Some CM inmates develop and suffer mental
illnesses such as schizophrenia and borderline personality
disorders. Mental health experts now screen inmates who are
being considered for CM confinement to determine the inmate's
"vulnerability" to mental health problems, according to the
Florida Corrections Commission.
In mid-October the Correctional Medical Authority survey team
reviewed 35 inmate records and interviewed 10 prisoners at CCI.
A team of seven public health professionals who are not state
employees completed the three-day review. According to the
report, "documentation was thorough and coordination of
diagnosis and treatment was evident." The report also said that
it appears inmates are progressing through the close management
system, The Herald Tribune reports.
"Our whole goal is to get them out of there, to help them deal
with their problems and get them back to the compound," Mr.
Epple said.
"We expect changes in the (close management) program to
continue. They are not in place just until the resolution of the
lawsuit," DOC spokesman Sterling Ivey said. He also told the
Herald Tribune that the DOC is "pleased" with the CMA's report,
because it "confirms our compliance" with the requirements
spelled out in the Osterback agreement.
JAPAN AIRLINES: Cancels 120 Flights Because Of Engine Cracks
------------------------------------------------------------
The Japan Air System (JAS), a unit of Japan Airlines System
Corporation, cancelled 120 domestic flights on Monday after it
found cracks in engines made by Pratt & Whitney, a spokesman for
the Japan Airlines (JAL) group said, Reuters reports.
The Company revealed that it discovered cracks in six engines
used in five of the six planes it had inspected. The engines
were models JT8D-217A and JT8D-217C and the planes were DC-9-81s
and DC-9-87s. Engine vibrations on a plane just before take-off
on January 6 and a case of engine trouble the day after prompted
investigation on the planes, which have two engines, were made
by McDonnell Douglas, now part of Boeing Co.
Checks at Pratt & Whitney's New Zealand factory showed there
were cracks in the engines' compressor parts, the JAL spokesman
said. Japanese aviation authorities have ordered JAS to check
the remaining 19 of the 25 DC-9-81 and DC-9-87 planes it owns.
The inspections are due to end by Wednesday.
Pratt & Whitney was not immediately available for comment,
Reuters reports. An industry source said no other Japanese
airlines use the planes powered by the same engines, but an
estimated 2,100 engines of the same models are in use globally.
MARTHA STEWART: To Face Imclone Insider Trading Trial This Week
---------------------------------------------------------------
Domestic maven Martha Stewart will face trial this week for
insider trading relating to her ImClone Systems, Inc. stock
sale, which occurred right before the stock's price started
plummeting, the Associated Press reports.
Ms. Stewart faces five counts including obstruction of justice
and securities fraud, so far, the most famous celebrity to face
trial since the crackdown on white-collar corruption began two
years ago. She allegedly saved about $51,000 by selling Inclone
stock on December 27, 2001 - just before a negative government
report about a highly touted ImClone cancer drug sent the stock
plummeting.
Ms. Stewart has asserted that she and her broker, Peter
Bacanovic of Merrill Lynch & Co., had a standing agreement to
sell when the stock fell to $60. Mr. Bacanovic faces five
counts of his own and will stand trial with her. Prosecutors,
however, assert that ImClone founder Sam Waksal, a personal
friend of Ms. Stewart, informed her of the impending
developments.
Ms. Stewart will face potential jurors, who will also answer
questions from lawyers trying to pick a jury. Opening arguments
will begin once 12 jurors are seated - possibly as early as this
week, AP reports.
Former Merrill assistant Doug Faneuil, 28, is expected to
testify that the government's account of the stock sale is
accurate - and that he was plied with gifts in exchange for
initially supporting Ms. Stewart's version. Mr. Faneuil changed
his story in 2002, pleaded guilty to a misdemeanor and agreed to
cooperate with the government. The evidence includes a
telephone message log of a call from Mr. Bacanovic that Ms.
Stewart temporarily altered, as well as a worksheet that the
government says Mr. Bacanovic altered to support the story of a
standing agreement to sell at $60.
Legal experts say the outcome is nearly impossible to predict,
and will come down to which version of the stock sale convinces
jurors - the style maven's story or the government's account,
backed by a former brokerage assistant who will be its star
witness, AP reports. "It's going to be a classic battle of
witnesses," George Newhouse, who prosecuted obstruction cases
for the Justice Department before going into private practice,
told AP. "The stakes have risen. The government's credibility
is on the line."
Legal experts say it will come down to whom the jury believes,
and why. "People will not dislike a defendant simply because
she has a lot of money, but if she uses that as power to cheat
the system, then jurors get angry," Arthur Patterson, a senior
vice president of jury consulting firm DecisionQuest, told AP.
U.S. District Judge Miriam Goldman Cedarbaum has barred the
media and the public from watching the juror-questioning
process, saying she is worried prospective jurors may be less
candid if they know reporters are present. Instead, a
transcript of each day's questioning will be released the
following day, AP reports.
MONSANTO COMPANY: Judge Denies Request To Recuse Himself In Case
----------------------------------------------------------------
Federal Judge Rodney Sippel in St. Louis, Missouri refused to
recuse himself from a lawsuit charging Monsanto Co. of
conspiring with another company to fix prices of genetically
modified seeds, the Knight-Ridder / Tribune Business News
reports.
Judge Sippel was allegedly listed in court documents as a lawyer
for Monsanto in another lawsuit involving genetically modified
seed, before he became a judge. However, Judge Sippel said the
cases weren't similar and he didn't work on the earlier case.
"I never prepared anything. I never talked to anybody. I never
had any participation," the judge said in ruling from the bench.
Judge Sippel also expressed reservations about the timing of the
request, as it came after his refusal to grant the suit class
certification, as market conditions and seed prices varied
across the country - a ruling that could be seen as a setback
for the suit. He added that the plaintiffs' lawyers had the
public court filings with his name on them since 1999, before
the current case was filed.
Richard Lewis, a lawyer for the farmers, declined to comment,
the Tribune Business News reports. It was unclear whether
they'll appeal to the 8th U.S. Circuit Court of Appeals in St.
Louis, where they've already appealed Judge Sippel's ruling
denying class action status.
In arguments, Mr. Lewis said that the filings by Judge Sippel's
former law firm, Husch & Eppenberger LLC, had been in his
possession since 1999, but he realized the importance of Judge
Sippel's name on the document only in November. Mr. Lewis said
his recusal request was based on the judge's having been
Monsanto's "counsel of record in a case in federal court for
eight months." Stephen Rovak, a lawyer for Monsanto, took the
plaintiffs' lawyers to task for filing the request after having
the documents in their files "for about three or four years,"
the Tribune Business News states.
Phillip Bartz, another lawyer for Monsanto, argued that the two
cases were unrelated. The earlier case was a dispute in which
Pioneer Hi-Bred International Inc., a seed company, sued
Monsanto for allegedly failing to honor an agreement in which
Pioneer paid Monsanto for a license to use its patented
technology for making genetically modified corn seed. "This case
is an antitrust case. It's not a patent-licensing case," Mr.
Bartz said.
NEW HAVEN: Sued For Planned Conversion To Stockholder-Owned Bank
----------------------------------------------------------------
The New Haven Savings Bank (NHSB) in Connecticut faces a class
action filed by its depositors over its proposed conversion from
a depositors-owned to a stockholders-owned bank, the Yale Daily
News reports. The suit seeks an injunction against the
conversion, and compensatory damages.
Much of the criticism has focused on the fact that the NHSB
Board of Directors consists of many high-ranking officials at
Yale-New Haven Hospital. NHSB CEO Peyton Patterson, is a board
member at Yale-New Haven. Joe Zaccagnino, President and CEO of
the hospital, serves on the NHSB board, as do Yale-New Haven
board members Julia McNamara, President of Albertus Magnus
College, and Nat Woodson, CEO of United Illuminating.
Yale-New Haven has also been accused of excessively aggressive
debt collection practices, including placing liens against
patients' homes. The hospital also allegedly failed to notify
patients about "free-bed funds," which can help patients with
medical expenses.
The Service Employees International Union District 1199, which
represents 140 workers at the hospital, has been very vocal in
its criticism. Its workers have been without contract since
late August, due to many failed negotiation attempts, and both
institutions have filed legal actions against one another for
various union-related issues, Yale Daily News reports.
Bill Meyerson, spokesman for SEIU, told the Daily News because
the leaders of the bank and the hospital are the same, the union
is involved to protect the interest of community members. "The
same group of individuals that are denying depositors a vote on
what happens to their bank -- denying them a right of the
profits and surpluses of the bank through this conversion plan -
- sit on the hospital board of trustees, and are making the
decisions about suing patients with inadequate insurance for the
so-called crime of being sick and uninsured," he said. "In that
sense, it's a related issue -- it's about the accountability of
a select powerful group who run vital institutions in this
community."
He added that the union supports the suit because many members
of NHSB also belong to the union. If a judge deems the case
worthy of class action, many union members will benefit. "Two
of the three lead plaintiffs are union members," he added. "The
union is helping out on this to protect the interest of our
members who also happen to be depositors at the bank."
"Despite our efforts to clarify that these plans involved
standard provisions and were subject to shareholder approval,
this seemed to be an emotional issue to some in the community,
and withdrawing them from our conversion application will
hopefully let all our constituencies see more clearly the merits
of the conversion itself," bank spokesperson Paul McCraven told
the Daily News.
Regarding the complaint filed by depositors, Mr. McCraven said
the bank has not yet reviewed legal material from the
depositors. "We really can't speculate on what the intentions
of the plaintiffs are," he said.
William Bloss, the attorney representing the plaintiffs, said it
may be weeks before a decision is made regarding the injunction,
and even longer before a court decides if the conversion itself
will be allowed. "We're going to ask for a hearing on a
preliminary injunction sometime in the next month or two," he
told the Daily News. "Regardless of what happens -- the larger
issue is still before the court: is this [conversion] going to
happen."
NORTHWEST AIRLINES: Privacy Group To Sue Over Passenger Records
---------------------------------------------------------------
The Electronic Privacy Information Center (EPIC) intends to file
a complaint against Northwest Airlines with the United States
Dpartment of Transportation, after the airline admitted to
sharing passenger information with NASA Ames Research Center
after the September 11,2001 terrorist attacks, Pioneer Press
reports.
EPIC charges that the act was an unfair and deceptive practice,
warranting investigation and possible sanctions. "The
compelling public interest in this case requires the Secretary
of Transportation to investigate NWA's practices," EPIC said in
its filing.
The group also intends to lodge a suit against NASA in the
United States District Court in California, because, according
to the organization, the space agency did not disclose enough
information in its response to freedom-of-information requests.
The airline industry has publicly declared that it would not
cooperate with developing a government passenger-screening
program because of concerns that they would infringe on customer
privacy. Northwest Airlines earlier asserted that the Company
"did not provide that type of information to anyone," but later
admitted turning over the information to NASA. In September,
JetBlue Airways said that it turned over passenger records to a
defense contractor and apologized to its customers for doing so,
yesterday's Class Action Reporter (January 20,2004) reported.
Meanwhile, a business travel group demanded an apology from the
airline. Kevin Mitchell, head of the Business Travel Coalition,
called the airline's handling of the issue "disingenuous."
"When you break someone's trust, an apology is the first step
back toward regaining it," Mr. Mitchell, whose group includes 51
Fortune 500 companies that spend a combined $750 million a year
on air travel, told Pioneer Press. "You just can't skip that
step and start being a good business partner and corporate
citizen."
The Company has asserted that it acted appropriately in
disclosing passenger information to NASA in 2001. The data went
to an arm of the space agency that works on aviation security
projects. The agency was hoping to develop a better way of
identifying potential terrorists among airline passengers. NASA
returned the customer data to Northwest in late September 2003,
the airline said.
Last September, New York based discount carrier JetBlue Airways
faced 16 class actions, after it disclosed that it shared
passenger information with a defense contractor to formulate a
New York-based discount carrier JetBlue Airways was hit with 16
new system to try to point out potential terrorists.
Northwest said Sunday night that CEO Richard Anderson did not
know the airline had provided passenger information for a U.S.
government air-security project when he was asked about the
subject September 23 after a St. Paul Rotary Club meeting, the
Pioneer Press reports. Mr. Anderson said Northwest would not
share information, as JetBlue had.
Mr. Anderson then learned on September 26 that Northwest's
security department had shared passenger data with NASA for a
secret security project initiated after the September 11, 2001,
terrorist attacks, Northwest says, Pioneer Press reports. But
the airline did not amend Anderson's statement or a similar
response from a company spokesman.
"Upon review of the facts, we determined that Mr. Anderson's
statement was still true," Northwest said Monday in a written
response to questions. "JetBlue worked with a vendor. Northwest
worked directly with NASA."
However, Northwest made misleading statements about its
information sharing and should have corrected them, David Sobel,
EPIC general counsel, told Pioneer Press. "Once he (Anderson)
became aware of the fact that his statement was inaccurate, he
had an obligation to Northwest passengers to set the record
straight," Mr. Sobel said. "This disclosure violated
Northwest's express assurance that passengers would have
'complete control' over information they provide the airline."
The airline asserted that it had a "duty to cooperate" with NASA
and that it did not violate its privacy policy because it
shared, but did not sell the information. The airline says it
provided "passenger name record data," but would not say what
that included or how many passenger records were provided.
Questioned about the prospects for a similar apology, Northwest
said it believes it was "appropriate" to provide data directly
to NASA. "In the immediate aftermath of September 11, 2001, the
federal government was searching for technological solutions to
improve aviation security and it was the responsibility of the
airline industry to cooperate with these efforts," the airline
said, according to Pioneer Press. "By providing the passenger
name record data directly to NASA, a federal agency with its own
strict privacy protections, Northwest acted appropriately and
consistent with its own privacy policy and all applicable
federal laws."
Northwest should simply apologize and put this controversy
behind it, Michael Fineman of San Francisco-based Fineman PR,
told Pioneer Press. His firm issues an annual list of the
nation's top-10 public relations blunders. "Take the blame," he
said. "Say you made a mistake and move on."
TEXAS: Kids Win Ruling On Access To Federally Funded Checkups
----------------------------------------------------------------
The United States Supreme Court ruled that Texas officials must
fulfill the terms of the 1996 settlement for a ten-year-old
class action on behalf of Texas' Medicaid-eligible children,
Knight-Ridder/Tribune Business News reports.
The court sided with San Antonio attorney Susan Zinn Wednesday
in her dispute with state authorities over whether Texas gives
more than 1 million poor children adequate access to federally
funded medical checkups. The court decision rejected state
official's contention that they couldn't be forced to comply
with the terms outlining programs that would help provide
immunizations, dental checkups and other medical services to the
state's roughly 1.6 million children eligible for Medicaid.
"Hopefully, (the ruling) means they'll be able to get access to
health care they need when they need it," Ms. Zinn told the
Tribune Businesss News.
San Antonio's state Representative Carlos Uresti, however,
labeled the ruling "a small victory for the children of Texas,"
as the case is expected to go through another round of legal
fighting before it takes effect. Others described the decision
as legally significant because it emphasizes a fundamental
principle: A deal is a deal and it's binding, especially when
signed by a judge, unless the circumstances or law change.
The Justices declared that states are no exception to the rule
and overruled a Fifth Circuit Court of Appeals order that would
have allowed Texas to ignore promises it made when it settled
the Medicaid lawsuit by entering into a court-approved deal
known as a consent decree.
"Had the 5th Circuit decision stood, it really would have
changed the way law is practiced in the United States," Erwin
Chemerinsky, a law professor at the University of Southern
California told the Tribune Business News. "No one would ever
settle a lawsuit against a state government, if a state could
make an agreement then break the agreement."
The ruling sets the stage for both sides to return to the 5th
Circuit. This time, they are expected to argue about whether
Senior U.S. District Judge William Wayne Justice read the
consent decree correctly in 2000 when he found that the state
violated the agreement. Texas officials previously have
described the judge's decision as an unconstitutional attempt to
micromanage state affairs. While the 5th Circuit agreed, Texas'
argument was less welcomed at a Supreme Court that is generally
very respectful of state authority.
Responding to Wednesday's decision, Ted Cruz, solicitor general
for Texas Attorney General Greg Abbott, issued a statement
saying officials were "disappointed" and assessing their
options, The Tribune Business News reports.
TOBACCO LITIGATION: Class Certification Sought For Canadian Suit
----------------------------------------------------------------
Attorney for four smokers in Toronto, Canada asked Ontario court
to grant class certification to a lawsuit filed against three
tobacco firms, charging them with conspiring to keep information
about the addictive qualities and health risks associated with
cigarettes from consumers, CTV News reports. The lawsuit cited
as defendants:
(1) Rothmans Benson & Hedges,
(2) Imperial Tobacco Canada, and
(3) JTI MacDonald
The suit charged the defendants with negligence,
misrepresentation, conspiracy, deception, suppression of
research, and product liability, and seeks $1 million each plus
damages and funding for the establishment and operation of
nicotine rehabilitation centers for addicted smokers.
Lawyer for the plaintiffs Kirk Baert said the case should be
allowed to proceed as a class action because evidence shows that
up until 1972, the tobacco companies failed to issue warnings
about the dangers of smoking, CTV News reports. "The defendants
sought to undermine measures to implement health warning
labels," he said. "They left generations of Canadians addicted
to a drug."
If the court classifies the case as class action, smokers in the
province of Ontario would have the option to sue tobacco
companies as a group for their addiction and smoking-related
illnesses.
TOBACCO LITIGATION: NY Faces Seneca Suit Over `Net Tobacco Ban
--------------------------------------------------------------
The state of New York faces a lawsuit filed by the Seneca Indian
Nation in the United States District Court in New York, over the
state's ban on Internet tobacco sales, the Associated Press
reports. The suit alleges the law is unconstitutional and
interferes with the nation's sovereignty. The suit is the third
legal challenge to the 2000 law enacted in June.
"If enforced, the (law) would severely restrict the manner in
which Native American retailers in New York have been able to
transact business for years, and would represent unlawful
interference with the sovereignty of the Nation," the Senecas'
attorneys said in court papers reviewed by The Buffalo News.
Attorney Paul Cambria said tobacco sellers are licensed by the
nation, and the money paid for those licenses fund services for
Senecas, a tribe of roughly 7,000 with two western New York
reservations, AP reports. Reservation businesses sell large
quantities of reduced-priced cigarettes because, unlike off-
reservation stores, they do not charge state sales tax. The
state has plans, however, to begin taxing gasoline and cigarette
sales to non-Indian customers on March 1.
The ban on Internet and mail-order sales of cigarettes was
passed as public health law, with lawyers saying the goal was to
limit children's access to cigarettes. Critics contend the true
purpose is to increase the state's tax revenues by forcing
people to buy cigarettes at brick-and-mortar stores within New
York state.
Others challenging the ban include the Online Tobacco Retailers
Association, or OLTRA, which filed suit along with a Seneca
Indian retailer, two out-of-state online sellers and two
disabled consumers last year. A second suit, by two Seneca
Indian business people, also is pending.
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
-------------------------------------------------
January 22-23, 2004
ENVIRONMENTAL AND TOXIC TORT MATTERS: ADVANCED CIVIL LITIGATION
ALI-ABA
Orlando (Walt Disney World)
Contact: 215-243-1614; 800-CLE-NEWS x1614
January 26-27, 2004
WATER CONTAMINATION CONFERENCE
Mealey Publications
The Ritz-Carlton Hotel, Pasadena CA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
January 29, 2004
OBESITY CLAIMS
American Conference Institute
Washington
Contact: 1-888-224-2480; http://www.americanconference.com
January 29-30, 2004
ADVANCED INSURANCE COVERAGE CONFERENCE: TOP 10 ISSUES
Mealey Publications
The Philadephia Marriott, PA
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
February 2-3, 2004
EMPLOYMENT PRACTICES LIABILITY INSURANCE
American Conference Institute
New York City
Contact: 1-888-224-2480; http://www.americanconference.com
February 9-10, 2004
REDUCING LEGAL RISK IN PROMOTING & CONDUCTING CLINICAL TRIALS
American Conference Institute
New York City
Contact: 1-888-224-2480; http://www.americanconference.com
February 18-20, 2004
CIVIL PRACTICE AND LITIGATION TECHNIQUES IN FEDERAL AND STATE
COURTS
ALI-ABA
Scottsdale, Arizona
Contact: 215-243-1614; 800-CLE-NEWS x1614
February 23-24, 2004
ASBESTOS LITIGATION 101
Mealey Publications
The Westin, Philadephia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
February 23-24, 2004
REINSURANCE 101
Mealey Publications
The Ritz-Carlton Boston Common, Boston
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 8-9, 2004
THE ROLE OF PARALEGALS IN MASS TORT LITIGATION
Mealey Publications
The Westin Chicago River North, Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 9, 2004
PATENT LITIGATION CONFERENCE
Mealey Publications
The Westin Chicago River North, Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 9, 2004
INSURANCE CLAIMS CONFERENCE
Mealey Publications
The Westin Chicago River North, Chicago
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 11-12, 2004
CONSUMER FINANCIAL SERVICES LITIGATION 2004
Practicing Law Institute
New York
Contact: 800-260-4pli; info@pli.edu
March 11-12, 2004
WELDING ROD LITIGATION CONFERENCE
Mealey Publications
Caesar's Palace, Las Vegas
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 18-19, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
The Fairmont, San Francisco, California
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
March 22-23, 2004
INSURANCE CLAIMS CONFERENCE
Mealey Publications
The Westin Kierland, Scottsdale, AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 22-23, 2004
EMERGING DRUGS AND DIVICES CONFERENCE FOR PLAINTIFF ATTORNEYS
Mealey Publications
The Westin Kierland, Scottsdale, AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 22-23, 2004
DEFENSE STRATEGIES IN PHARMACEUTICAL LITIGATION CONFERENCE
Mealey Publications
The Westin Kierland, Scottsdale, AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
March 22-23, 2004
INSURANCE 101 CONFERENCE
Mealey Publications
The Westin Hotel, Philadelphia
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
April 7-8, 2004
INSURANCE LAW 2004: UNDERSTANDING THE ABC'S
Practicing Law Institute
New York
Contact: 800-260-4pli; info@pli.edu
April 14-17, 2004
INSURANCE INSOLVENCY AND REINSURANCE ROUNDTABLE
Mealey Publications
The Scottsdale Princess, Scottsdale, AZ
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
April 15-16, 2004
OPINION AND EXPERT TESTIMONY IN FEDERAL AND STATE COURTS
ALI-ABA
New Orleans
Contact: 215-243-1614; 800-CLE-NEWS x1614
April 15-16, 2004
HANDLING CONSTRUCTION RISKS 2004: ALLOCATE NOW OR LITIGATE LATER
Practicing Law Institute
New York
Contact: 800-260-4pli; info@pli.edu
April 22-24, 2004
LITIGATING MEDICAL MALPRACTICE CLAIMS
ALI-ABA
New Orleans
Contact: 215-243-1614; 800-CLE-NEWS x1614
May 6-7, 2004
CONSUMER FINANCIAL SERVICES LITIGATION 2004
Practicing Law Institute
San Francisco
Contact: 800-260-4pli; info@pli.edu
May 6-7, 2004
CONFERENCE ON LIFE AND HEALTH INSURANCE LITIGATION
ALI-ABA
Washington, D.C. Tuition $995
Contact: 215-243-1614; 800-CLE-NEWS x1614
May 20-21, 2004
ACCOUNTANTS' LIABILITY
ALI-ABA
Chicago
Contact: 215-243-1614; 800-CLE-NEWS x1614
June 10 & 11, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Atlantis, Paradise Island, Bahamas
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
July 15-16, 2004
PRODUCTS LIABILITY
ALI-ABA
Chicago
Contact: 215-243-1614; 800-CLE-NEWS x1614
TBA
FAIR LABOR STANDARDS CONFERENCE
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
TBA
AIRLINE BANKRUPTCY LITIGATION CONFERENCE
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
TBA
FASTFOOD INDUSTRY LIABILITY CONFERENCE
Mealey Publications
Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
* Online Teleconferences
------------------------
January 06-30, 2004
DAMAGES IN TEXAS INSURANCE LITIGATION:
EVALUATING, PLEADING, AND PROVING
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
January 06-30, 2004
NBI PRESENTS "EMERGING ISSUES IN CALIFORNIA
INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
January 06-30, 2004
NBI PRESENTS "LITIGATING THE CLASS ACTION LAWSUIT IN FLORIDA
CLEOnline.Com
Contact: 512-778-5665; info@cleonline.com
May 6-7, 2004
CONSUMER FINANCIAL SERVICES LITIGATION 2004
Practicing Law Institute
Contact: 800-260-4pli; info@pli.edu
ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
EXPERT WITNESS ADMISSIBILITY IN MOLD CASES
LawCommerce.Com/Mealey's
Online Streaming Video
Contact: customerservice@lawcommerce.com
INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
PAXIL LITIGATION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECENT DEVELOPMENTS INVOLVING BAYCOL
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
RECOVERIES
Big Class Action
Contact: seminars@bigclassaction.com
SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
SHOULD I FILE A CLASS ACTION?
LawCommerce.Com / Law Education Institute
Contact: customerservice@lawcommerce.com
THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION
Online Streaming Video
LawCommerce.Com/Mealey's
Contact: customerservice@lawcommerce.com
TRYING AN ASBESTOS CASE
LawCommerce.Com
Contact: customerservice@lawcommerce.com
THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO
SALES
AND ADVERSTISING
American Bar Association
Contact: 800-285-2221; abacle@abanet.org
________________________________________________________________
The Meetings, Conferences and Seminars column appears in the
Class Action Reporter each Wednesday. Submissions via e-mail to
carconf@beard.com are encouraged.
New Securities Fraud Cases
ADECCO SA: Charles Piven Commences Securities Lawsuit in E.D. NY
----------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a securities
class action lawsuit in the United States District Court for the
Eastern District of New York, on behalf of shareholders who
purchased, converted, exchanged or otherwise acquired publicly
traded securities of Adecco SA between March 16, 2000 and
January 9, 2004, inclusive.
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 information, contact Charles J. Piven, P.A., 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.
ADECCO SA: Schiffrin & Barroway Files Securities Suit in E.D. NY
----------------------------------------------------------------
Schiffrin & Barroway, LLP, initiated a class action lawsuit in
the United States District Court for the Eastern District of New
York, on behalf of all purchasers of the publicly traded
securities of Adecco SA from March 16, 2000 through January 9,
2004, inclusive, against the Company and:
(1) John Bowmer,
(2) Jerome Caille, and
(3) Felix A. Weber
The lawsuit charges the Defendants with violations of Sections
10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule
10b-5 promulgated thereunder. Between March 16, 2000 and January
9, 2004, the defendants issued a series of material
misrepresentations to the market concerning the Company's
financial results.
More specifically, the defendants' statements during the Class
Period were materially false and misleading because they failed
to disclose and/or misrepresented the following adverse facts,
among others:
(i) that the Company lacked adequate internal controls and
was therefore unable to ascertain the true financial
condition of the Company;
(ii) more specifically, that its North American operations
had a material weaknesses in internal controls;
(iii) because of this the Company's net income was materially
overstated in violation of Generally Accepted
Accounting Principles; and
(iv) the value of the Company's net income and financial
results were materially overstated at all relevant
times.
On January 12, 2004, Adecco shocked the market when it announced
that it did not expect the audit of its consolidated financial
statements for the 2003 fiscal year, ended on December 28, 2003,
to be completed by Adecco's auditors, by the previously
announced release date of February 4, 2004. The Company
identified the following reasons for the delay:
(a) the identification of material weaknesses in internal
controls in the Company's North American operations of
Adecco Staffing;
(b) the resolution of possible accounting, control and
compliance issues in the Company's operations in
certain countries; and
(c) the completion of the Company's efforts to address
these matters and determine their effect on the
Company's consolidated financial statements.
News of this rocked all Adecco securities sending them tumbling
more than 30% or $5.23 per share to close at $11.70 per share on
extremely heavy volume.
For more information, 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.
BIOVAIL CORPORATION: Marc Henzel Commences Securities Suit in 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 all persons who purchased the
common shares of Biovail Corporation (NYSE: BVF; TSX: BVF)
between February 7, 2003 and October 30, 2003 for violations of
the federal securities laws. Biovail's common shares are traded
on the New York Stock Exchange and on the Toronto Stock Exchange
under the symbol "BVF."
The Complaint alleges that Biovail and certain of its officers
and directors made materially false and misleading statements
during the Class Period. Specifically, Defendants made material
misrepresentations concerning Biovail's financial results and
business by, inter alia, improperly reporting revenue and
earnings attributable to the sales of a generic version of
Prilosec and misstating the demand in the marketplace for that
product.
Plaintiff further alleges that these material misrepresentations
artificially inflated the price of Biovail's common shares,
which traded as high as $50.30 on the New York Stock Exchange
and as high as CD $67.75 on the Toronto Stock Exchange during
the Class Period.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
CAREER EDUCATION: Kirby McInerney Launches Securities Suit in IL
----------------------------------------------------------------
Kirby McInerney & Squire, LLP initiated a class action lawsuit
in the United States District Court for the Northern District of
Illinois, on behalf of all purchasers of Career Education
Corporation securities during the period from January 28, 2003
through December 2, 2003, inclusive.
The action charges Career Education and certain of its senior
officers with violations of Sections 10(b) and Rule 10b-5 of the
Securities Exchange Act of 1934. The alleged violations stem
from the dissemination of false and misleading statements, which
had the effect - during the Class Period -- of artificially
inflating the price of Career Education's shares.
Investors allege that during the Class Period the Company's
record financial growth was a product of inflated student
enrollment, retention, and graduation rates procured through the
falsification of such records.
For more information, contact Pamela E. Kulsrud, or Vivian Lee,
by Mail: 830 Third Avenue, 10th Floor, New York, New York 10022,
by Phone: (212) 317-2300 or Toll Free (888) 529-4787, or by E-
mail: vlee@kmslaw.com.
CAREER EDUCATION: Marc Henzel Lodges Securities Suit in N.D. IL
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Northern
District of Illinois, Eastern Division on behalf of purchasers
of Career Education Corporation (NASDAQ: CECO) securities, who
were damaged thereby, during the period between April 22, 2003
and December 2, 2003, inclusive.
The complaint charges CEC and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. The complaint alleges that Career Education publicly
touted its business and financial performance, the performance
of its stock price and its industry leading position as reasons
for why investors should purchase its stock.
These, and other statements particularized in the complaint,
were materially false and misleading because they failed to
disclose that CEC had been regularly falsifying student records
in order to increase graduation rates and enrollment, conceal
problems that could have threatened the accreditation of its
schools, and generally, to allow it to increase its
profitability.
On December 3, 2003, the market learned that the former
registrar of CEC's Brooks Institute of Photography in Santa
Barbara, California alleged, in a complaint filed with an
accreditation agency, that the school falsified student records
to ensure that the school passed inspections by accreditation
auditors and to increase enrollment.
In reaction to this announcement, CEC's stock price plummeted,
falling from $54.76 per share on December 2, 2003 to $39.48 on
December 3, 2003, a one-day drop of 28%, on trading volume of
18.2 million shares -- more than nine times the Company's three-
month daily average.
Throughout the Class Period, Career Education insiders,
including the individual defendants, sold a total of 1.7 million
(split-adjusted) shares of Career Education common stock at
artificially inflated prices, reaping gross proceeds in excess
of $69 million.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
DYNACQ HEALTHCARE: Emerson Poynter Files Securities Suit in TX
----------------------------------------------------------------
Emerson Poynter LLP, initiated a class action lawsuit in the
United States District Court for the Southern District of Texas,
Houston Division, on behalf of all those who purchased or
acquired the securities of Dynnacq Healthcare, Inc. during the
period from January 14, 2003 and December 18, 2003, inclusive,
against Dynacq Healthcare, Inc., and:
(1) Philip S. Chan, and
(2) Chiu M. Chan
The Complaint alleges, inter alia, that the defendants
fraudulently certified that Dynacq's financial statements for
the first three quarters of fiscal 2003 were compiled in
compliance with Generally Accepted Accounting Principles.
The true facts were first revealed beginning on December 2,
2003, when the Company announced that it was requesting an
automatic extension of up to 15 days to file its Form 10-K for
fiscal year ended August 31, 2003 with the SEC. On December 18,
2003, the Company announced that its independent auditor, Ernst
& Young LLP, had resigned due to the Company's "lack of internal
controls necessary to develop reliable financial statements."
Also on December 18, 2003, the Company announced that it had
received a Nasdaq Staff Determination stating that Dynacq's
stock could be delisted on December 30, 2003 due to Dynacq's
failure to file its fiscal year 2003 10-K in a timely manner.
Finally, on December 18, 2003, the Company announced that it had
received notice that the SEC was conducting an investigation
into Dynacq's reporting of its financial statements, revenue and
cost recognition, allowances for doubtful accounts, and internal
financial and accounting controls.
The market reacted negatively to these disclosures. Dynacq
shares, after trading during the Class Period at a high of
$27.37 per share, plummeted to a low of just $4.09 per share on
December 19, 2003.
For more information, contact The law firm of Emerson Poynter
LLP, Investor Relations Department, by Mail: 830 Apollo Lane,
Houston, Texas 77058, by Phone: (800) 663-9817, or by E-mail:
shareholder@emersonfirm.com.
MERCK & CO.: Milberg Weiss Launches Securities Suit in E.D. LA
--------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP initiated a class
action lawsuit in the United States District Court for the
Eastern District of Louisiana, on behalf of purchasers of the
securities of Merck & Co., Inc. between May 22, 1999 and October
22, 2003, inclusive, seeking to pursue remedies under the
Securities Exchange Act of 1934, against the Company and:
(1) Kenneth C. Frazier,
(2) Richard C. Henriques,
(3) Raymond V. Gilmartin,
(4) Judy C. Lewent, and
(5) Mary M. McDonald
According to the complaint, 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.
The complaint alleges that during the Class Period, defendants
engaged in a marketing campaign which included false and
misleading statements concerning the safety profile of Merck's
painkilling drug, Vioxx, and Vioxx's superiority to its rival
drug, Celebrex, manufactured by Merck's competitor, Pfizer. On
November 16, 1999, the Food and Drug Administration sent a
letter to defendants which stated that certain of Merck's
promotional pieces of Vioxx were false and misleading and lacked
fair balance. Moreover, during the Class Period, defendants
failed to disclose material information concerning the degree of
the serious adverse side-effects of Vioxx, including
significantly increased risks of heart attacks in patients
taking the drug.
Specifically, in March 2000, defendants released the results of
a Merck-sponsored study called the Vioxx Gastrointestinal
Outcomes Research which demonstrated "significantly few heart
attacks were observed in patients taking naproxen (0.1 percent)
compared to the group taking Vioxx 50 mg (0.5 percent) in this
study." In September 2001, defendants received another letter
from the FDA concerning Merck's marketing of Vioxx during which,
the Agency warned, Merck minimized the potentially serious risk
of increased heart problems discovered in the VIGOR study and
downplayed the adverse effects of using Vioxx with the drug
Coumadin. The FDA concluded in the letter that Merck's marketing
of Vioxx was "false, lacking in fair balance, or otherwise
misleading(.)"
Despite available information, defendants failed to adequately
disclose the degree of the serious adverse risks of Vioxx,
contending that the FDA Warning Letter and other studies were
inaccurate and/or inconclusive, and instead, continued to tout
the efficacy of the drug and the revenues derived from the sale
thereof.
As a result of defendants' false and misleading statements, the
price of Merck's securities was artificially inflated during the
Class Period, enabling Company insiders to sell their personally
held shares of Merck for over $175 million in proceeds, and
causing injury to plaintiff and other members of the Class.
On October 22, 2003, an article was published on Reuters
reporting Merck's third quarter 2003 results and confirming that
Vioxx "is suffering from clinical trial data suggesting it might
slightly raise the risk of heart attacks, and the growing
perception that its pain-fighting capabilities are no better
than traditional painkillers."
On October 30, 2003, The Wall Street Journal explained that the
above-mentioned data was derived from another study sponsored by
Merck which demonstrated that within the first 30 days of taking
Vioxx, the risk of a heart attack was increased 39% in
comparison with Celebrex.
For more information, contact Steven G. Schulman, Peter E.
Seidman, or Andrei V. Rado, by Mail: One Pennsylvania Plaza,
49th fl., New York, NY, 10119-0165, by Phone: (800) 320-5081, by
E-mail: merckco@milberg.com, or visit the firm's Website:
http://www.milberg.com.
MICROMUSE INC.: Marc Henzel Launches Securities Suit in N.D. CA
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Northern
District of California on behalf of purchasers of the securities
of Micromuse, Inc. (Nasdaq: MUSEE) between January 20, 2000 and
December 29, 2003, inclusive.
According to the complaint, 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. The
complaint alleges that during the Class Period, defendants
knowingly or recklessly issued materially false and misleading
financial statements that misrepresented the Company's earnings
and shareholder equity. During this period, Company insiders
sold Micromuse stock for proceeds of approximately $174 million.
The class period ends on December 30, 2003. On that date, the
Company announced that filing of its annual report on Form 10-K
would be delayed pending completion of an internal inquiry,
primarily regarding accounting for accrued expenses and expense
recognition, and that the Company expected the inquiry to lead
to a restatement of financial results for the fiscal years
ending September 20, 2000, 2001, 2002 and 2003. In reaction to
this announcement, the price of Micromuse common stock dropped
by 12.4%, from a closing price of $6.90 on December 29, 2003,
and closed the day down 4% at $6.59 on volume ten times greater
than average.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
NETWORK ENGINES: Marc Henzel Lodges Securities Suit in MA Court
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the District of
Massachusetts on behalf of purchasers of Network Engines, Inc.
(Nasdaq: NENG) publicly traded securities during the period
between November 6, 2003 and December 10, 2003, inclusive.
The complaint alleges that by the start of the Class Period,
defendants knew, but failed to disclose, that Network Engines
was in the process of renegotiating its distribution contract
with EMC, and that EMC was demanding price reductions, which, if
agreed to, would negatively impact the Company's future
financial results.
Nevertheless, throughout the Class Period, defendants issued
positive statements highlighting the Company's strong financial
performance, continued growth and the success of its
relationship with EMC, its largest customer. Defendants failed
to disclose, however:
(1) that the Company was in the process of renegotiating
its distribution contract with EMC;
(2) that EMC was demanding price concessions to bring its
agreement with Network Engines in line with the pricing
that Network Engines was providing to other customers;
(3) that the new distribution contract with EMC would
negatively impact the Company's future financial
performance;
(4) that the Company would not be able to sustain the
growth in its gross margins as a result of the amended
contract; and
(5) as a result, the Company's positive statements issued
during the Class Period were materially false and
misleading when made.
Finally, on December 10, 2003, the Company announced, among
other things, that it had renegotiated its distribution contract
with EMC and the amended contract would negatively impact the
Company's gross profit related to the sale of EMC-approved Host
Bus Adapters and the Company's distribution operations gross
profit.
Following this announcement, shares of Network Engines common
stock fell $3.92 per share, or 39%, to close at $6.10 per share,
on extraordinarily high trading volume, and have continued to
decline since that time.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
PARMALAT FINANZIARIA: Marc Henzel Lodges Securities Suit in 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 Parmalat Finanziaria, SpA (OTC:PARAF.PK Milan:PRF IM) and its
subsidiaries during the period between January 5, 1999 and
December 29, 2003.
The complaint charges certain of Parmalat's senior insiders and
its legal, accounting and financial advisors with violations of
the Securities Exchange Act of 1934. Parmalat is an
international food and dairy company.
The complaint alleges that Parmalat's senior insiders, together
with Parmalat's legal, accounting and financial advisors,
concocted a massive scheme whereby they overstated Parmalat's
reported profits and assets for more than a decade. The alleged
scheme involved the creation of bogus bank accounts, the use of
forged financial records and the manipulation of Parmalat's
balance sheet and income statement via fictitious investment
assets and sham transactions, and was designed to and did allow
defendants to divert approximately $1 billion to themselves
and/or to companies controlled by them via professional fees and
clandestine asset transfers and enabled Parmalat to raise more
than $5 billion from unsuspecting investors from the sale of
newly issued securities.
The fraudulent scheme began to unravel in the fourth quarter of
2003, when, contrary to defendants' Class Period representations
that Parmalat was experiencing strong growth in net operating
profit and had a healthy balance sheet, it was disclosed that:
(1) almost 40% of Parmalat's entire asset base, purportedly
held in a bank account at Bank of America, did not
exist;
(2) Parmalat had been declared insolvent;
(3) the $625 million of Parmalat's cash purportedly
invested in a liquid investment fund in the Cayman
Islands could not be retrieved;
(4) defendants had manipulated the Company's income
statements and balance sheet for more than a decade by
using off-shore shell companies, special purpose
entities, forged documents and sham transactions; and
(5) at least eight Parmalat senior insiders, auditors and
lawyers, including certain of the defendants, had been
taken into custody for the perpetration of this multi-
billion dollar fraud.
As the magnitude of the fraud began to reach the market, the
complaint alleges that defendants attempted to destroy evidence
and/or ordered their subordinates to destroy evidence of the
fraudulent scheme in an effort to evade liability for their
participation in one of the most shocking corporate scandals
ever to afflict the public financial markets. The revelations of
defendants' misconduct caused the price of Parmalat stock to
plunge 95% before trading was suspended on December 29, 2003.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
PMA CAPITAL: Marc Henzel Lodges Securities Fraud Suit in E.D. PA
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Eastern
District of Pennsylvania on behalf of all persons who purchased
the securities of PMA Capital Corporation (NasdaqNM: PMACA)
(AMEX: PMK) between November 13, 1998 and November 3, 2003
seeking remedies under the Securities Exchange Act of 1934
(NasdaqNM: PMACA) and on behalf of all persons who purchased
securities of PMA issued in public offerings dated October 16,
2002, 4.25% Convertible Senior Debentures Due 2022 (the ``4.25%
Debentures'') and June 5, 2003, 8.5% Monthly Income Senior Notes
due 2018 (the ``8.5% Notes'') (AMEX:PMK - News)( collectively:
the ``Offerings'') seeking remedies under Sections 11, 12 (a),
20 and 15 of the Securities Act of 1933.
On November 4, 2003, before the market opened, PMA disclosed in
a press release and a concurrent SEC filing on Form 8-K, that it
would record a pre-tax charge of $150 million primarily to
compensate for PMA Re's inadequate loss reserves. Defendants
stated that an internal review of the Company's reserves
revealed that the material charge ``relates to higher than
expected underwriting losses in PMA Re's reinsurance operations,
primarily from casualty business written in accident years 1997
to 2000.'' As a result of this charge, the Company suspended its
common stock dividend, and has engaged Banc of America
Securities LLC to explore ``strategic alternatives.''
On the same day, PMA announced that it was in discussions with
the Pennsylvania Insurance Department over the Company's
insurance operations. Immediately following this announcement,
the price of PMA common stock plummeted $8.11, or 61.7 percent,
from its previous day's trading, to close at $5.03 per share. On
November 6, 2003, PMA revealed that the write down will
effectively force the Company to withdraw from the reinsurance
business, and that defendant John W. Smithson had resigned as
President and Chief Executive Officer of PMA.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
RYLAND GROUP: Marc Henzel Lodges Securities Lawsuit in C.D. CA
--------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Central
District of California on behalf of purchasers of Ryland Group,
Inc. (NYSE: RYL) publicly traded securities during the period
between October 22, 2003 through January 7, 2004, inclusive.
The complaint charges Ryland Group, R. Chad Dreier, and Gordon
Milne with violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder. Between October 22, 2003 and January 7, 2004, the
defendants issued a series of material misrepresentations to the
market concerning the Company's financial results.
More specifically, the defendants' statements during the Class
Period were materially false and misleading because they failed
to disclose and/or misrepresented the following adverse facts,
among others:
(1) that the Texas market (and particularly Dallas) was in
a freefall;
(2) that Texas buyers were proving highly resistant to the
entry level homes that Ryland Group was offering; and
(3) that the defendants knew or recklessly disregarded that
offerings of "move up" properties would be better
received in that market, but that Ryland Group was not
in a position to offer these types of properties.
On January 8, 2004, Ryland Group shocked the market by
announcing that new orders for the fourth quarter had decreased
8.9%, largely due to an astounding 33% decline in Texas orders.
Indeed, only 344 new homes were sold by Ryland Group in that
quarter, as contrasted with sales of 770 new units in the third
quarter of 2003. This development stood in stark contrast to the
positive statements issued during the Class Period by
defendants. Ryland Group stock dived $10.16, to $72.89 per
share, after closing at $83.05 per share on January 7, 2004 on
heavy trading volume.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
TITAN PHARMACEUTICALS: Marc Henzel Lodges Securities Suit in CA
---------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Northern
District of California on behalf of purchasers of Titan
Pharmaceuticals, Inc. (AMEX: TTP) common stock during the period
between December 1, 1999 and July 22, 2002.
The complaint charges Titan Pharmaceuticals and certain of its
officers and directors with violations of the Securities
Exchange Act of 1934. During the Class Period, Titan
Pharmaceuticals sought to develop Iloperidone (Zomaril), a
potential new drug for the treatment of schizophrenia. The
complaint alleges that from the very beginning of the Class
Period, defendants declared that the development program for
Iloperidone was making steady progress through Phase III
clinical trials and towards drug approval in the U.S. Defendants
expressed excitement over the safety and efficacy of Iloperidone
and with the Phase III study results, particularly the
statistically significant reduction in the symptoms of
schizophrenia in patients. Defendants concluded that the
positive late-stage development results pointed to an important
role for Iloperidone as an important new option for the
treatment of schizophrenia.
Heightened expectations for the success of Iloperidone stood in
contrast to an ongoing process of U.S. Food and Drug
Administration review of serious unaddressed safety issues
facing older, established antipsychotic drugs. This process has
resulted in the imposition of severe marketing restrictions for
a number of established antipsychotic drugs. However, during the
Class Period, defendants artificially inflated the price of
Titan Pharmaceuticals shares by issuing a series of materially
false and misleading statements about the Company's
Investigational New Drug and New Drug Applications for
Iloperidone (Zomaril).
As a result of the defendants' alleged false statements, Titan
Pharmaceuticals stock traded at inflated prices during the Class
Period, causing millions of dollars of damages to the Class.
However, based on the disclosures made in defendants' press
release of July 22, 2002, pointing to the ability of Iloperidone
to prolong the QT interval and raising serious questions about
Iloperidone cardiovascular safety and marketability, the price
of Titan Pharmaceuticals' shares fell a precipitous 58%, to
$1.63, its lowest level ever, on volume of 3.8 million shares.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
TOPAZ GROUP: Marc Henzel Commences Securities Fraud Suit in WA
--------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the District of
Washington on behalf of purchasers of Topaz Group, Inc. (AMEX:
TPZ) between March 21, 2002 and August 20, 2003, inclusive.
Defendant Topaz is a vertically integrated manufacturer and
seller of fine jewelry and gemstones. Defendants include the
Company and:
(1) Aphichart Fufuangvanich,
(2) George Pfeifer,
(3) Peter Brongers and
(4) Timothy Matula
The Complaint charges that defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10-
b(5). The Complaint alleges that Defendants issued a series of
false and misleading financial statements which did not comply
with generally accepted accounting principles.
Specifically, Defendants incorrectly reported Topaz' financial
position by, inter alia: overstating inventory, understating
allowances for doubtful accounts and improperly recognizing
revenue. As a result of defendants' conduct, plaintiff and
Class members purchased Topaz shares at artificially inflated
prices and were damaged thereby.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
VAN DER MOOLEN: Marc Henzel Lodges Securities Fraud Suit in 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 all persons who purchased the
American Depository Receipt shares (ADRs) of Van der Moolen
Holding N.V. (NYSE:VDM), between October 18, 2001 through
October 15, 2003, inclusive. The suit names as defendants the
Company and:
(1) Friedrich M.J. Bottcher,
(2) Frank F. Dorjee,
(3) James P. Cleaver, Jr., and
(4) Casper F. Rondeltap
The suit alleges violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. Van der Moolen acts as a specialty firm on the New
York Stock Exchange (NYSE). As a specialist on the NYSE, Van
der Moolen is required to uphold the rules and requirements of
the NYSE.
One such requirement that Van der Moolen must adhere to is
called the "negative obligation." The negative obligation is
the duty to hang back and not trade for the specialist firm's
own account when enough public investor orders exist to pair up
naturally, without undue intervention. Rather than uphold its
duties, Van der Moolen, during the class period, repeatedly
violated its duties by engaging in an illegal scheme to drive up
the Company's financial results.
More specifically, the Complaint alleges that the Company's
statements concerning its financial results during the class
period were materially false and misleading because they failed
to disclose and misrepresented the following adverse facts,
among others:
(1) that Van der Moolen engaged in the illegal practice of
"front-running" trades at the NYSE, which allowed Van
der Moolen to act on nonpublic information to trade
ahead of customers lacking that knowledge and pocket a
profit on each trade;
(2) that Van der Moolen illegally "traded ahead" of
customer orders by causing or allowing its traders to
put Van der Moolen's own interest ahead of investors by
ignoring one investor order in the process of
interacting with another investor, thereby creating
more illegal profits for the Company;
(3) that Van der Moolen, throughout the Class Period,
improperly recognized revenue from its illegal scheme
in violation of Generally Accepted Accounting
Principles (GAAP); and
(4) as a result of this illegal scheme, Van der Moolen
materially overstated and artificially inflated its
earnings and net income.
On April 17, 2003, the NYSE issued a statement wherein it
disclosed that it had begun an investigation of the specialist
firms of the NYSE. On news of this Van der Moolen ADRs fell 4.8%
or $0.52 per share to close at $10.19 per share.
On April 18, 2003, The Wall Street Journal reported that Van der
Moolen and others were the subject of an investigation by the
NYSE into illegal trading practices on the floor of the NYSE.
Additionally on April 18, 2003, Bloomberg reported that the SEC
had also begun an investigation into illegal trading practices
by specialist firms, such as Van der Moolen. On news of this,
Van der Moolen ADRs fell another 4.7% or $0.48 per share to
close at $9.71 per share on April 21, 2003.
On September 22, 2003, The Wall Street Journal reported that SEC
had intensified its inquiry into the NYSE specialist firms, like
Van der Moolen. The article noted that SEC was not only
investigating the illegal "front-running" practices of the
specialist firms, like Van der Moolen but was now investigating
whether floor traders "traded ahead" of customer orders. On news
of this, Van der Moolen ADRs fell 4.4% or $0.62 per share to
close at $ 13.35 per share.
Lastly, on October 16, 2003, the NYSE announced that the NYSE
Enforcement Division had decided to bring disciplinary action
against Van der Moolen and the other specialist firms.
Additionally, the NYSE stated that for the three- year period
ended December 31, 2002, Van der Moolen disadvantaged customers
who entered orders via the NYSE's Designated Order Turnaround
System ("DOT") through alleged "interpositioning" resulting in
losses to customers of approximately $10 million.
In the case of such alleged "interpositioning" Van der Moolen is
believed to have traded unnecessarily as dealer with DOT orders
on one side of the market, and then immediately traded with DOT
orders on the opposite side, at a profit to the specialist. The
NYSE further stated that Van der Moolen's illegal actions
resulted in additional losses to customers of approximately $25
million. In these alleged "one-sided trading" cases, the
specialist is believed to have traded unnecessarily, as dealer,
on one side of the market only, at a price level where one or
more DOT orders could have traded instead.
News of this shocked the market. Van der Moolen ADRs fell 14.7%
or $1.56 per share to close at $9.05 per share on extremely high
volume.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
VIRBAC CORPORATION: Marc Henzel Files Securities Suit in N.D. TX
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action filed in the United States District Court for the
Northern District of Texas, Fort Worth Division, on behalf of
purchasers of Virbac Corporation (Nasdaq: VBACE) common stock
during the period between May 3, 2001 through November 12, 2003,
inclusive.
The complaint charges Virbac, Thomas L. Bell, and Joseph A.
Rougraff with violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder. Between May 3, 2001 and November 12, 2003, the
defendants issued a series of material misrepresentations to the
market concerning the Company's financial results.
More specifically, the defendants' statements were materially
false and misleading because they failed to disclose and/or
misrepresented the following adverse facts, among others:
(1) that Virbac had materially overstated its net income
and earnings per share;
(2) that Virbac had materially overstated its inventory;
(3) that Virbac's financial results were in violation of
Generally Accepted Accounting Principles (GAAP);
(4) that Virbac lacked adequate internal controls and was
therefore unable to ascertain the true financial
condition of the Company; and
(5) that as a result, the value of Virbac's financial
results were materially overstated at all relevant
times.
On November 12, 2003, after the markets closed, the Company
announced that it would delay the release of its results for the
quarter and nine months ended September 30, 2003, as well as the
filing of its corresponding quarterly report on Form 10-Q with
the Securities and Exchange Commission pending completion of an
internal inquiry being conducted by the Audit Committee of the
Company's Board of Directors.
The Company further stated that during the course of their
quarterly review, the Company's outside auditors,
PricewaterhouseCoopers, raised questions relating to certain of
the Company's revenue recognition practices and inventory
accounting practices.
The market reacted swiftly to this news, with the Company's
stock falling 22% or $1.85 per share before being halted by
Nasdaq at 10:46 A.M., eastern time. The Company's stock price
was $6.50 per share when trading was halted.
The final blow occurred on November 24, 2003 when Virbac
announced it would restate its results for 2001, 2002, and the
first two quarters of 2003 due to the questions raised by
PricewaterhouseCoopers relating to certain of the Company's
revenue recognition practices and inventory accounting
practices. As of today, the Company's stock was still halted.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
WATSON PHARMACEUTICALS: Marc Henzel Lodges Securities Suit in CA
----------------------------------------------------------------
The Law Offices of Marc S. Henzel initiated a securities class
action in the United States District Court for the Central
District of California on behalf of purchasers of Watson
Pharmaceuticals, Inc. (NYSE: WPI) common stock during the period
between November 2, 1999 and November 13, 2001, inclusive.
The complaint alleges that Watson and certain of its officers
and directors violated U.S. securities laws (Sections 10(b) and
20(a) of the Securities and Exchange Act of 1934, and Rule 10b-5
promulgated thereunder), by issuing materially false and
misleading statements. These alleged false statements include:
(1) that Watson was materially overstating its financial
results by failing to write down the value of its
inventories and the value of certain of the Company's
assets;
(2) that Watson was experiencing significantly increased
competition for generic drugs and was also experiencing
manufacturing difficulties; and
(3) that defendants' positive statements about the Company
were lacking in a reasonable basis at all times and
were therefore materially false and misleading.
Defendants used millions of shares of Watson common stock to
acquire other businesses before these facts were disclosed to
the investing public. On November 13, 2001, Watson disclosed
its financial results for the third quarter 2001 which were well
below expectations. Additionally, the Company announced that it
was writing off almost all of its investment in Dilacor XR and
that the Company was writing off over $20 million in additional
impaired inventory.
In response the price of Watson common stock plummeted, trading
down almost $20 per share, to close trading at $28.54 per share,
compared to the prior day's close of $47.15 per share, on volume
of over 15.3 million shares traded -- almost 20 times the
average trading volume for Watson shares.
For more details, contact Marc S. Henzel by Mail: 273 Montgomery
Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or
888-643-6735 by Fax: 610-660-8080 or by E-Mail:
mhenzel182@aol.com
WEBACCESS: Cisneros Schendzielos Lodges Securities Lawsuit in CO
----------------------------------------------------------------
The Law Firm of Cisneros, Schendzielos & Bettenberg, LLP and
Clark, Bloss & Wall, PLLC initiated a putative class action in
the United States District Court for the District of Colorado,
on behalf of all persons who purchased stock of WebAccess
between June 1, 1999 and November 30, 2002, inclusive, against
WebAccess International Inc., and:
(1) Blair Whitaker,
(2) J. Roger Moody,
(3) L. Shawn Breskow,
(4) James W. Stuckert,
(5) Archibald J. McGill,
(6) Wiley E. Prentice, Jr.,
(7) Steven A. Spesard,
(8) Steven A. Lyga,
(9) Carol L. Leveque,
(10) Daniel W. Boyd,
(11) James Rogers,
(12) Steven E. Anderson,
(13) J.J.B. Hilliard, and
(14) W.L. Lyons, Inc.
The complaint asserts that the investments in WebAccess were
securities required to be registered under federal and state
law, but the defendants failed to register them. The complaint
also asserts that the sales of WebAccess common stock and
preferred stock were accomplished by the use of false and/or
misleading statements. The complaint also alleges that the
defendants violated federal and state civil racketeering
statutes, and asserts claims of breach of fiduciary
duty/constructive fraud, and negligent misrepresentation.
For more information, contact Alfred A. Arraj, Clerk of Court
for the United States District Court for the District of
Colorado, United States Courthouse, Room A105, 901 19th Street,
Denver, Colorado 80294-3589.
*********
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., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland
USA. Roberto Amor, Aurora Fatima Antonio and Lyndsey Resnick,
Editors.
Copyright 2004. 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 * * *