CAR_Public/040130.mbx           C L A S S   A C T I O N   R E P O R T E R
  
           Friday, January 30, 2004, Vol. 6, No. 21

                        Headlines                            

APO HEALTH: Reaches Settlement For Unsolicited Consumer Fax Suit
CALIFORNIA: Study Shows Mistreatment of Young CA Prison Inmates
CASE-TENNECO: Retirees Told To Continue Monthly Health Payments
EXXON MOBIL: AK Court Orders $7 Billion Award in Oil Spill Suit
GUANTANAMO DETAINEES: Court Stops Lower Court Ruling in Lawsuit

IMS/CPAs & ASSOCIATES: SEC Orders Distributions Paid To Clients
MUTUAL FUNDS: Panel To Decide Where To Send Investor Fraud Suits
NEW YORK: Reaches $20M Settlement With Armenian Genocide Victims
NORTHWEST AIRLINES: NASA Administrator Testifies in Senate Probe
PRESTO TELECOMMUNICATIONS: SEC Sues To Stop CA Securities Fraud

SAFETY-KLEEN CORPORATION: NY Court Enters Judgment V. Ex-Execs
SOUTH AFRICA: U.S. Firm Enters Welding Rod Inquiry for Lawsuit
STA-RITE INDUSTRIES: Recalls 8.5T Pool Filters For Injury Hazard
UNITED STATES: Displaced Software Workers Sue Labor Department

                     Asbestos Alert

ASBESTOS LITIGATION: Allegheny Energy Battles 1,310 Open Cases
ASBESTOS LITIGATION: St. Paul Says Court Approves Asbestos Deal
ASBESTOS LITIGATION: Equitas, Halliburton Settle Claims for 575M
ASBESTOS LITIGATION: Judge Thwarts ACandS Reorganization Plan
ASBESTOS LITIGATION: Owens-Illinois Sees End of Asbestos Woes

ASBESTOS LITIGATION: U.S. Steel Corp. Faces 3,750 Asbestos Suits
ASBESTOS LITIGATION: Crane Co. Faces 68,606 Pending Lawsuits
ASBESTOS LITIGATION: ABB Eyes Asbestos Settlement at 2Q End
ASBESTOS LITIGATION: Former Grace Plant May Have Asbestos

                   New Securities Fraud Cases

ADECCO SA: Weiss & Yourman Commences Securities Suit in E.D. NY
AMERICAN BUSINESS: Lasky & Rifkind Files Securities Suit in PA
AMERICAN BUSINESS: Rabin Murray Files Securities Suit in E.D. PA
DEUTSCHE BANK: Emerson Poynter Lodges Securities Suit in S.D. NY
DYNACQ HEALTHCARE: Chitwood & Harley Lodges TX Securities Suit

DYNACQ HEALTHCARE: Charles Piven Launches Securities Suit in TX
DYNACQ HEALTHCARE: Wolf Popper Commences Securities Suit in TX
GILEAD SCIENCES: Wechsler Harwood Files Securities Suit in CA
INVESCO FUNDS: Charles Piven Lodges Securities Fraud Suit in CO
MFS MUTUAL: Charles Piven Commences Securities Fraud Suit in MA

MORGAN STANLEY: Klayman & Toskes Files Securities Suit in NY
NETWORK ENGINES: Charles Piven Lodges Securities Lawsuit in MA
PARMALAT FINANZIARIA: Charles Piven Files Securities Suit in NY
PARMALAT FINANZIARIA: Marc Henzel Launches Securities Suit in NY
PMA CAPITAL: Marc Henzel Lodges Securities Fraud Suit in E.D. PA

QUEST SOFTWARE: Marc Henzel Commences Securities Suit In C.D. CA
ROYAL DUTCH: Lasky & Rifkind Launches Securities Lawsuit in NJ
SCUDDER MUTUAL: Glancy Binkow Launches Securities Lawsuit in NY
SECURITY TRUST: Charles Piven Commences Securities Lawsuit in AZ
TV AZTECA: Lasky & Rifkind Launches Securities Suit in S.D. NY

VIRBAC CORPORATION: Goodkind Labaton Files Securities Suit in TX


                        *********


APO HEALTH: Reaches Settlement For Unsolicited Consumer Fax Suit
----------------------------------------------------------------
APO Health, Inc. (OTC BB:APOA.OB), a multi-faceted distributor
of medical, dental and veterinary supplies, reached an out of
court settlement in an unsolicited customer broadcast fax class
action by Kenro, Inc.

After extensive negotiations, APO Health's attorneys agreed to
settle the litigation for up to $4.5 million, which will be
placed in a Settlement Fund created and completely covered by
insurance from APO Health's insurer. Once approved by the court,
notice of the settlement will be sent to the class action
plaintiffs. As a result of this settlement, if approved, APO
Health will have no out of pocket expenses related to the
creation or management of this Settlement Fund.

Details of the settlement agreement will be reviewed by the
court, which must approve the settlement before it becomes
final.  Mediation in this matter was court ordered.

APO Health's attorneys agreed to settle the case to avoid
further expensive litigation and uncertainty and to put the
issue behind the Company. The Company emphasized the settlement
is not an admission of liability.

For more details, contact Dr. Jan Stahl, President, APO Health,
Inc. by Phone: (516) 594-0005 x221


CALIFORNIA: Study Shows Mistreatment of Young CA Prison Inmates
---------------------------------------------------------------
A study funded by the state of California revealed that the
California Youth Authority (CYA) mistreated young California
inmates, locking them in cages as punishment, drugging those
with mental problems and improperly caring for them, the
Associated Press reports.

The report is the first of six being conducted, relating to a
class action filed by the San Francisco-based nonprofit Prison
Law Office alleging poor conditions and treatment at the state's
11 youth institutions.  Similar reports have been prepared on
education and health care in the system, which handles young
people up to age 25.  The experts said there has been some
progress, but cited wide variations between the nine
institutions they reviewed.

The report revealed that the CYA often focused on punishment
instead of rehabilitating its 4,600 young wards.  Inadequately
trained therapists frequently treated youths suffering mental
illness and substance abuse problems with prescription drugs
instead of providing proper therapy.  A majority of the wards
suffer mental or drug-abuse problems, AP reports.

"The vast majority of youths who have mental health needs are
made worse instead of improved by the correctional environment,"
reported University of Washington child psychologist Eric Trupin
and forensic psychiatrist Raymond Patterson of Washington, D.C.
"The California Youth Authority continues to fall short of
meeting many recognized standards of care for youth with mental
health and substance abuse disorders."

Widespread use of so-called "chemical restraints" is
intolerable, Sen. Gloria Romero, D-Los Angeles, who chairs a
corrections oversight committee, told AP.  "This is not the
1930s. Even in mental hospitals, I thought we'd gotten rid of
these practices long ago," she said.  "We have got a serious
problem, and before another teenager commits suicide the
California Youth Authority has got to get its act together."

Sen. Romero plans to call a hearing on the system next month.  
State officials aren't disputing the findings, and Youth and
Adult Correctional Agency spokesman Tip Kindel said Gov. Arnold
Schwarzenegger's new administration inherited the problems but
is trying to fix them "on a fast track."  "The report was pretty
scathing in terms of what was being done and not done for the
wards," Mr. Kindel told AP.


CASE-TENNECO: Retirees Told To Continue Monthly Health Payments
---------------------------------------------------------------
Case-Tenneco Retirees must continue paying their monthly health
premium payments, despite a federal court's decision ordering El
Paso Tennessee Pipeline Co. to temporarily reinstate the
benefits until the matter goes to trial, The Quad-City Times
reports.

The benefits of about 3,500 Case-Tenneco retirees nationwide
were turned over to El Paso Natural Gas Co., when it merged with
Tenneco.  The retirees sued after the Company began charging a
monthly premium a year and a half ago.  The retirees alleged
they were promised free health benefits for life for themselves
and their spouses when they retired.

In court documents, El Paso has argued that Tenneco's liability
was limited to a cap.  A federal court later ordered the Company
to temporarily reinstate the benefits until the matter goes to
trial.  However, last Friday, Judge Patrick Duggan stayed the
temporary injunction until he can rule on motion for
reconsideration by El Paso, asking the court to reconsider the
temporary injunction.

The motion "has a lot to do with who has to pay, not if someone
has to pay," Roger McClow, the Detroit attorney representing the
retirees, told the Quad-City Times.

"This is a temporary hiatus," he said of the judge's stay,
which now has him advising retirees to pay the monthly premiums
until they hear differently.  Retirees should be receiving
letters about the latest developments this week.

"It makes sense, in a sense, that the judge didn't want to make
El Paso do all the administrative things to put this place in
case they are not responsible in the end," Mr. McClow said of
the stay. "He wants to make sure he has the right party."


EXXON MOBIL: AK Court Orders $7 Billion Award in Oil Spill Suit
---------------------------------------------------------------
The United States District Court in Alaska ordered Exxon Mobil
Corporation to pay nearly $7 billion in damages to all affected
by the 1989 Exxon Valdez oil spill, the Seattle Post-
Intelligencer reports.

On March 24, 1989, the Valdez, one of the Company's newest oil
tankers ran aground on Bligh Reef, on Prince William Sound.  The
accident, labeled one of the worst environmental disasters in
U.S. history, dumped 11 million gallons of oil into the sound,
affecting 1,300 miles of coastline and destroying local
fisheries.  

In 1996, Judge Russell Holland ordered the company to pay $5
billion to 34,000 Alaskans and fishermen - the largest punitive
damages award in U.S. history. The Company appealed the award to
the 9th U.S. Circuit Court of Appeals.  The appeals court ruled
in favor of the Company, saying the award was too high and
sending the case back to the federal district court.

In 1997, Judge Holland reduced the award by $1 billion, which
the Company again appealed.  The 9th Circuit again sent the case
back, saying the U.S. Supreme Court had modified guidelines for
excessive damages and the case must be re-examined with those
guidelines in mind.

Yesterday, Judge Holland ruled that the Irving, Texas-based oil
giant owed $4.5 billion in damages, not including interest.   He
also ordered payment of $2.25 billion in interest to 32,000
people, including entire small coastal communities, business
owners and Alaska natives.

The ruling could mean millions of dollars for Washington
fishermen who worked in the waters of Prince William Sound and
near Kodiak, Alaska.  However, plaintiffs are not yet counting
on the award, as the Company's attorneys vowed to appeal again.  

Lawyer Molly Mulvaney, who lost months of work after the spill,
was elated when she heard the ruling, but her enthusiasm dimmed
after hearing about the company's intention to appeal.  "That is
a bit disheartening," she told the Post-Intelligencer, noting
that the oil spill happened 15 years ago.  "I'm an attorney so I
know these things take time.  But it's been going on and on."

Jerry McCune of Cordova, Alaska, said he was happy about the
court decision but is taking it with a grain of salt.  "It's
been a long time," he told the Post-Intelligencer. "It's time to
get this thing over."

"I'm very pleased. It's the right result, far too late,"
plaintiffs' attorney David Oesting said during a phone interview
from his Anchorage office.  "We've shut the final trial
courthouse doors on this one."


GUANTANAMO DETAINEES: Court Stops Lower Court Ruling in Lawsuit
---------------------------------------------------------------
United States Supreme Court Justice Sandra Day O'Connor granted
a request for the Bush administration to stop a lower court from
communicating with a detainee in Guantanamo Bay, Cuba, the
Associated Press reports.

The government has been detaining about 650 men, mostly Muslims,
essentially incommunicado in Cuba.  The military asserts that
they were picked up overseas on suspicion of terrorism.  Because
of this, they may be detained without charges or trial.

A lawsuit was filed on behalf of the detainees.  Recently, the
United States Ninth Circuit Court of Appeals ruled in December
that Guantanamo prisoners should be allowed to see lawyers and
have access to courts.

Solicitor General Theodore Olson asked the high court to block
any developments in the suit, until it decides this year, in a
separate case, whether Guantanamo detainees may contest their
captivity in American courts.

Justice O'Connor granted the government's request to put the
appeals court ruling on hold, but she said the high court could
reconsider after it hears from lawyers for the detainee, Falen
Gherebi.


IMS/CPAs & ASSOCIATES: SEC Orders Distributions Paid To Clients
---------------------------------------------------------------
The Securities and Exchange Commission ordered that
distributions be paid to 28 advisory clients of IMS/CPAs &
Associates (IMS) pursuant to a plan of disgorgement previously
approved in the Matter of IMS/CPAs & Associates, Vernon T. Hall,
Stanley G. Hargrave and Jerome B. Vernazza.  

On November 5, 2001, the Commission issued an opinion in this
administrative proceeding finding that an investment adviser,
IMS, and its control persons Mr. Hall, Mr. Hargrave and Mr.
Vernazza, misrepresented in documents filed with the Commission
and distributed to its advisory clients that they were not
receiving compensation for investment recommendations.  

The Commission held that respondents violated Section 10(b) of
the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.  
The Commission also held that IMS and Mr. Vernazza violated
Sections 206(1) and 206(2) of the Investment Advisers Act of
1940 and that Hall and Mr. Hargrave aided and abetted and caused
the violations by IMS.  

The Commission suspended the registration of IMS for six months;
suspended the individual defendants from being associated with
an investment adviser for six months; ordered respondents to
cease and desist from committing or causing any violations and
any future violations of the provisions they were found to have
violated; and ordered respondents jointly and severally to
disgorge $75,032.78 minus the amount Mr. Vernazza refunded to
clients, plus prejudgment interest from August 1, 1996.  


MUTUAL FUNDS: Panel To Decide Where To Send Investor Fraud Suits
----------------------------------------------------------------
A judicial panel is set to determine on Thursday which court
should handle hundreds of lawsuits filed against the $7 trillion
mutual-fund industry over fraudulent practices, the Dow Jones
Business News reports.

The suits were initiated after New York Attorney General Eliot
Spitzer and the Securities and Exchange Commission announced
they were investigating fund-industry practices, particularly on
whether fund companies allowed some customers to engage in
after-hours trading and market timing, the rapid buying and
selling of fund shares that can reduce performance and increase
fees for long-term shareholders.

The suits uniformly charged fund advisory firms committed fraud,
misled investors and breached their fiduciary duty to act in the
best interest of shareholders.  Some also charge fund executives
with mismanagement, conspiracy and unjust enrichment through
improper personal trading in funds they managed, Dow Jones
reports.

The judicial panel will decide whether to consolidate the cases
in New York federal court of to scatter them to federal courts
close to the fund companies' headquarters.  Fund firms are
rooting for a home-field approach, while attorneys for fund
investors generally favor having cases handled in Manhattan,
which has extensive experience in securities-fraud cases.

Some plaintiffs' lawyers are suing in state courts, where they
believe it may be easier to make charges stick against fund
advisors, Dow Jones reports.  Efforts to move such cases to
federal courts are up in the air and may not be decided for
months.

"Something almost certainly will stick here," predicts James
Benedict, a partner with the law firm Clifford Chance LLP, in
New York, who discussed the suits at a recent Mutual Fund
Directors Association meeting in Washington, D.C., Dow Jones
reports.

"I'm not sure how necessary the suits are, given that fund
companies have promised to reimburse shareholders for any
damages," Russ Kinnel, director of mutual-fund analysis at
Morningstar Inc., the Chicago-based investment researcher, told
Dow Jones.

Some fund shareholders could get stuck footing the bill for
legal expenses in cases where the fund itself is named in a
class action along with the fund advisor or distributor,
attorneys point out.  "This is all about damages," Mr. Westle
said.  "If you're trying to right the wrong that was done to
shareholders, they shouldn't end up paying the costs of a legal
defense in a class action."

Plaintiffs' lawyers say funds may recover legal expenses and
predict costs will be trivial compared to the benefits to
investors.  Already, class actions have created "enormous
benefits" by improving fund practices, Bruce Leppla, an attorney
with Lieff, Cabraser, Heimann & Bernstein in San Francisco, told
Dow Jones.

Restitution to investors through settlements with federal and
state regulators may not be sufficient, however, Mr. Leppla
indicated.  He said class-action lawsuits may recover additional
money for fund investors if they can demonstrate fund companies
didn't pony up enough or minimized losses.  Return of some
portion of fees paid during periods of trading abuses also might
result if investors can prove managers were overpaid, he added.

Some consolidation is likely, predicts Melvyn Weiss, a senior
partner with the law firm of Milberg, Weiss, in New York. The
firm has brought class-actions against Janus, Strong Capital
Management, and other mutual-fund companies in federal court,
and favors limited consolidation that will bring together cases
targeting the same fund family, Dow Jones reports.


NEW YORK: Reaches $20M Settlement With Armenian Genocide Victims
----------------------------------------------------------------
New York Life Insurance Co. reached a $20 million settlement
with descendants of some 1.5 million Armenians who were killed
nearly 90 years ago in the Turkish Ottoman Empire for the
lawsuit seeing unpaid life insurance benefits, the Associated
Press reports.

The suit, filed in the United States District Court in
California, seeks justice for survivors of those killed during
"a deliberate, systematic and government-controlled genocide
that began in April 1915," state Insurance Commissioner John
Garamendi, who helped negotiate the agreement, told AP.

Armenians have long asserted that 1.5 million people were
executed between 1915 and 1919 by Turkish authorities who
accused them of helping the invading Russian army during World
War I.  Turkey has rejected the genocide claim, saying Armenians
were killed in civil unrest during the collapse of the Ottoman
Empire.  France and Russia are among countries that have
declared the killings a genocide, but the United States has not
made such a declaration.

The settlement will help bring justice to survivors of those
killed during the said period, Mr. Garamendi states.  Brian
Kabateck, an attorney of Armenian descent who represented the
plaintiffs, told AP the settlement is a step toward winning U.S.
recognition of the Armenian genocide.

Hopefully, a large company like New York Life paying a
settlement will go a long way toward achieving acknowledgment,''
Mr. Kabateck said.  "Certainly the Armenian genocide deserves as
much acknowledgment as the Holocaust and other tragedies of the
20th century."

Attorney Mark Geragos, who is Armenian and represented the
plaintiffs in the class-action federal lawsuit, told AP this is
the first lawsuit of its kind settled in a U.S. court by a
private entity.  "New York Life really stepped up to the plate,"
he said.

Sy Sternberg, chairman and chief executive of New York Life,
said the company was more than willing to settle the claims,
having first tried to do so in 1915.  "When it became clear that
many of our Armenian policyholders perished in the tragic events
of 1915, New York Life hired an Armenian lawyer in the region to
assist the heirs of those who died, so as to promptly pay
claims," Mr. Sternberg said.

Mr. Geragos said the case also brought to light invaluable
historical records on the people who died in the massacre. The
records will be posted on a Web site available to families
wanting to trace their ancestors' histories.

Although the case was brought in Southern California, which has
the nation's largest Armenian-American population, the
settlement is open to claims from survivors worldwide.  The
agreement must be approved by U.S. District Judge Christina
Snyder, who has scheduled a hearing for February 15.


NORTHWEST AIRLINES: NASA Administrator Testifies in Senate Probe
----------------------------------------------------------------
A NASA administrator testified in favor of Northwest Airlines
before the members of the Seante Commerce, Science and
Transportation Committee, saying the space agency took utmost
care in preserving the privacy of passengers listed on a
database that Northwest Airlines gave to the government for
analysis soon after the September 11, 2001 terrorist attacks,
The North County Times reports.

Last week, Northwest revealed that it participated in the NASA
program after the terrorist attacks to assist the government's
search for technology to improve aviation security.  "Northwest
Airlines had a duty and an obligation to cooperate with the
federal government for national security reasons," the airline
said, an earlier Class Action Reporter story (January 20, 2004)
reports.

Passengers then filed a lawsuit in the United States District
Court in St. Paul, Minneapolis, alleging that the airline
violated its own privacy policy as well as federal and state
laws with the disclosure.  

In his testimony, Sean O'Keefe said that the air carrier asked
NASA to conduct an analysis after September 11.  The space
agency planned to use its scientific and computational expertise
to try to do a security analysis to find trends or patterns that
might not be apparent, he said, The North County Times reports.
Information on the 18 disks was so elaborately encrypted that
after a year of work, only two days worth of data could be
extracted and NASA returned the information to the airline.

Sens. Ron Wyden, D-Ore., George Allen, R-Va., and Kay Bailey
Hutchison, R-Texas, said they have heard from constituents
concerned that their privacy was violated and urged NASA to
conform with federal privacy laws, the North County Times
reports.

While it was in NASA's possession, the passenger data was
treated as "very, very classified information," Mr. O'Keefe
said.  It was locked in a safe and few scientists were given
access to it.  "We've been very committed to ensuring our folks
understand this needs to (conform with) the Privacy Act, but
shouldn't deter anyone from thinking proactively and
aggressively," he said.


PRESTO TELECOMMUNICATIONS: SEC Sues To Stop CA Securities Fraud
---------------------------------------------------------------
The Securities and Exchange Commission filed an emergency action
to halt an ongoing securities fraud scheme perpetrated by Alfred
Louis "Bobby" Vassallo, Jr., 53, of La Jolla, California and his
company, Presto Telecommunications, Inc. of San Diego.  

Presto, which purports to be an international telecommunications
company "positioned to become Latin America's Premier Integrated
Communications Provider," has raised over $11 million from the
sale of stock to date.  

The U.S. District Court for the Southern District of California
granted the relief that the Commission sought, ordering the
freezing of Presto's and Mr. Vassallo's assets, the appointment
of a temporary receiver over Presto, and other relief.
     
The Commission's complaint, filed in federal court in San Diego,
alleges that the defendants induced more than 800 investors in
42 states to invest in Presto with promises that the company has
significant business relationships with AT&T, Sprint, MCI, and
Qwest.  These four telecommunications companies have purportedly
expressed interest in acquiring Presto or in making capital
investments in the company.   

Further, investors are advised that Presto is a "partner" to and
has "alliances" with Cisco Systems and Unisys.  Finally,
investors are told that the U.S. Commerce Department was
lobbying Mexican telecommunications regulators on Presto's
behalf, and that their funds will be used to build and operate a
telecommunications network in Mexico.
     
According to the complaint, these representations are false.  
Additionally, the complaint alleges that while Mr. Vassallo and
others have represented that investor funds would be used to pay
Presto's business expenses, primarily fiber optics and
equipment, in fact only 16% of investor and company funds were
used for equipment and fiber, and Mr. Vassallo himself has
misappropriated at least $1.2 million in investor and company
funds for personal expenses.  These expenses include jewelry,
luxury automobiles, a down payment on an expensive home,
mortgage payments, home improvements, political and charitable
contributions, and school tuition for his children.
     
The complaint further alleges that Presto has failed to disclose
to prospective investors that the license its affiliated entity
received from the Mexican government in 1998 to operate a
commercial telecommunications network in Mexico was, in fact,
the subject of revocation proceedings that commenced in 2001.  
Only recently has Presto informed investors that revocation
proceedings had begun.
     
In its lawsuit, the Commission obtained an order freezing the
assets of Presto and Mr. Vassallo, an accounting, an order
preventing destruction of documents, an order appointing a
temporary receiver over Presto and temporarily enjoining Presto
and Vassallo from future violations of the registration and
antifraud provisions of the federal securities laws, Sections
5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section
10(b) of Securities Exchange Act of 1934 and Rule 10b-5
thereunder.  The Commission also seeks preliminary and permanent
injunctions, and other relief, including disgorgement and civil
penalties against Presto and Mr. Vassallo.   

A hearing on whether a preliminary injunction should be issued
against the defendants and whether a permanent receiver should
be appointed over the company is scheduled for February 9, 2004,
at 11 AM.  The suit is styled "SEC v. Presto Telecommunications,
Inc., and Alfred Louis Vassallo, Jr. aka Bobby Vassallo, Civil
Action No. 04CV00163IEG(POR) SDCA."
     

SAFETY-KLEEN CORPORATION: NY Court Enters Judgment V. Ex-Execs
--------------------------------------------------------------
The Honorable Charles S. Haight, U.S. District Judge for the
Southern District of New York, has entered a final judgment
against defendants Kenneth W. Winger, former Chief Executive
Officer of Safety-Kleen Corporation and Paul R. Humphreys, the
former Chief Financial Officer.

The defendants were permanently enjoined from violating the
antifraud provisions of the federal securities laws, Section
17(a) of the Securities Act of 1933, and Section 10(b) of the
Securities Exchange Act of 1934, and Rule 10b-5 thereunder.  Mr.
Humphreys was also enjoined from violating books and records
provisions, Section 13(b)(5) of the Exchange Act and Rule 13b2-1
thereunder.  Further, both defendants were enjoined from
violating the lying to auditors provision, Exchange Act Rule
13b2-2, and both were permanently barred from serving as an
officer or director of a public company.   

The judgment orders Mr. Winger to pay approximately $440,000 in
disgorgement, prejudgment interest and civil penalties, and
orders Humphreys to pay more than $150,000.  The judgment was
entered upon default.
     
The Commission's complaint, which was filed on December 12,
2002, alleged that from at least November 1998 through March
2000, Safety-Kleen's senior executives engaged in a massive
accounting fraud by materially overstating the company's revenue
and earnings in periodic reports filed with the Commission and
in press releases issued by the company.  They carried out the
scheme primarily by making inappropriate quarterly accounting
adjustments for the purpose of meeting Wall Street pro forma
earnings expectations.  The executives also fraudulently
recorded approximately $38 million of cash that was generated by
entering into speculative derivatives transactions, further
distorting the company's true financial picture.
     
The complaint alleged that Mr. Humphreys orchestrated the
fraudulent scheme.  As set forth in the complaint, he engaged in
the illegal conduct to create the illusion that predicted cost
savings and business synergies from two large acquisitions were
being achieved.  In fact, the expected savings had not
materialized, the company's business was declining rapidly, and
the company was facing a severe cash flow problem.  To make up
for the earnings shortfall, Mr. Humphreys recorded, or directed
others to record, numerous adjustments that were not in
conformity with generally accepted accounting principles.  

According to the complaint, Mr. Winger signed Safety-Kleen's
periodic reports and knew or was reckless in not knowing that
the financial statements contained in those reports were
materially false and misleading.  Finally, the complaint alleged
that Mr. Humphreys and Mr. Winger knew or were reckless in not
knowing that the company's quarterly earnings press releases
were materially false and misleading.
          
The entry of the final judgment against Mr. Winger and Mr.
Humphreys concludes the litigation brought by the Commission
arising out of the financial fraud at Safety-Kleen.  Previously,
Safety-Kleen and former employees William D. Ridings and Thomas
W. Ritter, Jr. entered into settlements with the Commission.  
The suit is styled "SEC v. Safety-Kleen Corp., et al., USDC,
SDNY, 02 Civ. 9791 (CSH)."


SOUTH AFRICA: U.S. Enters Welding Rod Inquiry for Lawsuit
----------------------------------------------------------
New Orleans law firm Sibley has joined a South African law firm
in conducting a probe into the role of producers of welding rods
in causing a disease resembling Parkinson's disease in welders
in Cape Town's ship repair industry, Africa News Services
reports.

Welders who have had long-term exposure to the fumes created
while doing arc welding are said to be at risk of neurological
problems due to manganese poisoning.  Most standard welding rods
used in arc welding contain a large percentage of manganese, and
scientific studies have tied these rods to neurological problems
often associated with Parkinson's disease.

At the heart of the local investigation is the ship repair
industry, where investigators believe most of the South African
victims will be found.  US attorney Billy Phillips, representing
the New Orleans law firm Sibley, is in Cape Town to investigate
whether US-made welding rods have caused manganese poisoning, or
manganism, among local welders and whether the local cases could
be taken up in the class action suits.

Mr. Phillips told the Africa News Service possible actions were
not aimed at engineering and welding firms, but at the producers
of the welding rods.  "The makers of these rods knew the
dangers, but failed to adequately warn the users of their
products," he said.  "The only way to prevent manganism is to
wear a full breathing apparatus while welding with these rods,
but this was never made known to the industry or their employees
. Where warnings had been printed on packaging, they were
completely inadequate."

Mr. Phillips said he had linked up with local attorney Jacqui
Sohn on the case.  Advertisements calling on welders who
believed they were suffering from symptoms akin to Parkinson's
disease had been placed in daily newspapers.

Ms. Sohn told Africa News Service while rods made locally and
brands from Japan and Botswana, were widely used in this
country, products imported from the U.S. were also common.  "We
first want to investigate the U.S. connection and piggy-back our
cases on the American class action," she said, "then we will
begin to look at products from elsewhere . We are especially
looking for older welders who can tell us about the 1970s and
1980s."


STA-RITE INDUSTRIES: Recalls 8.5T Pool Filters For Injury Hazard
----------------------------------------------------------------
Sta-Rite Industries, Inc. of Delavan, Wisconsin, in cooperation
with the U.S. Consumer Product Safety Commission (CPSC), is
voluntarily recalling 8,500 Sta-Rite System 2 and AquaTools
Filters and Filter Systems since the Posi-LokT locking ring,
which secures the filter's upper tank shell to the lower tank
shell (see diagram below), can disengage from the lower tank
shell allowing the top shell of the filter to blow off causing
injury to nearby consumers.

Sta-Rite has received three reports of the upper tank shell
blowing off, including two reports of minor scratches and
bruises to hands and/or arms of individuals servicing the
filters.

The modular pool filters are designed for use with above ground
pools and small in-ground pools. These filters are used to
remove particles from the water. The System 2 product line is
sold under the brand names "Sta-Rite" and "AquaTools," located
on a decal on the upper tank shell. The cylindrical filter tank
measures 27 inches high and 18 inches in diameter. Sta-Rite
System 2 filter tanks were sold with model numbers beginning
with PLM or PLD and AquaTools filter tanks were sold with model
numbers beginning with AT84100, AT84150 or AT82130. Serial
numbers are located on the nameplate decal on the upper tank
shell. Only filters with the following serial numbers are
affected (the 5th character is irrelevant for the purposes of
this recall):
1A03_ 1B03_ 1C03_
1D03_ 1EH03_ 1F03_
1G03_ 1H03_ 1J03_

If the Posi-LokT locking ring has the phrase "Lubricate Tank "O"
Ring - see instructions" molded into it, the ring has been
updated and no further action is necessary for that filter.
Sold at: Pool equipment retail stores and wholesale distribution
branches or installed by professional installers nationwide from
January 2003 through October 2003 for between $400 and $800.

Consumers are urged to check the filter model plates to locate
model numbers and serial numbers. Consumers should not disturb
their filters and contact Sta-Rite toll-free at (866) 681-9148
to confirm the identity of their filter and receive a free
replacement Posi-LokT locking ring and installation
instructions. In addition, Sta-Rite will reimburse consumers $10
for each Posi-LokT locking ring that is shipped back to them and
provide a pre-paid box for shipping. For consumers who are not
comfortable with the replacement procedure, Sta-Rite will
arrange to have the affected filters professionally repaired at
no cost to the consumers.

For more information, consumers should call Sta-Rite toll free
at (866) 681-9148 between 8 a.m. and 5 p.m. ET Monday through
Friday or visit the firm's Web site at www.starite.com


UNITED STATES: Displaced Software Workers Sue Labor Department
--------------------------------------------------------------
The United States Department of Labor faces a class action filed
in the United States Court of International Trade in New York by
the programmers that the department laid off, the Boston Globes
reports.

The suit charges the department of illegally denying them job-
training benefits available to workers in industries where jobs
have moved overseas.  The suit seeks an order forcing the
department to make laid-off software workers eligible for weekly
cash payments and other benefits under the Trade Adjustment
Assistance program, begun in the 1960s to soften the blow to US
workers of increased imports or transfers of jobs overseas.  
Under the program, eligible workers receive benefits such as
vouchers for job-training classes and cash payments after
regular unemployment compensation runs out.

In recent years, American firms have laid off thousands of
software workers and other high-technology employees, and
looking for employees in India and other developing countries
where labor is inexpensive.  Some displaced workers have begun
turning to the TAA for help.

The department has ruled many software workers ineligible for
TAA benefits, because software and information-technology
services don't qualify as products, or "articles," under TAA
guidelines.  Only workers who made more tangible products, such
as clothing and furniture, can get TAA benefits.

The suit alleges that about 10,000 software workers ruled
ineligible under current Labor Department practices should be
eligible for TAA benefits.

Labor Department spokeswoman Lorette Post said the department
doesn't comment on pending litigation, the Boston Globe reports.


                     Asbestos Alert


ASBESTOS LITIGATION: Allegheny Energy Battles 1,310 Open Cases
--------------------------------------------------------------
Allegheny Energy Inc. reports in its latest regulatory filing
with the Securities and Exchange Commission that as of December
2003, 1,310 asbestos-related cases were open against the
company.

Allegheny, together with its affiliate companies, Monongahela,
Potomac Edison, and West Penn have been named as defendants
along with multiple other defendants in pending asbestos cases
involving multiple plaintiffs.

While Allegheny believes that all of the cases are without
merit, Allegheny cannot predict the outcome of the litigation.
Allegheny has accrued a reserve of $4,000,000 as of September
30, 2003, related to the asbestos cases as the potential cost to
settle the cases to avoid the anticipated cost of defense, the
filing said.

As of the same period, Allegheny received insurance recoveries
of $600,000 related to these asbestos cases. The company also
received insurance recoveries of $2,400,000, net of $500,000 of
legal fees, related to these asbestos cases.   

On Dec. 19, 2003, Allegheny settled and/or dismissed 4,314 of
the 5,624 cases; however, the final dismissal order from the
court was received recently. These settlements and/or dismissals
did not result in a material change to the accrued contingent
reserve.  As of Dec. 31, 2003, Allegheny had 1,310 open cases
remaining.  


ASBESTOS LITIGATION: St. Paul Says Court Approves Asbestos Deal
---------------------------------------------------------------
The St. Paul Companies announced that the U.S. Bankruptcy Court
for the Northern District of California has issued an order
approving The St. Paul's June 2002 asbestos-related settlement
with MacArthur Co., Western MacArthur Co. and Western Asbestos
Company and confirming the MacArthur Entities' proposed Plan of
Reorganization.

The court order issued by a bankruptcy judge has capped its
liability in a California asbestos case, according to an article
by the Associated Press.

In 2002, The St. Paul paid $987,000,000 to settle a case titled
Western MacArthur Co. vs. United States Fidelity & Guaranty Co.,
the report said.  The insurer said the judge's order approved
the settlement as part of the reorganization plan for Western
MacArthur and two other companies.

Under the order, all current and future claims against the
companies will be paid solely from the trust established by the
plan, and The St. Paul will have no further liability for
asbestos-related claims against them, the insurance company told
AP.

The St. Paul Companies, Inc. offers liability and casualty,
property, workers' compensation, auto, marine and other
commercial coverage to companies in North America and in the UK.


ASBESTOS LITIGATION: Equitas, Halliburton Settle Claims for 575M
----------------------------------------------------------------
Equitas and Halliburton Co. recently declared that they reached
an agreement to settle asbestos insurance claims in a deal that
will pay the oil giant $575,000,000, Reuters reports.

The companies said in a statement the agreement resolves all
Halliburton asbestos claims against Lloyd's of London, which set
up Equitas in 1996 to handle certain liabilities from the 1980s
and 1990s. Under the agreement, which Equitas said caps the
largest direct liability it faced, Halliburton will receive $575
million in two payments over an 18-month period, the report
said.

The reinsurer said in a statement that it has now resolved five
of its 10 largest asbestos exposures and that the company was
willing to have similar discussions with any of its
policyholders interested in reaching a "realistic" settlement,
Reuters reports.

Halliburton, founded in 1919, is one of the world's largest
providers of products and services to the petroleum and energy
industries. The company serves its customers with a broad range
of products and services through its Energy Services and
Engineering and Construction Groups.  


ASBESTOS LITIGATION: Judge Thwarts ACandS Reorganization Plan
-------------------------------------------------------------
A federal bankruptcy judge has refused to confirm the Chapter 11
reorganization plan of asbestos defendant ACandS Inc. after
finding that the plan was unduly influenced by asbestos
plaintiffs' lawyers and would treat some asbestos claimants
unfairly, Business Insurance reports.

U.S. Bankruptcy Judge Randall J. Newsome recently rejected
ACandS's prepackaged Chapter 11 plan after hearing objections
from units of Travelers Property Casualty Corp., which is the
longtime liability insurer of the former Armstrong World
Industries insulation-contracting unit, the article said.

Judge Newsome found that a committee dominated by asbestos
plaintiffs' lawyers largely dictated the terms of a trust fund
for claimants, chose its trustee and created several categories
of secured claimants, many of whom were represented by lawyers
on the committee.

The result was a "fundamentally unfair" plan that would treat
claimants with similar conditions differently, discriminate
between current and future claimants and conceivably could pay a
claimant with no symptoms of disease in full while denying any
payment to a claimant with asbestos-related cancer, the judge
ruled.

"Given the unbridled dominance of the committee in the debtor's
affairs and actions during the pre-petition period... and the
obvious self-dealing that resulted from control of the debtor,
it is impossible to conclude that the plan was consistent with
the objectives and purposes of the bankruptcy code," the judge
found.

Claimants "should be compensated based on the nature of their
injuries, not based on the influence and cunning of their
lawyers," Judge Newsome wrote.

According to Business Insurance, representatives of ACandS could
not be reached for comment.

Unless the ruling is overturned on appeal, ACandS will have to
start over in developing a new Chapter 11 plan, said Barry R.
Ostrager, a lawyer with Simpson, Thacher & Bartlett in New York,
representing Travelers, reports the Business Insurance.


ASBESTOS LITIGATION: Owens-Illinois Sees End of Asbestos Woes
----------------------------------------------------------------
Glass bottle maker Owens-Illinois, Inc. sees an end to its
asbestos liability despite an increase in related lawsuits
against the company, the Associated Press reports.

Owens-Illinois Inc. took a charge of $450,000,000 in the fourth
quarter of last year to bolster its reserve for future asbestos-
related lawsuits, which contributed to a fourth-quarter loss of
about $1,100,000,000, the report said.

The Toledo-based company remains optimistic that the asbestos
lawsuits will be wiped clean in six or seven years, chief
financial officer Thomas Young told AP.  "Our claims against us
will eventually disappear," Young recently said during a
conference call.

He's confident that the lawsuits will diminish because Owens-
Illinois stopped making insulation with asbestos in 1958 and
because its role was less than other companies.  "Our exposure
is limited," Young told AP.

The number of lawsuits filed against Owens-Illinois increased in
2003 - growing from 24,000 pending cases at the end of 2002 to
about 29,000 pending cases at the end of last year.  Mr. Young
said that attempts by state and federal lawmakers to set limits
on asbestos litigation created a spike in filings in the last
year.

In the second quarter of last year, the company said it received
7,000 new claims and lawsuits that were filed in advance of a
Mississippi tort reform law.  Former asbestos makers also are
awaiting a vote in Congress on legislation that would create a
fund of more than $100 billion, financed by businesses and
insurance companies, to pay asbestos victims.

Senate Republicans and Democrats couldn't agree to terms in the
bill last year.  Lawmakers supporting the proposal say asbestos
liability is driving companies out of business and leaving
victims with little or no money for medical bills.  Ohio
lawmakers are working on legislation that could wipe away more
than half of the 40,000 asbestos cases now pending in state
courts.  The bill, which passed the House last year, will go
before the Senate.  It would set medical standards for asbestos-
related lawsuits.

Owens Corning is the largest manufacturer of glass containers
all over America, Australia and New Zealand. The company also
produces plastic packaging.


ASBESTOS LITIGATION: U.S. Steel Corp. Faces 3,750 Asbestos Suits
----------------------------------------------------------------
U.S. Steel Corporation recently updated its asbestos-related
litigation through its quarterly report filed with the
Securities and Exchange Commission saying it is a defendant in
3,750 asbestos cases as of September 30, 2003.  U.S. Steel said
that there are around 16,000 plaintiffs who have filed claims
alleging injury resulting from exposure to asbestos.

Like many other cases of this nature, these lawsuits involve
multiple defendants, typically from 50 to more than 100.

More than 15,000 of the plaintiffs are in cases filed in
Mississippi, Ohio and Texas, jurisdictions that permit filings
with massive numbers of plaintiffs.

Based on its experience, the actual number of plaintiffs who
ultimately assert claims is likely to be a small fraction of the
total number of plaintiffs, the filing said.  The company said
that while it has excess casualty insurance, these policies have
multi-million dollar self-insured retentions.

As of presstime, the company has not received any payments under
these policies relating to asbestos claims, the filing said.  
The company said that in most cases, this excess casualty
insurance is the only insurance applicable to asbestos claims.
  
U.S. Steel is currently a defendant in cases in which a total of
about 200 plaintiffs allege that they are suffering from
mesothelioma.


ASBESTOS LITIGATION: Crane Co. Faces 68,606 Pending Lawsuits
------------------------------------------------------------
Crane Co. reports in its latest regulatory filing with the
Securities and Exchange Commission that it was a defendant in
68,606 pending asbestos claims as of December 31, 2003.  The
company said that 24,000 of the claims were filed in New York by
one firm and several firms in Mississippi filed 30,000.

According to its filing, the company said that its liability for
asbestos-related claims before insurance recoveries was
$193,000,000 as of Dec. 31, or $116,000,000 after probable
insurance recoveries.

The company said that about 60% of the asbestos liability
represented the estimated cost of unasserted claims against the
company as of December 31.  The company's asbestos liability is
based on its estimated cost of pending claims plus unasserted
claims through 2007.

The industrial manufacturer said that the estimated liability
for New York claims includes a substantial discount due to the
company's high dismissal experience in the jurisdiction.


ASBESTOS LITIGATION: ABB Eyes Asbestos Settlement at 2Q End
-----------------------------------------------------------
ABB Ltd is targeting a return to profit in the current year, and
expects to reach a settlement to its long-running asbestos case
in the US by the end of the second quarter at the latest, says
CEO Juergen Dormann, according to AFX News.

In an interview with Die Welt, Mr. Dormann said, "We aim to
return (to profit) in 2004."  He did not specify a profit line.

ABB is "more than 90 pct (confident)" that the asbestos
litigation will conclude successfully, he told the newspaper.  
"In comparison with the situation of a year ago, the asbestos
issue is of only limited concern to me. Our expectations have
not changed. So this situation will be resolved, if not in the
first quarter then in the second," he said.

The Swiss Engineering giant serves utility, industrial and
commercial customers.
        

ASBESTOS LITIGATION: Former Grace Plant May Have Asbestos
---------------------------------------------------------
The federal government is studying 28 plants, including one St.
Louis, that used to work with a potentially lethal form of
asbestos, reports the Associated Press.

The plant was once owned by W.R. Grace and Co. and used to
process asbestos-contaminated vermiculite ore from a mine in
Libby, Mont., the St. Louis Post-Dispatch recently reported.

The St. Louis plant was run by W.R. Grace from 1966 to 1988, and
according to the EPA, received more than 200 million pounds of
the tainted ore. It is one of 28 plants that received the
largest amount of the ore, the report said.

According to an article in the News-Leader.com, facilities like
the one in St. Louis were often known as expansion plants. They
used furnaces to expand millions of pounds of ore into popcorn-
like vermiculite. The substance was used in the manufacturing of
some wallboard, fireproofing, plant food, lawn care items and
other horticultural products. It was mostly used, however, in
attic and wall insulation.

The federal government has said millions of homes and businesses
still contain the insulation, and warns against disturbing it.  
The federal government knew for decades that both the mine and
the plants that processed the tainted vermiculite presented a
danger to workers and nearby residents. EPA data from 1980
indicates there were residents less than a mile from the St.
Louis site and that they were exposed to high levels of the
asbestos-tainted ore, the report said.

The Agency for Toxic Substances and Disease Registry, which
Congress created to evaluate the risk to public health at
Superfund and other environment danger areas, has released five
of its reports on the plants.

Scott Mall, a spokesman for the disease registry, issued a
warning after the first round of evaluations of expansion plants
in Illinois, California, Colorado, Maryland and Nebraska.

"Anyone who worked in these plants that processed asbestos-
contaminated vermiculite from Libby, Mont., or had family
members who worked there, or washed the worker's clothes or
lived anywhere nearby, should see a physician knowledgeable
about identifying asbestos-related diseases," Mall told the
Associated Press.

Phone calls by the Associated Press to W.R. Grace offices were
not returned, according to the News-Leader report.


                   New Securities Fraud Cases


ADECCO SA: Weiss & Yourman Commences Securities Suit in E.D. NY
---------------------------------------------------------------
Weiss & Yourman, LLP initiated a class action lawsuit in the
United States District Court for the Eastern District of New
York, on behalf of purchasers of Adecco securities between March
16, 2000 and January 9, 2004, against Adecco SA and its
officers.

The complaint charges the defendants with violations of the
Securities Exchange Act of 1934. The complaint alleges that
defendants issued false and misleading statements, which
artificially inflated the stock.

For more information, contact James E. Tullman, David C. Katz,
or Mark D. Smilow, by Mail: The French Building, 551 Fifth
Avenue, Suite 1600, New York, New York 10176, by Phone:
(888) 593-4771 or (212) 682-3025, or by E-mail: info@wynyc.com.


AMERICAN BUSINESS: Lasky & Rifkind Files Securities Suit in PA
--------------------------------------------------------------
The law firm of Lasky & Rifkind, Ltd. initiated a lawsuit in the
United States District Court for the Eastern District of
Pennsylvania, on behalf of persons who purchased or otherwise
acquired publicly traded securities of American Business
Financial Services Inc. between January 27, 2000 and June 25,
2003, inclusive, against American Business, and:

     (1) Anthony J. Santilli,

     (2) Richard Kaufman, and

     (3) Albert W. Mandia

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. Specifically, the Complaint alleges that
during the Class Period defendants failed to disclose that the
Company used a deception to take homes from delinquent borrowers
in order to depress its delinquency rate, that the deception
allowed the company to circumvent the normal foreclosure process
more frequently, and that the deception allowed the company to
reduce its delinquency rate in its $3.6 billion loan portfolio,
as a result allowing it to securitize more loans.

On June 13, 2003 the Company disclosed it had received a civil
subpoena from the U.S. Department of Justice requesting that
American Business provide documents relating to its mortgage
loan transactions and securitization agreements. On June 26,
2003, the Company disclosed that it anticipated incurring a loss
for the quarter and year ended June 30, 2003 due to its
inability to complete its quarterly securitizartion of loans. In
response to this news, shares of American Business fell $7.40
per share.

For more information, contact (800) 495-1868 to speak with an
advisor.


AMERICAN BUSINESS: Rabin Murray Files Securities Suit in E.D. PA
----------------------------------------------------------------
Rabin Murray & Frank, LLPA initiated a class action complaint in
the United States District Court for the Eastern District of
Pennsylvania, on behalf of all persons or entities who purchased
or otherwise acquired American Business Financial Services, Inc.
(ABFI) securities during the period between January 27, 2000 and
June 25, 2003, both dates inclusive against ABFI, and:

     (1) Anthony J. Santilli,

     (2) Richard Kaufman, and

     (3) Albert W. Mandia

The Complaint alleges that defendants violated section 10(b) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder by the Securities and Exchange Commission. The
Complaint alleges that defendants made materially false and
misleading statements concerning the Company's delinquency rate
and interest income.

In particular, the Complaint alleges:

     (i) that the Company used a deception to take homes from
         delinquent borrowers in order to keep its delinquency
         rate low;

    (ii) that the deception allowed the Company to skip the
         normal foreclosure process more frequently;

   (iii) that the deception enabled the Company to reduce its
         delinquency rate in its $3.6 billion loan portfolio;

    (iv) that the Company was able to securitize more loans as
         result of reducing its delinquency rate in its loan
         portfolio; and

     (v) that the Company was thus able to collect interest
         income from its securitized loans and inflate its
         financial results.

The Complaint alleges that as a result of these false and
misleading statements and omissions of material fact the price
of ABFI securities were artificially inflated throughout the
Class Period causing plaintiff and the other members of the
Class to suffer damages.

For more information, contact Eric J. Belfi, or Aaron D. Patton,
by Phone: (800) 497-8076 or (212) 682-1818, Fax: (212) 682-1892,
or by E-mail: info@rabinlaw.com.


DEUTSCHE BANK: Emerson Poynter Lodges Securities Suit in S.D. NY
----------------------------------------------------------------
The law firm of Emerson Poynter, LLP initiated a class action
lawsuit in the Southern District of New York, on behalf of
purchasers of Scudder 21st Century Growth Fund (Nasdaq:SCNBX),
(Nasdaq:SCNCX); Scudder Aggressive Growth Fund (Nasdaq:KGGBX),
(Nasdaq:KGGCX); Scudder Blue Chip Fund (Nasdaq:KBCBX),
(Nasdaq:KBCCX); Scudder Capital Growth Fund (Nasdaq:SDGBX),
(Nasdaq:SDGCX), (Nasdaq:SDGRX), (Nasdaq:SDGTX), which are
operated by Germany-based financial services company, Deutsche
Bank AG, Scudder Investments, and Deutsche Investment Management
Americas Inc. and Deutsche Asset Management, Inc., between
January 22, 1999 and January 12, 2004, inclusive, seeking
remedies under the Securities Exchange Act of 1934, the
Securities Act of 1933 and the Investment Advisers Act of 1940,
against defendants Deutsche Bank AG, and: Scudder Investments,  
Deutsche Investment Management, Deutsche Asset Management, each
of the Scudder mutual funds and their registrants, and John Does
1-100.

The Funds, and the symbols for the respective Funds named below,
are as follows:

     (1) Scudder 21st Century Growth Fund   (Sym: SCNAX, SCNBX,  
         SCNCX)

     (2) Scudder Aggressive Growth Fund   (Sym: KGGAX, KGGBX,
         KGGCX)

     (3) Scudder Blue Chip Fund   (Sym: KBCAX, KBCBX, KBCCX)

     (4) Scudder Capital Growth Fund (Sym: SDGAX, SDGBX, SDGCX,
         SDGRX, SDGTX)

     (5) Scudder Dynamic Growth Fund   (Sym: KSCAX, KSCBX,
         KSCCX)

     (6) Scudder Flag Investors Communications Fund   (Sym:
         TISHX, FTEBX, FTICX, FLICX)

     (7) Scudder Global Biotechnology Fund   (Sym: DBBTX, DBBBX,
         DBBCX)

     (8) Scudder Gold & Precious Metals Fund   (Sym: SGDAX,
         SGDBX, SGDCX)

     (9) Scudder Growth Fund   (Sym: KGRAX, KGRBX, KGRCX)

    (10) Scudder Health Care Fund   Sym: SUHAX, SUHBX, SUHCX)

    (11) Scudder Large Company Growth Fund   (Sym: SGGAX, SGGBX,
         SGGCX, SCQRX)

    (12) Scudder Micro Cap Fund   (Sym: SMFAX, SMFBX, SMFCX,
         MGMCX, MMFSX)

    (13) Scudder Mid Cap Fund   (Sym: SMCAX, SMCBX, SMCCX,
         SMCRX, BTEAX, BTCAX)

    (14) Scudder Small Cap Fund   (Sym: SSDAX, SSDBX, SSDCX,
         SSDRX, BTSCX)

    (15) Scudder Strategic Growth Fund   (Sym: SCDAX, SCDBX,
         SCDCX, SCDIX)

    (16) Scudder Technology Fund   (Sym: KTCAX, KTCBX, KTCCX,
         KTCIX)

    (17) Scudder Technology Innovation Fund   (Sym: SRIAX,
         SRIBX, SRICX)

    (18) Scudder Top 50 US Fund   (Sym: FAUSX, FBUSX, FCUSX)

    (19) Scudder Contrarian Fund   (Sym: KDCAX, KDCBX, KDCCX,
         KDCRX)

    (20) Scudder-Dreman Financial Services Fund   (Sym: KDFAX,
         KDFBX, KDFCX)

    (21) Scudder-Dreman High Return Equity Fund   (Sym: KDHAX,
         KDHBX, KDHCX, KDHRX, KDHIX)

    (22) Scudder-Dreman Small Cap Value Fund (Sym: KDSAX, KDSBX,
         KDSCX, KDSRX, KDSIX)

    (23) Scudder Flag Investors Equity Partners Fund   (Sym:
         FLEPX, FEPBX, FEPCX, FLIPX)

    (24) Scudder Growth & Income Fund   (Sym: SUWAX, SUWBX,
         SUWCX, SUWRX, SUWIX)

    (25) Scudder Large Company Value Fund   (Sym: SDVAX, SDVBX,
         SDVCX)

    (26) Scudder-RREEF Real Estate Securities Fund (Sym: RRRAX,
         RRRBX, RRRCX, RRRSX, RRRRX)

    (27) Scudder Small Company Stock Fund   (Sym: SZCAX, SZCBX,
         SZCCX)

    (28) Scudder Small Company Value Fund   (Sym: SAAUX, SABUX,
         SACUX)

    (29) Scudder Tax Advantaged Dividend Fund   (Sym: SDDAX,
         SDDBX, SDDCX, SDDGX)

    (30) Scudder Flag Investors Value Builder Fund   (Sym:
         FLVBX, FVBBX, FVBCX, FLIVX)

    (31) Scudder Focus Value+Growth Fund   (Sym: KVGAX, KVGBX,  
         KVGCX)

    (32) Scudder Lifecycle Mid Range Fund   (Sym: BTLRX)

    (33) Scudder Lifecycle Long Range Fund   (Sym: BTILX, BTAMX)

    (34) Scudder Lifecycle Short Range Fund   (Sym: BTSRX)

    (35) Scudder Pathway Conservative Portfolio (Sym: SUCAX,
         SUCBX, SUCCX)

    (36) Scudder Pathway Growth Portfolio (Sym: SUPAX, SUPBX,
         SUPCX)

    (37) Scudder Pathway Moderate Portfolio   (Sym: SPDAX,
         SPDBX, SPDCX)

    (38) Scudder Retirement Fund Series V  (Sym: KRFEX)

    (39) Scudder Retirement Fund Series VI   (Sym: KRFGX)

    (40) Scudder Retirement Fund Series VII   (Sym: KRFGX)

    (41) Scudder Target 2010 Fund   (Sym: KRFBX)

    (42) Scudder Target 2012 Fund   (Sym: KRFCX)

    (43) Scudder Target 2013 Fund   (Sym: KRFDX)

    (44) Scudder Total Return Fund   (Sym: KTRAX, KTRBX, KTRCX,
         KTRGX)

    (45) Scudder Emerging Markets Growth Fund   (Sym: SEKAX,
         SEKBX, SEKCX)

    (46) Scudder Emerging Markets Income Fund   (Sym: SZEAX,
         SZEBX, SZECX)

    (47) Scudder European Equity Fund (Sym: DBEAX, DBEBX, DBECX,
         MEUEX, MEUVX)

    (48) Scudder Global Fund   (Sym: SGQAX, SGQBX, SGQCX, SGQRX)

    (49) Scudder Global Bond Fund   (Sym: SZGAX, SZGBX, SZGCX)

    (50) Scudder Global Discovery Fund   (Sym: KGDAX, KGDBX,
         KGDCX)

    (51) Scudder Greater Europe Growth Fund   (Sym: SERAX,
         SERBX, SERCX)

    (52) Scudder International Fund   (Sym: SUIAX, SUIBX,
         SUICX)

    (53) Scudder International Equity Fund   (Sym: DBAIX, DBBIX,
         DBCIX, BEIIX, BEITX, BTEQX)

    (54) Scudder International Select Equity Fund (Sym: DBISX,
         DBIBX, DBICX, DBITX, MGINX, MGIVX, MGIPX)

    (55) Scudder Japanese Equity Fund   (Sym:  FJEAX, FJEBX,
         FJECX)

    (56) Scudder Latin America Fund   (Sym: SLANX, SLAOX, SLAPX)

    (57) Scudder New Europe Fund   (Sym: KNEAX, KNEBX, KNECX,
         KNEIX)

    (58) Scudder Pacific Opportunities Fund   (Sym: SPAOX,
         SBPOX, SPCCX)

    (59) Scudder Worldwide 2004 Fund   (Sym: KWIVX)

    (60) Scudder Fixed Income Fund   (Sym: SFXAX, SFXBX, SFXCX,
         SFXRF, MFINX, MFISX)

    (61) Scudder High Income Plus Fund (Sym: MGHYX, MGHVX,
         MGHPX)

    (62) Scudder High Income Fund   (Sym: KHYAX, KHYBX, KHYCX,
         KHYIX)

    (63) Scudder High Income Opportunity Fund   (Sym: SYOAX,
         SYOBX, SYOCX)

    (64) Scudder Income Fund   (Sym: SZIAX, SZIBX, SZICX)

    (65) Scudder PreservationPlus Fund   (Sym: BTPIX, BTPSX)

    (66) Scudder PreservationPlus Income Fund (Sym: PPIAX,
         PPLCX, DBPIX)

    (67) Scudder Short Term Bond Fund   (Sym: SZBAX, SZBBX,   
         SZBCX

    (68) Scudder Short Duration Fund   (Sym: SDUAX, SDUBX,
         SDUCX, MGSFX)

    (69) Scudder Strategic Income Fund   (Sym: KSTAX, KSTBX,  
         KSTCX)

    (70) Scudder US Government Securities Fund   (Sym: KUSAX,
         KUSBX, KUSCX)

    (71) Scudder California Tax-Free Income Fund   (Sym: KCTAX,
         KCTBX, KCTCX)

    (72) Scudder Florida Tax-Free Income Fund   (Sym: KFLAX,
         KFLBX, KFLCX)

    (73) Scudder High Yield Tax-Free Fund   (Sym: NOTAX,   
         NOTBX, NOTCX, NOTIX)

    (74) Scudder Intermediate Tax/AMT Free Fund   (Sym: SZMAX,
         SZMBX, SZMCX)

    (75) Scudder Managed Municipal Bond Fund   (Sym: SMLAX,
         SMLBX, SMLCX, SMLIX)

    (76) Scudder Massachusetts Tax-Free Fund   (Sym: SQMAX,
         SQMBX, SQMCX)

    (77) Scudder Municipal Bond Fund   (Sym: MGMBX, MMBSX)

    (78) Scudder New York Tax-Free Income Fund   (Sym: KNTAX,
         KNTBX, KNTCX)

    (79) Scudder Short Term Municipal Bond Fund   (Sym: SRMAX,
         SRMBX, SRMCX, MGSMX, MSMSX)

    (80) Scudder EAFE r Equity Index Fund   (Sym: BTAEX, BTIEX)

    (81) Scudder Equity 500 Index Fund   (Sym: BTIIX)

    (82) Scudder S&P 500 Stock Fund   (Sym: KSAAX, KSABX, KSACX)

    (83) Scudder Select 500 Fund  (Sym: OUTDX, OUTBX, OUTBX,
         OUTRX

    (84) Scudder US Bond Index Fund (Sym: BTUSX )

    (85) Scudder Cash Reserves Fund

The Complaint alleges that defendants violated Sections 11 and
15 of the Securities Act of 1933; Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder; and Section 206 of the Investment Advisers Act of
1940. The Complaint charges that, throughout the Class Period,
certain of the defendants failed to disclose that they
improperly allowed certain favored investors "timing" of the
Funds' securities. In return for receiving extra fees from
favored investors, Deutsche Bank AG, Scudder Investments,
Deutsche Asset Management, and Deutsche Investment Management
allowed and facilitated timing activities in the Funds, to the
detriment of class members, who paid, dollar for dollar, for
improper profits made by privileged investors. These practices
were undisclosed in the prospectuses of the Funds, which falsely
represented that the Funds actively police against timing and
that premature redemptions will be assessed a charge.

For more information, contact Tanya R. Autry, Shareholder
Relations Dept., by Phone: (800) 663-9817 or (501) 907-2555,
Fax: (501) 907-2556, or E-mail: shareholder@emersonfirm.com.


DYNACQ HEALTHCARE: Chitwood & Harley Lodges TX Securities Suit
--------------------------------------------------------------
The law firm of Chitwood & Harley LLP initiated a securities
fraud class action complaint against Dynacq Healthcare, Inc. and
two of its senior officers, on behalf of purchasers of Dynacq
common stock from January 14, 2003 through December 18, 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. Plaintiff charges, 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. On December 2, 2003, 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 Lauren S. Antonino, by Mail:
1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309, by
Phone: 1-888-873-3999 (toll-free), or E-mail: lsa@classlaw.com.


DYNACQ HEALTHCARE: Charles Piven Launches Securities Suit in TX
---------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a securities
class action in the United States District Court for the
Southern District of Texas, Houston Division, against defendant
Dynacq Healthcare, Inc. and certain of its officers, on behalf
of shareholders who purchased, converted, exchanged or otherwise
acquired the common stock of Dynacq Healthcare, Inc. between
January 14, 2003 and December 18, 2003, 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, by Mail: The
World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525,
Baltimore, Maryland 21202, by Phone: 410/986-0036, or E-mail:
hoffman@pivenlaw.com.


DYNACQ HEALTHCARE: Wolf Popper Commences Securities Suit in TX
--------------------------------------------------------------
The law firm of Wolf Popper LLP initiated a securities fraud
class action complaint against Dynacq Healthcare, Inc. and two
of its senior officers on behalf of purchasers of Dynacq common
stock from January 14, 2003 through December 18, 2003,
inclusive.

Plaintiff 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 Robert C. Finkel, by Mail: 845
Third Avenue, New York, NY 10022-6689, Phone: 212-451-9620, or   
877-370-7703 (toll free), Fax: 212-486-2093, E-mail:
irrep@wolfpopper.com; or visit the firm's Website:
http://www.wolfpopper.com.


GILEAD SCIENCES: Wechsler Harwood Files Securities Suit in CA
----------------------------------------------------------------
Wechsler Harwood LLP initiated a class action lawsuit in the
United States District Court for the Northern District of
California against Gilead and certain of its senior officers and
directors, on behalf of all purchasers of publicly traded
securities of Gilead Sciences, Inc. from July 14, 2003 through
October 28, 2003, inclusive.

The complaint alleges that defendants Gilead, John C. Martin,
John F. Milligan, Mark L. Perry, Norbert W. Bischofberger,
Anthony Carraciolo, and William A. Lee 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 July 14, 2003 through
October 28, 2003.

More specifically, the complaint alleges that the defendants'
statements were materially false and misleading because they
failed to disclose and/or misrepresented the following adverse
facts:

     (1) that Gilead was aware that its revenue was not
         increasing due to sales of its drug Viread;

     (2) that Gilead was aware that Viread sales had only
         increased because wholesalers bought an excessive
         amount of the drug before July 27, 2003 in an attempt
         to avoid the price increase scheduled for July 27,
         2003;

     (3) that Gilead was aware that its wholesalers' over-buying
         of Viread to avoid the price increase accounted for $33
         to $37 million, not the $25 to $30 million that Gilead
         originally purported; and

     (4) that Gilead was aware that the wholesaler over-buying
         would decrease projected revenue in the future.

On October 28, 2003, Gilead announced that sales of Viread in
the third quarter 2003 would be less than expected due to an
inventory buildup by wholesalers.  The market reacted swiftly to
this news, with the Company's stock falling 12%, or $7.46 per
share from a high of $59.46 per share on October 28, 2003 to
close at $52.00 per share on October 29, 2003.

For more information, contact Craig Lowther, by Mail: 488
Madison Avenue, 8th Floor, New York, NY 10022, by Phone: toll
free (877) 935-7400 Ext. 257, or by E-mail: clowther@whesq.com


INVESCO FUNDS: Charles Piven Lodges Securities Fraud Suit in CO
---------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a class
action lawsuit in the United States District Court for the
District of Colorado on behalf of all purchasers of INVESCO
Advantage Health Sciences Fund (Nasdaq: IAGHX), (Nasdaq: IGHBX),
(Nasdaq: IGHCX); INVESCO Core Equity Fund (Nasdaq: ICEAX),
(Nasdaq: ICEBX), (Nasdaq: IINCX), (Nasdaq: FIIIX), (Nasdaq:
IEIKX); INVESCO Dynamics Fund (Nasdaq: IDYAX), (Nasdaq: IDYBX),
(Nasdaq: IFDCX; Nasdaq: FIDYX; Nasdaq: IDYKX); INVESCO Energy
Fund (Nasdaq: IENAX; Nasdaq: IENBX), (Nasdaq: IEFCX; Nasdaq:
FSTEX; Nasdaq: IENKX); INVESCO Financial Services Fund (Nasdaq:
IFSAX; Nasdaq: IFSBX; Nasdaq: IFSCX), (Nasdaq: FSFSX), (Nasdaq:
FSFKX); and other Invesco Mutual Funds that are managed by
Invesco Funds Group, Inc., which is a subsidiary of Amvescap
PLC, from December 5, 1998 through November 24, 2003, inclusive,
seeking to pursue remedies under the Securities Act of 1933, the
Securities Exchange Act of 1934 and the Investment Company Act
of 1940.

The Funds and the symbols for the respective Funds subject to
the lawsuit are:

     (1) INVESCO Advantage Health Sciences Fund (Sym: IAGHX,
         IGHBX, IGHCX)

     (2) INVESCO Advantage Fund (Sym: IADAX, IADBX, IADCX)

     (3) INVESCO Latin American Growth Fund (Sym: IVSLX)

     (4) INVESCO Core Equity Fund (Sym: ICEAX, ICEBX, IINCX,
         FIIIX, IEIKX)

     (5) INVESCO Dynamics Fund (Sym: IDYAX, IDYBX, IFDCX, FIDYX,
         IDYKX)

     (6) INVESCO Energy Fund (Sym: IENAX, IENBX, IEFCX, FSTEX,
         IENKX)

     (7) INVESCO Financial Services Fund (Sym: IFSAX, IFSBX,
         IFSCX, FSFSX, FSFKX)

     (8) INVESCO Gold & Precious Metals Fund (Sym: IGDAX, IGDBX,
         IGDCX, FGLDX)

     (9) INVESCO Health Sciences Fund (Sym: IAHSX, IBHSX, IHSCX,
         FHLSX, IHSKX)

    (10) INVESCO International Core Equity Fund (formerly known
         as International Blue Chip Value Fund) (Sym: IBVAX,
         IBVBX, IBVCX, IIBCX)

    (11) INVESCO Leisure Fund (Sym: ILSAX, LSBX, IVLCX, FLISX,
         ILEKX)

    (12) INVESCO Mid-Cap Growth Fund (Sym: IMGAX, IMGBX, IMGCX,
         IVMIX)

    (13) INVESCO Multi-Sector Fund (Sym: IAMSX, IBMSX, ICMSX,
         ICMSX)

    (14) AIM INVESCO S&P Index Fund (Sym: ISPIX)

    (15) INVESCO Small Company Growth Fund (Sym: ISGAX, ISGBX,
         ISGCX FIEGX ISCKX)

    (16) INVESCO Technology Fund (Sym: ITYAX, ITYBX, ITHCX,
         FTCHX, ITHKX)

    (17) INVESCO Total Return Fund (Sym: IATRX, IBTRX, ITRCX,
         FSFLX)

    (18) INVESCO Utilities Fund (Sym: IAUTX, IBUTX, IUTCX,
         ISTUX)

    (19) AIM INVESCO Cash Reserves Fund (currently known as AIM
         Money Market Fund) (New symbol: AIMXX)

    (20) AIM INVESCO Tax-Free Money Fund (Sym: FFRXX)

    (21) AIM INVESCO Treasurers Money Market Reserve Fund (Sym:
         IMRXX)

    (22) AIM INVESCO Treasurers Tax-Exempt Reserve Fund (Sym:
         ITTXX)

    (23) AIM INVESCO US Government Money Fund (Sym: FUGXX)

    (24) INVESCO Advantage Fund (Sym: IADAX, IADBX, IADCX)

    (25) INVESCO Balanced Fund (Sym: IBLAX, IBLBX, IBNCX, IBFIX,
         IMABX, IBLKX)

    (26) INVESCO European Fund (Sym: IEUAX, IEUBX, FEURX, IEUKX)

    (27) INVESCO Growth Fund (Sym: IAGWX, IBGWX, IBGCX, FLRFX,
         IGWKX)

    (28) INVESCO High-Yield Fund (Sym: IAHYX, IBHYX, IHYCX
         FHYPX, IHYKX)

    (29) INVESCO Growth & Income Fund, (Sym: IGIAX, IGIBX,
         IGRCX, IVGIX, IGIKX)

    (30) INVESCO Real Estate Opportunity Fund (Sym: IAREX,
         IBREX, IRECX, IVSRX)

    (31) INVESCO Select Income Fund (Sym: IASIX, IBSIX, ISICX,
         FBDSX)

    (32) INVESCO Tax-Free Bond Fund (Sym: IXBAX, IXBBX, ITFCX,
         FTIFX)

    (33) INVESCO Telecommunications Fund (Sym: ITLAX, ITLBX,
         INTCX, ISWCX, ITEKX)

    (34) INVESCO U.S. Government Securities Fund (Sym :IGVAX,
         IGVBX, IUGCX, FBDGX)

The wrongful conduct alleged in and which is the subject of the
lawsuit relates to "timing." The lawsuit alleges that timing
injures ordinary mutual fund investors who are not allowed to
engage in such practices and benefits the mutual fund companies.

For more information, 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.


MFS MUTUAL: Charles Piven Commences Securities Fraud Suit in MA
---------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a class
action lawsuit in the United States District Court for the
District of Massachusetts, on behalf of all purchasers of shares
of the MFS Mutual Funds, which are managed by Massachusetts
Financial Services Company, a subsidiary of Sun Life Financial,
Inc. during the period between December 15, 1998 and December 8,
2003, inclusive, seeking to pursue remedies under the Securities
Act of 1933, the Securities Exchange Act of 1934 and the
Investment Company Act of 1940.

The Funds and the symbols for the respective Funds subject to
the lawsuit are as follows:
      
     (1) MFS Capital Opportunities Fund (Nasdaq:MCOFX),
         (Nasdaq:MCOBX), (Nasdaq:MCOCX), (Nasdaq:MFCRX),
         (Nasdaq:MCOTX), (Nasdaq:EACOX), (Nasdaq:EBCOX),
         (Nasdaq:ECCOX)

     (2) MFS Core Growth Fund (Nasdaq:MFCAX), (Nasdaq:MFCBX),
         (Nasdaq:MFCCX), (Nasdaq:MCFRX), (Nasdaq:MCRRX)

     (3) MFS Emerging Growth Fund (Nasdaq:MFEGX),
         (Nasdaq:MEGBX), (Nasdaq:MFECX), (Nasdaq:MFERX),
         (Nasdaq:MEGRX), (Nasdaq:EAGRX), (Nasdaq:EBEGX),
         (Nasdaq:ECEGX)

     (4) MFS Growth Opportunities Fund (Nasdaq:MGOFX),
         (Nasdaq:MGOBX)

     (5) MFS Large Cap Growth Fund (Nasdaq:MCGAX),
         (Nasdaq:MCGBX)

     (6) MFS Managed Sectors Fund (Nasdaq:MMNSX),
         (Nasdaq:MSEBX), (Nasdaq:MMNCX)

     (7) MFS Mid Cap Growth Fund (Nasdaq:OTCAX), (Nasdaq:OTCBX),
         (Nasdaq:OTCCX), (Nasdaq:MMCRX), (Nasdaq:MCPRX),
         (Nasdaq:EAMCX), (Nasdaq:EBCGX), (Nasdaq:ECGRX)

     (8) MFS New Discovery Fund (Nasdaq:MNDAX), (Nasdaq:MNDBX),
         (Nasdaq:MNDCX), (Nasdaq:MFNRX), (Nasdaq:MNDRX),
         (Nasdaq:EANDX), (Nasdaq:EBNDX), (Nasdaq:ECNDX)

     (9) MFS New Endeavor Fund (Nasdaq:MECAX), (Nasdaq:MECBX),
         (Nasdaq:MECCX), (Nasdaq:MNERX), (Nasdaq:MENRX)

    (10) MFS Research Fund (Nasdaq:MFRFX), (Nasdaq:MFRBX),
         (Nasdaq:MFRCX), (Nasdaq:MFRRX), (Nasdaq:MSRRX),
         (Nasdaq:EARFX), (Nasdaq:EBRFX), (Nasdaq:ECRFX)

    (11) MFS Strategic Growth Fund (Nasdaq:MFSGX),
         (Nasdaq:MSBGX), (Nasdaq:MFGCX), (Nasdaq:MSGRX),
         (Nasdaq:MSTRX), (Nasdaq:EASGX), (Nasdaq:EBSGX),
         (Nasdaq:ECSGX)

    (12) MFS Technology Fund (Nasdaq:MTCAX), (Nasdaq:MTCBX),
         (Nasdaq:MTCCX), (Nasdaq:MTQRX), (Nasdaq:MTERX)

    (13) Massachusetts Investors Growth Stock (Nasdaq:MIGFX),
         (Nasdaq:MIGBX), (Nasdaq:MIGDX), (Nasdaq:MIGRX),
         (Nasdaq:MIRGX), (Nasdaq:EISTX), (Nasdaq:EMIVX),
         (Nasdaq:EMICX)

    (14) MFS Mid Cap Value Fund (Nasdaq:MVCAX), (Nasdaq:MCBVX),
         (Nasdaq:MVCCX), (Nasdaq:MMVRX), (Nasdaq:MCVRX),
         (Nasdaq:EACVX), (Nasdaq:EBCVX), (Nasdaq:ECCVX)

    (15) MFS Research Growth and Income Fund (Nasdaq:MRGAX),
         (Nasdaq:MRGBX), (Nasdaq:MRGCX), (Nasdaq:MGIRX),
         (Nasdaq:MRERX)

    (16) MFS Strategic Value Fund (Nasdaq:MSVTX),
         (Nasdaq:MSVLX), (Nasdaq:MQSVX), (Nasdaq:MSVRX),
         (Nasdaq:MVSRX), (Nasdaq:EASVX),  (Nasdaq:EBSVX),
         (Nasdaq:ECSVX)

    (17) MFS Total Return Fund (Nasdaq:MSFRX), (Nasdaq:MTRBX),
         (Nasdaq:MTRCX), (Nasdaq:MFTRX), (Nasdaq:MTRRX),
         (Nasdaq:EATRX), (Nasdaq:EBTRX), (Nasdaq:ECTRX)

    (18) MFS Union Standard Equity Fund (Nasdaq:MUEAX),
         (Nasdaq:MUSBX), (Nasdaq:MUECX)

    (19) MFS Utilities Fund (Nasdaq:MMUFX), (Nasdaq:MMUBX),
         (Nasdaq:MMUCX), (Nasdaq:MMURX), (Nasdaq:MURRX)

    (20) MFS Value Fund (Nasdaq:MEIAX), (Nasdaq:MFEBX),
         (Nasdaq:MEICX), (Nasdaq:MFVRX), (Nasdaq:MVRRX),
         (Nasdaq:EAVLX), (Nasdaq:EBVLX), (Nasdaq:ECVLX)

    (21) Massachusetts Investors Trust (Nasdaq:MITTX),
         (Nasdaq:MITBX), (Nasdaq:MITCX), (Nasdaq:MITRX),
         (Nasdaq:MIRTX), (Nasdaq:EAMTX), (Nasdaq:EBMTX),
         (Nasdaq:ECITX)

    (22) MFS Aggressive Growth Allocation Fund (Nasdaq:MAAGX),
         (Nasdaq:MBAGX), (Nasdaq:MCAGX), (Nasdaq:MAARX),
         (Nasdaq:MAWAX), (Nasdaq:EAGTX), (Nasdaq:EBAAX),
         (Nasdaq:ECAAX)

    (23) MFS Conservative Allocation Fund (Nasdaq:MACFX),
         (Nasdaq:MACBX), (Nasdaq:MACVX), (Nasdaq:MACRX),
         (Nasdaq:MCARX), (Nasdaq:ECLAX), (Nasdaq:EBCAX),
         (Nasdaq:ECACX)

    (24) MFS Growth Allocation Fund (Nasdaq:MAGWX),
         (Nasdaq:MBGWX), (Nasdaq:MCGWX), (Nasdaq:MGARX),
         (Nasdaq:MGALX), (Nasdaq:EAGWX), (Nasdaq:EBGWX),
         (Nasdaq:ECGWX)

    (25) MFS Moderate Allocation Fund (Nasdaq:MAMAX),
         (Nasdaq:MMABX), (Nasdaq:MMACX), (Nasdaq:MAMRX),
         (Nasdaq:MARRX), (Nasdaq:EAMDX), (Nasdaq:EBMDX),
         (Nasdaq:ECMAX)

    (26) MFS Bond Fund (Nasdaq:MFBFX), (Nasdaq:MFBBX),
         (Nasdaq:MFBCX), (Nasdaq:MFBRX), (Nasdaq:MBRRX),
         (Nasdaq:EABDX), (Nasdaq:EBBDX), (Nasdaq:ECBDX)

    (27) MFS Emerging Markets Debt Fund (Nasdaq:MEDAX),
         (Nasdaq:MEDBX), (Nasdaq:MEDCX)

    (28) MFS Government Limited Maturity Fund (Nasdaq:MGLFX),
         (Nasdaq:MGLBX), (Nasdaq:MGLCX)

    (29) MFS Government Mortgage Fund (Nasdaq:MGMTX),
         (Nasdaq:MGTBX)

    (30) MFS Government Securities Fund (Nasdaq:MFGSX),
         (Nasdaq:MFGBX), (Nasdaq:MFGDX), (Nasdaq:MGSRX),
         (Nasdaq:MGVSX), (Nasdaq:EAGSX), (Nasdaq:EBGSX),
         (Nasdaq:ECGSX)

    (31) MFS High Income Fund (Nasdaq:MHITX), (Nasdaq:MHIBX),
         (Nasdaq:MHICX), (Nasdaq:EAHIX), (Nasdaq:EMHBX),
         (Nasdaq:EMHCX; (Nasdaq:MHIIX), (Nasdaq:MHIRX)

    (32) MFS High Yield Opportunities Fund (Nasdaq:MHOAX),
         (Nasdaq:MHOBX), (Nasdaq:MHOCX), (Nasdaq:MHOIX)

    (33) MFS Intermediate Investment Grade Bond Fund
         (Nasdaq:MGBFX), (Nasdaq:MGBVX), (Nasdaq:MGBCX),
         (Nasdaq:MGBEX), (Nasdaq:MIBRX)

    (34) MFS Limited Maturity Fund (Nasdaq:MQLFX)
         (Nasdaq:MQLBX), (Nasdaq:MQLCX), (Nasdaq:EALMX),
         (Nasdaq:EBLMX), (Nasdaq:ELDCX), (Nasdaq:MLDRX)

    (35) MFS Research Bond Fund (Nasdaq:MRBFX), (Nasdaq:MRBBX),
         (Nasdaq:MRBCX), (Nasdaq:EARBX), (Nasdaq:EBRBX),
         (Nasdaq:ECRBX), (Nasdaq:MRBIX), (Nasdaq:MRBRX)

    (36) MFS Strategic Income Fund (Nasdaq:MFIOX),
         (Nasdaq:MIOBX), (Nasdaq:MIOCX), (Nasdaq:MFIIX)

    (37) MFS Alabama Municipal Bond Fund (Nasdaq:MFALX),
         (Nasdaq:MBABX)

    (38) MFS Arkansas Municipal Bond Fund (Nasdaq:MFARX),
         (Nasdaq:MBARX)

    (39) MFS California Municipal Bond Fund (Nasdaq:MCFTX),
         (Nasdaq:MBCAX), (Nasdaq:MCCAX)

    (40) MFS Florida Municipal Bond Fund (Nasdaq:MFFLX),
         (Nasdaq:MBFLX)

    (41) MFS Georgia Municipal Bond Fund (Nasdaq:MMGAX),
         (Nasdaq:MBGAX)

    (42) MFS Maryland Municipal Bond Fund (Nasdaq:MFSMX),
         (Nasdaq:MBMDX)

    (43) MFS Massachusetts Municipal Bond Fund (Nasdaq:MFSSX),
         (Nasdaq:MBMAX)

    (44) MFS Mississippi Municipal Bond Fund (Nasdaq:MISSX),
         (Nasdaq:MBMSX),

    (45) MFS Municipal Bond Fund (Nasdaq:MMBFX), (Nasdaq:MMBBX)

    (46) MFS Municipal Limited Maturity Fund (Nasdaq:MTLFX),
         (Nasdaq:MTLBX), (Nasdaq:MTLCX)

    (47) MFS New York Municipal Bond Fund (Nasdaq:MSNYX),
         (Nasdaq:MBNYX), (Nasdaq:MCNYX)

    (48) MFS North Carolina Municipal Bond Fund (Nasdaq:MSNCX),
         (Nasdaq:MBNCX), (Nasdaq:MCNCX)

    (49) MFS Pennsylvania Municipal Bond Fund (Nasdaq:MFPAX),
         (Nasdaq:MBPAX)

    (50) MFS South Carolina Municipal Bond Fund (Nasdaq:MFSCX),
         (Nasdaq:MBSCX)

    (51) MFS Tennessee Municipal Bond Fund (Nasdaq:MSTNX),
         (Nasdaq:MBTNX)

    (52) MFS Virginia Municipal Bond Fund (Nasdaq:MSVAX),
         (Nasdaq:MBVAX), (Nasdaq:MVACX)

    (53) MFS West Virginia Municipal Bond Fund (Nasdaq:MFWVX),
         (Nasdaq:MBWVX)

    (54) MFS Emerging Markets Equity Fund (Nasdaq:MEMAX),
         (Nasdaq:MEMBX), (Nasdaq:MEMCX), (Nasdaq:MEMIX)

    (55) MFS Global Equity Fund (Nasdaq:MWEFX), (Nasdaq:MWEBX),
         (Nasdaq:MWECX), (Nasdaq:MWEIX), (Nasdaq:MGERX)

    (56) MFS Global Growth Fund (Nasdaq:MWOFX), (Nasdaq:MWOBX),
         (Nasdaq:MWOCX), (Nasdaq:MWOIX), (Nasdaq:MGLRX)

    (57) MFS Global Total Return Fund (Nasdaq:MFWTX),
         (Nasdaq:MFWBX), (Nasdaq:MFWCX), (Nasdaq:MFWIX),
         (Nasdaq:MGRRX)

    (58) MFS International Growth Fund (Nasdaq:MGRAX),
         (Nasdaq:MGRBX), (Nasdaq:MGRCX), (Nasdaq:MQGIX)

    (59) MFS International New Discovery Fund (Nasdaq:MIDAX),
         (Nasdaq:MIDBX), (Nasdaq:MIDCX), (Nasdaq:EAIDX),
         (Nasdaq:EBIDX), (Nasdaq:ECIDX), (Nasdaq:MWNIX),
         (Nasdaq:MINRX)

    (60) MFS International Value Fund (Nasdaq:MGIAX),
         (Nasdaq:MGIBX), (Nasdaq:MGICX), (Nasdaq:MINIX)

    (61) MFS Research International Fund (Nasdaq:MRSAX),
         (Nasdaq:MRIBX), (Nasdaq:MRICX), (Nasdaq:EARSX),
         (Nasdaq:EBRIX), (Nasdaq:ECRIX), (Nasdaq:MRSIX),
         (Nasdaq:MRIRX)

The wrongful conduct alleged in and which is the subject of the
lawsuit relates to "timing." The lawsuit alleges that timing
injures ordinary mutual fund investors who are not allowed to
engage in such practices and benefits the mutual fund companies.

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.


MORGAN STANLEY: Klayman & Toskes Files Securities Suit in NY
------------------------------------------------------------
The law firm of Klayman & Toskes, P.A. initiated a class action
lawsuit in the United States District Court for the Southern
District of New York on behalf of individual and institutional
investors who invested in the Morgan Stanley and Van Kampen
family of funds between October 1, 1999 and December 31, 2002.

The complaint alleges that defendants violated Sections 11 and
15 of the Securities Act of 1933, Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, Rule 10b-5 and Section 206
of the Investment Advisers Act of 1940.  The complaint charges
that defendants engaged in an unlawful and deceitful course of
conduct including failure to properly disclose that Morgan
Stanley had been aggressively pushing its sales personnel to
sell Morgan Stanley and Van Kampen funds, instead of mutual
funds owned and managed by other companies.  This was done
through internal contests offering various prizes to brokers who
sold the most in proprietary funds.

The complaint also alleged that the advisors to the funds paid
excessive commissions, directly or indirectly, to MSDW, the
broker dealer, which came directly out of the funds' assets, as
payment to MSDW for its steering clients towards Morgan
Stanley's proprietary funds, including the Van Kampen funds.
Morgan Stanley is the parent of all defendants bearing the Van
Kampen name.

For more information, contact Lawrence L. Klayman, by Phone:
(888) 997-9956.


NETWORK ENGINES: Charles Piven Lodges Securities Lawsuit in MA
--------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a securities
class action in the United States District Court for the
District of Massachusetts, on behalf of shareholders who
purchased, converted, exchanged or otherwise acquired the common
stock of Network Engines, Inc. between November 6, 2003 and
December 10, 2003, 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, 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.

PARMALAT FINANZIARIA: Charles Piven Files Securities Suit in NY
----------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a securities
class action, in the United States District Court for the
Southern District of New York, on behalf of those who purchased
securities (including stock, bonds and notes) of Parmalat
Finanziaria, SpA between January 5, 1999 and December 29, 2003,
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, 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.


PARMALAT FINANZIARIA: Marc Henzel Launches 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) 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       


QUEST SOFTWARE: Marc Henzel Commences Securities Suit 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 Quest
Software, Inc. (NASDAQ: QSFT) publicly traded securities during
the period between April 30, 2002 and July 23, 2003.

The complaint charges Quest and certain of its officers and
directors with violations of the Securities Exchange Act of
1934.  Quest provides application and information availability
software solutions that enhance the performance and reliability
of e-business, enterprise and custom applications and enable the
delivery of information across the enterprise.

The complaint alleges that during the Class Period, defendants
caused Quest's shares to trade at artificially inflated levels
through the issuance of false and misleading financial
statements.

On July 23, 2003, Quest revealed that its 2002 and Q1 03 results
were false when issued due to a "computational error" in revenue
recognition. The stock dropped below $9 per share on this news.

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      


ROYAL DUTCH: Lasky & Rifkind Launches Securities Lawsuit in NJ
--------------------------------------------------------------
The law firm of Lasky & Rifkind, Ltd., initiated a lawsuit in
the United States District Court for the District of New Jersey,
on behalf of persons who purchased or otherwise acquired
publicly traded securities of Royal Dutch Petroleum Company and
The Shell Transport and Trading Company, PLC between December 3,
1999 and January 9, 2004, inclusive, against Royal Dutch and
Shell Transport, and:

     (1) Shell Petroleum N.V.,

     (2) The Shell Petroleum Ltd.,

     (3) Maarten van der Bergh,

     (4) Judy Boynton,

     (5) Malcom Brinded,

     (6) S.L. Miller,

     (7) Harry J.M. Roels,

     (8) Paul D. Skinner,

     (9) M. Moody-Stuart,

    (10) Jeroen van der Veer, and

    (11) Philip R. Watts.

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. Specifically, the complaint alleges that
Defendants deliberately violated accounting rules and guidelines
relating to oil and gas reserves that resulted in a 20%
overstatement of oil and gas reserves, the eventual disclosure
of damaged purchasers of the security.

More specifically, Royal Dutch had classified and reported in
SEC filings and other documents, certain reserves as "proved
reserves" from the Gorgon joint venture and various projects in
Nigeria. In fact, unknown to investors, the reserves did not
meet industry and SEC requirements necessary to be classified as
"proved", thereby materially inflating a key measure of the
companies' financial position.

On January 9, 2004, Royal Dutch announced that it was going to
write-down its proved oil and gas reserves by 20% or 3.9 billion
barrels. Following the announcement, Royal Dutch ADR's fell
approximately 7.9% from $52.76 to $48.61.

For more information, contact 800-495-1868 to speak with an
advisor.


SCUDDER MUTUAL: Glancy Binkow Launches Securities Lawsuit in NY
---------------------------------------------------------------
The law firm of Glancy Binkow & Goldberg, LLP initiated a Class
Action lawsuit in the United States District Court for the
Southern District of New York, on behalf of a class consisting
of all persons or entities who purchased or otherwise acquired
mutual funds in the Scudder family of funds, between January 22,
1999 and January 12, 2004, inclusive.

The Complaint charges, among others, Deutsche Bank AG, Scudder
Investments, Deutsche Investment Management and Deutsche Asset
Management with violations of federal securities laws. The
complaint alleges that during the Class Period defendants failed
to disclose that certain favored investors were allowed to
engage in "market timing" -- short-term, in-and-out trading of
mutual fund shares -- to the detriment of other Scudder Funds
investors who paid, dollar-for-dollar, for the favored
investors' improper profits. The complaint alleges that these
improper practices were undisclosed in the Scudder Funds'
prospectuses, which represented that the Funds actively deter
"timing."

The Funds, and the symbols for the respective Funds named below,
are as follows:

(1) Scudder 21st Century Growth Fund   (Sym: SCNAX, SCNBX,  
         SCNCX)

     (2) Scudder Aggressive Growth Fund   (Sym: KGGAX, KGGBX,
         KGGCX)

     (3) Scudder Blue Chip Fund   (Sym: KBCAX, KBCBX, KBCCX)

     (4) Scudder Capital Growth Fund (Sym: SDGAX, SDGBX, SDGCX,
         SDGRX, SDGTX)

     (5) Scudder Dynamic Growth Fund   (Sym: KSCAX, KSCBX,
         KSCCX)

     (6) Scudder Flag Investors Communications Fund   (Sym:
         TISHX, FTEBX, FTICX, FLICX)

     (7) Scudder Global Biotechnology Fund   (Sym: DBBTX, DBBBX,
         DBBCX)

     (8) Scudder Gold & Precious Metals Fund   (Sym: SGDAX,
         SGDBX, SGDCX)

     (9) Scudder Growth Fund   (Sym: KGRAX, KGRBX, KGRCX)

    (10) Scudder Health Care Fund   Sym: SUHAX, SUHBX, SUHCX)

    (11) Scudder Large Company Growth Fund   (Sym: SGGAX, SGGBX,
         SGGCX, SCQRX)

    (12) Scudder Micro Cap Fund   (Sym: SMFAX, SMFBX, SMFCX,
         MGMCX, MMFSX)

    (13) Scudder Mid Cap Fund   (Sym: SMCAX, SMCBX, SMCCX,
         SMCRX, BTEAX, BTCAX)

    (14) Scudder Small Cap Fund   (Sym: SSDAX, SSDBX, SSDCX,
         SSDRX, BTSCX)

    (15) Scudder Strategic Growth Fund   (Sym: SCDAX, SCDBX,
         SCDCX, SCDIX)

    (16) Scudder Technology Fund   (Sym: KTCAX, KTCBX, KTCCX,
         KTCIX)

    (17) Scudder Technology Innovation Fund   (Sym: SRIAX,
         SRIBX, SRICX)

    (18) Scudder Top 50 US Fund   (Sym: FAUSX, FBUSX, FCUSX)

    (19) Scudder Contrarian Fund   (Sym: KDCAX, KDCBX, KDCCX,
         KDCRX)

    (20) Scudder-Dreman Financial Services Fund   (Sym: KDFAX,
         KDFBX, KDFCX)

    (21) Scudder-Dreman High Return Equity Fund   (Sym: KDHAX,
         KDHBX, KDHCX, KDHRX, KDHIX)

    (22) Scudder-Dreman Small Cap Value Fund (Sym: KDSAX, KDSBX,
         KDSCX, KDSRX, KDSIX)

    (23) Scudder Flag Investors Equity Partners Fund   (Sym:
         FLEPX, FEPBX, FEPCX, FLIPX)

    (24) Scudder Growth & Income Fund   (Sym: SUWAX, SUWBX,
         SUWCX, SUWRX, SUWIX)

    (25) Scudder Large Company Value Fund   (Sym: SDVAX, SDVBX,
         SDVCX)

    (26) Scudder-RREEF Real Estate Securities Fund (Sym: RRRAX,
         RRRBX, RRRCX, RRRSX, RRRRX)

    (27) Scudder Small Company Stock Fund   (Sym: SZCAX, SZCBX,
         SZCCX)

    (28) Scudder Small Company Value Fund   (Sym: SAAUX, SABUX,
         SACUX)

    (29) Scudder Tax Advantaged Dividend Fund   (Sym: SDDAX,
         SDDBX, SDDCX, SDDGX)

    (30) Scudder Flag Investors Value Builder Fund   (Sym:
         FLVBX, FVBBX, FVBCX, FLIVX)

    (31) Scudder Focus Value+Growth Fund   (Sym: KVGAX, KVGBX,  
         KVGCX)

    (32) Scudder Lifecycle Mid Range Fund   (Sym: BTLRX)

    (33) Scudder Lifecycle Long Range Fund   (Sym: BTILX, BTAMX)

    (34) Scudder Lifecycle Short Range Fund   (Sym: BTSRX)

    (35) Scudder Pathway Conservative Portfolio (Sym: SUCAX,
         SUCBX, SUCCX)

    (36) Scudder Pathway Growth Portfolio (Sym: SUPAX, SUPBX,
         SUPCX)

    (37) Scudder Pathway Moderate Portfolio   (Sym: SPDAX,
         SPDBX, SPDCX)

    (38) Scudder Retirement Fund Series V  (Sym: KRFEX)

    (39) Scudder Retirement Fund Series VI   (Sym: KRFGX)

    (40) Scudder Retirement Fund Series VII   (Sym: KRFGX)

    (41) Scudder Target 2010 Fund   (Sym: KRFBX)

    (42) Scudder Target 2012 Fund   (Sym: KRFCX)

    (43) Scudder Target 2013 Fund   (Sym: KRFDX)

    (44) Scudder Total Return Fund   (Sym: KTRAX, KTRBX, KTRCX,
         KTRGX)

    (45) Scudder Emerging Markets Growth Fund   (Sym: SEKAX,
         SEKBX, SEKCX)

    (46) Scudder Emerging Markets Income Fund   (Sym: SZEAX,
         SZEBX, SZECX)

    (47) Scudder European Equity Fund (Sym: DBEAX, DBEBX, DBECX,
         MEUEX, MEUVX)

    (48) Scudder Global Fund   (Sym: SGQAX, SGQBX, SGQCX, SGQRX)

    (49) Scudder Global Bond Fund   (Sym: SZGAX, SZGBX, SZGCX)

    (50) Scudder Global Discovery Fund   (Sym: KGDAX, KGDBX,
         KGDCX)

    (51) Scudder Greater Europe Growth Fund   (Sym: SERAX,
         SERBX, SERCX)

    (52) Scudder International Fund   (Sym: SUIAX, SUIBX,
         SUICX)

    (53) Scudder International Equity Fund   (Sym: DBAIX, DBBIX,
         DBCIX, BEIIX, BEITX, BTEQX)

    (54) Scudder International Select Equity Fund (Sym: DBISX,
         DBIBX, DBICX, DBITX, MGINX, MGIVX, MGIPX)

    (55) Scudder Japanese Equity Fund   (Sym:  FJEAX, FJEBX,
         FJECX)

    (56) Scudder Latin America Fund   (Sym: SLANX, SLAOX, SLAPX)

    (57) Scudder New Europe Fund   (Sym: KNEAX, KNEBX, KNECX,
         KNEIX)

    (58) Scudder Pacific Opportunities Fund   (Sym: SPAOX,
         SBPOX, SPCCX)

    (59) Scudder Worldwide 2004 Fund   (Sym: KWIVX)

    (60) Scudder Fixed Income Fund   (Sym: SFXAX, SFXBX, SFXCX,
         SFXRF, MFINX, MFISX)

    (61) Scudder High Income Plus Fund (Sym: MGHYX, MGHVX,
         MGHPX)

    (62) Scudder High Income Fund   (Sym: KHYAX, KHYBX, KHYCX,
         KHYIX)

    (63) Scudder High Income Opportunity Fund   (Sym: SYOAX,
         SYOBX, SYOCX)

    (64) Scudder Income Fund   (Sym: SZIAX, SZIBX, SZICX)

    (65) Scudder PreservationPlus Fund   (Sym: BTPIX, BTPSX)

    (66) Scudder PreservationPlus Income Fund (Sym: PPIAX,
         PPLCX, DBPIX)

    (67) Scudder Short Term Bond Fund   (Sym: SZBAX, SZBBX,   
         SZBCX

    (68) Scudder Short Duration Fund   (Sym: SDUAX, SDUBX,
         SDUCX, MGSFX)

    (69) Scudder Strategic Income Fund   (Sym: KSTAX, KSTBX,  
         KSTCX)

    (70) Scudder US Government Securities Fund   (Sym: KUSAX,
         KUSBX, KUSCX)

    (71) Scudder California Tax-Free Income Fund   (Sym: KCTAX,
         KCTBX, KCTCX)

    (72) Scudder Florida Tax-Free Income Fund   (Sym: KFLAX,
         KFLBX, KFLCX)

    (73) Scudder High Yield Tax-Free Fund   (Sym: NOTAX,   
         NOTBX, NOTCX, NOTIX)

    (74) Scudder Intermediate Tax/AMT Free Fund   (Sym: SZMAX,
         SZMBX, SZMCX)

    (75) Scudder Managed Municipal Bond Fund   (Sym: SMLAX,
         SMLBX, SMLCX, SMLIX)

    (76) Scudder Massachusetts Tax-Free Fund   (Sym: SQMAX,
         SQMBX, SQMCX)

    (77) Scudder Municipal Bond Fund   (Sym: MGMBX, MMBSX)

    (78) Scudder New York Tax-Free Income Fund   (Sym: KNTAX,
         KNTBX, KNTCX)

    (79) Scudder Short Term Municipal Bond Fund   (Sym: SRMAX,
         SRMBX, SRMCX, MGSMX, MSMSX)

    (80) Scudder EAFE r Equity Index Fund   (Sym: BTAEX, BTIEX)

    (81) Scudder Equity 500 Index Fund   (Sym: BTIIX)

    (82) Scudder S&P 500 Stock Fund   (Sym: KSAAX, KSABX, KSACX)

    (83) Scudder Select 500 Fund  (Sym: OUTDX, OUTBX, OUTBX,
         OUTRX

    (84) Scudder US Bond Index Fund (Sym: BTUSX )

    (85) Scudder Cash Reserves Fund

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


SECURITY TRUST: Charles Piven Commences Securities Lawsuit in AZ
----------------------------------------------------------------
The Law Offices Of Charles J. Piven, P.A. initiated a class
action lawsuit in the United States District Court for the
District of Arizona, on behalf of all persons who purchased or
otherwise acquired shares or other ownership units of certain
mutual funds between May 22, 2000 and July 3, 2003, inclusive.

The mutual funds that are the subject of this lawsuit include,
but are not limited to, the following:

Janus Worldwide Fund (JAWWX)
American Funds EuroPacific Fund (AEPGX)
MFS Emerging Growth Fund (MFEGX)
Legg Mason Value Trust Fund (LMVTX)
Artisan International Fund (ARTIX)
AXP International Y Fund (IDIYX)
SEI International Equity A Fund (SEITX)
SEI Emerging Markets I Fund (SIEMX)

The wrongful conduct alleged in and which is the subject of the
lawsuit relates to "timing." The lawsuit alleges that timing
injures ordinary mutual fund investors who are not allowed to
engage in such practices and benefits the mutual fund companies.

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.


TV AZTECA: Lasky & Rifkind Launches Securities Suit in S.D. NY
--------------------------------------------------------------
The law firm of Lasky & Rifkind, Ltd., initiated a lawsuit in
the United States District Court for the Southern District of
New York, on behalf of persons who purchased or otherwise
acquired publicly traded securities of TV Azteca S.A. de C.V.  
between October 6, 2003 and January 7, 2004, inclusive, against
TV Azteca and certain officers and directors.

The complaint alleges that during the Class Period defendants
failed to disclose certain related-party transactions between a
privately held company jointly owned by the Company's Chairman,
Ricardo Salinas Pliego and the Company's President, M. Saba
Masri and one of the Company's affiliates - Unefon Corporacion
RBS.

Specifically, Defendants denied any affiliation with the "white
Knight" group of investors that had saved Unefon from bankruptcy
back in June of 2002. Defendants withheld disclosure of the true
facts until a spine off of Unefon was completed in December
2002. Then on January 9, 2004, Defendants shocked the markets by
admitting that the "white Knight" investors were in fact Salinas
and Saba, who made a profit of $218 million when their privately
held company bought Unefon's debt for $107 million and then sold
it back for $325 million.

The market reaction to this announcement was severe. By January
12, 2004, the first day of trading following the admonition, TV
Azteca securities fell 14.9% to $7.76 per share.

For more information, contact (800) 495-1868 to speak with an
advisor.


VIRBAC CORPORATION: Goodkind Labaton Files Securities Suit in TX
----------------------------------------------------------------
The law firm of Goodkind Labaton Rudoff & Sucharow LLP initiated
a class action lawsuit in the United States District Court for
the Northern District of Texas, on behalf of persons who
purchased or otherwise acquired publicly traded securities of
Virbac Corporation between May 3, 2001 and November 12, 2003,
inclusive, against Virbac Corporation, and:

     (1) Thomas L. Bell, and

     (2) Joseph A. Rougraff

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. During the class period, Defendants
issued a series of material misrepresentations to the market
concerning the Company's financial results. Specifically, the
Defendants' statements were materially false and misleading
because they failed to disclose and/or misrepresented that
Virbac had materially overstated its net income and earnings per
share, that Virbac had materially overstated its inventory, and
that the company lacked adequate internal controls to ascertain
its true financial condition.

On November 12, 2003 the Company announced that it would delay
the release of its financial results for the quarter and nine
months ended September 30, 2003, pending completion of an
internal inquiry being conducted by the Audit Committee of the
Company's Board of Directors. The Company went on to state that
its outside auditors, PricewaterhouseCoopers, raised questions
relating to the company's revenue recognition practices and
inventory accounting practices.

The market reacted negatively to this news, sending the
Company's shares 22%, or $11.85 lower before it was halted by
NASDAQ. On November 24, 2003 Virbac announced it would restate
its results for 2001, 2002 and the first two quarters of 2003
due to questions raised by the Company's auditors.

For more information, contact Christopher Keller, by Phone:
800-321-0476, or by E-mail: investorrelations@glrslaw.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., 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  * * *