/raid1/www/Hosts/bankrupt/CAR_Public/040317.mbx
C L A S S A C T I O N R E P O R T E R
Wednesday, March 17, 2004, Vol. 6, No. 54
Headlines
ABORTION LITIGATION: Woman Pleads Innocent In C-Section Case
AMYLIN PHARMACEUTICALS INC: Faces Securities Fraud Suit in CA
ARGOSY GAMING: Discovery Stayed Pending AC Ruling On RICO Suit
BASEBALL: Judge Rules Former Players Pension Case Without Merit
BEAR CREEK STORES: Recalls Raspberry Chocolate Cookies
BRIDGESTONE/ FIRESTONE: Judge Approves $149 Million Tire Pact
CALIFORNIA: Fresno Man Charged With Killing Nine Family Members
CALIFORNIA: Judge Issues TRO V. Man In Hedge Fund Stock Probe
CALIFORNIA PIZZA KITCHEN: Mediation Begins In Overtime Pay Suit
CANADA: Unsanitary Acupuncture Methods Force Montreal Tests
CELLCO PARTNERSHIP: Pre-Trial Discovery Of Trust Suits Set In NY
CHECKPOINT SYSTEMS: Faces Several 'ID Security' Follow-On Suits
CHOICEPOINT INCORPORATED: Faces DPPA Violations Suit in FL Court
CHOICEPOINT INCORPORATED: LA Lawsuit Dismissal Granted In Part
COLLECTO INC: Court Grants Certification Of Debt Collection Suit
CONTRACEPTION: Study Allows Women Easy Access To Pills, Patches
CORTLAND SAVINGS & BANKING: AC Affirms Summary Judgment In Suit
CMS ENERGY CORP: Subsidiaries Face Consolidated Complaint In NY
CMS ENERGY CORP: Faces Price-Fixing Lawsuit in California Court
CMS ENERGY CORP: Faces Amended Consolidated Complaint In MI
DIABETES: Major Study To Seek Best Treatment For Afflicted Kids
FIRST UNION SECURITIES: AC Vacates, Remands Stock Fraud Lawsuit
FLORIDA: Doctor Admits to Witness Tampering In Malpractice Case
FORD MOTOR CREDIT COMPANY: ECOA Violations Suit Remanded To NY
HOLOCAUST LITIGATION: Justice Lawyers Seek Dismissal Of Lawsuit
INDYMAC BANK FSB: Counts I, II of TILA Violations Suit Dismissed
INTERNATIONAL FLAVORS: Jury Awards Man $20M in 'Vapors' Lawsuit
INTERNATIONAL TRUCK & ENGINE CORP: AC Remands Work-Bias Lawsuit
MARTHA STEWART: Resigns From Company Board In Wake Of Verdict
MICROSOFT CORPORATION: Brussels Nears Anti-Trust Ruling In Case
MICROSOFT CORPORATION: Antitrust Case Begins In MN State Court
OHIO: Cincinnati Bengals To Counter-Sue County In Anti-Trust Row
SAME-SEX MARRIAGES: Ministers Charged For Wedding NY Gay Couples
TRANSMETA CORPORATION: Settles Derivative Shareholders' Suit
TRANSMETA CORPORATION: Joins 'Consolidated IPO Suit' Settlement
TRIQUINT SEMICONDUCTOR: Securities Suit Stayed Pending CA Ruling
TRUMBULL SAVINGS & LOAN: Summary Judgment Of RICO Suit Affirmed
TYCO INTERNATIONAL: Closing Arguments Resume In Corruption Trial
UNION ELECTRIC: Mediation Proceedings Involving CILCO Ongoing
UNION ELECTRIC: Retirees Seek Damages; Cite ERISA Violations
UTSTARCOM INC: Impleaded in 'Consolidated IPO Suit' in N.Y.
WEIRTON STEEL CORP: Federal Judge Ends Retiree Benefits April 1
WILD OATS: Canadian Court Certifies Lawsuit v. Local Subsidiary
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
* Online Teleconferences
New Securities Fraud Cases
CANADIAN SUPERIOR: Cauley Geller Launches Securities Suit in NY
CANADIAN SUPERIOR: Schiffrin & Barroway Files Stock Suit in NY
JANUS CAPITAL: Dyer & Shuman Commences Securities Suit in CO
ORGANOGENESIS: Bernstein Liebhard Lodges Securities Suit in
ROLLINS ENVIRONMENTAL: Stull Stull Files Securities Suit in SC
TV AZTECA: Deadline To File Lead Plaintiff Motion Set March 23rd
VANS INC: Deadline To File Lead Plaintiff Motion Set March 23rd
*********
ABORTION LITIGATION: Woman Pleads Innocent In C-Section Case
------------------------------------------------------------
The woman charged with murder after avoiding a Caesarean section
that doctors say would have saved the lives of her unborn twins
pleaded innocent Monday, the Associated Press reports.
Melissa Ann Rowland, 28, appeared in court via video
teleconference from jail. Her attorney entered an innocent plea
on her behalf to one count of criminal homicide. Prosecutors say
Rowland ignored multiple recommendations that she get a C-
section to save the lives of her twins.
Rowland, who has denied refusing a C-section, also faces child
endangerment charges for the surviving baby, who was found to
have cocaine and alcohol in her system. She is scheduled to be
in court Tuesday on that charge. One of the babies, a boy, was
stillborn. The other, a girl, survived and already has been
adopted.
AMYLIN PHARMACEUTICALS INC: Faces Securities Fraud Suit in CA
-------------------------------------------------------------
A class action lawsuit was filed in the United States District
Court for the Southern District of California against the
Company, its Chairman and former chief executive officer and
another director, alleging securities fraud in connection with
various statements and alleged omissions relating to the
development of SYMLIN.
The lawsuit seeks compensatory damages, payment of fees and
expenses, and further relief.
ARGOSY GAMING: Discovery Stayed Pending AC Ruling On RICO Suit
--------------------------------------------------------------
Discovery has been stayed pending the Appellate Court's ruling
on the dismissal of a consolidated lawsuit filed in Las Vegas,
Nevada, against the Company, along with two gaming equipment
suppliers, 41 of the country's largest gaming operators and four
gaming distributors.
The consolidated suit, styled William H. Poulos, etc. v. Caesars
World, Inc., et al., alleges that the Gaming Industry Defendants
violated the Racketeer Influenced and Corrupt Organizations Act
by engaging in a course of fraudulent and misleading conduct
intended to induce people to play their gaming machines based
upon a false belief concerning how those gaming machines
actually operate, as well as to the extent to which there is
actually an opportunity to win on any given play. The suit seeks
unspecified compensatory and punitive damages.
On February 13, 1997, the plaintiffs filed a consolidated
amended complaint. The court subsequently dismissed this
complaint, in part, and on January 8, 1998, the plaintiffs filed
a second amended complaint. The parties have fully briefed the
plaintiff's motion for class certification. The court denied
this motion on June 25, 2002, and refused to certify the case as
a class action. The plaintiffs filed petition for leave to
appeal this decision, which the Court granted. The parties fully
briefed the appeal and the Appellate Court heard oral arguments
on January 15, 2004.
BASEBALL: Judge Rules Former Players Pension Case Without Merit
---------------------------------------------------------------
Ruling from the bench, U.S. District Judge Manuel Real said
Monday that a lawsuit seeking pension and medical benefits for a
group of former major league players who had brief careers is
without merit, the Associated Press reports.
The proposed class action lawsuit, filed last year against
commissioner Bud Selig, the major leagues and its 30 teams,
claimed the former players were discriminated against because
they were white. It cited baseball's decision in 1997 to grant
$10,000 annual pensions to some former black players who played
in the Negro Leagues and for major league teams, even though
they never vested under the requirements of baseball's pension
plan.
Judge Real granted baseball's motion for a summary judgment, in
effect ruling in favor of the commissioner's office. Real also
said the players have a "sympathetic" case and suggested
baseball officials could look at it. "There was no employment
discrimination here," said Howard Ganz, baseball's lawyer,
adding that the lawsuit falls "in the category of no good deed
goes unpunished."
The principal plaintiffs were former New York Mets shortstop
Richard Moran; Ernie Fazio, the first player signed by Houston;
and former Chicago White Sox player Mike Colbern. More than
1,000 other players were proposed members of the class. Nearly
all of the former players are white, and the lawsuit argued they
should be awarded the same benefits as their counterparts in the
Negro Leagues.
In legal papers, baseball argued that the payments and medical
coverage provided for former Negro League players "were not tied
to any MLB employment relationship ... but rather were conferred
as charitable donations." The league also said the players
waited too long to raise legal objections.
After 1981's 50-day strike, the vesting requirements for medical
benefits were reduced from four years of major league service to
one day. For pension benefits, the requirement was lowered from
four years to 43 days. The change excluded players who played
before 1980, including the 1,053 members of the proposed class-
action lawsuit. The lawsuit alleged battery, negligence, racial
discrimination and conspiracy.
The battery and negligence allegations were related to claims
that baseball teams directed doctors and trainers to inject
players with multiple cortisone shots to mask pain, without
informing players of the danger. The conspiracy allegation
claimed owners conspired to fund the pension and medical
benefits for the former Negro Leagues players knowing that white
players who had played similar lengths had not received those
benefits.
BEAR CREEK STORES: Recalls Raspberry Chocolate Cookies
------------------------------------------------------
Bear Creek Stores, Inc., dba, Harry and David of Medford, OR, in
cooperation with the U.S. Food and Drug Administration (FDA), is
recalling 7987 packages of their Raspberry Chocolate Up With the
Sun Breakfast Cookies because they contain undeclared almonds
and pecans. People who have an allergy or severe sensitivity to
almonds and pecans run the risk of serious or life-threatening
allergic reaction if they consume these products.
The Raspberry Chocolate Up With the Sun Breakfast Cookies were
distributed in Harry and David retail stores nationwide. This
recall only involves product that was purchased in Harry and
David retail stores and not through the catalog. The product
comes in a 4.5 oz, clear acetate box. The product contains a
front label that states: Up With The Sun Breakfast Cookies. The
side of the package contains BEST BY dates of 2/07/04, 2/10/04,
4/15/04, or 4/16/04. The back label on the product contains the
code SKU#923187 on the upper left hand corner.
No allergic reactions or illnesses have been reported to date.
An investigation commenced when a customer noticed almonds and
pecans in the product. Consumers who have purchased the
Raspberry Chocolate Cookies are urged to return the package to
any Harry and David store for a full refund. Consumers with
questions may contact the company at 1-800-233-1101.
BRIDGESTONE/ FIRESTONE: Judge Approves $149 Million Tire Pact
-------------------------------------------------------------
State District Judge Donald Floyd in Beaumont Monday approved a
$149 million settlement of 30 class-action lawsuits filed on
behalf of owners of Bridgestone-Firestone tires, the Associated
Press reports.
The settlement comes more than three years after the 2000 recall
of 14.4 million potentially defective Firestone tires. At least
271 U.S. traffic deaths have been blamed on the tires, most of
which were sold with the Ford Explorer. However, the settlement
involved only plaintiffs who had not suffered any injuries or
property damage. The settlement calls for Bridgestone-Firestone
North American Tire to pay an estimated $70 million to replace
tires, $41 million to manufacture better tires, $15.5 million on
a consumer education campaign, and $19 million for attorneys'
fees. The company also has paid $3.5 million to notify owners of
the settlement. The settlement could affect 15 million people.
The 45 named plaintiffs each could receive up to $2,500. Those
who are not named but owned one of 22 brands of Bridgestone-
Firestone tires between 1991 and 2001 can have their tires
replaced.
More than 100 people had objected to the proposed settlement.
Attorney Mitchell Toups said that the judge should not have
approved it and that he and others plan to appeal. "This is
really no settlement at all. Everything in the settlement was
already being done by Firestone," Toups told the AP.
The lawsuits resolved include those filed by Firestone ATX, ATX
II and Wilderness AT customers whose tires were among those
investigated by the National Highway Traffic Safety
Administration in 2000. The tires came apart on the highway and
were blamed for deadly rollover accidents.
"We are pleased with the judge's decision," Firestone spokesman
Dan MacDonald said. "We believe that this settlement really is
in the best interest of all concerned." Bridgestone-Firestone
said it agreed to the proposed settlement last July to avoid
drawn-out litigation.
CALIFORNIA: Fresno Man Charged With Killing Nine Family Members
---------------------------------------------------------------
A makeshift memorial of stuffed animals, balloons and flowers
grew on the sidewalk in front of a home where a man is accused
of killing nine of his family members, some that police said may
have been the product of incest with his own daughters, the
Associated Press reports.
Six coroners, triple the typical weekend staff, worked in shifts
Sunday to identify the nine people who police believe were
killed by Marcus Wesson. It is the largest mass killing ever in
Fresno, a city of 440,000 people about 190 miles southeast of
San Francisco.
Wesson, 57, emerged blood-covered from his home Friday night
after police were called there because of a child custody
dispute. In a back room, police found a tangle of bodies and
clothing, a sight so gruesome it reduced some veteran officers
to tears. Police needed hours to sort through the bodies, but
eventually determined there were six females and three males
ranging in age from 1 to 24. Authorities say they were probably
all Wesson's children and grandchildren. Wesson was jailed on
nine murder charges, and bail was set at $9 million. Coroner's
officials said the victims' names and causes of death might be
made public Monday.
"It's just very complicated," Deputy Fresno County Coroner Amy
Hance said Sunday. "Who do you make notification to if
eventually some of the victims are other victims' relatives?"
Coroner Loralee Cervantes told the Fresno Bee on Sunday that
police are investigating whether Wesson had help in committing
the killings, perhaps even by one of the victims. Police
conducted tests to determine if there was gunshot residue on the
hands of one of the victims. Fresno Police Chief Jerry Dyer told
the Bee that police are trying to explore all possibilities.
Police officials could not be reached for further comment by The
Associated Press. Cervantes also told the paper that each of the
victims was shot at least once, and that six autopsies conducted
so far found that a gunshot was the fatal wound. The remaining
autopsies were expected to be completed Monday.
The grisly discovery stunned not only police and residents, but
also Wesson's 29-year-old son, Dorian. "I don't want to believe
it," said Dorian Wesson, adding that he hadn't seen his father
in about a year. "I want to give him the benefit of the doubt.
But they're all dead."
As the memorial swelled in front of the single-story house over
the weekend, a steady flow of people came by with more cards and
teddy bears. A bouquet of flowers had a card that read: "A
community that cared."
CALIFORNIA: Judge Issues TRO V. Man In Hedge Fund Stock Probe
--------------------------------------------------------------
A federal judge has issued a temporary restraining order against
a California man and two purported hedge funds he controlled
after the Securities and Exchange Commission charged them with
securities fraud, the Associated Press reports.
According to the SEC, Marvin Friedman, 65, and his San Diego-
based Global Money Management LP, and LF Global Investments LLC,
sold unregistered securities and misrepresented the amount of
assets they controlled. Friedman has allegedly told investors
his hedge funds held assets ranging from $60 million to more
than $100 million. However, records show that at least since
December 2002, the assets held have not exceeded more than $11
million. Additionally, Friedman touted his investment experience
but failed to tell investors about his disciplinary history,
including that he has been barred from working with any member
of the National Association of Securities Dealers, the SEC said.
U.S. District Judge Barry Moskowitz for the Southern District of
California on Thursday imposed an asset freeze and appointed a
receiver over the hedge funds. The judge also issued an order
prohibiting the destruction of documents and is ordering an
accounting of the defendants' assets.
The SEC is seeking an order requiring the defendants to give up
any ill-gotten gains plus other fines and penalties. A hearing
is scheduled for March 25. Attempts to reach Friedman at home
were unsuccessful.
CALIFORNIA PIZZA KITCHEN: Mediation Begins In Overtime Pay Suit
---------------------------------------------------------------
On February 10, 2003, one of California Pizza Kitchen, Inc.'s
former servers filed a class action complaint in Orange County
Superior Court in California, alleging that the Company failed
to give its food servers, bussers, runners and bartenders rest
and meal breaks as required by California law.
Under the California Labor Code, an employer must pay each
employee one additional hour of pay at the employee's regular
rate of compensation for each workday that the required meal or
rest period is not provided. The plaintiff also alleges that
additional penalties are owed as a consequence of our resulting
failure to pay all wages due at the time of termination of
employment and under theories characterizing these alleged
breaches as unfair business practices.
The Company is still investigating the claims and have
participated in one full day of private mediation. No
discovery has taken place as of yet due to a stay in the
proceedings ordered by the Court to allow the private mediation,
and no date has been set for a hearing on class certification or
for trial.
CANADA: Unsanitary Acupuncture Methods Force Montreal Tests
-----------------------------------------------------------
Health officials told a news conference Monday that the Quebec
government is asking more than 1,100 people to have a blood test
for HIV and hepatitis after a woman who practiced acupuncture
illegally at a Montreal clinic for 25 years failed to follow
proper sterilization techniques, the Associated Press reports.
The 1,144 patients went to the clinic between 1979 and last
January, health officials said. "I think you have to underline
that the risk of having caught anything is very low," Dr. John
Carsley, head of the infectious-diseases unit with the Montreal
public health department, said in an interview. But Carsley
added even though the risk of infection from HIV or the
hepatitis B and C viruses during acupuncture treatments is
"virtually nil," there are no guarantees.
Health officials said the clinic belonged to Suzanne Sicotte,
who was not a member of the professional order that represents
acupuncturists in Quebec. Carsley said Sicotte was an osteopath
by training and offered acupuncture to some clients. Osteopaths
work with their hands using a range of treatments for
musculoskeletal and other physical problems such as repetitive
strain injury.
As of April 2003, needles for acupuncture treatment can be used
only once by acupuncturists who are members of the province's
professional order. Previously, needles had to be sterilized
with heat if they were used more than once. Carsley said Sicotte
was only dipping needles into a chemical solution to sterilize
them. "There's a certain effectiveness to kill viruses, but it's
not acceptable," he said of the practice.
Raymond Bourret, head of Quebec's professional order for
acupuncturists, said the woman practiced illegally for 25 years
without being detected because she wasn't on the order's
membership list and didn't place any acupuncture ads to allow
her to be detected. Sicotte was fined $7,000 recently and is no
longer practicing after a client questioned her sterilization
practices, he said.
Letters are being sent to 1,071 people, most of them in the
Montreal area. Authorities are seeking addresses for 73 other
people. Earlier this month in Toronto, a judge gave permission
for a $30-million class-action suit against an acupuncturist who
allegedly spread disease to patients by using unsterilized
needles. The suit relates to treatments administered between
2000 and 2002 at the home of acupuncturist Sandra Testaguzza and
at a centre. Concerns were raised in December 2002 after Toronto
health officials became aware of about 20 patients at the centre
who contracted a rare disease, mycobacterium abscesses, which
causes red, lumpy lesions on the skin.
Monday's news came about two months after Ste-Justine Hospital
in Montreal announced it had sent out registered letters to
2,614 patients who were operated on by one particular doctor
since 1990. The doctor, who had tested positive for HIV, which
causes AIDS, died last August. About 2,240 of the patients had
been tested for HIV as of early February, a hospital spokeswoman
said Monday. She would not say if any of them had tested
positive.
CELLCO PARTNERSHIP: Pre-Trial Discovery Of Trust Suits Set In NY
----------------------------------------------------------------
Five purported class actions alleging anti-trust violations have
been coordinated for pre-trial discovery under MDL Proceeding
1513 before the United States District Court for the Southern
District of New York.
The lawsuits are styled:
(1) Brook, et al. v. AT&T Cellular Services, Inc., et al.,
filed in the U.S. District Court for the Southern
District of New York on April 5, 2002;
(2) Millen, et al. v. AT&T Wireless PCS, LLC, et al. filed
in the U.S. District Court for the District of
Massachusetts on or about August 3, 2002;
(3) Truong, et al. v. AT&T Wireless PCS, LLC, filed in the
U.S. District Court for the Northern District of
California on or about September 20, 2002;
(4) Beeler et al. v. AT&T Cellular Services, Inc., filed in
the U.S. District Court for the Northern District of
Illinois on or about September 30, 2002; and
(5) Morales, et al. v. AT&T Wireless PCS, LLC, et al.,
filed in the U.S. District Court for the Southern
District of Texas on or about September 27, 2002.
Pursuant to plaintiffs amended complaint in Brook, which the
court has ordered to be the controlling complaint for purposes
of pre-trial discovery, plaintiffs seek certification of a
nationwide class of wireless customers from 1998 to the present,
claiming that Cellco and other defendants engage in the illegal
tying of wireless handsets and wireless service in violation of
antitrust law. In each case, the plaintiffs seek treble damages,
fees and an injunction.
CHECKPOINT SYSTEMS: Faces Several 'ID Security' Follow-On Suits
---------------------------------------------------------------
A certain number of follow-on purported class action suits have
arisen in connection with the jury decision in the ID Security
Systems Canada Inc. litigation. The purported class action
complaints generally allege a claim of monopolization and are
substantially based upon the same allegations as contained in
the ID Security Systems Canada Inc. case (Civil Action No.
99-CV-577) as discussed below.
*On August 1, 2002, a civil action was filed in United
States District Court for the Eastern District of
Pennsylvania, designated as Civil Action No. 02-6379(ER)
by plaintiff Diane Furs, Inc. t/a Diane Furs against
Checkpoint Systems, Inc. and served on August 21, 2002. On
August 21, 2002, a Notice of Substitution of Plaintiff and
Filing of Amended Complaint was filed by the plaintiff,
and the named plaintiff was changed to Medi-Care Pharmacy,
Inc.
*On August 2, 2002, a civil action was filed in the United
States District Court, District of New Jersey (Camden)
designated as Docket No. 02-CV-3730(JEI) by plaintiff Club
Sports International, Inc., d/b/a Soccer CSI against
Checkpoint Systems, Inc. and served on August 26, 2002.
*On October 2, 2002, a civil action was filed in the United
States District Court, District of New Jersey (Camden)
designated as Docket No. 02-CV-4777 (JBS) by plaintiff
Baby Mika, Inc. against Checkpoint Systems, Inc. and
served on October 7, 2002.
*On October 23, 2002, a civil action was filed in the
United States District Court, District of New Jersey
(Camden) designated as Docket No. 02-CV-5001 (JEI)
by plaintiff Washington Square Pharmacy, Inc. against
Checkpoint Systems, Inc. and served on November 1, 2002.
*On October 18, 2002, The United States District, District
of New Jersey (Camden) entered an Order staying the
proceedings in the Club Sports International, Inc. and
Baby Mika, Inc. cases referred to above. In accordance
with the Order, the Stay will also apply to the Washington
Square Pharmacy, Inc. case referred to above. In addition,
the Medi-Care Pharmacy, Inc. case, referred to above, will
be voluntarily dismissed, and it has been re-filed in New
Jersey and is included in the Stay Order. The Stay is
expected to remain in place until such time as the ID
Security Systems case, referred to above, is either
terminated or any appeals have been exhausted in the Third
Circuit Court of Appeals.
*On November 13, 2002, a civil action was filed in the
United States District Court, District of New Jersey
(Camden) designated as Docket No. 02-CV-5319 (JEI) by
plaintiff 1700 Pharmacy, Inc. against Checkpoint Systems,
Inc. and served on November 15, 2002.
*On December 30, 2002, a civil action was filed in the
United States District Court, District of New Jersey
(Camden) designated as Docket No. 02-CV-6131 (JEI) by
plaintiff Medi-Care Pharmacy, Inc. against Checkpoint
Systems, Inc. and served on January 3, 2003.
Both the 1700 Pharmacy, Inc. case and the Medi-Care Pharmacy,
Inc. case were consolidated with the previously mentioned cases
and are included in the October 18, 2002 Stay Order referred to
above. No liability has been recorded for any of the purported
class action suits as management believes that, based on input
from outside legal counsel, it is not probable that the Court of
Appeals will reverse the decision of the lower Court in the ID
Security Systems Canada Inc. litigation as it relates to the
antitrust claims and that the lower end of the reasonably
possible range of the contingent liability is zero at this time.
The high end of the range cannot be estimated at this time.
CHOICEPOINT INCORPORATED: Faces DPPA Violations Suit in FL Court
----------------------------------------------------------------
Russell V. Rosen and Rabbi Joel Levine, along with three other
ChoicePoint entities have been added as defendants in a
complaint filed in the United States District Court for the
Southern District of Florida, alleging that the Company has
obtained, disclosed and used information obtained from the
Florida Department of Highway Safety and Motor Vehicles in
violation of the DPPA. The lawsuit is styled Fresco, et al. v.
Automotive Directions Inc., et al.
The plaintiffs seek to represent classes of individuals whose
personal information from Florida DHSMV records has been
obtained, disclosed and used for marketing purposes or other
allegedly impermissible uses by ChoicePoint without the express
written consent of the individual.
CHOICEPOINT INCORPORATED: LA Lawsuit Dismissal Granted In Part
--------------------------------------------------------------
The United States District Court for the Eastern District of
Louisiana granted in part, denied in part the dismissal of a
lawsuit brought against the Company, alleging the use of
information obtained from the Florida Department of Highway
Safety and Motor Vehicles in violation of the DPPA. The Suit is
styled Betty D. Russell v. ChoicePoint Services, Inc.
The plaintiff sought to represent a national class of all
individuals whose information the Company has obtained from
motor vehicle records and a subclass of all individuals
domiciled in Louisiana whose information the Company has
obtained from motor vehicle records in Louisiana.
COLLECTO INC: Court Grants Certification Of Debt Collection Suit
----------------------------------------------------------------
The United States District Court for the Northern District of
Illinois, Eastern Division, granted certification of a lawsuit
brought against Collecto Inc., d/b/a Collection Company of
America, on behalf of David Wilson, et al., alleging violations
of the Fair Debt Collection Practices Act.
In a letter dated July 9, 2002, Defendant informed Plaintiff
that his account with Cingular Wireless had been placed with
Defendant for collection. Plaintiff did not respond to the First
Letter. In a letter dated August 7, 2002, Defendant informed
Plaintiff that [a]s a result of your continued failure to
liquidate the above reference [sic] account, we have on this day
informed our client that you have not paid this debt or made
arrangements to pay. You should know that our client has the
right to take further steps to collect this account. Your unpaid
account can negatively affect your credit for many years. If you
can't pay this in full, please call to discuss a payment
arrangement today. We urge you to contact this office today.
Plaintiff filed the Complaint in this action on July 7, 2003,
alleging that Collecto violated 1692g of the FDCPA when it sent
the Second Letter within thirty days of the First Letter, thus
overshadowing and rendering ineffective the notice provided in
the First Letter. Plaintiff asserted that he brought the action
on behalf of all consumer debtors in Illinois from whom
Defendant attempted to collect debts using letters such as the
First and Second Letters where the Second Letter was sent within
30 days of the First Letter.
On July 8, 2003, Plaintiff filed a Chapter 13 bankruptcy
petition, listing his claim against Defendant as "Property
Claimed as Exempt" with a listed value of $1000. On October 29,
2003, Bankruptcy Judge Black issued an order confirming
Plaintiff's Chapter 13 plan.
CONTRACEPTION: Study Allows Women Easy Access To Pills, Patches
---------------------------------------------------------------
A study that is believed to be the first effort in the nation to
offer hormonal contraceptives at drugstores without a doctor's
prescription only requires women to answer 23 questions at a
pharmacy counter in order to purchase birth control pills, the
Associated Press reports.
The University of Washington project aims to find out if women
and pharmacists are comfortable with drugstore delivery of birth
control pills, patches and vaginal rings. That doesn't mean
women should stop going to the doctor for annual checkups to
guard against sexually transmitted diseases and other problems.
But most medical organizations agree it is not necessary to have
a pelvic exam to get birth control pills and the like. The study
is embraced by family planning and population control experts.
The best situation is for every woman to have immediate access
to medical care, "but there are women who don't have access, and
there are some barriers and difficulties," Dr. Robert Palmer
Jr., an obstetrician-gynecologist on the study's advisory board,
told the AP. Palmer is also state chairman for the American
College of Obstetricians and Gynecologists. James Trussell,
director of the Office of Population Research at Princeton
University, is hoping the idea will spread. "It's a terrific
idea. Seeing a pharmacist is just fine for these methods," he
said, noting that half the pregnancies in the United States each
year are unintended.
More than 50 women have enrolled since the study was launched
Feb. 23 by the UW School of Pharmacy and Department of
Obstetrics and Gynecology with funding from the National
Institutes of Health. Researchers hope to enroll 300 women.
Women 18 to 45 years old can visit any of eight Fred Meyer or
Bartell pharmacies in Seattle and its suburbs, complete a health
questionnaire and have their weight and blood pressure checked.
If they pass a good-health checklist, they can obtain three
months of birth-control pills or patches right away, and an
additional nine months' worth at a follow-up visit. The price is
$25 per visit plus the medicine. Insurance companies generally
will not pay.
Washington State has a long history of bold moves regarding
women's health. It became the first state to legalize abortion
through a vote of the people when an initiative was approved in
1970. And Washington was also the first to allow the morning-
after pill to be given out without a doctor's prescription. A
University of Washington study in 1997-99 pioneered the practice
- and it spread. Emergency contraception now is available at
pharmacists' counters in California, Hawaii, Alaska and New
Mexico.
CORTLAND SAVINGS & BANKING: AC Affirms Summary Judgment In Suit
--------------------------------------------------------------
The Court of Appeals of Ohio, Eleventh District, Trumbull County
Affirmed a ruling by the Trumbull County Court of Common Pleas,
granting defendant's cross motion for summary judgment and
denying plaintiff's motion for partial summary judgment, in a
lawsuit brought against Cortland Savings & Banking Co., on
behalf of John F. McDonagh, et al.
The facts of the case are as follows: on July 16, 1993,
Plaintiffs filed a federal case in the Northern District of
Ohio, Eastern Division, alleging breach of contract and
Racketeer Influenced and Corrupt Organizations Act (RICO)
claims, as well as state law claims which were included as
pendent causes of action. Plaintiffs' claims arose out of their
May 6, 1988 purchase of interests in campground resorts,
Ponderosa Park in Salem, Ohio and The Landing in North Lawrence,
Ohio, and sought recovery of money paid pursuant to a contract
with the Resorts' principal owners, the LiVorio-Sabatini Group,
for the purchase of 1/750th interests in the Resorts, which was
financed by defendant. Plaintiffs specifically alleged that
defendant engaged in a civil conspiracy with the Resorts'
developers, aided and abetted the developers, and committed
fraud and racketeering under RICO provisions.
The federal district court ultimately entered summary judgment,
dismissing the federal claims with prejudice and dismissing
without prejudice the state law based Federal Trade Commission
Holder claims for lack of pendent jurisdiction. Plaintiffs
appealed that decision to the Sixth Circuit Court of Appeals.
While the Sixth Circuit appeal was pending, Plaintiffs filed an
action in Trumbull County Court of Common Pleas, which later
granted defendants cross motion for summary judgment. On March
2, 1999, the Sixth Circuit upheld the dismissal of Plaintiffs
claims and held that contract, which was allegedly breached, was
a contract for the purchase of real estate rather than for
consumer goods and services.
CMS ENERGY CORP: Subsidiaries Face Consolidated Complaint In NY
---------------------------------------------------------------
A consolidated complaint was filed in the United States District
Court for the Southern District of New York against CMS Energy
subsidiaries CMS MST and CMS Field Services, along with dozens
of other energy companies, alleging that false natural gas price
reporting by the defendants manipulated the prices of NYMEX
natural gas futures and options. The complaint contains two
counts under the Commodity Exchange Act, one for manipulation
and one for aiding and abetting violations.
CMS Energy sold CMS Field Services to Cantera Natural Gas, Inc.
in July 2003, but is required to indemnify Cantera Natural Gas,
Inc. with respect to this action.
In August 2003, Cornerstone Propane Partners, L.P. filed the
original putative complaint which the Court ordered consolidated
with similar complaints filed by Dominick Viola and Roberto
Calle Gracey.
CMS ENERGY CORP: Faces Price-Fixing Lawsuit in California Court
---------------------------------------------------------------
Texas-Ohio Energy, Inc. filed a putative class action lawsuit in
the United States District Court for the Eastern District of
California against the Company, and a number of energy companies
engaged in the sale of natural gas in the United States.
The complaint alleges defendants entered into a price-fixing
conspiracy by engaging in activities to manipulate the price of
natural gas in California. The complaint contains counts
alleging violations of the Sherman Act, Cartwright Act
(a California statute), and the California Business and
Profession Code relating to unlawful, unfair and deceptive
business practices.
The plaintiff in the case has agreed to extend the time for all
defendants to answer or otherwise respond to the complaint until
after the multi-district court litigation panel decides whether
to take the case.
CMS ENERGY CORP: Faces Amended Consolidated Complaint In MI
-----------------------------------------------------------
Plaintiff filed an amended consolidated complaint in the United
States District Court for the Eastern District of Michigan,
against the Company, and certain unnamed officers and directors,
on behalf of participants and beneficiaries of the CMS
Employees' Savings and Incentive Plan. The two complaints,
consolidated by the Court, were originally filed in July 2002.
Plaintiffs allege breaches of fiduciary duties under ERISA and
seek restitution on behalf of the Plan with respect to a decline
in value of the shares of CMS Energy Common Stock held in the
Plan. Plaintiffs also seek other equitable relief and legal
fees. The Company said it will vigorously defend themselves but
cannot predict the outcome of this litigation.
DIABETES: Major Study To Seek Best Treatment For Afflicted Kids
---------------------------------------------------------------
Houston will be part of a major, five-year national study on how
best to treat children with type 2 diabetes, a growing illness
that threatens the nation's health, the Associated Press
reports.
Dr. Morey Haymond, professor of pediatrics at Baylor College of
Medicine and chief of the Diabetes Clinic at Texas Children's
Hospital, will lead the local study. Haymond said the disease is
a major problem in the Houston area because of its large
minority population. Blacks and Hispanics are more susceptible
to the disease. "In our community, this is a huge problem,"
Haymond told the Houston Chronicle for a story in Monday's
editions. "There have been no studies to look at what forms of
therapy are effective in treating children with type 2
diabetes."
Diabetes 2 normally affects adults age 40 and over, but it has
become more of a problem for children because they are getting
fatter. The average age of children diagnosed with diabetes 2 is
now 13, doctors said. The doctors are struggling to learn how
best to best control the illness in children - whether with
drugs or a combination of medicine and lifestyle changes. Data
on the number of children who have the disease are just now
being collected by federal officials.
In Houston, the number of diabetes 2 cases in gradually
increasing. In 1995, more than 95 percent of all children's
diabetes were type 1 cases. Type 1 diabetes, which normally
first appears in children, occurs when the pancreas fails to
make enough insulin. The remaining 5 percent of the diabetes
cases among children were type 2. Type 2 diabetes is when the
body is resistant to insulin, which can be made worse by obesity
and lack of exercise.
In 2003, the number of type 2 cases accounted for 31 percent of
all childhood cases at the Texas Children's Hospital, said Dr.
Siripoom McKay, an endocrinologist at the hospital. "That's a
reflection of obesity and inactivity, McKay said. Baylor will
receive between $5 million and $7 million in federal money to
participate in the study, which will enroll 750 children, ages
10 to 17, nationwide. The Houston study will follow 150
children.
The participants will be divided into three groups and will have
their blood-glucose levels monitored. One group will take
metfromin, the only drug approved by the U.S. Food and Drug
Administration for children with type 2 diabetes. A second group
will take a combination of metfromin and another drug,
rosiglitazone. The third group will take metfromin and make
lifestyle changes, including losing 7 to 10 percent of body
weight and increasing physical activity.
FIRST UNION SECURITIES: AC Vacates, Remands Stock Fraud Lawsuit
---------------------------------------------------------------
The United States Of Appeals, Eleventh Circuit vacated and
remanded a decision by the U.S. District Court for the Middle
District of Florida dismissing a lawsuit brought against First
Union Securities, Inc., on behalf of Plaintiffs Nicholas La
Grasta, et al., over allegations that analyst's "strong buy"
recommendation for particular corporation was made under
conflict of interest and artificially inflated price of
corporation's stock.
In this securities fraud class action against First Union
Securities, Inc., investors who purchased the stock of Ask
Jeeves, Inc., an online internet research company, claimed that
First Union's analyst, through her "strong buy" recommendations,
inflated the price of Ask Jeeves shares while acting under an
undisclosed conflict of interest. This conflict, it was alleged,
consisted of First Union and its analyst trying to obtain
investment-banking business from Ask Jeeves at the same time
that they were supposed to be providing unbiased analysis on the
company and its stock. According to the investors, this
undisclosed conflict caused the analyst to tout the stock so
that First Union would be looked upon favorably when Ask Jeeves
decided who was going to get its investment banking business,
and violated 10(b) of the Securities Exchange Act of 1934, 15
U.S.C. 78j(b), and Rule 10b-5, codified at 17 C.F.R. 240.10b-5.
First Union asked the district court to dismiss the complaint
under Federal Rule of Civil Procedure 12(b)(6), arguing in part
that the securities fraud claim was time-barred and that the
investors failed to sufficiently allege loss causation. The
district court dismissed the complaint on statute of limitations
grounds, concluding that the investors--who had purchased the
stock at prices ranging from $78 to $134 per share--were on
inquiry notice of securities fraud when the stock dropped to $24
per share. Given its ruling on the statute of limitations
issue, the district court did not address First Union's loss
causation argument.
FLORIDA: Doctor Admits to Witness Tampering In Malpractice Case
---------------------------------------------------------------
A radiologist who faces a medical malpractice lawsuit not only
admitted to anonymously mailing a key witness in the case an
article advocating the blacklisting of physicians who testify
against their colleagues, but said she would do it again,
according to a recent deposition, Market Wire reports.
The two remaining defendants in the lawsuit, Carol Adami, M.D.,
and colleague Vincent Mazzeo M.D., are accused of negligence for
misreading a screening mammogram for Plaintiff Marsha Gilarmo,
45, a Palm Beach County resident and mother of three minor
children. Gilarmo's lawyers allege that doctors failed to detect
obvious radiographic findings of cancer that resulted in Gilarmo
suffering a nine-month delay in the diagnosis and treatment of
her cancer. A confidential settlement with another doctor in the
case as well as Boca Raton Community Hospital has been reached.
According to the deposition, Adami admitted to sending the
article to a key witness in the case, Dr. G.W. Eklund, a world-
renowned authority in the field of mammography for whom a
standard mammographic technique is named. Rather than signing
her own name and address on the envelope, Adami wrote the name
and address of the director of her employer, Boca Radiology
Group. She eventually admitted to sending the article herself
only after the Court threatened to force all of the radiologists
employed by Boca Radiology Group to submit fingerprint,
handwriting and DNA samples.
In her deposition, Adami denied any wrongdoing or engaging in
intimidation tactics by sending the letter, claiming that she
sent the letter only because she believed the expert was
applying an unfair standard of care. However, Adami was unable
to provide an explanation as to why she did not mail the article
in question to other medical experts.
"Adami's actions were specifically directed to Dr. Eklund, and
were a blatant attempt to dissuade Eklund from testifying at the
upcoming trial," said Plaintiffs' counsel, Mark Glassman of
Freedland, Glassman, Farmer & Sheller." If her intentions were
so honorable, then why did she forge another person's name on
the envelope?" Adami was a no show at a recent hearing in which
Judge Gill Freeman ruled her actions were inappropriate. Judge
Freeman ruled evidence of Adami's conduct and the article in
question are admissible at trial in Plaintiffs' case in chief,
and the Court is considering a special instruction advising the
jury how they may interpret Adami's actions. Additionally, Adami
will be held responsible for attorney's fees and costs related
to work performed during the witness tampering investigation.
Meanwhile, the true victim in the case, Gilarmo, suffers with a
very aggressive form of breast cancer that has spread to her
lymph nodes. She recently suffered a second recurrence of
cancer, which resulted in hospitalization and life prolonging
surgery. "The negligence of Adami and Mazzeo will cost Marsha
Gilarmo her life," said Glassman. "The Gilarmos are eager for
their day in Court." Trial is set for May 2004 in Miami-Dade
County.
FORD MOTOR CREDIT COMPANY: ECOA Violations Suit Remanded To NY
--------------------------------------------------------------
The United States Court of Appeals, Second Circuit vacated and
remanded a decision by the U.S. District Court for the Southern
District of New York, dismissing counterclaims asserted by
defendant Ford Motor Credit Co. for amounts due on certain named
plaintiffs' loans and conditional counterclaims for any amounts
owed due to loan defaults by members of putative class, in a
lawsuit brought on behalf of Plaintiff borrower Joyce Jones, et
al., alleging race discrimination under Equal Credit Opportunity
Act (ECOA).
Plaintiffs Joyce Jones, Martha L. Edwards, Lou Cooper, and
Vincent E. Jackson, individually and as class representatives
sued Ford Credit alleging racial discrimination under the Equal
Credit Opportunity Act, 15 U.S.C. 1691 et seq. They had
purchased Ford vehicles under Ford Credit's financing plan.
They alleged that the financing plan discriminated against
African-Americans. Although the financing rate was primarily
based on objective criteria, Ford Credit permitted its dealers
to mark up the rate, using subjective criteria to assess non-
risk charges. The Plaintiffs alleged that the mark-up policy
penalized African-American customers with higher rates than
those imposed on similarly situated Caucasian customers.
In its Answer, Ford Credit denied the charges of racial
discrimination and also asserted state-law counterclaims against
Jones, Edwards, and Cooper for the amounts of their unpaid car
loans. Ford Credit alleged that Jones was in default on her
obligations under her contract for the purchase of a 1995 Ford
Windstar, and that Edwards and Cooper were in default on
payments for their joint purchase of a 1995 Mercury Cougar.
Additionally, in the event that a class was certified, Ford
Credit asserted conditional counterclaims against any member of
that class who was in default on a car loan. The Plaintiffs
moved to dismiss Ford Credit's counterclaims for lack of
subject matter jurisdiction, Fed.R.Civ.P. 12(b)(1), lack of
personal jurisdiction, Fed.R.Civ.P. 12(b)(2), improper venue,
Fed.R.Civ.P. 12(b)(3), and failure to state a claim upon which
relief could be granted, Fed.R.Civ.P. 12(b)(6).
The District Court granted the Plaintiffs' motion and dismissed
Ford Credit's counterclaims. On March 27, 2003, the District
Court entered judgment pursuant to Fed.R.Civ.P. 54(b) in favor
of the Plaintiffs, dismissing Ford Credit's counterclaims
without prejudice. Ford Credit appeals from this decision.
HOLOCAUST LITIGATION: Justice Lawyers Seek Dismissal Of Lawsuit
---------------------------------------------------------------
The Justice Department has hardened its position on a Holocaust
lawsuit claiming the U.S. Army plundered riches seized by Nazis
from 800,000 Hungarian Jews and covered it up for decades, the
Associated Press reports.
In court Monday, government attorney Caroline Wolverton said she
could not commit to mediation and would fight for dismissal of
the lawsuit, which claims $50 million to $120 million in seized
gold, jewels, art and other valuables were taken by Americans
from a Nazi train they caught in 1945. Last September, Assistant
Attorney General Peter Keisler, Wolverton's boss and head of
Justice's civil division, wrote U.S. Sen. Rick Santorum, R-Pa.,
to say the department is committed to working with the Hungarian
Holocaust survivors "to reach a full and fair resolution of
their claims."
After the hearing, Justice Department spokesman Charles Miller
said, "What she said is where we are right now, and we have no
comment with regard to the correspondence between the assistant
attorney general and Sen. Santorum." Amy Hybels, a spokeswoman
for Santorum, said, "We are looking into what transpired today."
His office got involved at the request of constituents Andrew
Katona and his wife, of Bala Cynwyd, Pa.
About 30,000 Hungarian Jews and their survivors are asking for
trial on their class action claims of large-scale looting and
official denials that the train even existed until a 1999 report
on Holocaust assets by a commission named by President Clinton.
The judge noted mediation is mandatory under congressional
directives and U.S. Supreme Court rules. The court hearing was
held as the legal dispute intensifies over claims in the 172-
page lawsuit. In a procedural quirk, the U.S. government has not
filed a formal response to the suit originally filed in 2001.
The judge asked both sides to exchange information by Wednesday.
Meanwhile, reports from expert witnesses analyzing the train
dispute are due Friday, and survivors are set to begin six weeks
of depositions Monday. The judge said she hoped in early
September to consider Justice's request for dismissal based on a
procedural question of jurisdiction.
Attorneys for the survivors have poured over papers in the
National Archives as well as confidential files in Clinton's
presidential archives to research the case. The judge told
attorneys she thought is was "very critical" to videotape the
depositions of the aging survivors, noting an appeal that could
take two years to resolve is likely after she decides the
dismissal motion.
Hungarian Jews claim the United States illegally seized, sold or
distributed gold, jewels, 1,200 paintings, silver, china,
porcelain, 3,000 Oriental carpets and other heirlooms seized by
the Nazis from their households. The families claim a train with
29 boxcars moved from Hungary to Austria to avoid advancing
Soviet troops days after Germany's surrender and was intercepted
by U.S. soldiers in May 1945. Ownership was marked on many
items, and many families still have receipts for the seized
property, their lawyers said. The United States agreed in 1946
to return all looted Hungarian property but later reclassified
the train's treasures as "captured enemy property." Much was
sold at New York auctions in 1948 to help defray the costs of
Jewish restoration programs in Europe.
INDYMAC BANK FSB: Counts I, II of TILA Violations Suit Dismissed
----------------------------------------------------------------
The United States District Court for the Northern District of
Illinois, Eastern Division, granted Defendant's Motion to
Dismiss Counts I and II, but declines to exercise supplemental
jurisdiction over state law claims in Count III, in a three-
count putative class action complaint brought against IndyMac
Bank FSB, et al., on behalf of Plaintiff Elizabeth Scott, for
rescission of a mortgage loan and damages. Specifically,
plaintiff alleges individual and class violations of the Truth
in Lending Act (TILA), 15 U.S.C. 1601 et seq. against IndyMac
and the John Doc defendants (Count I and II) and violations of
the Illinois Consumer Fraud Act, 815 ILCS 505/2 against all
defendants.
Plaintiff hired Capital Mortgage Services, LLC (CMS), a mortgage
broker, to find financing to refinance her home and consolidate
her debts. CMS found financing with IndyMac. The loan closed on
March 15, 2002. CMS arranged for title insurance from Tittle
Shield, LLC (TS), which is owned and managed by defendants
Golding and Silverman, who also own and manage CMS. Plaintiff
was charged a total of $966.00 for title insurance and related
charges, comprising:
(1) $200.00 for a title search paid to Lakeshore Title
Agency, and
(2) $766.00 for title insurance and endorsements from TS.
Chicago Title Insurance Company, quotes a basic rate of
$479.80 for a $79,000 loan, and there is a refinancing rate of
75% of that basic rate. Plaintiff was also charged $49.50 for
recording a mortgage and $34.50 for recording a release. The
actual cost to record the mortgage was $45.50 and the release
was recorded by plaintiff's prior lender.
In Counts I and II, plaintiff alleges that the finance charges
disclosed to her in the TILA documents were understated in three
ways, giving her a right to rescind the mortgage. First, because
CMS obtained title insurance from TS, which plaintiff terms a
"related company," at a cost of almost twice the rate quoted by
Chicago Title, the cost was not bona fide and reasonable and,
therefore, should have been included in the TILA disclosure
documents as a finance charge. Additionally, because she was
charged $49.50 for recording the mortgage and the actual charge
was $45.50 there was an undisclosed $4.00 finance charge.
Finally, plaintiff was charged $34 .50 for recording a release
that was in fact recorded and paid for by plaintiff's prior
lender. Therefore, according to plaintiff the finance charges
disclosed were understated by $1,04.50, an amount in excess of
the tolerance for accuracy of .5 percent of the loan principal.
Because the TILA claim against IndyMac is the only basis for
this court's subject matter jurisdiction, the court declines to
exercise supplemental jurisdiction over the remaining state law
claims in Count III. Accordingly Count III is dismissed with
prejudice.
The suit names as defendants the following: INDYMAC BANK, FSB;
Capital Mortgage Services, LLC; Title Shield, LLC; Jeff
Golding; Evan M. Silverman, and John Does 1-5.
INTERNATIONAL FLAVORS: Jury Awards Man $20M in 'Vapors' Lawsuit
---------------------------------------------------------------
A factory worker who claimed his lungs were ruined as result of
mixing flavoring oils used in microwave popcorn was awarded $20
million by a jury Monday, the Associated Press reports.
Eric Peoples was the first of 30 former workers at the Gilster-
Mary Lee Corp. plant in Jasper to have his suit heard against
the two makers of the butter flavoring. Following a morning of
closing arguments, the jury deliberated for a little more than
three hours before returning the verdict. People cried and
hugged his wife, Cassandra, as the jury ruled against
International Flavors and Fragrances Inc. and its subsidiary
Bush Boake Allen Inc., the manufacturers of the flavoring.
They were ordered to pay $18 million to Eric Peoples and $2
million to his wife for compensatory personal injury damages. No
punitive damages were awarded. The attorneys for the
manufacturers left the courthouse without speaking to reporters.
INTERNATIONAL TRUCK & ENGINE CORP: AC Remands Work-Bias Lawsuit
---------------------------------------------------------------
The United States Court of Appeals, Seventh Circuit vacated and
remanded a ruling by the U.S. District Court for the Southern
District of Indiana, denying class representation of a lawsuit
brought against the International Truck & Engine Corp., on
behalf of plaintiff Greg Allen, et al., seeking both financial
and equitable relief from white employees' alleged pervasive
hostility toward and harassment of their black coworkers and
supervisors' failure to act on their complaints, and
certification as class representatives.
Plaintiffs are 27 current or former employees at the
Indianapolis plant of International Truck & Engine Corp., which
used to be called Navistar International Corporation. They
contend that white employees at the plant evinced pervasive
hostility toward, and harassment of, their black co-workers, and
that, when black employees complained, the plant's top
supervisors told them that nothing would be done, and their
best option was to quit. Plaintiffs seek both financial and
equitable relief; they further want to be certified as
representatives of a class of the plant's current and former
black employees, some 350 in number during the period covered by
the complaint.
The district judge found that all requirements of Fed.R.Civ.P.
23(a) have been satisfied but declined to allow plaintiffs to
represent others similarly situated: the presence of individual
claims made class treatment of damages imprudent, and the
seventh amendment rendered class treatment of the equitable
theories improper. Plaintiffs have filed a petition under Rule
23(f) seeking interlocutory review of this decision.
MARTHA STEWART: Resigns From Company Board In Wake Of Verdict
-------------------------------------------------------------
Martha Stewart has resigned from the board of Martha Stewart
Living Omnimedia, the Associated Press reports.
The home-decorating entrepreneur and her former stockbroker,
Peter Bacanovic, were convicted of lying to investigators
about why Stewart sold 3,928 shares of ImClone Systems stock.
Stewart was convicted of four crimes that, under the law, carry
a maximum sentence of 20 years in prison.
The specific crimes - conspiracy, obstruction of justice and
twice making false statements - fall under Level 12, which means
a judge could sentence her to 10 to 16 months in prison. Stewart
will stay on at the company in a creative capacity.
MICROSOFT CORPORATION: Brussels Nears Anti-Trust Ruling In Case
---------------------------------------------------------------
The European Commission has scaled down its demands for
Microsoft to change its business practices in a move that some
of the software company's opponents fear does not go far enough
against Microsoft's alleged abuse of its Windows monopoly, The
Financial Times reports.
But Microsoft too with Brussels' proposed solution to the long-
running anti-trust case, which involves giving a central role to
computer manufacturers. The Commission alleges that Microsoft
has illegally used its dominant position over PC operating
systems to gain ascendancy in other markets. The most sensitive
part of the case deals with Microsoft's Windows Media Player
program, which the Company says is an integral part of Windows.
Microsoft says it is merely meeting consumer demand for new
features, but the Commission argues that "tying" the two
products together prevents competition.
In formal charges filed last August, the Commission said "both
home users and corporate customers" would have to be offered
Windows without Media Player. An alternative would force
Microsoft to include rival programs in Windows. Brussels has
now jettisoned both these options. Instead, it wants to give
computer manufacturers the choice of whether to sell Windows
with Media Player, with a rival product, or without any such
program. Brussels is scheduled to rule against the Company on
March 24 unless there is a deal beforehand.
MICROSOFT CORPORATION: Antitrust Case Begins In MN State Court
--------------------------------------------------------------
Microsoft Corp. improperly overcharged for licenses for its
Windows operating system and two other popular programs, a
lawyer said Monday as the first class-action, antitrust trial in
a state court opened against the software giant, Dow Jones
Business News reports.
The case, being heard by a jury in Hennepin County District
Court, involves alleged overcharging for Windows and the
company's Word and Excel programs. The outcome could affect
nearly 1 million individuals and businesses. The plaintiffs are
seeking damages between $283 million and $425 million for
alleged overcharges on about 9.7 million Microsoft software
licenses issued in Minnesota from 1994 to 2001. Plaintiff's
attorney Gene Crew described to jurors the antitrust laws that
he said applied in the case and then said: "Microsoft broke
those rules of fair play. They broke the law. It's that simple."
Microsoft attorneys were scheduled to make their opening
statements on Tuesday, but outside the courtroom Monday they
denied the allegations. "We didn't overcharge anyone, and people
got good value," said Steven Aeschbacher, Microsoft assistant
general counsel. Microsoft has reached settlements in nine
states and Washington, D.C., totaling $1.5 billion, including
$1.1 billion in California. Cases were dismissed in 16 other
states. Aeschbacher declined to comment on whether there were
any ongoing settlement talks in the Minnesota trial, which is
expected to last 15 weeks.
Microsoft lost a closely watched antitrust case to the federal
government in 1999. In that case, Microsoft was found to have
illegally monopolized the operating system market using Windows.
The trial judge ordered a breakup of Microsoft, but a federal
circuit court overruled the decision. It did, however, uphold
the judgment that Microsoft held a monopoly with Windows.
District Judge Bruce A. Peterson told jurors on Monday about the
federal case, but noted that the state case involved other
Microsoft products and covered a slightly different time period.
OHIO: Cincinnati Bengals To Counter-Sue County In Anti-Trust Row
----------------------------------------------------------------
The Cincinnati Bengals, bracing for a long court fight over
Hamilton County's antitrust lawsuit alleging that the National
Football League used its monopoly power to "extort" a new
stadium from taxpayers, said Friday the team would counter sue
the county for millions, The Cincinnati Enquirer reports.
"If you start pulling the string, I don't know where it stops,"
said Troy Blackburn, the Bengals' director of business
development. "This is, realistically, a four-year litigation.
It's going to get ugly. It's going to get expensive." Blackburn
and Bengals lawyer W. Stuart Dornette spoke to Cincinnati
Enquirer editors Friday, two days after the county commission
voted 2-0 to enter the year-old federal lawsuit. Republican Phil
Heimlich joined with Democrat Todd Portune, a longtime critic of
the stadium deal, to hire class-action lawyer Stan Chesley to
represent the county.
Blackburn, in the team's first public statement since the county
entered the $200 million lawsuit, acknowledged the Bengals
hadn't taken the lawsuit seriously until Wednesday. "Until this
week, what were we supposed to do? Until this week, you had one
voice at the county commission. Now it appears there are two.
That's a majority. That's a sea change," he said. "We have been
too silent. We tried to work with the county, and not get into a
political fight with Todd Portune - who the last time I looked
was running for re-election in November."
The lawsuit claims that the Bengals and the NFL used high-
pressure tactics - including well-publicized threats to move to
Baltimore, Cleveland or Los Angeles - to get voters to approve a
sales tax to pay for two new stadiums in 1996. Blackburn said
that if the county's suit moves forward, the Bengals would
countersue to protect the team's interests. Among the team's
possible claims: that the lease requires the county, not the
Bengals, to pay $14 million in federal taxes on the sale of
personal seat licenses. The team paid the taxes while the county
fights with the Internal Revenue Service over the liability.
If the county loses the antitrust lawsuit, the lease agreement
requires taxpayers to pay the Bengals' legal bills. And even if
the lawsuit is successful, Hamilton County might accomplish
nothing more than invalidating the 1997 lease. Portune said he
would call the Bengals' bluff. "Nobody's going to buy that
'we're going to move to another town' stuff again," he said.
Portune first filed the lawsuit in 2002 as a taxpayer. When the
Ohio Ethics Commission said the lawsuit conflicted with his job
as a commissioner, he handed it off to Green Township activist
Carrie Davis. U.S. District Judge S. Arthur Spiegel ruled last
month that Davis had standing to bring the lawsuit and that the
antitrust claims could proceed to trial. That ruling could have
national significance, allowing the county's lawyers to open up
the books of the Bengals and the other 30 privately owned NFL
teams. The league has long fought against any disclosure of a
team's finances. In his ruling last month, Spiegel said the
plaintiffs could use the Times story to show that - contrary to
the Bengals' assertions - free agency and profit-sharing had not
cut into the team's profits.
A 2001 Los Angeles Times story - which for the first time
disclosed details of football's finances contained in a lawsuit
between the Oakland Raiders and the NFL - is what kept Portune's
lawsuit in the ballgame. More importantly, it was the 2001 story
- and not the 1997 lease - that started the clock ticking on the
four-year statute of limitations, Spiegel ruled.
Blackburn disagrees. He said the county - represented by the
Chicago sports law firm of Rudnick & Wolfe - should have known
about possible antitrust implications in 1996. After all, he
said, the St. Louis Convention and Visitors Commission filed a
similar lawsuit against the former Los Angeles Rams in 1995.
That lawsuit ultimately failed.
SAME-SEX MARRIAGES: Ministers Charged For Wedding NY Gay Couples
----------------------------------------------------------------
Two Unitarian Universalist ministers were charged Monday for
marrying 13 same-sex couples, thrusting the clergy into the
legal battle over gay marriage in New York, the Associated Press
reports.
Ministers Kay Greenleaf and Dawn Sangrey were charged with
multiple counts of solemnizing a marriage without a license, the
same charges leveled against New Paltz Mayor Jason West who last
month drew the state into the widening national debate over
same-sex unions. The pair performed the weddings March 6.
Ulster County District Attorney Donald Williams had said before
Monday's charges were announced that it would be more difficult
considering charges against clergy because the clergy had not
sworn to uphold the law. The ministers' lawyer, Robert Gottlieb,
was unaware of the charges when contacted by The Associated
Press and declined to comment immediately.
TRANSMETA CORPORATION: Settles Derivative Shareholders' Suit
------------------------------------------------------------
Beginning June 2001, the directors and certain officers of
Transmeta Corporation were named as defendants in four purported
shareholder derivative actions that were consolidated in and by
the Superior Court for Santa Clara County in "In re Transmeta
Corporation Derivative Litigation," Master File No.CV799491.
In July 2002, the Court sustained the Company's demurrer with
leave to amend based on plaintiffs' lack of standing, and
deferred consideration of the individual defendants' demurrer on
the merits.
"The Company and the individual defendants believe that the
complaints are without merit and deny any liability, but because
they also wish to avoid the continuing waste of management time
and expense of litigation, they entered into an agreement to
settle all claims that might have been brought in this action,"
Transmeta Corporation said in a recent SEC filing.
The settlement includes a payment of approximately $300,000 in
fees to counsel for the derivative plaintiffs and shall be fully
funded by defendants' director and officer liability insurance.
In October 2003, upon motion and after a hearing, the Court
approved the settlement and entered an order dismissing the
consolidated derivative action as to all defendants.
For more information, contact Transmeta Corporation by Mail:
3940 Freedom Circle, 415-413-1880 Santa Clara CA 95054 or by
Phone: (408) 919-3000
TRANSMETA CORPORATION: Joins 'Consolidated IPO Suit' Settlement
---------------------------------------------------------------
Beginning June 2001, the Company, certain of its directors and
officers, and certain of the underwriters for its initial public
offering were named as defendants in three putative shareholder
class actions that were consolidated in and by the United States
District Court for the Southern District of New York in "In re
Transmeta Corporation Initial Public Offering Securities
Litigation," Case No.01 CV6492.
The complaints allege that the prospectus issued in connection
with the Company's initial public offering on November 7, 2000
failed to disclose certain alleged actions by the underwriters
for that offering, and alleges claims against the Company and
several of its officers and directors under Sections 11 and 15
of the Securities Act of 1933, as amended, and under Section
10(b) and Section 20(a) of the Securities Exchange Act of 1934,
as amended.
Similar actions have been filed against more than 300 other
companies that issued stock in connection with other initial
public offerings during 1999-2000. Those cases have been
coordinated for pretrial purposes as "In re Initial Public
Offering Securities Litigation," Master File No.21 MC92 (SAS).
In July 2002, the Company joined in a coordinated motion to
dismiss filed on behalf of multiple issuers and other
defendants. In February 2003, the Court granted in part and
denied in part the coordinated motion to dismiss, and issued an
order regarding the pleading of amended complaints. Plaintiffs
subsequently proposed a settlement offer to all issuer
defendants, which settlement would provide for payments by
issuers' insurance carriers if plaintiffs fail to recover a
certain amount from underwriter defendants.
"Although the Company and the individual defendants believe that
the complaints are without merit and deny any liability, but
because they also wish to avoid the continuing waste of
management time and expense of litigation, they accepted
plaintiffs' proposal to settle all claims that might have been
brought in this action," Transmeta's latest SEC disclosure
states. "The Company and the individual Transmeta defendants
expect that their share of the global settlement will be fully
funded by their director and officer liability insurance."
Although the Company and the Transmeta defendants have approved
the settlement in principle, it remains subject to several
procedural conditions, as well as formal approval by the Court.
It is possible that the parties may not reach a final written
settlement agreement or that the Court may decline to approve
the settlement in whole or part, the company said. In the event
that the parties do not reach agreement on the final settlement,
the Company and the Transmeta defendants believe that they have
meritorious defenses and intend to defend any remaining action
vigorously.
For more information, contact Transmeta Corporation by Mail:
3940 Freedom Circle, 415-413-1880 Santa Clara CA 95054 or by
Phone: (408) 919-3000.
TRIQUINT SEMICONDUCTOR: Securities Suit Stayed Pending CA Ruling
----------------------------------------------------------------
In February 2003, several nearly identical putative civil class
action lawsuits were filed in the United States District Court
for the Middle District of Florida against Sawtek, Inc., a
wholly owned subsidiary of Triquint Semiconductor since July
2001. The lawsuits also named as defendants current and former
officers of Sawtek and our company.
The cases were consolidated into one action, and an amended
complaint was filed in this action on July 21, 2003. The amended
class action complaint is purportedly filed on behalf of
purchasers of Sawtek's stock between January 2000 and May 24,
2001, and alleges that the defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act, as well as Securities
and Exchange Commission Rule 10b-5, by making false and
misleading statements and/or omissions to inflate Sawtek's stock
price and conceal the downward trend in revenues disclosed in
Sawtek's May 23, 2001 press release. The complaint does not
specify the amount of monetary damages sought. Sawtek and the
individual defendants filed their motion to dismiss on September
3, 2003, and briefing on the motion was completed on November
19, 2003. The court heard oral argument on November21, 2003, and
issued an order partially denying the motion to dismiss on
December 19, 2003. Specifically, the court found that the
complaint was not barred by the statute of limitations, but
reserved ruling on the other aspects of the motion to dismiss.
Because the statute of limitations issue is a novel question
of law, the court stayed the proceedings in this case to allow
the defendants to file an interlocutory appeal to the Eleventh
Circuit Court of Appeals. Defendants duly filed for
interlocutory appeal on January 22, 2004. Because the Court of
Appeals is considering the identical issue in another matter,
the appeal process has been stayed, pending the Court of
Appeals' decision in the other matter.
"We deny the allegations contained in the complaint and intend
to continue our vigorous defense against these claims,"
Triquint's latest SEC disclosure states.
For more information, contact Triquint Semiconductor, Inc. by
Mail: 2300 NE Brookwood Parkway, Hillsboro OR 97124 or by Phone:
(503) 615-9000.
TRUMBULL SAVINGS & LOAN: Summary Judgment Of RICO Suit Affirmed
---------------------------------------------------------------
Court of Appeals of Ohio, Eleventh District, Trumbull County
affirmed a ruling by the Trumbull County Court of Common Pleas,
granting Defendant's cross motion for summary judgment and
denying Plaintiff's motion for partial summary judgment, in a
lawsuit brought against the Trumbull Savings & Loan Co., on
behalf of Plaintiff William A. Isaak, et al.
The facts of the case are as follows: in May 1993, appellants
filed a federal case in the Northern District of Ohio, Eastern
Division, alleging breach of contract and Racketeer Influenced
and Corrupt Organizations Act (RICO) claims, as well as state
law claims which were included as pendent causes of action.
Plaintiffs' claims arose out of their January 1987 purchase of
interests in two campground resorts, Ponderosa Park in Salem,
Ohio and The Landing in North Lawrence, Ohio. Plaintiffs sought
recovery of money paid pursuant to a contract with the Resorts'
principal owners, the LiVorio-Sabatini Group, for the purchase
of 1/750th interests in the Resorts which was financed by the
defendant. Plaintiffs specifically alleged that defendant
engaged in a civil conspiracy with the Resorts' developers,
aided and abetted the developers, and committed fraud and
racketeering under RICO provisions.
Initially, the Group obtained commercial financing from Bank One
of Youngstown, Ohio in 1985. In order to gain an influx of
financing and an appearance of credit-worthiness, the Group
bribed two Bank One officials. However, in 1986, senior Bank One
officials uncovered the fraud and canceled its loan relationship
with the Group. As a result, the Group approached the defendants
for additional financing. In 1988, the Resorts filed Chapter 11
bankruptcy proceedings in the United States Bankruptcy Court for
the Northern District of Ohio, Eastern Division.
The federal district court ultimately entered summary judgment
dismissing the federal claims with prejudice and dismissing
without prejudice the state law based Federal Trade Commission
Holder claims for lack of pendent jurisdiction. Plaintiffs
appealed that decision to the Sixth Circuit Court of Appeals.
While the Sixth Circuit appeal was pending, Plaintiffs filed an
action in Trumbull County Court of Common Pleas, which later
granted defendant's cross motion for summary judgment. On March
2, 1999, the Sixth Circuit upheld the dismissal of Plaintiffs
claims and held that appellants' contract, which was allegedly
breached, was a contract for the purchase of real estate rather
than for consumer goods and services.
TYCO INTERNATIONAL: Closing Arguments Resume In Corruption Trial
----------------------------------------------------------------
The lawyer for former Tyco International Ltd. chairman Dennis
Kozlowski urged jurors to ignore the executive's parties,
affairs and lavish lifestyle as closing arguments resumed on
Monday in his corruption trial, Reuters News reports.
Trial summations in Manhattan Supreme Court in one of the
largest corporate corruption cases in U.S. history were
suspended last week when Kozlowski's lawyer, Stephen Kaufman,
took ill. Back in court on Monday, Kaufman denied charges that
Kozlowski stole from the company or cheated the government.
Kozlowski and his co-defendant, former Tyco finance chief Mark
Swartz, are accused of looting the manufacturing conglomerate of
hundreds of millions of dollars through unauthorized bonuses,
loans and fraudulent stock sales. "Dennis is not a liar, not a
thief and never stole from the company that he was the architect
of," Kaufman said in his closing arguments.
The trial against the two executives began on Sept. 29 and is in
its sixth month. Last week, Charles Stillman, the top defense
lawyer for co-defendant Swartz, said in his closing argument
that his client never acted with criminal intent. Both
defendants have pleaded not guilty to the 32-count indictment
that could yield sentences of up to 25 years in state prison.
Kaufman referred to a video presented as evidence during the
trial of scenes of debauchery at Kozlowski's wife's birthday in
Sardinia in 2001 that cost $2.1 million, about half paid by the
company, according to prosecutors. The video showed chariots,
scantily clad gladiators, and an ice sculpture of Michelangelo's
David urinating vodka. "I'm not sure whether this is one of the
10 best videos of the year or one of the 10 worst videos of the
year," Kaufman said to the jurors on Monday. He said about half
the people present were Tyco employees.
Kaufman's closing argument was expected to finish later on
Monday, followed by the prosecution's summations on Tuesday. The
jury was expected to begin deliberations on Wednesday.
UNION ELECTRIC: Mediation Proceedings Involving CILCO Ongoing
-------------------------------------------------------------
On December 10, 2002, EPMI filed a complaint against AES,
Constellation New Energy, Inc., formerly known as AES New Energy
Inc., and CILCO in the U.S. Bankruptcy Court for the Southern
District of New York.
With respect to CILCO, EPMI alleges that it is owed $31.2
million under the Master Agreement. CILCO disputes that any
amount is owed EPMI based on the clear language of the Master
Agreement, Section 553 of the Bankruptcy Code and EPMI's
misconduct prior to entering into the Master Agreement and
continuing through the date of its bankruptcy filing.
EPMI's complaint against CILCO and others is part of a large
class of claims that have been stayed pending mandatory court
ordered mediation. Mediation sessions are ongoing and the
parties are continuing to discuss potential settlement. AES has
agreed to undertake CILCO's defense in this proceeding and
intends to vigorously contest these claims.
"Due to CILCO's contractual and other defenses to EPMI's claims,
as well as certain provisions related to the sale of CILCO to
Ameren, we do not believe the results of this litigation will
have a material adverse effect on CILCO's financial position,
results of operations or liquidity," Union Electric Company said
in a recent SEC disclosure.
Union Electric offers electric and natural gas services in
Missouri and Illinois, according to http://www.hoovers.com.
Operating as AmerenUE, the utility serves 1.2 million power
customers and 130,000 gas customers and has interests in power
plants with approximately 8,000 MW of generating capacity.
For more information, contact Union Electric Company by Mail:
1901 Choteau Ave. St Louis, MO 63103 or by Phone: (314) 621-3222
or by Fax: (314) 554-3801 or visit its Web site:
http://www.ameren.com
UNION ELECTRIC: Retirees Seek Damages; Cite ERISA Violations
------------------------------------------------------------
On June 18, 2003, 20 retirees and surviving spouses of retirees
of various Ameren companies (the plaintiffs) filed a complaint
in the U.S. District Court, Southern District of Illinois,
against Ameren, UE, CIPS, Genco and Ameren Services, and against
Retiree Medical Plan of Union Electric Company (the defendants).
The retirees were members of various local labor unions of the
IBEW and the IUOE. The complaint, referred to as Barnett, et
al. vs. Ameren Corporation, et al., alleges the following:
(1) The labor organizations, which represented the plaintiffs,
have historically negotiated retiree medical benefits with
the defendants and that pursuant to the negotiated
collective bargaining agreements and other negotiated
documents, the plaintiffs are guaranteed medical benefits at
no cost or at a fixed maximum cost during their retirement;
(2) Ameren has unilaterally announced that, beginning in 2004,
retirees must pay a portion of their own healthcare premiums
and either an increasing portion of their dependents'
premiums or newly imposed dependents' premiums, and that
surviving spouses will be paying increased amounts for their
medical benefits;
(3) The defendants' actions deprive the plaintiffs of vested
benefits and thus violate ERISA and the Labor Management
Relations Act of 1947, and constitute a breach of the
defendants' fiduciary duties; and
(4) The defendants are estopped from changing the plan benefits.
(This allegation was subsequently dropped from the amended
complaints)
The plaintiffs filed the complaint on behalf of themselves,
other similarly situated former non-management employees and
their surviving spouses who retired from January 1, 1992 through
October 1, 2002, and on behalf of all subsequent non-management
retirees and their surviving spouses whose medical benefits are
reduced or are threatened with reduction. The plaintiffs seek
to have this lawsuit certified as a class action, seek
injunctive relief and declaratory relief, seek actual damages
for any amounts they are made to pay as a result of the
defendants' actions, and seek payment of attorney fees and
costs.
An amended complaint that added three plaintiffs was filed July
15, 2003. In response to the Court's ruling on the defendants'
motions to dismiss various counts of the complaint, a second
amended complaint was filed on December 15, 2003, clarifying
some of the allegations, adding two and dropping two plaintiffs,
and adding the Ameren Group Medical Plan as a defendant.
"We are unable to predict the outcome of this lawsuit or the
impact of the outcome on our financial position, results of
operations or liquidity," Union Electric, which trades as
AmerenUE, said in its latest SEC filing.
For more information, contact Union Electric Company by Mail:
1901 Choteau Ave. St Louis, MO 63103 or by Phone: (314) 621-3222
or by Fax: (314) 554-3801 or visit its Web site:
http://www.ameren.com
UTSTARCOM INC: Impleaded in 'Consolidated IPO Suit' in N.Y.
-----------------------------------------------------------
UTStarcom, Inc. is one of the defendants in "In re Initial
Public Offering Securities Litigation, 21 MC 92." Filed against
more than 300 companies, this case is being coordinated in the
United States District Court for the Southern District of New
York.
"We and various underwriters for our initial public offering are
defendants in a purported shareholder class action," according
to the latest SEC filing of UTStarcom, Inc. "The complaint
alleges undisclosed improper underwriting practices concerning
the allocation of IPO shares, in violation of the federal
securities laws."
"Although we believe we have valid defenses to the claims
against us and intend to defend the litigation vigorously, until
the matter is resolved, it will be necessary for us to continue
to expend time and financial resources on the matter," the
company added. "Moreover, an adverse judgment in the litigation
could materially harm our operations."
For more information, contact UTStarcom, Inc. by Mail: 1275
Harbor Bay Parkway, STE 100 Alameda CA 94502 or by Phone:
(510) 864-8800.
WEIRTON STEEL CORP: Federal Judge Ends Retiree Benefits April 1
---------------------------------------------------------------
A federal bankruptcy judge reluctantly ordered the termination
of health care coverage for at least 9,000 retirees of Weirton
Steel Corp. and their dependents at month's end, after lawyers
argued that continued payments of $3 million a month could force
the steel maker into liquidation, the Associated Press reports.
The company had originally requested that benefits be cut off
immediately Monday, but U.S. Bankruptcy Judge Edward Friend
delayed the effective date to give retirees time to find
alternative coverage. "The sacrifices are enormous with genuine
hardships," Friend said. Weirton Steel filed for Chapter 11
protection last year and has slashed its work force nearly in
half but has continued to pay full benefits to retirees for
almost 10 months. It's now trying to complete a $255 million
sale to Ohio's International Steel Group, but attorney Mark
Freedlander said Weirton might not be able to continue operating
in the meantime if the liability isn't removed.
Many retirees have complained they accepted lower wages when
they worked at the mill in exchange for free, lifelong health
care. But Weirton CEO Leonard Wise has said those promises were
made when health costs were lower and Weirton's fiscal position
was stronger. As of Dec. 31, Weirton's estimated future
obligation to retirees totaled $356 million. It paid about $36
million in benefits to retirees last year.
Friend acknowledged that promises had been broken, but he said
that management tried to ease the pain for retirees. "I think if
they had any option other than this they would take it," Friend
said. "There isn't much else you can do." ISG has agreed to
provide health coverage for some 8,000 retirees through a
Voluntary Employee Beneficiary Association. ISG will contribute
$5 million to launch the fund, or $2.5 million in each of the
first two years, but enrollees also would pay premiums.
The cost of continuing existing benefits, with the retiree
picking up the full premium, would cost about $1,200 a month,
said George Lacik, a retired supervisor who attended Monday's
hearing. "We have no leverage and no negotiating power," Lacik
said. "We're trying to suck up and get whatever we can."
WILD OATS: Canadian Court Certifies Lawsuit v. Local Subsidiary
---------------------------------------------------------------
Wild Oats Markets Canada, Inc., as successor to Alfalfa's
Canada, Inc., a Canadian subsidiary of Wild Oats Markets, Inc.
is a defendant in Helen Fakhri and Ady Aylon, as Representative
Plaintiffs v. Alfalfa's Canada, Inc., a class action suit
brought in the Supreme Court, British Columbia, Canada by
representative plaintiffs alleging to represent two classes of
plaintiffs -- those who contracted Hepatitis A allegedly through
the consumption of food purchased at a Capers Community Market
in the spring of 2002, and those who were inoculated against
Hepatitis A as a result of news alerts by Capers and the
Vancouver Health Authority.
"In the fourth quarter of 2003, the action was certified as a
class action by the court. The Company is appealing that ruling.
The Company intends to vigorously defend both class
certification and the suit itself. The Company is not able to
estimate the potential outcome of the suit at this time," Wild
Oats said in a recent SEC disclosure.
For more information, contact Wild Oats Markets, Inc. by Mail:
3375 Mitchell Lane, Boulder CO 80301 or by Phone:
(303) 440-5220.
Meetings, Conferences & Seminars
* Scheduled Events for Class Action Professionals
-------------------------------------------------
March 18-19, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
The Fairmont, San Francisco, California
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
March 22-23, 2004
INNOVATIVE DEFENCE STRATEGIES IN DRUG & MEDICAL DEVICE
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March 22-23, 2004
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March 25-26, 2004
INSURANCE 101 CONFERENCE
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mealeyseminars@lexisnexis.com
March 29-30, 2004
LITIGATING BAD FAITH AND PUNITIVE DAMAGES
American Conferences
San Francisco
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April 7-8, 2004
INSURANCE LAW 2004: UNDERSTANDING THE ABC'S
Practicing Law Institute
New York
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April 14-17, 2004
INSURANCE INSOLVENCY AND REINSURANCE ROUNDTABLE
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HANDLING CONSTRUCTION RISKS 2004: ALLOCATE NOW OR LITIGATE LATER
Practicing Law Institute
New York
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April 19-20, 2004
SILICA MEDICINE CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
April 19-20, 2004
LEXISNEXIS PRESENTS WALL STREET FORUM: ASBESTOS
Mealey Publications
New York Marriott Financial Center
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mealeyseminars@lexisnexis.com
April 22-24, 2004
LITIGATING MEDICAL MALPRACTICE CLAIMS
ALI-ABA
New Orleans
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April 26-27, 2004
MOLD 101 CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
May 6-7, 2004
FEN-PHEN LITIGATION CONFERENCE
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mealeyseminars@lexisnexis.com
May 6-7, 2004
CONSUMER FINANCIAL SERVICES LITIGATION 2004
Practicing Law Institute
San Francisco
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May 6-7, 2004
CONFERENCE ON LIFE AND HEALTH INSURANCE LITIGATION
ALI-ABA
Washington, D.C. Tuition $995
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May 11, 2004
EPHEDRA LITIGATION CONFERENCE
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mealeyseminars@lexisnexis.com
May 20-21, 2004
ACCOUNTANTS' LIABILITY
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May 24-25, 2004
ADDITIONAL INSURED CONFERENCE
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mealeyseminars@lexisnexis.com
May 25, 2004
D&O INSURANCE CONFERENCE
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mealeyseminars@lexisnexis.com
June 7-8, 2004
ASBESTOS BANKRUPTCY CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
June 10-11, 2004
SECURITIES, DRUGS & ENVIRONMENTAL LITIGATION
MassTortsMadePerfect.Com
Atlantis, Paradise Island, Bahamas
Contact: 1-800-320-2227; register@masstortsmadeperfect.com
June 10-11, 2004
LITIGATING DISABILITY INSURANCE CLAIMS
American Conferences
Boston
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June 16, 2004
BUSINESS INTERRUPTION INSURANCE CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
June 17, 2004
E-DISCOVERY CONFERENCE
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mealeyseminars@lexisnexis.com
June 22-23, 2004
NATIONAL MOLD LITIGATION CONFERENCE
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mealeyseminars@lexisnexis.com
July 16, 2004
PRODUCTS LIABILITY
ALI-ABA
Chicago
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September 20-21, 2004
REINSURANCE SUMMIT
Mealey Publications
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mealeyseminars@lexisnexis.com
September 20-21, 2004
NATIONAL ASBESTOS LITIGATION CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
September 21, 2004
E-DISCOVERY CONFERENCE
Mealey Publications
The Westin Hotel, Philadelphia
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mealeyseminars@lexisnexis.com
September 27-28, 2004
BAD FAITH CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
October 4-5, 2004
INSURANCE COVERAGE DISPUTES CONCERNING CONSTRUCTION DEFECTS
CONFERENCE
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mealeyseminars@lexisnexis.com
October 25-26, 2004
SILICA LITIGATION CONFERENCE
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October 26, 2004
PVC LITIGATION CONFERENCE
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November 8-9, 2004
CALIFORNIA SECTION 17200 CONFERENCE
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November 9, 2004
ANTI-SLAPP CONFERENCE
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Contact: 1-800-MEALEYS; 610-768-7800;
mealeyseminars@lexisnexis.com
November 11-12, 2004
ASBESTOS LITIGATION IN THE 21ST CENTURY
ALI-ABA
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December 9-10, 2004
ASBESTOS PREMISES LIABILITY CONFERENCE
Mealey Publications
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mealeyseminars@lexisnexis.com
December 9-10, 2004
CONSTRUCTION DEFECT & MOLD LITIGATION CONFERENCE
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TBA
FAIR LABOR STANDARDS CONFERENCE
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TBA
AIRLINE BANKRUPTCY LITIGATION CONFERENCE
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TBA
FASTFOOD INDUSTRY LIABILITY CONFERENCE
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mealeyseminars@lexisnexis.com
* Online Teleconferences
------------------------
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DAMAGES IN TEXAS INSURANCE LITIGATION:
EVALUATING, PLEADING, AND PROVING
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March 05-30, 2004
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INDOOR AIR QUALITY AND TOXIC MOLD LITIGATION
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March 05-30, 2004
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RECENT DEVELOPMENTS INVOLVING BAYCOL
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SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM
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THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM
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New Securities Fraud Cases
CANADIAN SUPERIOR: Cauley Geller Launches Securities Suit in NY
---------------------------------------------------------------
Cauley Geller Bowman & Rudman, LLP initiated a class action
lawsuit in the United States District Court for the Southern
District of New York, on behalf of purchasers of Canadian
Superior Energy Inc. publicly traded securities during the
period between November 17, 2003 and March 11, 2004, inclusive,
against defendants Canadian Superior, and:
(1) Greg Noval, and
(2) Michael Coolen
The lawsuit alleges violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder. More specifically, the Complaint alleges that
defendants issued a number of materially false and misleading
statements about its El Paso Mariner I-85 well offshore
operations in Nova Scotia, Canada. These positive statements
failed to disclose and indicate:
(i) that defendants knew or were reckless in not knowing*
that the "Mariner \ I-85 well" was virtually "dry";
(ii) that the actual costs of testing and drilling at the
well were significantly exceeding the budgeted costs;
(iii) that a significant gas reservoir to support a
commercial project did not exist;
(iv) that, as a result of the foregoing, the Company's
positive announcements concerning the "Mariner I-85
well" were lacking in a reasonable basis when made, and
(v) that the defendants' positive statements only served
to artificially inflate the value of its stock.
The Company shocked the market with its March 11, 2004
announcement that it had halted operations at the El Paso
Mariner I-85 well in the Atlantic Ocean off Nova Scotia,
following 3-1/2 months of drilling. On this news, shares of
Canadian Superior skidded 44.44%, or $1.44 per share, to close
at $1.80 per share on March 11, 2004 on unusual high volume.
For more information, contact Samuel H. Rudman or David A.
Rosenfeld, by Mail: P.O. Box 25438, Little Rock, AR 72221-5438,
by Phone: 1-888-551-9944 (toll free), Fax: 1-501-312-8505, or by
E-mail:.
CANADIAN SUPERIOR: Schiffrin & Barroway Files Stock Suit in NY
--------------------------------------------------------------
Schiffrin & Barroway, LLP initiated a class action lawsuit in
the United States District Court for the Southern District of
New York, on behalf of purchasers of the securities of Canadian
Superior Energy Inc. between November 17, 2003 and March 11,
2004, inclusive, against defendants Canadian Superior, and:
(1) Greg Noval, and
(2) Michael Coolen
The lawsuit alleges violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder. More specifically, the Complaint alleges that
defendants issued a number of materially false and misleading
statements about its El Paso Mariner I-85 well offshore
operations in Nova Scotia, Canada. These positive statements
failed to disclose and indicate:
(i) that defendants knew or were reckless in not knowing*
that the "Mariner \ I-85 well" was virtually "dry";
(ii) that the actual costs of testing and drilling at the
well were significantly exceeding the budgeted costs;
(iii) that a significant gas reservoir to support a
commercial project did not exist;
(iv) that, as a result of the foregoing, the Company's
positive announcements concerning the "Mariner I-85
well" were lacking in a reasonable basis when made, and
(v) that the defendants' positive statements only served
to artificially inflate the value of its stock.
The Company shocked the market with its March 11, 2004
announcement that it had halted operations at the El Paso
Mariner I-85 well in the Atlantic Ocean off Nova Scotia,
following 3-1/2 months of drilling. On this news, shares of
Canadian Superior skidded 44.44%, or $1.44 per share, to close
at $1.80 per share on March 11, 2004 on unusual high volume.
For more information, contact Marc A. Topaz or Stuart L. Berman,
by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA
19004, by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706,
or by E-mail: info@sbclasslaw.com.
JANUS CAPITAL: Dyer & Shuman Commences Securities Suit in CO
------------------------------------------------------------
Dyer & Shuman, LLP initiated a class action complaint in the
United States District Court for the District of Colorado, on
behalf of purchasers of Janus Capital Group Inc. common stock
during the period between January 30, 2001 and September 3,
2003.
The complaint alleges that the facts, known by the defendants,
but concealed from the investing public, were:
(1) upon disclosure of defendants' improper "market timing"
activities, the Company's top clients terminated the
Company as their investment manager, thereby
eviscerating shareholder wealth and the Company's
forward projections;
(2) defendants failed to provide adequate disclosure in
fund prospectuses regarding market timing by certain
plan participants;
(3) defendants failed to halt market timing activity by one
group of Janus shareholders, causing harm to Janus'
long-term shareholders;
(4) defendants permitted portfolio fund managers to engage
in market timing and short-term trading activity in the
Janus funds they managed and for which they were in
possession of material non-public information;
(5) defendants failed to take meaningful action to halt the
fund managers' unethical activities;
(6) defendants failed to disclose the fund managers'
unethical and economically harmful activity;
(7) defendants permitted certain shareholders to engage in
activity that:
(i) violated the policy disclosed in the fund
prospectuses;
(ii) violated other shareholders' expectations as to
how that policy would be applied; and
(iii) caused harm to the performance and value of the
Janus funds and to the ultimate return of long-
term shareholders;
(8) defendants permitted fund managers to engage in
activity that violated the policy against market timing
and short-term trading disclosed in the prospectuses;
(9) the Company's income was being eroded due to, among
other things, increased transaction costs associated
with high levels of the trading discussed above;
(10) defendants' acts generated unwanted taxable capital
gains distributions where fund managers were forced to
liquidate holdings to meet redemption needs; and
(11) defendants' acts disrupted stated portfolio management
strategies.
As a result of the defendants' false statements, Janus' stock
price traded at artificially inflated levels during the Class
Period, increasing to as high as $43.20 per share.
In September 2003, Janus disclosed that one of its officers had
resigned amid the allegations that Janus was involved in
improper mutual fund trading. In fact, the officer was named in
New York Attorney General Eliot Spitzer's complaint of September
3, 2003, which initiated the investigation of the mutual fund
industry.
For more information, contact Trig R. Smith, by Mail: 801 E.
17th Avenue, Denver, Colorado 80218-1417, by Phone:
303/861-3003 or 800/711-6483, or by E-mail:
tsmith@dyershuman.com.
ORGANOGENESIS: Bernstein Liebhard Lodges Securities Suit in
----------------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP initiated a securities class
action lawsuit in the District of Massachusetts, on behalf of
all persons who acquired securities of Organogenesis, Inc.
between November 15, 1999 and January 30, 2002, inclusive,
against defendants:
(1) Philip Laughlin,
(2) Michael Sabolinski,
(3) Albert Erani,
(4) Donna Abelli Lopolito,
(5) John J. Arcari,
(6) Herbert M. Stein,
(7) Alan Ades,
(8) Bernard A, Marden,
(9) Alan W. Tuck,
(10) Novartis Pharma AG, and
(11) PricewaterhouseCoopers LLP.
Organogenesis was not named as a defendant because it filed for
bankruptcy protection in November of 2002. Throughout the Class
Period, Organogenesis was a Company with only one commercially
available product -- Apligraf, a skin replacement therapy used
for severe skin wounds. Apligraf is described by Organogenesis
as having a structure similar to human skin and as a "skin
construct." The product's human skin-like properties allow this
product to be used by doctors to aid in the healing of certain
types of skin ulcers and other epidermal injuries. Defendants
were well aware that the Company's business model was entirely
dependent upon their ability to mass-produce Apligraf and market
it to physicians as an "off-the-shelf," cost-effective product
that doctors could use on patients absent hospitalization. Thus,
while the Company encountered some difficulties in manufacturing
and marketing Apligraf during the first half of 1999, by the
inception of the Class Period, Defendants assured investors that
Organogenesis maintained the expertise and ability to
manufacture sufficient quantities of Apligraf so that it was
foreseeable that the Company could achieve economies of scale
and achieve profitability through the sales of only this
product, that the Company maintained marketing agreements with
partners such as Novartis, which would allow Organogenesis to
obtain the marketing support necessary to sell sufficient
quantities of Apligraf, while at the same time retaining enough
of the revenue split in these deals to fund operations and
achieve profitability, and that between the Company's marketing
agreements with Novartis and others, and through other
foreseeable sources of available debt and equity, Organogenesis
could foreseeably achieve profitability and sufficiency.
Throughout the Class Period, Plaintiff and other members of the
Class were led to believe that Organogenesis was able to
manufacture Apligraf in sufficient quantities and that other
sources of funding were available such that the Company would be
able to achieve profitability in the foreseeable near-term.
Defendants consistently reported that Organogenesis' results
were "consistent with the transition in progress from a research
focused company to a research based operating company with a
novel medical product in introduction phase," and that the
Company had necessary and available funding sources, from
foreseeable sales of debt and equity to both private and public
investors which would allow the Company to achieve Defendants'
plan for sufficiency. Central to this plan was also a key
agreement with Novartis, Organogenesis' Apligraf marketing
partner, which purportedly allowed Defendants to access at least
$20 million through the exercise of a "put" option. This
agreement purportedly allowed Defendants to raise this money at
any time, and thereby maintain a large mega-million "safety net"
for the Company.
Unbeknownst to investors, however, throughout the Class Period,
the Company was suffering from a host of undisclosed adverse
factors which negatively impacted its business and which would
cause it to report declining financial results, materially less
than the market expectations Defendants had caused and
cultivated. In particular:
(i) Defendants could not achieve profitability through the
sale of Apligraf under the terms, or even the revised
terms, of the Novartis marketing agreement, which did
not provide Organogenesis with enough of the revenues
or profits provided through such Apligraf sales to
offset the extremely high cost of production or to
offset other undisclosed manufacturing problems such as
defective products and recalls;
(ii) Undisclosed problems related to the manufacture and
marketing of Apligraf were leading to even higher costs
and further reducing profitability. Manufacturing
problems and delays were retarding production scale,
and marketing issues were reducing sales. As investors
would only learn following the Class Period, the
Company's own sales force was encountering resistance
throughout that time concerning the cost and complexity
of its products and the actual and/or perceived
difficulties in physician reimbursement for Apligraf;
(iii) Organogenesis was underfunded and there was no
reasonable basis to report that the Company could
foreseeably fund operations throughout the Class
Period, based on available sources of loans, debt
and/or equity sales. Moreover, as Defendants were well
aware but failed to disclose, it was not true that the
Company could force Novartis to provide the full
complement of its funding as Defendants consistently
represented, as certain undisclosed conditions existed.
Organogenesis could not meet conditions precedent to
Novartis' requirement to provide at least $10 million
of its purported commitment to Organogenesis; and
(iv) High management turn-over at the Company was having and
would continue to have a disruptive effect on the
operations and oversight of Organogenesis, such that it
was also not foreseeable at any time during the Class
Period that Organogenesis would be able to achieve
profitability in the near-term or to attain guidance
sponsored and/or endorsed by Defendants.
Thus, Defendants lacked any reasonable basis to claim that
Organogenesis was operating according to plan, that sufficient
sources of funding were achieved and/or available to
Organogenesis or that the Company could maintain profitability
or even remain a viable entity in the foreseeable near-term.
Defendants were motivated to and did conceal the true
operational and financial conditions of Organogenesis, and
materially misrepresented and failed to disclose the conditions
that were adversely affecting Organogenesis throughout the Class
Period, because it enabled insiders, including certain
Defendants, to sell over 6.2 million shares of Company stock
and/or securities valued at over $68.8 million, prior to any
proper disclosure to the market.
Defendants' scheme also, ultimately, allowed defendants Erani
and Ades and their family members to improperly acquire the
remaining assets of Organogenesis through a leveraged buyout
through bankruptcy proceedings -- after Defendants' actions
drove the Company into bankruptcy and after they sufficiently
interfered with these proceedings so as to guarantee that Erani
and Ades and their family members acquired total domination and
control over what was left of Organogenesis. Thus, through their
illegal and improper actions which ultimately forced the Company
into Chapter 11, Defendants not only were able to wipe out the
equity interest of all of the Company's outside shareholders,
but they were also able to renegotiate their agreement with
Novartis -- which as Defendants knew or recklessly disregarded,
caused the Company to lose money on every unit sale of Apligraf.
For more information, contact The Shareholder Relations
Department, by Mail: 10 East 40th Street, New York, New York
10016, by Phone: (800) 217-1522 or (212) 779-1414 or by E-mail:
ORG@bernlieb.com.
ROLLINS ENVIRONMENTAL: Stull Stull Files Securities Suit in SC
--------------------------------------------------------------
Stull Stull & Brody, LLP initiated a class action complaint in
the United States District Court for the District of South
Carolina, Columbia Division, on behalf of all former Rollins
Environmental Services, Inc. shareholders as of March 27, 1997,
the record date for determining who was eligible to receive the
Proxy Statement dated April 30, 1997 and vote on the Reverse
Acquisition of Rollins by Laidlaw, Inc.
Excluded from the Class are defendants, the officers and
directors of the defendants, members of their immediate families
and their legal representatives, heirs, successors or assigns
and any entity in which defendants have or had a controlling
interest.
To receive the mailed Notice, contact the Notice Administrator
at: Safety-Kleen Rollins Shareholder Litigation; c/o Berdon
Claims Administration LLC; by Mail: P.O. Box 9014, Jericho, NY
11753-8914, by Phone: (800) 766-3330, Fax: (516) 931-0810, or
visit the Website: http://www.berdonllp.com/claims.
TV AZTECA: Deadline To File Lead Plaintiff Motion Set March 23rd
----------------------------------------------------------------
Cauley Geller Bowman & Rudman, LLP announced that the deadline
for purchasers of TV Azteca, S.A. de C.V. publicly traded
securities to move for lead plaintiff in a securities fraud
class action recently brought against the Company in the United
States District Court for the Southern District of New York, on
behalf of all those who purchased TV Azteca publicly traded
securities during the period between October 6, 2003 and January
7, 2004, inclusive, is set for March 23, 2004.
The complaint charges 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 a wireless telecommunications provider in Mexico.
Specifically, the complaint alleges that defendants denied any
affiliation with a "white-knight" group of investors that had
saved Unefon from bankruptcy back in June of 2002. Defendants
stonewalled disclosure of the true facts, including ignoring
advice from their securities lawyers in the U.S., until a spin-
off of Unefon was completed in December 2002. The spin-off
anticipated that Unefon's shares would be registered to trade in
the U.S. markets facilitating a merger with Salinas' other
telecommunications holdings.
Then, on January 9, 2004, defendants stunned 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. Market reaction to defendants' belated
disclosures was severe. By January 12, 2003, the first day of
trading following the Company's admission the price of TV Azteca
securities fell more than 14.9 percent in value to close at
$7.76 per share in heavy trading volume.
For more information, contact Samuel H. Rudman or David A.
Rosenfeld, Client Relations Department: Jackie Addison, Heather
Gann or Chandra West, by Mail: P.O. Box 25438, Little Rock, AR
72221 5438, by Phone: 1-888-551-9944 (toll free), Fax:
1-501-312-8505, or by E-mail: info@cauleygeller.com.
VANS INC: Deadline To File Lead Plaintiff Motion Set March 23rd
---------------------------------------------------------------
Cauley Geller Bowman & Rudman, LLP announced that the deadline
for purchasers of Vans, Inc. common stock to move for lead
plaintiff in a securities fraud class action recently brought
against the Company in the United States District Court for the
Central District of California, on behalf of all those who
purchased Vans common stock during the period between March 24,
1999 and May 23, 2002 , inclusive, is set for March 23, 2004.
The complaint, filed by a client of Cauley Geller Bowman &
Rudman, LLP, charges that Vans, Andrew J. Greenebaum, and Gary
Schoenfeld and certain of its officers and directors violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,
and Rule 10b-5 promulgated thereunder. More specifically, the
Complaint alleges that defendants failed to disclose and
indicate:
(1) that the Company improperly recognized revenue in
violation of Generally Accepted Accounting Principals;
(2) that Company accomplished its illegal revenue
recognition scheme by sending products to third-party
distributors and holding the products there until a
buyer could be found;
(3) that the defendants entered into this scheme because
defendants knew that its skate parks were losing cash
and its sales were falling flat; and
(4) as a result of the defendants' illegal scheme, the
Company's financial results and net income were
materially overstated at all relevant times.
On May 23, 2002, Vans announced preliminary results for the
fourth quarter and fiscal year ending May 31, 2002, revisions to
its guidance for fiscal 2003, plans to close its Bakersfield,
California skate park and take an impairment charge with respect
to its Denver, Colorado skate park, and a write-down of certain
slow-moving inventory. The market reacted swiftly to the news
with shares of Vans falling 19.87% or $2.53 per share to close
at $10.20 per share on May 24, 2002.
For more information, contact Samuel H. Rudman or David A.
Rosenfeld, Client Relations Department: Jackie Addison, Heather
Gann or Chandra West, by Mail: P.O. Box 25438, Little Rock, AR
72221 5438, by Phone: 1-888-551-9944 (toll free), Fax:
1-501-312-8505, or by E-mail: info@cauleygeller.com.
*********
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the Class Action Reporter. Submissions
via e-mail to carconf@beard.com are encouraged.
Each Friday's edition of the CAR includes a section featuring
news on asbestos-related litigation and profiles of target
asbestos defendants that, according to independent researches,
collectively face billions of dollars in asbestos-related
liabilities.
*********
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