/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/040426.mbx C L A S S A C T I O N R E P O R T E R Monday, April 26, 2004, Vol. 6, No. 81 Headlines ALFRED TEO: SEC Files Securities Lawsuit Due To Insider Trading ALIANT TELECOM: Discovery Commences in Canada Retirement Lawsuit AMERICAN HONDA: Recalls 440T Civic, Insight Cars For Overheating ARMOR HOLDINGS: Denies Allegations in FL Bullet-Proof Vest Suit ASHLEY FURNITURE: Recalls Bunk Beds Due to Strangulation Hazard CALIFORNIA BANKS: Consumers File Fraud Suit V. BofA, Wells Fargo CIGNA HEALTHCARE: Physician Suit Settlement Appeals Dropped DAIMLERCHRYSLER CORPORATION: Recalls Cars For Seat-Belt Defect ELECTRO SCIENTIFIC: Reaches $9M Settlement For Securities Suits ELI LILLY: Zyprexa Consumer Litigation Moved To New York Court ENTRAN II HOSE: Canadian Consumers Asked To Participate in Pact GENERAL MOTORS: Recalls Various Cars Because of Accident Hazard GENERAL MOTORS: Recalls 500T Cars Due to Windshield Wiper Defect GENERAL MOTORS: Recalls 126T Corvettes For Lock Systems Defect GENERAL MOTORS: Recalls 433,632 Vehicles Due to Fuel Leak Hazard HAMILTON BEACH: Recalls 20,160 Espresso Makers For Injury Hazard HARLEY DAVIDSON: Recalls 4T Dyna Glides Due To Fuel Leak Hazard PABST BREWING: Jos. Schlitz Retirees File Suit On Drug Benefits UNITED STATES: New Overtime Rules To Take Effect Later This Year US FOREST SERVICE: To Hire New Workers To Help Diversity Effort New Securities Fraud Cases aaiPHARMA INC.: Marc Henzel Lodges Securities Lawsuit in E.D. NC ADDECCO SA: Marc Henzel Launches Securities Lawsuit in E.D. NY ADOLOR CORPORATION: Charles Piven Lodges Securities Suit in PA ADOLOR CORPORATION: Marc Henzel Lodges Securities Lawsuit in PA ASCONI CORPORATION: Charles Piven Lodges Securities Suit in FL CANADIAN SUPERIOR: Bernstein Liebhard Lodges NY Securities Suit CANADIAN SUPERIOR: Marc Henzel Lodges Securities Suit in S.D. NY EUNIVERSE INC.: Marc Henzel Commences Securities Suit in C.D. CA MASTEC INC.: Schatz & Nobel Commences Securities Suit in S.D. FL MOBILITY ELECTRONICS: Marc Henzel Lodges Securities Suit in AZ NDCHEALTH CORPORATION: Schiffrin & Barroway Files PA Stock Suit NDCHEALTH CORPORATION: Cauley Geller Files Securities Suit in PA NOVASTAR FINANCIAL: Wechsler Harwood Files Stock Suit in W.D. MO ODYSSEY HEALTHCARE: Cauley Geller Lodges Securities Suit in TX ODYSSEY HEALTHCARE: Charles Piven Lodges Securities Suit in TX VASO ACTIVE: Scott + Scott Launches Securities Fraud Suit in MA ********* ALFRED TEO: SEC Files Securities Lawsuit Due To Insider Trading --------------------------------------------------------------- The Securities and Exchange Commission filed securities fraud charges against Alfred S. Teo, Sr., and ten of his relatives, friends and colleagues who collectively received approximately $1.8 million in illicit profits from insider trading in the securities of Musicland Stores Corporation and C-Cube Microsystems, Inc. Mr. Teo, a major Musicland shareholder, learned about a proposed tender offer for Musicland, and then purchased Musicland stock on the basis of this information prior to the company's public announcement of the acquisition on December 7, 2000. Mr. Teo also tipped eight other defendants with this information, who then purchased Musicland stock prior to the Musicland Announcement. Additionally, Mr. Teo and two other defendants filed false Forms 13D with the Commission that materially understated their ownership of Musicland stock, so that he could continue to buy Musicland stock, but avoid triggering Musicland's "poison pill." By making these secret purchases of Musicland stock, and then subsequently selling these shares, Mr. Teo made approximately $22 million in illicit profits. Mr. Teo also engaged in insider trading in the securities of C- Cube. Mr. Teo, a director of Cirrus Logic, Inc., which had been negotiating to take-over C-Cube, misappropriated material, non- public information about C-Cube and then purchased C-Cube stock shortly before C-Cube announced on March 26, 2001, that it had agreed to be acquired by another company. Mr. Teo also tipped another defendant with this information, who then purchased C- Cube stock prior to the C-Cube Announcement. The complaint named the following as defendants: (1) Mr. Teo, age 57, is a resident of Kinnelon, New Jersey and Fisher Island, Florida. He is the Chairman of several companies which produce industrial plastics. Mr. Teo's companies are the largest producer of plastic bags in North America. Mr. Teo has been a director and audit committee member of two public companies: Navarre Corporation, from May 1, 1998, to present; and Cirrus, from July 21, 1998, to April 10, 2001; (2) Teren Seto Handelman, age 41, is a resident of Montclair, New Jersey. She is Teo's sister-in-law and the sole trustee of the MAAA Trust. MAAA Trust is a New Jersey trust that Mr. Teo established for the benefit of his four sons; (3) John D. Reier, age 44, is a resident of Montville, New Jersey. He is the CFO of Alpha Industries Corp., a company Mr. Teo controlled; (4) Charles D. Fortune, age 56, is a resident of Norwalk, Connecticut. He sold plastic resin to Mr. Teo's plastic manufacturing companies; (5) Jerrold J. Johnston, age 57, is a resident of Trumbull, Connecticut. A salesman in the plastics industry, he has had business relationships with Mr. Fortune and Mr. Teo; (6) Mark J. Lauzon, age 43, is a resident of Flemington, New Jersey. He sold raw material plastic to Teo's Companies; (7) Philip Sacks, age 74, is a resident of Englewood, New Jersey and Fisher Island, Florida. He and Teo reside in the same luxury apartment building in Fisher Island; (8) Mitchell L. Sacks, age 40, is a resident of Demarest, New Jersey. Mitchell Sacks is Phil Sacks' son and worked in Teo's offices running a hedge fund in which Teo and Phil Sacks invested; (9) Richard A. Herron, age 61, is a resident of Fisher Island, Florida. He and Mr. Teo docked their yachts next to one another at Fisher Island; (10) Lawrence L. Rosen, age 59, is a resident of Old Tappan, New Jersey and Fisher Island, Florida. He was the founder and former CEO of N2K, a publicly traded company that owned music websites, and was later merged into another company that sells CDs over the Internet; (11) David M. Ross, age 56, is a resident of Manitowoc, Wisconsin. His company manufactured Teo's 118-foot luxury yacht. The complaint alleges that Mr. Teo engaged in insider trading in securities of Musicland Stores Corporation and tipped other defendants who also traded. Mr. Teo also allegedly engaged in insider trading in securities of C-Cube Microsystems, Inc., and failed to file required reports and made false and misleading disclosures in reports filed with the Commission concerning the true extent of his ownership and control of Musicland stock. On December 7, 2000, Musicland announced that it would be acquired by another company through a tender offer. The price of Musicland stock rose more than 30% following the announcement. As the largest shareholder of Musicland, Teo had learned of the acquisition through several confidential communications with Musicland senior management during the fall of 2000. After learning of the tender offer, but before it was publicly announced, Teo purchased 45,000 shares of Musicland stock. Teo sold those shares after the announcement and realized a profit of approximately $185,275. Teo also tipped defendants Teren Seto, Reir, Fortune, Lauzon, Phil Sacks, Herron, Rosen and Ross (and Fortune then tipped defendant Johnston), all of whom purchased Musicland stock prior to the announcement. Collectively, Teo's tippees realized profits in excess of $1.1 million. On March 26, 2001, C-Cube announced that it would be acquired by another company. The price of C-Cube stock rose more than 40%. Teo learned before the announcement that C-Cube was discussing a potential merger because he was a director of Cirrus Logic, Inc. (Cirrus), one of the companies that was discussing acquiring C- Cube, and Teo attended confidential Cirrus board meetings at which a potential acquisition was discussed. After learning of a potential acquisition of C-Cube, but before it was announced, Teo purchased 35,000 shares of C-Cube stock. Mr. Teo sold these shares after the announcement and realized a profit of approximately $180,012. Teo also tipped defendant Mitchell Sacks, who also purchased C-Cube stock prior to the announcement and realized profits of approximately $115,155. Teo also engaged in securities fraud by failing to file required reports and by making false and misleading disclosures in reports filed with the Commission concerning the extent of his ownership and control of Musicland stock. For instance, Teo, the MAAA Trust (a trust for Teo's children), and Teren Seto, as the MAAA Trust's sole trustee, filed Schedules 13D that falsely under-reported the number of shares of Musicland stock that Teo owned and controlled. Teo sought to conceal the true extent of his ownership and control of Musicland stock in order to avoid the risk of triggering Musicland's shareholder rights plan, or "poison pill." Teo thereby concealed his purchase of nearly 6 million shares of Musicland stock above the poison pill trigger. Teo thereafter sold those shares realizing a profit of approximately $22 million. The Commission charged violations of Sections 10(b), 13(d), 14(e) and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13d-1, 13d-2, 14e-3, and 16a-3 thereunder. The Commission seeks the relief from the defendants: (i) permanent injunctions; (ii) disgorgement of all illicit profits; (iii) civil penalties; and (iv) officer and director bars against Teo and Rosen. The Commission filed its complaint in the U.S. District Court for the District of New Jersey. The Commission also announced that it reached settlements with Fortune, Johnston and Rosen. Without admitting or denying the allegations in the Commission's complaint, Fortune Johnston and Rosen each consented to final judgments that permanently enjoined them, ordered them to disgorge their illicit profits plus prejudgment interest, and imposed a civil penalty equal to the illicit profits they obtained. Rosen also agreed to the entry of an order barring him from serving as an officer or director for five years. The suit is styled "SEC v. Alfred S. Teo, Sr., et al., Civil Action No. CV 04-1815 (WGB)." ALIANT TELECOM: Discovery Commences in Canada Retirement Lawsuit ---------------------------------------------------------------- Discovery is proceeding in the class action filed against Aliant Telecom, Inc. (formerly NBTel, Inc.) in the New Brunswick Court of Queens Bench. 132 former employees who took early retirement under a 1998 early retirement incentive program filed the suit, seeking unquantified general damages in the amount of the difference between what they received upon retirement in 1998, and what they would have received had they retired under a 1999 early retirement incentive program. Pleadings are closed, Affidavits of Documents have been prepared and Discovery of the Plaintiffs is complete. Discovery of the defendant's witnesses has not been completed. AMERICAN HONDA: Recalls 440T Civic, Insight Cars For Overheating ---------------------------------------------------------------- American Honda Motor Company, Inc. is cooperating with the National Highway Traffic Safety Administration (NHTSA) by recalling around 440,000 Honda Civic, year 2001-2002 models and Honda Insight, year 2000-2002 models. On certain passenger vehicles, the low-beam terminal on the head light wire harness can overheat and could cause the low beams to fail without warning. An unexpected loss of low beams could result in a crash. Dealers will inspect the head light switch and coupler for signs of heat damage. If heat damage is present, the dealer will replace the switch and coupler. If no heat damage is present, the dealer will replace the head light switch and one mating pin in the coupler. The manufacturer has reported that owner notification was to begin on April 5, 2004. Owners may contact Honda at 1-800-999-1009. ARMOR HOLDINGS: Denies Allegations in FL Bullet-Proof Vest Suit --------------------------------------------------------------- Armor Holdings, Inc. (NYSE: AH) categorically rejected in a statement the allegations in the complaint filed in Florida by a group of class action attorneys on behalf of the National Association of Police Organizations (NAPO) regarding Zylon-based body armor. "Although other manufacturers have experienced failures with their body armor, to our knowledge, none of Armor Holdings' body armor, with or without the Zylon fabric, has ever failed to perform to its certified level in the field," the Company said in a press release. The Company also asserts that no governmental authority or agency has claimed that any of its vests are defective in any way. "Contrary to the conclusions drawn by plaintiffs' attorneys, even the National Institute of Justice (NIJ) has stated that its preliminary test results are statistically inconclusive and unreliable," the statement continued. The Company also states that it constantly tests and evaluates all of its products and the ballistic material of which they are comprised to ensure that they perform at the levels for which they are warranted. The Company reiterated its confidence in the integrity of its products and their ability to perform both as certified by the NIJ and as warranted by the Company. The suit continues "Armor Holdings believes that this irresponsible lawsuit engenders fear in the law enforcement community, discouraging proper use of body armor, and thereby puts the lives of our police men and women in greater danger." The Company said it will continue to support and cooperate with the Department of Justice in its initiatives undertaken to evaluate the performance of body armor and the development of testing standards and protocols for aged vests. For more details, visit the firm's Website: http://www.armorholdings.com. ASHLEY FURNITURE: Recalls Bunk Beds Due to Strangulation Hazard --------------------------------------------------------------- Ashley Furniture Industries, Inc. is cooperating with the U.S. Consumer Product Safety Commission by voluntarily recalling 22,476 Ashley "Trails End," "Cottage Retreat," and "Stages" bunk beds. There are gaps between parts of the bunk bed that violate federal safety standards and can be entrapment or strangulation hazards to children. For model B383, the gap between the end rails on the upper bunk is too large. For models B213 and B233, the gap between the guardrails of the upper bunk can be widened with pressure, presenting an entrapment hazard. Federal standards for bunk beds are designed to protect children against entrapment and strangulation. No injuries have been reported. These bunk bed models are recalled for repairs: B383-58T, B383-57T, B213-58, and B233-58. The B383 models are sold under the group name "Trails End." The B213 is sold under the group name "Cottage Retreat." The B233 is sold under the group name "Stages." The model numbers are on product stickers on each bunk bed. On the B383 model, the product sticker is on the inside of the lower rail on the top bunk end panel. On the B213 and B233 models, the product sticker is on the inside of the lower panel on the bottom bunk. The bunk beds being recalled for repair were sold at furniture stores nationwide. Model B383 was sold beginning in December 2000. Model B213 was sold beginning in May 2003. Model B233 was sold beginning in June 2003. All sales of the recalled bunk beds ended in February 2004. Model B383-57T sold for around $299, model B383-58T sold for around $699, and Models B213 and B233 sold for around $599. For more details, contact the Company by Phone: (800) 999-2936 between 7:00 a.m. and 6:00 p.m. (CT) Monday through Friday and 8:00 a.m. to 5:00 p.m. (CT) on Saturday, or visit the Website: http://www.ashleyfurniture.com. CALIFORNIA BANKS: Consumers File Fraud Suit V. BofA, Wells Fargo ---------------------------------------------------------------- A class action lawsuit has been lodged against Bank of America for charging employees business payroll account holders fees to cash their paychecks, affecting tens of thousands of employers and employees throughout California. A similar suit is being filed today against Wells Fargo Bank. The plaintiffs in the suits against Bank of America and Wells Fargo are two California employers who believe the banks' fees have placed them in violation of Section 212 of the California Labor Code, which requires that paychecks 'be negotiable and payable in cash, on demand, without discount.' The plaintiffs are acting on behalf of all other employers in the state, many who have lower-paid workers living paycheck to paycheck. "We are seeking injunctions to stop the banks from charging the $5 per paycheck cashing fees and obtain a refund of all such fees already paid by thousands of employees in California -- mostly lower-paid workers who don't hold personal checking accounts and rely on their employers' banks to cash their checks," Nick Roxborough, a partner of Los Angeles based Roxborough, Pomerance & Nye LLP who filed the lawsuits, said in a statement. "The total collected to date is easily in the tens of millions of dollars." The Department of Industrial Relations, which is responsible for enforcing the labor code, already concurred during recent State Senate hearings that the fees violate the California Labor Code, stating that it subjects employers to criminal prosecution and substantial penalties under Labor Code 215 and 225. The State Senate has been holding hearings regarding this issue and legislation is now pending to further prohibit banks from charging these types of fees. The suit against Bank of America was filed by a Visalia, Tulare County nonprofit called Karis House, which runs six homes for troubled teens. A Bakersfield firm called Ability Answering- Paging Service is the plaintiff in the Wells Fargo suit. Mr. Roxborough is confident the courts will rule in favor of the plaintiffs and the California employers they represent, as well as provide restitution for the employees who have been affected by the banks' charges. "We have great confidence that the right thing will be done for both consumers and the employer community," he adds. For more details, contact Linda O'Hanlon of Roxborough, Pomerance and Nye LLP by Phone: 818-386-1916 CIGNA HEALTHCARE: Physician Suit Settlement Appeals Dropped ----------------------------------------------------------- All appeals challenging an agreement between CIGNA HealthCare and some 700,000 physicians have been dismissed by a federal court of appeals, clearing the way for implementation of the settlement. The settlement resolves for CIGNA HealthCare the issues raised in physician lawsuits challenging the claims payment practices of the nation's largest managed care companies. Under the Court-approved settlement, CIGNA HealthCare is, among other things, offering multiple alternatives for monetary compensation to physicians who participated in the class action, simplifying administrative requirements and procedures, and instituting new business practices intended to make it easier for doctors to work with the company in meeting the needs of patients. CIGNA HealthCare also is committing funds to a foundation governed by representatives of state medical societies. The foundation will consider funding for a range of health care initiatives such as expansion of the database of health care information available to patients and providers, broadening consumer access to cost-effective health insurance benefits, and enhancing quality patient care. In addition, CIGNA HealthCare is establishing a Physician Advisory Committee through which physicians can offer input to CIGNA on ways to enhance the delivery of health care and maintain a strong, cooperative relationship between patients, physicians and the company. For more details, visit the Company's Website: http://www.cigna.com. DAIMLERCHRYSLER CORPORATION: Recalls Cars For Seat-Belt Defect -------------------------------------------------------------- DaimlerChrysler Corporation is cooperating with the National Highway Traffic Safety Administration by recalling 3,200 Dodge Caravan/GrandCaravans, model 2005 and Chrysler Town & Country vehicles, model 2005. On certain minivans equipped without the available " Stow `n Go" seating option, the right front seat belt retractor assembly may have been improperly assembled. As a result, the seat belt may not properly restrain the occupant in a crash, increasing the risk of injury. Dealers will inspect the retractor assemblies and any seat belt assembly that does not have the stake will be replaced. The manufacturer has reported that owner notification began on February 23, 2004. Owners may contact DaimlerChrysler at 1-800-853-1403. ELECTRO SCIENTIFIC: Reaches $9M Settlement For Securities Suits --------------------------------------------------------------- Electro Scientific Industries, Inc. reached a settlement for the securities class action and shareholder derivative lawsuits filed against it, Dow Jones Newswires reports. The settlement will require a total payment of almost $9.3 million. The suits were commenced after the Company announced on March 20, 2003 that it planned to restate financial results for the first and second fiscal quarters, news that sent its share prices downward. The suits allege that the Company artificially inflated its results and improperly accounted for sales. In addition, plaintiffs claimed management didn't have a good gauge on the financial health of the company and issued false statements to that effect. Under the settlement, the Company agreed to pay $3.8 million of the settlement amount, while its insurer will pick up $5.4 million of the tab. An Electro Scientific representative wasn't available to say whether the company admitted any wrongdoing as part of the settlement, Dow Jones reports. ELI LILLY: Zyprexa Consumer Litigation Moved To New York Court -------------------------------------------------------------- The lawsuits filed against Eli Lilly and Co. over its Zyprexa drug are headed to the United States District Court in the Eastern District of New York after the judicial panel on multidistrict litigation denied the Company's request to consolidate a growing number of Zyprexa cases in Indiana last week, the Indianapolis Star reports. Zyprexa, a drug used to treat schizophrenia and manic depression, allegedly causes serious side effects, including severe diabetic conditions. It has recently become a target of trial attorneys representing patients who used the drug. "Obviously we don't like going to the defendant's home state" to try the Zyprexa cases, Mark Burton, a trial attorney for Hersh & Hersh in San Francisco that's handling several cases against Lilly told the Star. "They have a lot of political influence there." About two dozen federal cases around the country, plus future cases, will be consolidated for pretrial purposes under Judge Jack B. Weinstein. Judge Weinstein is a noted expert on complex multi district litigation who has written a practice guide on the subject. Lilly spokeswoman Marni Lemons told the Star, "We are pleased" consolidation of the cases was granted, although she said Indianapolis would have been a more convenient spot for the company to litigate the cases. Ms. Lemons said about 20 Zyprexa lawsuits have been filed against Lilly since the first was filed 15 months ago. She added that Zyprexa, which came on the market 7 1/2 years ago and has been used by 14 million people, is "a successful and widely prescribed product" that "is getting people out of institutions and off the streets." ENTRAN II HOSE: Canadian Consumers Asked To Participate in Pact --------------------------------------------------------------- Canadians with leaking and defective radiant heating systems that use a particular rubber hose may be eligible to receive payments from a newly proposed class action settlement. The hose, Entran II, is orange rubber and stamped with the name "Heatway" or "Heatway Systems." The hose is used for floors or driveways to carry warm water that provides warmth and melts snow. The majority of hoses were sold or installed between 1989 and 1995. The lawsuit has been brought on the behalf of homeowners who allege the Entran II product is defective and that the hose is prone to leaking when used under normal conditions. The Settlement Fund, which is payable over five years, will be at least $196 million but could grow as large as $236 million, according to recent court documents. Because the hose is often buried under floors, embedded in concrete and hidden above ceilings, it can be difficult for homeowners to determine if they have one. Repairing these systems can be extremely costly and time-consuming, so homeowners who believe they may have an Entran II hose are urged to look into the matter as they may be eligible to receive compensation. The defendant, Goodyear Tire & Rubber Company, has denied all allegations and maintains the hose works as intended if properly maintained and used as directed. For more details, call 1-800-254-9222 or visit the Website: http://www.entrainiisettlement.com. GENERAL MOTORS: Recalls Various Cars Because of Accident Hazard --------------------------------------------------------------- General Motors Corporation is cooperating with the National Highway Traffic Safety Administration by recalling 68,875 cars, namely: (1) Cadillac Escalade/ESV/EXT, Years 2003-2004; (2) Chevrolet Avalanche, Years 2003-2004; (3) Chevrolet Express, Years 2003-2004; (4) Chevrolet Silverado, Years 2003-2004; (5) Chevrolet Suburban, Years 2003-2004; (6) Chevrolet Tahoe, Years 2003-2004; (7) GMC Savana, Years 2003-2004; (8) GMC Sierra, Years 2003-2004; (9) GMC Yukon/Yukon XL, Years 2003-2004; (10) Hummer H2, Years 2003-2004 Certain sport utility vehicles, pickup trucks, and passenger vans fail to comply with the requirements of Federal Motor Vehicle Safety Standard No. 135, "Passenger Car Brake Systems." Some of these vehicles were produced with an out-of- specification brake hydro-boost housing relief valve bore. Consequently, the valve O-ring seal may fracture. Steering efforts may be slightly increased while braking or parking. Under certain driving conditions, a fractured seal may also require an increase in the applied brake pedal effort to achieve the same vehicle deceleration. Dealers are to replace the hydro-boost relief valve. The manufacturer has reported that owner notification is expected to begin during the second quarter of 2004. Owners may contact Cadillac at 1-866-982-2339; Chevrolet at 1-800-630-2438; GMC at 1-866-996-9463; or Hummer at 1-866-486-6376. GENERAL MOTORS: Recalls 500T Cars Due to Windshield Wiper Defect ---------------------------------------------------------------- General Motors Corporation is cooperating with the National Highway Traffic Safety Administration is recalling 581,394 cars, namely: (1) Chevrolet TrailBlazer/TrailBlazer EXT, year 2002-2003; (2) GMC Envoy/ Envoy XL, Year 2002-2003; (3) Oldsmobile Bravada, Year 2002-2003; The windshield wipers on these sport utility vehicles may fail to turn on, unexpectedly stop working, fail to turn off/on by themselves (moisture sensitive wiper system), or the washer pump may operate continuously because water can enter the wiper module and either cause a short circuit or corrosion of components within the module. Driver visibility could be reduced, which could result in a crash. Dealers will cover the windshield wiper module vent hole with a patch. Also, the wiper motor, circuit board, and electrical connector will be inspected for signs of water intrusion and/or corrosion and be replaced as required. The manufacturer has reported that owner notification is expected to begin during the third quarter of 2004. Owners may contact Chevrolet at 1-800- 630-2438; GMC at 1-866-996-9463; or Oldsmobile at 1-800-630- 6537. GENERAL MOTORS: Recalls 126T Corvettes For Lock Systems Defect -------------------------------------------------------------- General Motors Corporation is cooperating with the National Highway Traffic Safety Administration by recalling 126,624 Chevrolet Corvette, year 1997-2004 models, manufactured from September 1996 to January 2004. On certain passenger vehicles equipped with electronic column lock systems (ECL), when the ignition switch is turned to "lock," the ECL prevents turning of the steering wheel. When the vehicle is started, the ECL unlocks the steering column. The vehicle is designed so that if the column fails to unlock when the vehicle is started and the customer tries to drive away, the fuel supply will be shut off stopping the engine. This prevents the vehicle from being driven when it cannot be steered. However, if voltage at the Powertrain Control Module is low or interrupted, the fuel shut off may not occur and the vehicle can be driven while the steering column is locked. If this occurs, a crash could occur. On vehicles equipped with an automatic transmission, the dealer will disable the steering column lock by removing the column lock plate. When the ignition key is removed, the transmission shifter will lock, but the steering column will not lock. On vehicles equipped with a manual transmission, the dealer will reprogram the powertrain control module. The steering column on these vehicles will continue to lock when the key is removed. The manufacturer has reported that owner notification is expected to begin during the second quarter of 2004. Owners may contact Chevrolet at 1-800-630-2438. GENERAL MOTORS: Recalls 433,632 Vehicles Due to Fuel Leak Hazard ---------------------------------------------------------------- General Motors Corporation is cooperating with the National Highway Traffic Safety Administration by voluntarily recalling 433,632 cars, namely: (1) Buick LeSabre, year 1998-1999, (2) Oldsmobile 88, Year 1998-1999, (3) Pontiac Bonneville, Year 1998-1999 On certain passenger vehicles equipped with 3800 V6 (l36) engines and certain Delphi fuel pressure regulators, the regulators have a much higher than usual rate of fuel leaks. A leak can allow fuel to enter the intake manifold through a vacuum line. If the engine does not start when cranked, the fuel from the leaking regulator and a mistimed spark can cause a backfire. The backfire can rupture the intake manifold. The rupture of the intake manifold can displace a fuel line, pulling an injector out of place, and causing a fuel leak and possible fire. Dealers will install new fuel pressure regulators with improved diaphragms. The manufacturer has reported that owner notification is expected to begin during the second quarter of 2004. Owners may contact Buick at 1-866-608-8080; Oldsmobile at 1-800-630-6537; or Pontiac at 1-800-620-7668. HAMILTON BEACH: Recalls 20,160 Espresso Makers For Injury Hazard ---------------------------------------------------------------- Hamilton Beach/Proctor-Silex, Inc. is cooperating with the Consumer Product Safety Commission by voluntarily recalling 20,160 Hamilton Beach Cappuccino Plus Espresso and Cappuccino Makers. The steam tube inside the espresso/cappuccino maker can burst under pressure, presenting a risk of injury to consumers. This can occur if the frothing nozzle becomes clogged and the espresso button is pushed while attempting to froth milk. Hamilton Beach has received 10 reports of burst steam tubes, one of which included a minor burn. The recalled units are Hamilton Beach(r) Cappuccino Plus(tm) Espresso and Cappuccino Maker, model 40714. They are black plastic and stainless steel. The Hamilton Beach(r) brand name is printed on the front of the unit, and the model number is printed on the bottom. Internet retailers and discount department stores sold these items nationwide from March 2003 through March 2004 for approximately $70. Hamilton Beach will ship free replacement espresso/cappuccino makers to consumers. For more details, contact the Company by Phone: (800) 672-5872, Monday through Friday, 8 a.m. to 8 p.m. (ET), or visit the firm's Website: http://www.hamiltonbeach.com HARLEY DAVIDSON: Recalls 4T Dyna Glides Due To Fuel Leak Hazard --------------------------------------------------------------- Harley-Davidson Motor Company is cooperating with the National Highway Traffic Safety Administration by recalling 4,593 Harley Davidson Dyna Glides, year 2004 model. These were manufactured from September to November 2003. On certain fuel-injected motorcycles, the inner line of the fuel hose could separate, causing a fuel leak. Fuel leakage, in the presence of an ignition source, could result in a fire. Dealers will replace the fuel line assembly. The manufacturer has reported that owner notification began on February 12, 2004. Owners may contact Harley-Davidson at 1-414-342-4680. PABST BREWING: Jos. Schlitz Retirees File Suit On Drug Benefits --------------------------------------------------------------- Pabst Brewing Co. (formerly known as Jos. Schlitz Brewing Co.) faces a class action filed in the United States District Court in Milwaukee, Wisconsin by a group of Jos. Schlitz retirees, claiming that their prescription drug benefits have been improperly curtailed, the Milwaukee Sentinel reports. Jos. Schlitz closed its Milwaukee brewery in 1981 and sold it to Stroh Brewery Co. in 1982. Pabst, based in San Antonio, Texas, bought Stroh in 1999. The suit was filed by three Schlitz retirees and their wives: Raymond and Nathalie Zielinski, of Cedarburg; Raymond and Dorothy Held, of Oak Creek, and Robert and Viola Ballenger, of Sun City, Arizona. The suit charges Pabst of reducing prescription drug benefits on January 1 by increasing co- payments and enacting other changes. The suit alleges that those actions violated a promise made in 1981 to provide lifetime health benefits to Schlitz retirees and their spouses. The suit was filed on behalf of 301 Schlitz retirees and their spouses, and is claiming class action status. Pabst President Brian Kovalchuk declined to comment Thursday, saying the company had not yet seen the lawsuit, the Milwaukee Sentinel reports. Pabst's changes included co-payments of $5 to $125 for a 90-day supply if the drugs are ordered through Walgreen's mail service. The brewer also now requires retirees to pay all costs over a maximum annual benefit of $3,000, the lawsuit said. The suit wants a judge to order Pabst to provide the prescription drug benefits that were promised in 1981. It also wants Pabst to compensate the retirees for their higher co-payments. UNITED STATES: New Overtime Rules To Take Effect Later This Year ---------------------------------------------------------------- The United States Department of Labor's new overtime rules are expected to take effect by late August this year, at the earliest, the Journal News reports. The rules specify which workers are entitled to overtime pay and extended overtime protection to classes of employees who were excluded under an original proposal by the Bush administration last year. Among its key provisions are: (1) Workers earning $23,660 or less are guaranteed overtime beyond a 40-hour work week, regardless of what work they perform. The threshold under the existing rules is $8,060; (2) A broad range of blue-collar and public-safety workers will qualify for overtime, including police and firefighters, paramedics, emergency medical technicians, licensed practical nurses and manual laborers who perform work involving repetitive operations with their hands; (3) Most employees who earn at least $100,000 a year will not qualify for overtime, a threshold that was increased from $65,000 under the Labor Department's original proposal last year. Employees who earn at least $100,000 must "customarily and regularly" perform duties that disqualify them from overtime. Labor Secretary Elaine Chao told the Journal News that that the new rules are needed to update obsolete regulations that include job titles such as key punch operator, straw boss and legman. The confusion over what types of employees are entitled to overtime has created "a legal nightmare" and generated more federal class-action lawsuits than complaints about discrimination, she said. "Our intent has always been to strengthen overtime protection for workers," Ms. Chao said. Many parties and labor unions are studying the new rules to determine their impact. Mario Cilento, spokesman for the New York state AFL-CIO, told the Journal News the union was studying yesterday's rules. He remained skeptical that the Bush administration was trying to improve benefits for workers. "They came in here with an agenda, and they're trying to carry it through at the expense of millions of working men and women," he said. Robert Heiferman, an attorney with Jackson Lewis in White Plains, a law firm that chiefly represents employers in work- force issues, said he doubted that many workers in the Hudson Valley would lose overtime protections. The definitions of exempt employees are clearer under the new rules and would bar companies from exempting workers on overtime by merely changing titles, he said. Even well-intentioned employers are confused by the existing regulations, and legal publications and professional journals have disagreed about which workers are covered and which aren't, he added, the Journal News states. US FOREST SERVICE: To Hire New Workers To Help Diversity Effort --------------------------------------------------------------- The United States Forest Services is recruiting for 300 to 500 permanent part-time jobs, as part of the requirements of a 2002 settlement with Hispanic employees, who charged the agency with discrimination in terms of hiring, the Associated Press reports. The service is conducting job fairs in Sacramento, Fresno and Arcadia, near Los Angeles, in an effort to diversify its California firefighting ranks by recruiting job applicants from areas with ethnic populations. At present, 80 percent of the service's firefighters are white, most hailing from communities near mountains or national forests. The service's permanent employees are 9.8% Hispanic, compared with about 35 percent for the state's population. The available jobs pay $8 to $10 an hour, and includes work on fire engines, hotshot crews, smokejumper crews, helicopter-based hand crews, or regular hand crews. Recruits who complete the Sacramento training academy and 4,000-hour apprenticeship program will have a job for 26 weeks each summer without reapplying. The service already has hired more than 1,200 seasonal, non-permanent firefighters for what it is expecting to be another extreme fire season, AP reports. New Securities Fraud Cases aaiPHARMA INC.: Marc Henzel Lodges Securities Lawsuit in E.D. NC ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Eastern District of North Carolina, Southern Division, on behalf of persons who purchased or otherwise acquired publicly traded securities of aaiPharma Inc. (NASDAQ: AAII) between July 23, 2003 and February 4, 2004, inclusive. The lawsuit was filed against aaiPharma and Philip S. Tabbiner and William L. Ginna. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that, throughout the Class Period, Defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclose and or misrepresented that the Company's core business was deteriorating, that the company was unloading inventory onto wholesalers in order to meet sales projections, and that the aforementioned practice in order to keep its stock price up in order to fend off a third party suitor. On February 5, 2004, aaiPharma announced that the Company expected net revenues to be between $340 million and $355 million for 2004. Diluted earnings per share for 2004 were expected to remain, as previously disclosed, between $1.45 and $1.52. Earnings were expected in the range of $0.27 to $0.30 per diluted share for the first quarter 2004. Additionally, the Company announced that it was setting aside money to pay for refunds on older medicines after an unusually high return rate in the fourth quarter. In response to this news, shares of aaiPharma fell 23%, or $6.36 per share to close at $21.24 per share on very heavy volume. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com ADDECCO SA: Marc Henzel Launches Securities Lawsuit in E.D. NY -------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Eastern District of New York on behalf of purchasers of Adecco SA. (NYSE: ADO) publicly traded securities during the period between March 16, 2000 and January 9, 2004, inclusive. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 16, 2000 and January 9, 2004, thereby artificially inflating the price of Adecco common stock. Specifically, the complaint alleges that, throughout the Class Period, defendants issued numerous positive statements and filed reports with the SEC which described the Company's increasing financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; (2) more specifically, that the Company's North American operations had material weaknesses in its internal controls; and (3) as a result, the values of the Company's net income and financial results were materially overstated at all relevant times. On January 12, 2004, Adecco shocked the market when it announced that it did not expect the audit of its consolidated financial statements for the 2003 fiscal year, ended on December 28, 2003, to be completed by Adecco's auditors, by the previously announced release date of February 4, 2004. The Company identified the following reasons for the delay: (i) the identification of material weaknesses in internal controls in the Company's North American operations of Adecco Staffing; (ii) the resolution of possible accounting, control and compliance issues in the Company's operations in certain countries; and (iii) the completion of the Company's efforts to address these matters and determine their effect on the Company's consolidated financial statements. In response to this announcement, the prices of all Adecco securities dropped sharply, with Adecco shares traded on the New York Stock Exchange tumbling more than 30%, or $5.23 per share, to close at $11.70 per share on extremely heavy volume. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com ADOLOR CORPORATION: Charles Piven Lodges Securities Suit in PA -------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Adolor Corp. (Nasdaq:ADLR) between September 23, 2003 and January 14, 2004, inclusive. The case is pending in the United States District Court for the Eastern District of Pennsylvania against defendant Adolor Corp. and one or more of its officers and/or directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven, P.A. by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com ADOLOR CORPORATION: Marc Henzel Lodges Securities Lawsuit in PA --------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Adolor Corp. (NASDAQ:ADLR) common stock during the period between September 23, 2003 and January 14, 2004. The complaint charges Adolor and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Adolor is a development stage biopharmaceutical corporation that discovers, develops and plans to commercialize products to relieve pain while reducing the side effects of currently marketed narcotics. The complaint alleges that during the Class Period, defendants disseminated materially false and misleading information regarding Adolor's flagship product candidate Entereg(TM) and the clinical trials for Entereg(TM) for the management of postoperative ileus. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (1) the clinical trial failure in the Entereg(TM) Phase III 302 study for postoperative ileus was directly related to objective failure of the therapy in certain patient subgroups, particularly those patients treated for simple hysterectomy; (2) additional Entereg(TM) Phase III clinical trials composed of patient subgroups similar to the 302 study would risk repetition of the same therapy failures; (3) the 302 study failure at the 12 mg dosage was due to therapy failures in certain patient subgroups, particularly those patients treated for simple hysterectomy, and not "limited power" or insufficient numbers of patients in the study as defendants claimed; (4) despite representations to the contrary, defendants were in a position to make meaningful comparisons for the data and results between patient subgroups, for the 302 and 313 studies, from the very beginning of the Class Period; (5) despite defendants' expressions of disbelief at suggestions by analysts that distinctly different results for certain patient subgroups had somehow impacted the quality of results for the 302 and 313 clinical studies, defendants were fully aware of these differences and that the clinical program was indeed adversely impacted from the very beginning of the Class Period; (6) the Entereg(TM) Phase III 313 clinical study met the primary efficacy endpoint, at both dosage levels, because it excluded certain patient subgroups already known by defendants prior to the Class Period to produce disappointing results for the treatment of postoperative ileus; (7) the Entereg(TM) Phase III 308 prospective study was at great risk of failing to achieve statistically significant results for the primary efficacy endpoint, at both dosage levels, because it would include a large number of certain patient subgroups already known to produce disappointing results for the treatment of postoperative ileus; (8) elimination of certain patient subgroups already known to produce disappointing results for the treatment of postoperative ileus from the 313 study created an opportunity to present highly encouraging clinical results to the investment community at the very beginning of the Class Period, while deferring the prospect of disappointing results from the prospective 308 study; and (9) since the Entereg(TM) Phase III pivotal studies were designed to study two different dosages across a number of patient subgroups in three separate trials, defendants were aware, from the very beginning of the Class Period, that the mixed results within the patient subgroups for the 302 and 313 studies confounded the results, making it difficult for the FDA to approve an Entereg(TM) NDA based on the prospect of disappointing results from the prospective 308 study. As a result of the defendants' false statements, Adolor's stock price traded at inflated prices during the Class Period, causing millions of dollars of damages to the Class. On November 12, 2003, as shares traded at prices as high as $18.14, the company sold 6,900,000 shares of its common stock for gross proceeds of approximately $119 million. On January 13, 2004, the company reported shocking news about the third in the series of Phase III clinical trials for the company's new drug application submission. On this news, the price of Adolor's stock plunged 37%, trading as low as $13.73 per share, on an unprecedented volume of 12.7 million shares. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com ASCONI CORPORATION: Charles Piven Lodges Securities Suit in FL -------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Asconi Corporation . (AMEX:ACD) between May 15, 2003 to March 23, 2004, inclusive (the "Class Period"). The case is pending in the United States District Court for the Middle District of Florida. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven, P.A. by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by E-mail: hoffman@pivenlaw.com CANADIAN SUPERIOR: Bernstein Liebhard Lodges NY Securities Suit --------------------------------------------------------------- Bernstein Liebhard & Lifshitz LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all persons who purchased or acquired securities of Canadian Superior Energy, Inc. (AMEX: SNG); (TSX: SNG) between November 17, 2003 through March 11, 2004, inclusive. The Complaint charges Canadian Superior, Greg Noval, and Michael Coolen with 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: (1) that defendants knew or were reckless in not knowing that the "Mariner I-85 well" was virtually "dry"; (2) that the actual costs of testing and drilling at the well were significantly exceeding the budgeted costs; (3) that a significant gas reservoir to support a commercial project did not exist; (4) 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 (5) 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 details, contact the Shareholder Relations Department, by Mail: Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or (212) 779-1414 or by E-mail: SNG@bernlieb.com. CANADIAN SUPERIOR: Marc Henzel Lodges Securities Suit in S.D. NY ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Canadian Superior Energy Inc. (Amex: SNG) between November 17, 2003 and March 11, 2004, inclusive. The complaint charges Canadian Superior, Greg Noval, and Michael Coolen with 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: (1) that defendants knew or were reckless in not knowing that the "Mariner \ I-85 well" was virtually "dry"; (2) that the actual costs of testing and drilling at the well were significantly exceeding the budgeted costs; (3) that a significant gas reservoir to support a commercial project did not exist; (4) 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 (5) 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 details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com EUNIVERSE INC.: Marc Henzel Commences Securities Suit in C.D. CA ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Central District of California on behalf of purchasers of eUniverse Inc. (Nasdaq: EUNI) common stock during the period between July 30, 2002 and May 5, 2003, inclusive. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 30, 2002 and May 5, 2003, thereby artificially inflating the price of eUniverse common stock. Throughout the Class Period, as alleged in the Complaint, defendants issued numerous statements and filed quarterly reports with the SEC which described the Company's increasing financial performance. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its net income and earnings per share; (2) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (3) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times. On May 6, 2003, before the opening of trading, the Company shocked the market by announcing that it "intends to restate its financial statements for the second and third quarters of the year ended March 31, 2003" and possibly also for the first quarter of fiscal 2003. The Company also told investors not to rely on its reported financial results for the first three quarters of fiscal 2003. The Company attributed the need for the restatement to the "incorrect processing of certain transactions within the Company's accounting system." The Company further said that the restated financial results will differ materially from the previously-reported results. Following this announcement, the NASDAQ halted trading in eUniverse shares and stated that the shares will remain halted until the company has supplied additional information. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com MASTEC INC.: Schatz & Nobel Commences Securities Suit in S.D. FL ---------------------------------------------------------------- Schatz & Nobel, P.C. initiated a securities class action in the United States District Court for the Southern District of Florida on behalf of all persons who purchased the publicly traded securities of MasTec, Inc. (NYSE: MTZ) from May 13, 2003 through April 12, 2004 inclusive. The Complaint alleges that MasTec, a telecommunications and energy infrastructure company, and certain of its officers and directors issued materially false statements. Specifically, defendants failed to disclose that the Company was prematurely recognizing revenue on certain contracts, had overvalued inventory, and had failed to take adequate reserves for bad debt, cost overruns and projected losses on certain projects. As a result of the foregoing, MasTec's financial results were materially inflated throughout the Class Period. For more details, contact Schatz & Nobel toll-free at (800) 797- 5499, or by e-mail at sn06106@aol.com. To view a copy of the lawsuit initiating the class action, or for more information about class action cases and Schatz & Nobel, please visit the website: http://www.snlaw.net. MOBILITY ELECTRONICS: Marc Henzel Lodges Securities Suit in AZ -------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the District of Arizona on behalf of purchasers of Mobility Electronics, Inc. (Nasdaq: MOBE) publicly traded securities during the period between September 2, 2003 and January 5, 2004, inclusive. The complaint charges Mobility Electronics, Inc., Charles R. Mollo and Joan W. Brubacher with 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 throughout the Class Period, defendants repeatedly represented that it expected Mobility to earn $15 million in revenues for the fourth quarter of 2003, which was attributable in large part to the Company's agreement with Fellowes, Inc. whereby Fellowes would globally market and distribute a line of Fellowes- branded power products from Mobility, as well as custom products based on Mobility's market-leading combination AC/DC technology, through its vast worldwide distribution network, encompassing nearly 30,000 retail stores (the "Fellowes Agreement"). In truth and in fact, however, unbeknownst to investors, by the start of the Class Period, Fellowes was not meeting its sales forecasts and, accordingly, Mobility was not generating the revenues and earnings it had anticipated from the Fellowes Agreement. Prior to disclosing these adverse facts to the investing public, Mobility completed a $15 million private placement, purchased assets from InVision Software and InVision Wireless using its artificially inflated stock as currency and Mobility insiders unloaded more than $6 million of their personally-held shares to the unsuspecting public. Then, on January 5, 2004, Mobility shocked the market when it announced that it expects revenue for the fourth quarter of 2003 to be approximately $1.0 million to $1.3 million less than the Company's previous guidance of about $15 million. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-Mail: mhenzel182@aol.com NDCHEALTH CORPORATION: Schiffrin & Barroway Files PA Stock Suit --------------------------------------------------------------- Schiffrin & Barroway, LLP initiated a securities class action in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of NDCHealth Corporation (NYSE: NDC) between October 1, 2003 and March 31, 2004, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. The complaint alleges that NDC, Walter M. Hoff, and Randolph L. M. Hutto violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 1, 2003 and March 31, 2004, thereby artificially inflating the price of NDC's common stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts known to defendants or recklessly disregarded by them: (1) that the Company was materially inflating its financial results by prematurely recognizing revenue in its physician business unit; (2) that the Company's practice of improperly recognizing revenue was in violation of Generally Accepted Accounting Principles ("GAAP"); and (3) that as a result, the Company's financial results were materially inflated at all relevant times. On April 1, 2004, the Company issued a press release with the headline: "NDCHealth Delays Fiscal Third Quarter Results." Therein, the Company stated that it would delay release of its 2004 fiscal third quarter financial results and the conference call previously scheduled for April 1 and April 2, 2004, respectively. According to the Company, this decision was prompted by the company's initiation of a review concerning practices and procedures relating to the timing of revenue recognition of sales to the value-added reseller channel in its physician business unit. News of this shocked the market. Shares of NDC's stock price dropped nearly 20% to close at $22.70 on unusually large trading volumes of nearly 4.8 million shares. For more details, contact Marc A. Topaz, Esq. or Stuart L. Berman, Esq. 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 NDCHEALTH CORPORATION: Cauley Geller Files Securities Suit in PA ---------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of NDCHealth Corporation (NYSE: NDC) publicly traded securities during the period between October 1, 2003 and March 31, 2004, inclusive. The complaint alleges that NDC, Walter M. Hoff, and Randolph L. M. Hutto violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 1, 2003 and March 31, 2004, thereby artificially inflating the price of NDC's common stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was materially inflating its financial results by prematurely recognizing revenue in its physician business unit; (2) that the Company's practice of improperly recognizing revenue was in violation of Generally Accepted Accounting Principles (GAAP); and (3) that as a result, the Company's financial results were materially inflated at all relevant times. On April 1, 2004, the Company issued a press release with the headline: "NDCHealth Delays Fiscal Third Quarter Results." Therein, the Company stated that it would delay release of its 2004 fiscal third quarter financial results and the conference call previously scheduled for April 1 and April 2, 2004, respectively. According to the Company, this decision was prompted by the company's initiation of a review concerning practices and procedures relating to the timing of revenue recognition of sales to the value-added reseller channel in its physician business unit. News of this shocked the market. Shares of NDC's stock price dropped nearly 20% to close at $22.70 on unusually large trading volumes of nearly 4.8 million shares. For more details, contact Samuel H. Rudman, Esq., David A. Rosenfeld, Esq. or Jackie Addison by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com NOVASTAR FINANCIAL: Wechsler Harwood Files Stock Suit in W.D. MO ---------------------------------------------------------------- Wechsler Harwood LLP initiated a securities class action on behalf of persons or entities who purchased or otherwise acquired the securities of NovaStar Financial, Inc., (NYSE:NFI) between October 29, 2003 and April 19, 2004, both dates inclusive. The action, entitled Tinega v. NovaStar Financial, Inc., et al., Case No. not yet assigned, is pending in the United States District Court for the Western District of Missouri and names as defendants, the Company and: (1) Scott F. Hartman, Chairman of the Board and Chief Executive Officer, (2) W. Lance Anderson, President, Chief Operating Officer and director, and (3) Rodney E. Schwatken, Vice President, Secretary, Treasurer, and Controller The complaint charges defendants with 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 failed to disclose and misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (i) that the Company was operating branches in various states without obtaining the necessary regulatory licenses. Accordingly, a material amount of the Company's branch offices were conducting business in violation of the applicable laws and regulations; (ii) that the risk of the Company being subject to adverse regulatory action was heightened given the aforementioned facts. Accordingly, NovaStar's purported risk disclosures concerning regulatory oversight did not constitute meaningful cautionary language; and (iii) that the Company was materially overstating the growth of its network of branches as many of those purported branches either did not actually exist or were operating in violation of applicable law. On April 12, 2004, an article appeared in The Wall Street Journal entitled "Outside Audit: Novastar's Rise Has A Ring Of Deja Vu." The article reported that in February 2004, Nevada state authorities ordered Novastar to cease operations there after a finding that none of the Company's branches were licensed to do business in the state. Furthermore, according to the article, "Nevada's top mortgage-lending regulator said he found that most of the 15 branches that Novastar claimed to have in the state didn't actually exist." In response to the facts revealed in The Wall Street Journal news article, the price of NovaStar common stock plummeted 31% from $54.18 per share to $37.50 per share on extremely heavy trading volume. Then, on April 19, 2004, the SEC announced that it has begun an inquiry into NovaStar's business practices. On news of the inquiry, Company shares took another beating, dropping $7.21, or 18.5%, to close at $31.80. During the Class Period, NovaStar stock had traded as high as $70.32 per share. For more details, contact David Leifer by Mail: 488 Madison Avenue, 8th Floor New York, New York 10022 by Phone: (877) 935-7400 or by E-mail: dleifer@whesq.com ODYSSEY HEALTHCARE: Cauley Geller Lodges Securities Suit in TX -------------------------------------------------------------- Cauley Geller Bowman & Rudman, LLP initiated a securities class action in the United States District Court for the Northern District of Texas on behalf of purchasers of Odyssey Healthcare, Inc. (Nasdaq: ODSY) publicly traded securities during the period between May 5, 2003 and February 23, 2004, inclusive. The complaint charges that Odyssey, Richard R. Burnham, David C. Gasmire, and Douglas B. Cannon violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 5, 2003 and February 23, 2004. More specifically, the complaint alleges that defendants' statements during the Class Period failed to disclose and misrepresented the following material adverse facts which were then known to defendants or recklessly disregarded by them: (1) that the Company's financial results were materially inflated because at least six of its Hospice programs exceeded the amounts they were entitled to receive in Medicare reimbursements; (2) that the Company admitted patients to its Hospice programs who were not eligible for Medicare yet claimed that such patients were; (3) the Company's financial results were a result of providing a level of care and services below the standards set forth under government guidelines because the Company's caseloads were heavier than industry norms; (4) that the Company could not keep up with its heady growth due to higher labor costs -- especially in California, which represented 13 percent to 15 percent of Odyssey's revenues; (5) that higher drug costs were hurting the Company's margins; and (6) that Odyssey was suffering from negative cash-flows. On February 23, 2004, Odyssey announced that its first-quarter profits would be below analysts' estimates. According to the Company, it expected its 2004 earnings per share results to reflect a 23 to 25 percent increase over 2003, or $1.03 to $1.05 for the year. For the first quarter of 2004, Odyssey expected earnings per share of $0.20 to $0.22, (analysts' expected the Company to earn earnings per share of $0.25) compared to $0.19 for the first quarter of 2003. News of this shocked the market with shares of Odyssey falling $7.11 per share, or 26 percent, to close at $20.32 per share on February 24, 2004. In its April 12, 2004 edition, Barron's published an article highlighting the Company's operational issues. Therein, Barron's articulated that there are signs that the Company can't keep up with its heady growth. "Higher labor costs -- especially in California, which represents 13%-15% of its revenues -- as well as higher drug costs hurt Odyssey's margins in last year's fourth quarter. In reporting those results on Feb. 23, the company forecast lower- than-expected earnings for this year. Another red flag: Odyssey disclosed that, in its most recent quarter, six of its programs exceeded the amounts they were entitled to receive in Medicare reimbursements, raising questions about whether patients admitted to its programs are truly eligible." Additionally, the article pointed out: "There are also suggestions that some of Odyssey's strong growth is the result of providing a level of care and services below the standards set forth under government guidelines, including providing adequate bereavement services for patients' families." For more details, contact Samuel H. Rudman, Esq., David A. Rosenfeld, Esq., Jackie Addison by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 by Fax: 1-501-312-8505 or by E-mail: info@cauleygeller.com ODYSSEY HEALTHCARE: Charles Piven Lodges Securities Suit in TX -------------------------------------------------------------- Law Offices Of Charles J. Piven, P.A. today announced that a securities class action was commenced on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of Odyssey Healthcare, Inc. (Nasdaq:ODSY) between May 5, 2003 and February 23, 2004, inclusive. The case is pending in the United States District Court for the Northern District of Texas against the Company and one or more of its officers and/or directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Charles J. Piven, P.A. by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410-986-0036 or by e-mail: hoffman@pivenlaw.com VASO ACTIVE: Scott + Scott Launches Securities Fraud Suit in MA --------------------------------------------------------------- Scott + Scott, LLC initiated a securities class action in the United States District Court for the District of Massachusetts on behalf of purchasers of Vaso Active Pharmaceuticals, Inc. (Nasdaq: VAPH) common stock during the period between December 11, 2003 and March 31, 2004. On April 1, 2004 the SEC halted trading of Vaso Active; it has since resumed trading and it opened today at ninety- five cents per share. The complaint charges Vaso Active and certain of its officers and directors with violations of the U. S. securities laws (Securities Exchange Act of 1934). Vaso Active's principal activity is to develop, manufacture and market pharmaceutical products. The Company focuses on vaso active lipid encapsulated and/or transdermal delivery technology drugs. The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding Vaso Active's key products. The true facts, which were known by each of the defendants but actively concealed from the investing public during the Class Period, were that the Company's claims that its "clinical trial" for its deFEET product was "supervised by independent physicians and analyzed by the New England Medical Center in Boston" Massachusetts. Further, it is alleged that this was grossly misleading in that the New England Medical Center had nothing to do with the study associated with the "clinical trial," that the New England Medical Center was unable to draw any conclusions concerning the effectiveness of the product and played no role in selecting the patients and gathering evidence and that the trial was not supervised by "independent physicians." Next, the Company's so-called "clinical trial" was not new or revolutionary but rather more than half a decade old, the American Association of Medical Foot Specialists and its so- called "endorsement" of the Company's deFEET product was of little value, and contrary to defendants' claim that there was significant demand for the Company's stock at an "institutional level," there was little, if any, institutional demand for the Company's shares. On April 1, 2004, SEC regulators halted trading of Vaso Active stock due to questions about the accuracy of assertions made in the Company's press releases, annual report, registration statement and public statements to investors regarding FDA approval of certain of its products. The stock has resumed trading, but far off from its value of over 7 dollars per share on or about April 1, 2003. For more details, contact Neil Rothstein by Mail: 108 Norwich Avenue, Colchester, CT 06415 by Phone: 860/537-3818 by Fax: 860/537- 4432 or by E-mail: nrothstein@scott-scott.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. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Roberto Amor, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2004. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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