/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/040621.mbx C L A S S A C T I O N R E P O R T E R Monday, June 21, 2004, Vol. 6, No. 121 Headlines ANTI-SPAM LITIGATION: Canadian, Relatives Settle Yahoo! Lawsuit ARCHER DANIELS: Reaches $400M Pact For Corn Syrup Antitrust Suit BISYS GROUP: Shareholders File Securities Fraud Suits in S.D. NY BLACK BOX: Lawsuit Settlement Hearing Set For September 10, 2004 CABLE & WIRELESS: VA Court Dismisses Shareholder Fraud Lawsuit CABLEVISION SYSTEMS: Lipman & Plesur Lodges Overtime Suit in NY CARRIER COMMERCIAL: Recalls 16,000 Heaters Due To Injury Hazard CIVIL SERVICE: Reaches $100M Settlement in Mortgage Penalty Suit CLASS ACTION BILL: Chamber of Commerce Backs Out of Discussion CONNECTICUT LIGHT: CT Residents To Sue Over Power Line Project DREYFUS CORPORATION: Plaintiff Dismisses Mutual Fund Fraud Suit EL PASO: Pays $570 Million Portion of Gas Prices Antitrust Pact ENRON CORPORATION: Utility Shows "Proof" of Energy Price-gouging GUAM: Government Settles Overtime, Tax Credit Lawsuits HOLOCAUST LITIGATION: Swiss Banks To Release WWII-Era Records HOLOCAUST LITIGATIN: High Court Orders Review of WWII-Era Suits HUFFY BICYCLE: Recalls 12T Cranbrook Bicycles For Injury Hazard INFONET SERVICES: Settlement Hearing Set July 26,2004 in C.D. CA JOHNSON & JOHNSON: Employee Lodges NJ Race Discrimination Suit LINN INC.: Recalls 2,157 Amplifiers & Speakers For Fire Hazard MARTHA STEWART: Govt Witness Denies Charges of Perjury in Trial MASSACHUSETTS: Inmates Sue Bristol County Sheriff Over Charges MCI WORLDCOM: Parker & Waichman Offers Free Case Evaluations NON-PROFIT HOSPITALS: Faces Several Lawsuits Over Charity Care PETROECUADOR: ChevronTexaco Files Suit With NY Arbitration Panel QFC INC.: WA Court Allows Lawsuit Over Advantage Card to Proceed QWEST COMMUNICATIONS: CO Judge Approves $25M Suit Settlement ROYAL FOOD: Recalls Raw Almonds Due To Salmonella Contamination SOUTH KOREA: Government Plans To Revise Consumer Protection Act TENNESSEE VALLEY: Argues For Dismissal of Price Fixing Lawsuit TOBACCO LITIGATION: FL Court Postpones Oral Arguments in Engle New Securities Fraud Cases 99 CENTS: Chitwood & Harley Lodges Securities Suit in C.D. CA ALLIANCE GAMING: Charles J. Piven Lodges Securities Suit in NV KEY ENERGY: Schatz & Nobel Lodges Securities Suit in W.D. TX LEHMAN ABS: Kirby McInerny Lodges Securities Suit in S.D. NY LEXAR MEDIA: Murray Frank Launches Securities Lawsuit in N.D. CA MERIX CORPORATION: Stoll Stoll Lodges Securities Lawsuit in OR MERIX CORPORATION: Schiffrin & Barroway Files Stock Suit in OR VICURON PHARMACEUTICALS: Charles Piven Files PA Securities Suit VICURON PHARMACEUTICALS: Scahtz Nobel Lodges PA Securities Suit ********* ANTI-SPAM LITIGATION: Canadian, Relatives Settle Yahoo! Lawsuit --------------------------------------------------------------- A Canadian man and two of his relatives settled for an undisclosed "six figure" sum the lawsuit filed against them for sending unsolicited e-mail messages to users of Yahoo! Inc.'s email service, the Associated Press reports. In March, Yahoo! sued Eric Head, his father and brother, alleging they ran a huge spamming operation that sent $94 million junk e-mail messages in one month alone to Yahoo! Mail users. The allegations focused on Mr. Head, 25, who ran the e- mail business called Gold Disk Canada from the family home in Kitchener, Ontario. He has shut down his operation and become a drummer in a rock band. "Eric is out of business," Huey Cotton, a Los Angeles lawyer who represented the men, told the Associated Press reports. "He's going to play in a band and find a way to use his knowledge to help protect kids on the Internet." The three have settled the lawsuit and agreed to pay Yahoo at least $100,000, Toronto's Globe and Mail reported in Tuesday's editions. The exact amount is confidential, but a lawyer for the family told the newspaper it was "six figures." The settlement was reached several weeks ago and approved by a judge on Thursday. In a statement, Mr. Head expressed regret. "I urge everyone who is involved in the commercial bulk e-mail business to cease all operations unless and until they are completely compliant with the requirements of the new United States anti-spam laws," he said, according to an AP report. ARCHER DANIELS: Reaches $400M Pact For Corn Syrup Antitrust Suit ---------------------------------------------------------------- Archer Daniels Midland Co. reached a $400 million settlement for a federal antitrust suit, charging it with conspiring to fix the price of high fructose corn syrup, the Associated Press reports. The suit was filed after the government investigated the Company's role in a price-fixing scandal involving the livestock feed supplement lysine and citric acid, used in food, detergents and other products. 20 corn syrup buyers filed the suit in the United States District Court in Peoria, Illinois, alleging that the Company's actions cost them $1.6 billion. Plaintiffs included the Coca-Cola Co. and PepsiCo. The jury trial for the suit was set for September and the Company could have faced damages of nearly $5 billion, as jurors could have tripled any award if they found the company responsible. The settlement could potentially extend to about 2,700 plaintiffs who bought the corn-based sweetener from 1991 to 1995. "We are pleased to have reached a resolution with our customers in the food and beverage industries," G. Allen Andreas, chairman and CEO of Decatur, Ill.-based ADM, said in a statement late Thursday, AP reports. "In light of the potential exposure inherent in litigation, the board of directors concluded that it was in the best interests of the company to dispose of this matter." BISYS GROUP: Shareholders File Securities Fraud Suits in S.D. NY ---------------------------------------------------------------- The Bisys Group, Inc. and certain of its current and former officers face several securities class actions filed in the United states District Court for the Southern District of New York, following the Company's May 17, 2004 announcement regarding the restatement of its financial results. The complaints purport to be brought on behalf of all shareholders who purchased the Company's securities between October 23, 2000 and May 17, 2004. The complaints generally assert that the Company and certain of its officers allegedly violated the federal securities laws in connection with the purported issuance of false and misleading information concerning the Company's financial condition. The complaints seek damages in an unspecified amount against the Company. BLACK BOX: Lawsuit Settlement Hearing Set For September 10, 2004 ---------------------------------------------------------------- The United States District Court for the Western District of Pennsylvania will hold a fairness hearing for the proposed settlement for the class action filed against Black Box Corporation on behalf of all persons who purchased the common stock of the company during the period from October 15, 2002 through and including March 11, 2003. The Court has scheduled a fairness hearing to approve the proposed settlement before the Honorable William L. Standish, United States District Judge, at the United States Courthouse for the Western District of Pennsylvania, 829 U.S. Courthouse, Pittsburgh, PA 15219 at 2:30 p.m., on September 10, 2004. For more details, contact In re Black Box Securities Litigation by Mail: c/o The Garden City Group, Inc. - Claims Administrator P.O. Box 9000 #6224, Merrick, NY 11566-9000 or by Phone: 866-808-3586 OR Samuel H. Rudman, Esq. of Geller Rudman, PLLC by Mail: 200 Broadhollow Rd., Suite 406 Melville, NY 11747 by Phone: 631-367-7100 OR Gregory Castaldo, Esq. of Schiffrin & Barroway, LLP by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 610-667-7706 CABLE & WIRELESS: VA Court Dismisses Shareholder Fraud Lawsuit -------------------------------------------------------------- The United States District Court for the Eastern District of Virginia dismissed the securities class action filed against U.K. carrier and internet services group Cable and Wireless (UK:CW) (CWP), Reuters UK reports. Investors in the United States filed a class action suit against C&W in December 2002 alleging that it failed to disclose a huge potential tax liability and accusing the firm of issuing false and misleading statements that cost investors dearly. CABLEVISION SYSTEMS: Lipman & Plesur Lodges Overtime Suit in NY --------------------------------------------------------------- The law firm of Lipman & Plesur, LLP on behalf of a former call- center employee has initiated a lawsuit seeking class action status in the U.S. District Court in Central Islip against his former employer Cablevision Systems Corporation, Newsday.com reports. Robert Wolfson, 43, who worked in the company's Woodbury call center for nearly three years, says he wasn't being paid for the time it took to get his customer service computer up and running to answer calls. In the suit he also claims that the Cablevision refused to pay him for work he was required to perform before and after his shift, including booting up his computer and opening the programs necessary to start his shift, which he terms as "off- the-clock" tasks. The "off-the-clock" tasks could take 15 to 20 minutes, Wolfson said, because he had to find a workstation, log on and open about 20 programs so that he could begin helping customers by his 11 a.m. start time. If employees weren't set up and ready to take calls, their performance appraisals would suffer, he said, reports Newsday. To remedy this Wolfson arrived early to get set up but claimed supervisors refused to pay him for the time. The extra time often pushed his workweek over 40 hours, making him eligible for overtime, according to the complaint and one of his lawyers, Robert D. Lipman of Lipman & Plesur in Jericho. Attorney Robert D. Lipman also stated that the suit could involve at least 1,000 employees at Cablevision call centers throughout the tri-state area and millions of dollars in back wages. For more details, contact Robert D. Lipman of Lipman & Plesur by Mail: 500 N. Broadway, Suite 105, Jericho, NY 11753 by Phone: 516-931-0050 or visit their Web site: http://www.lipmanplesur.com/index.html CARRIER COMMERCIAL: Recalls 16,000 Heaters Due To Injury Hazard --------------------------------------------------------------- Tyler Refrigeration, of Waxahachie, Texas, a division of Carrier Commercial Refrigeration Inc., of Charlotte, N.C. and Electro- Heat Inc., of Allegan, Mich. is cooperating with the United States Consumer Product Safety Commission by voluntarily recalling about 16,000 Defrost heaters used in grocery store frozen food cases. Moisture building up pressure inside the defrost heater can cause it to forcefully eject from the frozen food case, possibly injuring bystanders. Carrier Commercial Refrigeration Inc. has reports of four incidents where the defrost heater forcefully ejected, and in two instances, the defrost heater penetrated through the end of the frozen food case. In one incident, a consumer's leg was broken. The recalled defrost heater was used in Tyler's "wide island" frozen food end cap cases in grocery stores. The recalled defrost heaters (which are not visible to consumers) are Electro-Heat Defrost Heater Model 51957100. The Tyler wide island frozen food end cap cases with the recalled heaters are models NCE, NFE, NGE, NCGE, NFJEA, NCJEA, NCJGEA and NFJGEA. The model and serial number is located on the data plate, which is on the front inner panel of the case. Made in the U.S.A. the defrost heaters were sold to grocery stores nationwide who use these wide island frozen food end cap cases with defrost heaters to display food items. The cases were sold by Tyler Refrigeration from the mid-1970s to the present. Tyler will replace the recalled defrost heater with a Cal-rod hairpin style heater in all wide island frozen food and ice cream end cap cases. For more details, contact Tyler Refregiration by Phone: (800) 992-3744 x804 between 8 a.m. and 5 p.m. ET Monday through Friday or visit their Web site: http://www.tylerrefrigeration.comOR Margaret Gan-Garrison by Phone: (860) 674-3370. CIVIL SERVICE: Reaches $100M Settlement in Mortgage Penalty Suit ---------------------------------------------------------------- The Civil Service Cooperative Credit Union, Limited (the "CS CO- OP") has reached a $100 million settlement with consumers concerning the amount of penalty applied when they paid out their mortgages in order to complete the sale of their homes, the Canada Newswire reports. The lawsuit, one of eleven initiated against Canadian financial institutions by the law firms of Farah & Associates and Koskie Minsky LLP, is based on a homeowner's standard contractual right to pay off a percentage of their mortgage balance (usually between 10% and 20%) during a calendar year without being charged a penalty by their bank or mortgage company. Most banks are not crediting homeowners with the interest free prepayment amount when calculating the three-month penalty on the mortgage payout. For a $200,000 mortgage, this credit represents an average savings to a homeowner of approximately $500. "This settlement is an important victory for consumers, who rely on fairness and transparency in their dealings with financial institutions" said Sue Lott, a lawyer with the Public Interest Advocacy Centre (PIAC), an organization representing consumer interests that has been closely following this action. Unlike the rest of Canada's financial institutions, the Royal Bank of Canada automatically credits this prepayment right. "Consumers have a right to expect that all financial institutions meet their obligation to set out in good faith the terms of the mortgage contract, including this prepayment right when their mortgage is discharged." "We are also very pleased to see that the Law Foundation of Ontario, which operates a class proceedings fund, provided funding to support this worthy action" added Sue Lott. CLASS ACTION BILL: Chamber of Commerce Backs Out of Discussion -------------------------------------------------------------- The U.S. Chamber of Commerce has changed its mind about participating in a discussion in front of reporters with Public Citizen, a nonprofit consumer advocacy organization based in Washington, about a radical, anti-consumer overhaul of the class action system that the Chamber is trying to push through Congress. The measure, which is likely to come to a vote soon in the U.S. Senate, would dramatically curtail the rights of consumers to pursue state-law class action claims by shifting most of them to federal courts, which in many instances are far less advantageous for consumers. Because the legislation is so significant, Public Citizen President Joan Claybrook in March invited Chamber President Tom Donohue to a debate in front of the national press. The idea was to bring together the heads of two organizations with a great interest and activity in the issue, and to exchange views to help journalists better understand the reasons for supporting or opposing bill. A tentative date had been set in mid-June that was apparently good for both Donohue and Claybrook. Later, though, the Chamber's staff canceled with no explanation. "It is very telling that the Chamber, which is vigorously working behind the scenes to push this radical measure, refuses to discuss the pros and cons in front of the national press," Claybrook said. "What does the Chamber fear? If Tom Donohue backs this bill, he owes the public an explanation as to why." For more details, visit the Public Citizen Web site: http://www.citizen.org CONNECTICUT LIGHT: CT Residents To Sue Over Power Line Project -------------------------------------------------------------- Connecticut Light & Power faces a possible class action to be filed by several hundred residents in Wilton, Connecticut, over the utility's plan to put up power lines that will run from Bethel to Norwalk, News12 The Bronx reports. Construction is scheduled to start on July 1. Residents say they were led to believe the lines would run underground and away from their homes. They now say that some of the power lines will run above ground, near their homes. They are concerned about electro-magnetic fields and the associated health risks, and about possible declining property values. DREYFUS CORPORATION: Plaintiff Dismisses Mutual Fund Fraud Suit --------------------------------------------------------------- Plaintiffs voluntarily dismissed the class action filed against The Dreyfus Corporation in the United States District Court in Manhattan, New York, alleging the charging of excessive fees on mutual funds closed to new investors. In late 2003, investor Milton Pfeiffer filed the suit, seeking to recover 12b-1 fees. The Company successfully demonstrated to the plaintiff that it had complied with Rule 12b-1, under which fees may legitimately be charged to funds that are closed to new investors. "What seems to be often misunderstood is that 12b-1 fees on Class B shares reimburse the distributor for sales commissions that the distributor advances to intermediaries who sell fund shares. Since it generally takes six years for the distributor to recoup the commissions it has paid out upfront, the distributor -- when a fund closes -- is entitled to be reimbursed for amounts it has advanced. In addition, 12b-1 fees support marketing and shareholder servicing activities critical for a fund to maintain its asset size," the Company said in a statement. The Dreyfus Corporation is a subsidiary of Mellon Financial Corporation (NYSE: MEL), a global financial services company. For news and other information about Mellon, visit the Website: http://www.mellon.com. EL PASO: Pays $570 Million Portion of Gas Prices Antitrust Pact --------------------------------------------------------------- El Paso, a natural gas and energy products provider has paid $570 million dollars in cash as part of a partial settlement in a class action lawsuit, Forbes.com reports. The suit alleges that the Company illegally helped drive up natural gas prices in Western states during the power crisis of 2000 and 2001. Starting this July, El Paso is set to release the first of 40 semi-annual payments to the settlement parties that will total about $876 million over the length of the obligation. Under a second settlement agreement, scheduled to take effect by the end of June, El Paso will make cash payments of about $34 million. This payment will affect the company's cash position. In June 2003, El Paso signed two definitive agreements to settle claims with California class action litigants and the attorneys general of California, Washington, Oregon and Nevada, among others. In exchange for admitting no wrongdoing, the company agreed to multiple financial payouts and reduced pricing. ENRON CORPORATION: Utility Shows "Proof" of Energy Price-gouging ---------------------------------------------------------------- The Snohomish Public Utility District released audiotapes and documents early this week showing how Enron Corporation manipulated the California energy market during the 2000 to 2001 power crises, and gouged Western America customers for at least $1.1 billion, the Associated Press reports. The latest release showed a glimpse into how the fallen energy giant allegedly manipulated the market as millions of California residents suffered from blackouts and expensive electric bills. The records show that the Company manipulated the market on 473 of 537 days from January 2000 to June 2001, the utility said. The Company reportedly employed five schemes, labeled "sidewinder," "ping pong," "donkey punch," "spread play," and "Russian roulette." In one scheme, Enron reportedly made $222,678 in a three-hour period by shipping power from California to Oregon, masking the original source of the power, and then selling it back to California at highly inflated rates. In one of the transcripts, an Enron employee says, "If the line's not congested I just look to congest it . If you can congest it, that's a moneymaker no matter what." The documents also show that Enron maintained five separate sets of accounting records. Last month, the utility released details of conversations between Enron traders, where they gleefully gloated about ripping off "those poor grandmothers" in California during the power crisis. The utility analyzed the records to defend itself against a $122 million lawsuit filed by the energy giant, accusing the district of illegally breaking its contracts with the company. The utility claims the contract was void because Enron engaged in fraudulent business practices to drive up prices. The utility is asking an administrative law judge to order the energy giant to surrender up to $2 billion in ill-gotten gains. California politicians want Enron to reimburse customers there at least $8.9 billion. Enron refused to comment on the records except to say it is cooperating with all investigations. Energy traders routinely keep tapes of their phone calls as a record of oral contracts, AP reports. Sen. Maria Cantwell, D-Washington, used the evidence to demand a new investigation by the Federal Energy Regulatory Commission. She said the agency's failure to uncover Enron's schemes wound up hurting thousands of customers and that the commission tried to keep the utility district from getting access to Enron's tapes. "When are you going to give justice to the individuals who have been hurt by this Enron market manipulation?" Ms. Cantwell asked. "If the federal oversight regulators aren't going to do their job, then they should get out of the way and quit obstructing justice." FERC spokesman Bryan Lee said the agency would review the documents to see what new information they contained. He denied that the agency had tried to suppress any information. An administrative law judge's finding that Enron should forfeit $32.5 million in unjust profits is pending before FERC. GUAM: Government Settles Overtime, Tax Credit Lawsuits ------------------------------------------------------ The local government in Guam is paying out $2.7 million in overtime payments owed to Guam Police Department, Guam Fire Department and Department of Corrections personnel, the Pacific Daily News reports. Acting Guam Gov. Kaleo Moylan announced that the payments were possible due to the expected influx of cash from business license renewals this month. "This is the first time in many years that this government has come current with its overtime obligations," the acting governor told the Pacific Daily News. "Once those payments have been made, the attorney general's office will withdraw its case." Attorney General Douglas Moylan's office filed a lawsuit in the Superior Court of Guam on May 13 to compel the local government to pay long-overdue overtime to law enforcement personnel. The lawsuit also asked the court to stop the government from authorizing overtime unless funds are available. Gov. Felix Camacho and Treasurer of Guam Y'Asela Pereira were named defendants in the lawsuit. "The settlement agreements show the commitment of your leaders to work together for the greater good of our island," the acting governor said. The acting governor also announced an agreement to settle a class-action lawsuit on the government's failure to pay years of Earned Income Tax Credit refunds to the island's thousands of low-income taxpayers. Under the settlement, the local government will put aside $20 million to pay 2004 tax credits in full, and will continue to do so in future years. Taxpayers will not see this money until after the tax filing season next year, which ends April 15. HOLOCAUST LITIGATION: Swiss Banks To Release WWII-Era Records ------------------------------------------------------------- Swiss banks have agreed to release records of thousands of World War II-era accounts that may belong to victims of the Holocaust, the Associated Press reports. The Holocaust survivors have accused the Swiss banks of stealing, concealing or sending to the Nazis millions of dollars worth of Jewish holdings and destroying bank records to cover the paper trail. A $1.25 billion settlement was forged in 1998 , with $800 million allocated to Jews who had accounts in Swiss banks or to their heirs. However, only about $154 million has been distributed, because the account holders and their families were no longer alive. Some experts also asserted that the Swiss banks were also at fault as they resisted further disclosure after releasing more than 20,000 names. More than 30,000 people have claims pending before a tribunal charged with disbursing settlement funds to legitimate claimants. Some 2,000 claims have been found justified. Claimants could receive roughly $270 million. A lawyer for Nazi victims who sued the banks said the agreement could allow the victims or their descendants to obtain hundreds of millions of dollars in unclaimed funds. The banks' refusal to release the records had angered Holocaust survivors and infuriated a federal judge overseeing the case, AP reports. The present agreement could resolve much of the contention between the banks and Holocaust survivors. It is expected to be sent to Switzerland for final approval as early as Thursday. If Swiss banking authorities approve the agreement, Credit Suisse and UBS AG will publish the names of 3,000 accounts opened during the Nazi era. They will open databases of Nazi-era accounts for comparison with a list of thousands hoping to recover family assets from Swiss banks. A claims resolution center will open in New York to ease the process. By the estimation of Burt Neuborne, a lawyer for the survivors, the agreement reached this week could drive the number of successful claims far higher, the Associated Press states. HOLOCAUST LITIGATIN: High Court Orders Review of WWII-Era Suits --------------------------------------------------------------- The United States Supreme Court ordered a lower appellate court to reconsider its ruling allowing a lawsuit filed against the French national railroad Societe Nationale des Chemins de Fer Francais, for its role in transporting more than 70,000 Jews and others to Nazi concentration camps during World War II, the Associated Press reports. The lawsuit alleges that the railroad delivered 72,000 "passengers" to their deaths during World War II, billing per person per kilometer. Stephen Rodd of New York, one of the attorneys representing the survivors, said the railroad's conduct assisted in war crimes. He urged the court not to delay the case, because witnesses are growing older or dying. The appeals court ruled that the French railroad was not protected from litigation in the United States. The defendant appealed the ruling. New York attorney Andreas Lowenfeld told justices that a multitude of old claims could deluge courts, if the court did not stop them. The case was one of four that justices sent back for more consideration in light of their ruling last week that a federal law allows American courts to hear old disputes over such things as wartime looted property, unless the suits are barred by treaties. The other cases involve claims that women were used by Japan during World War II as sex slaves, that Austria is responsible for stolen art and that Poland took Jewish families' land. In the case against Japan, an appeals court had ruled that Japan was protected from a lawsuit by 15 women from China, Taiwan, North and South Korea and the Philippines, who claim that Japan should pay damages for trafficking in women and girls. They contend they were among about 20,000 who were used as "comfort women" for Japanese soldiers during the war. The lawyer for the women said one was 10 when she was kidnapped and enslaved, and the others ranged in age from 13 to 26. The Austrian art case is a class action filed by people seeking to recover property they claim was stolen by the Nazis, with Austria's help. Poland is accused of taking land after World War II from Jewish families who had fled the country. Those two cases, along with the French railroad case, return the 2nd U.S. Circuit Court of Appeals in New York. The U.S. Court of Appeals will consider the lawsuit against Japan for the District of Columbia Circuit. HUFFY BICYCLE: Recalls 12T Cranbrook Bicycles For Injury Hazard --------------------------------------------------------------- The Huffy Bicycle Company, of Springboro, Ohio is cooperating with the United States Consumer Product Safety Commission by voluntarily recalling about 12,000 Huffy "Cranbrook" Bicycles. The handlebar could unexpectedly loosen causing the rider to lose control of bicycle. The recall involves single-speed "Cranbrook" bicycles with 26- inch wheels. The bicycles were sold in both men's (model 56462) and ladies' (model 56472) style frames. The name "Cranbrook" is printed on the frame of the bicycle. Serial numbers included in the recall range from SNHHE04C52556 to SNHHE04C64557. Serial numbers and model numbers are located on the bottom bracket of the frame, where the crank is attached to the bicycle. The bicycles, which were made in China were sol at Wal-Mart stores nationwide from April 2004 through May 2004 for about $80. Consumers should stop using the bicycles and contact Huffy Bicycle to determine if the product is a part of the recall. Consumers will receive a free replacement handlebar and stem. For more details, contact Huffy Bicycle by Phone: (888) 366-3828 between 8 a.m. and 4:30 p.m. ET Monday through Friday or visit their Web site: http://www.huffybikes.com INFONET SERVICES: Settlement Hearing Set July 26,2004 in C.D. CA ---------------------------------------------------------------- The United States District Court for the Central District of California has scheduled for July 26,2004 the final fairness hearing for the settlement of the consolidated securities class action against Infonet Services Corporation and several of its current and former officers and directors, styled "In re Infonet Services Corporation Securities Litigation, Master File No. 01- 10456 NM." The suit, filed on behalf of public investors who purchased our securities during the period from December 16, 1999 through August 7, 2001, names as defendants the Company and: (1) Jose A. Collazo, Chief Executive Officer and Chairman of the Board, (2) Akbar H. Firdosy, Chief Financial Officer, (3) Douglas Campbell, (4) Eric M. de Jong, (5) Morgan Ekberg, (6) Masao Kojima, (7) Joseph Nancoz, (8) Rafael Sagrario, (9) KDDI Corporation, (10) KPN Telecom, (11) Swisscom AG, (12) Telefonica International Holding B.V., (13) Telia AB, (14) Telstra Corporation Ltd, (15) Merrill Lynch & Co., (16) Warburg Dillon Read LLC, (17) ABN AMRO Inc., (18) Goldman Sachs & Co., (19) Lehman Brothers Inc. and (20) Salomon Smith Barney Inc. The suit alleges that defendants made misrepresentations and omissions regarding the AUCS channel in the Company's Form S-1 registration statement and the accompanying prospectus for its initial public offering of Class B common stock and in other statements and reports during the class period. The plaintiffs assert counts against the Company and its officers and directors for violations of Sections 11, 12 and 15 of the Securities Act of 1933 and violations of Section 20(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The plaintiffs have requested a judgment determining that the lawsuit is a proper class action, awarding compensatory damages and/or rescission, awarding costs of the lawsuit and awarding such other relief as the court may deem just and proper. All of the defendants filed motions to dismiss the consolidated suit. On August 12, 2003, the Court ruled on the motions to dismiss, dismissing the underwriters and Class A stockholders without leave to amend, and dismissing the Company and its officers and directors with leave to file an amended complaint. Plaintiffs filed an Amended Consolidated Class Action Complaint on October 3, 2003, to which defendants responded with a motion to dismiss filed on December 5, 2003. The parties have entered into a settlement of the federal securities litigation, which is subject to approval by the Court. Under the settlement, all claims will be dismissed, the defendants will obtain releases of liability, and the litigation will be terminated in exchange for a cash payment of $18 million by the defendants. On April 16, 2004, the Court preliminarily approved the settlement and certified a settlement class including persons who purchased Infonet common stock between December 16, 1999 through August 7, 2001, except for defendants and certain other related persons. JOHNSON & JOHNSON: Employee Lodges NJ Race Discrimination Suit -------------------------------------------------------------- Johnson & Johnson (JNJ) faces a complaint filed with the Equal Opportunity Employment Commission in Newark, New Jersey, charging the company with racial discrimination. Brenda Matthews filed the suit, alleging the Company discriminated against her by denying her a position as a paralegal because of her credit rating. In the complaint she says she was offered a job as a legal assistant in the company's patent office in October 2003, only to have the offer rescinded following a credit check. Lawyers for Ms. Matthews, 27, of Newark, assert that blacks historically have had fewer opportunities to obtain credit, and that using credit among hiring criteria amounts to racial discrimination. Ms. Matthews' lawyers, who include Bill Lan Lee, a former assistant U.S. attorney general for civil rights, say there is no data linking credit ratings to job performance. A separate lawsuit pending against Johnson & Johnson in U.S. District Court in New Jersey charges that the company's policies and practices have kept black and Hispanic employees out of executive positions. Compared with white workers, the suit alleges, blacks and Hispanics receive lower salaries and fewer merit increases, cash bonuses, stock awards and stock options. LINN INC.: Recalls 2,157 Amplifiers & Speakers For Fire Hazard -------------------------------------------------------------- Linn Inc., of Jacksonville, Fla. is cooperating with the United States Consumer Product Safety Commission by voluntarily recalling about 2,157 units of Linn Power Amplifiers and Linn Melodik Bass Extension Loudspeaker System. The amplifier's capacitors can overheat, blow a fuse, and damage the products to which they are connected, presenting a fire hazard. Among the 70 reported incidents, there were two reports of heat damage to the cover of the connected speakers. No injuries reported. The Linn AV5150 2-Channel Power Amplifier comes in black or silver and is 3 inches by 15 inches by 14 inches; all serial numbers of this model are recalled. The Linn LK240 Single- Channel Power Amplifier comes in black or silver and is 3 inches by 12 � inches by 12 _ inches; all serial numbers of this model are recalled. The Linn AV5150 Melodik Bass Extension Loudspeaker System comes in black ash, American cherry, or maple and is 19 inches by 25 inches by 19 inches; only serial numbers 1001 to 714451 are recalled. The model numbers and serial numbers are on the front panel, printed on the bottom of the product, or on the control panel near the main power supply. Made in Scotland, the units were sold at Specialty retail stores throughout the U.S. and Canada from May 1996 through December 2003 for about $1895 (AV5150); $1300 (LK240); and $4265-$4950 (AV5150 Melodik). Consumers should stop using the amplifiers immediately and contact Linn Inc. at (800) 595-6770 for information on how to obtain free repair of the recalled product. MARTHA STEWART: Govt Witness Denies Charges of Perjury in Trial --------------------------------------------------------------- A government witness in the criminal trial of domestic trendsetter Martha Stewart over charges of conspiracy pleaded not guilty to charges that he lied and committed perjury at the trial, Reuters reports. U.S. Secret Service laboratory director Larry Stewart faces two counts of perjury after he testified as an expert witness about ink on a worksheet kept by Ms. Stewart's stockbroker. Mr. Stewart, not related to Martha Stewart, testified that he was involved in examinations of the worksheet. However, court documents said he was only consulted briefly and did not do the actual work. Prosecutors said they had learned from Secret Service employees that Mr. Stewart had not done the actual testing. Lawyers for Ms. Stewart have asked for a new trial, saying the verdict against their client was "corroded" by the testimony. Mr. Stewart's lawyer believes that the jury will acquit her client, who she said has been a "dedicated public servant" for 25 years. "He stands behind the work he did in this case. He stands behind the testimony he gave in the case," defense lawyer Judith Wheat said, Reuters reports. "Our position is that Mr. Stewart's testimony was truthful." Federal prosecutors have said charges against Larry Stewart would not affect the convictions of Martha Stewart and her former broker Peter Bacanovic. Mr. Stewart is scheduled to stand trial on September 20. Ms. Wheat told U.S. District Judge Denny Chin that she would file a motion to have the venue moved to Washington, D.C., from New York. The judge said it was unlikely he would grant the motion. Martha Stewart, 62, who built a media empire on tips for gracious living, was found guilty in March of lying to investigators over her suspicious stock sale in biotech company Imclone Systems, Inc. in December 2001. Prosecutors said she was tipped that ImClone's founder, Sam Waksal, was dumping his shares. The defense said there was a preexisting deal to sell her shares if the price fell to $60. Ms. Stewart is expected to face time in prison, Reuters reports. She is due to be sentenced next month. MASSACHUSETTS: Inmates Sue Bristol County Sheriff Over Charges -------------------------------------------------------------- The Taunton Superior Court in Massachusetts heard the class action filed against Bristol County Sheriff Thomas Hodgson by inmates in the county, who are opposing the policy of making them pay for their incarceration, turnto10.com reports. The County charges inmates $5 a day for housing and collects fees for such things as rent, haircuts, and dental and medical care. The taxpayer-funded Correctional Legal Services filed the suit, alleging that the fees are unconstitutional, and calls them an invalid and unauthorized tax. CLS attorney Jim Pingeon said any fees must be set by the state commissioner of correction, not imposed by sheriffs, turnto10.com reports. Sheriff Hodgson says sheriffs have clear powers of independence and are elected to find ways to reduce the burden on taxpayers of taking care of prisoners. MCI WORLDCOM: Parker & Waichman Offers Free Case Evaluations ------------------------------------------------------------ The law firm of Parker & Waichman LLP is offering free case evaluations to all current and former MCI WorldCom (Pink Sheets:MCIA) shareholders who purchased shares between April 29, 1999 and June 25, 2002. Parker & Waichman believes that the proposed MCI/WorldCom settlement offer does not provide sufficient compensation. The firm continues to believe that many current and former MCI/WorldCom shareholders may benefit from opting out of the class action to pursue individual claims. Current and former shareholders who desire to opt-out of the proposed settlement must submit the opt-out form or required information before the opt-out deadline. This will permit them to pursue individual claims against the defendants. Current and former WorldCom and MCI shareholders who do not specifically opt-out of the class action by filing the required form or information are automatically included in the proposed settlement. The previous February 20, 2004 opt-out deadline has been extended. While no new opt-out deadline has been announced, it is believed that a new opt-out deadline announcement is imminent. For more details, contact David Krangle, Esq. of Parker & Waichman, LLP by Phone: (800) LAW-INFO ((800) 529-4636) by E- mail: dkrangle@yourlawyer.com or visit their Web site: http://www.yourlawyer.com NON-PROFIT HOSPITALS: Faces Several Lawsuits Over Charity Care -------------------------------------------------------------- Some of the country's largest nonprofit hospitals faces several class actions, alleging that they distorted the extent of their charity care while using punishing tactics to obtain payments from uninsured patients, the dailycamera.com reports. Mississippi attorney Richard Scruggs filed the suit, seeking monetary damages over the hospital's alleged failure to comply with the agreements between the medical facilities and the federal, state and county governments. The suit primarily alleges that the hospitals, located in eight states, failed to provide charitable medical care to poor patients in exchange for enjoying tax exemptions. Named in the suit are hospitals in: (1) Illinois, (2) Minnesota, (3) Ohio, (4) Texas, (5) Georgia, (6) Alabama, (7) Florida and (8) Tennessee The suit alleges that these hospitals used "creative" accounting practices to "grossly distort the small amount of charity care they provide to uninsured patients." The lawsuits, filed on behalf of uninsured patients of the hospitals, also allege that in addition to amassing millions from savings on unpaid taxes, the hospitals benefit from income from their "for profit" operations. "Instead, the hospitals charge the uninsured 'sticker' prices for health care, an amount higher than any other patient group, and then, when the uninsured can't pay, harass the uninsured through, among other tactics, aggressive collection efforts such as garnishment of wages and bank accounts, seizures of homes, and personal bankruptcies," Mr. Scruggs told dailycamera.com. Alicia Mitchell, a spokeswoman for the American Hospital Association, told dailycamera.com that her office had just received a copy of one of the suits and that it was being reviewed. "But from our view, this lawsuit is baseless and misdirected," she said. "It diverts focus from the real issue of how we as a nation are going to extend health coverage to all Americans." She added that she was concerned that the suit would "consume already limited health care resources that hospitals need to continue their daily work of caring for uninsured and all other patients in their communities." Mr. Scruggs said the complaint has been brought by a group of lawyers from law firms across the country, many of whom have worked together in the tobacco litigation cases. He said additional, similar lawsuits were in the works. PETROECUADOR: ChevronTexaco Files Suit With NY Arbitration Panel ---------------------------------------------------------------- US oil giant ChevronTexaco (NYSE: CVX) has initiated a lawsuit with an arbitration panel in New York against Ecuador's state oil company Petroecuador, the BNamericas reports. ChevronTexaco is facing a billion dollar class action lawsuit in Ecuador over alleged environmental damage by its former subsidiary Texaco Petroleum (TexPet) in upstream operations in the Amazon jungle between 1972 and 1992, and it now wants Petroecuador to assume responsibility for the costs in that case. In a 1998 agreement Petroecuador and the Ecuadorian government released Texpet from any legal obligations after it completed its share in the clean up work. Petroecuador will officially be served notice of the arbitration in the next few days and then both sides can begin to appoint arbitrators in the case, Jaime Varela, the ChevronTexaco executive who is supervising the company's case in Ecuador, told BNamericas. "Our position is basically we cleaned what we had to and whatever is left there to clean is the responsibility of the national oil company of Ecuador, and we should not be sued for someone else's liability," Varela said. The panel could take a little over a year before ruling on the case, Varela said, adding that the decision in New York is expected before a decision on the class action case in Ecuador, where site inspections by the court are set to begin in July- August. QFC INC.: WA Court Allows Lawsuit Over Advantage Card to Proceed ---------------------------------------------------------------- The King County Superior Court in Washington allowed the lawsuit filed against grocery story QFC, over its failure to notify a customer about meat she purchased from the store that could have been tainted with Mad Cow disease, KOMO 4 News reports. Customer Jill Crowson of Clyde Hill, Washington accused the grocery store of being negligent about warning customers, especially that she had the QFC Advantage Card, which tracks her purchases, name, address and phone number. She is seeking omeny for medical monitoring and emotional distress. The Company moved to dismiss the suit, but Judge William Downing allowed Ms. Crowson to proceed with her claim that QFC was liable because of the store's role as a product seller. However, he granted QFC's motion to dismiss Crowson's two other claims that QFC was liable as a product manufacturer because it ground the potentially tainted meat from its supplier. Steve Berman, attorney for Ms. Crowson, told KOMO 4 News the outcome of this lawsuit could force not only QFC, but all retailers who use these cards to tap into your purchase information for reasons other than making a sale "I think it's the first of it's kind," said attorney Steve Berman, adding the case could be precedent-setting. He likened loyalty card data bases to the information car manufacturers use to alert you about safety recalls. "This is no different," he said. "Now that the retailers like this have armed themselves with the same information as car manufacturers have for their own benefit, when it's not to their benefit and they have the tools to notify people, they should." The Company still has the option to appeal. A spokesman says they cannot comment on what obviously is an ongoing legal dispute. Safeway spokeswoman Cherie Meyers told KOMO 4 News, "The best outlet (to reach possibly affected customers) is going to the media first, and use television, radio, and newspapers. No matter how much (information) you have in the database, the best way to immediately reach customers is through the news media." The lawsuit involves the store's overall responsibility to consumers, and does not single out the data in loyalty cards, but Ms. Crowson's attorney says the cards are a big part, and he eventually wants to make this a class action lawsuit. QWEST COMMUNICATIONS: CO Judge Approves $25M Suit Settlement ------------------------------------------------------------ Denver, Colorado District Judge Lawrence Manzanares approved a $25 million settlement for five shareholder lawsuits against Qwest Communications and its officers, including Joe Nacchio and billionaire Philip Anschutz, the Associated Press reports. The judge also plans to subtract an estimated $7.5 million in attorneys' fees from the total. The lawsuits accused 16 executives and directors, including Nacchio and Anschutz, of earning millions by misusing nonpublic information to profit from insider trading in the stock of Qwest and other companies. The lead lawsuit was filed in November 2002 in Denver District Court by shareholder Thomas Strauss on behalf of the company. It alleged the defendants breached their fiduciary duties. A second was filed in another Colorado state court, two more in Delaware district courts and a fifth in U.S. District Court. As part of the settlement Qwest will be required to change corporate governance and appoint a committee of independent directors to consider separating the roles of chairman and chief executive. According to plaintiffs' attorneys an exhaustive review of more than 6 million documents, congressional testimony and other research did not turn up evidence of improper activity by former CEO Nacchio, Qwest founder Anschutz or other defendants. ROYAL FOOD: Recalls Raw Almonds Due To Salmonella Contamination --------------------------------------------------------------- Royal Food International is conducting a voluntary recall on its distribution of raw whole almonds labeled as Almond Raw due to the possibility of contamination with Salmonella Enteritidis. The recalled almonds are packed in 5#, 10# and 25# boxes. Salmonella is an organism, which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Healthy persons infected with salmonella often experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain. In rare circumstances, infection with salmonella can result in the organism getting into the bloodstream and producing more severe illnesses such as arterial infections (i.e., infected aneurysms), endocarditis and arthritis. Royal Food International distributed these products to retail stores, cafes and delis in New York, New Jersey and Connecticut. This recall is in follow-up to a voluntary recall announced in mid-May by Paramount Farms of California of whole and diced raw almonds based on over 20 possible cases of illnesses associated with the almonds. The cases were reported in California, Arizona, Oregon, Washington, Utah, New Mexico, Arkansas, Tennessee, Massachusetts and Michigan. We are working with FDA to assure that all potentially contaminated almonds are removed from the marketplace and that consumers are notified of the recall. The raw almonds should not be consumed but rather returned to the store of purchase of a full refund. For more details, contact Royal Food International by Phone: 718-392-3355 between 08:00 AM and 06:00 PM. SOUTH KOREA: Government Plans To Revise Consumer Protection Act --------------------------------------------------------------- The South Korean government is considering revisions to the law on consumer protection so that class actions against manufacturers of bad or harmful products can be filed from 2008, according to officials of the Ministry of Finance and Economy, The Asia Intelligence Wire reports. The ministry also stressed the importance of revising the Consumer Protection Act to help consumers who cannot afford to file suits because the cost would far exceed the amount of damage. In a hearing hosted by the board, a spokesperson for the Korea Consumer Protection Board (KCPB) said, "The revisions are necessary since no one is going to go to court because they lost 10,000 won on a bad product when the time and cost needed to receive compensation is a hundred times greater." However, the KCPB spokesperson also said that the changes would include a grace period and measures to prevent misuse of class action provisions so that legitimate economic activities are not hurt, the Intelligence Wire states. The ministry plans to submit a bill on the revision to the National Assembly this year. The bill will also call for the central government authorities to investigate products deemed unsafe and the Consumer Dispute Settlement Commission to be empowered to offer across-the-board relief to consumers for bad products on the market. The officials added that the names of the KCPB and the Consumer Protection Act would be changed to better reflect the government's policy direction on consumer protection policies. TENNESSEE VALLEY: Argues For Dismissal of Price Fixing Lawsuit -------------------------------------------------------------- Attorneys for the Tennessee Valley Authority and the state's electric co-operatives say a lawsuit filed by the law firms Barrett, Johnston, and Parsley; and Branstetter, Kilgore, Stranch & Jennings, against them to recover money for co-op customers should be dismissed, The Tennessean reports. The suit, which is seeking class-action status on behalf of anyone who was a co-op member at any time during a 10-year period starting April 12, 1994, until April 12, 2004, alleges that TVA and the co-ops had conspired to fix artificially high electric rates. There are now close to 800,000 co-op members in the state, many of them in rural areas, but an increasing number live in or near urban areas. Everyone who pays a bill to a co-op is a member- owner. U.S. Rep. Jim Cooper, D-Nashville, has been trying to get the co-ops to return some of their surplus holdings to members for years. He is not involved in the lawsuits. The TVA, which regulates the co-op rates, vehemently denied the allegations that it had conspired to increase rates. Meanwhile, attorneys representing the 22 electric co-ops asked the U.S. District Court in Nashville yesterday to dismiss the case, saying the lawsuit is not a class action and should have been filed as a lawsuit for corporation owners suing the corporations they own. TOBACCO LITIGATION: FL Court Postpones Oral Arguments in Engle -------------------------------------------------------------- The Florida Supreme Court granted a motion to reschedule oral arguments in the Engle class action filed against the tobacco industry, The Dow Jones Business News reports. The suit named as defendants: (1) Altria Group Inc.'s (MO) Philip Morris USA, (2) R.J. Reynolds Tobacco Co. (RJR), (3) Loews Corp.'s (LTR) Lorillard Tobacco Co., (4) British American Tobacco PLC's (BTI) Brown & Williamson unit, and (5) 4Vector Group Ltd.'s (VGR) Liggett Group Inc. The oral arguments, previously slated for October 6, 2004, were postponed until November 3. The plaintiffs' attorney cited personal reasons for the filing of the motion to postpone the arguments. The case, which is known for Howard Engle, a Miami Beach pediatrician with emphysema, seeks to compensate Florida smokers who allegedly were sickened by cigarette smoking. The state Supreme Court plans to review an intermediate appellate court decision overturning a $145 billion verdict against the tobacco industry last year. New Securities Fraud Cases 99 CENTS: Chitwood & Harley Lodges Securities Suit in C.D. CA ------------------------------------------------------------- The law firm of Chitwood & Harley LLP initiated a securities class action in the United States District Court for the Central District of California against 99 Cents Only Stores ("99 Cents" or "NDN"), David Gold, Eric Schiffer, and Andrew Farina (NYSE: NDN) on behalf of purchasers of NDN common stock during the period between March 11, 2004 and June 10, 2004 (the "Class Period"). The complaint charges defendants with issuing a series of material misrepresentations to the market during the Class Period in violation of sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5. Among other things, the complaint alleges that during the Class Period: (1) defendants created the appearance of profitability and success by, among other things, failing to properly accrue expenses, particularly with regard to its Texas operations; (2) defendants failed to disclose that the Company's margins were being eroded by a mix-shift tied to lower margin grocery items, freight costs, higher dairy costs, and a higher mark-down and shrink provision (up to $10 million); (3) the defendants knowingly tolerated weak internal controls; (4) the Company's inventory was artificially inflated by the inclusion of assets such as deli products on its books, despite the fact that those assets were inedible; (5) the Company's Southern California distribution center was in shambles; (6) the Company's workers' compensation problems were far from over, and defendants knew that their expenses associated with these problems were increasing, not declining; and (7) as a result of the above, the Company was not on track to achieve EPS for Q2 04 of $0.19-$0.20. For more details, contact Lauren Antonino, Esq. of CHITWOOD & HARLEY LLP by Mail: 2300 Promenade II, 1230 Peachtree Street, N.E. Atlanta, Georgia 30309 by Phone: (404) 873-3900 or (888) 873-3999 by Fax: (404) 876-4476 or by E-mail: lsa@classlaw.com ALLIANCE GAMING: Charles J. Piven Lodges Securities Suit in NV -------------------------------------------------------------- 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 Alliance Gaming Corporation (NYSE:AGI) between January 15, 2004 and June 7, 2004, inclusive (the "Class Period"). The case is pending in the United States District Court for the District of Nevada against defendant Alliance Gaming 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. No class has yet been certified in the above action. The Law Offices Of 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 KEY ENERGY: Schatz & Nobel Lodges Securities Suit in W.D. TX ------------------------------------------------------------ The law firm of Schatz & Nobel, P.C., has initiated a lawsuit seeking class action status in the United States District Court for the Western District of Texas on behalf of all persons who purchased the publicly traded securities of Key Energy Services, Inc. (NYSE: KEG) ("Key") between April 29, 2003 and June 4, 2004, inclusive (the "Class Period"). The Complaint alleges that Key and certain of its officers and directors issued materially false statements concerning the Company's financial condition. Specifically, defendants; (1) misrepresented the assets reported on Key's balance sheet; (2) improperly inflated net income and earnings per share; (3) failed to disclose that the accounting improprieties posed material risks to Key's liquidity, because a restatement would likely -- and did -- cause the Company to default on its long-term debt agreements; and (4) failed to disclose that Key lacked any reasonable basis for its earnings forecasts and statements about liquidity. The truth began to emerge on March 15, 2004, the day that Key announced that it would not meet the deadline for filing its annual report with the Securities and Exchange Commission because it had not yet completed a review of "certain idle equipment" to determine its impairment. Although Key continued to maintain that the fundamentals of the Company were strong, over the next two months, a series of disclosures further depressed the stock price. Ultimately, on June 7, 2004, Key announced that it had received a notice of default under its senior notes -- under which it had approximately $425 million of outstanding obligation. Key further stated that it was withdrawing earnings forecasts for fiscal 2004. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net LEHMAN ABS: Kirby McInerny Lodges Securities Suit in S.D. NY ------------------------------------------------------------ The law firm of Kirby McInerney & Squire, LLP initiated a securities class action in the United States District Court for the Southern District of New York on behalf of all purchasers of Corporate Backed Trust Certificates, Verizon New York Debenture- Backed Series 2004-1 ("Certificates") (NYSE:CCG) during the period from January 5, 2004 through May 11, 2004, inclusive (the "Class Period"). The action charges defendants Lehman ABS Corp. and Lehman Brothers, Inc. (NYSE:LEH) with violations of the Securities Act of 1933. Investors allege that the Prospectus was materially misleading because it omitted to state material information that defendants had an obligation to disclose. Verizon New York was 1 of 16 domestic operating company owned by Verizon (NYSE:VZ) that filed reports with the SEC. While the Prospectus generally described Verizon's failure to continue as an SEC filer as one of the potential events of default, it failed to disclose that, as of February 2003, Verizon had already deregistered the public indebtedness of six of its domestic operating telephone companies and that those deregistrations were made pursuant to a program Verizon had established in early 2003 This information was material to an investor's decision whether to purchase the Certificates, particularly in light of the fact that a sale of the Debentures in the open market could yield substantially less than the $25 per Certificate paid by the Class members. For more details, contact Vivian Lee by Phone: (888) 529-4787 or by E-Mail: vlee@kmslaw.com LEXAR MEDIA: Murray Frank Launches Securities Lawsuit in N.D. CA ---------------------------------------------------------------- The law firm of Murray, Frank & Sailer LLP initiated a class action lawsuit in the United States District Court for the Northern District of California on behalf of all shareholders who purchased or acquired the common stock of Lexar Media, Inc. (Nasdaq:LEXR) ("Lexar" or the "Company") between July 17, 2003 through April 16, 2004 inclusive (the "Class Period"). The complaint alleges that Lexar, Eric Stang, and Brian McGee 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 17, 2003 and April 16, 2004. More specifically, the Complaint charges 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 underestimated the impact and the timing of competitive pricing moves in the flash memory market; (2) that the Company's preferential supply relationship with Samsung failed to insulate Lexar from fluctuations in pricing and availability of flash memory, which negatively affected the Company's product margins; and (3) that the Company lacked sufficient royalty income to offset product gross margins pressure. On April 15, 2004, Lexar reported financial results for the first quarter ended March 31, 2004. After several quarters of relatively stable average selling prices, second-quarter price declines were sizeable. These declines were occurring sooner than Lexar had previously anticipated. News of this shocked the market. Shares of Lexar fell $5.03 per share or 32.56 percent on April 16, 2004, to close at $10.42 per share. For more details, contact Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-Mail: info@murrayfrank.com MERIX CORPORATION: Stoll Stoll Lodges Securities Lawsuit in OR -------------------------------------------------------------- The law firm of Stoll Stoll Berne Lokting & Shlachter P.C. initiated a class action lawsuit in the United States District Court for the District of Oregon on behalf of all purchasers of the common stock of Merix Corporation (Nasdaq: MERX) between July 1, 2003 and May 13, 2004, inclusive (the "Class Period"). The complaint charges Merix and certain of its officers and directors with issuing false and misleading statements, including overly optimistic earnings and revenue projections, statements regarding increasing demand for its premium priced and quick-turn products. Specifically, the complaint alleges that, during the Class Period, the Company issued materially false statements that demand for its premium-priced and quick- turn products was increasing, when it knew that demand was in fact softening for its product, especially with regard to a major networking customer. These statements had the effect of artificially raising the price of Merix stock so that Merix could complete a public offering generating more than $100 million, and so insiders could sell more than $3.2 million of Merix stock during the Class Period. Investors who purchased Merix shares during the Class Period did so at inflated prices and were thereby damaged. On May 14, 2004, Merix stunned investors by announcing that it was not going to meet its previously issued earnings guidance for the quarter ending May 29, 2004 of $0.19 to $0.22 per share, and the company would actually post a loss of $0.03 to $0.06 per share. For more details, contact David F. Rees of Stoll Stoll Berne Lokting & Shlachter P.C. by Phone: 1-503-227-1600 or by E-mail: drees@ssbls.com MERIX CORPORATION: Schiffrin & Barroway Files Stock Suit in OR -------------------------------------------------------------- The law firm of Schiffrin & Barroway, LLP initiated a class action lawsuit in the United States District Court for the District of Oregon on behalf of all purchasers of the common stock of Merix Corporation (Nasdaq: MERX) ("Merix" or the "Company") from July 1, 2003 through May 13, 2004, inclusive (the "Class Period"). The complaint charges Merix, Mark Hollinger and Jamie S. Brown with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants failed to disclose or indicate the following: (1) that the Company over relied, in their financial projections, on the customers' future demand for premium-priced and reduced-lead-time products, which had previously accounted for 50% of the Company sales; (2) that the Company failed to adequately insulate itself from the softening demand, specifically with regard to supply needs of a major networking customer; (3) that the Company failed to appreciate the market conditions, which did not support the Company's aggressive growth; and (4) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections. On May 13, 2004, after the close of the market, Merix revised guidance for the fourth quarter of fiscal 2004, ending May 29, 2004. News of this shocked the market. Shares of Merix fell $4.64 per share or 30.29 percent on May 14, 2004, to close at $10.68 per share. For more details, contact Marc A. Topaz, Esq. or Stuart L. Berman, Esq. Schiffrin & Barroway, LLP by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 or 1-610-667-7706 or by E-mail: info@sbclasslaw.com VICURON PHARMACEUTICALS: Charles Piven Files PA Securities Suit --------------------------------------------------------------- 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 Vicuron Pharmaceuticals Incorporated (Nasdaq:MICU) between January 6, 2003 and May 24, 2004, inclusive (the "Class Period"). The case is pending in the United States District Court for the Eastern District of Pennsylvania. 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. No class has yet been certified in the above action. The Law Offices Of 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 VICURON PHARMACEUTICALS: Scahtz Nobel Lodges PA Securities Suit --------------------------------------------------------------- The law firm of Schatz & Nobel, P.C., initiated a lawsuit seeking class action status in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased the publicly traded securities of Vicuron Pharmaceuticals, Inc. (Nasdaq: MICU) ("Vicuron") between January 6, 2003 and May 24, 2004, inclusive (the "Class Period"). Also included are all those who purchased shares in the July 17, 2003 offering. The Complaint alleges that Vicuron and certain of its officers and directors issued materially false statements concerning the Company's business condition. Specifically, defendants inflated the price of Vicuron by concealing negative material information concerning both the safety and efficacy of its antifungal drug Anidulafungin, an intravenous drug for fungal infections which was the subject of late-stage clinical trials for the treatment of esophageal candidiasis, invasive aspergillosis, and invasive candidiasis/candidemia. Defendants knew, but failed to disclose, that adverse information regarding the developments and commercialization of Anidulafungin, raised serious concerns over the very approval of the drug. On May 24, 2004 it was disclosed that the Food and Drug Administration ("FDA") had sent Vicuron a letter detailing the failure of Vicuron to supply data necessary to substantiate its claim that Anidulafungin can be used to treat esophageal candidiasis. On this news, shares of Vicuron plummeted $8.86 to $13.04 per share. During the Class Period, Vicuron traded as high as $23.90 per share. For more details, contact Nancy A. Kulesa of Schatz & Nobel by Phone: (800) 797-5499 by E-mail: sn06106@aol.com or visit their Web site: http://www.snlaw.net ********* 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. Glenn Ruel Se�orin, 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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