/raid1/www/Hosts/bankrupt/CAR_Public/040831.mbx
C L A S S A C T I O N R E P O R T E R
Tuesday, August 31, 2004, Vol. 6, No. 172
Headlines
ANTI-SPAM LITIGATION: Justice Department Cracks Down on Spammers
ASTRAZENECA: Japan Study Links Lung Cancer Pill To Pneumonia
BENNETT ENVIRONMENTAL: Shareholders Lodge NY Stock Fraud Suits
BMW OF NORTH AMERICA: Recalls 161 Scooters Due To Injury Hazard
CANADIAN IMPERIAL: Reaches $16.5M Settlement in CIBC VISA Suit
CHARTER COMMUNICATIONS: Proposed Settlement Reached in WI Suit
CHATTEM INC.: WA Judges Certifies Class, Approves PPA Settlement
CHICO'S FAS: Parties in CA Wardrobing Lawsuit To Enter Mediation
CITIBANK CANADA: To Appeal Suit Declaratory Judgment Dismissal
CITIGROUP INC.: Shareholders Launch NY Lawsuit Over Enron Fraud
CREDIT SUISSE: Settles SEC Proceedings, Agrees To $1M Penalty
DPL INC.: Launches OH Fraud Suit Against Three Former Executives
EASTMAN KODAK: Four Employees Lodge NY Race Discrimination Suit
ENBRIDGE GAS: High Court Orders Refund of Late Payment Penalties
ENCANA CORPORATION: Faces U.S. Lawsuits Over Natural Gas Pricing
FLORIDA: Court Allows Miami-Dade Strip-Search Lawsuit To Proceed
GLAXOSMITHKLINE PLC: Denies Accusations, But Settles Paxil Suit
GLOBAL BUILDING: Settles Target Janitors' Overtime Wage Lawsuit
HOME DEPOT: Reaches Settlement For EEOC Race, Sex Bias Lawsuit
HPL ANTITRUST: Suit Settlement Hearing Set September 30, 2004
IMPERIAL TOBACCO: Ontario Court Dismisses Smokers Injury Lawsuit
IMPERIAL TOBACCO: BC Court To Mull Suit Certification in October
INOVA HEALTH: Denies Charges Of Price-Gouging, Hoarding Profits
INTERPUBLIC SECURITIES: Settlement Hearing Set October 22, 2004
ISLE OF CAPRI: Appeals Court Affirms Suit Certification Denial
JAPAN: Former South Korean Leprosy Patients Sue For Compensation
MICROSOFT CORPORATION: EU Initiates Probe of ContentGuard Deal
MICROSOFT CORPORATION: CA Cities, Counties Lodge Antitrust Suit
MOJAVE VALLEY: SEC Lodges Fraud Complaint V. NV Bond Offering
NVE PHARMACEUTICALS: Officials Launch Suit Over Herbal Products
NELLCOR PURITAN: Recalls CapnoProbes Due To Bacteria Content
READER'S DIGEST: Faces CA Lawsuit Over Unsolicited Subscriptions
REPUBLICAN PARTY: Ex-Field Directors Files Race Bias Suit in FL
SHELL/ROYAL DUTCH: KPMG, PricewaterhouseCoopers Drawn Into Suit
SILTRONIC CORPORATION: Offers $5.75M To Settle OR Overtime Suits
SMARTFORCE PLC: Suit Settlement Hearing Set September 29, 2004
SR TELECOM: Pays Settlement For Consolidated Securities Lawsuit
TRI-STATE CREMATORY: Plaintiffs Ambivalent About Preservation
UNITED STATES: Food Companies Push For Obesity Suit Protection
UNITED STATES: Judge Dismisses Antitrust Suit V. NRMP, Sponsors
VAN WAGONER: SEC Settles Fraud Suit, Owner Assessed $41.8T Fine
WELLSPRING CAPITAL: SEC Obtains $6M CT Judgment V. Ponzi Scheme
WINN DIXIE: Shareholders Lodge Securities Fraud Suits in M.D. FL
WINN DIXIE: Pension Plan Participants Launch ERISA Suits in FL
New Securities Fraud Cases
BENNETT ENVIRONMENTAL: Squitieri & Fearon Files Stock Suit in NY
CARDINAL HEALTH: Barrack Rodos Lodges Securities Suit in S.D. OH
CERIDIAN CORPORATION: Weiss & Yourman Lodges MN Securities Suit
CROSS COUNTRY: Charles J. Piven Files Securities Suit in S.D. FL
FIRST VIRTUAL: Schatz & Nobel Lodges Securities Suit in N.D. CA
WET SEAL: Milberg Weiss Lodges Securities Fraud Suit in C.D. CA
WET SEAL: Schatz & Nobel Lodges Securities Fraud Suit in C.D. CA
*********
ANTI-SPAM LITIGATION: Justice Department Cracks Down on Spammers
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The United States Justice Department arrested dozens in a
crackdown on "spam" e-mail, identity theft and other fraudulent
online activity, person involved in the investigation told the
Associated Press last week.
Last year, Congress instituted a law outlawing many forms of
unsolicited bulk e-mail, but spammers continue to swamp Internet
users with unwanted pitches for pornography, questionable
medicine and suspiciously low mortgage rates. Unsolicited bulk
e-mail accounted for 65 percent of all e-mail traffic, according
to computer-security company Symantec Corporation, up from 50
percent in July 2003.
Fraudsters have used spam to spread computer viruses and craft
fake notices from banks to trick people into giving up their
credit card numbers, a tactic known as "phishing." The Anti-
Phishing Working Group, a financial services industry task
force, also stated that there were 1,422 phishing attacks in
June up from 176 in January.
Internet providers like America Online have filed dozens of
spam-related lawsuits over the past year, and the Federal Trade
Commission for years has shut down marketers who send fraudulent
or deceptive e-mail.
State prosecutors in Virginia, New York and a handful of other
states have filed criminal suits against some spammers, and the
Justice Department arrested four Detroit-area men for spamming
activity in April, AP reports.
ASTRAZENECA: Japan Study Links Lung Cancer Pill To Pneumonia
------------------------------------------------------------
AstraZeneca Plc.'s lung cancer pill Iressa has a higher rate of
potentially fatal side effect in patients than that demonstrated
in an earlier study, a new 10-month Japanese study revealed,
according to the Associated Press.
The Company launched Iressa in July 2002 to treat terminally ill
lung cancer patients, but the medicine has been linked to the
death of 444 patients up to March this year. This prompted
several investigations in Japan, where the incidence of
interstitial pneumonia in patients taking the drug has been
significantly higher than elsewhere.
According to the study, 5.8% of 3,322 lung cancer patients
suffered interstitial pneumonia within eight weeks of starting
treatment with Iressa, with a mortality rate of 2.3% due to
pneumonia. A March 2003 on 152 Japanese patients on Iressa had
found that 1.9 percent had interstitial pneumonia and had
estimated the mortality rate at 0.6 percent.
The latest study, which comes as part of an effort to improve
Iressa's image, ran from June 2003 to March 2004 on patients who
were unable to tolerate surgery or were suffering recurrence of
non-small-cell lung cancer. The frequency differs substantially
from the global experience with Iressa, with interstitial
pneumonia reported in 0.3 percent of patients outside Japan, the
company added.
The company said the latest data was more reliable since it was
collected from a larger number of patients. "We don't think the
result means that there has been an increase in the incidence of
side effects, but rather that we are getting a more accurate
picture," Masuhiro Kato, senior vice president of Japanese unit
AstraZeneca K.K, told AP.
The company plans to revise its explanatory note for Iressa to
reflect the result of the investigation after consulting with
the Health Ministry, it said. However, it has no intention of
restricting availability of the drug and believes the clinical
benefits of Iressa outweigh the risks.
The drug was launched first in Japan and has since been approved
in 29 countries, including the United States. It has been taken
by 170,000 patients globally, of which one-third were Japanese,
Kato said. In June, AstraZeneca said its research showed 30
percent of patients with non-small-cell lung cancer taking
Iressa were still alive one year after starting treatment.
BENNETT ENVIRONMENTAL: Shareholders Lodge NY Stock Fraud Suits
--------------------------------------------------------------
Bennett Environmental, Inc. faces several securities class
actions filed in the United States District Court for the
Southern District of New York on behalf of purchasers of its
common stock.
The suits seek to pursue remedies under the Securities Exchange
Act of 1934. The actions are pending before the Honorable Laura
Taylor Swain, in the United States District Court for the
Southern District of New York, and also names as defendants:
(1) John Bennett (Chairman),
(2) Allan Bulckaert (President and CEO),
(3) Danny Ponn (COO),
(4) Richard Stern (CFO), and
(5) Robert Griffiths (VP of U.S. Sales and Marketing)
According to the complaint, defendants violated sections 10(b)
and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a
series of material misrepresentations to the market during the
Class Period, an earlier Class Action Reporter story (August
24,2004) states. The complaints also allege that the Company
made material misrepresentations and omissions of material facts
with respect to the New Jersey Federal Creosote Phase III
contract.
Bennett Environmental Inc. deals with high temperature treatment
services for the remediation of contaminated soil and has
provided thermal solutions to contamination problems throughout
Canada and the US. Bennett Environmental is listed on the
Toronto Stock Exchange (Trading Symbol "BEV") and the American
Stock Exchange (Trading Symbol "BEL"). For information, please
visit the Bennett Environmental Website:
http://www.bennettenv.com,or contact Al Bulckaert by Phone:
(905) 339-1540.
BMW OF NORTH AMERICA: Recalls 161 Scooters Due To Injury Hazard
---------------------------------------------------------------
BMW of North America, LLC, of Woodcliff Lake, N.J. is
cooperating with the United States Consumer Product Safety
Commission by voluntarily recalling about 161 SlideCarver
Scooters.
The front column of the scooter does not meet impact resistance
standards. The handlebar column can break if the scooter hits an
object, which can cause the rider to fall and suffer injuries.
BMW has received one report of a scooter front column breaking,
causing a rider to fall and suffer minor injuries.
The SlideCarver is a three-wheeled scooter, which is designed to
be steered both in the front and back. The steering design
allows riders to shift weight and change direction while
maintaining control. It has twin-disc brakes, and wide tires
equipped with wear indicators. The SlideCarver stands 39.5
inches high by 20 inches wide, has a 26.5-inch wheelbase, weighs
approximately 26.5 pounds, and can be folded. "BMW" and
"SlideCarver" are written on the underside of the rider platform
of these scooters.
Manufactured in Germany, the scooters were sold at all BMW
dealerships and on the firm's Web site from December 2003
through July 2004 for about $700.
Consumers should return the SlideCarver scooters to any BMW
dealership or contact the firm for information on returning the
scooter to receive a refund. Additionally, consumers will
receive a $200 gift certificate for BMW lifestyle merchandise.
For more details, contact BMW by Phone: (800) 831-1117 between 9
a.m. and 9 p.m. ET Monday through Friday.
CANADIAN IMPERIAL: Reaches $16.5M Settlement in CIBC VISA Suit
--------------------------------------------------------------
The Canadian Imperial Bank of Commerce (NYSE: BCM) reached a
settlement of a class action brought on behalf of CIBC VISA
cardholders in respect of foreign exchange transactions.
CIBC has not admitted any liability and is settling to avoid
further litigation with its cardholders. CIBC has agreed to a
settlement of $16.5 million. The settlement must now receive
court approval.
The plaintiffs, represented by Paul Pape and Harvey Strosberg,
had alleged that the conversion of transactions from a foreign
currency resulted in an undisclosed or inadequately disclosed
mark up. This mark up was added to the VISA International
wholesale conversion rate to obtain the Canadian dollar
equivalent for foreign transactions.
Commencing tomorrow, notice of the settlement approval hearing
will be published across Canada in 28 newspapers. A copy of the
court-approved notice of the settlement approval motion is
attached. The hearing is scheduled for October 7, 2004.
If approved, it is anticipated monies will be distributed as a
credit starting December 2004 to all CIBC VISA cardholders who
had active accounts at any time between April 1, 2004 and June
30, 2004 and to whom CIBC was still extending credit as at
October 31, 2004. The amount of the credit will vary depending
on the type of card held by the primary cardholder in June 2004
and how long the cardholder has had any type of CIBC VISA card.
Credits will vary from $.72 to $14.32.
In addition, CIBC will also make a payment of at least $1
million to United Way in respect of past and inactive
cardholders.
For more details, contact CIBC by Phone: 1-800-465-4653 or visit
their Web site: http://www.cibc.com
CHARTER COMMUNICATIONS: Proposed Settlement Reached in WI Suit
--------------------------------------------------------------
Charter Communications subscribers nationwide will get free
services if they paid for certain Charter services under the
terms of a proposed settlement of a class action filed in South
Carolina, the Spartanburg Herald-Journal has reports.
The eligible customers can opt for such items as free high-speed
Internet service for six months, a movie channel service for six
months or free movies as part of the settlement of a lawsuit
filed by two Spartanburg women in 2001.
Residents of the continental United States who subscribed to St.
Louis-based company's residential cable television service
before July 8 and paid a fee to participate in it's wire
maintenance plan and/or paid a fee to rent an analog or digital
converter box while getting only basic or expanded basic service
are also eligible for compensation.
The proposed settlement is to be finalized at a court hearing in
November. As part of the proposed settlement, Charter would not
be required to admit any wrongdoing. The value of the settlement
would range between $140 million and $200 million depending on
the services selected with the attorneys in the case receiving
$8.5 million.
Filed three years ago by Nikki Nicholls and Geraldine Barber,
the suit claims that Charter required customers to rent
unnecessary equipment and pay a bogus wire maintenance fee.
Nicholls and Garber's lawsuit was joined with a Georgia case
filed simultaneously when it became a class action.
Columbia attorney Cam Lewis, who along with Spartanburg attorney
Mike Spears and former state Supreme Court Chief Justice Bruce
Littlejohn represented Nicholls and Barber told the Herald-
Journal, "This is a great settlement. I hope everybody will be
happy with it, because it was difficult to do. But now Charter
knows they have to do things differently."
According to Charter spokesman Dave Mack, former subscribers who
paid the maintenance fee or converter fee also are eligible to
receive compensation. He further adds, "All they have to do is
choose a benefit and it will be provided."
CHATTEM INC.: WA Judges Certifies Class, Approves PPA Settlement
----------------------------------------------------------------
Chattem, Inc. (NASDAQ:CHTT), a leading marketer and manufacturer
of branded consumer products, appeared in a fairness hearing to
consider final approval of the class action settlement which the
Company previously reached in the phenylpropanolamine (PPA)
litigation related to the Company's Dexatrimr brand was held in
the United States District Court for the Western District of
Washington before Judge Barbara J. Rothstein on August 26, 2004.
At the conclusion of the hearing, Judge Rothstein stated that
the court would prepare and enter an order certifying the class
and granting approval of the settlement. Based upon the court's
statements, the number of claims submitted in the class action
settlement, the number of claims which elected to opt out of the
settlement and contributions from insurers and other third
parties, Chattem now expects to record pre-tax charges totaling
$10-15 million, or $7-10 million net of taxes, although the
exact amount of this charge cannot yet be determined. The
Company recorded the first portion of these charges, $3.5
million pre-tax or $.17 per share, during its second fiscal
quarter. Chattem expects to record the balance of this charge in
the third and fourth quarters of fiscal 2004. Chattem previously
estimated the total pre-tax charge associated with the PPA
litigation settlement to be $20-25 million.
CHICO'S FAS: Parties in CA Wardrobing Lawsuit To Enter Mediation
----------------------------------------------------------------
Parties in the class action filed against Chico's FAS, Inc. in
the Superior Court for the State of California, County of San
Francisco, styled "Charissa Villanueva v. Chico's FAS, Inc.,"
have agreed to participate in a voluntary private mediation set
for November 2004.
The Complaint alleges that the Company, in violation of
California law, has in place a mandatory uniform policy that
requires its employees to purchase and wear Chico's clothing and
accessories as a condition of employment.
The Company has denied the allegations, saying in a regulatory
filing that no such mandatory uniform policy exists. The
Company encourages but does not require its associates to wear
Chico's clothing; although many Chico's associates choose to
wear Chico's clothing, others do not, it stated in the filing.
The parties are engaged in discovery, and the Company is
continuing its investigation. No rulings on class certification
have been made. No trial date has been set.
CITIBANK CANADA: To Appeal Suit Declaratory Judgment Dismissal
--------------------------------------------------------------
Citibank Canada and several other Canadian financial
institutions and credit card issuers appealed the Quebec
Superior Court's dismissal of their motion for declaratory
judgment in the three lawsuits filed against them, with respect
to various alleged breaches of the Quebec Consumer Protection
Act (CPA).
Three separate motions, each seeking to institute class actions
in the Province of Quebec, were filed against Citibank Canada
and a number of other financial institutions and credit card
issuers. The suit includes alleged breaches relating to the
imposition of foreign exchange conversion fees, the provision of
increases to account credit limits without cardholder consent
and the timing of imposition of credit charges, which timing is
alleged to be contrary to the legislation's twenty-one day grace
period provision.
The first suit, styled "Real Marcotte (Marcotte) v. Citibank
Canada et. al.," is a Motion for Authorization to Institute a
Class Proceeding filed in the Quebec Superior Court against
Citibank Canada and eight (8) other federally chartered banks,
as Defendants. The Marcotte Motion alleges that Citibank Canada
and the other defendants have breached Sections 69, 70, 126 and
127 of the CPA by imposing foreign exchange conversion fees on
credit card transactions concluded in foreign currencies, and by
imposing said conversion fees at the time of the credit card
transaction rather than providing for a 21-day grace or free-
credit period. Marcotte seeks an unspecified amount for
restitution to each class member of the conversion fees, as
well as $400.00 per class member representing aggravated and
exemplary damages.
The second suit, styled "Option Consommateurs and Normand
Painchaud (together, ''Painchaud'') v. Citibank Canada et. al.,"
is a Motion for Authorization to Institute a Class Proceeding
filed in the Quebec Superior Court against Citibank Canada and
four (4) other federally chartered banks and Diners Club
International. The Painchaud Motion alleges that defendants
have breached Sections 126 and 127 of the CPA by imposing credit
charges at the time of the credit card transaction rather than
providing for a 21-day grace or free-credit period. Painchaud
seeks an unspecified amount for restitution to each class
member of the credit charges, with interest, as well as $200.00
per class member for exemplary damages.
The last suit, styled "Option Consommateurs, Joel-Christian St-
Pierre and Jean Audet (together, ''Audet'') v. Citibank Canada
et. al.," is a Motion for Authorization to Institute a Class
Proceeding filed in the Quebec Superior Court against Citibank
Canada and eight (8) other federally chartered banks. The Audet
Motion alleges that the defendants have breached Section 128 of
the CPA by unilaterally increasing the credit limit of each
member of the class without prior consent and imposing a credit
charge. Audet seeks an unspecified amount for restitution to
each class member of the credit charges, with interest, as well
as $200.00 per class member for exemplary damages.
The Motions have been stayed pending a judgment on a Motion for
a Declaratory Judgment filed by Citibank Canada and eleven (11)
other federally chartered banks seeking a ruling from the Quebec
Superior Court that the above sections (and others) of the CPA
are constitutionally inapplicable to these defendant banks to
the extent that such application affects a vital part of
"banking;" namely, the granting of credit (by way of credit
cards) and the issuance and regulation of credit cards and
credit card plans, including the fees and other charges imposed
in connection therewith, which "banking" is within the exclusive
jurisdiction of Parliament under subsection 91(5) of the
Constitution Act, 1867.
On January 21, 2004, the Attorney General of Quebec brought a
Motion to dismiss the Banks' Motion for Declaratory Judgment on
procedural grounds, which Motion to Dismiss was granted. The
Banks, including Citibank Canada, have appealed. The appeal
will be heard by the Quebec Court of Appeal on September 21,
2004.
CITIGROUP INC.: Shareholders Launch NY Lawsuit Over Enron Fraud
---------------------------------------------------------------
Citigroup Inc. faces a shareholder lawsuit filed in New York
Supreme Court on behalf of investors who were allegedly
defrauded in a "massive scheme of deception" when they bought
securities tied to the credit-worthiness of bankrupt energy
trader Enron Corporation, Reuters reports.
The suit is the latest in the numerous legal actions filed in
the wake of the energy giant's collapse in December 2001. The
suit alleges that Citigroup created a "fraudulent scheme" to
raise billions of dollars from the sale of notes called
"Yosemite" securities. The suit alleges fraud, breach of
contract and fiduciary duty, and negligence in the Yosemite
transactions, which it said took place between 1999 and 2001.
Plaintiffs include well-known distressed debt funds Angelo
Gordon & Co. and Appaloosa Investment LP.
The suit further alleges that Citigroup was aware that Enron's
debts were several billion dollars greater than the company
publicly disclosed between 1999 and 2001. The bank allegedly
wanted to reduce its own, rising exposure to Enron. Though
Enron was an investment-grade company until just four days
before it filed for Chapter 11 bankruptcy, the complaint said
Citigroup, because of undisclosed information it possessed about
Enron, knew that defaults were "likely." The suit alleges that
Citigroup used the funds raised to make "disguised" loans to
Enron "to reduce its own Enron credit risk, prop up Enron, cover
up Enron's failing financial condition and generate significant
fees in the process."
"Citibank thus found itself in a bind: It knew Enron was not
loan-worthy, yet if it failed to find Enron new sources of
financing, it ran the significant risk that Enron would collapse
before Citibank could recover the billions of dollars Enron owed
it," the complaint said, Reuters reports. "The Yosemite
transactions were Citibank's solution to its problem."
"This is going to be hard-ball litigation between experienced
players on both sides," John Coffee, professor of securities law
at Columbia University told Reuters. "This won't be quite as
attractive as a case as laid-off workers at Enron, but the
plaintiffs may have a plausible claim that that they didn't know
the critical facts about Enron (as well as) the seller of these
securities did."
A Citigroup spokeswoman denied any improprieties by the New
York-based global bank. "The purchasers of these notes are
among the largest and most sophisticated financial institutions
in the world, and we complied fully with all our obligations in
dealing with them," the spokeswoman told Reuters.
Bank of New York spokesman Jeep Bryant told Reuters the bank
filed the lawsuit because "as trustee, we have a responsibility
to act at the direction of the investors." He said the bank has
no financial interest in the Yosemite securities and the lawsuit
will not affect its financial results.
CREDIT SUISSE: Settles SEC Proceedings, Agrees To $1M Penalty
-------------------------------------------------------------
The Securities and Exchange Commission instituted a settled
administrative proceeding in the matter of Donaldson, Lufkin &
Jenrette Securities Corp., predecessor in interest to Credit
Suisse First Boston LLC (CSFB). The order finds that the firm
failed reasonably to supervise R. Christopher Hanna, a former
registered representative associated with CSFB. From at least
1997 to May 2001, Hanna defrauded customers by misappropriating
funds, and sending falsified account documents. By the time that
CSFB terminated Hanna on May 18, 2001, he had misappropriated
over $8 million from customers - transferring at least $3.2
million of that amount to himself via a currency exchange house
and his personal bank accounts in South America.
Without admitting or denying the findings of the Commission,
CSFB consented to a finding that it failed reasonably to
supervise Hanna with a view toward preventing his violations of
the federal securities laws, as is required by Section 15(b)(4)
of the Securities Exchange Act of 1934. As part of the action,
CSFB agreed to a censure and will pay a $1 million penalty. CSFB
has also agreed to undertake to retain an independent
consultant, not unacceptable to the Commission staff, to review
and evaluate the effectiveness of CSFB's supervisory and
compliance systems, policies and procedures designed to detect
and prevent violations of the federal securities laws
concerning:
(1) alternative mailing addresses;
(2) wire transfers to exchange houses;
(3) journals between unrelated accounts; and
(4) review of incoming and outgoing correspondence received
and sent by facsimile machine.
The Commission found the following failures at CSFB with respect
to its supervision of Hanna.
(i) The firm lacked an adequate system to enforce and apply
its policies and procedures concerning the use of
common mailing addresses.
(ii) CSFB did not have an adequate system for applying its
policies concerning the transfer of funds from customer
accounts to currency exchange houses.
(iii) The firm did not have policies or procedures in place
reasonably designed to detect and prevent unauthorized
inter-account journals.
(iv) CSFB did not have an adequate system to apply its
policies regarding the review of outgoing and incoming
correspondence received and transmitted by facsimile.
DPL INC.: Launches OH Fraud Suit Against Three Former Executives
----------------------------------------------------------------
Utility company DPL, Inc. filed a suit against three of its
former executives in Montgomery County Common Pleas Court, Ohio
alleging that they defrauded the Company of $33 million in
deferred pay last year, the Associated Press reports.
The suit names former chairman Peter H. Forster, former interim
chief financial officer Caroline E. Muhlenkamp and former
president and chief executive Stephen F. Koziar Jr. as
defendants. The suit alleges that the defendants "engaged in a
multi-step scheme" to gain quick payment of millions of dollars.
Mr. Forster, Ms. Muhlenkamp and Mr. Koziar stepped down in May
right after an outside law firm hired to investigate the
company's accounting and governance delivered a report that was
critical of top management.
The suit alleges the executives deceived the compensation
committee to receive approval to amend two compensation plans.
The action cost the company major tax deductions. The suit
asserts that the utility could have deducted 75 percent of the
$33 million from corporate taxes. As a result, the company's
net income was cut by more than $9 million.
The defendants also avoided paying the 10 percent early
withdrawal penalty, which cost the company another $3.3 million.
The actions also crippled DPL's ability to prepare a timely
annual report and audit of the companies' finances, the lawsuit
said. DPL has yet to file its annual report and its first- and
second-quarter earnings. The lawsuit asks that the former
executives return the money and pay substantial cash penalties.
Stanley Arkin, a New York attorney who represents Forster and
Muhlenkamp called the legal action "a big fat phony lawsuit," AP
reports. Forster and Muhlenkamp filed a lawsuit against DPL,
Dayton Power and Light, and MVE last month, saying they were
denied compensation and benefits they were entitled to after
they resigned. That suit was filed in Duval County, Fla., near
where Forster and Muhlenkamp live.
"We think (DPL is) trying to see if they can pre-empt
jurisdiction in some way," Mr. Arkin said. "We filed in Florida
because Pete and Caroline live there. And they feel they can get
a fair trial in the jurisdiction in which they live."
EASTMAN KODAK: Four Employees Lodge NY Race Discrimination Suit
---------------------------------------------------------------
Four former employees of Eastman Kodak Co. initiated a lawsuit
seeking class action status in U.S. District Court in Rochester
against film giant, Eastman Kodak Company, claiming they were
discriminated against because they are black, Newsday reports.
In their suit, the employees two men and two women, who are
seeking unspecified damages and a judicial order barring
discrimination contend that they were paid lower salaries and
got fewer promotions than their white counterparts.
Declining to directly comment on the suit, Kodak instead
reiterated that it does not tolerate discrimination or
harassment.
Minorities make up about 20 percent of Kodak's U.S. work force,
up from 12 percent in 1991. The company said it has also boosted
the number of minorities in senior management positions.
Some current and former Kodak employees earlier this month filed
a similar suit against the company, claiming Kodak's process of
distributing $13 million in raises to more than 2,000 women and
black employees reflects a pattern of bias and inequality.
ENBRIDGE GAS: High Court Orders Refund of Late Payment Penalties
----------------------------------------------------------------
The Supreme Court of Canada required Enbridge Gas Distribution
(EGD) to repay a portion of amounts paid to it by consumers as
late payment penalties from April 199, as it ruled in a class
action filed against the Company by its customers.
The total amount of late payment penalties billed, between April
1994 and February 2002 (when EGD's late payment penalty was
revised), was approximately $74 million of which a portion may
be eligible for repayment, the Company revealed in a filing with
the Canadian Securities and Exchange Commission. The amount
payable is not determinable at this time. The Supreme Court has
directed that a lower court determine the amounts payable.
A case conference was held before a judge of the Ontario Supreme
Court in mid August 2004 to discuss the remaining outstanding
issues following the Supreme Court's decision, including the
timing of a motion seeking certification of the action as a
class proceeding.
ENCANA CORPORATION: Faces U.S. Lawsuits Over Natural Gas Pricing
----------------------------------------------------------------
EnCana Corporation and its indirect wholly owned U.S. marketing
subsidiary, WD Energy Services Inc. faces a lawsuit filed by E.&
J. Gallo Winery in the United States District Court in
California and, along with other energy companies, are
defendants in several other lawsuits in California (many of
which are class actions) and three class action lawsuits filed
in the United States District Court in New York.
Most of the California class action lawsuits were transferred by
the Judicial Panel on Multidistrict Litigation on a consolidated
basis to the Nevada District Court and all of the New York
lawsuits were consolidated in New York District Court by the
plaintiff's application.
The California lawsuits relate to sales of natural gas in
California from 1999 to the present and contain allegations that
the defendants engaged in a conspiracy with unnamed competitors
in the natural gas and derivatives market in California in
violation of U.S. and California antitrust and unfair
competition laws to artificially raise the price of natural gas
through various means including the illegal sharing of price
information through online trading, price indices and wash
trading.
The New York lawsuits claim that the defendants' alleged
manipulation of natural gas price indices resulted in higher
prices of natural gas futures and option contracts traded on the
NYMEX from 2000 to 2002.
The Gallo complaint claims damages in excess of $30 million,
before potential trebling under California laws. A motion by
the Company and WD to dismiss the Gallo complaint on the basis
that the Federal Energy Regulatory Commission had exclusive
jurisdiction regarding this matter was not granted.
FLORIDA: Court Allows Miami-Dade Strip-Search Lawsuit To Proceed
----------------------------------------------------------------
U.S. District Judge Adalberto Jordan allowed a class action
against Miami-Dade County and several county corrections
officials for alleged unconstitutional and "invasive" strip-
searches to proceed, the Sun-Sentinel.com reports.
Three out-of-state female activists, later joined by two women
from South Florida, one from Aventura and another from Miami
Beach who were arrested during November demonstrations against a
free-trade meeting sued the county in March, alleging that
corrections workers performed cavity inspections of women before
they are formally charged with crimes.
In his ruling the judge stated that there was a substantial
likelihood that strip-searches would injure female arrestees in
similar circumstances in the future. He denied the county's
motion to dismiss the suit.
The judge, however, pointed out that his ruling does not stop
corrections workers from strip-searching arrestees when they
have a reasonable suspicion that a person is hiding drugs,
weapons or other contraband items in jail. His decision means
the women's allegations are being taken seriously and that the
practice could ultimately be banned, lawyers for the women say.
GLAXOSMITHKLINE PLC: Denies Accusations, But Settles Paxil Suit
---------------------------------------------------------------
GlaxoSmithKline Plc (GSK.L) reached a settlement with New York
Attorney General Eliot Spitzer's office, over charges that the
Company withheld negative information about its antidepressant
drug Paxil, Reuters reports.
AG Spitzer filed the lawsuit in June, alleging the Company
concealed studies that showed Paxil may not work when used to
treat children and could caused suicidal behavior. The Company
allegedly conducted at least five studies on the use of Paxil in
children and adolescents, but released only one of the studies.
The Company denies the charges, but settled the lawsuit to avoid
costly and time-consuming litigation. In the settlement, the
Company agreed to disclose information on all clinical studies
of its drugs and to pay $2.5 million and will register the
results of clinical trials, detailing safety and drug
effectiveness, for all studies done after December 27, 2000, and
relevant earlier studies.
GlaxoSmithKline told Reuters that it would reveal details of its
clinical studies. Spokeswoman Nancy Pekarek said the settlement
gives the company a formal disclosure timetable. Summaries of
the clinical studies are supposed to be posted online between
now and December 31, 2005, AG Spitzer told Reuters.
GlaxoSmithKline published its Paxil studies on its corporate Web
site in June in response the public concerns, the company said.
GlaxoSmithKline's summaries of clinical studies completed after
the settlement for drugs already receiving approval will be
posted online no later than 10 months after the drug is first
marketed, Spitzer told Reuters. GlaxoSmithKline will also
advertise the availability of the clinical trials register in
major medical journals, he added.
GLOBAL BUILDING: Settles Target Janitors' Overtime Wage Lawsuit
---------------------------------------------------------------
Contractor Global Building Services agreed to pay unpaid
overtime wages for hundreds of janitors at Target Corporation
stores in six states, the Associated Press reports.
The U.S. Department of Labor said that 775 janitors, more than
600 of them in California, worked six and seven cleaning shifts
a week, but failed to receive overtime pay. Federal law
requires time-and-a-half pay for work beyond 40 hours a week.
The Los Angeles-based company agreed to pay $1.9 million in
missed overtime wages for work performed over about two years
ending February 11, 2003.
Target Corporation was not part of the federal investigation,
Labor Department spokeswoman Deanne Amaden told AP. Global
Services was assessed no penalties, which is common for first
offenses, she said. Individual workers were shorted between $34
and $5,500. The affected janitors worked in California, Texas,
Arizona, New Mexico, Nevada and Louisiana.
"Target does not tolerate unethical business practices in any
form, including on the part of our vendors," the company said in
a statement Wednesday night. "We are in the process of
collecting more information and will be taking appropriate
action."
HOME DEPOT: Reaches Settlement For EEOC Race, Sex Bias Lawsuit
--------------------------------------------------------------
Home improvement store chain Home Depot agreed to settle for
US$5.5 million a discrimination suit filed against it by the
United States Equal Employment Opportunity Commission, BBC News
reports.
The suit was filed on behalf of the Company's staff in Colorado,
alleging that the Company fostered a "hostile work environment
based on gender, race and national origin." The Company
allegedly retaliated against staff who complained of
discrimination.
The Company denied wrongdoing, saying it has "a zero tolerance
policy" towards discrimination, but wished to avoid a long and
expensive court case, BBC News reports. The settlement provides
for $3 million to cover complaints brought by 38 staff in
Colorado stores and creates a $2.5 million relief fund for
others who were harmed, Reuters news agency reports.
Home Depot's readiness to settle won plaudits from EEOC attorney
Joseph Mitchell. "We commend Home Depot for working co-
operatively with us to resolve this case," he told BBC News.
HPL ANTITRUST: Suit Settlement Hearing Set September 30, 2004
-------------------------------------------------------------
The United States District Court for the Southern District of
New York will hold a fairness hearing for the proposed
settlement in the matter In Re High Pressure Laminates Antitrust
Litigation on behalf of all persons who directly purchased high
pressure laminates ("HPL") in the United States from any of the
Defendants International Paper Company, Panolam Industries
International, Inc., Pioneer Plastics Corporation, Premark
International, Inc., and Wilsonart International, Inc. or from
Formica Corporation or any subsidiary thereof, at any time
during the period from January 1, 1994 to June 30, 2000.
The court has scheduled a settlement hearing, which will be held
on September 30, 2004 at 2:00 p.m., before the Honorable Charles
L. Brieant, United States District Judge, in Courtroom No. 218
at the United States Courthouse, 300 Quarropas Street, White
Plains, New York.
For more details, contact The Furth Firm LLP by Mail: 225 Bush
Street, 15th Floor, San Francisco, CA 94104 OR Heins Mills &
Olson, P.L.C. by Mail: 3550 IDS Center, 80 South Eighth Street,
Minneapolis, MN 55402 OR Gold Bennett Cera & Sidener LLP by
Mail: 595 Market Street, Suite 2300, San Francisco, CA 94105 OR
Much, Shelist, Freed, Denenberg, Ament & Rubenstein, P.C. 191
North by Mail: Wacker Drive, Suite 1800, Chicago, IL 60601
IMPERIAL TOBACCO: Ontario Court Dismisses Smokers Injury Lawsuit
----------------------------------------------------------------
The Ontario Court of Justice dismissed the statement of claim
filed against Imperial Tobacco Limited was served with a
statement of claim on behalf of several individual plaintiffs.
The suit also names as defendants two major Canadian tobacco
manufacturers.
The plaintiffs alleged, among other things, that they were
addicted to tobacco, that the defendants conspired to withhold
information on addiction and manipulated levels of nicotine in
tobacco to make it addictive, and that they were entitled to
damages for losses said to be consequential to the alleged
addiction.
The plaintiffs sought awards of $1 million each, as well as
punitive damages, and sought to have the suit certified as a
class action. The scope of the purported class was unclear but
if plaintiffs had succeeded in having the suit certified, it
could have involved a large but indeterminate number of people.
The certification hearing occurred in January 2004. On February
5, 2004, the Ontario Court of Justice dismissed the application,
on the basis that the class definition was inappropriate, that
the individual issues outweighed the common issues, and that a
class action was not a fair, efficient and manageable means of
resolving the claims of the individual class members. Although
the plaintiffs publicly announced their intention to appeal, the
deadline for appeal expired in March 2004, and no formal appeal
was filed.
IMPERIAL TOBACCO: BC Court To Mull Suit Certification in October
----------------------------------------------------------------
The Supreme Court of British Columbia is expected to hear
arguments for class certification of the lawsuit filed against
Imperial Tobacco in October 2004.
The legal proceedings were filed on May 14, 2003, seeking to
certify a class action on behalf of British Columbians who
purchased the Company's cigarettes bearing "Light" and "Mild"
descriptors on the packaging. The motion alleges that the
Company engaged in "deceptive trade practices" contrary to the
provincial Trade Practices Act in the marketing of its cigarette
brands with these descriptors. The proceedings seek to enjoin
the Company from using these descriptors on its cigarette
brands, as well as the compensation of all amounts spent by the
proposed class on the said products, and the disgorgement of
profits from the sale of these products.
On April 30, 2004, the Corporation filed its Statement of
Defense and also filed a "third party notice" against the
Attorney General of Canada. The third party notice seeks to
force the federal government to participate in the case, and to
have the federal government reimburse to the plaintiffs any
amount that Imperial could eventually be condemned to pay.
INOVA HEALTH: Denies Charges Of Price-Gouging, Hoarding Profits
---------------------------------------------------------------
The Northern Virginia hospital chain, Inova Health System
defended its record of providing care to uninsured patients
after a federal class-action lawsuit was filed that accused them
of price-gouging and hoarding profits, the Washington Times
reports.
Attorneys for the hospital chain denied the allegations and
stated, "We believe the lawsuit is without merit and we plan to
vigorously defend it. Throughout our long history, Inova has
cared for the people of Northern Virginia regardless of their
ability to pay."
According to the suit, Fall Church-based Inova, which operates
five hospitals in the region, charged uninsured patients higher
rates than patients who had insurance.
Since June, more than 40 hospital systems around the country
have been named in lawsuits accusing them of setting higher
rates for uninsured patients, which is being spearheaded by
Richard Scruggs, the Mississippi lawyer who led multibillion-
dollar litigation against the tobacco industry in the 1990s.
According to attorney Scruggs, Inova and others use "aggressive
and humiliating collection techniques" to collect payment from
uninsured patients while accumulating millions of dollars in
assets that should be used for their care.
However, Richard Davidson, president of the American Hospital
Association, has called the suits an "assault on community
hospitals."
INTERPUBLIC SECURITIES: Settlement Hearing Set October 22, 2004
---------------------------------------------------------------
The United States District Court for the Southern District of
New York will hold a fairness hearing for the proposed
settlement in the matter In Re Interpublic Securities Litigation
on behalf of all persons who purchased or acquired IPG common
stock between October 28, 1997 and October 16, 2002 (the "Class
Period") (inclusive) (the "Purchaser Class"), or acquired shares
of IPG common stock in exchange for shares of True North
Communications common stock pursuant to IPG's Form S-4
registration statement filed on April 19, 2001 and amended on
May 9, 2001 (the "True North Class"), you may be entitled to
receive a payment from the settlement of the securities class
action (the "Securities Class Action") (the Purchaser Class and
the True North Class are referred to as the "Class").
The Court will hold a Fairness Hearing at 3:00 p.m. on October
22, 2004, at the United States Court for the Southern District
of New York, The Daniel Patrick Moynihan Courthouse, 500 Pearl
Street, New York, New York, in Courtroom 11B.
For more details, contact the Settlement Administrator by Mail:
In re The Interpublic Group of Companies Securities Litigation,
c/o The Garden City Group, Inc., Claims Administrator, P.O. Box
9000 #6218, Merrick, NY, 11566-9000 or by Phone: 1-866-808-3583
OR For the Securities Class Action: Katharine M. Ryan or Kay E.
Sickles of Schiffrin & Barroway, LLP by Mail: Three Bala Plaza
East, Suite 400, Bala Cynwyd, PA 19004 by Phone: (610) 667-7706
or by E-mail: info@sbclasslaw.com OR For the Derivative Action:
Larry Paskowitz of Paskowitz & Associates by Mail: 60 East 42nd
Street, 46th Floor, New York, NY 10165 by Phone: (212) 685-0969
or by E-mail: classattorney@aol.com
ISLE OF CAPRI: Appeals Court Affirms Suit Certification Denial
--------------------------------------------------------------
The United States Ninth Circuit Court of Appeals denied the
appeal of a lower court decision refusing class certification
for a lawsuit filed against one of Isle of Capri Casinos, Inc.'s
subsidiaries, and numerous manufacturers, distributors and
gaming operators.
The suit, filed in Las Vegas, Nevada, alleges that the
defendants violated the Racketeer Influenced and Corrupt
Organizations Act by engaging in a course of fraudulent and
misleading conduct intended to induce people to play their
gaming machines based upon a false belief concerning how those
gaming machines actually operate and the extent to which there
is actually an opportunity to win on any given play. The suit
seeks unspecified compensatory and punitive damages.
In June 2002, the district court denied the Motion for Class
Certification. This decision was appealed to the United States
District Court for the Ninth Circuit.
JAPAN: Former South Korean Leprosy Patients Sue For Compensation
----------------------------------------------------------------
The city of Tokyo, Japan faces a lawsuit filed on behalf of 111
64- to 97-year-old former South Korean leprosy patients who were
forcibly quarantined during Japan's colonization of the Korean
peninsula that ended in 1945, the Associated Press reports.
According to Japan's Health Ministry, isolated countryside
sanitariums on the Korean peninsula housed an estimated 6,000
leprosy patients during the occupation. The suit, filed in
Tokyo District Court, alleges that patients were forced to
undergo sterilization and abortions, and to do hard labor during
their confinement, Kyodo News reported.
Last week, the Japanese Health Ministry rejected claims for
compensation filed by 117 South Koreans, who were formerly
patients at the Sorokdo Hospital - a leper colony on an island
near the Korean peninsula's southwestern tip. The patients
alleged they were forced to live in the colony and sought
compensation between December 2003 to March 2004. Six of the
plaintiffs have since died.
In 1996, Tokyo repealed the law that forced the patients to live
in the colonies, and allowed patients to leave. In January
2002, Japan officially apologized for the policy. While those
forced into quarantine in Japan between 1909-96 are eligible for
compensation from the government under a 2001 law - regardless
of nationality or where they live now - those housed in
facilities outside of Japan are not. The Korean plaintiffs are
demanding the same amount of compensation as given to those held
in Japanese sanitariums - between $72,000 to $126,000 per
person, AP reports.
MICROSOFT CORPORATION: EU Initiates Probe of ContentGuard Deal
--------------------------------------------------------------
The European Commission initiated an in-depth probe into plans
by software giant Microsoft Corporation and media giant Time
Warner Inc. to acquire joint control of U.S. ContentGuard
Holdings, Inc., the Associated Press reports.
U.S. ContentGuard Holdings, Inc. makes technology to protect
digital files from illegal copying, which is becoming
increasingly important for movie and video makers, recording
companies and software firms, in the face of increasing piracy.
Japan's Sony Corporation licensed ContentGuard's DRM technology
in 2002. Microsoft, Time Warner and ContentGuard have purchased
most of the stake held in ContentGuard from Xerox Corporation
which had provided much of the company's basic technology.
Xerox is retaining a small equity investment in ContentGuard.
Microsoft and Time Warner plan to go 50-50 in ownership of
ContentGuard.
"The companies have been informed that the Commission has seen
the need to start an in-depth investigation into this joint
acquisition," competition spokeswoman Amelia Torres told a daily
news conference, according to AP. Plans by the Commission for
the in-depth probe were reported by Reuters on Tuesday.
The European Union executive, which regulates mergers and
takeovers, said a preliminary review had revealed that the deal
could create or boost a dominant position by Microsoft in the
market for so-called Digital Right Management. During the in-
depth probe, the Commission also plans to examine concerns that
the acquisition could lead to the vertical integration of
Microsoft in other markets, it said. The opening of an in-depth
merger investigation into the deal does not prejudge the
Commission's final decision, which must be reached by January 6,
2005 at the latest, the EU executive said, AP reports.
MICROSOFT CORPORATION: CA Cities, Counties Lodge Antitrust Suit
---------------------------------------------------------------
The city and county of San Francisco initiated a class action
lawsuit in San Francisco Superior Court against software
juggernaut Microsoft Corporation alleging that the company is
using it's monopoly power to deny government agencies free
choice in software products and charges high prices, the ZDWire
Plus reports.
The suit contends that Microsoft's tactics caused harm to
government users of its Windows operating system and Word and
Excel software. According to Dennis Herrera, attorney for the
city of San Francisco, "It's anticompetitive, it's predatory,
and it denies consumers, and in this case taxpayers, the
benefits of innovation that a free marketplace should provide."
The city and county of Los Angeles, Santa Clara County, San
Mateo County and Contra Costa County are all taking part in the
class action.
The same law firm, Townsend and Townsend and Crew, LLP, which
argued the previous civil action against Microsoft and won a
$1.1 billion award for California consumers, is representing
California counties and cities in the latest legal maneuver.
According to Stacy Drake, a spokeswoman for Redmond, Washington-
based Microsoft, the company has not yet seen the complaint
against, but she reiterated that Microsoft's policies have been
fair. She adds, "We value our relationship with these cities and
are grateful for the opportunity to provide them with software
at very reasonable prices."
Daniel Furniss, a litigation partner for Townsend and Townsend
and Crew, LLP says "When the (previous California) settlement
was announced, we had governmental agencies asking for their
part of the recovery. Having seen what has happened nationwide,
they have a feeling that money is owed."
The lawsuit also comes as Microsoft is facing increased
competition by open-source groups and their community-developed
software, such as Linux.
MOJAVE VALLEY: SEC Lodges Fraud Complaint V. NV Bond Offering
-------------------------------------------------------------
The Securities and Exchange Commission filed fraud charges
against Palm Springs developer Mojave Valley Resort, Inc. (MVRI)
and co-owner Mark A. Temple stemming from a municipal bond
offering. According to the Commission's complaint, MVRI is the
developer of a casino and housing project on Indian land owned
by the Fort Mojave Indian Tribe near Laughlin, Nevada. MVRI
financed the development project through a $12.75 million
municipal bond offering in late 1999. The Commission charges
that MVRI and Temple falsely stated in the offering materials
that the bonds being issued to investors were secured by deeds
of trust on the Tribal property.
The Commission's lawsuit, brought in federal district court in
the Central District of California, charges MVRI and Temple with
making false statements in the offering materials in violation
of Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder, and Section 17(a) of the Securities Act of
1933. Without admitting or denying the allegations, MVRI and
Temple have agreed to settle this action by paying disgorgement
of $1 and a civil penalty of $40,000. MVRI and Temple also
consented to a judgment enjoining them from violating Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder, and Section 17(a) of the Securities Act of 1933. The
action titled, SEC v. Mojave Valley Resort, Inc. and Mark A.
Temple, Case No. ED CV 04-1061 VAP] (LR-18852).
NVE PHARMACEUTICALS: Officials Launch Suit Over Herbal Products
---------------------------------------------------------------
Sussex County, New Jersey-based NVE Pharmaceuticals, Inc. and
its President Robert Occhifinto faces a lawsuit filed by state
consumer affairs officials, alleging that the Company misled
consumers about its weight-loss products that contained the now-
banned herbal stimulant ephedra, the Associated Press reports.
The suit alleges the Company advertised its ephedra-based
supplements as safe, despite receiving complaints from consumers
about a range of side effects, including high blood pressure,
rapid heartbeat, chest pains, seizures, abnormal bleeding,
kidney problems, and insomnia. The Company is best-known for
its Stacker 2 line of supplements.
The suit seeks civil penalties and restitution for affected
consumers. It also seeks to bar the company from making false
and misleading claims about the safety and effectiveness of its
products.
The company's attorney, Terry Gaffney, declined comment because
he had not yet seen the lawsuit, AP reports.
Before the April 12 ruling, NVE marketed 80 products containing
ephedra, state officials told AP. The company still makes
Stacker 2 Ephedra-Free, a caffeine-based weight-loss supplement.
Ephedra was once widely used for weight loss and bodybuilding.
The stimulant, paired with other herbs, acts like amphetamine in
the body, speeding up the heart rate and constricting blood
vessels. Ephedra has been linked to 155 deaths, including Steve
Bechler, a pitching prospect for the Baltimore Orioles.
NELLCOR PURITAN: Recalls CapnoProbes Due To Bacteria Content
------------------------------------------------------------
Nellcor Puritan Bennett (Tyco Healthcare/Mallinckrodt) is
conducting a nationwide recall of all of its CapnoProbes, a
device similar to an electronic thermometer that is used by
hospitals to measure the carbon dioxide in patients' tissues.
Each probe is packaged in a metal canister filled with a saline
solution and sealed in a foil envelope labeled as non-sterile.
All of the CapnoProbes were manufactured at Nellcor's facility
in Tijuana, Mexico. The probe and associated saline contain the
bacteria Burkholderia Cepacia and other opportunistic pathogens
that can cause serious infections, usually in persons who have
decreased resistance to infection.
FDA first learned of a potential problem with the product when
notified by the Texas Department of Health on August 18.
Positive cultures were found in at least 11 patients in the
pediatric intensive care units of Childrens Medical Center in
Dallas. An association with these specific culture findings and
patient outcomes has not been established at this time. On
August 19, FDA sent an investigator to Nellcor Corporate
headquarters in Pleasanton, Calif., to conduct an inspection,
which is ongoing.
On August 24, Nellcor notified its customers that they were
recalling all lots of the CapnoProbe SLS-1 Sublingual Sensors
and asked hospitals to return any unused inventory. The firm
said the probe may pose a hazard to patients with compromised
immune systems. Both FDA and Nellcor Puritan Bennet are
continuing their investigations.
Healthcare facilities that are aware of deaths or injuries
related to use of the CapnoProbe should report them to Nellcor
and to the FDA through the MedWatch program at
/www.fda.gov/medwatch/index.html
Physicians and patients can obtain further details about the
recall from Nellcor at 1-800-635-5267, option 3.
READER'S DIGEST: Faces CA Lawsuit Over Unsolicited Subscriptions
----------------------------------------------------------------
Reader's Digest faces a class action filed by a group of former
subscribers in the United States District Court in Santa Ana,
California, over getting letters seeking payment for
subscriptions they didn't want and never asked for, the Journal
News reports.
The suit seeks unspecified damages and a court order barring the
company from seeking subscription renewals in the form of
"reminder bills" and continued delivery of issues of the
magazine after the original subscription elapsed. It identifies
11 former subscribers in six states as plaintiffs.
In an e-mail, Reader's Digest spokesman William Adler said he
had no information on the complaint, the Journal News reports.
REPUBLICAN PARTY: Ex-Field Directors Files Race Bias Suit in FL
---------------------------------------------------------------
The Florida Republican Party faces a federal lawsuit filed in
Tampa, Florida by a former field director who was allegedly
discriminated against because of her race, the Associated Press
reports.
Nadia Naffe filed the suit, alleging that she was fired from her
job after she complainted about being assigned to work with
black organizations, events and issues. Miss Naffe, 25, was the
only black field director at that time, and was told that "you
understand your people."
According to the suit, Ms. Naffe was called "insubordinate" and
not a "team player." She contacted the U.S. Equal Employment
Opportunity Commission, and was soon fired after. The suit also
names as defendants the Republican National Committee and Bush-
Cheney '04.
A message seeking comment from the Florida Republican Party was
not immediately returned, AP reports. Christine Iverson, a
spokeswoman for the RNC, said Ms. Naffe has never been an
employee of the committee.
"Instead of true conservatism, she found herself faced with
discrimination and intolerance. And instead of compassion, she
found retaliation," one of Naffe's lawyers, Cyrus Mehri of
Washington, told AP.
SHELL/ROYAL DUTCH: KPMG, PricewaterhouseCoopers Drawn Into Suit
---------------------------------------------------------------
Bernstein Liebhard & Lifshitz, the Wall-Street law firm leading
the class action lawsuits against Shell, is preparing to file an
amended complaint that targets the Anglo-Dutch oil giant's
external auditors, KPMG and PricewaterhouseCoopers, over their
role in the overbooking of reserves, The Scotsman reports.
The law firm, which is leading the class action on behalf of
individual investors, stated that it was looking at the role of
auditors KPMG and PricewaterhouseCoopers in the scandal that
wiped œ2.9 billion off Shell's market capitalization in one day.
According to Stanley Bernstein, a senior partner at the firm,
"We will be filing an amended complaint by mid-September. We are
also aggressively looking at the role [of the auditors]."
Shell shocked investors in January, when it said that it had
overstated its proven reserves by 3.9 billion barrels, or 20 per
cent.
SILTRONIC CORPORATION: Offers $5.75M To Settle OR Overtime Suits
----------------------------------------------------------------
The Siltronic Corporation offered to settle two class-action
lawsuits by shelling out $5.75 million to more than 1,000
current and former employees for time spent putting on and
taking off "bunny suits" and uniforms before entering the
company's dirt-free work rooms in Portland, The Oregonian
reports.
The terms of the proposed settlement, which was filed in U.S.
District Court, would require Germany-based Siltronic to pay
nearly $3.6 million to 1,091 workers at an average of $3,300
each. Meanwhile, Lead plaintiffs Michael Ballaris, Kim Bui-Le,
Hao Duong and Toan Diep will share an $125,000 incentive award,
and their attorneys, Bailey, Pinney & Associates of Tualatin,
will get $2 million in fees and legal costs.
Industry officials say, it's unclear what impact the Siltronic
settlement, if approved, will have on high-tech industry, which
employs thousands in Oregon. Other such industries like the
Intel Corporation through it's Oregon spokeswoman, Diana Daggett
stated that, "We pay our manufacturing technicians for gowning
time," adding that they have done so "for a long time."
The settlement proposal ends four years of legal battles between
Siltronic and its workers. It follows a May ruling by the U.S.
9th Circuit Court of Appeals that concluded Siltronic owed
workers overtime for time spent donning the required protective
gear.
The lawsuits, the first filed in 2000, claim the company
violated federal and state wage-and-hour laws by failing to
properly pay employees for gowning done before and after working
in the company's clean rooms.
Siltronic and plaintiffs' lawyers reached their preliminary
settlement agreement July 22, 2004 with the help of mediator
Randall Wulff, a California attorney chosen to lead a panel
determining losses from the Sept. 11 attacks on the World Trade
Center.
Court records show that the proposed settlement covers workers
employed by Siltronic from November 1997 to August 2001 and that
aside from the lead plaintiffs, class-action members will also
receive from $670 to $8,375.
The settlement is to be approved on September 23, 2004 by state
and federal judges, unless class-action members object.
SMARTFORCE PLC: Suit Settlement Hearing Set September 29, 2004
--------------------------------------------------------------
The United States District Court for the District of Hampshire
will hold a fairness hearing for the proposed partial settlement
valued at $30.5 million in the matter of In Re Smartforce
(SkillSoft) PLC Securities Litigation on behalf of all
individuals who bought or acquired American Depository Shares
("ADSs") of SmartForce PLC from April 27, 1999 through September
6, 2002; exchanged common stock of SkillSoft Corporation for
ADSs of SmartForce PLC in connection with the merger between
SmartForce PLC and SkillSoft Corporation on September 6, 2002
(the "Merger"); or bought or acquired SmartForce PLC and/or
SkillSoft PLC ADSs from September 6, 2002 through and including
November 18, 2002, you could get a payment from the Class Action
Settlement described below.
The Court has scheduled a fairness hearing, which will be held
before the Honorable Paul J. Barbadoro in the United States
District Court for the District of Hampshire, Warren B. Rudman
U.S. Courthouse, 55 Pleasant St., Concord, New Hampshire 03301
at 2:30 pm on September 29, 2004.
For more details, contact Glen DeValerio, Kathleen M. Donovan-
Maher or Nicole R. Starr of Beerman DeValerio Pease Tabacco Burt
& Pucillo by Mail: One Liberty Square, Boston, MA 02109 by
Phone: (800) 516-9926 or visit their Web site:
http://www.bermanesq.comOR Max W. Berger, Jeffrey N. Leibell or
Joseph A. Fonti of Bernstein Litowitz Berger & Grossman LLP by
Mail: 1285 Avenue of the Americas, New York, NY 10019 by Phone:
(800) 380-8496 or visit their Web site: http://www.blbglaw.com
OR SmartForce PLC Securities Litigation by Mail: c/o Complete
Claim Solutions, Inc. - P.O. Box 24768, West Palm Beach, FL
33416 or visit their Web site:
http://www.completeclaimsolutions.com
SR TELECOM: Pays Settlement For Consolidated Securities Lawsuit
---------------------------------------------------------------
SR Telecom USA (formerly Netro Corporation) fully paid the
$590,000 settlement of a consolidated securities class action
filed against them, by several of SR Telecom USA's (then
Netro's) stockholders against Netro and Netro's directors
claiming that the directors breached their fiduciary duties to
Netro and its stockholders allegedly by failing to properly
value and obtain the highest price reasonably available for
Netro.
The claim also alleges that Netro favored SR Telecom over
potential competing acquirers and Netro's directors engaged in
self-dealing in connection with the merger. The cases were
consolidated and the parties have reached an agreement to settle
this lawsuit.
Included in the terms of settlement is a proposed payment of
US$590,000 to cover plaintiffs' attorneys' fees and expenses for
prosecuting the lawsuit. On January 6, 2004, the court issued
an order preliminarily approving the proposed settlement,
providing for notice to be given to the settlement class and
scheduling a hearing for final approval on April 13, 2004, at
which the court tentatively approved the settlement but
requested further information about the plaintiffs' request for
attorneys' fees. The Court issued final judgment on May 3, 2004
confirming the settlement of US $590,000, which was paid on May
12, 2004.
TRI-STATE CREMATORY: Plaintiffs Ambivalent About Preservation
-------------------------------------------------------------
Family members whose relatives' bodies were taken to Tri-State
Crematory have mixed feelings about preservation of the land
where hundreds of uncremated bodies were found strewn about,
sources familiar with the suit told the Associated Press.
"I'd like to see that place torn down, sure," said Tim Mason,
whose mother's body was taken to the crematory. "But all
(preservation) does is prevent anyone from continuing to look
for those still missing." Another Plaintiff, Charlotte
Boatwright, whose mother and husband's uncremated bodies were
discovered on the property in Noble, Goergia, said she's not
sure how she feels about preserving the site. She also adds, "At
this point, I don't know if there is anything they can do that
will make a difference. I think people just want to know that
this man has been brought to justice."
Under the terms of the $80 million class action settlement,
which was reached by the attorneys of both the Plaintiffs and
former crematory operator Brent Marsh and the estate of his late
father last Thursday, the 11 acre, northwest Georgia property
where 334 uncremated remains were discovered in February 2002
will be preserved to honor those whose bodies were discovered
stacked in buildings and buried in earthen pits.
According to Plaintiffs' lawyer Robert Smalley outbuildings on
the property where bodies were discovered will be torn down. He
also states, "This is a very important part of the settlement to
remember those whose bodies were discovered there."
Chattanooga lawyer Stuart James, who is representing the Marsh
family in the federal case, said that either trees will be
planted or the property will be allowed to grow wild.
The land though will still belong to Mrs. Clara Marsh where the
family's home is located and where the Marsh family continues to
reside on.
The agreement was in addition to a $36.5 million settlement
reached in March with funeral homes that did business with Marsh
family-owned Tri-State. Mr. Marsh though is still facing an
October criminal trial on 787 felony counts related to
discarding bodies at the crematory.
UNITED STATES: Food Companies Push For Obesity Suit Protection
---------------------------------------------------------------
According to the National Conference of State Legislatures, laws
to protect restaurants and food companies against lawsuits by
people who claim the meals or snacks made them fat have been
enacted in a dozen states this year, the Associated Press
reports.
The laws called "cheeseburger bills" bar people from seeking
damages in court from food companies such as weight gain and
associated medical conditions, including heart disease and
diabetes.
Supporters contend that the bills safeguard businesses from
having to pay to defend themselves against frivolous suits, an
argument, which opponents countered by pointing out that the
claims often are valid and ought to be heard in court.
However, supporters of the bills citied two cases against
McDonald's that accused the company of causing obesity in
thousands of children. The case was eventually dismissed by U.S.
District Judge Robert Sweet in New York who stated in his ruling
that consumers ought to know that eating lots of fast food can
make them fat and that they cannot ask courts to "protect them
from their own excesses."
That ruling has not stopped lawyers from holding conferences on
how to win such claims. Also, the possibility of a legal defeat
haunts the food industry, whose leaders say they should not be
held responsible for people's eating decisions.
Some of the laws passed this year include a Washington state law
that prohibits people from suing food manufacturers, sellers and
advertisers based on claims arising from people's weight gain,
obesity, or related health conditions. According to Democratic
state Rep. Patricia Lantz, a trial lawyer who heads the House
Judiciary Committee in her state, the law, backed by the state
restaurant association, keeps the responsibility for eating
where it belongs.
Similar bills have also won approval in other states however
efforts at passing a national shield have abated in Congress.
The national bills include one sponsored by Rep. Ric Keller, R-
Fla., was passed by the House. A second, sponsored by Sen. Mitch
McConnell, R-Ky., is before a Senate Judiciary Committee
subcommittee. Their prospects though of being passed are not so
good, since time is running out on the congressional calendar
and lawmakers are facing re-election in November.
The issue is politically charged. Republicans say companies need
protection from greedy lawyers. Democrats say that the courts
should decide whether the cases are worth hearing.
UNITED STATES: Judge Dismisses Antitrust Suit V. NRMP, Sponsors
---------------------------------------------------------------
In an unprecedented ruling that will reshape graduate medical
education through court intervention, U.S. District Judge Paul
Friedman of the District of Columbia dismissed an antitrust
lawsuit originally filed against the National Resident Matching
Program, its sponsoring organizations and 29 teaching hospitals,
the American Medical News reports.
The ruling followed the passage of federal legislation this
summer aimed at shielding the Match from this lawsuit as well as
any future antitrust claims.
Attorney Sherman Marek, who is representing the three former
medical residents who filed the class action suit two years ago,
stated that his clients were disappointed but did not consider
the suit to be a futile effort and that his clients were also
deliberating whether to appeal. He further states, "I believe
the change in the Accreditation Council for Graduate Medical
Education (ACGME) work-hour guidelines stemmed from this action.
Having said that, more remains to be done both in obtaining fair
wages and safe work hours."
Plaintiffs in the case, Jung et al. v. AAMC et al., claimed the
structure of the Match violated antitrust laws by requiring all
U.S. medical graduates to participate in order to obtain a
residency. They also claimed that residents' salaries were
artificially low and work hours overly long because the
structure of the program made it impossible for residents to
negotiate these issues.
The ACGME announced its decision to cap medical residents' hours
at an average of 80 hours a week shortly after the lawsuit was
filed. However, those involved with redesigning the work-hour
rules said changes had been under consideration well before the
lawsuit was filed.
According to attorney Thomas Campbell, representing the NRMP its
officials were pleased by the outcome. He further adds, "The
legislation is very helpful to the graduate medical education
portion of the economy."
VAN WAGONER: SEC Settles Fraud Suit, Owner Assessed $41.8T Fine
---------------------------------------------------------------
The Securities Exchange Commission filed settled administrative
and cease and desist proceedings against Van Wagoner Capital
Management (VWCM), the investment adviser to the Van Wagoner
Funds, and Garrett Van Wagoner, the owner and manager of VWCM.
The Commission's order finds that Van Wagoner and VWCM committed
fraud and other violations when they misstated the valuations of
certain securities held by the Funds. The Commission's order
also finds that Van Wagoner and VWCM misled the Van Wagoner
Funds' shareholders about the size and value of the Funds'
investments in illiquid securities.
From 1999 through 2001, Van Wagoner invested for the Funds in
illiquid securities issued by private companies, which could not
be sold readily. Although the Funds' disclosures generally
limited these investments to 15 percent of the portfolios, Van
Wagoner invested in illiquid securities in ways that violated
the limitations. Also, contrary to law and to representations
that the Funds made, in late 2000 and at times in 2001, Van
Wagoner did not fair value the Funds' private equity securities
in good faith, which caused the net asset value, or market
price, of the Funds' shares to be incorrectly stated.
In settling with the Commission, Van Wagoner and VWCM have
agreed, without admitting or denying the Commission's
allegations, to be censured and to cease and desist from
committing or causing violations of Sections 206(1) and 206(2)
of the Investment Advisers Act and Section 17(j) of the
Investment Company Act and Rules 17j-1(c)(2) and 22c-1. They
have also agreed to pay, jointly and severally, an $800,000
civil penalty.
Under the settlement, Van Wagoner has agreed for a period of
seven years, commencing Dec. 31, 2004, not to serve as an
officer or director of any mutual fund and to abstain from
recommendations about private equity valuations or purchases,
and from liquidity determinations for the Funds. VWCM will also
hire an independent consultant to report on the procedures for
valuing private investments and determining liquidity.
The Commission also instituted settled administrative
proceedings against two persons formerly associated with the
Funds. Robert Colman, a former director, has agreed without
admitting or denying the allegations to cease and desist from
committing or causing violations of Rules 17d-1(a) and 17j-1(d)
under the Investment Company Act, based on private investments
he made while a director. He will also pay a $25,000 civil
penalty and disgorge $16,800 in directors' fees and interest.
Audrey Buchner, a former equity analyst of VWCM, has agreed
without admitting or denying the allegations to cease and desist
from committing or causing violations of Section 17(j) and Rules
17j-1(b) and 17j-1(d) under the Investment Company Act, based on
concealed personal trading. She will pay a $35,000 civil
penalty.
WELLSPRING CAPITAL: SEC Obtains $6M CT Judgment V. Ponzi Scheme
---------------------------------------------------------------
The U.S. District Court for the District of Connecticut approved
a settlement of the Commission's civil action charging
Connecticut resident Blake A. Prater and his Guilford,
Connecticut-based company, Wellspring Capital Group, Inc. with
securities fraud. Under the terms of the Final Judgment of
Permanent Injunction, Disgorgement, and Other Relief, the
defendants must disgorge $6 million constituting funds raised
from investors, Prater must pay $120,000 in civil penalties,
Wellspring must pay $600,000 in civil penalties, and both
defendants are permanently enjoined from future violations of
certain provisions of the federal securities laws.
The Court's order approving the settlement resolves an action
brought by the Commission against Prater and Wellspring on
September 5, 2003. The Commission's complaint alleged that the
defendants operated a sophisticated Internet Ponzi scheme that
raised millions of dollars from thousands of investors. On June
7, 2004, the Court appointed a receiver, Lewis K. Wise of Rogin,
Nassau, Caplan, Lassman & Hirtle, LLC to distribute the
disgorged assets of the defendants to victims of the fraud.
Investors with questions or claims should contact the receiver
directly at Rogin Nassau, City Place I, 22nd Floor, 185 Asylum
Street, Hartford, CT 01603 or at 860-278-7480. The suit is
titled, SEC v. Blake A. Prater and Wellspring Capital Group,
Inc., Civil Action No. 03-1524, USDC CT, MRK (LR-18856).
WINN DIXIE: Shareholders Lodge Securities Fraud Suits in M.D. FL
----------------------------------------------------------------
Winn Dixie Stores, Inc. and three of its present and former
executive officers face several securities class actions filed
in the United States District Court for the Middle District of
Florida on behalf of a class of purchasers of the Company's
common stock during the period from October 9, 2002, through and
including January 29, 2004.
The suits allege claims under the federal securities laws,
specifically Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated thereunder. The
complaint generally alleges that, during the Class Period, the
defendants made false and misleading statements regarding the
Company's marketing and competitive situation, self-insurance
reserves, impairment of assets and other matters. The
complaints seek certification as a class action, unspecified
compensatory damages, attorneys' fees and costs, and other
relief.
The Company expects that these various actions will be
consolidated and will proceed as a single action, the Company
stated in a disclosure to the Securities and Exchange
Commission.
WINN DIXIE: Pension Plan Participants Launch ERISA Suits in FL
--------------------------------------------------------------
Winn Dixie Stores, Inc., three of its present and former
executive officers and certain employees who serve on the
administrative committee that administers the Company's 401(k)
Plan face three class actions filed in the United States
District Court for the Middle District of Florida.
The three complaints are nearly identical, and the actions
likely will be consolidated and then proceed as a single action.
The actions purport to be brought on behalf of a class
consisting of the Plan and participants and beneficiaries under
the Plan whose individual accounts held shares in the Winn-Dixie
Stock Fund during the period from May 6, 2002, through and
including January 29, 2004. The complaints allege claims under
the Employee Retirement Income Security Act of 1974, as amended
(ERISA).
More specifically, the complaints generally allege that, during
the Class Period, the defendants breached their fiduciary duties
to the Plan, its participants and its beneficiaries under ERISA
by:
(1) failing to exercise prudent discretion in deciding
whether to sell Company stock to the Plan trustee for
investment by the Plan,
(2) failing to provide timely, accurate and complete
information to Plan participants,
(3) failing to adequately monitor and review Company stock
performance as a prudent investment option,
(4) failing to manage Plan assets with reasonable care,
skill, prudence and diligence and other matters
The complaints seek certification as a class action, a
declaration that defendants violated fiduciary duties under
ERISA, unspecified equitable and remedial damages, attorneys'
fees and costs, and other relief.
New Securities Fraud Cases
BENNETT ENVIRONMENTAL: Squitieri & Fearon Files Stock Suit in NY
----------------------------------------------------------------
The law firm of Squitieri & Fearon, LLP initiated a class action
in the United States District Court for the Southern District of
New York on behalf of purchasers of the securities of Bennett
Environmental, Inc. (AMEX:BEL) ("Bennett" or the "Company")
during the period June 2, 2003 through July 21, 2004 (the "Class
Period").
The Complaint charges that defendants violating the federal
securities laws by misrepresenting the financial condition of
the Company to the public during the Class Period.
The Complaint further charges that at the beginning of the Class
Period the Company announced it was awarded a contract to treat
300,000 tons of soil contaminated with wood treatment chemicals
from Phase III of the Federal Creosote Superfund Site in New
Jersey (the "Phase III Contract"). The Company reported that the
Phase III Contract was valued at $200 million Canadian ("Cdn"),
the largest contract in the Company's history. Throughout the
Class Period, the Company issued positive statements regarding
the Phase III Contract and the Company's financial growth and
progress. In reality, however, the Company knew or recklessly
disregarded that the Phase III Contract was in jeopardy and, as
a result, that the Company's contract backlog was artificially
inflated.
On July 22, 2004, Bennett stunned the public when the Company
issued a press release announcing that it accepted a new,
reduced contract that was less favorable than the Phase III
Contract, providing for a maximum of only 100,000 tons of soil,
as compared to the 300,000 tons provided for in the Phase III
Contract. In response to the Company's announcement, the value
of the Company's stock fell $2.13 (21%) from $9.93 on July 21,
2004 to close at $7.80 on July 22, 2004.
For more details, contact Stephen J. Fearon, Jr. of Squitieri &
Fearon, LLP by Phone: (212) 421-6492 or by E-mail:
Stephen@sfclasslaw.com
CARDINAL HEALTH: Barrack Rodos Lodges Securities Suit in S.D. OH
----------------------------------------------------------------
The law firm of Barrack, Rodos & Bacine initiated a class action
has been commenced in the United States District Court for the
Southern District of Ohio by an institutional investor on behalf
of purchasers of securities of Cardinal Health, Inc. (NYSE:
CAH), from October 24, 2000, through July 26, 2004 (the "Class
Period").
The complaint alleges that Cardinal and certain of its officers
and directors, in order to maintain the Company's record growth
and profit rates, engaged in a series of fraudulent accounting
manipulations to inflate Cardinal's financial results. The
complaint further alleges that on June 30, 2004, Cardinal issued
a news release that disclosed, among other things:
(1) a significant earnings shortfall;
(2) that Cardinal had received a subpoena from the SEC that
included a request for the production of documents
relating to revenue classification and the methods used
for such classification; and
(3) that the United States Attorney's Office for the
Southern District of New York had also commenced an
investigation on the same subject.
In response the stock fell by $17.19 per share, or more than 24%
in the next day's trading.
The true severity of Cardinal's problems was not revealed until
after the close of the market on July 26, 2004, when Richard
Miller, Cardinal's chief financial officer, announced his
resignation. His resignation was directly tied to the government
investigations and Miller was quoted in the press release as
stating, "Certain financial reporting practices and judgments
that occurred during my tenure as CFO have come under scrutiny
in the ongoing investigations. I now believe it is in the best
interests of the company for me to step aside as CFO." The
Company also announced that the release of its financial results
for the fiscal year ending June 30, 2004, which had been
scheduled for that same week, would be delayed until late August
or early September. The market reaction to the July 26th
announcement was immediate and strongly negative. On July 27,
2004, the Company's stock fell by $6.47 to close at $44.00, a
decline of nearly 13% from the previous day's closing price.
For more details, contact Daniel E. Bacine, Esq. of Barrack,
Rodos & Bacine by Mail: 3300 Two Commerce Square, 2001 Market
Street, Philadelphia, PA 19103 by Phone: 215-963-0600 or by Fax:
215-963-0838
CERIDIAN CORPORATION: Weiss & Yourman Lodges MN Securities Suit
---------------------------------------------------------------
The law firm of Weiss & Yourman initiated a class action lawsuit
against Ceridian Corp. ("Ceridian" or the "Company") (NYSE:CEN)
and its officers in the United States District Court, District
of Minnesota, on behalf of purchasers of Ceridian securities
between April 17, 2003 and July 19, 2004.
The complaint charges the defendants with violations of the
Securities Exchange Act of 1934, alleging that defendants issued
false and misleading statements which artificially inflated
stock.
For more details, contact David C. Katz, Mark D. Smilow or James
E. Tullman, by Mail: The French Building, 551 Fifth Avenue,
Suite 1600, New York, NY 10176 by Phone: (888) 593-4771 or
(212) 682-3025 or by E-mail: info@wynyc.com
CROSS COUNTRY: Charles J. Piven Files Securities Suit in S.D. FL
----------------------------------------------------------------
The law offices of Charles J. Piven, P.A. commenced a securities
class action on behalf of shareholders who purchased, converted,
exchanged or otherwise acquired the common stock of Cross
Country Healthcare, Inc. (Nasdaq:CCRN) between October 25, 2001
and August 6, 2002, inclusive (the "Class Period").
The case is pending in the United States District Court for the
Southern District of Florida against defendant Cross Country and
certain of the Company's executive officers. 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.
For more details, contact the law offices of Charles J. Piven,
P.A. by Mail: The World Trade Center-Baltimore, 401 East Pratt
Street, Suite 2525, Baltimore, MD 21202 by Phone: 410/986-0036
or by E-mail: hoffman@pivenlaw.com
FIRST VIRTUAL: Schatz & Nobel Lodges Securities Suit in N.D. CA
---------------------------------------------------------------
The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking
class action status in the United States District Court for the
Northern District of California on behalf of all persons who
purchased the publicly traded securities of First Virtual
Communications, Inc. (PNK: FVCC) ("First Virtual") between March
29, 2004 and August 23, 2004 (the "Class Period").
The complaint alleges that First Virtual engaged in a "pump and
dump" scheme that enabled insiders to profit at the expense of
class members by issuing materially false and misleading
statements while insiders sold over a million shares of their
personally held First Virtual securities at artificially
inflated prices. When the truth was revealed, on August 24,
2004, First Virtual disclosed that its securities were being
delisted from the Nasdaq SmallCap market.
For more details, contact Wayne T. Boulton by Phone:
(800) 797-5499 by E-mail: sn06106@aol.com or visit their Web
site: http://www.snlaw.net
WET SEAL: Milberg Weiss Lodges Securities Fraud Suit in C.D. CA
---------------------------------------------------------------
The law firm of Milberg Weiss Bershad & Schulman LLP initiated a
class action lawsuit on behalf of purchasers of the securities
of Wet Seal, Inc. ("Wet Seal" or the "Company") (NASDAQ:WTSLA)
between January 8, 2004 and August 19, 2004 inclusive, (the
"Class Period"), seeking to pursue remedies under the Securities
Exchange Act of 1934 (the "Exchange Act").
The action is pending in the United States District Court for
the Central District of California, against Wet Seal, Peter D.
Whitford, Joseph E. Deckop, Stephen Gross and Irving Teitelbaum.
The complaint charges Wet Seal, Peter D. Whitford, Joseph E.
Deckop, Stephen Gross and Irving Teitelbaum 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 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's strategic initiatives plan was not
strengthening the Company's corporate standing. In
fact, the Company's strategic initiatives plan was a
complete and total disaster that was leading the
Company into financial ruin;
(2) that demand for the Company's products was based on
deep-discounting and that without deep-discounting its
products, demand for such was at an all time low; and
(3) that as a result of the above, the Company's
projections, outlooks, and positive statements, were
lacking in any reasonable basis when made.
Under the cover of these misleading statements, Defendants Gross
and Teitelbaum sold almost $15 million of Wet Seal stock under
their control to deceived and mislead investors.
On August 19, 2004, after the market closed, Wet Seal shocked
the market by reporting a net loss from continuing operations of
$3.20 per share for the second quarter ended July 31, 2004.
Following this post-market announcement, shares of Wet Seal shed
$1.25 per share, or 59.52 percent, to close at $0.85 per share
on unusually high trading volume on August 20, 2004.
For more details, contact Steven G. Schulman by Mail: One
Pennsylvania Plaza, 49th fl., New York, NY 10119-0165 by Phone:
(800) 320-5081 or by E-mail: sfeerick@milbergweiss.com OR Maya
Saxena or Joseph E. White by Mail: 5355 Town Center Road, Suite
900, Boca Raton, FL 33486 by Phone: (561) 361-5000 by E-mail:
msaxena@milbergweiss.com
WET SEAL: Schatz & Nobel Lodges Securities Fraud Suit in C.D. CA
----------------------------------------------------------------
The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking
class action status has been filed in the United States District
Court for the Central District of California on behalf of all
persons who purchased the publicly traded securities of The Wet
Seal, Inc. (Nasdaq: WTSLA) ("Wet Seal") between January 7, 2004
and August 19, 2004 (the "Class Period").
The complaint alleges that Wet Seal failed to disclose and
misrepresented the fact that Wet Seal's strategic initiatives
plan was not strengthening its corporate standing; that demand
for Wet Seal's products was based on deep- discounting and that
without deep-discounting its products, demand for such was at an
all time low; and that Wet Seal's projections, outlooks, and
positive statements, were lacking in any reasonable basis when
made. On August 19, 2004, Wet Seal reported a net loss from
continuing operations of $3.20 per share for the second quarter
ended July 31, 2004. Following this announcement, shares of Wet
Seal fell almost 60% to close at $0.85 per share on August 20,
2004.
For more details, contact Wayne T. Boulton 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.
*********
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Copyright 2004. All rights reserved. ISSN 1525-2272.
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