/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/040917.mbx C L A S S A C T I O N R E P O R T E R Friday, September 17, 2004, Vol. 6, No. 185 Headlines 9/11 LITIGATION: Insurers Launch Suits For Losses Due To Attack ACCOUNTING FIRMS: Reach $20M Overbilling Suit Settlement ANTIDEPRESSANTS: FDA Panel Recommends Placing Black Box Warning ASHWORTH INC.: Reaches Settlement for CA Securities Fraud Suit AUSTRALIA: Group To Sue Over Bushfires, To Prevent Future Blazes BOTTOMLINE TECHNOLOGIES: Reaches Settlement For NY Stock Lawsuit BRIDGEWAY CAPITAL: SEC Settles Cease-and-Desist Proceedings CERES GROUP: Settles CA Suit V. Medical Policies of Subsidiaries CHINA: Investors Plan Suit V. Shaanxi Government Over Oil Wells ELAN PHARMACEUTICALS: Working To Settle SEC Probe, Stock Suits FLEMING COMPANIES: Settles SEC Action, Investigation Continues FORD MOTOR: Lawyer for IL Police Alleges Fraud, Deceptive Trade INFINEON TECHNOLOGIES: DOJ Levies $160M Fine For Price Fixing IRELAND: 800 Prisoners, Ex-Prisoners To Sue Over Jail Conditions MUTUAL FUNDS: Pomerantz Firm Chosen As Lead Counsel in Lawsuit NATIONAL AUTO: Conference on Objections To Pact Moved This Month NCI BUILDING: TX Court Approves Securities Fraud Suit Settlement NCR CORPORATION: Recalls 78T Refill Kits Due To Ingestion Hazard NEW JERSEY: Assembly Passes Bill Banning Junk Food in Schools NEW ZEALAND: 18 Ex-Inmates To Join Rights Lawsuit V. Corrections NORTHWEST AIRLINES: Transportation Dept Drops Privacy Complaint OPTIO SOFTWARE: Accepts NY Securities Fraud Lawsuit Settlement PHILIP MORRIS: Judge Grants Class Status to "Lights" Suit in OH PHILIP MORRIS: Marlboro Lights Suit Granted Class Status in MO PHOSPHATE RESOURCE: DE Court Orders Investor Suits Consolidated PIMCO FUNDS: Units Pay $11.6M To Settle SEC Mutual Funds Action SOUTH CAROLINA: Patient Lodges Suit, Claims SRHS Overcharged Her STRATOS LIGHTWAVE: Asks NY Court To Approve Securities Suit Pact SYNOPSYS INC.: Shareholders Lodges Stock Fraud Suits in N.D. CA TENNESSEE: Judge Issues Restraining Order V. Sex Offender Law TEXAS: Houston Reaches $72M Settlement in Paramedic's Wage Suit UNITED STATES: U.S. Senate Asked To Block New Overtime Rules Asbestos Alert ASBESTOS LITIGATION: Chamber of Commerce Raises Lobbying Budget ASBESTOS LITIGATION: Congress Backs Fines for Frivolous Lawsuits ASBESTOS LITIGATION: Russian Govt Cancels Asbestos Export Duty ASBESTOS LITIGATION: HSE Advises Contractors to Take Precautions ASBESTOS LITIGATION: Eurobodalla Council Rejects Hardie Boycott ASBESTOS LITIGATION: WA Building Demolition Delayed By Asbestos ASBESTOS LITIGATION: IL State Ban on Asbestos Fliers Challenged ASBESTOS LITIGATION: HSE Study Reveals Alarming Asbestos Deaths ASBESTOS LITIGATION: 9/11 Health Report Urges Action, Study ASBESTOS LITIGATION: Alert Put on Asbestos Dump in UK Hospital ASBESTOS LITIGATION: Reinsurers Warned to Brace for More Claims ASBESTOS LITIGATION: UK Council Alerted to Asbestos-based Tiles ASBESTOS LITIGATION: Asbestos Alarms UK Primary School to Action ASBESTOS LITIGATION: French Govt Sets Up Asbestos Association ASBESTOS LITIGATION: Unsafe Removal Causes Renovation Shutdown ASBESTOS LITIGATION: Asbestos Fears Put Off Coventry Projects ASBESTOS LITIGATION: Builder Calls for Home-Demolition Control ASBESTOS LITIGATION: Army Casts Asbestos Removal Onto Authority ASBESTOS LITIGATION: Weston Council Split Over Asbestos Issue ASBESTOS LITIGATION: Scientist Defends the Use of White Asbestos ASBESTOS LITIGATION: Police Issue Warning Over Bridgnorth Fire ASBESTOS LITIGATION: UK Companies Neglect Asbestos Obligation ASBESTOS LITIGATION: CT Official Gets Probation on Asbestos Case ASBESTOS LITIGATION: Probe Started into the Asbestos Industry ASBESTOS LITIGATION: Insurers React To Rising Asbestos Claims ASBESTOS LITIGATION: Shares Up on Breakthrough in Asbestos Fund ASBESTOS LITIGATION: Asbestos Risk Forces AR Clubhouse to Close ASBESTOS LITIGATION: Software to Manage and Inspect Asbestos ASBESTOS LITIGATION: AU Unions Take Hardie Protest to the U.S. ASBESTOS LITIGATION: Hardie Expresses Regrets in Annual Meeting ASBESTOS LITIGATION: Lend Lease to Fight WTC Asbestos Lawsuit ASBESTOS ALERT: Kelly-Moore Blames Union Carbide for Illnesses ASBESTOS ALERT: Arizona Companies Cited Due To Asbestos Dumping ASBESTOS ALERT: Ground Zero Team Files Suit Over Health Effects ASBESTOS ALERT: Sensus Metering Systems Faces Asbestos Lawsuit New Securities Fraud Cases BENNETT ENVIRONMENTAL: Murray Frank Lodges Securities Suit in NY BIOLASE TECHNOLOGY: Murray Frank Lodges Securities Lawsuit in CA DECODE GENETICS: Berman DeValerio Lodges Securities Suit in NY KONGZHONG CORPORATION: Milberg Weiss Files Securities Suit in CA KVH INDUSTRIES: Bernstein Liebhard Lodges Sceurities Suit in RI TARO PHARMACEUTICAL: Murray Frank Files Securities Lawsuit in NY TECO ENERGY: Vianale & Vianale Files Securities Fraud Suit in FL WIRELESS FACILITIES: Murray Frank Files CA Stock Fraud Lawsuit WIRELESS FACILITIES: Spector Rosemna Files Securities Suit in CA ********* 9/11 LITIGATION: Insurers Launch Suits For Losses Due To Attack --------------------------------------------------------------- More than a dozen insurers and reinsurers filed several lawsuits against airline companies, airport security companies and Boeing Co. in the United States District Court in New York, seeking to recover losses due to the September 11,2001 terrorist attacks, Business Insurance reports. The plaintiffs filed the suits last Friday to meet a deadline for September 11-related liability actions. The suits allege that the defendants' negligence contributed to the losses in various ways. Several of the suits filed Friday name virtually the same cast of defendants, American, United, U.S. Airways Group Inc., several airport security companies and Chicago-based Boeing Co., which manufactured the hijacked planes. Those filing suits last week included: (1) Industrial Risk Insurers, a unit of GE Insurance Services - IRI filed two complaints - one to recover losses related to the destruction of most of the World Trade Center complex and a second for losses specifically related to 7 World Trade Center, which collapsed several hours after the attacks; (2) Assurance General de France and several units of Allianz A.G. Holding of Germany, including Fireman's Fund Insurance Co. Lloyd's of London underwriters; Munich Reinsurance Co. and affiliate Munich-American Risk Partners GmbH; and Greater New York Mutual Insurance Co. and affiliate Insurance Co. of Greater New York; (3) Great Lakes Reinsurance (UK) P.L.C., American Re- Insurance Co., a Munich Re unit, which is suing to recover reinsurance payments to Verizon Communications Inc.'s Vermont captive insurer, Exchange Indemnity Co. Separately, several plaintiffs filed actions naming scores of Middle Eastern defendants allegedly responsible for September 11 losses, variously including the Saudi government, groups identified by the U.S. government as terrorist organizations, Islamic charities and various individuals and corporations. Pacific Employers Insurance Co. and WTC leaseholder Silverstein Properties Inc. filed two such complaints, while WTC owner The Port Authority of New York & New Jersey joined an existing suit filed by investment firm Cantor Fitzgerald L.P. Similar suits had been filed earlier by other insurers, including Chubb Corp.'s Federal Insurance Co. last year and New York Marine & General Insurance Co. last month. The suits are expected to be consolidated with a mass of related claims already pending in same court. The consolidated action, pitting dozens of individual and corporate plaintiffs against multiple defendants, ultimately will sort out who is liable for property and other losses stemming from the attacks. ACCOUNTING FIRMS: Reach $20M Overbilling Suit Settlement -------------------------------------------------------- Ernst & Young and Cap Gemini agreed to pay a combined total of $20 million to settle their part of a class action lawsuit against major accounting firms suspected of over billing for travel expenses, MSN Money reports. The suit, whose lead plaintiff is shopping mall operator Warmack-Muskogee accused both firms of receiving profound discounts for their accountants who traveled on business and not passing on those discounts when it came to billing their clients. Under the terms of the settlement Ernst & Young is required to pay $18 million while formerly affiliated Cap Gemini will shell out $2 million. Miller County Circuit Judge Kirk Johnson, in Texarkana, Arkansas, gave preliminary approval to the settlement. Upon reaching the settlement, Ernst & Young spokesman Charles Perkins stated that the company was pleased to have resolved this issue in a practical and evenhanded manner. He further adds that since the suit the company has been billing clients directly at the discounted rates they receive from travel companies, having changed their policy in January 2002. Previously in the suit, PricewaterhouseCoopers settled for $54 million and KPMG and Bearingpoint settled for $34 million, which brought the total amount to $108 million in payments. ANTIDEPRESSANTS: FDA Panel Recommends Placing Black Box Warning --------------------------------------------------------------- A panel of advisers to the United States Food and Drug Administration (FDA) recommended placing a "black box" warning on all drugs used to treat depressed children, over their link to increased suicidal thoughts and actions, the Associated Press reports. The FDA advisory panel recommended the action after it heard testimony early this week from doctors, researchers and relatives of patients who killed themselves after taking such medication. On Tuesday, the panel deliberated on the testimonies before issuing the recommendation. A dozen psychiatrists who testified during the two-day hearing will probably weigh in with more details of antidepressants' benefits for children, Dr. David Fassler, trustee at large for the American Psychiatric Association told AP. Dr. Fassler earlier testified before the panel that 3 percent to 5 percent of children are depressed and that more than 500,000 depressed children attempt suicide each year. "It's important to note it was a split vote. I think that's consistent with the fact the data is not entirely consistent or clear," Dr. Fassler said. "I don't think the discussion is over." During the deliberations, many members of the FDA panel said they were still conflicted. Grieving families of patient clearly wanted the warning label, but mental health professionals worried about the chilling effect of the warnings, a note which comes at the top of the drug's label, whether it arrives electronically or by paper. Dr. Matthew Rudorfer, a mood disorder specialist at the National Institute of Mental Health, voted against the black box warning. The 2 percent to 3 percent increased risk of suicidal thoughts that alarmed the panel was overshadowed by the 15 percent risk of suicides by children with untreated depression, AP reported. "I fear the black box would impede access to treatment," Dr. Rudorfer said. FDA advisory committee Chairman Dr. Wayne Goodman, psychiatry chairman at the University of Florida, acknowledged complications for prescribing physicians while still voting for the proposal, AP stated. "I anticipate there will be alarm from parents and the child," Dr. Goodman said. "I think that's worth that complication, because it will raise the threshold" for prescribing the drugs to children. Last March, the FDA advised that bold-letter warnings be placed on anti-depressant labels. Antidepressant prescription rates to children, however, remained unchanged. The new black box warning is among the most strident in the FDA arsenal. Unlike the earlier red flag, advisers said this new warning should make clear that antidepressants have been linked to two to three more children per 100 having heightened suicidal thoughts and behaviors. The warning should reach doctors no matter how they get drug information and would extend to drug advertising directed at patients. The FDA will spend the next few weeks reviewing transcripts of the committee's comments before it decides which actions to take. The FDA isn't required to follow the recommendations of its advisory committees, but usually does so, AP reports. The FDA advisory panel also endorsed a suggestion that the agency create an antidepressant guide written in laymen's terms appears to be a slam dunk, since three dozen drugs already include them. "When the decision is divided, it's less of a sure thing," Dr. Robert Temple, director of the FDA's Office of Drug Evaluation, told reporters later. Wyeth Pharmaceuticals, which manufactures the antidepressant Effexor, will note that split decision when it discusses the best warning option with FDA officials, Dr. Joseph Camarado, senior vice president of medical affairs, told AP. The black-box warning should be joined by data showing which antidepressants work for depressed children, FDA advisers suggested. The recommendation, if endorsed by the drug agency, would mean that Prozac, shown in three studies to effectively treat depressed youth, would carry that notice. Paxil's shortcomings in treating 700 depressed children in clinical trials, meanwhile, could become more transparent. The panel stopped short of asking for an outright ban on antidepressants for children. ASHWORTH INC.: Reaches Settlement for CA Securities Fraud Suit -------------------------------------------------------------- Ashworth, Inc. reached a settlement for the securities class action filed against it in the United States District Court for the Southern District of California on behalf of purchasers of the Company's common stock during the period between September 4, 1997 and July 15, 1998. Upon the Company's motion, the Court dismissed the Complaint with leave to amend on July 18, 2000. On September 18, 2000, Plaintiffs served their Second Consolidated Amended Complaint. On November 6, 2000, the Company filed its motion to dismiss the Second Amended Complaint, which the court granted, in part, and denied, in part. The remaining portions of the Second Amended Complaint alleged that, among other things, during the class period and in violation of the Securities Exchange Act of 1934, the Company's financial statements, as reported, did not conform to generally accepted accounting principles with respect to revenues and inventory levels. It further alleged that certain Company executives made false or misleading statements or omissions concerning product demand and that two former executives engaged in insider trading. The Company has reached a tentative settlement to conclude this securities class action lawsuit. Under the settlement, all claims will be dismissed and the litigation will be terminated in exchange for a payment of $15.25 million, approximately 82% of which will be paid by Ashworth's insurance carriers. As part of the settlement, Ashworth also agreed to adopt modifications to certain corporate governance policies. AUSTRALIA: Group To Sue Over Bushfires, To Prevent Future Blazes ---------------------------------------------------------------- Members of the group planning to file a class action against Australian government agencies over the 2003 bush fires say that they have one thing in common - the desire to prevent such devastating blazes occurring again, the Weekly Times reports. The Stretton Group announced last week that it is considering a class action over the firers, which burnt out 1.3 million hectares of land in East Gippsland and Northeast Victoria. The magnitude of the fires was allegedly caused by inadequate fuel reduction burning going back several years and a flawed response by fire fighting authorities. The Stretton Group takes its name from Judge Leonard Stretton, the royal commissioner who presided over the inquiry into the 1939 fires. The group believes legal action is the only means left to force the Government to accept its agencies were to blame, and to bring about changes in future forest management and bushfire response, the Weekly Times reports. BOTTOMLINE TECHNOLOGIES: Reaches Settlement For NY Stock Lawsuit ---------------------------------------------------------------- Bottomline Technologies, Inc. reached a settlement for the securities class action filed against it in the United States District Court for the Southern District of New York, styled "In re Bottomline Technologies Inc. Initial Public Offering Securities Litigation." The amended complaint filed in the action asserts claims under Sections 11, 12(2) and 15 of the Securities Act of 1933, as amended, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (Exchange Act). The amended complaint asserts, among other things, that the description in the Company's prospectus for its initial public offering was materially false and misleading in describing the compensation to be earned by the underwriters of its offering, and in not describing certain alleged arrangements among underwriters and initial purchasers of its common stock from the underwriters. The amended complaint seeks damages (or, in the alternative, tender of the plaintiffs' and the class' Bottomline common stock and rescission of their purchases of the Company's common stock purchased in the initial public offering), costs, attorneys' fees, experts' fees and other expenses. In July 2002, Bottomline, Daniel M. McGurl and Robert A. Eberle joined in an omnibus motion to dismiss, which challenged the legal sufficiency of plaintiffs' claims. The motion was filed on behalf of hundreds of issuer and individual defendants named in similar lawsuits. Plaintiffs opposed the motion, and the court heard oral argument on the motion in early November 2002. On February 19, 2003, the court issued an order denying the motion to dismiss as to Bottomline. In addition, in early October 2002, Daniel M. McGurl and Robert A. Eberle were dismissed from this case without prejudice. A special litigation committee of the board of directors of Bottomline authorized Bottomline to negotiate a settlement of the pending claims substantially consistent with a memorandum of understanding negotiated among class plaintiffs, all issuer defendants and their insurers. The settlement is subject to approval by the court. BRIDGEWAY CAPITAL: SEC Settles Cease-and-Desist Proceedings ----------------------------------------------------------- The Securities and Exchange Commission instituted and simultaneously settled administrative and cease-and-desist proceedings against Houston-based investment adviser Bridgeway Capital Management, Inc. (Bridgeway Capital) and its founder John Noland Ryan Montgomery. The Commission found that Bridgeway Capital received more than $4.4 million in excessive advisory fees as a result of charging illegal performance-based fees to three mutual funds at Bridgeway Funds, Inc. The Commission found that Bridgeway Capital willfully violated, and Montgomery willfully aided and abetted and caused Bridgeway Capital's violations of Section 205(a) of the Investment Advisers Act of 1940. The law requires fund managers to calculate performance- based fees-fees based on fund performance measured against an external benchmark-using the average value of the fund's assets over the same period that is used to measure the fund's performance. Pursuant to their offers of settlement, Bridgeway Capital and Montgomery neither admitted nor denied the findings in the Commission's Order. The settlement requires that Bridgeway Capital reimburse the affected fund shareholders $4,407,700, plus prejudgment interest of $458,764, and that Bridgeway Capital and Montgomery pay penalties of $200,000 and $50,000, respectively. The Commission ordered Bridgeway Capital and Montgomery to cease and desist from committing or causing the violations and required Bridgeway Capital to comply with certain undertakings, including retaining experienced compliance personnel to ensure that Bridgeway Capital applies its performance-based fee in accordance with the federal securities laws in the future. CERES GROUP: Settles CA Suit V. Medical Policies of Subsidiaries ---------------------------------------------------------------- The Ceres Group, Inc. (Nasdaq:CERG) agreed to settle a previously-disclosed California class action lawsuit pending against it and its subsidiaries, United Benefit Life Insurance Company ("UBL") and Central Reserve Life Insurance Company, as well as a related action involving its subsidiary, Provident American Life and Health Insurance Company ("PALHIC"). These suits relate primarily to challenges to premium increases for California holders of major medical policies issued by UBL and PALHIC. UBL terminated all of its policies nationwide as of December 31, 2001, or in limited cases as of February 28, 2002. PALHIC has only 400 active policyholders (none in California) and discontinued new sales activities in 2001. The settlements contemplate payments to class members and others, as well as certain attorneys' fees and costs. The settlements are subject to certain conditions (including court approval with respect to the class action lawsuit) and do not involve any admission of wrongdoing by the company or any subsidiary. The company estimates that these settlements will result in a charge in the third quarter ending September 30, 2004 of approximately $2.1 million (after-tax), or $0.06 per diluted share. Although the final amount of the settlement payout may vary, the company believes that the ultimate payout will not materially exceed this amount. The company has previously stated that it expects to achieve net operating income of $0.53 per diluted share for the full year 2004. Net operating income excludes certain items (such as net realized investment gains and the reduction in the deferred tax valuation allowance) that, in the opinion of management, are not indicative of overall operating trends. The company believes that, excluding such items and the charge from these settlements, it will still achieve net operating income of $0.53 per diluted share for 2004. CHINA: Investors Plan Suit V. Shaanxi Government Over Oil Wells --------------------------------------------------------------- More than 500 plaintiffs are planning to lodge a massive class- action lawsuit against the Shaanxi government and its officials accusing them of illegally seizing their assets and paying unfair compensation, South China Morning Post reports. The planned lawsuit stems from a central government decision ordering the local government to reclaim thousands of oil wells in a 580 sq. km. area in northern Shaanxi's Yulin and Yanan regions that had been opened for private investment. According to Plaintiffs' attorney Zhu Jiuhu, who will file the suit within the next two months at the Shaanxi Provincial Supreme People's Court, the case would demand that officials pay fair compensation for their oil wells as stipulated in their contracts and that disputes over seized assets be settled in the courts. Attorney Zhu stated that his clients had suffered economic losses of almost 7 billion yuan as a result of the government's actions. His clients said such actions included the unfair compensation for the wells by the local officials, who underestimated the oil reserves. The investors also claimed that officials have also been using illegal strong-arm tactics like sending the police to seize the wells if the owners refuse to surrender their assets. In 1994, the State Council approved a plan giving the exploration and development rights of the Shaanxi oil fields, then held by the China National Petroleum Corporation, to the local governments, whose officials encouraged private investors to form joint oil exploration and drilling partnerships. More than 100,000 mostly poor farmers who borrowed heavily and sold all their farming assets rushed to invest. But due to the absence of tight regulation, the oil projects by the end of 1998 led to mass waste, chaos and environmental destruction. In order to restore the region's oil market, premier Zhu Rongji in 2002 told local governments to reclaim the wells and settle with the private investors. Backed by central government authorization, the local authorities immediately began seizing the oil wells, which eventually led to the present legal predicament. ELAN PHARMACEUTICALS: Working To Settle SEC Probe, Stock Suits -------------------------------------------------------------- Elan Pharmaceuticals, Inc. is engaging in active discussions with the Securities and Exchange Commission, to resolve the agency's regulatory investigation into its accounting practices, chief executive officer Kelly Martin revealed in an investor conference in New York this week, Business World reports. Mr. Martin also hinted that an announcement on the issue should be forthcoming by the end of the month. The Company is also discussing the resolution of a number of class action lawsuits filed against the company in the wake of the announcement of the SEC probe in 2002. Analysts say a resolution of the inquiry into the firm's accounting practices would remove uncertainty from the stock, bringing relief to investors. "Though very difficult to gauge, we believe an SEC cash penalty below USD100m would be a reasonably benign result for the company - at the very least, final resolution would be greeted with relief," Jack Gorman of Davy Stockbrokers told Business World. He noted that two high- profile U.S. cases have reached settlement with the SEC in the last two months, suggesting that the agency is successfully working through its investigations. FLEMING COMPANIES: Settles SEC Action, Investigation Continues -------------------------------------------------------------- The Securities and Exchange Commission announced the settlement of enforcement proceedings against grocery wholesaler Fleming Companies, Inc., of Lewisville, Texas, for securities fraud and other violations arising from material earnings overstatements during late 2001 and the first half of 2002. The Commission also announced settled enforcement proceedings against three Fleming suppliers, five of these suppliers' employees, and against former employees of two other Fleming suppliers, for causing certain of Fleming's violations. To settle these charges, Fleming, the suppliers and the supplier employees each consented to Commission administrative orders to cease and desist from such violations. The suppliers and supplier employees also agreed to pay civil penalties - ranging from $100,000 to $400,000 for the suppliers and from $25,000 to $75,000 for the supplier employees - that the Commission will obtain through related civil complaints it filed today in U.S. District Court in Sherman, Texas. All parties settled without admitting or denying the Commission's non-jurisdictional findings. The Commission's complaints in the civil actions allege that Fleming obtained misleading side letters from the suppliers to justify improperly accelerating accounting recognition of up- front payments the suppliers made to secure forward-looking contracts. The Commission alleges the following suppliers and employees engaged in these types of improper transactions (the numbers in parentheses are the civil penalties each agreed to pay in the civil actions): (1) Dean Foods Company ($400,000), a publicly traded dairy product supplier based in Dallas, and John D. Robinson ($50,000), a senior executive in its dairy division; (2) Kemps LLC, f/k/a Marigold Foods LLC ($150,000), a privately held dairy product supplier headquartered in Minneapolis, and its CEO, James Green ($50,000), and vice president of financial services, Christopher Thorpe ($50,000); (3) Digital Exchange Systems, Inc. ($100,000), a privately held company based in Tampa, and its president, Steven Schmidt ($75,000), and principal owner, Rosario Coniglio ($75,000); (4) Bruce Keith Jensen ($25,000), a director of national accounts for Frito Lay, Inc. in Plano, Tex., during the relevant periods; and (5) John K. Adams ($25,000), a region manager for Kraft Foods, Inc. in Dallas during the relevant periods. FORD MOTOR: Lawyer for IL Police Alleges Fraud, Deceptive Trade --------------------------------------------------------------- A lawyer for the Illinois police departments alleged that Ford Motor Co. continued to sell its controversial Crown Victoria police cars, even after the deaths of several officers in fiery rear-end crashes showed the vehicles were unsafe, the Associated Press reports. The Company is charged of fraud and deceptive trade practices over the Crown Victoria Police Interceptor, a specially built police cruiser that accounts for the majority of police cars on U.S. streets. The suit, filed in St. Clair County Circuit Court, 15 miles east of St. Louis, is the first to come to trial over the widely-used cruisers' safety. Suits are pending in 11 states. Since 1983, fourteen officers have died in fiery crashes after their Crown Victorias were rear-ended. None of those crashes occurred in Illinois, but the St. Clair County Sheriff's Office and nearby Centreville Police Departments sued anyway, seeking to force the company to retrofit their Crown Victorias with special safety equipment. The lawsuit was filed on behalf of every law-enforcement agency in the state and seeks to have Ford pay to install the safest equipment available to protect the cruisers. "That policy of minimizing safety to maximize profits is at the heart of why we're here today," attorney David Perry told the court, according to the Associated Press. He also showed jurors photos of the officers who had died. However, Ford's lawyers asserted that the Crown Victoria is safe and that the cruiser is more likely to be involved in police crashes because officers are more likely than other motorists to travel at high speeds and park at the sides of highways. "I don't mean to minimize or trivialize police fatalities," Ford lawyer James Feeney of Detroit told the jury during Ford's opening statement, AP reports. "But the question here is whether this car is reasonably safe for police work, and it is." Ford's attorney showed jurors videotape of a rear-end crash at 100 mph involving a Crown Victoria that did not erupt into flames, in a bid to bolster his claim that the cars ignite only in a small percentage of accidents that cannot be predicted. The lawsuit does not specify a dollar amount, but Mr. Perry told jurors that outfitting the 14,000 Crown Victoria squad cars in use in Illinois with trunk and fuel-tank liners would cost $62 million. A 2002 government investigation into the Crown Victoria found no specific defect to blame for the fiery crashes. Just before the report's release, Ford offered to retrofit police cruisers with special shields around the gas tanks. It also sold $150 trunk liners aimed at keeping sharp equipment from piercing the gas tank in the event of a rear-end collision, said Douglass Lampe, a Ford attorney supervising the litigation, the Associated Press reports. INFINEON TECHNOLOGIES: DOJ Levies $160M Fine For Price Fixing ------------------------------------------------------------- According to the United States Department of Justice, Antitrust Division, German memory chipmaker Infineon Technologies has agreed to plead guilty and pay $160 million, the third-largest antitrust fine in U.S. history for its role in a price-fixing conspiracy that drove up prices of computers, E-Commerce Times reports. Infineon, whose North American operations are headquartered in San Jose, California, conspired with other makers of dynamic random access memory, or DRAM, from July 1, 1999, to June 15, 2002, to fix prices for memory chips sold to major U.S. computer companies. The victims were Hewlett-Packard, Compaq, Apple, IBM, Dell and Gateway. In its criminal case, the Justice Department claims that the scheme harmed not only the computer manufacturers but also the consumers by driving up the cost of products with DRAM chips, which are used in everything from personal computers to MP3 players and digital cameras. Furthermore the department alleges that executives and employees of Infineon met with competitors, shared sales data and then agreed to set prices for DRAM sales to certain customers. The German memory chipmaker, which has set aside $260 million to cover all litigation costs, filed its plea agreement in federal district court in San Francisco. The earmarked money could also include payouts to computer buyers who have filed class-action lawsuits. Upon the Justice Department's announcement of the agreement, Robert LeFort, president of Infineon Technologies North America stated, "We are just happy to put it behind us and believe it is in the best interest of our shareholders." Infineon also issued the following statement on the matter of price fixing: "Infineon strongly condemns any attempt to fix or stabilize prices. Infineon is committed to vigorous and fair competition based solely on superior products and services." IRELAND: 800 Prisoners, Ex-Prisoners To Sue Over Jail Conditions ---------------------------------------------------------------- The state of Ireland faces a possible lawsuit to be filed on behalf of up to 800 prisoners or former prisoners, over the condition of Irish jails, BreakingNews.com reports. Senior paramilitary and criminal figures are among the up to 800 prisoners and ex-prisoners who are suing the State. The claimants say they have been traumatized and damaged as a result of being detained in cells that have no flush toilets. Some of the country's most notorious criminals, among them the Real IRA director of operations, Liam Campbell and the drug dealer, Patrick Holland, are seeking compensation. The solicitor representing the group, John Devane, told RTE News, he is taking on new clients at a rate of up to 40 per week. The Limerick solicitor says he has clients in every prison in the country and still has to visit more prisoners who want to hire him. The State's Progressive Democrats condemned the action. Senator John Minihan told BreakingNews.com it was "ridiculous". "We are living in a society now which has embraced compensation culture to a ridiculous level and we have to stand up and say that it is wrong," he said. MUTUAL FUNDS: Pomerantz Firm Chosen As Lead Counsel in Lawsuit -------------------------------------------------------------- The Pomerantz Firm was recently appointed as lead counsel in four nationwide mutual fund derivative litigations involving allegations of "market timing" and "late trading." The Firm has primary responsibility in those cases involving the Putnam, Alliance, MFS and Federated families of funds. The firm is seeking not only compensation for the damages directly caused by the market timing, but also to recover the hundreds of millions of dollars of fees the funds paid out to their advisors, without being told of their advisors' complicity in these activities. Consolidated complaints are due to be filed in all four of these actions on September 29, 2004. For more details, contact Andrew G. Tolan, Esq. of Pomerantz Haudek Block Grossman & Gross LLP by Phone: (888) 476-6529 by E- mail: agtolan@pomlaw.com or visit their Web site: http://www.pomerantzlaw.com NATIONAL AUTO: Conference on Objections To Pact Moved This Month ---------------------------------------------------------------- New York Appeals Court set a preliminary conference to review the objections to the settlement of the consolidated securities class action filed against National Auto Credit, Inc. (NAC) this month. On July 31, 2001, the Company received a derivative complaint filed by Academy Capital Management, Inc., a shareholder of NAC, with the Court of Chancery of Delaware, on July 31, 2001, against James J. McNamara, John A. Gleason, William S. Marshall, Henry Y.L. Toh, Donald Jasensky, Peter T. Zackaroff, Mallory Factor, and Thomas F. Carney, Jr. (the "Director Defendants") and names NAC as a nominal defendant. The Academy Complaint principally seeks a declaration that the Director Defendants breached their fiduciary duties to NAC, a judgment voiding an employment agreement with James J. McNamara and rescinding a stock exchange agreement in which NAC acquired ZoomLot Corporation, a judgment voiding the grant of stock options and the award of director fees allegedly related thereto, an order directing the Director Defendants to account for alleged damages sustained and profits obtained by the Director Defendants as a result of the alleged various acts complained of, the imposition of a constructive trust over monies or other benefits received by the Director Defendants and an award of costs and expenses. On August 16, 2001, NAC received a complaint filed by Levy Markovich, a shareholder of NAC, with the Delaware Chancery Court against James J. McNamara, John A. Gleason, William S. Marshall, Henry Y. L. Toh, Donald Jasensky, Peter T. Zackaroff, Mallory Factor, and Thomas F. Carney, Jr. and NAC as a nominal defendant. The Markovich Complaint principally seeks a declaration that the Director Defendants have breached their fiduciary duties to NAC, a judgment voiding an employment agreement with James J. McNamara and rescinding a stock exchange agreement in which NAC acquired ZoomLot Corporation, a judgment voiding the grant of options and the award of directors fees allegedly related thereto, an order directing the Director Defendants to account for alleged damages sustained and alleged profits obtained by the Director Defendants as a result of the alleged various acts complained of, the imposition of a constructive trust over monies or other benefits received by the directors, and an award of costs and expenses. On August 31, 2001, NAC received a complaint filed by Harbor Finance Partners ("Harbor"), a shareholder of NAC, with the Delaware Chancery Court against Thomas F. Carney, Jr., Mallory Factor, John A. Gleason, Donald Jasensky, William S. Marshall, James J. McNamara, Henry Y. L. Toh, Peter T. Zackaroff, Ernest C. Garcia, and ZoomLot Corporation as Defendants and NAC as a nominal defendant. The Harbor Complaint principally seeks a judgment requiring the Director Defendants to promptly schedule an annual meeting of shareholders within thirty (30) days of the date of the Harbor Complaint; a judgment declaring that the Director Defendants breached their fiduciary duties to NAC and wasted its assets; an injunction preventing payment of monies and benefits to James J. McNamara under his employment agreement with NAC and requiring Mr. McNamara to repay the amounts already paid to him thereunder; a judgment rescinding the agreement by NAC to purchase ZoomLot and refunding the amounts it paid; a judgment rescinding the award of monies and options to the directors on December 15, 2000 and requiring the directors to repay the amounts they received allegedly related thereto; a judgment requiring the defendants to indemnify NAC for alleged losses attributable to their alleged actions; and a judgment awarding interest, attorney's fees, and other costs, in an amount to be determined. On October 12, 2001, the Company received a derivative complaint filed by Robert Zadra, its shareholder, with the Supreme Court of the State of New York. The suit also names as defendants James J. McNamara, John A. Gleason, William S. Marshall, Henry Y. L. Toh, Donald Jasensky, Peter T. Zackaroff, Mallory Factor, and Thomas F. Carney, Jr. On May 29, 2002, the complaint was amended to include class action allegations. The Zadra Amended Complaint contains allegations similar to those in previous Delaware actions concerning the Board's approval of the employment agreement with James McNamara, option grants and past and future compensation to the Director Defendants, and the ZoomLot transaction. The Amended Complaint seeks a declaration that as a result of approving these transactions the Director Defendants breached their fiduciary duties to NAC, a judgment enjoining defendants from proceeding with or exercising the option agreements, rescission of the option grants to defendants, if exercised, an order directing the Director Defendants to account for alleged profits and losses obtained by the Director Defendants as a result of the alleged various acts complained of, awarding compensatory damages to NAC and the class, together with prejudgment interest, and an award of costs and expenses. By order of the Delaware Chancery Court on November 12, 2001, the Academy, Markovich and Harbor Complaints were consolidated under the title "In re National Auto Credit, Inc. Shareholders Litigation," Civil Action No. 19028 NC (Delaware Chancery Court) ("Delaware Consolidated Action") and the Academy Complaint was deemed the operative complaint. The parties in the New York action thereafter engaged in settlement negotiations and the parties entered into a stipulation of settlement in December 2002, proposing to settle all class and derivative claims. In January 2003, the New York Supreme Court entered an order which, among other things, conditionally certified a class of shareholders for settlement purposes, approved the form of notice of the proposed settlement, and scheduled a hearing to approve the settlement. Notice of the proposed settlement was given to the shareholders of the Company and members of the class as per the court's order in January and February 2003. Hearings on the proposed settlement were held on May 13, 2003 and October 15, 2003. Subsequent to the October 15, 2003 hearing, the New York Supreme Court approved the terms of the proposed settlement and issued the court's written Order and Judgment in December 2003. Certain Plaintiffs in the Delaware Consolidated Action have objected to the terms of the settlement and have filed an appeal with the Appellate Division of the New York Supreme Court, First Division (the "NY Appellate Court"). A motion to dismiss the Delaware Consolidated Action was also filed in 2002 and was denied by the Delaware Chancery Court in January 2003. In January 2004, NAC re-filed a motion to dismiss the Delaware Consolidated Action based upon the New York Supreme Court's written Order and Judgment issued in December 2003. The Delaware Chancery Court has previously stayed further proceedings in the Consolidated Action pending issuance of the New York Supreme Court's order. In April 2004, oral arguments were presented to the Delaware Court regarding NAC's motion to dismiss. As of September 10, 2004, no decision has been made by the Delaware Chancery Court. NCI BUILDING: TX Court Approves Securities Fraud Suit Settlement ---------------------------------------------------------------- The United States District Court for the Southern District of Texas granted approval to the settlement of the consolidated securities class action filed against NCI Building Systems, Inc. and certain of its officers, as a result of the Company's restatement of its financial results for the last half of fiscal 1999, all of fiscal 2000 and the first quarter of fiscal 2001. In the consolidated complaint, the plaintiffs allege, among other things, that during the financial periods that were restated, the Company made materially false and misleading statements about the status and effectiveness of a management information and accounting system used by the Company's components division and costs associated with that system, failed to assure the system maintained books and records accurately reflecting inventory levels and costs of goods sold, failed to maintain internal controls on manual accounting entries made to certain inventory-related accounts in an effort to correct the data in the system, otherwise engaged in improper accounting practices that overstated earnings, and issued materially false and misleading financial statements. The plaintiffs further allege the individual defendants traded in the Company's common stock while in possession of material, non-public information regarding the foregoing. The plaintiffs in the consolidated complaint assert various claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and seek unspecified amounts of compensatory damages, interest and costs, including legal fees. On March 15, 2002, the Company filed a motion to dismiss plaintiffs' consolidated complaint and a memorandum in support. The Company and the individual defendants deny the material allegations in the complaint. In January 2004, the Company entered into an agreement to settle the lawsuits, without admitting to any of the allegations against the Company or its officers, and agreed to pay $7.0 million for the dismissal of all claims, which is within the Company's insurance coverage limits and has been agreed to by the Company's insurance carriers. NCR CORPORATION: Recalls 78T Refill Kits Due To Ingestion Hazard ---------------------------------------------------------------- NCR Corporation, of Dayton, Ohio is cooperating with the United States Consumer Product Safety Commission by voluntarily recalling about 78,000 NCR Universal Inkjet Refill Kits. The product does not have required child-resistant packaging or required warning labels. The product contains ethylene glycol, posing an ingestion hazard to young children. The recalled kits were sold in a clear plastic package with color or black ink. The black ink kits have model numbers 943264 and 999292 and the color ink kits have model number 999289 printed on the side panel above the UPC code. The two black inkjet sets contain four plastic bottles of black ink, two plastic bottles of cleaning fluid and one toolkit. The color inkjet set contains six plastic bottles of colored ink, two plastic bottles of cleaning solution and one toolkit. Manufactured in China, the refill kits were sold at Big Lots and Walgreens nationwide from April 2004 through June 2004 for about $12. Consumers should immediately remove the kits out of the reach of young children and return to the store where purchased to receive a refund or a free replacement kit. Consumer Contact: Contact NCR Corporation at (800) 279-0203 between 8 a.m. and 4:30 p.m. ET Monday through Friday, e-mail the firm at systemedia.info@NCR.com or visit the firm's Web site at http://www.ncr.com NEW JERSEY: Assembly Passes Bill Banning Junk Food in Schools ------------------------------------------------------------- New Jersey's Assembly committee approved legislating banning "junk food" from all public elementary and middle schools in the state, the Associated Press reports. Under the bill, the sale of foods that are defined as having minimal nutritional value by the United States Department of Agriculture would be banned from being sold until 30 minutes after the end of the school day. These items include candy bars, chewing gum and anything made up of 35 percent sugar or contains more than 8 grams of fat. Schools would only be allowed to have vending machines selling whole grain foods, juice, water, milk and similar products available during the school day. Items that are home-baked and sold for fund-raising purposes would be exempt. "Public schools need to be a place where both healthy minds and bodies are created," said Assemblyman Craig Stanley, D-Essex, a co-sponsor of the bill, AP reports. "Sugary, fat-laden foods have no place in our schools." The sponsors of the bill state it will help stop obesity in children. The Centers for Disease Control and Prevention said the obesity rate for children and adolescents has more than doubled in the last 30 years. The bill passed by the Assembly Education Committee now goes to the Assembly speaker for consideration for a floor vote, AP reports. NEW ZEALAND: 18 Ex-Inmates To Join Rights Lawsuit V. Corrections ---------------------------------------------------------------- 18 more former inmates of New Zealand's Corrections Department controversial Behavior Management Regime filed applications in High Court, alleging violations of their human rights, the New Zealand Herald reports. The plaintiffs are seeking compensation, which could amount to millions of dollars. Wellington-based human rights lawyer Tony Ellis filed the applications on behalf of the inmates who asked him to represent them. "I'm contemplating filing what colloquially would be called a class action on behalf of the other number which in total would be 200 (including the 18)," he told the Herald. Earlier this month, Justice Ron Young of the High Court in Wellington awarded about $130,000 to five former inmates who endured months of solitary confinement under the regime. In the September 2 decision, Christopher Taunoa, who is serving a life sentence for the 1996 murder of Sanson publican Keith Lynch, was awarded $55,000, aggravated robber Alistair Robinson got $40,000, Lesley Tofts $25,000, Mathew Kidman $8000 and Steven Gunbie $2000. Justice Young awarded the compensation on the basis of $2500 for each month inmates had spent under the regime. Mr. Ellis said that it was not yet clear how he could get every one of the 200 inmates' consent to represent them or whether he could seek the leave of the court to represent them. He told the Herald it wouldn't be possible to get all the inmates' consent before government legislation was introduced stopping them seeking compensation so he had to seek leave. The legislation was ordered by the Justice Department, after victims of the inmates expressed outrage that the inmates were getting compensation while they didn't get any. Justice Minister Phil Goff has instructed his department to urgently draft laws stopping compensation claims but the legislation will not be retrospective. Mr. Ellis told the Herald that looking at the amounts given in the previous ruling, the 18 applicants would be in line for around $500,000. In terms of all inmates who had been in the regime, "some of them would have been there six months, some of them would have been in there in the early days and not in there for long at all. It still runs into what must be multiple millions of dollars." He added that it was important for the inmates to move quickly. "No doubt my clients are concerned that if they don't make a claim they might be caught by some new legislation that the Government introduces," he told the Herald. Mr. Ellis hoped not all claimants would have to go through the court system. "I would have thought the reality of it was that once the Taunoa appeal is completed, whatever the result is it would cry out for a settlement of the action on behalf of all the others rather than processing it through the court system," he said. "The court has made a ruling that BMR (behaviour management regime) was an inhuman regime and (the inmates) are asking for the compensation that was due to them because of being held in that unlawful regime . I don't think that anybody that was kept in that regime didn't feel their human rights were being breached. It's just unfortunate that nobody listened to them." NORTHWEST AIRLINES: Transportation Dept Drops Privacy Complaint --------------------------------------------------------------- The Department of Transportation (DOT) dismissed a privacy complaint filed by the Electronic Privacy Information Center (EPIC) against Eagan-based Northwest Airlines Corporation, the Associated Press reports. The 16-page ruling, which offered a point-by-point justification for Northwest's actions, stated that the Company breached no one's privacy when it shared passenger data with federal researchers weeks after the September 11 attacks. According to Samuel Podberesky, assistant general counsel for aviation enforcement, Northwest didn't violate its privacy policy and even if it had, the policy was unenforceable because he said Northwest is required to share passenger data with the government upon request. The Transportation Department's ruling further stated that Northwest's disclosure hurt no one and that the only allegation of injury "is that certain Northwest customers did not expect that a small group of NASA researchers would have access to their travel plans, and were disappointed when they learned they had." EPIC had pointed out that Northwest promised not to "sell" passenger data to third parties. On this account, Mr. Podberesky stated that "sell" means just that, and leaves open the possibility of sharing data for research, or with the government. Aside from Northwest other carriers like JetBlue Airways Corporation and AMR Corporation, the parent of American Airlines also admitted disclosing passenger data. However, Northwest passengers were taken by surprise by the airline's announcement. In September 2003, Northwest Chief Executive Richard Anderson and a spokesman had said separately that Northwest had not shared data, apparently in response to questions about the JetBlue incident. Mr. Podberesky stated that the statements might have unintentionally mischaracterized Northwest's past practice, but that no one had been harmed because the passengers in question had flown two years before the statements were made. Northwest spokesman Kurt Ebenhoch said the company didn't have immediate comment on the ruling. EPIC officials on the other hand said it would request a review of the decision. OPTIO SOFTWARE: Accepts NY Securities Fraud Lawsuit Settlement -------------------------------------------------------------- Optio Software, Inc. conditionally accepted the settlement for the securities class action filed against it, certain of its officers and directors and certain of the underwriters in the Company's initial public offering. The suit, styled "Kevin Dewey vs. Optio Software, Inc., et. al.," was filed on behalf of persons purchasing Optio’s common stock between December 14, 1999 and December 6, 2000 and seeks class action status. The complaint includes allegations of violations of: (1) Section 11 of the Securities Act of 1933 by all named defendants, (2) Section 12(a)(2) of the Securities Act of 1933 by the underwriter defendants, (3) Section 15 of the Securities Act of 1933 by the individual defendants, and (4) Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the underwriter defendants The complaint alleges that Optio's prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the underwriters allocated to those investors material portions of a limited number of Optio shares issued in connection with the Optio initial public offering; and (ii) the underwriters had entered into agreements with customers whereby the underwriters agreed to allocate Optio shares to those customers in the Optio initial public offering in exchange for which the customers agreed to purchase additional Optio shares in the aftermarket at pre-determined prices. The complaint seeks unspecified amounts as compensatory damages as a result of Optio's alleged actions, as well as punitive damages and reimbursement for the plaintiff's attorney's fees and associated costs and expenses of the lawsuit. A proposal to settle the claims against Optio and other companies and individual defendants in the litigation was conditionally accepted by Optio. The completion of the settlement is subject to a number of conditions, including Court approval. Under the settlement, the plaintiffs will dismiss and release all claims against participating defendants in exchange for a contingent payment guaranty by the insurance companies collectively responsible for insuring the issuers in the action, and the assignment or surrender to the plaintiffs of certain claims the issuer defendants may have against the underwriters. Under the guaranty, all the insurers for all the issuers will be required to pay an amount equal to $1.0 billion less any amounts ultimately collected by the plaintiffs from the underwriter defendants in all the cases. The disposition of this matter is limited to Optio's $300,000 corporate insurance deductible. The Company has completed payment of the insurance deductible through payment of legal fees. PHILIP MORRIS: Judge Grants Class Status to "Lights" Suit in OH --------------------------------------------------------------- The 9th District Court of Appeals Judge James Kimbler certified a class action lawsuit against Phillip Morris Tobacco Company, allowing residents in northeast Ohio to participate, NewsNet5.com reports. According to the judge, he certified that the case also involves a violation of the Ohio Consumer Sales Practice Act. The alleged violations are related to the company's advertising of certain cigarettes as "light" or "low in tar," both of which are inaccurate. The certification of the suit means that residents in Medina, Ashland, Cuyahoga, Lorain, Summit or Wayne counties can get involved. The class action lawsuit seeks recovery of the purchase price of cigarettes by consumers as well as attorney fees. PHILIP MORRIS: Marlboro Lights Suit Granted Class Status in MO -------------------------------------------------------------- Circuit Court Judge Michael David in St. Louis, Missouri allowed a lawsuit against Philip Morris USA over the tar and nicotine content of Marlboro Lights to proceed as a class action, the Associated Press reports. The lawsuit accuses Altria Group Inc.'s Philip Morris USA of misrepresenting the amount of tar and nicotine contained in Marlboro Lights. However, the judge placed limitations on those who can participate in the case. Judge David limited those eligible to join to Missouri residents who purchased and smoked Marlboro Lights cigarettes from November 9, 1995, five years before the original filing of the suit, through December 31, 2003. The judge also excluded Missouri residents who already have filed a personal injury claim as a result of cigarette smoking. PHOSPHATE RESOURCE: DE Court Orders Investor Suits Consolidated --------------------------------------------------------------- The Delaware Chancery Court ordered consolidated the class actions filed against Phosphate Resource Partners L.P. (PRP), IMC Group, Inc., and certain directors of PRP and Phosphate Resource Partners Limited Partnership Company (PLP), relating to IMC's December 23, 2003 announcement that it was considering the merger of an affiliate of IMC with PLP, with each publicly held partnership unit in PLP being converted into the right to receive 0.2 shares of IMC common stock (PLP unit exchange). On December 30, 2003, a suit, styled "Martin Weber v. J. Reid Porter, et. al.," was filed in Delaware Chancery Court claiming that IMC, PRP, the directors of PRP and PLP breached their fiduciary duties to PLP's public limited partners as a consequence of the announcement on December 23, 2003 that IMC had offered to acquire all of the Partnership units not held by IMC and its affiliates. The lawsuit also asserted "The proposed acquisition is an attempt by (IMC) to unfairly aggrandize itself at the expense of (PLP's) public limited partners" and that "The proposed acquisition will, for inadequate consideration, deny plaintiff and the other members of the class their right to share proportionately in the future success of (PLP) and its valuable assets, while permitting (IMC) to benefit wrongly from the transaction." The plaintiff, on behalf of the class of all unitholders of PLP (except for the defendants and their affiliates) is seeking, among other things, to enjoin the transaction or, to the extent that the transaction is consummated, to rescind the transaction, and monetary damages in an unspecified amount. On January 16, 2004, another suit, styled "M. A. Metropole v. J. Reid Porter, et. al.," was filed in Delaware Chancery Court against IMC, PRP and the directors of PRP, each individually as a conspirator and aider and abettor and, in the case of the directors, in their capacity as directors and/or officers of PRP. The complaint asserted that the defendants breached their fiduciary duties to PLP's public limited partners as a consequence of the announcement on January 15, 2004 by IMC's Board of Directors that it had authorized IMC management to communicate a proposal to PLP to acquire all PLP's publicly held units at a price that, according to the plaintiff, is materially inadequate giving due consideration to PLP's growth and anticipated operating results, net asset value and future profitability. The lawsuit further asserts that: (1) the intrinsic value of the units of (PLP) is materially in excess of the $2.15 per unit being proposed, giving due consideration to the possibilities of growth and profitability of (PLP in) light of its business, earnings and earnings power, present and future; (2) the $2.15 per unit price is inadequate and is a discount to the present market value of (PLP's) units; and (3) the $2.15 per unit price is not the result of arm's- length negotiations, but was fixed arbitrarily by (PRP) to "cap" the market price of (PLP's) units, as part of a plan for the defendants to obtain complete ownership of (PLP's) assets and business at the lowest possible price. The plaintiff, on behalf of the class of all unitholders in PLP (except for the defendants and their affiliates) is seeking, among other things, to enjoin the transaction or, to the extent that the transaction is consummated, to rescind the transaction, and monetary damages in an unspecified amount. On January 22, 2004, another suit, styled "Sidney Resnick v. Phosphate Resource Partners Limited Partnership, et. al.," was filed in Delaware Chancery Court claiming that IMC, PRP, the directors of PRP and PLP breached their fiduciary duties to PLP's public limited unitholders as a consequence of the announcement on January 15, 2004 that IMC had made a proposal to acquire all of the outstanding units of PLP that IMC did not already own. The lawsuit also asserted "The Transaction will benefit defendants at the expense and to the detriment of PLP's unitholders, who will be deprived of their equity investment and benefits including, among other things, the expected growth of PLP," that "(PRP's) directors have clear and material conflicts of interest and are acting to better the interests of IMC at the expense of PLP's unitholders" and that "The Transaction represents an effort by defendants to aggrandize their financial position and interests at the expense, and to the detriment, of the members of the Class." The plaintiff, on behalf of the class of all unitholders of PLP (except for the defendants and their affiliates) is seeking, among other things, to enjoin the transaction or, to the extent that the transaction is consummated, to rescind the transaction, and monetary damages in an unspecified amount. On February 9, 2004, the Delaware Chancery Court for the County of Newcastle approved an Order of Consolidation consolidating the Weber, M.A. Metropole and Resnick actions into a single action, styled "In Re Phosphate Resource Partners Limited Partnership Litigation (C.A. No. 145-N)" and ordering that the plaintiffs in all three actions file a single consolidated amended complaint. On February 9, 2004, another suit, styled "Magnus E. Olsen and Jean E. Olsen v. J. Reid Porter, et.al.," was filed in Delaware Chancery Court claiming that IMC, PRP and PLP breached their fiduciary duties to PLP's public limited unitholders as a consequence of the announcement on January 15, 2004 that IMC had made a proposal to acquire all of the outstanding units of PLP that IMC did not already own. The lawsuit also asserted that "Under IMC's proposal, public unit holders would be forced out at a significant discount by their disloyal fiduciaries (at a price) without arms-length negotiation" and that since "Four of the seven members of the PRP board of directors are employed in high-ranking positions at IMC, the PRP-GP board suffers from debilitating conflict in fairly considering the proposed Transaction." The plaintiff, on behalf of the class of all unitholders of PLP is seeking, among other things, to enjoin the transaction or, to the extent that the transaction is consummated, to rescind the transaction, and monetary damages in an unspecified amount. It is anticipated that the Olsen action will be consolidated into the "In Re Phosphate Resource Partners Limited Partnership Litigation," the Company stated in a disclosure to the Securities and Exchange Commission. PIMCO FUNDS: Units Pay $11.6M To Settle SEC Mutual Funds Action --------------------------------------------------------------- The Securities and Exchange Commission instituted a settled enforcement action against PA Fund Management LLC (PAFM), PEA Capital LLC (PEA) and PA Distributors LLC (PAD) for failing to disclose to the PIMCO Funds Multi-Manager Series' (PIMCO MMS Funds) Board of Trustees (Board) and the PIMCO MMS Funds' shareholders material facts, including the conflict of interest that arose from their use of mutual fund assets to pay for "shelf space" arrangements. As part of the settlement, PAFM, the adviser for the PIMCO MMS Funds, PEA, the sub-adviser for seven of the PIMCO MMS Funds and PAD, the distributor for the PIMCO MMS Funds and other funds in the PIMCO fund complex, agreed to disgorge $6,602,000 of ill-gotten gains relating to their use of fund brokerage commissions to pay for shelf space arrangements. The disgorgement, which is to be paid jointly and severally by the three entities, will be distributed to the affected PIMCO MMS Funds. PAFM and PAD also agreed to pay, jointly and severally, a civil money penalty of $4 million, and PEA agreed to pay a civil money penalty of $1 million. PAFM, PEA and PAD further agreed to undertakings designed to improve compliance and disclosure, including monitoring the use of directed brokerage and disclosing conflicts of interest. The Commission's Order finds that between 2000 and 2003, PAD, with the knowledge and approval of PAFM, entered into shelf space arrangements with broker-dealers pursuant to which broker- dealers promised PAD that the mutual funds it distributed would receive heightened visibility within the broker-dealers' distribution systems. PAD, in return, agreed to pay the broker- dealers based upon individually negotiated formulas relating to gross fund sales and/or the retention of fund assets. Although most of the payments for shelf space arrangements were made in cash out of the assets of PAD, some were paid, in whole or part, by PEA directing brokerage commissions on the PIMCO MMS Funds' portfolio transactions. When shelf space payments were made through brokerage commissions, PAD was required to pay between 1.2 to 1.5 times the amounts that it would have paid in cash. By using brokerage commissions to satisfy its shelf space obligations, PAD was provided with a cost savings. The use of fund assets to benefit and in fact defray the expenses of PAD, a third party to the PIMCO MMS Funds, created a conflict of interest that PAFM, PEA and PAD should have disclosed to the Board and that PAFM should have disclosed to shareholders. In addition, PAD's failure to provide the Board with the necessary information regarding the use of brokerage commissions to pay for shelf space arrangements resulted in the PIMCO MMS Funds not describing in their Rule 12b-1 distribution plans these financing arrangements. Moreover, in directing the PIMCO MMS Funds' brokerage commissions to pay for shelf space arrangements, PAFM, PEA and PAD did not ensure that these commissions came from those funds that were promoted by the broker-dealers in connection with the arrangements. In failing to do so, the brokerage commissions paid by some PIMCO MMS Funds were improperly used to subsidize the distribution of the shares of other mutual funds in the PIMCO fund complex. The Order further finds that this conduct resulted in violations of the federal securities laws. In particular, PAFM and PEA violated, and PAD aided and abetted and caused PAFM's and PEA's violations of Section 206(2) of the Investment Advisers Act of 1940; PAFM violated Sections 15(c) and 34(b) of the Investment Company Act of 1940; PAFM, PEA and PAD violated Section 17(d) of the Investment Company Act and Rule 17d-1 thereunder; and PAD aided and abetted and caused the PIMCO MMS Funds' violations of Section 12(b) of the Investment Company Act and Rule 12b-1(b) thereunder and violated Rule 12b-1(d) also thereunder. PAFM, PEA and PAD have consented to the issuance of the Order, without admitting or denying the findings contained therein. They have also agreed to be censured and to cease-and-desist from committing or causing any violations and any future violations of the above-referenced provisions. This enforcement action has been coordinated with the Attorney General of the State of California. SOUTH CAROLINA: Patient Lodges Suit, Claims SRHS Overcharged Her ---------------------------------------------------------------- After being sued by the Spartanburg Regional Healthcare System for $10,000 in unpaid medical bills six months after giving birth, Melissa Doiron initiated a class action countersuit against the system, the Herald-Journal reports. The suit, which was filed by attorney John Hawkins claims that his client was overcharged for services and that hospital representatives refused to give her an estimate of her expenses until after she was discharged. The suit comes on the heels of three lawsuits filed last week in Columbia against three health-care systems, among them Health Management Associates, the owner of Upstate Carolina Medical Center, all claiming that the health-care systems routinely overcharge uninsured patients. According to Mrs. Doiron SRHS initially charged her $12,290.24, which was decreased by $1,963.39 when she requested an audit of her bill. Mrs. Doiron, whose insurance didn't cover maternity expenses, also claims she and the hospital were negotiating her charges when she received a letter in June stating the hospital planned to turn over her account to their attorneys for legal action, eventually leading to a lawsuit filed in August against her. Attorney Hawkins also claims that during his client's pregnancy she had inquired what the birth would cost her, and the hospital refused to give her the numbers. The Spartanburg attorney further claims that the SRHS waited until Mrs. Doiron signed a contract agreeing to pay her medical bill before they told her how much she owed. The SRHS for its part refused to comment about the countersuit citing that they could not divulge information on pending litigation. STRATOS LIGHTWAVE: Asks NY Court To Approve Securities Suit Pact ---------------------------------------------------------------- Stratos Lightwave, Inc. asked the United States District Court for the Southern District of New York to grant preliminary approval to the settlement of the consolidated securities class action filed against it, certain of its directors and executive officers, and the underwriters for the Company's initial public offering. The complaint is substantially identical to numerous other complaints filed against other companies that went public over the last several years. The complaint generally alleges, among other things, that the registration statement and prospectus from the Company's June 26, 2000 initial public offering failed to disclose certain alleged actions by the underwriters for the offering. The complaint charges the Company and two or three of its directors and executive officers with violations of Sections 11 and 15 of the Securities Act of 1933, as amended, and/or Section 10(b) and Section 20(a) to the Security Exchange Act of 1934, as amended. The complaint also alleges claims solely against the underwriting defendants under Section 12(a)(2) of the Securities Act of 1933, as amended. In 2003, the Company agreed to a Memorandum of Understanding, which reflects a settlement of these class actions as between the purported class action plaintiffs, the Company and the defendant officers and directors, and the Company's liability insurer. Under the terms of the Memorandum of Understanding, the Company's liability insurers will pay certain sums to the plaintiffs, with the amount dependent upon the plaintiffs' recovery from the underwriters in the IPO class actions as a whole. The plaintiffs will dismiss with prejudice their claims against the Company and its officers and directors, and the Company will assign to the plaintiffs certain claims that it may have against the underwriters. The plaintiffs have filed with the court a motion for preliminary approval of the settlement, which, if granted, will lead to the mailing of class-wide notices of the settlement and a hearing date for approval of the settlement. SYNOPSYS INC.: Shareholders Lodges Stock Fraud Suits in N.D. CA --------------------------------------------------------------- Synopsys, Inc. faces a securities class action filed in the United States District Court for the Northern District of California, styled "Kanekal v. Synopsys, Inc., et al., No. C-04- 3580." The suit also names as defendants certain of the Company's officers. The suit alleges violations of the Securities Exchange Act of 1934. The complaint purports to be a class action lawsuit brought on behalf of persons who acquired the Company's stock during the period of December 3, 2003 through August 18, 2004. The complaint alleges that the individual defendants caused the Company to make false and misleading statements about the Company's business, forecasts, and financial performance, and that certain Company officers or employees sold portions of their stock holdings while in the possession of adverse, non- public information. The complaint does not specify the amount of damages sought. TENNESSEE: Judge Issues Restraining Order V. Sex Offender Law ------------------------------------------------------------- U.S. District Judge Todd Campbell issued a temporary restraining order arising from a legal challenge to a new Tennessee law that prohibits a Nashville sex offender from living and working within 1,000 feet of a school or day-care center and makes him liable for criminal prosecution if he violates the law, The Tennessean reports. According to court records, "John Doe," who was convicted of sexual battery in 2000, filed a federal suit seeking class action stats under a pseudonym because he believes that identifying himself would leave him open to state prosecution under a law that he contends is unconstitutional. Furthermore, he fears retribution from his employer and the community if his name were to become known. For the purposes of the hearing, Judge Campbell allowed the plaintiff to continue to be known publicly as "John Doe," however the federal judge does know the plaintiff's identity via a sealed affidavit that only he is privy to. Since the lawsuit has not been certified as a class action, Judge Campbell issued a temporary restraining order that applies only to the plaintiff in this case. He also made no findings on the constitutionality of the state law. In the hearing, the state had argued against the temporary restraining order by claiming that the plaintiff had not shown that he would probably suffer immediate or irreparable harm without the order. The state further argues that the restraining order was unnecessary at this time because if the plaintiff were ever charged criminally, he could raise his constitutional claims in state court at that time. For the moment Brent Horst, the plaintiff's attorney and lawyers from the state Attorney General's Office are preparing for a hearing later this month to determine whether a preliminary injunction preventing the state from enforcing the law is necessary. TEXAS: Houston Reaches $72M Settlement in Paramedic's Wage Suit --------------------------------------------------------------- According to the mayor of Houston, the city will pay $72 million dollars to settle a 9-year-old overtime class action suit filed by paramedics invalidating an earlier proclamation to appeal unfavorable rulings in the case, the Houston Chronicle reports. Mayor Bill White said he changed his mind because the city could have been ordered to pay as much as $116 million if it lost future appeals in the lawsuit, which was filed in 1995 and spans overtime claims from 1986 to 1999. Attorney Troy Blakeney, who represents the 2,600 paramedics in the suit, said that the awarded sums could range from $500 to tens of thousands of dollars depending on how much overtime they worked without proper compensation. Mr. Blakeney also said that he would recommend his clients accept the proposed settlement, which appropriates between one-fourth to one-third of the amount to legal fees. Mayor White said the money would be paid within two years through the issuance of $50 million in judgment obligation bonds, with the remaining money possible coming from either insurance settlements related to Tropical Storm Allison or real estate sales. The mayor also said that to further accommodate the settlement the city might have to postpone some capital improvement projects. The settlement is the largest payout for overtime violations to a fire department in the country's history with the previous high amount being $13.5 million in Chicago back in 1995. UNITED STATES: U.S. Senate Asked To Block New Overtime Rules ------------------------------------------------------------ Labor allies are pushing the United States Senate to block new overtime rules, pushed by the Bush administration, that they say could prevent 6 million American workers from getting the bonus pay, the Associated Press reports. Last Thursday, the Republican-led House voted 223-193 to prevent the Labor Department from implementing the new rules, which took effect on August 23. The vote underscored the sensitivity Republicans from labor districts have on the issue. The Democrats oppose the amendments saying they would hurt 6 million workers, including chefs, nurses, police officers, journalists, athletic trainers, lower-level computer employees and those who perform small amounts of supervisory work. The White House and the Labor Department disputed this, saying that the new rules clarify who is entitled to overtime and would reduce confusion that has led to expensive lawsuits. The Bush administration says about 107,000 white-collar workers making $100,000 or more could lose eligibility. The new regulations - the most dramatic overhaul of overtime rules in five decades - also would require overtime pay for workers earning up to $23,660, AP reports. That is triple the annual salary above which overtime was previously required, an increase the Labor Department said would protect 1.3 million workers. Sen. Tom Harkin, D-Iowa, told AP he would take the first step in that direction Wednesday by forcing the Senate Appropriations Committee to take a campaign-season vote on whether to block the rules. He thinks he has a good chance of prevailing at the committee, which Republicans control by just one vote. Among its members are Sen. Arlen Specter, R-Pa., who faces re-election in November in a strong labor state and who voted against the regulations in May, AP reports. Asbestos Alert ASBESTOS LITIGATION: Chamber of Commerce Raises Lobbying Budget --------------------------------------------------------------- The U.S. Chamber of Commerce, the country's top advocacy group for business, has increased its lobbying budget, spending US$20 million in the first half of this year, almost US$4 million more than it spent in all of 2003. The amount represents the largest six-month sum spent by a lobbying organization since Congress required lobbyists to disclose their expenditures in 1996. The sudden increase in spending may have resulted from congressional interest in two of the Chamber's foremost goals: limiting class action suits and capping asbestos litigation. These issues were intensely debated in the Senate earlier this year. Ultimately, the class action bill did not pass while the asbestos issue still is the subject of heated negotiations between business and labor groups. "Class action and asbestos were two monumentally important issues to the Chamber. As those bills continue to be debated, that would probably represent a significant expenditure," said Bill Miller, the group's political director. Larry Noble, executive director of the Center for Responsive Politics, said that this could reflect an overall increase in corporate lobbying spending but that it could also signify a desire to enact some of the group's signature issues this year before a new administration possibly assumes next year. The Chamber expects that a Kerry administration would be hostile to the group's agenda of legal reform, which includes the class action and asbestos issues along with curbs on medical malpractice suits. If that is the case, the money spent may be futile because neither the asbestos nor the class-action bill passed and it is unlikely that much besides appropriations bills will receive attention during Congress's abbreviated session this fall. ASBESTOS LITIGATION: Congress Backs Fines for Frivolous Lawsuits ---------------------------------------------------------------- A U.S. House of Representatives panel approved a bill imposing fines on lawyers for filing frivolous lawsuits, acting on a priority President Bush emphasized at a Republican Party convention. The House measure is the latest in a series of Republican attempts at limiting the deluge of lawsuits that Bush says are "threatening jobs across America." "We all know it's about an election," said Rep. William Delahunt, a Massachusetts Democrat, just before the vote. Democrats are suggesting that the latest House bill was intended to highlight lawsuit abuses on the current election campaign that incidentally happens to feature a trial lawyer, Sen. John Edwards of North Carolina, the Democratic vice presidential candidate. The measure by Texas Republican Rep. Lamar Smith would impose fines for lawsuits considered by judges to be frivolous, in violation of federal rules of civil procedure. The penalty would often be the cost of defending the frivolous claim. Opponents noted the Judicial Conference of the United States, the federal judiciary's policymaking group, had written to the committee pointing out that the same approach had been tried in 1983 and repealed in 1993. Other critics said they agreed with making sanctions mandatory for frivolous lawsuits, but objected to another part of the bill limiting "forum-shopping" by plaintiffs looking for the best court in which to file a case. Senate leaders, meanwhile, said that they were still trying to agree on a framework for an asbestos compensation fund, but had not spanned differences on issues such as whether some claims would be left in court while the fund is established. "I'm still hopeful that before the end of this year, we can complete our work," said Senate Democratic Leader Tom Daschle. ASBESTOS LITIGATION: Russian Govt Cancels Asbestos Export Duty -------------------------------------------------------------- The Russian government has cancelled an export duty on asbestos, said the government press service. Prime Minister Mikhail Fradkov signed the corresponding resolution on September 6. The export duty currently amounts to 3%. The resolution will come into effect one month after its official publication. ASBESTOS LITIGATION: HSE Advises Contractors to Take Precautions ---------------------------------------------------------------- The Health and Safety Executive has told maintenance contractors and other employers to take proper precautions for work in buildings where asbestos may be present. The timely warning follows the prosecution of Asahi Glass Fluoropolymers Ltd of Thornton Cleveleys. The company was fined GBD3,000, with GBD1,490 costs, following an HSE investigation into the removal of ceiling tiles containing asbestos during the refurbishment of their Lancashire factory. HSE inspector Peter Gray said: "This shows the need for a precautionary approach to work on materials suspected of containing asbestos. The work should be supervised and executed by competent staff, with contingency measures in case asbestos is inadvertently discovered." ASBESTOS LITIGATION: Eurobodalla Council Rejects Hardie Boycott --------------------------------------------------------------- Eurobodalla Shire Council rejected a move by Councilor Chris Kowal seeking to gain support by asking contractors and shire staff not to use Hardie products as an attempt to avoid funding of legitimate claims of asbestos victims. Councilor Kowal pointed out that the Bega Valley Shire Council and other councils had implemented the consumer boycott a few weeks ago. He said there was a significant likelihood the health issues could affect Shire residents and there could even be ex- employees of James Hardie Industries retired in the area. "Simple home renovations involving banging a nail into old asbestos particle board, or unwittingly sanding off asbestos board before painting can result in airborne particles of asbestos being ingested, causing the deadly cancer mesothelioma," he said. Councilor Kowal also cited the fibro water pipes used in Council's reticulation systems. Community Works director Guy Brantingham took up the water pipe point, saying asbestos ingested was quite safe. ASBESTOS LITIGATION: WA Building Demolition Delayed By Asbestos --------------------------------------------------------------- The demolition work on a building in downtown Sunnyside may now resume after it was halted this summer due to the discovery of asbestos. Several businesses were forced to move three years ago when the outer wall of the building began to bulge. It has since been declared dangerous. Sunnyside city leaders have been monitoring the progress of the demolition, and had placed a deadline. It does not pose a threat to public health at this time. ASBESTOS LITIGATION: IL State Ban on Asbestos Fliers Challenged --------------------------------------------------------------- The Dunesland Preservation Society will be arguing its case in Lake County Circuit Court that the state is violating members' First Amendment rights by not permitting them to display a warning pamphlet about asbestos at Illinois State Beach Park. Judge David Hall will be holding the hearing on September 21. The organization prepared its own pamphlet using information from state and federal agencies after the more dangerous friable pieces of asbestos was discovered on the beach last month. Asbestos has been detected in the air as well. Pamphlets were displayed at the beach years ago when a similar incident occurred in 1988. The state eventually discontinued the pamphlets but warning signs about asbestos still abound. Joe Bauer, a spokesman for the Illinois Department of Natural Resources, said the signage at the park is sufficient and officials have been assured by the state's public health and environmental agencies that public health is not threatened. Paul Kakuris, president of the Dunesland Society, said the state is infringing on the group's "free speech" rights since there are other health-related brochures and fact sheets available to the public. "It's not only a high-handed outrage and a threat to public health, but is also another effort by state officials to cover- up the role they played in the beaches' pollution," said Mr. Kakuris. "Information isn't dangerous. Let them find out and let them debate it. People are going to make an informed decision," commented Charles Nyangiti, a beach visitor originally from Kenya. ASBESTOS LITIGATION: HSE Study Reveals Alarming Asbestos Deaths --------------------------------------------------------------- The latest Health and Safety Executive statistics show that UK deaths linked to asbestos will be at their highest in the region between 2011 and 2015. The next decade may claim thousands of people as they succumb to asbestos-related lung disease mesothelioma. Along with this, claims for compensation are expected to rise as well. The revelation has prompted a leading expert in industrial disease cases in the region to demand that the Government increase medical research into treatment for mesothelioma. There were about 1,600 deaths from mesothelioma in the Northeast and North Yorkshire between 1981 and 2000, which amounts to 10% of all deaths from the disease in England and Wales. Particular hotspots are all parts of Tyneside and Stockton, where there were 107 deaths. There were also about 200 deaths of women in the same area over the same period. Experts say research is vital to enable victims of the condition to recover proper compensation when companies or their insurers responsible for exposing them to asbestos dust cannot be traced or are insolvent. Roger Maddocks, a partner at the Newcastle-based personal injury law firm Irwin Mitchell, said last night, "Diagnosis of mesothelioma is almost invariably followed by death within three years." According to HSE figures, more than two million people suffer from work-related ill health. Of these, 6,000 people died of cancer in 2002 due to past exposures at work. Of those cases, 1,800 were attributed to mesothelioma and 100 to asbestosis. The annual number of deaths in the UK from mesothelioma has increased from 153 in 1968 to 1,862 in 2002 and is not expected to peak for another several years. Mr. Maddocks said, "Because of the long time lag between exposure to asbestos and development of mesothelioma, typically anything between ten and 50 years, many victims or their families will face difficulties in the future." ASBESTOS LITIGATION: 9/11 Health Report Urges Action, Study ----------------------------------------------------------- An official U.S. government study provides startling information regarding the possible health affects from pollution after the 9/11 disaster, which doctors fear will cause more deaths than the attacks themselves. According to the report, up to 400,000 New Yorkers breathed in the most toxic polluting cloud ever recorded in the U.S. that fateful day, but the government has yet to make a comprehensive effort to study the effects on their health. The Bush administration allegedly suppressed evidence of increasing danger and officially announced that the air around the Twin Tower buildings was "safe to breathe." Another report states that it has since failed "at least a dozen times to retract its assurances, even when it became clear that people were becoming sick." The official report sent to Congress by the U.S. Government Accountability Office says that between 250,000 and 400,000 people in lower Manhattan were exposed to the pollution. Scientific studies have shown that the cloud of pulverized debris from the skyscrapers was uniquely dangerous. The U.S. government's own figures show that it contained the highest levels of deadly dioxins ever recorded - about 1,500 times normal levels. Unprecedented levels of acids, sulfur, fine particles, heavy metals and other dangerous materials were also measured. Asbestos was found at 27 times acceptable levels, and scientists found about 400 organic alkanes, phthalates and polyaromatic hydrocarbons - many suspected of causing cancer and other long- term diseases. As the site at Ground Zero went on smoldering, it became what scientists describe as a "chemical factory", allegedly creating new dangerous substances. ASBESTOS LITIGATION: Alert Put on Asbestos Dump in UK Hospital -------------------------------------------------------------- Construction of a chemotherapy unit and a 24-bed ward came to an abrupt halt at the Antrim Area Hospital when it was discovered that asbestos had been dumped in the site. Apparently, three or four large sheets of asbestos-containing board were hoisted over a fence causing these to shatter on impact and release potentially dangerous fibers. Site manager Chris Fletcher immediately recognized the substance and cordoned the area. He then called in Eastwoods, the specialist company behind the controversial proposal for an asbestos storage facility in Crumlin, to make the area safe. A team arrived a short time later and removed the sheeting, gently bagging it and placing it in a sealed container. Mr. Fletcher said that the disturbing development was far from unique and it is getting more common on building sites as asbestos is very expensive to get rid of. "It was broken so it would have posed a hazard to anyone in the direct vicinity. There's no doubt that it was reckless in the extreme," Mr. Fletcher said. SDLP councilor Donovan McClelland praised the company's swift response, but launched a blistering attack on the people who sparked the alert. "This is straightforward criminal activity and I hope whoever is responsible is apprehended and faces the full rigors of the law," Mr. McClelland said. A spokesperson for United Hospitals Trust stressed that the risk to the public had been minimized. ASBESTOS LITIGATION: Reinsurers Warned to Brace for More Claims --------------------------------------------------------------- Reinsurers will have to significantly increase their reserves for claims covering asbestos-related illnesses, three leading credit ratings agencies warned recently. They have lagged behind insurers, which raised their asbestos provisions in 2002 and 2003. The British Insurance Brokers' Association estimates that the amount paid out could reach US$200billion (GBD110billion), with insurers and reinsurers picking up about 60% of the bill. Stephen Searby, credit analyst at Standard & Poor's, said, "Some reinsurers will look to top up their asbestos provision as the past few years have seen an acceleration in asbestos-related claims." Asbestos is the single biggest cause of claims to the insurance and reinsurance industry. In comparison, the amount of money paid out for September 11 was about US$21billion. Michael Barry, managing director of Fitch Ratings Agency's US office, said that over the past 12 months, insurers have set aside about US$10billion more for asbestos claims but reinsurers have increased their reserves by "nowhere near that figure." He said one reason why insurers were more proactive about the asbestos provisions was because they were dealing directly with companies being sued and therefore had more information about the extent of the claims. "Reinsurers are on the hook here," he said. "At some point there will be material reserve strengthening for asbestos as insurers will be asking reinsurers for money. If they do not set up reserves for that money, it will be a marked hit to surplus in the future." Stuart Shipperlee, AM Best managing director, added, "With adverse development most commonly recognized in the third and fourth quarters, it would be very optimistic to assume that no further bad news will emerge from the reinsurance market over the coming months." ASBESTOS LITIGATION: UK Council Alerted to Asbestos-based Tiles --------------------------------------------------------------- Contractors wearing protective clothing moved into a West Park property to clear the asbestos-based floor tiles after they were discovered during carpet-laying operations. Council officials reassured its residents of their safety. Meanwhile, the council is now carrying out a survey of its housing stock across the district in a bid to establish the full extent of the problem. Sue Wherry, who lives in the affected house with husband Clive, said she had nothing but praise for the way in which the council had handled the situation. "They bent over backwards to help us, but it did come as a bit of a shock. They obviously realized what the problem was straight away and made arrangements for us to move out while they put things right," Mrs. Wherry said. Apparently, the tiles had been in place since the house was built some 50 years ago. This makes it highly likely that other houses could be affected in the same way. A spokesman for North Cornwall District Council said it was possible some types of tiles found in council properties such as those at West Park could contain small amounts of asbestos. "There is no major problem or health risk when the tiles are intact and you don't need a licensed contractor to deal with them. However, if the tiles are being broken up and removed, as in this case, it is good practice to wear protective clothing and masks as our contractors did, just in case the tiles contain any asbestos," said the spokesman. ASBESTOS LITIGATION: Asbestos Alarms UK Primary School to Action ---------------------------------------------------------------- An asbestos scare prevented the Crockerne Primary School from opening promptly at the start of the term. The North Somerset Council called in a specialist to deal with the contamination while a temporary building was set up in Nailsea to accommodate the 150 children. These children, aged 8 to 11, are commuting by bus each day to Four Oaks Infant School on Silver Street, Nailsea, seven miles away. The company doing the asbestos-removal expects that the school will be completely reopened by the start of the next term on November 1. Crockerne head teacher Lara Furmidge said, "Everything is going as well as can be expected in this sort of situation. Things seem to be very well organized and we have had a lot of support from North Somerset Council which we are thankful for." ASBESTOS LITIGATION: French Govt Sets Up Asbestos Association ------------------------------------------------------------- A work group has been set up in the French National Assembly to improve treatment for those suffering from asbestos-caused cancer. The two UMP deputies behind the group, Yves Cousin and Jean Lemi�re, are both from the Manche, where the naval industries in Cherbourg are based. The Cherbourg area claims about 12,000 people with this type of cancer. ASBESTOS LITIGATION: Unsafe Removal Causes Renovation Shutdown -------------------------------------------------------------- The Occupational, Health and Safety Department stopped renovation work at Scott's Motor Sport, after it was confirmed that workers were removing asbestos without taking proper safety precautions. Darlene McCurdy, manager of the inspections division for the Western region, says the type of asbestos in the building is the least dangerous because fibers aren't easily released from it. However, a registered asbestos abatement contractor will have to deal with any possible safety risk. "They will go in and be properly attired to ensure that there are no fibers breathed in by any of the workers. And they will just remove the material and have it bagged and taken for disposal," says Ms. McCurdy. McCurdy says renovation work can continue in other sections of the building where there is no asbestos. ASBESTOS LITIGATION: Asbestos Fears Put Off Coventry Projects ------------------------------------------------------------- As the cost of asbestos removal is too high, city councilors have decided to adopt new policies for future building projects. Since a number of high-profile projects went over budget due to this issue, the most notable being the revamp of Coventry Motor Museum, a careful examination will have to be done before the approval of any renovation. Only buildings put up after 2000 are exempted from this inspection, as these are certain to be asbestos-free. An initial contract for GBD72,000 to remove asbestos around some heaters ended up topping GBD500,000 and taking months. Conservative leader Tim Sawdon later said in hindsight it would have been better to knock the museum down completely and start from scratch. The new rules say the council has to do a visual inspection of all the buildings and document all its findings. Dust samples will be analyzed but no walls will be drilled in case asbestos, which is safe, is disturbed and made unsafe. Experts will assess the amount of asbestos and then make a judgment about how much might be hidden in inaccessible parts of the building. If they decide the risk is remote, they have to log their reasons. If they think there is likely to be a lot, they have to look carefully at the funds available before the project is approved. The new rules mean councilors will have to decide whether to modify the project, or abandon it completely if they think the potential cost of dealing with unseen asbestos will be too high. ASBESTOS LITIGATION: Builder Calls for Home-Demolition Control -------------------------------------------------------------- A one-man crusade, Mike Wilson, hopes to convince his neighbors and eventually the whole county to impose control over home demolitions, as he believes these expose the neighborhood to potential health dangers. DuPage County, unlike neighboring Cook County, has no laws protecting neighborhoods from dust particles like asbestos that can be released during teardowns. Armed with a new home video, he claims the builder on it was unaware of danger posed by the dust from a torn-down home. The structure was next to a park where the toxic dust could likely settle, making exposure to more people possible. Wilson said, "It'll contain asbestos and lead and all sort of bad materials for the kids . when they do abatement in the school they're very careful about it and yet here, kids are totally exposed to this material." Wilson is a homebuilder who is about to tear down a house in West Chicago. But in an effort to prove his point, he's going to do it safely. He believes the solution lies in hiring a demolition contractor who is trained and licensed in asbestos abatement. Total cost of testing and disposing of asbestos in the floor tiles and ceiling of one house was US$2,900, a small price to pay for the safety of others. Mr. Wilson is scheduled to show his home video to the Glen Ellyn Village Trustees -- the first step in what he ultimately hopes will instigate the implementation of a new law requiring asbestos abatement before homes are torn down. ASBESTOS LITIGATION: Army Casts Asbestos Removal Onto Authority --------------------------------------------------------------- The authority charged with privatizing the Savanna Army Depot faces the challenge of asbestos abatement. The authority had asked the army to remove asbestos from the buildings but the army's policy is to remove only asbestos that is a threat to human health and the environment. David Ylinen, authority executive director, says, "Because the buildings contain asbestos, disposing of them will be very expensive. We were wishing and hoping the Army would be more supportive." Asbestos becomes a health threat when it is being removed as part of demolishing buildings, and the Army will not pay for abating asbestos in buildings that are to be destroyed. Using the authority's reinvestment funds to abate asbestos would deplete the amounts available for making other improvements, marketing the base and creating jobs. The funds come from selling and leasing former depot property. The Army and the authority had met for a series of discussions this past couple of months. The authority has talked publicly during committee meetings about allowing the aging barracks to deteriorate rather than spend funds to remove them. The authority apparently also discussed the buildings during a closed meeting on September 1. "It was part of the closed session today," authority board chairman John W. Rapp Jr. said during the meeting, adding that it could have an impact on title to the property. The authority closed its board meeting to set the price for sale or lease of property and to discuss pending, probable or imminent litigation. ASBESTOS LITIGATION: Weston Council Split Over Asbestos Issue ------------------------------------------------------------- Weston Town Council is weeks away from sealing the deal to buy a town center theater, but conservative councilors believe a full investigation should take place before the purchase is completed. In a survey done last October, the investigators took nine samples of material from various parts of the building. Five came back as non-asbestos and should be no risk. Two came back as chrysotile and that poses very low risk. The remaining two turned up as amosite and was considerably high risk. A town council spokesman said, "These last two were from a small amount of debris left behind when asbestos was removed from the building many years ago by the trust. It will cost GBD2,500 to have that cleared, which will happen shortly." The Blakehay in Wadham Street is currently owned by Weston Trust, a building preservation organization, but the town council is buying it for GBD195,000. At a town council meeting, a decision was made on which councilors would finalize the purchase agreement. Councilor John Ley-Morgan said, "I think we are extremely unwise to press ahead with the almost immediate exchange of contracts when we are alerted to the threats of potential dangers and likely costs, which could be huge. I would urge councilors to reconsider this matter and delay the exchange of contracts until we have got more information available." Mayor Councilor Astra Brand said, "It had been agreed that we were going to buy The Blakehay and still have to run with it." Town council leader Councilor David Evans said, "We will be seen in the same light as other authorities by delaying this. Any ramifications will be seen in a true light at a future date." ASBESTOS LITIGATION: Scientist Defends the Use of White Asbestos ---------------------------------------------------------------- Dr. Jacques Dunnigan, a scientist and researcher in asbestos, and a long-time former director for health and environment for the Asbestos Institute, discusses the "myths" surrounding the use of asbestos products. Dr. Dunnigan considers chrysotile or white asbestos as the safest variety of asbestos used commercially. He stresses that asbestos fiber can be an occupational risk only when it becomes airborne and its dust is inhaled in excessive amounts for a prolonged period. For that matter, he insists excessive amount and prolonged exposure make virtually all respirable materials potential health risks. He specifically indicates that chrysotile asbestos cement products are safe since cement "locks in" asbestos fibers firmly within the matrix in chrysotile asbestos cement products hence these fibers cannot escape into the atmosphere under normal conditions of use, posing no risk. He elaborates, "All studies conducted among workers in manufacturing plants of asbestos cement products using exclusively chrysotile or white asbestos have not shown any deaths due to exposure to asbestos, where proper controls are in place." Another issue for contention would be the Western studies that point to asbestos as the culprit in a rare form of lung cancer, mesothelioma. He believes that these studies were born out of relative ignorance about asbestos health hazards. To respond to the controversy, he rationalizes that occurrence of these diseases today is due to heavy exposure in the past and long latent periods to manifest. In India, only chrysotile fiber is used and the exposure levels are less than 1 fiber/cc, which is 50 to 100 times lower than that in the past in western countries. He believes such low doses couldn't cause any asbestos-related disease. Dr. Dunnigan considers India's use of chrysotile in cement sheets highly-commendable as these are cost-effective and have a life of more than 60 years, have properties similar to hard concrete-like material, need negligible maintenance and insulate heat and noise. "The low costs are unmatched by any available roofing product," he adds. ASBESTOS LITIGATION: Police Issue Warning Over Bridgnorth Fire -------------------------------------------------------------- Bridgnorth Police urged the residents to stay indoors after the roof of a building believed to contain asbestos caught fire in the town center. Police warned them not to venture outside unless necessary and to secure all the openings of the house. Richard Emery, a representative of the Bridgnorth Police, said emergency services stayed at the scene until the evening. The building, believed to be a shed, is a 100m x 40m timber property. A spokesman for Shropshire Fire Service, said, "Because of the risk of asbestos we are reiterating the police's plea for people to stay indoors until the blaze is extinguished." Health officials are still carrying out investigations at the site of the fire. While staff at Shropshire Country Council's social services building were evacuated, many stood in the streets watching the drama unfold. ASBESTOS LITIGATION: UK Companies Neglect Asbestos Obligation ------------------------------------------------------------- Risk management specialist, Line International, is strongly advising companies that they must act upon the new asbestos "Duty To Manage" legislation, which took effect last May. The warning comes as Line International is discovering that companies are still unaware they are exposing employees and the public to asbestos. As a result of past exposure to asbestos, as many as 3,500 people in Britain die each year from mesothelioma and asbestos- related lung cancer. The new Health and Safety Executive legislation means that all UK businesses must take reasonable steps to identify materials which contain asbestos and create a plan setting out how the risks from the materials are being managed. Brian Carpenter, managing director of Line International, said, "We are concerned that many companies do not realize they even have asbestos materials on their premises. But every company in Britain is responsible for the asbestos material it may have on the premises and has a legal duty to manage the risk from this material." Peter Corbett of the HSE explained, "Asbestos was used extensively as a building material from the 1950s through to the mid-1980s. Although some of this material has been removed over the years, we estimate that over half-a-million non-domestic premises currently have some form of asbestos in them." The duty to manage asbestos in non-domestic premises requires those in control to prepare and implement a risk assessment and a management plan that should be properly documented and reviewed every six months. ASBESTOS LITIGATION: CT Official Gets Probation on Asbestos Case ---------------------------------------------------------------- Michael Saad, a former director of economic development in Plainfield was sentenced to two years probation and fined US$1,000 for violating federal asbestos regulations in the demolition of a former factory building. He barely escaped the maximum sentence for that offense which is five years in prison and up to US$250,000 in fines. U.S. Attorney Kevin O'Connor, reached by phone after the sentencing, said that while he respects Dorsey's decision, he was "very disappointed with the sentencing." "The government asked for a term of imprisonment, which we feel is the best deterrent for those who violate environmental law," Mr. O'Connor said. Prosecutors said Michael Saad and Vermont contractor Edward Carroll knew asbestos was present in the former InterRoyal Mill when Mr. Carroll began demolishing a portion of the structure four years ago. As part of an agreement with the government, Mr. Carroll testified against Mr. Saad. Mr. Carroll pleaded guilty to two counts of unlawful demolition before the removal of asbestos and was sentenced last year to two years' probation and 100 hours of community service. He was also fined US$200. ASBESTOS LITIGATION: Probe Started into the Asbestos Industry ------------------------------------------------------------- This documentary, broadcast in August, is about "corporate murder, premeditated and on a massive scale." Joan Baird and Pauline Bonney, both widows, lost their husbands to asbestos- induced mesothelioma. The news organization ITN followed the quest of these two courageous women as they investigate the reasons why their loved ones had died-a journey that takes them to asbestos factories, and all the way to the mines in the Northern Cape Province of South Africa. In the documentary, Pauline Bonney talks to UK cancer specialist Dr. Ken O'Byrne. He tells her that while a low level of exposure to asbestos is less likely to produce morbidity, there is no such thing as a safe level of contamination. In the UK, 50,000 people have died since 1968 after exposure to asbestos. It is estimated that the total of asbestos-related deaths will reach 150,000. In the United States, there are 10,000 asbestos-related deaths each year. There has never been a prosecution or health and safety inquiry into a single asbestos-related death of a worker in South Africa. The link between asbestos and cancer is well known by the companies and South African government. Cape Asbestos funded a study into the effects asbestos has on health in 1960, the results of which were suppressed by the government. UK lawyer John Pickering indicates a criminal conspiracy of silence when he explains that companies and governments have known since the 1920s that asbestos causes serious illness, yet the public and workforce were never made aware of this. Though the supply and use of asbestos were almost entirely banned in the UK in the 1980s, this did not end the danger of new contamination. There are approximately 4.5 million premises both industrial and domestic containing asbestos in the building material. When these buildings begin to deteriorate, asbestos fibers may be released. Since the use of asbestos was banned in many western countries, the trade in death has moved to the underdeveloped world. Canada exports 300,000 tons of white chrysotile asbestos each year to countries like India, Chile and Thailand, where it is processed without safety controls or the use of respirators. The Canadian government, with the support of Russia, the largest producer of asbestos, and 13 other asbestos-producing countries, managed last year to block the consideration of a worldwide ban on the import of white chrysotile. ASBESTOS LITIGATION: Insurers React To Rising Asbestos Claims ------------------------------------------------------------- While the United States Senate has expressed its willingness and commitment to solving the asbestos litigation problem facing the country, insurers remain under a siege of asbestos-related claims. Insurers have approached asbestos litigation with renewed vigor by implementing new strategies. In an attempt to reduce the expense of handling asbestos claims, some insurers have sought to settle large groups of claims with both their insureds and underlying plaintiffs' counsel while other insurers have decided to pursue litigation against other insurers in an attempt to share the costs associated with asbestos claims. Many insurers have imposed proof requirements and established guidelines in the asbestos context. This new effort by insurers and reinsurers to require specific proof of "bodily injury" before coverage will be provided has been the subject of litigation and private arbitration around the country. A recent Illinois state court's decision adds to the questions raised concerning whether an insurer may impose documented proof of loss requirements that may not otherwise be clearly required by an insurance policy. In Everest Reinsurance Co. v. Maremont Corp., No. 03CH10905, Ill.Civ., Cook Co., the court ruled that an excess insurer could not question the exhaustion of underlying insurance by examining asbestos-related claims under newly-devised documentation requirements. Although only a state district court opinion, insurers will pay particular attention to this decision. The asbestos litigation problem in the insurance coverage context is now, in some ways, most problematic for umbrella and excess liability insurers. Seeking to protect policy limits, umbrella and excess insurers have become determined to investigate whether underlying settlements include claims made by unimpaired claimants. This Court's decision reinforces that an insured merely needs to show that a settlement was made with reasonable anticipation of liability. Since the stakes are high, we can continue to expect both insurers and reinsurers to question settlements involving large groups of asbestos claims until there is a more significant set of controlling cases addressing this issue. ASBESTOS LITIGATION: Shares Up on Breakthrough in Asbestos Fund --------------------------------------------------------------- Shares of companies facing asbestos claims rose last Wednesday after a breakthrough was reported on the size of the asbestos victims' fund. U.S. Senate Democratic leader Tom Daschle matched a proposal by Republican leader Bill Frist and agreed to a US$140 billion amount for an asbestos victims' compensation fund. This agreement breaks a deadlock that has stalled the legislation in Congress. Shares of McDermott International Inc. rose more than 5% to US$12 in afternoon trade on the New York Stock Exchange. W.R. Grace and Co. shares climbed 4% to US$9.45, while the stock price of Federal-Mogul Corp. rose more than 5% to 20 cents. Sen. Frist and Sen. Daschle are working on the outlines of a fund that would take asbestos claims out of the courts and could be written into legislation this year. Previously, Sen. Daschle indicated that the asbestos fund should be set up with US$145 billion from business and industry and existing asbestos trusts. In a further compromise, Sen. Daschle held back his insistence that existing asbestos claims be allowed to work their way through court if the plaintiff does not want to turn to the new fund for payment. "We can't support something we think will fail the victims. At the end of the day, it isn't about reaching agreement, it's about putting in place a program that compensates victims with asbestos disease," said Peg Seminario, the occupational health official of American Federation of Labor-Congress of Industrial Organizations. Sen. Daschle said that if Congress cannot reach agreement this year, the Senate should make a thorough review of new information on asbestos, including data on projected claims. ASBESTOS LITIGATION: Asbestos Risk Forces AR Clubhouse to Close --------------------------------------------------------------- The Bella Vista Country Club has been shut down until it can be determined if friable asbestos-containing materials are present. Employees were in the middle of one project, but had to stop when it was determined that some ductwork in the area where workers were working may contain ACMs. "We have not heard anything from the Arkansas Department of Environmental Quality," said Tommy Bailey, Property Owners Association general manager. "The Occupational Safety and Health Administration has not contacted us and I don't expect them to. OSHA deals with employees," Mr. Bailey added. "I'm not willing to open the clubhouse until we've resolved all of the issues." Until surveys of each facility can be conducted to determine the presence of friable ACMs, maintenance functions at the other facilities will remain halted. As there is a need to determine compliance issues, one of the POA's current employees has volunteered to become a certified asbestos inspector and will undergo training. ASBESTOS LITIGATION: Software to Manage and Inspect Asbestos ------------------------------------------------------------ Hazmat Inspector is a software program that allows the inspection and management of asbestos-containing materials for an unlimited number of buildings and clients while simultaneously forming the core of a client asbestos management plan. Every environmental service or property management firm encounters the issue of high cost during the initial inspection process, follow-up surveillances and day-to-day management of ACMs for their clients. Hazmat Inspector eliminates the need for redundant data entry and paper forms. It provides central program and data access allowing critical data to be securely shared in real time by third party vendors or clients instantly using desktop PC, Tablet PC, Palm or Pocket PC mobile wireless handheld devices. Basebridge will actually brand the service so it looks like a service offered by the environmental service or property management firm. Users can synchronize wirelessly in the field or via the synchronization cradle connected to a PC. The software uses an SQL database on the Pocket PC and Palm OS handheld devices allowing users to carry the complete building history in the field, simplifying follow-up surveillances. With the upsurge of asbestos-related diseases, US and Canadian government legislation requires building owners and managers to develop and maintain a register of ACMs within their buildings. ASBESTOS LITIGATION: AU Unions Take Hardie Protest to the U.S. -------------------------------------------------------------- Australian labor unions will take their protest over James Hardie Industries NV's funding shortfall for asbestos victims to the U.S. seeking to extend their boycott of the company's building products to its largest market. Last June, KPMG estimated James Hardie's asbestos liabilities to be AUD$1.57 billion (US$1.1 billion). The company allocated only AUD$293 million in 2001 to a foundation to meet all compensation claims. Victims groups have rejected an offer by James Hardie to fully compensate sufferers of asbestos-related diseases if the New South Wales government changes laws to reduce the company's legal costs. Unions and victims protested at a shareholders meeting in Sydney and will march outside the company's U.S. headquarters in Mission Viejo, California. James Hardie gets 80% of its profit from the U.S. ``The U.S. is a critical market for James Hardie and it's important that U.S. unions and consumers are made aware of the appalling way this company has treated Australian asbestos victims,'' Australian Council of Trade Unions Secretary Greg Combet said. ``It has been the position of the company, and it remains its position, that at the time, and contrary to what is now alleged to be the company's motivation, the board believed there would be sufficient funds to meet all future claims,'' Ms. Hellicar said. The move to the Netherlands ``was driven by the company's increasing global focus,'' she said. ``It was not driven by a desire to run away from asbestos liabilities.'' Shares of James Hardie have dropped 31% since October 29, the day before the fund first said it didn't have enough money to pay all victims' claims. Australian building unions and some city councils in New South Wales, the country's biggest state, are boycotting James Hardie products. Thousands of construction workers and asbestos victims marched through Sydney to the shareholder meeting, carrying pictures of friends and colleagues who have died from asbestos-related diseases. ASBESTOS LITIGATION: Hardie Expresses Regrets in Annual Meeting --------------------------------------------------------------- The Board of James Hardie Industries should have offered extra funding to asbestos victims years ago, its new chairman, Meredith Hellicar, has told shareholders. The company had consistently refused to meet a shortfall in compensation for asbestos diseases, based on legal advice that it was not obligated. The annual meeting was a venue for apologies, admission of mistakes and acknowledgement that the company had misjudged how badly its reputation could be shattered by the NSW Government inquiry into its handling of asbestos compensation. But any remedial action will not come until the Government releases the report. The barrister who headed the inquiry, David Jackson, QC, is due to give it on September 21. Ms. Hellicar refused to speculate on the future of the company's chief executive, Peter Macdonald, who made an address on operational matters but took no questions, or the chief financial officer, Peter Shafron, who made no public appearance. "Mr. Macdonald has our support and we are not going to act precipitously because anyone can stand up in that commission and say whatever they like," Ms. Hellicar said. There would be board changes regardless of the contents of the report, although she was unenthusiastic about a suggestion from the NSW secretary of the Australian Manufacturing Workers Union, Paul Bastian, that a representative of asbestos victims should be appointed. However, she was keen on Mr. Bastian's suggestion that the company fund a public education campaign around the country. Hardie, whose share price has slumped by about a third since October, has said it will fund all claims, though it wants to trim nearly AUD$800 million in legal and judicial costs associated with insurance estimates. "The share price is impacted by this issue," Ms Hellicar said. "Even if the shareholders were not willing to accept the proposal on moral grounds alone ... it will help the company go forward and grow and be reflected in the share price." The Australian Council Trade Union secretary, Greg Combet, said the company should not lose its focus on profitability. "It's obviously very important that the company is in a financial position to be able to meet what we see as its obligations to the victims." ASBESTOS LITIGATION: Lend Lease to Fight WTC Asbestos Lawsuit ------------------------------------------------------------- Lend Lease is confident insurance will cover any claims even if it loses a multibillion-dollar US class-action lawsuit launched by workers involved in the clean-up of the World Trade Centre site after the September 11 terrorist attacks. The lawsuit seeks compensatory and punitive damages for injured workers, plus billions of dollars to fund a continuing medical testing plan for 100,000 or more potential victims exposed to toxic substances. Lend Lease spokesman Roger Burrows said that while directors had not yet received the claim, the board was confident of a favorable resolution. Mr. Burrows said yesterday that the US Government had set up a "captive insurance company" shortly after the attacks to cover any future compensation claims by workers employed on the site. "Who that covered included us and a number of other companies and authorities. We have no reason to believe that the insurance put in place by the US Government for that purpose would not cover any potential claim," said Mr. Burrows. ASBESTOS ALERT: Kelly-Moore Blames Union Carbide for Illnesses -------------------------------------------------------------- Kelly-Moore Paints, which has become a target in asbestos cases, claims that Union Carbide committed fraud when it failed to disclose the dangers of the asbestos it sold for use in several of Kelly-Moore's interior finishing products. "I think the evidence will show you that Union Carbide never did a lick of homework to show that its products were safe," attorney Mark Lanier told the 23rd District Court jury. This trial has gotten the attention of lawyers around the country, and the largest courtroom in the Brazoria County Courthouse was packed to watch one of Houston's top plaintiff attorneys, representing a company he once sued, square off against the giant chemical company. As it is faced with 48,000 suits, the survival of Kelly-Moore could rely on the outcome of this trial. In this US$1.4 billion asbestos-related suit, Mr. Lanier has said the company would use any proceeds from a favorable verdict to pay asbestos claimants and legal costs. Mr. Lanier told jurors Union Carbide denied information to the public since it was aware of asbestos dangers as early as the 1930s. Fast on the defense, attorneys for Union Carbide claim that information about asbestos hazards had become common knowledge by 1964, the first year the company sold any to Kelly-Moore. They also insist product information for Calidria, the trade name for its chrysotile asbestos, and supporting documentation over the years contained significant medical disclaimers. Finally, they said Union Carbide supplied only a small portion of Kelly-Moore's asbestos needs. "This case is about excuses," said attorney Peter Bicks. "This lawsuit is Kelly-Moore's excuse." COMPANY PROFILE Kelly-Moore Paint Company, Inc 987 Commercial St. San Carlos, CA 94070 Phone: 650-592-8337 Fax: 650-508-8563 http://www.kellymoore.com Employees : 2,300 Sales : $325,000,000.00 (est.) Sales Growth : 7.1% (est.) (As of December 31, 2003) Description: Kelly-Moore produces nearly 20 million gallons of paint per year at each of its four manufacturing facilities and has more than 160 stores in 10 states west of the Mississippi River. The regional firm sells more than 100 types of paints, finishes, and accessories to professional contractors and painters and to the do-it-yourself market. ASBESTOS ALERT: Arizona Companies Cited Due To Asbestos Dumping --------------------------------------------------------------- The Arizona Department of Environmental Quality filed notices of violation against three companies and two people for allegedly dumping asbestos material. Investigators found more than 1,000 bags of asbestos material at a site southwest of Yuma. The violations were issued to International Environmental Corporation, based in Tempe; Southwest Hazard Control, Inc., from Tucson; Environmental Management Consultants, from Phoenix; San Pedro Martinez, from Yuma; and Pete Auza, from Yuma. Two of the companies cited, International Environmental and Southwest Hazard Control were contractors that removed asbestos from buildings in Maricopa County. According to ADEQ Director Steve Owens, the two companies worked with National Environmental Services - which has since gone bankrupt - to dispose of the material. Environmental Management Consultants operated a laboratory at which materials containing asbestos was generated. "In this situation, there was never a risk posed to surrounding residents because the ADEQ staff moved so quickly to contain and secure the site," Mr. Owens said. "Had the disposal not been addressed quickly, had our staff not been on the scene quickly, a risk could have been posed to the community." The companies and individuals have 30 days to respond to the notice and explain why they shouldn't be held in violation. Company Profile: International Environmental Corporation 316 S. 52nd Street, Suite 101 Tempe, AZ 85281 Phone: (602) 241-6600 Fax: (602) 967-2232 http://www.iecweb.com/ Description: IEC's qualifications make it a prime candidate for consideration to provide services on asbestos and lead abatement projects. The company has full occurrence insurance with limits up to $5,000,000 from an insurance company with an A+ rating. IEC has Treasury listed bonding along with 100% payment and performance bonds up to US$10,000,000. Southwest Hazard Control Inc 2500 N Coyote Dr Tucson, AZ 85745 Phone: (520) 622-3607 Description: Southwest Hazard Control Inc. (SHC) is a financially sound, growth-oriented environmental remediation company. It is the oldest, continuously operating asbestos abatement company in Arizona. SHC established itself as a hazardous materials remediation company in 1985 and began lead abatement services in 1991. Environmental Management Consultants 9830 S 51st St Phoenix, AZ 85044 Phone: (480) 940-5294 Description: In July 2004 Environmental Resources Management (ERM) was ranked as the largest "all-environmental" consultancy in the world. The company is one of the world's leading providers of consulting services and have 100 offices in 37 countries employing 2,500 staff. The company delivers innovative solutions for leading business and government clients, assisting them in managing their environmental and related risks. ASBESTOS ALERT: Ground Zero Team Files Suit Over Health Effects --------------------------------------------------------------- On the last day before the three-year statute of limitations expired, 800 plaintiffs filed a class action case against Silverstein Properties, the leaseholder of the towers, and the four companies who led the site cleanup, for allegedly exposing its workers unnecessarily to dangerous debris. David Worby, a lawyer for the plaintiffs, says that the victims are seeking billions of dollars in compensation as well as the formation of a system that will track for the next 20 years all those who were exposed. The lawsuit claims they were not taught safety procedures and that many of these cleanup and rescue workers did not have access to protective gear making them vulnerable to the dust, asbestos, and other toxins in the air. While some of the plaintiffs suffer from afflictions ranging from tumors to heartburn, many say they show no symptoms from their work at the site, but have joined the suit because they fear they risk developing cancer in the future. "The tragic reality is that so many of the brave heroes who worked so tirelessly and unselfishly are becoming a second wave of casualties of this horrific attack, and we're only seeing the tip of the iceberg," Mr. Worby said. Howard Rubenstein, a spokesman for trade center leaseholder Larry Silverstein, said the cleanup was conducted by the city and the Federal Emergency Management Agency. "We had no control over that operation and no ability to supervise what safety precautions were taken," he said. The other defendants said they had not seen the complaint and had no immediate comment. Previously, the Centers for Disease Control and Prevention released a study showing that many recovery workers suffered from respiratory problems long after the cleanup concluded, and that some still battle ailments. Proper respiratory gear would have allowed the workers to block out smoke, dust, diesel exhaust, pulverized cement, glass fibers, asbestos and other chemicals and prevent throat and lung diseases, according to the CDC study. It found that only about one in five of the workers wore respirators while they worked at the site. The four companies that led the cleanup were Turner Construction, AMEC Construction, Tully Construction and Bovis Lend Lease. According to AMEC's Web site, the company stationed safety experts on site during the cleanup and provided respirators, hard hats and safety goggles to workers. COMPANY PROFILE Silverstein Properties, Inc 530 5th Ave. New York, NY 10036 Phone: 212-490-0666 Fax: 212-687-0067 http://www.silversteinproperties.com Silverstein plans to rebuild what was a landmark and will surely become a national shrine regardless of its physical incarnation. The major New York City commercial landlord built Seven World Trade Center in 1987 and won, with Westfield America, a 99-year right-to-lease of the World Trade Center from The Port Authority of New York and New Jersey in summer 2001; Silverstein controlling the office space, Westfield the retail. Silverstein intends to rebuild all of the commercial space lost in the 2001 attacks. The centerpiece of the redeveloped site will be Freedom Tower, slated to be open by 2009. Turner Construction Company 375 Hudson St. New York, NY 10014 Phone: 212-229-6000 Fax: 212-229-6390 http://www.turnerconstruction.com Description: Turner Construction has turned heads for more than 100 years with its projects. The company that built Madison Square Garden has ranked among the leading general builders in the US since WWI. Providing construction and project management services, it works on commercial and multifamily buildings, airports, stadiums, and correctional, entertainment, and manufacturing facilities. Founded in 1902 by Henry C. Turner, the company is the main operating unit of The Turner Corporation, which is a subsidiary of German construction group HOCHTIEF. AMEC plc 65 Carter Ln., London EC4V 5HF, United Kingdom Phone: +44-20-7634-0000 Fax: +44-20-7634-0001 Employees : 45,901 Sales (2003) : 7,863,300,000.00 Sales Growth : 52.6% Net Income : 106,700,000.00 This engineering and construction giant proves that a wide variety of services can coexist. AMEC keeps a balance of operations in capital projects, investment, and services. Its capital projects businesses provide design and engineering services to the manufacturing, process, and services industries worldwide. The firm is active in private finance initiative projects for the infrastructure, health, and property industries, as well as for governments. AMEC's services sector provides facilities management, engineering, and environmental and architectural consulting. Tully Construction Co Inc 12750 Northern Blvd. Flushing, NY 11368 Phone: 718-446-7000 Fax: 718-446-6072 Sales (2002) $500,000,000.00 Tully Construction began as Tully & DiNapoli Inc., a one-truck coal-hauler, in the 1920s. The contractor builds highways and operates asphalt, trucking, and recycling segments, but entered into the spotlight as the prime contractor for cleanup and utility restoration work at the World Trade Center in New York after the September 11 attacks. Tully also partnered with A.J. Pegno Construction to rebuild subway tunnels below the WTC. The company is broadening its scope, working with New York's MTA to rebuild the transit line between the WTC site and New Jersey. The family-owned and managed company is run by four brothers, the grandsons of cofounder Edward Tully. Bovis Lend Lease York House, 23 Kingsway, London WC2B 6UJ, United Kingdom Phone: +44-20-7379-0222 Fax: +44-20-7395-7678 http://www.bovislendlease.com Description: Bovis Lend Lease is a key player in the global construction market. A subsidiary of Australian real estate firm Lend Lease, Bovis provides project management and construction services for nearly every project phase, including consultation, design/build services, and construction management. Bovis Lend Lease operates in about 40 countries, offering management services for commercial and residential, government, industrial, infrastructure, and sports and entertainment projects. ASBESTOS ALERT: Sensus Metering Systems Faces Asbestos Lawsuit -------------------------------------------------------------- Sensus Metering Systems-North America Inc., a subsidiary of Sensus Metering Systems, along with more than 200 other companies, is a defendant in several lawsuits filed in various state courts in Mississippi. Several groups of plaintiffs claiming to suffer from asbestos-related illnesses are seeking unspecified compensatory and punitive damages. It is unclear whether the alleged victims dealt with any of the subsidiary's products or with an asbestos-containing component of the product. It's yet to be determined also whether such a component could have been a contributing factor to the illness. So far, one proceeding has been dismissed. No other settlements, verdicts, judgments, or dismissals of these claims have transpired. According to the stock purchase agreement for the acquisition of Invensys Metering Systems, such indemnities, when aggregated with all other claims, are limited to the purchase price paid in connection with the acquisition. The company stresses that these legal proceedings will not have an adverse impact on their business, financial condition or operations. However, it is not ruled out that unexpected developments in the proceedings, an increase in the number of new cases, or changes in the current insurance arrangements may result in such liabilities. Company Profile: Sensus Metering Systems, Inc. 1501 Ardmore Blvd. Pittsburgh, Pennsylvania 15221 UNITED STATES Phone: 724-439-7850 Fax: 724-430-3959 Description: The Sensus Metering Systems Inc. companies are world-class providers of high-value metering and Automatic Meter Reading (AMR) solutions for water, gas, electric, and heat utilities as well as sub-metering entities worldwide. They are the leading manufacturers of water and wastewater treatment products for the municipal and industrial markets including computer software, meters, turbines, encoders, and instrumentation. New Securities Fraud Cases BENNETT ENVIRONMENTAL: Murray Frank Lodges Securities Suit in NY ---------------------------------------------------------------- The law firm of Murray, Frank, & Sailer LLP initiated a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of Bennett Environmental Inc. ("Bennett" or the "Company") (AMEX:BEL) common stock during the period from June 2, 2003 through July 22, 2004, inclusive (the "Class Period"). The complaint alleges that Bennett and certain of its senior officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the Class Period -- of artificially inflating the price of Bennett's shares. More specifically, the complaint alleges that on June 2, 2003, the Company announced that it had received the largest contract in the Company's history. The press release stated that Bennett had been awarded a contract to treat approximately 300,000 tons of soil at the Federal Creosote Superfund Site in New Jersey. The company reported that it valued the contract, slated to be completed in 2005, at $200 million (Canadian). John Bennett, Bennett's Chairman and CEO, said, "This (contract), together with previously announced contracts, ensures that we will have a very successful year in 2003 and beyond in terms of meeting our financial and operation goals." In the seven months after the announcement, Bennett shares doubled in value. On July 22, 2004, Bennett announced that the contract performance by Army Corps of Engineering, the entity who awarded Bennett the contract, had been in question since August of 2003, despite the eleven months of releases and announcements by the company to the contrary. An unsuccessful bidder on the soil treatment contract had disputed the award, and, in the aftermath, the Company was clueless about the contract's status and the Army's future performance. In fact, the Company had to resort to Freedom of Information Act inquiries, among other things, to ascertain the contract's status. On this news, the stock price fell from $10.50 to $7.80, a 25% one-day drop and 64% off its Class Period high of $21.89. For more details, contact Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-mail: info@murrayfrank.com BIOLASE TECHNOLOGY: Murray Frank Lodges Securities Lawsuit in CA ---------------------------------------------------------------- The law firm of Murray, Frank & Sailer LLP initiated a class action lawsuit in the Central District of California on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired the securities of Biolase Technology, Inc. ("Biolase" or the "Company") (Nasadq:BLTI) between October 29, 2003 and July 16, 2004, inclusive (the "Class Period"). The Complaint charges Biolase and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Biolase's financial performance artificially inflated the Company's stock price, inflicting damages on investors. Biolase designs, manufactures and markets proprietary dental laser systems to dentists, oral surgeons and other specialists. On July 16, 2004, after the markets closed, Biolase reported preliminary results, which were below analysts' expectations for the second quarter of 2004, causing Biolase shares to plummet 27 percent on July 19, 2004. Plaintiff alleges the Company failed to disclose and misrepresented material adverse facts during the Class Period, which defendants knew or recklessly disregarded, including that: (1) Waterlase, the Company's best-selling laser system and primary product, was not gaining market share, and demand for the product was not increasing at the rates represented by defendants; (2) Biolase had introduced a lower-priced, entry level laser which was cannibalizing sales such that Biolase's reported earnings were false and misleading; (3) Defendants were concealing this decreasing demand by granting extended payment terms and price breaks; and (4) the Company would not achieve the earnings growth forecasted. For more details, contact Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-mail: info@murrayfrank.com DECODE GENETICS: Berman DeValerio Lodges Securities Suit in NY -------------------------------------------------------------- The law firm of Berman DeValerio Pease Tabacco Burt & Pucillo initiated class action in the U.S. District Court for the Southern District of New York against deCODE genetics, Inc. ("deCODE" or the "Company") (Nasdaq:DCGN) claiming the Company and two top officers issued misleading financial statements to the investing public on behalf of purchasers of deCODE common stock from October 29, 2003 through and including August 26, 2004. The lawsuit seeks damages for violations of federal securities laws and claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5. The complaint names as defendants: deCODE; Kari Stefansson, the Company's president and chief executive officer; and Lance Thibault, deCODE's chief financial officer and treasurer. The complaint alleges that, throughout the Class Period, deCODE artificially inflated its stock price by issuing false and misleading financial statements to the public. Specifically, deCODE concealed from investors that its period-end financial closing procedures were materially deficient and that the Company lacked adequate internal controls, the lawsuit says. As a result of these problems, deCODE improperly recognized revenue in violation of Generally Accepted Accounting Principles. On August 26, 2004, deCODE announced that its outside auditor had resigned because of the Company's failure to disclose the deficiencies with financial closing procedures. On this news, the price of deCODE stock fell 17% from a closing price of $6.58 per share on August 25, 2004 to $5.48 on August 30, 2004. Due to the inflated stock price, deCODE was able to raise net proceeds of $144 million from an April 2004 public offering of $150 million worth of convertible notes. For more details, contact Berman DeValerio Pease Tabacco Burt & Pucillo by Phone: (800) 516-9926 or visit their Web site: http://www.bermanesq.com/pdf/deCODEgenetics-Cplt.pdf KONGZHONG CORPORATION: Milberg Weiss Files Securities Suit in CA ---------------------------------------------------------------- The law firm of Milberg Weiss Bershad & Schulman LLP initiated a classs action lawsuit on behalf of purchasers of the American Depository Receipts ("ADSs") of KongZhong Corporation ("KongZhong" or the "Company") (NASDAQ: KONG) in or traceable to the initial public offering ("IPO") of KongZhong American Depository Receipts ("ADSs") conducted by KongZhong on or about July 9, 2004 through August 17, 2004, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act"). The action is pending in the United States District Court for the Southern District of New York, against defendants KongZhong, Yunfan Zhou (CEO and Chairman) and Nick Yang (President and Chief Technology Officer). The complaint alleges that the IPO prospectus (the "Prospectus") was materially false and misleading because it failed to disclose that KongZhong had violated the content rules in its agreement with China Mobile, China's largest mobile services provider, in June 2004 -- well before the Prospectus became effective on July 9, 2004. The Prospectus, though warning of potential risks relating to the breach of China Mobile's content rules, failed to disclose that, in fact, the Company had been in violation of China Mobile's content rules at the time of the IPO. On August 18, 2004, KongZhong issued a press release announcing that it had received a "notice of sanction" from China Mobile as a result of the Company's breach of China Mobile's content rules in June 2004. The penalty imposed was dire: China Mobile suspended approval of the Company's new product application until the end of 2004, and suspended approval of the Company's applications to operate in new platforms until June 30, 2005. In response to this announcement, the price of KongZhong common stock fell 16.5% in one day, from $6.39 per ADS on August 17, 2004, to $5.33 per ADS on August 18, 2004. The closing price of $5.33 per ADS represents a 46% decrease from the Offering price of $10 per ADS. At the filing of the complaint, the price of China mobile ADSs was approximately $7 -- 30% below the IPO price. For more details, contact Steven G. Schulman, Peter E. Seidman or Andrei V. Rado by Mail: One Pennsylvania Plaza, 49th fl., New York, NY 10119-0165 by Phone: (800) 320-5081 by E-mail: sfeerick@milbergweiss.com or visit their Web site: http://www.milbergweiss.com KVH INDUSTRIES: Bernstein Liebhard Lodges Sceurities Suit in RI --------------------------------------------------------------- The law firm of Bernstein Liebhard & Lifshitz, LLP initiated a securities class action lawsuit in the United States District Court for the District of Rhode Island, on behalf of all persons who purchased or acquired KVH Industries, Inc. (NASDAQ: KVHI) ("KVH" or the "Company") securities (the "Class") between October 1, 2003 and July 2, 2004, inclusive (the "Class Period"). Plaintiff alleges that, throughout the Class Period, defendants issued materially false and misleading statements regarding KVH's increasing financial results and the strong demand for its newly developed TracVision A5 and G8 satellite TV systems (the "TracVision systems"). As alleged in the complaint, these statements were materially false and misleading because they failed to disclose, among other things: (1) that defendants had "stuffed" the retail channels with overpriced TracVision systems; (2) that the Company's revenues were not growing by millions of dollars per quarter and the purported growth trends in the Company's revenues could not be sustained; and (3) that KVH had not realized any material cost reduction in the manufacture of its TracVision systems and would be forced to write-down its inventory of manufactured goods by millions of dollars. Plaintiff further alleges that defendants failed to disclose these adverse facts in order to complete a public offering of KVH common stock, raising more than $51.5 million in much needed capital. On or about July 6, 2004, before the market opened for trading, KVH stunned the investing public by announcing that it was slashing the retail price of its TracVision systems by more than 34% and taking a multi-million dollar write down of vendor purchase commitments and on-hand inventories to reflect the true value of KVH's TracVision systems sales. In pre-opening market trading, KVH common stock declined more than 19%, to open at $9.51 per share on July 6, 2004, a 49% decline from the public offering price just 4 months prior. For more details, contact Shareholder Relations Department of Bernstein Liebhard & Lifshitz, LLP by Mail: 10 East 40th Street, New York, NY 10016 by Phone: (800) 217-1522 or (212) 779-1414 or by E-mail: KVHI@bernlieb.com TARO PHARMACEUTICAL: Murray Frank Files Securities Lawsuit in NY ---------------------------------------------------------------- The law firm of Murray, Frank & Sailer LLP initiated a class action lawsuit on behalf of purchasers of the securities of Taro Pharmaceutical Industries, Ltd. ("Taro" or the "Company") (Nasdaq:TARO) between February 20, 2003 and July 29, 2004, inclusive (the "Class Period"). The action is pending in the United States District Court for the Southern District of New York against defendants Taro, Barrie Levitt (Executive Chairman), Aaron Levitt (President), Daniel Moros (Vice Chairman), Samuel Rubenstein (General Manager) and Kevin Connelly (Chief Financial Officer). According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by knowingly or recklessly issuing a series of material misrepresentations to the market during the Class Period. The complaint alleges that Taro presented itself as a pharmaceutical company that develops, manufactures and markets generic drugs, and that the Company claimed throughout the Class Period that it had successfully expanded its product line to include proprietary drugs and novel drug delivery systems. Unbeknownst to investors, the Company suffered from undisclosed adverse factors that were having a negative impact on Taro's financial performance and condition including but not limited to the following: (1) defendants were unable to maintain profitability in Taro's generic drug division or generate free cash flow from the introduction of higher margin proprietary products sufficient to offset the expense of its new product launches; (2) defendants had failed to properly record the full expense of developing new proprietary drug products, such that it was materially false and misleading for defendants to state that the roll-out of Taro's new proprietary drugs was not and would not adversely affect the Company's near- or long-term profitability; (3) defendants understated the negative effects of increasing competition on the Company's financial performance; and (4) as a result of the foregoing, defendants lacked any reasonable basis to claim that Taro was operating according to plan or that Taro could maintain profitability in the near-term. The truth emerged on July 29, 2004. On that date, the Company announced a second-quarter loss of $0.31 per share, far below the Company-guided analyst consensus estimate of $0.44 per share earnings, and that drug sales had dropped to $49.1 million from $74.8 million in the prior second quarter. On this news, Taro's share price fell more than $11.50 per share to a new multi-year low of $18.68 per share. Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. For more details, contact Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-mail: info@murrayfrank.com TECO ENERGY: Vianale & Vianale Files Securities Fraud Suit in FL ---------------------------------------------------------------- The law firm of Vianale & Vianale LLP commenced a securities fraud class action lawsuit in Tampa, Florida federal court on behalf of purchasers of the securities of Teco Energy, Inc. ("Teco") (NYSE: TE) between October 30, 2001 and February 4, 2003, inclusive. According to the complaint, TECO concealed problems with independent power plant construction ventures for which it would ultimately be responsible, including exposure to the demise of Enron Corporation and the vulnerability of its large cash dividend, causing TECO securities to trade at artificially inflated levels. The individual defendants sold over $4.2 million of their own stock and raised over $792 million selling equity securities. In late 2002 and early 2003, several large projects and their liabilities were "put" to TECO, moving hundreds of millions of dollars of off-balance sheet debt onto TECO's balance sheet. TECO took over a billion dollars in impairment charges as a result, causing its stock to fall from a Class Period high of over $28 per share, to below $13 per share on February 4, 2003. For more details, contact Vianale & Vianale by Phone: 888-657-9960 or visit their Web site: http://www.vianalelaw.com WIRELESS FACILITIES: Murray Frank Files CA Stock Fraud Lawsuit -------------------------------------------------------------- The law firm of Murray, Frank & Sailer LLP initiated a class action lawsuit in the United States District Court for the Southern District of California on behalf of all purchasers of the common stock of Wireless Facilities Inc. (Nasdaq:WFII) ("Wireless" or the "Company") from April 26, 2000 through August 4, 2004, inclusive (the "Class Period"). The complaint charges Wireless, Masood Tayebi, Terry Ashwill, Daniel Stokely, Eric DeMarco, and Thomas Munro with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts known to defendants or recklessly disregarded by them: (1) that the Company had materially underreported its burgeoning foreign tax burden; (2) that as a consequence of the foregoing, the Company materially inflated its net income or loss by 3-8 percent or $10-12 million; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as result of the above, the Company's financial results were materially inflated at all relevant times. On August 4, 2004, Wireless reported results for the second quarter of fiscal year 2004. In addition, the Company announced that it intends to restate its financial statements filed on Form 10-K for the years 2001 through 2003 to accrue for certain foreign tax contingencies. News of this shocked the market. Shares of Wireless fell as much as, 30% and reached at one point on August 5, 2004, its 52 week low of $4.61 per share on unusually heavy trading volume. At the end of the trading day, shares of Wireless fell $1.96 per share or 28.08 percent to close at $5.02 per share. For more details, contact Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP by Phone: (800) 497-8076 or (212) 682-1818 by Fax: (212) 682-1892 or by E-mail: info@murrayfrank.com WIRELESS FACILITIES: Spector Rosemna Files Securities Suit in CA ---------------------------------------------------------------- The law firm of Spector, Roseman & Kodroff, P.C. initiated a securities class action lawsuit in the United States District Court for the Southern District of California, on behalf of purchasers of the common stock of Wireless Facilities, Inc. ("Wireless" or the "Company") (Nasdaq: WFIIE) between April 26, 2000 through August 4, 2004, inclusive (the "Class Period"). Included in the class are those persons who acquired shares of Wireless through its acquisitions of Questus, Davis Bay, Defense Systems, High Technology Solutions, Telia Academy and Telia Contracting. The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that Wireless, an independent provider of outsourced communications and security for the wireless communications industry, and certain of its officers and directors issued materially false statements concerning the company's financial condition. It further alleges that Wireless failed to disclose and misrepresented the following material adverse facts: (1) that Wireless had materially under-reported its burgeoning foreign tax burden; (2) that as a consequence of the foregoing, Wireless materially inflated its net income by 3% to 8% or $10- 12 million; and (3) that Wireless lacked adequate internal controls and was therefore unable to ascertain its true financial condition. On August 4, 2004, Wireless reported results for the second quarter of fiscal 2004. It also announced that it intends to restate its financial results filed on Form 10-K for the years 2001 through 2003 to accrue for certain foreign tax contingencies. On this news, shares of Wireless plummeted to $5.02 per share, representing a decline of approximately 28%. For more details, contact Robert M. Roseman by Phone: 888-844-5862 by E-mail: classaction@srk-law.com or visit their Web site: http://www.srk-law.com ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Glenn Ruel Se�orin, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2004. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *