/raid1/www/Hosts/bankrupt/CAR_Public/041008.mbx              C L A S S   A C T I O N   R E P O R T E R

              Friday, October 8, 2004, Vol. 6, No. 200


AG INTERCRAFT: Sued Due To Work-At-Home Scam Targeting Hispanics
AMERICAN DREAM: Inks Settlement for FTC Suit Over "Fat Seltzer"
ARTHRITIS DRUGS: European Regulators To Review Rofecoxib Safety
CALL CENTER: FTC Launches Lawsuit Over Bogus Credit Card Offers
CINTAS CORPORATION: Drivers Have Oct. 21 To Join Overtime Suit

DREAMWORKS SKG: Group Protests Race Stereotyping in "Shark Tale"
ELAN PHARMACEUTICALS: To Pay $10M to Settle Stock Fraud Charges
FGH INTERNATIONAL: Faces FTC Suit For Deceptive Trade Practices
GENERAL MOTORS: NHTSA Reopens 1998-1999 Sierra, Silverado Probe
HONEYWELL INTERNATIONAL: Pays $2.25M To Settle Age-Bias Lawsuit

MASSACHUSETTS MUTUAL: Settlement Hearing Set November 22, 2004
MAINE: Maine Urologist on Probation Due to Healthcare Fraud
MINNESOTA: Residents Of Manufactured Home Community Sue Owners
MISSOURI: Kennett City To Join Franchise Fee Suit V. Phone Firms
NEW YORK: Recalls 2.5T Electric Fans Due To Fire, Shock Hazards

NISSAN MOTOR: To Recall Cars Over Defective Brake Lights, Bolts
NORTH CAROLINA: AG Cooper To Award $40,000 To Jaycee Burn Center
PARMALAT FINANZIARIA: Preliminary Hearing Held in Italian Court
PARTY CITY: Reaches $5.5M Settlement in CA Overtime Wage Lawsuit
PEREGRINE SYSTEMS: SEC Files Fraud Charges V. Former Officers

PHILIP MORRIS: FL Appeals Court Will Not Review Decertification
PRESTON GATES: Settles Employee's Overtime Wage Lawsuit in WA
ROBERTSON STEVENS: Reaches Pact To Settle Market Timing Charges
ROSARIO PARTNERSHIP: Settles FTC Complaint For Business Fraud
RHEE BROS.: Recalls Dried Sweet Potato For Undeclared Sulfites

RS INVESTMENT: SEC Issues, Settles Securities Fraud Complaint
SAFESCRIPT PAHRMACIES: SEC Lodges Fraud Complaint V. Ex-Officers
USS ELDER: Court Orders Assets Frozen, Blocks Work-At-Home Scam

                        Asbestos Alert

ASBESTOS LITIGATION: UK Firemen Move to Minimize Exposure Risk
ASBESTOS LITIGATION: AU Lawyers Cast Doubt on Common Law Claims
ASBESTOS LITIGATION: Rise in Asbestos Death Toll in UK Alarming
ASBESTOS LITIGATION: Ex-Navy Overseas Workers Get Compensation
ASBESTOS LITIGATION: PTA Alarmed Over Repair Work at PA School

ASBESTOS LITIGATION: ATC Releases Revised Statement on Diseases
ASBESTOS LITIGATION: Asbestos Disposal in Bermuda Now Available
ASBESTOS LITIGATION: UK Council Investigates Asbestos Dumping
ASBESTOS LITIGATION: UK Officers Intensify War V. Fly-tippers
ASBESTOS LITIGATION: Waste Disposal Costs to Increase in Ireland

ASBESTOS LITIGATION: Asbestos EPA Tests Done at CA High School
ASBESTOS LITIGATION: JPN Firms Accept Chemical Disclosure Regime
ASBESTOS LITIGATION: Controversy Hits Dar Malta Sale in Belgium
ASBESTOS LITIGATION: TX Lawyer's Career Built on Asbestos Cases
ASBESTOS LITIGATION: Judge Delays Hearing of MO Asbestos Suits

ASBESTOS LITIGATION: UK Councilor Upset by Delay in Demolition
ASBESTOS LITIGATION: Ex-Union Carbide Mill Workers Fear Asbestos
ASBESTOS LITIGATION: Protesters Rally Against Canada's Actions
ASBESTOS LITIGATION: Coalition Pledges AUD137M to Fight Cancer
ASBESTOS LITIGATION: Federal-Mogul Seeks US$1.9B Citigroup Loan

ASBESTOS LITIGATION: FL Hurricane Clean-up Generates US$3.5 Mil
ASBESTOS LITIGATION: AU Council Imposes Harsh Fine for Dumping
ASBESTOS LITIGATION: UN Alarmed Over Risks from Ships off Iraq
ASBESTOS LITIGATION: Asbestos Threat Halts Demolition of NY Site
ASBESTOS LITIGATION: MLA Gets Acclaim as Asbestos Bill Thrives

ASBESTOS LITIGATION: Research Foundation Hosts Int'l Symposium
ASBESTOS LITIGATION: Sen. Reid Introduces Asbestos Awareness Day
ASBESTOS LITIGATION: NSW Premier Urges the US to Probe Hardie
ASBESTOS LITIGATION: Union Moves for More Awareness in Schools
ASBESTOS ALERT: DEP Investigates Craffey and Co. for Violations

ASBESTOS ALERT: Fear Strikes Hospital at Former Hardie Dumpsite
ASBESTOS ALERT: Marks & Spencer Admits Closure Due to Asbestos
ASBESTOS ALERT: Aussie Kids Paid to Remove Asbestos from School
ASBESTOS ALERT: Dux Factory Workers Alarmed On Asbestos Removal
ASBESTOS ALERT: Crown Group Fined US$100T for Contempt of Court

ASBESTOS ALERT: 90 Sydney Hospital Staffers Await Medical Tests

                New Securities Fraud Cases

CONVERIUM HOLDING: Murray Frank Lodges Securities Lawsuit in NY
INFINEON TECHNOLOGIES: Lasky & Rifkind Lodges CA Securities Suit
INTEGRATED ELECTRICAL: Bernstein Liebhard Files Stock Suit in TX
ST. PAUL TRAVELERS: Bernstein Liebhard Lodges MN Securities Suit
STONEPATH GROUP: Mager White Lodges Securities Fraud Suit in PA

STONEPATH GROUP: Wolf Haldenstein Files Securities Lawsuit in PA
ZIX CORPORATION: Goodkind Labaton Lodges Securities Suit in TX


AG INTERCRAFT: Sued Due To Work-At-Home Scam Targeting Hispanics
The Federal Trade Commission (FTC) filed The FTC filed a
complaint against Amada Guerra in the United States District
Court for the Middle District of Florida, Orlando Division.

The suit alleges that Ms. Guerra perpetrated a classic work-at-
home scam targeting Hispanic consumers looking for work
opportunities that do not require English-language skills.
According to the complaint, Ms. Guerra or her telemarketers tell
consumers that, for a fee, they will receive easy assembly work,
such as making greeting cards or Christmas decorations.

The defendant's ads promise that consumers can earn from $600 to
$800 a week.  Consumers are told that the money required up
front (from $96 to $106) will be refunded in full once the
consumer assembles and mails in a specified number of craft
items.  In fact, the FTC alleges, virtually no one can assemble
the required number of craft items or earn the income promised
by the defendant.

On September 22, the court entered a temporary restraining order
prohibiting the defendant from engaging in the deceptive conduct
and freezing her assets to preserve the possibility of consumer
redress.  Since then, the defendant has agreed to a stipulated
preliminary injunction continuing the terms of the TRO pending a
final resolution.

AMERICAN DREAM: Inks Settlement for FTC Suit Over "Fat Seltzer"
The U.S. District Court for the Southern District of Florida
entered a stipulated final order on September 23, 2004, against
American Dream Enterprises, LLC, and its owner, Andres Fernandez
Salvador.  The Miami-based defendants marketed a weight-loss
dietary supplement - "Fat Seltzer" - which, when added to water,
produces bubbles.

According to the Federal Trade Commission's (FTC) complaint,
filed in April 2004, the defendants claimed that the
effervescent action, when combined with Fat Seltzer's
ingredients, causes substantial and permanent weight loss
without the need to exercise or diet.  The settlement prohibits
the defendants from, among other things, making claims that Fat
Seltzer, or any dietary supplement, over-the-counter drug or
cosmetic causes substantial weight loss without the need to diet
or exercise, or causes permanent weight loss.  The order
requires the defendants to pay $185,000 in monetary relief, and
contains an approximately $1.5 million avalanche clause that
will become due if the court finds that the defendants
misrepresented their financial condition.

ARTHRITIS DRUGS: European Regulators To Review Rofecoxib Safety
The European Medicines Agency intends to review the safety of
all brands of a popular type of arthritis pain reliever, in the
wake of Merck & Co.'s recall of its popular Vioxx brand after
discovering that it doubled the risk of heart attacks and stroke
when taken long term, the Associated Press reports.

Vioxx is a brand of the drug called rofecoxib, which also falls
under a class known as Cox-2 inhibitors, named after the enzymes
produced during inflammatory responses that cause arthritis
joint pain.  Rofecoxib, which is mainly prescribed for arthritis
pain but also for acute pain and disorders such as carpal tunnel
syndrome, was seen as a potential cancer-prevention medicine as
well.  The recall was prompted by a three-year study aimed at
showing that the drug could prevent the recurrence of
potentially cancerous polyps in the colon and rectum.

The study asserted that participants who took the drug for more
than 18 months were found to be twice as likely as those given
dummy pills to suffer a heart attack, stroke or other heart
complications, AP reports.  During the study, 10 patients died -
five who had been taking the treatment and five who took dummy

The European Medicines Agency said in the next two weeks it will
review all available long-term studies of Cox-2 inhibitors.
Other Cox-2 inhibitors include celecoxib which is marketed in
the United States as Celebrex and valdecoxib which is called
Bextra.  Both are made by Pfizer Inc.  The medicines already
contain warnings regarding heart problems.

CALL CENTER: FTC Launches Lawsuit Over Bogus Credit Card Offers
The Federal Trade Commission charged three companies and six
individuals with promoting bogus offers of unsecured major
credit cards for an advance fee.  The complaint, filed in the
U.S. District Court for the Southern District of Florida, in
Miami, names as defendants:

     (1) Call Center Express Corporation;

     (2) Abreu Advertising, Inc., doing business as La Familia

     (3) Pro Line Card LLC;

     (4) Edgar Alirio Gonzalez;

     (5) Pablo Jose Martinez;

     (6) Liens Abreu;

     (7) Rafael L. Abreu;

     (8) Julio Cesar Sandoval; and

     (9) Carlos Felipe Mendez

The defendants deceptively led consumers to believe that they
would receive unsecured major credit cards, like MasterCard or
Visa credit cards, with a guaranteed $2,000 minimum credit
limit.  When consumers call to order the cards, they are told
that they must pay a fee ranging from $149 to $299 before they
receive the cards.  After the consumers receive the card, they
realize that the defendants' cards are not major unsecured
credit cards, but, in fact, are cards that can only be used to
purchase items from the defendants' own catalogs and Web sites.

According to the FTC, the defendants market their cards under
the names La Familia Gold Card, Destiny MasterCard, Advantage
Platinum Card and Pro Line Card, names that misrepresent that
the defendants' cards are unsecured major credit cards issued by
MasterCard or Visa.  The complaint also alleges that the
defendants refuse to provide refunds to consumers, which is
contrary to their own written card agreements.

The court granted the FTC a temporary restraining order with an
asset freeze and appointment of a temporary receiver on
September 16, 2004.  The FTC obtained preliminary relief as to
all the defendants, except Julio Sandoval, requiring them to
stop the marketing and sale of credit-related products,
programs, or services.  This relief continues the freeze on the
assets of the defendants to preserve the possibility for
consumer redress and continues the appointment of a receiver
over the corporate defendant.  The stipulated preliminary
injunction will be in effect until the litigation is complete.
As to defendants Pro Line Card and Carlos Mendez, the court
continued the TRO until an October 13 hearing to determine
whether this order stays in place.  The FTC will proceed with
its lawsuit against Julio Sandoval.

CINTAS CORPORATION: Drivers Have Oct. 21 To Join Overtime Suit
Former and current Cintas Corporation drivers have until October
21 to join a class action filed against the Company for
violations of overtime wage laws, eTrucker.com reports. The suit
is pending in the U.S. District Court for the Northern District
of California.

More than 1,400 people in 42 states who have worked as Cintas
delivery truck drivers have joined the suit, according to law
firm Lerach, Coughlin, Stoia & Robbins, one of the three law
firms representing the case.  The lawsuit is assisted by UNITE
HERE, a recently merged union of hospitality, gaming, apparel,
textile and laundry workers.

The Ohio-based company stated on its website that the suit is
meant only to discredit and harass Cintas and that the company's
payment system is legal and fair.  "Recently, the Teamsters have
been exaggerating the facts surrounding the lawsuit and
approaching our service sales representatives while on their
routes," Cintas said in a statement, according to eTrucker.com.
"Their aggressive efforts are nothing more than an extension of
their campaign to pressure the company into a `Card
Check/Neutrality' agreement."

The suit could cost Cintas $100 million, the Teamsters stated.
Drivers who have worked for Cintas since March 19, 2000, can
join the suit.  Drivers who drove trucks weighing more than
10,000 pounds or who regularly drove interstate routes for
Cintas will not receive a consent to sue notice by mail,
according to information posted on a website Lerach, Coughlin,
Stoia & Robbins created to provide information about the case.
Those drivers may still be eligible for overtime pay and may
file a consent to sue form to join this lawsuit.  For more
details, visit the Website: http://www.cintasovertime.com.

DREAMWORKS SKG: Group Protests Race Stereotyping in "Shark Tale"
The Coalition Against Racial, Religious and Ethnic Stereotyping
(CARRES) warned parents about the violence and stereotyping in
DreamWorks' new children's gangster movie, Shark Tale and called
for a national boycott of all products that promote the film and
its characters.

The movie is about a fish named Oscar, who gets involved with a
gang of sharks and killer whales.  Oscar, voiced by Will Smith,
is an African American fish who is a slick, lazy liar with a
severe gambling problem.  The gangster-fish have Italian names
and prey on the weaker fish.  They are voiced by Robert DeNiro,
Martin Scorsese and actors from The Sopranos.  The movie
premiered October 1, the first day of Italian American heritage
Month, the organization said in a press release.

Shark Tale is a production of DreamWorks SKG, owned by Steven
Spielberg, Jeffrey Katzenberg and David Geffen.  To promote it,
DreamWorks formed partnerships with some of the nation's largest
corporations, including Coca-Cola and Burger King, the press
release stated.

Since January, CARRES has petitioned DreamWorks to change the
names of the gangster characters and remove Italian expressions
from the dialogue.  It also has written to the movie's corporate
sponsors asking them not to promote the film.  "Since our
requests fell on deaf ears, we are calling for a boycott of
Coca-Cola, Burger King, Krispy Kreme, General Mills and Hasbro
Toys, the movie's principal marketing partners," says CARRES
spokesperson Dona De Sanctis.

It is the first time that the major Italian American
organizations have called for a national boycott to protest the
defamation of people of Italian heritage.  Italian Americans
represent the fifth largest ethnic group in the United States,
numbering 16 million according to the U.S. Census Bureau.

CARRES is composed of more than 25 ethnic organizations,
including the four major Italian American organizations -- the
Sons of Italy, the National Italian American Foundation, UNICO
National and the Columbus Citizens Foundation.

ELAN PHARMACEUTICALS: To Pay $10M to Settle Stock Fraud Charges
Irish drug maker Elan Pharmaceuticals agreed to pay about $100
million to settle allegations of securities fraud,
independent.co.uk reports.

The Company, once Ireland's biggest company went to the brink of
bankruptcy and back last year.  Investors raised concerns after
the company repeatedly restated its results.  The Company faced
charges that it hid important details of its complex and
controversial financial structure.

Under Garo Armen, its chairman, it unpicked a web of investments
in small biotechs, which had in effect been mortgaged to fund
expansion but which had since collapsed in value.  The company
has since reinvented itself as a niche biotech with a portfolio
of potential new drugs including treatments for Alzheimer's
disease, multiple sclerosis and the bowel disorder Crohn's

The settlement includes a fine from the United States and
Exchange Commission.  The Company expressed relief that the
figure was not higher, since a group of private investors had
launched a class action against the company claiming damages in
sexcess of $1 billion, independent.co.uk reports.

The Company said yesterday that it will take a $55m charge in
its next results, "a reserve for the company's estimate of the
liabilities related to the previously disclosed shareholder
class action lawsuit and the ongoing SEC investigation,"
independent.co.uk.  The company has previously disclosed it also
has about $50m in insurance cover, indicating the final payouts
will total little more than $100m.

The Company had previously said it hoped to have the SEC
investigation, which was launched in 2002, completed by the end
of last month.  Yesterday it said it was still in discussions to
resolve both that and the class action lawsuit as soon as

FGH INTERNATIONAL: Faces FTC Suit For Deceptive Trade Practices
The Federal Trade Commission (FTC) filed a complaint against FGH
International Corporation, Inti California, Inc., and their
principals, Jaime Jhonny Rojas Villaneueva, also known as Jhonny
Rojas, Wilson Rojas, and Franco Morales, over deceptive
marketing practices.

The complaint, filed in the United States District Court for the
Central District of California, alleges that the defendants
engaged in deceptive practices in marketing and selling at-home
instructional programs, which purportedly teach consumers how to
speak English or become an auto mechanic.  The complaint alleges
that the Van Nuys, California-based defendants represent
themselves as affiliated with a government program.

The defendants allegedly tell consumers that the government has
selected them to receive subsidized training to learn English or
to become an auto mechanic.  In many instances, the FTC alleges,
regardless of whether the consumer agrees to pay the purported
discount cost for the training materials, the defendants send
the instructional programs to consumers.  Those who refuse to
pay are threatened with legal action or with being reported to
the immigration authorities.  Many consumers fear the threatened
actions and wire transfer the money.

On September 28, 2004, the FTC obtained an ex parte temporary
restraining order prohibiting the defendant from engaging in the
conduct challenged in the complaint and an order freezing assets
to preserve the possibility of consumer redress.

GENERAL MOTORS: NHTSA Reopens 1998-1999 Sierra, Silverado Probe
The National Highway Traffic Safety Administration (NHTSA)
reopened and expanded a probe into General Motor Corporation's
Sierra and Chevrolet Silverado pickup trucks, from the 1998 and
1999 model years, after receiving 73 reports of breaking
tailgates, the Associated Press reports.

The NHTSA already probed tailgates on the 1999 Sierras and
Silverados.  In March 2004, the Company recalled 4 million 2000-
2004 Silverado, Sierra, Avalanche and Escalade EXT pickups
because their tailgate support cables could break when the
tailgate was open.  However, the NHTSA did not include the 1999
Sierra and Silverados on the recall, as the tailgates on these
pickups appear to be breaking at a lower rate than the models
that were recalled.

The NHTSA has received reports of 19 injuries due to tailgate
breakage, but no deaths have been reported.  The Company has
also received 11,560 warranty claims related to the problem.
NHTSA decided to reopen the investigation and expand it to 1998
vehicles last week after getting more data.

There are more than 1.4 million 1998-99 Silverado and Sierra
pickups on the road, AP reports.  A GM spokesman said Tuesday
that the company was cooperating with the investigation.

HONEYWELL INTERNATIONAL: Pays $2.25M To Settle Age-Bias Lawsuit
At a company it acquired during a 1999 merger, Honeywell
International has agreed to pay $2.15 million to settle a class-
action lawsuit alleging violations of the Age Discrimination in
Employment Act of 1967 (ADEA), the HR.BLR.com reports.

According to the Equal Employment Opportunity Commission's
lawsuit, during a company wide reorganization in 1997,
AlliedSignal Automotive Aftermarket terminated or demoted a
class of sales managers and representatives because of their
age. Furthermore, the EEOC alleges that younger workers with
less experience were retained and/or offered those positions.

Upon reaching the settlement both the Honeywell and the EEOC
stated that they entered into the agreement in order to avoid
the time, expense, and uncertainty of further litigation.

In addition to providing a total of $2,150,000 to resolve the
lawsuit, Honeywell also agreed to post a notice concerning the
lawsuit at appropriate facilities and to provide training in the
provisions of the ADEA to all the managers and supervisors in
the Consumer Products Group (CPG) and Frictions Materials (FM)

Jacqueline McNair, regional attorney of EEOC's Philadelphia
office hailed the willingness of all the parties to work
together to craft a thorough and effective resolution to this

MASSACHUSETTS MUTUAL: Settlement Hearing Set November 22, 2004
The United States District Court for the District of New Jersey
will hold a fairness hearing for the proposed settlement in
matter Varacallo, et al. v. Massachusetts Mutual Life Insurance
Company, et al., on behalf of all Massachusetts Mutual Life
Insurance Company, MML Bay State Life Insurance Company,
Connecticut Mutual Life Insurance Company or C.M. Life Insurance
Company (collectively "MassMutual") policyholder who have or had
an ownership interest in permanent policies and/or term life
policies and/or disability income policies issued by MassMutual
from January 1, 1983 until December 31, 2003.

The hearing will be heard before the Honorable Jose L. Linares
on November 22, 2004 at 10:00 am, at the Martin Luther King
Building & United States Courthouse, 50 Walnut Street, Newark,
New Jersey.

For more details, contact MassMutual Class Action Information
Center by Mail: P.O. Box 919, Minneapolis, MN 55440-0919 or by
Phone: 1-800-242-7026 or 1-877-506-4034

MAINE: Maine Urologist on Probation Due to Healthcare Fraud
The United States District Court in Maine sentenced a practicing
urologist to a term of probation for healthcare fraud.

Federal Judge Nancy Gertner sentenced Joseph Olstein, M.D., 58,
of Maine, to 1 year of unsupervised probation and a fine of
$20,000.  Dr. Olstein pleaded guilty in April 2001 to a one
count criminal Information charging him with conspiring to bill
insurance companies for free samples of the drug Lupron, which
he had received from sales representatives employed by TAP
Pharmaceutical Products Inc.

At the sentencing hearing, Health Care Fraud Chief Michael
Loucks urged the Court not to impose a sentence of imprisonment,
and to impose only the sentence of probation, given the
substantial assistance that Dr. Olstein had provided to the
government.  Dr. Olstein assisted the government in connection
with the investigation in Massachusetts of TAP Pharmaceutical
Products Inc., as well as an investigation of AstraZeneca,
conducted by the U.S. Attorney's Office in Delaware.

Dr. Olstein began cooperating with the investigation in the Fall
1999 and his information allowed the government to focus and
streamline its investigative efforts.  Assistant U.S. Attorney
Loucks pointed out to the Court that at the time, only four
federal prosecutors and fewer than ten government agents were
working on both investigations.  By providing truthful
cooperation and assistance from the outset, Dr. Olstein's
cooperation helped both investigations substantially.  The two
investigations of the corporations were resolved with corporate
pleas and global settlement agreements with aggregate recoveries
to the United States Treasury of more than $1.2 billion.  Dr.
Olstein had previously made a restitution payment of
approximately $50,000.

Dr. Olstein is the fourth doctor to be convicted in connection
with this investigation.  Previously, Dr. Rodney Mannion, a
urologist practicing in LaPorte and Michigan City, Indiana, was
charged in February, 2000 with Healthcare fraud and pleaded
guilty to the charge in April 2000.  Dr. Jacob Zamstein, a
urologist practicing in Bloomfield, Connecticut, was charged in
November 2000 with Healthcare fraud and pleaded guilty in
December 2000.  Dr. Joseph Spinella, a urologist practicing in
Bristol, Connecticut was charged in December 2000 with
Healthcare fraud and pleaded guilty in March 2001.  All three
doctors also cooperated in the government's investigation and
all were sentenced to terms of probation.  In a trial concluded
this summer, a number of TAP employees were acquitted of charges
regarding the provision of samples and other things of value to
urologists, in exchange for the purchase of the drug Lupron.

The case was investigated by the Federal Bureau of
Investigation, the Office of Inspector General for the U.S.
Department of Health and Human Services, the Food and Drug
Administration Office of Criminal Investigations, and the
Defense Criminal Investigation Service.  The case involving Dr.
Olstein was prosecuted by Assistant U.S. Attorney Michael K.
Loucks, Chief of Sullivan's Health Care Fraud Unit.

MINNESOTA: Residents Of Manufactured Home Community Sue Owners
Residents of The Gardens private manufactured home community in
Rochester, Minnesota have filed a class-action lawsuit in
Olmsted District Court against the owners of the park, according
to a recently issued press release, the Post-Bulletin reports.

The suit, which was filed by 21 residents, alleges consumer
fraud, breach of contract and violations of state and local
laws.  The suit alleges that the owners made misrepresentations
in order to make sales to the plaintiffs starting in 2000.

The residents specifically stated in their suit that the owners,
orally and in writing, promised a private, "beautiful setting,"
with walking and biking paths, neighborhood playgrounds, a
private lake, gates and 24-hour security.  However, the
residents also stated that the promises were never kept and that
their complaints in the past several year have fallen on deaf

The residents alleged that the owners failed to follow proper
building and construction practices that have caused damage to
several of the homes.  The residents further alleged that due to
these problems their attempts at selling their homes have been

The park owners include a handful of local businessmen,
including former state Rep. Dave Bishop, Dick Hexum Sr., Tom
Hexum, Lloyd Johnson and David Kane. Various limited-liability
corporations were formed to handle ownership, lease spaces in
the park and sell manufactured homes, and those corporations --
not the businessmen themselves -- were the parties named as
defendants in the lawsuit.

MISSOURI: Kennett City To Join Franchise Fee Suit V. Phone Firms
The City of Kennett, Missouri may join 50 other cities in the
state in a class action filed against several wireless telephone
providers, the Dunkin Democrat reports.

"The class action litigation is to collect franchise fees from
wireless telephone providers," City attorney Terry McVey told
city council members at their meeting Tuesday evening.

Mr. McVey said that while the cities collect franchise fees from
conventional telephone service providers, they don't collect
anything from wireless providers.  He said that if the suit is
successful, Kennett would collect an estimated $100,000 to
$110,000 a year in additional revenue.

The board sentiment is to join in the lawsuit, and an ordinance
authorizing the city to join in the lawsuit will be presented
the council at its meeting October 19.

NEW YORK: Recalls 2.5T Electric Fans Due To Fire, Shock Hazards
New York Zion Trading Corporation, of Flushing, New York is
cooperating with the United States Consumer Product Safety
Commission by voluntarily recalling about 2,500 Portable
oscillating electric fans.  The wiring is undersized and the
power plug is not polarized, creating fire and shock hazards.

No injuries have been reported.  This recall is being conducted
to prevent the possibility of injuries.

The recall involves 16-inch diameter 3-speed oscillating fans,
which mount on adjustable stands. "NYZT" appears in the center
of the front fan guard. The model numbers, FS-1601A and FS-
1607C, are found on a silver label on the back of the controls.
The fans come in two color combinations: either blue and white,
or all gray.  Manufactured in China, the electric fans were sold
at discount and variety stores in the New York City metropolitan
area during May 2004 for about $10.

Consumers should stop using these fans immediately and return
them to the place of purchase for a full refund.  For more
details, contact the Company by Phone: (718) 909-7899, between
8:30 a.m. and 5:30 p.m. ET Monday through Friday.

NISSAN MOTOR: To Recall Cars Over Defective Brake Lights, Bolts
Nissan Motor Company plans to recall a total of 26,077 cars,
including about 100 in the United States to fix defective brake
lights and faulty bolts used in the vehicles propeller shaft,
the Associated Press report.

The recall includes the Cima, President, Skyline sedans and
Stagea wagons made in Japan between December 2000 and June 2004,
according to Japanese Transport Ministry spokesman Toshihiko
Kude.  25,977 of these cars were sold in Japan.

Mr. Kude said a loosened bolt could cause the propeller shaft
linked to the front wheel to come off. That defect affects most
of Nissan's cars in the recall, AP reports.  No injuries have
been reported to the Company.

The remaining 259 cars, including 100 Cima models exported to
the United States and sold under the model names M45 and 945,
had a brake light that malfunctioned because a different
lubricant oil was used in production, AP reports.

NORTH CAROLINA: AG Cooper To Award $40,000 To Jaycee Burn Center
More than $40,000 collected by telemarketers using a phony
charitable pitch will go to the North Carolina Jaycee Burn
Center, North Carolina Attorney General Roy Cooper announced in
a statement.

"These telemarketers said they were collecting donations to help
the Jaycee Burn Center treat children but not one cent of the
money they raised actually did that," said AG Cooper.  "We've
turned the tables on this scam so that these donations will be
used as people intended."

AG Cooper alleges that a telemarketer misrepresented its
connection with the Jaycee Burn Center to solicit donations and
then failed to use the money it collected to pay for treatments
for burn victims in violation of North Carolina law.  A total of
$42,359.65 will go to the North Carolina Jaycee Burn Center at
UNC Hospitals in Chapel Hill.  AG Cooper recovered the funds
through a consent judgment entered against Manning Enterprises
of Florida, Inc., a for-profit telemarketer that makes calls on
behalf of non-profits.   Manning Enterprises is also permanently
barred from the fund raising business in North Carolina.

The Jaycee Burn Center, the only one of its kind in the state,
has treated thousands of patients with severe burns since it
opened in 1981.  About a quarter of all burn victims treated at
the Center are children.

"The Burn Center is dedicated to burn prevention and research
into improved treatment for patients," said Michael D. Peck,
M.D., Sc.D., Medical Director of the Center.  "These funds will
directly help our research, as well our efforts to provide
support to children and adults who are striving to return to
normal lives following serious burns."

According to a complaint filed by AG Cooper, the North
Carolina/South Carolina Police and Firefighters Olympics
Association hired Manning Enterprises to raise funds through
telemarketing calls.  Telemarketers working for the company made
calls to North Carolinians from spring of 1999 through March
2003.  As part of their pitch, the telemarketers claimed they
were collecting funds to provide treatments such as skin grafts
for children at the Jaycee Burn Center.   AG Cooper's office
discovered that the money went instead to the telemarketers and
the Association.

"I'm proud of the generous people in North Carolina who are
willing to give to those in need, but we need to be vigilant
against people who try to take advantage of our compassion," AG
Cooper warned.  "Scammers may even try to use the very real
victims of this season's hurricanes and floods to make their
phony pleas sound more plausible."

While there are many legitimate charities that solicit
donations, there are also fraud artists that claim to be
affiliated with a particular charity or cause in order to take
consumers' money.  If a caller refuses to answer questions about
the charity, offers to come to pick up a donation in person, or
asks for a credit card, bank account or Social Security number,
the call may be part of a scam, the press statement continued.

To report telemarketing fraud, contact the Attorney General's
Consumer Protection Division by Phone: (877) 5-NO-SCAM.  To
check up on a charity that solicits money from you, contact the
North Carolina Secretary of State's Office by Phone:
(888) 830-4989.

For more details, contact Noelle Talley, Public Information
Officer, N.C. Department of Justice by Phone: (919) 716-6484 or
(919) 716-6413 by Fax: (919) 716-0803 or by E-mail:

PARMALAT FINANZIARIA: Preliminary Hearing Held in Italian Court
A closed-door preliminary hearing over charges of market
manipulation filed against Parmalat Finanziaria SpA founder
Calisto Tanzi and 28 others began in a court in Milan, Italy,
Bloomberg.net reports.

Almost ten months ago, the food company collapsed in what is
considered Italy's biggest bankruptcy.  More than 100,000
Italian investors incurred losses afterwards, as prosecutors
uncovered evidence that the Company used much of the proceeds
from more than EUR7 billion ($8.6 billion) in bond sales to hide
losses and debt.  Italian banks often sold Parmalat bonds to
customers without their knowledge, consumer groups alleged.

Prosecutor Francesco Greco and his team requested Judge Cesare
Tacconi to issue an indictment against the defendants.  Judge
Tacconi also accepted a request by lawyers for Maurizio Bianchi
and Lorenzo Penca, who were auditors at the former Italian unit
of Grant Thornton International, for an immediate trial.
Today's hearing was adjourned to October 29.

Lead Milan prosecutor Greco will try to prove that the Company's
former managers, abetted by bank officials and auditors,
deceived investors and manipulated the market by hiding debts
and losses and fabricating assets for more than a decade,
according to court documents filed in May.  The charges are
based on "false communication of information that provided
reassurances about the financial solidity of the Parmalat group,
which was instead in crisis from at least 1999," according to
the court documents filed by prosecutors.

More than 200 lawyers, court officials, investors and consumer
groups came to the hearing.  Investors flocked to the
courthouse, seeking to recover damages as part of the criminal
investigation of Italy' biggest bankruptcy.

"I came purposely today to see if I can have some hope of
getting something back," Lionello Dechecchi, a 74-year-old
retiree from Milan, told Bloomberg.  "These guys didn't steal
from the rich, they stole from the poor, because 90 percent of
the people who lost their money were poor people like me."

Mr. Dechecchi said his entire savings of EUR25,000 were wiped
out in the bankruptcy.  The Italian bank that was managing his
money invested the savings in Parmalat bonds without his
knowledge, he told Bloomberg.

Parmalat Administrator Enrico Bondi will present claims as a
plaintiff to recoup money in the case, Marco De Luca, a lawyer
for the company told Bloomberg.  Securities market regulator
Consob also is seeking to be a plaintiff, news agency Ansa

"Today the process starts after just 10 months, which should
establish who was responsible for over 14 billion euros in
losses that wiped out the savings of 135,000 investors," Elio
Lannutti, president of Adusbef, the Italian association of bank
customers told Bloomberg.

Riccardo Olivo, a lawyer for Bank of America, told Bloomberg the
accusations are "completely without any basis."  He said the
bank may seek damages "because it believes it has been harmed
along with the rest of the market by the false image that
Parmalat gave of its financial situation."  "We would never have
lent Parmalat $700 million over a span of years had we known the
true state of its finances," he said.

Italian law does not provide for class action lawsuits, though
consumer groups are presenting collective demands to recover
funds for their members.  Adusbef and another consumer group,
Adiconsum, say they both have more than 4,000 Parmalat investors
joining their effort to recoup money.  Altroconsumo says it has
support from more than 2,500 investors, Bloomberg reports.

"The investors suffered a loss and it's right that they are
reimbursed by all of those who are found to be responsible,"
Giampiero Biancolella, one of Tanzi's lawyers, told Bloomberg.
He said Tanzi wasn't planning to plead guilty.

PARTY CITY: Reaches $5.5M Settlement in CA Overtime Wage Lawsuit
Party City Corporation (NASDAQ: PCTY) will pay up to $5.5
million to tentatively settle California class action litigation
regarding overtime wage and hour laws, the Associated Press
reports.  The Los Angeles Superior Court has granted approval to
the settlement.

A recent regulatory filing also reveals that the Rockaway, New
Jersey-based Company stated that payments to an assistant
manager and other eligible employees would not exceed $5.5
million and at the same time admits no wrongdoing in the

PEREGRINE SYSTEMS: SEC Files Fraud Charges V. Former Officers
The Securities and Exchange Commission filed civil fraud and
related charges against six former senior officers of San Diego-
based Peregrine Systems, Inc. who orchestrated and attempted to
cover up a massive accounting fraud at the company.

According to the Commission's complaint filed in the United
States District Court in San Diego, the Peregrine defendants
fraudulently inflated the product revenue Peregrine reported in
its filings with the Commission and elsewhere. The defendants
employed deception and lies to portray Peregrine as a company
with constantly growing sales while covering up Peregrine's
persistent failure to fulfill revenue forecasts. At the same
time, some of the Peregrine defendants unloaded Peregrine stock
into an unsuspecting market, enriching themselves, in some
instances by millions of dollars, at the expense of the
investing public.

In February 2003, Peregrine restated its financial results for
eleven quarters during fiscal years 2000, 2001 and 2002,
reducing previously reported revenue of $1.34 billion by more
than $507 million.

The Commission's complaint names: Stephen P. Gardner,
Peregrine's former Chairman and Chief Executive Officer; Gary L.
Lenz, the former President and Chief Operating Officer; Douglas
S. Powanda, the former Executive Vice President of Sales; Berdj
J. Rassam, the former Controller; Joseph G. Reichner, the former
Senior Vice President for Alliances and Business Development;
and Peter J. O'Brien, the former Director of Strategic

The Commission also charged Daniel F. Stulac, a certified public
accountant and former Arthur Andersen LLP engagement partner on
the Peregrine audit, with fraud, and Larry A. Rodda and Michael
D. Whitt, former principals of two Peregrine channel partners
(customers), with aiding and abetting Peregrine's fraud.

According to the Commission's complaint, the heart of
Peregrine's fraud was the recording of millions of dollars in
revenue on the improper basis of non-binding arrangements with
resellers ("channel partners") - companies that purchased
software from Peregrine for resale to end-users. Peregrine's
senior management would determine near the ends of quarters how
much additional revenue the company needed to meet or exceed
analyst expectations. They would then enter into sham deals with
channel partners (including backdated contracts and contracts
made contingent by oral or written side agreements). Peregrine
executives arranged a number of these fraudulent deals with
defendants Rodda and Whitt.

Peregrine improperly recorded the resulting "revenue" in order
to mislead investors into believing that Peregrine's financial
condition was significantly better than it was and to inflate
artificially Peregrine's stock price. Gardner, the former CEO
who was actively involved in the fraud, and Powanda, the former
Executive VP of Sales who devised many of the sham deals, sold
over $11 million and $24 million worth of Peregrine stock,
respectively, during the fraud, resulting in millions of dollars
in profits.

The complaint further alleges that, as the uncollected
receivables from the fake channel sales swelled on Peregrine's
balance sheet, senior officers at the company devised a
temporary solution to make it appear that Peregrine was
collecting cash on a timely basis. Uncollectible receivables
were purportedly sold to banks and removed from Peregrine's
balance sheet. These receivable financing transactions, however,
were in reality loans and not sales because, under the terms of
the deals, the banks had recourse against Peregrine if the
customers did not pay. Peregrine's removal of the receivables
from its balance sheet was therefore fraudulent.

According to the complaint, to prevent the banks from
discovering that some of the channel "sales" underlying the
receivables were bogus, Peregrine often repurchased the
receivables from the banks. To remove the uncollectible
receivables from Peregrine's books, Peregrine executives,
including former Controller Rassam, with the knowledge of
outside engagement partner Stulac, then improperly wrote off
millions of dollars of the repurchased receivables (and other
unpaid receivables) as acquisition costs, even though the
receivables were wholly unrelated to acquisitions. The complaint
also alleges that outside auditor Stulac permitted Peregrine to
record revenue improperly. Stulac knew, or was reckless in not
knowing, that Peregrine's fiscal 2001 financial statements were
materially false and misleading. Despite Stulac's knowledge or
reckless disregard of this improper accounting, he caused Arthur
Andersen to issue an unqualified opinion attesting to the
accuracy and completeness of Peregrine's fiscal 2001 financial

Based on this conduct, the Commission's complaint alleges the

     (1) Defendants Gardner, Powanda, Lenz, Rassam and O'Brien
         violated Section 17(a) of the Securities Act of 1933
         (Securities Act).

     (2) Defendants Gardner, Powanda, Lenz, Rassam, Reichner and
         O'Brien violated Sections 13(b)(5) and 10(b) of the
         Securities Exchange Act of 1934 (Exchange Act) and
         Exchange Act Rules 13b2-1 and 10b-5 and aided and
         abetted violations of Exchange Act Sections 13(a),
         13(b)(2)(A) and 13(b)(2)(B) and Exchange Act Rules 12b-
         20, 13a-1 and 13a-13.

     (3) Defendants Gardner and Lenz violated Exchange Act Rule

     (4) Defendant Stulac violated Exchange Act Section 10(b)
         and Exchange Act Rule 10b-5 and aided and abetted
         violations of Exchange Act Section 13(a) and  Exchange
         Act Rules 13a-1 and 13a-13.

     (5) Defendants Rodda and Whitt aided and abetted violations
         of Exchange Act Section 10(b) and Exchange Act Rule

This is the fifth civil fraud action the Commission has filed in
this investigation. In November 2002, the Commission filed a
civil injunctive action against Ilse Cappel, the former Senior
Treasury Manager at Peregrine (Litigation Release No. 17859A).
In April 2003, the Commission filed a civil injunctive action
against Matthew C. Gless, Peregrine's former Chief Financial
Officer (Litigation Release No. 18093). In June 2003, the
Commission filed a civil injunctive action against Steven S.
Spitzer, a former Vice President of sales at Peregrine
(Litigation Release No. 18191), and a partially-settled civil
injunctive action against the company (Litigation Release No.
18205A). In August of 2003, the Commission announced that it had
fully settled its case against Peregrine and that the United
States District Court in San Diego had entered final judgment
(Litigation Release No. 18290).

The United States Attorney's Office for the Southern District of
California also announced criminal charges against the nine
individuals named in the Commission's complaint, and others who
participated in Peregrine's financial fraud.

The Commission's investigation of the financial fraud is
continuing. Former Peregrine officers and others are cooperating
with the investigations.

The Commission thanks the United States Attorney's Office for
the Southern District of California and the Federal Bureau of
Investigation for their cooperation in this matter. The action
is titled, SEC v. Stephen P. Gardner, et al., Civil Action No.
04 CV 2002 JAH (RBB) (S.D. Cal.)

PHILIP MORRIS: FL Appeals Court Will Not Review Decertification
Florida's Fourth District Court of Appeal denied a request to
reconsider its decision to decertify a class of Marlboro Lights
and Ultra Lights smokers who are seeking the return of their
purchase price of cigarettes sold in Florida since 1971. The
appeals court decertified the Hines class on Dec. 31, 2003.

In December, the Florida appeals court said that Hines could not
be fairly tried as a class action because individual issues
concerning facts unique to each smoker would need to be
resolved. The court said, "The record supports Philip Morris'
contention that the manner in which cigarettes were smoked and
the smokers' reasons for choosing to smoke 'light' cigarettes
could preclude an individual smoker's entitlement to damages
and, thus, would be legitimate issues raised in defense."

PRESTON GATES: Settles Employee's Overtime Wage Lawsuit in WA
The law firm of Preston Gates & Ellis agreed to pay $700,000 to
settle a class action lawsuit that accuses the firm of acting
improperly by not paying the employees for overtime wages, or
compensating them for rest breaks, the Seattle Post
Intelligencer reports.

Filed on behalf of more than 300 of its current and former
employees, the suit focuses on a special group of lawyers known
as the Document Analysis Technology Group, or the DATG, as the
firm calls it, which processes massive amounts of electronic
documents for complex cases. The group's main function is to
review electronic documents from the firm's clients ranging from
images to e-mail messages in an effort to determine which are
appropriate to turn over to the opposing side in response to
requests made during the legal process known as discovery.

The case hinged on a dispute over whether the actual work the
special groups of lawyers were doing qualified them as
professionals, since state law defines that lawyers and other
professionals are exempt from ordinary requirements for overtime
and break pay.

The employees who filed the suit argued that the assignments
they had at the firm such as the routine nature of the document-
processing jobs didn't qualify them as professionals under the
law, since they were not working as lawyers in their positions.

In a declaration filed with the court, Scott McKenzie, the lead
plaintiff in the case described their tasks as being "repetitive
and monotonous," to the point that many them listened to music
while they worked.

Furthermore, the Martin Garfinkel, one of the lawyers
representing the employees in the suit stated that his clients
generally didn't go to court, represent clients, or do anything
else typically associated with the practice of law.

However, Preston Gates, which admitted no wrongdoing in settling
the suit, argued that the document reviewers were indeed working
as lawyers. In one of its court filings the firm even states
that the jobs required them to draw on "special skills"
developed in years of legal training. Even Gerry Johnson, the
Preston Gates managing partner stated that their employees in
the special group are all lawyers and are all professionals and
that the firm managed them consistently with the statutory

The settlement, which was reached in July through mediation, is
set to go to King County Superior Court Judge Paris Kallas for
final approval on October 27, 2004.

ROBERTSON STEVENS: Reaches Pact To Settle Market Timing Charges
Robertson Stevens Investments agreed to settle allegations of
"excessive" market timing in its mutual funds for $30 million,
New York Attorney General Eliot Spitzer said Wednesday,
according to the Associated Press.

Under the settlement, which was reached jointly with the United
States Securities and Exchange Commission, the Company agreed to
pay $11.5 million in restitution and disgorgement to investors.
The firm also agreed to pay 13.5 million in civil penalties and
$5 million in fee reductions to investors over five years.  The
company also agreed to several reforms, like creating greater
accountability and enhancing compliance and ethical controls.  A
full-time senior officer would also make sure the fees charged
are negotiated "at arm's length and reasonable."

"RS managers and executives knew that arrangements with market
timers were contrary to claims made in the company's prospectus
and harmful to long-term investors," AG Spitzer said, according
to AP.  "Despite this knowledge, company officials allowed and
facilitated market timing of funds because it proved to be a
lucrative source of fee revenues."

ROSARIO PARTNERSHIP: Settles FTC Complaint For Business Fraud
Rosario Partnership and its partners, Leonardo Spelzini and
Maite DeNegris and Funes, Inc., and its president, Hector De
Nigris have agreed to settle the Federal Trade Commission's
(FTC) charges that they made false and unsubstantiated weight
loss claims for "Celu-Fat Reductor."

The FTC's complaint, filed in the United States District Court
for the Central District of California, alleges that the
Montclair, California-based defendants made several "red flag"
false weight loss claims, including promises that consumers
would "shrink two sizes in only 10 days," and would be able to
lose weight without dieting or exercising.

The proposed stipulated final order prohibits the defendants
from making claims that any weight loss product causes users to
lose a substantial amount of weight without reducing caloric
intake or increasing exercise. In addition, the order prohibits
the defendants from making false and unsubstantiated efficacy or
safety claims for any health-related service, product, or
program, weight loss product, dietary supplement, food, drug or
device. The settlement contains a judgment of $157,000 that has
been suspended because of the defendants' financial condition.
The stipulated order is subject to court approval.

RHEE BROS.: Recalls Dried Sweet Potato For Undeclared Sulfites
Rhee Bros., Inc. is recalling its 1 lb. packages of 'Dried Sweet
Potato' 'Assi' brand because they may contain undeclared
sulfites. People who have allergies to sulfites run the risk of
serious life-threatening allergic reaction if they consume these

The recalled 'Dried Sweet Potato' 'Assi' brand was distributed
in retail stores on the East Coast. The product comes in a 1 Ib.
package marked with 'Dried Sweet Potato' and 'Assi'. Its item
number is 09870C on the label. No illnesses have been reported
to date in connection with this problem.

The recall was initiated after sampling by 'New York State
Department of Agriculture & Markets' food inspectors discovered
that the sulfites-containing product was distributed in
packaging that did not reveal the presence of sulfites.
Subsequent investigation indicates the problem was caused by a
temporary breakdown in the labeling processes. Wholesale
distribution of the product has been suspended until the company
is certain that the label has been replaced with a corrected

Consumers who have purchased 1 Ib. packages of 'Dried Sweet
Potato' 'Assi' brand are urged to return them to the place of
purchase for a full refund. Consumers with questions may contact
the company at 1-410-381-9000.

RS INVESTMENT: SEC Issues, Settles Securities Fraud Complaint
The Securities and Exchange Commission filed settled
administrative and cease-and-desist proceedings against RS
Investment Management, Inc., RS Investment Management, L.P.
(collectively RS), the investment advisers to the RS complex of
mutual funds and RS's CEO G. Randall Hecht (Hecht) and former
CFO Steven M. Cohen (Cohen). The Commission's order finds that
RS, Hecht and Cohen violated the federal securities laws when
they allowed favored clients to conduct market timing trading in
a mutual fund RS managed in violation of the exchange
limitations set forth in the Funds' prospectus. Under the
settlement, RS will pay a civil penalty of $13.5 million, pay
disgorgement of $11.5 million, and undertake compliance measures
designed to protect against future violations. The penalty and
disgorgement amounts will be distributed to shareholders of the
RS funds affected by the market timing.

The Commission's Order finds that:

     (1) During at least 2000 through mid-2003, RS entered into
         undisclosed agreements allowing certain investors in
         its Emerging Growth Fund (EGF) to engage in frequent
         trading which exceeded the limitations set forth in the
         EGF's prospectus. The trading was in substantial dollar
         amounts, from $15 million to $65 million per trade.

     (2) The Funds' prospectus limited investors to four
         exchanges in a twelve-month period. However, the
         special trading arrangements entered into by RS allowed
         at least five investors to conduct "unlimited trading."

     (4) As part of these arrangements, the investors agreed to
         invest long-term assets, also known as "sticky" assets,
         into the Funds. RS earned approximately $1.7 million in
         additional fees as a result of the special trading

     (5) The Commission's order also finds that RS, Hecht and
         Cohen failed to disclose these arrangements or the
         potential conflict of interest caused by these
         arrangements with the RS Funds' Board of Trustees.

The Order finds that RS violated Sections 206(1) and 206(2) of
the Investment Advisers Act of 1940 and Sections 17(d) and 34(b)
of the Investment Company Act of 1940. RS consented without
admitting or denying the Commission's findings.

Additionally, as part of the settlement, Hecht has agreed,
without admitting or denying the Commission's findings, to cease
and desist from committing or causing RS's violations of Section
206(2) of the Advisers Act and Sections 17(d) and 34(b) of the
Company Act. Hecht will resign as trustee of the RS fund trust
and will not reapply for that position for a period of five
years.  Hecht will curtail certain of his functions as CEO at RS
and will pay a $150,000 civil penalty.

Also under the settlement, Cohen has agreed, without admitting
or denying the Commission's allegations, to cease and desist
from committing or causing RS's violations of Sections 206(1)
and 206(2) of the Advisers Act and Sections 17(d) and 34(b) of
the Company Act, to be suspended from association with an
investment adviser and investment company for a nine month
period, and to not hold the position of officer or director of
an investment adviser or investment company for a two-year

SAFESCRIPT PAHRMACIES: SEC Lodges Fraud Complaint V. Ex-Officers
The Securities and Exchange Commission filed a civil action in
the U.S.  District Court for the Eastern District of Texas
against the following entity and individuals: Safescript
Pharmacies, Inc., f/k/a RTIN Holdings, Inc. (RTIN or the
company), a Longview, Texas based, electronic prescription
technology company; Stanley L. Swanson, RTIN's former CEO; his
son, Curtis A. Swanson, also former RTIN CEO; R. Stephen
Cavender, the company's former CFO; and Curtis A. Borman, a
former RTIN director.

The SEC simultaneously settled its action against RTIN in
consideration for RTIN's consenting to a permanent injunction
against violations of the antifraud, registration, reporting,
books and records and internal controls provisions of the
federal securities laws, and RTIN's consenting to the entry of
an order by the SEC revoking the SEC registration of RTIN's
securities. The SEC also simultaneously settled its action
against Borman in consideration for Borman's agreeing to
disgorge 106,000 options on RTIN common stock, a $25,000 civil
penalty, and a permanent injunction against violations of the
"deception of auditors" provisions, and against aiding and
abetting violations of the antifraud and reporting provisions of
the federal securities laws.

In the civil action filed against Stanley Swanson, Curtis
Swanson and Cavender, the SEC is seeking, against each of them,
a permanent injunction, an officer and director bar,
disgorgement plus prejudgment interest, an accounting, and a
civil money penalty, based on violations by each of them of the
registration, antifraud, falsification of records, deception of
auditors, circumvention of controls and certification
provisions, and on their each aiding and abetting RTIN's
violations of the antifraud, reporting, books and records and
internal controls provisions.

According to the SEC's complaint, in 2002 and 2003, RTIN
materially inflated its reported revenue by selling franchise
agreements to start-up franchisees in exchange for worthless
stock and promissory notes, and then immediately recognizing
revenue from the transactions, despite the franchisees' known
inability to pay. The SEC further alleges that the Swansons,
together with Cavender, fraudulently supported the company's
inflated revenue figures by recording fictitious payments by
franchisees and by using funds from undisclosed, unregistered
distributions of RTIN stock to pay RTIN's debts and management
bonuses. The SEC further alleges that Borman, while he was a
director of RTIN, assisted the company in misleading the
company's auditors about the authenticity of a sham certificate
of deposit, allegedly issued to pay for the purchase of an RTIN
franchise license. The revenue-inflation scheme caused RTIN to
overstate by material amounts its net income in periodic reports
the company filed with the Commission throughout 2002 and 2003.

In its complaint, the SEC alleges that RTIN, Stanley Swanson,
Curtis Swanson, and Cavender violated Sections 5(a) and 5(c) of
the Securities Act of 1933 (Securities Act), and Section 10(b)
of the Securities Exchange Act of 1934 (Exchange Act) and Rule
10b-5 thereunder, and that Stanley Swanson, Curtis Swanson and
Cavender violated Section 13(b)(5) of the Exchange Act and Rules
13b2-1, 13b2-2 and 13a-14 thereunder. The SEC further alleges
that RTIN violated Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B)
of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13
thereunder, and that Stanley Swanson, Curtis Swanson and
Cavender aided and abetted those violations. Finally, the
Commission alleges that Borman violated Exchange Act Rule 13b2-
2, and aided and abetted RTIN's violations of Sections 10(b) and
13(a) of the Exchange Act and Rules 10b-5, 12b-20 and 13a-1
thereunder. The action is titled, SEC v. Safescript Pharmacies,
Inc., f/k/a RTIN Holdings, Inc., Curtis A. Swanson, Stanley L.
Swanson, R. Stephen Cavender, and Curtis A. Borman, defendants,
Civil Action No. 6:04-CV-455 (USDC, EDTX, Tyler Division)

USS ELDER: Court Orders Assets Frozen, Blocks Work-At-Home Scam
The United States District Court for the Central District of
California issued a preliminary injunction against a Los
Angeles-based operation cited by the Federal Trade Commission
(FTC) with perpetrating a classic work-at-home scam.  The order
froze the operation's assets and prohibits the practices alleged
in the FTC complaint.

The complaint was filed against USS Elder Enterprises, Inc.,
America Vespucia Corporation, Ricardo Elder Partners, Inc., and
Ricardo E. Gonzalez, doing business under a series of fictitious
names and operating as a common enterprise.  The defendants
targeted Spanish-speaking consumers looking for well-paying jobs
that do not require English-language skills.

The FTC alleged that the defendants, through ads in various
Spanish-language newspapers and magazines, offered easy product
assembly work, such as key chains or jewelry, if consumers paid
a fee ranging from $50 to $180. Interested consumers were led to
believe that they could earn between $112 and $700 a week for
such work.

In fact, consumers who paid the fee did not receive the promised
assembly project work or substantial assistance getting such
work. Few, if any, realized the promised earnings.  Instead,
consumers received a booklet in Spanish that contained lists of
companies to contact that allegedly offered work-at-home
opportunities.  These companies no longer exist; or they
required payment of additional fees; or they had no relationship
with the defendants.  Many consumers were unable to obtain the
refunds promised by the defendants.

The preliminary injunction, which will be in effect until the
court issues a final ruling on the FTC's allegations, prohibits
the practices alleged in the FTC's complaint and freezes the
defendants' assets. The injunction prevents the defendants from
misrepresenting that consumers will obtain assembly project work
for pay or substantial assistance in obtaining such work; that
consumers are likely to earn a substantial amount of money; and
that the defendants will provide refunds to consumers. It also
prohibits the defendants from failing to comply with the
Telemarketing Sales Rule.

                          Asbestos Alert

ASBESTOS LITIGATION: UK Firemen Move to Minimize Exposure Risk
Noxious fumes drifted over Warndon in the United Kingdom last
week after a garage with a roof containing asbestos was torched.
Firefighters wearing breathing apparatus and special protective
suits tackled the incident at the block of lock-up garages in
Ennerdale Close, at around 10:30 p.m. Officers also went door-
to-door to warn nearby residents to shut windows to avoid
harmful fumes entering their homes.

Two crews from Worcester's Green Watch swiftly dealt with the
fire, before washing down their suits thoroughly to ensure the
asbestos was removed.  The fire gutted the little-used garage,
which contained scrap cars, but no one was injured in the
incident.  An investigation team is trying to discover how the
fire started.  It is being treated as "suspicious."

ASBESTOS LITIGATION: AU Lawyers Cast Doubt on Common Law Claims
A Tasmanian lawyers' group has warned that the State
Government's bid to help asbestos victims through common law
claims could backfire against workers.

Australian Plaintiff Lawyers Association Tasmania spokesman John
Green said allowing common law claims for asbestos would
discriminate against employees who had contracted asbestos-
related diseases from exposure in the workplace.

"These people have to make claims under the Workers Compensation
Act where their common law rights have been gutted. Under the
Government's proposed changes, people exposed to asbestos
outside of the workplace would have those common law rights,"
said Mr. Green.

He said in situations where people could not sue under common
law, compensation was limited to loss of income and medical
costs but common law compensation allowed for pain, suffering
and loss of enjoyment of life.  Mr. Green added, "The APLA is
calling on the government for an amendment to this
discriminatory provision."

ASBESTOS LITIGATION: Rise in Asbestos Death Toll in UK Alarming
The number of asbestos related deaths has risen to 3,500 a year
and is forecast to increase to 10,000 by the year 2020. Hundreds
of thousands of tons of asbestos currently in buildings still
needs to be removed.

Tragic deaths from killer building material asbestos continue to
plague families across the country.  Everyday, increasingly more
people die from a cancer brought on by exposure to asbestos
decades ago and their families are left devastated.

Greater Suffolk Coroner Dr. Peter Dean has the unenviable task
of investigating the deaths resulting from mesothelioma, the
cancer caused by exposure to asbestos. He has to record verdicts
that these people died from industrial disease after working
unknowingly surrounded by asbestos, often for years on end.  He
discusses a few of the most recent cases that he had to

Alfred Bartlett, who was 73 when he died in June, had been
exposed to asbestos throughout his working life. The victim
spent time building and repairing steam locomotives for British
Rail. He said he and his colleagues had been given no formal
warnings about the dangers of asbestos, but they had been told
to tie a string around the sleeves of their overalls. He had
also spent time working for the RAF, London Transport, Ford
Motor Company and ended his career as a warehouseman at
Felixstowe docks.  Mesothelioma was diagnosed after a biopsy and
doctors concluded Mr. Bartlett's death was a result of exposure
to asbestos.

Former Royal Navy electrician Arthur Harris, who was 83 when he
died, had also been exposed to the material.  Mr. Harris had
spent 24 years in the Navy.

The inquest into the death of Irene Smethurst-King revealed no
identifiable source of asbestos exposure. Mrs. King had worked
in both a cotton mill and at a silk manufacturer.

Dr. Dean states that although there was no direct evidence that
she had been exposed to asbestos, it was extremely rare for
anyone to develop mesothelioma unless they had been exposed.  He
said, "On the balance of probability the fact is we have a
mesothelioma and we have a disease that is caused more likely
than not by asbestos exposure."

Sadly, the number of inquests that will hear similar stories is
set to rise as thousands of people were exposed to deadly
asbestos between the 1940s and 1970s.  Helen Bucky from the
occupational and environmental diseases association in East
Anglia said, "The statistics are coming up and it is going to
get worse. The figures are very alarming. It is as big a problem
in East Anglia as it is anywhere.these cases won't stop for
about 20 years."

ASBESTOS LITIGATION: Ex-Navy Overseas Workers Get Compensation
Three U.S.-based military contractors have agreed to compensate
Spanish workers suffering from asbestos-related illnesses due to
their work on U.S. warships in Rota during the Cold War.

American lawyer Mitchell Cohen gave out checks ranging from
US$2,000 to more than US$6,000 to about a dozen workers. Those
with more serious health injuries received more money. More
compensation could be coming to the workers. Mr. Cohen has
targeted about two-dozen companies that he believes owe the
workers compensation for their illnesses because they knew
asbestos was harmful.

Mr. Cohen, who is representing about 60 Spanish workers exposed
to asbestos in the 1950s, '60s and '70s, could not give a total
amount given to the workers or reveal the names of the companies
because of the settlement terms. The companies, which have filed
for bankruptcy, agreed to settle with the former employees.  Mr.
Cohen said, "These companies did not warn people of the dangers.
And the U.S. Navy didn't prevent the companies from warning
people about those dangers."

Many of the Spanish workers have been diagnosed with asbestosis,
a hardening and scarring of the lung tissue that can be fatal.
Some spouses of the workers also suffer from health problems
because they washed their husbands asbestos-covered work

Mr. Cohen is a lawyer with the Philadelphia-based Locks Law
Firm, which represents thousands of American and overseas
shipyard workers exposed to asbestos while working on U.S. Navy
ships. The firm has represented more than 13,000 personal injury
victims across the United States since 1974. The firm typically
does not target the U.S. military for asbestos-related claims,
but instead seeks compensation from private companies.  "The
Navy did not know for a long period of time the harmful effects
of asbestos, but the companies did," he said.

Although the Naval Station Rota is a Spanish base, U.S. courts
ruled that the claims could be filed in the United States
because the employees worked on American ships, which is
considered sovereign U.S. territory by law.

ASBESTOS LITIGATION: PTA Alarmed Over Repair Work at PA School
Parents want more reassurances that roof replacement work at
Pivik Elementary School isn't harming their children, a Parent-
Teacher Association member told the Plum school board.

As roof-repair work was ongoing, workers discovered that
asbestos adhesive was present under the old material.
Consequently, the budget ballooned from US$250,000 to
US$624,000, nearly tripling in cost. The district decided to go
ahead with it since water damage would have worsened; assuring
the parents that state guidelines would be strictly followed.

But the association insisted that some children have been
experiencing headaches and nausea to increased asthma attacks
since the work began. The parents claim that even though
children are not allowed to enter areas where work is being
done, they may still be affected.

Viola Valletta, chairwoman of the PTA Health and Safety
Committee, said that more complaints are coming in daily. "I
feel there is some panic occurring," she said.

Ms. Valletta said one pressing concern is the smell of tar in
the front hall, which seems to be evident of the air-
conditioning units drawing in outside air. In some classrooms,
some teachers refused to shut their windows. She believes those
issues could be addressed easily.

Officials stated that all precautions are taken to ensure
safety. They emphasized that removal work is done only on non-
school hours. Also, the area is regularly tested while removal
is going on to ensure the air quality is not compromised and the
results of these tests are published on the district's

But Ms. Valletta said the PTA is willing to go further to help
the district assure parents it is safe. Superintendent George
Cooke agreed, adding that for immediate concerns, parents should
call the district to get accurate answers.

ASBESTOS LITIGATION: ATC Releases Revised Statement on Diseases
In its first official statement since 1986 on the topic, the
American Thoracic Society has published a document entitled
"Diagnosis and Initial Management of Nonmalignant Diseases
Related to Asbestos."

The revised statement, updated and reviewed by an 11-person
committee of experts, appeared in the American Journal of
Respiratory and Critical Care Medicine. According to the
authors, the new statement is designed to provide guidance to
clinicians in the diagnosis of nonmalignant asbestos-related

The nonmalignant medical conditions covered, which are
associated with breathing the mineral dust, include: asbestosis,
a chronic, progressive lung disease often marked by scarring or
fibrosis of the lung tissue; pleural plaques and more diffuse
forms of pleural thickening; benign or nonmalignant pleural
effusions; and airway obstruction.

In the late 19th century, industry recognized that commercial
asbestos had high tensile strength, flexibility, resistance to
chemical and thermal degradation and high electrical resistance.
Asbestos was widely used in the past for insulation, brake
linings, flooring, cement, paint, textiles and various other
products. However, after documentation of its hazards in the
1970s and 1980s, use of asbestos fell rapidly, and the
industrial mineral was ultimately banned in many Western

When a physician suspects asbestos-related illness, the document
advises the doctor to take a comprehensive occupational and
environmental history, with emphasis on exposure 15 years or
more prior to the current office visit. The report estimates
that asbestos is still a hazard for 1.3 million workers in the
construction industry in the United States and for workers
involved in the maintenance of buildings and equipment.

According to the experts, a chest X-ray is an extremely useful
tool to aid in the diagnosis of asbestos-related pleural
disease.  In addition, the report notes, "The specificity of the
diagnosis of asbestosis increases with the number of consistent
findings on chest film, the number of clinical features present,
and the significance and strength of the history of exposure."

However, according to the document, once exposure to asbestos
has occurred, no prophylactic medication or treatment is
currently available to prevent the development or the
progression of asbestosis or other asbestos-related diseases.
Treatment is often designed to ease symptoms.

ASBESTOS LITIGATION: Asbestos Disposal in Bermuda Now Available
An acceptable solution to disposing hundreds of containers of
asbestos is within reach, Bermuda's Premier Alex Scott said.

Mr. Scott confirmed that Cabinet has received a British
Government funded report on asbestos disposal, and said the
issue of who foots the bill was now irrelevant as the solution
may not be that expensive. He would not say what the study
recommended, but it seems more than likely that the asbestos
would be disposed of on an island. Government has been hesitant
to ship it overseas because of potential liability should the
hazardous substance cause problems elsewhere.

The Bermuda Government has for the past few years been grappling
with how to dispose of the asbestos, an estimated 150 20-foot
sea containers left here by the U.S. Navy when it vacated the
former Baselands. A deal to terminate the lease for the
properties was agreed between the United Kingdom and the United
States but neither of the two powers made any provision, or
commitment, to clean up tons of waste left behind by the

The study, which was done by consultants W.S. Atkins, looked
into costs, international regulations, insurance and liability
issues, local environmental concerns, health risks and disposal
of hazardous waste in the future.

"They have given us viable options and it's for the Environment
Ministry and Works & Engineering to put in place a practical way
forward based on those recommendations," the Premier said.

In October 2003, the UK's Overseas Territories Minister Bill
Rammell and the Premier reported that the UK was to look into
alternative sources of funding for disposing of the island's
asbestos waste. The joint statement came after months of
wrangling over the matter with the UK stating definitively that
it would not be paying for the disposal. But the UK did agree to
pay for a study, and a report was handed to Cabinet this summer.

Bermuda has been concerned with the cost of cleaning up the
toxic stockpile, and the potential liabilities should the
asbestos be shipped off the Island. Asbestos can be found in
about 70% of the abandoned buildings on the former U.S. bases,
and more than 25% of that is crumbling.

There are about 411 asbestos containers currently being stored
in Bermuda at two locations. Currently the Island has no
specific legislation targeting the removal of asbestos, or the
training of workers dealing with asbestos. Instead, Bermuda
relies on guidelines provided by the United States Environmental
Protection Agency.

ASBESTOS LITIGATION: UK Council Investigates Asbestos Dumping
Council officers are investigating whether this pile of
corrugated iron, which was dumped on a footpath about a month
ago, contains asbestos.

Ron Aston, director of Sawford Engineering in Priors Haw Road,
Corby, has twice reported the dumped waste to the environmental
health department of Corby Council. The mess lies on a path next
to his factory that has become a dumping ground for fly-tippers.

Council spokesman Madelyn McAlpine said, "Corby Council does not
ignore the dumping of dangerous waste, such as asbestos, and
takes the matter very seriously. On this occasion there appears
to have been a mistake, which we are investigating. Asbestos is
a dangerous substance and it is irresponsible of people to dump

The council has sent out an officer to assess whether the
material was asbestos or not. If it is asbestos, the authority
will call in a specialist contractor to remove it safely.

ASBESTOS LITIGATION: UK Officers Intensify War V. Fly-tippers
Hidden cameras and secret tracking devices are just some of the
surveillance techniques in the planning stage as enforcement
officers wage war against professional fly-tippers dumping
dangerous waste at some of the city's worst hot spots.

Amjad Ishaq, of Bradford Council's ten-strong enforcement team,
said, "Clearly people are making a business out of this and
there is a lot of it going on in Bradford. We are told that
people are moving out of drugs and into waste because it's
profitable and people do not tend to end up in prison."

The crackdown comes as the Environment Agency confirmed large-
scale tipping by gangs was on the rise across the UK. Mr. Ishaq
warned a sting operation was on its way in Bradford after talks
between the Council and the Environment Agency to discuss
surveillance techniques.

He said the Council was planning to install CCTV at trouble
spots and run sting operations to catch illegal operators in the
act. He admitted the problem in Bradford was getting worse
because of the rising cost of waste disposal.

Councillor Mukhtar Ali, who campaigned with residents to try to
get the Sandford Road rubbish cleared, welcomed the move.
"Enforcement of this nature will help alleviate and help reduce
the amount of rubbish being fly-tipped in Bradford," he said.

ASBESTOS LITIGATION: Waste Disposal Costs to Increase in Ireland
Small businesses in Northern Ireland could expect a sharp rise
in waste management costs due to the EU Landfill directive which
came into force last month, said Democratic Unionist Party
spokesman Robin Newton.

Mr. Newton said business groups and MPs have all issued warnings
that the Government's poor handling of the landfill regulations
would lead to problems such as fly-tipping of asbestos and other
toxic waste, extra business costs and a slowdown of building on
brown field land.

He adds that on the British mainland, substances such as
asbestos, acids and pesticides will no longer be accepted at
most landfill sites and the number of landfill sites that can
accept hazardous materials is expected to drop from over 200 to
around 10.  "However, more alarmingly, there are no landfill
sites within Northern Ireland that are able to accept hazardous
materials," said Mr. Newton.

ASBESTOS LITIGATION: Asbestos EPA Tests Done at CA High School
The Environmental Protection Agency are testing for the presence
of potentially dangerous amounts of asbestos in the area
surrounding Oak Ridge High School in El Dorado Hills, where high
levels have already been found in the soil.  Asbestos occurs
naturally in parts of El Dorado County. The mineral is inert as
long as the soil is undisturbed, but if inhaled can cause
several life-threatening diseases.

"Exposure to asbestos causes lung cancer. It's one of the
handful of known human carcinogens," said EPA spokesperson
Jerelean Johnson.

Testers could be seen wearing protective masks while they played
baseball on the diamond, stirring up dust. The point was to see
how much exposure they would be subjected to while playing the
game. Several area sports grounds, playgrounds and trails will
remain closed during the EPA testing.

The EPA expects it will be several months before test results
are completed. If there are high levels of asbestos found,
officials say they will properly coordinate with the public to
figure out the next step.

ASBESTOS LITIGATION: JPN Firms Accept Chemical Disclosure Regime
More than 10,000 manufacturers of electric machinery and
electronics products in Japan, the U.S. and Europe will likely
standardize information disclosure for harmful chemicals used in
their products.

The system is expected to cover 24 substances that are harmful
to humans, as well as their compounds. Under the system, parts
and materials suppliers will be required to report their use of
these substances, which include lead, mercury, asbestos and
polychlorinated biphenyl or PCB.

All such reports are expected to cover eight points, including
the type of part that contains these substances, its weight, and
its use. Twelve additional points, such as contact information
for personnel in charge of the report at the supplier, may also
be required.

Many manufacturers have been voluntarily gathering information
on harmful substances used in parts and materials from their
suppliers. But the lack of a clear standard means that suppliers
have to produce several different reports for the same product
to satisfy the requirements of different customers. A
standardized reporting mechanism will likely save time and
effort for both manufacturers and suppliers.

The standardized information disclosure requirements will not
likely be made into a binding rule, but are expected to become a
de facto standard. As such, companies in China and other
emerging Asian countries will also likely be compelled to
embrace it in order to continue doing business with their
customers in industrialized countries.

The firms, which include Canon Inc, Sony Corp, NEC Corp, Siemens
AG, IBM Corp, Intel Corp and Motorola Inc, plan to draw up a
draft for the system, with the goal of implementing it early
next year. They hope to sign up as many as 13,000 companies.

ASBESTOS LITIGATION: Controversy Hits Dar Malta Sale in Belgium
Malta House has been at the center of a raging controversy ever
since the story first broke about the high price its government
is paying for the building to accommodate the permanent
representation to the EU.

Apparently, the building purchased by the Maltese government in
the heart of Brussels has to be cleared of asbestos. The
operation to rid Malta House of asbestos forms part of the
refurbishment process, expected to cost MTL2.5 million.

Asked whether government was aware of the presence of asbestos
before purchasing the building, the Office of the Prime Minister
said the "removal of asbestos is the responsibility of the
seller and was included in the costs for the refurbishment." The
office also did not say what share of the cost was attributable
to asbestos removal, which is known to be very expensive,
requiring specialized personnel and equipment to carry out the

The purchase of the building at such a lucrative price was
"conceived, controlled and pushed" by Richard Cachia Caruana, in
the words of former minister John Dalli. The choice of experts
was also Cachia Caruana's, giving rise to accusations of
nepotism after it transpired that he chose close friend Peter
Caruana Galizia as lawyer and his personal architect Martin
Xuereb to be involved.

The block was purchased for MTL6.5 million and an additional
MTL2.5 million would be required for refurbishment, according to
the government estimate. Prime Minister Lawrence Gonzi has
repeated more than once that government intends leasing out
three or four floors for commercial purposes even though it is
still unclear whether renting out would cause government to lose
its tax exemptions.

When pressed for more information, the reply from the Prime
Minister's communications officer remains,  "We will give them
to you when we have them."

ASBESTOS LITIGATION: TX Lawyer's Career Built on Asbestos Cases
Few legal careers track more closely with the 30-year history of
asbestos litigation than Fred Baron's. Praised as a brilliant
tactician, criticized as an opportunist whose firm boldly pushed
the ethical envelope, he built one of Texas' largest plaintiffs
firms, Dallas-based Baron & Budd, from hundreds of millions of
dollars in asbestos settlements and verdicts.

Today, the firm has 78 lawyers, 400 support staffers, three
corporate jets, a double-digit percentage of the roughly 295,000
asbestos claims pending across the nation and annual revenues
estimated by Forbes at US$150 million a year. Baron's share,
US$21 million a year, the magazine estimates.

Mr. Baron scoffs at that number and says he sold his partnership
share at the end of 2002 so as to not present a conflict of
interest with his present job, raising money for the Democratic
presidential ticket. He admits however, that he is still an
employee of the firm. His wife, Lisa Blue, remains a partner.

In the early 1970s, the famed lawyer was among those who
disclosed documents showing how asbestos manufacturers hid
evidence of the dangers of asbestos and, from the 1920s on,
exposed hundreds of thousands of workers to the potentially
lethal product.

As a young lawyer fresh out of the University of Texas, Baron
took the case of workers at a Pittsburgh Corning insulation
plant in Tyler and eventually won a US$2 million settlement for
a group of workers there.

"I'm convinced lawsuits had more of an impact [on worker safety]
than anything else," Mr. Baron said.

Mr. Baron fought and won against the rival firms' attempts to
enter into massive class-action settlements. He says the
settlements would have harmed so-called future claimants, those
who had been exposed in the past but had not yet developed
asbestos-related cancers or lung ailments. The settlements also
would not have been as beneficial to Baron's firm as the status
quo, under which it collects 40% contingency fees as long as
there are cases to bring.

As it grew, Baron's firm adopted several practices that
increased its caseload, revenue and reach, but came under fierce
criticism as the number of asbestos cases proliferated and
companies began filing for bankruptcy under tons of claims too
numerous to fight in the courts. To generate cases, Baron & Budd
used mass screenings of former shipyard and factory workers to
enlist clients, then coached and prepared them with practices
that struck some as beyond ethical boundaries.

"I don't think we are the devil," he said. "We do a very good
job for our clients. I think the system by in large has worked
very well."

ASBESTOS LITIGATION: Judge Delays Hearing of MO Asbestos Suits
A circuit judge has given lawyers more time to prepare for a
hearing on the status of asbestos cases in three southwest
Mississippi counties.

During this week's hearing in Fayette, attorneys for several of
the plaintiffs said they didn't receive proper notice and didn't
have enough time to respond to motions by the defendants. Judge
Pickard rescheduled the hearing for October 15 in Jefferson
County Circuit Court. He also gave plaintiffs an October 12
deadline to file written responses to defense motions. The case
involves thousands of plaintiffs in and outside Mississippi and
hundreds of defendants.

The defendants are mostly companies where the plaintiffs claimed
to have been exposed to asbestos. They were asking Circuit Judge
Lamar Pickard to either dismiss the cases in Jefferson, Copiah
and Claiborne counties or order plaintiffs to provide more
information about their claims.

The defendants said they received no basic information about
each of the plaintiffs. Attorneys for the plaintiffs, according
to the court record, said such details would come out when the
cases were tried one at a time.

Chief Justice Jim Smith said the information should have been
included in the lawsuits. "This complaint comes to us from
plaintiffs who, more than three years ago, filed suit against
137 defendants, who have amended the complaint six times and who
are apparently unable to explain to the trial court, this court
or to the defendants, exactly who each plaintiff has sued and
why," he wrote.

On August 26, the Mississippi Supreme Court ruled in a case from
Bolivar County that such lawsuits must include the names of each
defendant being sued, when the plaintiff was exposed and the
work site where the exposure occurred. If not, separate trials
should be set for each plaintiff and cases involving residents
outside the county or state should be transferred to other

In those cases, the court said it was improper to group
plaintiffs together when their claims did not arise from the
same incident.

The defendants in Pickard's court are seeking the same remedy.

"We were pushing these issues before but we didn't have Supreme
Court precedent. It is what we had always said the Supreme Court
would do if they addressed these issues. So, it's nice to be
validated," said Marcy Bryan Croft, a Jackson attorney
representing defendants.

ASBESTOS LITIGATION: UK Councilor Upset by Delay in Demolition
A Ballymena, United Kingdom councilor is "losing sleep" over the
risk to children posed by 30 derelict "deathtraps" in the
Shanowen area of Ballee.

Councilor Beth Adger said that young lives will be lost if there
is any further delay in the demolition of the vacant properties
by the Housing Executive. So far, only four houses have been
torn down.  "I have seen kids going in through the roofs myself.
All it takes is for somebody to set a match alight and the whole
thing will go up in smoke," she said.

The councilor added that she was fed up with excuses from the
Housing Executive, which had continued to delay the work. A
spokesperson for the Housing Executive said that "appropriate
approvals" had been obtained to demolish around 30 properties
and that, following the completion of necessary asbestos
surveys, six had already been leveled.  "The Housing Executive
is conscious of local concerns, and is working to have the
remaining properties removed as quickly as possible," she added.

ASBESTOS LITIGATION: Ex-Union Carbide Mill Workers Fear Asbestos
As several trials against Union Carbide are emerging across the
country, the company has asserted that its asbestos couldn't be
the culprit because none of the King City mill hands has ever
been determined to have an asbestos-related disease.

However, a small but growing number of mill hands have come to
feel haunted, fearing that the work they did could end up
killing them. Over the decades, 450 men and women worked at the
mill near King City, a town of 11,000 in southern Monterey

Art Valdez, who worked for the Company for 26 years, says that
even after learning of the fatal hazards of asbestos, he didn't
think that it would damage his lungs or mark him for cancer. The
mill bosses told him that the kind of asbestos Union Carbide
Corp. manufactures wouldn't hurt him, he said, and he believed
them. He has changed his mind since then. He has now become
something of an activist, a role he never expected to play.

What angers the former mill hands is that Union Carbide may have
kept them in the dark about what it knew of Calidria's potential
dangers, including the lung damage suffered by laboratory rats
in Union Carbide's own tests in the 1960s.

The Company defends itself against people's claims that Calidria
in their homes or workplaces gave them cancer by claiming that
none of its own mill workers have been inflicted with any
asbestos-related disease.

Union Carbide further contends that recent research shows that,
unlike those of other forms of asbestos, Calidria's fibers are
short enough to be easily expelled from the respiratory tract
and lungs before causing damage.

However, Company documents disclosed in lawsuits in Georgia,
Texas and Florida indicate that Union Carbide doctors saw
symptoms possibly associated with asbestos-related disease in
King City workers on about three dozen occasions. At least three
workers have died of cancers that may be associated with
asbestos, though in each case other factors, such as smoking,
could be to blame.

Today, Union Carbide, a unit of Dow Chemical Co. since 2001,
faces a mountain of lawsuits over injuries and deaths blamed on
the asbestos shipped around the world from King City. None of
the King City workers is a plaintiff in any of these cases, but
Union Carbide has made them key to its defense: If the people
who milled Calidria aren't ill, then the plaintiffs are blaming
the wrong asbestos -- and the wrong company.

The mill was considered a model in asbestos hygiene. It was
state of the art for its time, the first to use a wet process to
control the dust. But it was dusty nonetheless, workers said,
especially when churning out its biggest moneymaker, Resin Grade

Taking the most conservative approach possible, Union Carbide
says that they advised plant workers that breathing in any
asbestos could put them at risk.

But no matter what the experts determine, unless one of the
former workers is diagnosed with an asbestos-related disease,
there may be no cause for an injury claim.

ASBESTOS LITIGATION: Protesters Rally Against Canada's Actions
About 100 people have gathered outside the Canadian High
Commission in Canberra to protest the country's support for the
production and export of asbestos.

Unions say there is intense public anger over the conduct of
some asbestos manufacturers. The Construction Forestry Mining
and Energy Union said Canada was one of the few countries in the
world still mining asbestos, and was one of the world's largest
exporters of the white asbestos or chrysotile.

Construction, Forestry, Mining and Energy Union spokesman John
Sutton said that while most European countries and Australia had
banned the use of asbestos, the Canadian government had actively
blocked the listing of white asbestos in the major international
toxic substances convention.

He says it is reprehensible, given tens of thousands of people
around the world have died as a result of mesothelioma and when
you consider that most of Canada's white asbestos is being
exported to developing countries.

"With 100,000 people dying every year worldwide from asbestos-
related diseases, the Canadian government needs to seriously
reconsider its policies on asbestos production and export and
move quickly to ratify the Rotterdam Convention," Mr. Sutton

ASBESTOS LITIGATION: Coalition Pledges AUD137M to Fight Cancer
A research center into asbestos-related diseases will be created
as part of the Coalition's AUD137 million investment in cancer
care, treatment and research.

Health Minister Tony Abbott announced that a reelected Coalition
government would spend AUD60.6 million to support Australians
living with cancer, AUD42 million on cancer research and AUD34.5
million to prevent and detect cancer.

"The Coalition will establish a national bowel-cancer screening
program, fund a new campaign to reduce smoking by pregnant women
and promote community awareness about skin cancer," Mr. Abbott

Labor has already outlined a AUD112 million plan to improve
access to cancer treatment and improve cancer prevention
programs targeting lung, skin, bowel, prostate, ovarian and
testicular cancer. About AUD48 million would be invested in more
clinical cancer studies and developing a new Medicare item to
cover multidisciplinary medical care for cancer patients.

Mr. Abbott said the Coalition would create a new national
agency, Cancer Australia, to coordinate services by bringing
together scientists, doctors, consumers, industry and
government. The party also promised to establish a research
center for asbestos-related diseases which were likely to cost
the community AUD5 billion during the next 35 years.

The Coalition would create 100 new undergraduate university
places for radiation therapists, develop training courses for
oncology nurses and provide professional development for cancer

"Through targeted investment and highly skilled professionals
and researchers, Australia is well placed to move forward
towards an age of cancer prevention and cure," Mr. Abbott said.

ASBESTOS LITIGATION: Federal-Mogul Seeks US$1.9B Citigroup Loan
Federal-Mogul Corp is asking a U.S. bankruptcy judge for
permission to borrow as much as US$1.93 billion from Citigroup
Inc. to help fund its reorganization.

Federal-Mogul, the world's largest maker of engine bearings and
seals, asked U.S. Bankruptcy Judge Raymond T. Lyons in Trenton,
NJ, to approve a US$500 million loan to help pay for operations
during reorganization and US$1.43 billion of financing for use
after the company exits bankruptcy. Billionaire financier Carl
Icahn, who is Federal Mogul's largest creditor, and other
bondholders support the company's request, according to a lawyer
involved in the negotiations.

"We are very much in support of it," said Peter D. Wolfson,
lawyer for the Federal-Mogul creditors committee. "We invited
several financial institutions to make offers. Citigroup gave us
the best proposal and we negotiated a deal that was very

The new funding would give Federal-Mogul "a very substantial
cash cushion" and more favorable terms than existing borrowings,
Mr. Wolfson said. The US$500-million loan would replace
bankruptcy financing from JPMorgan Chase & Co., which was
approved by a judge days after Federal-Mogul's October 2001
Chapter 11 filing.

The Southfield-based company filed for bankruptcy after a surge
in lawsuits filed by people who claimed they were exposed to
asbestos by companies that were later acquired by Federal-Mogul.

Federal-Mogul's plan to exit bankruptcy would give 50.1% of the
reorganized company's stock to current and future asbestos-
injury claimants and 49.9% of the new shares to bondholders and
other creditors. The new loans "will help facilitate an
efficient and cost-effective transition" out of bankruptcy,
Federal-Mogul said.

A hearing to approve the recovery plan is set for December 9. A
hearing on the company's request for the loan is scheduled for
October 22, court papers show.

Asbestos, widely used as a fireproofing material until the
1970s, has been linked to lung ailments and a rare form of
cancer that can surface years after exposure to the material.
More than 70 former makers or sellers of asbestos-containing
products have filed for Chapter 11 protection since 1982.

ASBESTOS LITIGATION: FL Hurricane Clean-up Generates US$3.5 Mil
PDG Environmental Inc. completed US$3.5 million worth of cleanup
work in Florida and expects additional revenues of as much as
US$10 million. The environmental contractor sent more than 600
managers and laborers to Tampa and Fort Lauderdale after the
region was hit by four hurricanes. Crews are doing mold
remediation, drying, asbestos removal, demolition and general
cleanup of the affected areas.

Since the arrival of Hurricane Charley in Florida in early
August, the Churchill-based company, which specializes in
asbestos removal, has quadrupled its work force. It expects
business related to the cleanup after the spate of hurricanes
could generate US$5 million to US$10 million of revenue over the
next three to six months.

The Florida offices have dealt with hurricane damage before, but
the devastation wreaked by four storms in six weeks was more
than they could handle on their own.

Company spokesman Shawn P. Regan said, "We've been working on
critical buildings, such as schools and hospitals, just to get
them back online. That will taper off, but then you get into the
stuff that's not as critical . There are a tremendous number of
residences that we haven't even touched yet. The work's going to
go on for many months."

ASBESTOS LITIGATION: AU Council Imposes Harsh Fine for Dumping
Asbestos dumped on a Killara roadside has prompted Wodonga
council to warn that anyone caught dumping rubbish will receive
a harsh fine.

Council health and community services manager Mr. Mark Verbaken
said the council engaged qualified contractors to remove the
substance early this week after being advised of the dumping.

Mr. Verbaken said, "Littering is not acceptable and in a case
such as this, the result could have caused an environmental
problem if the rubbish had made its way into the Kiewa River. At
the end of the day it is the whole community who ends up paying
for rubbish that is dumped."

Mr. Verbaken said dumping rubbish carried a AUD200 fine and the
council would pursue anyone caught. He said the council had
report forms and people who saw others dumping rubbish should
write down car number plates or other descriptive details and
lodge a complaint.

"We try and determine where the rubbish is from and if we find
the person who did the littering we will issue a litter
infringement notice," Mr. Verbaken said.

The man who reported the asbestos dump to council, Mr. Terry
Dare, praised the council for its swift clean-up but called for
a "no dumping rubbish" sign to be erected. Mr. Verbaken said
council was more than happy to investigate the need for signage
on the road.

ASBESTOS LITIGATION: UN Alarmed Over Risks from Ships off Iraq
As many as 500 sunken ships lie in Persian Gulf waters around
Iraq, posing a serious environmental risk and hampering access
to its ports, the United Nations said.

Experts are sounding the alarm this week at a Kuwait meeting at
which the UN and donors are discussing with the Iraqi and
Kuwaiti governments how to tackle the problem.

A spokesman for the UN Development Program explained that the
scope of the problem was not known, as Iraq had not granted
access to the waters before the second Gulf war. Most of the
wrecks date from the 1980-88 Iran-Iraq war and the first Gulf
war in 1991, although the UN says there are some from the most
recent conflict. Their removal is seen as crucial to any
refurbishment of Umm Qasr and Al Zubayr ports.

According to the report, the ships contain a poisonous
assortment of metals including lead, pesticides, hydrocarbons
and munitions. Many ships were carrying heavy crude oil, fuel
oil or military ordinance as cargo. Even those with more benign
freight contain fuel oil, battery acid, hydraulic fluid and

"Virtually all these vessels are slowly leaking substances that
are damaging to marine life and people," the UN says.

Paul Clifford, an adviser to the UNDP survey team, said, "It is
essential for the countries that rely on the purity of the
waters of the Arabian Gulf for desalination and the health of
fish stocks that all necessary steps are taken to ensure it
continues to be a life source for future generations."

The UN says wrecks should be removed in manageable batches of 20
at a time. The cost of removing the larger wrecks runs from US$1
million to US$8 million a vessel. Removing the sunken ships
currently impeding access to the ports and restoring the
channels to their designed depth of 12.5 meters would cost about
US$34 million.

But the United Nations Joint Logistic Center estimates that Iraq
now spends an additional US$190 million a year importing goods
overland that could be brought in much more cheaply by sea.

The UN believes the investment in clearing wrecks would pay for
itself within a year. It has also proposed an oil spill
contingency plan.

ASBESTOS LITIGATION: Asbestos Threat Halts Demolition of NY Site
A project to demolish and remove a number of small homes and
debris from a 16-acre site here has been halted over the
possibility that asbestos might be present.

The site off Canal Road near the Mohawk River is the location of
Krause's Restaurant and Grove. It is owned by Gary and Gail
Krause, who are planning to develop the property once the debris
is removed.

Officials with the state Department of Labor asked for and
received a temporary halt to the demolition of the structures on
the Krause site. Francina Kitchen of the Department of Labor
said the department had received information that there may be
asbestos in some of the buildings on the site or in the
construction debris that litters it. Ms. Kitchen said the
project was stopped voluntarily while samples are tested

The restaurant site became a scene of anger and despair earlier
in the summer when many long-time lease holders vacated their
homes. When a 30-day-clause in their leases was invoked, many
vacated the homes rather than move them. Some destroyed parts of
the homes before vacating. Since that time, the site has been
the scene of at least two unexplained fires that partially
destroyed what was left of the homes.

The town has been after the Krauses to move forward more quickly
with the demolition and removal process. Town Planning Board
Chairman and Public Safety officer Steve Watts said he has given
the Krauses four citations for safety and health violations over
the structural debris. The Krauses were fined US$50 in Town
Court on September 22 for having an unsafe structure. They paid
the fine that same night.

A second construction company, BBL Services, now has the
contract for the demolition and removal of the buildings.
Director of Operations Todd Woods said the company has hired an
independent company to do a round of tests and will refrain from
doing any work until the results of the tests come in.

"We're a big company, and we understand our obligations. We'd
like the public to know that we do the right things whenever
requested. As soon as the complaint came in, we stopped things.
We don't want to proceed if it's dangerous to our workers," said
Mr. Woods.

ASBESTOS LITIGATION: MLA Gets Acclaim as Asbestos Bill Thrives
Independent Member of the Legislative Assembly Helen Cross could
be the most successful cross-bench politician in the 15-year
life of the ACT Legislative Assembly after having no less than
four of her bills adopted, more than the combined six-member
Liberal Opposition had achieved in three years.

Two of the outstanding MLA's bills, on asbestos awareness and on
keeping pharmacies out of supermarkets, are in the early stages
of being adopted by other state governments across the country.

Her four landmark bills include the Smoking (Prohibition in
enclosed public spaces) Bill 2003, the Residential (Awareness of
Asbestos) Bill 2004, the Pharmacy Amendment Bill 2004 and the
Discrimination Amendment Bill 2002 that outlawed discrimination
against women on the grounds of pregnancy.

Ms. Cross believes she has experienced the worst and the best of
Assembly politics, having to contend with threats and pressure,
which led to amendments to the Electoral Act that could have
signaled the end of her political career. Ms. Cross is fighting
her first election as an Independent after resigning from the
Liberal Party in 2002.

Ms. Cross has long been a strong advocate for the community on
business, health, women's issues and planning. She was the first
in Australia to spearhead a ban on smoking in enclosed public
places. She said her asbestos legislation is being promoted in
other state governments and she expects to see it taken up

ASBESTOS LITIGATION: Research Foundation Hosts Int'l Symposium
A lethal, but long-overlooked cancer will take a major step out
of the shadows next week, as The Mesothelioma Applied Research
Foundation convenes the First International Symposium on
Malignant Mesothelioma.

Mesothelioma is a rare, asbestos-related cancer. Research
efforts were overlooked for decades, and effective treatment
lags far behind other cancers. At the same time, incidence in
the U.S. and globally is increasing to what some experts term
epidemic proportions. The widely reported asbestos exposures
resulting from 9/11 have increased the urgency of developing
treatments for mesothelioma, in the view of many experts. The
Symposium, to be held at Las Vegas' MGM Grand Hotel October 14-
16, 2004, is the first ever meeting designed to unite the entire
mesothelioma-concerned community to focus on the research needed
to cure the disease.

The importance of this effort is gaining national attention.
Today, the Honorable Harry Reid, Nevada Senator and Democratic
Whip, confirmed that he will attend to deliver the Symposium's
keynote speech. Jordan Zevon -- son of critically-acclaimed
singer-songwriter Warren Zevon, who died from mesothelioma one
year ago -- will also appear. Washington Senator Patty Murray
will receive an award in the name of Congressman Bruce Vento,
who died from mesothelioma in 2000.

The Symposium combines a scientific and medical conference with
workshops designed specifically for patients, family members,
industry representatives and others interested in the disease.
Scientific Co-Chairs Nicholas Vogelzang, MD, Director of the
Nevada Cancer Institute, and Harvey Pass, MD, Chief of Thoracic
Oncology at Wayne State University's Karmanos Cancer Center,
have assembled presentations by the world's leading mesothelioma
surgeons, oncologists, and geneticists. Collectively, they will
advance scientific understanding of the disease, while educating
front-line physicians, as well as patients, families and all who
help them, on recent advances, current treatment options, and
emerging potential therapies for mesothelioma.

Additional presentations will address how both America's public
and private sectors can allocate resources toward medical
research to improve mesothelioma treatment. Representatives from
government agencies, pharmaceutical companies, and law firms and
corporations who might typically be found on opposite sides in
asbestos litigation are all expected to participate.

"Bringing together these diverse members of the mesothelioma-
concerned community is the key step needed right now in the
effort to solve the problem," said MARF executive director Chris
Hahn. "This is also an important opportunity for us to build
community among patients, family members, volunteers and patient
advocates and provide them with knowledge, encouragement and
hope as they observe first-hand the dedication and brilliance of
those who are working so passionately to unlock the secrets of
this disease."

Hahn continued by thanking the co-chairs, Dr. Vogelzang and Dr.
Pass, for their efforts and expertise in assembling the
Symposium, and the financial sponsors who are helping to make it
possible: SimmonsCooper, Brayton Purcell, Waters & Kraus,
Stanley, Mandel & Iola, Wise & Julian, Bergman & Frockt, The
David Law Firm, and Alfacell Corporation.

The Mesothelioma Applied Research Foundation (MARF) is the
national nonprofit organization whose mission is to eradicate
mesothelioma as a life-ending disease.

For more information, contact The Mesothelioma Applied Research
Foundation (http://www.marf.org/)Executive Director,
Christopher E. Hahn, 805-560-8942, c-hahn@marf.org.

ASBESTOS LITIGATION: Sen. Reid Introduces Asbestos Awareness Day
The Asbestos Disease Awareness Organization (ADAO), an
organization dedicated to serving as the voice of asbestos
victims, applauds Senator Harry Reid (NV) for introducing a
resolution designating April 1st 2005 as "Asbestos Awareness

This resolution, proposed by the Asbestos Disease Awareness
Organization, will raise public awareness about the dangers of
asbestos exposure and asbestos related diseases.

"By introducing this Senate Asbestos Awareness Day Resolution,
Senator Reid has taken an important step towards increasing
asbestos awareness in this country," said Jordan Zevon, ADAO
National Spokesperson, "We applaud Senate Reid's leadership and
encourage his Senate colleagues to support this landmark

"Unknowingly, many innocent people have been occupationally or
environmentally exposed to asbestos, and know little about the
early warning symptoms of asbestos related diseases." said Linda
Reinstein, Executive Director, Asbestos Disease Awareness

"I'm optimistic that Congress will support asbestos awareness as
the country works towards prevention, early diagnosis, new
treatments and a cure."

Asbestos Disease Awareness Organization was founded by asbestos
victims and their families. ADAO seeks to give asbestos victims
a united voice to help ensure that their rights are fairly
represented and protected, and raise public awareness about the
dangers of asbestos exposure and the incurable and often deadly
asbestos related diseases. ADAO is uniting veterans,
firefighters, shipbuilders, teachers and thousands of other
concerned people around the world. As an independent
organization, Asbestos Disease Awareness Organization will not
be influenced by outside sources such as drug companies, law
firms or companies that manufacture or use asbestos. ADAO is
funded through voluntary contributions and staffed by

For more information, visit www.asbestosdiseaseawareness.org or
contact Doug Larkin, 703-250-3590, Cell: 202-391-1546,

ASBESTOS LITIGATION: NSW Premier Urges the US to Probe Hardie
The New South Wales Premier has written to the United States
Securities and Exchange Commission, urging it to investigate
James Hardie Industries over the asbestos controversy.

Bob Carr said he had sent a state-commissioned inquiry's 1000-
page report on Hardie to the SEC. The report found that Hardie
underfunded a pool of compensation money for sufferers of
asbestos-related disease by up to AUD2 billion or US$2.1
billion. Mr. Carr says there should be enough information for
the SEC to pursue any necessary action.

"I just see James Hardie coming under more pressure to settle
the legitimate claims of victims," said the Premier.

Mr. Carr's comments came as Hardie, which initially said it was
not liable to provide more funds for disease sufferers but then
agreed to plug the shortfall, holds talks with unions and
victims on how it will do this.

However, Sydney-based U.S. lawyers say it's unlikely the U.S.
Securities & Exchange Commission will take action against the
company for underfunding an asbestos compensation trust. The
trust was formed before James Hardie shares were listed on the
New York Stock Exchange and that may hinder an investor class
action, say the lawyers. The U.S. corporate regulator has
limited resources and typically only investigates "massive

Meanwhile, both the government and James Hardie have refused to
say whether the issue of asbestos liability was raised during a
briefing supposedly given by Hardie right before the move
offshore. The recent Jackson inquiry in NSW says James Hardie
was told of the looming blowout in its asbestos liabilities as
early as September or October 2001, prompting calls for the
government to reveal whether it was told there could be a
shortfall in funds for victims of asbestos disease.

A spokesman for James Hardie confirmed "a range of briefings
were offered to government stakeholders." It is understood that
the main subject discussed was the tax ramifications.

James Hardie's move to Netherlands was authorized by the NSW
Supreme Court on October 11, 2001. However, the Jackson inquiry
earlier this year found the company had not told the court about
a letter sent by its asbestos compensation foundation on
September 24, 2001, warning of a massive shortfall in funds. Any
such blowout was supposed to be covered by partly paid shares
but James Hardie later quietly cancelled this, financially
cutting off the foundation.

Recently, asbestos groups supported union claims the federal
coalition had failed to seek a legally enforceable treaty with
the Netherlands. A report said the government never approached
Dutch authorities to form a treaty so that Australian court
decisions would be legally enforceable there.

"The [Dutch] representatives there told us that the Australian
government had not contacted the Dutch government at any time,
but they would be happy to speak with them on a government level
if they contacted them regarding a treaty with Australia," it

This appears to contradict statements by Attorney-General Philip
Ruddock, who said the government had been in talks with the
Dutch government in July and August about the matter.

Last Monday, labor reopened the James Hardie Industries asbestos
compensation scandal as an election issue, promising a Latham
government would refer the matter to US and Dutch authorities
for investigation. The political moves came as Hardie informed
the powerful US Securities & Exchange Commission that it could
not file its annual financial return on time.

The prospects of an investigation by the SEC in the U.S., where
Hardie has a stock exchange listing and does about 75% of its
business, and in The Netherlands, where it has its corporate
headquarters based for tax purposes, present serious additional
risks for the company. At this time, the SEC would not confirm
nor deny whether it was investigating Hardie, nor would the
Dutch corporate regulator.

ASBESTOS LITIGATION: Union Moves for More Awareness in Schools
The Australian Education Union says parents and teachers need to
be aware of the extent of asbestos in school buildings.

This urgent advice comes as Darwin's Nakara Primary School
library was closed unnecessarily last week after an asbestos
scare. Testing revealed no airborne contamination.

Northern Territory Schools general manager John Dove says any
material suspected to be asbestos have been labeled in all
schools built up to the mid-1980s. He says this labeling is also
in the process of being checked again by the Education
Department's facilities unit.

But Education Union spokeswoman Nadine Williams says the
Government needs to raise public awareness of the potential
dangers of disturbing asbestos.

ASBESTOS ALERT: DEP Investigates Craffey and Co. for Violations
The Massachusetts Department of Environmental Protection is
investigating Craffey and Co. for possible asbestos removal
violations during renovation work at its 6 Court St. building in

Department representative, Theresa Baroa, confirmed that an
investigation is underway, but said she could not discuss

Kevin Craffey, CEO of Craffey and Co., said his company followed
state regulations after workers uncovered asbestos this year on
the building's lower level. He said an engineering survey of the
building had not noted the presence of asbestos where workers
had found it. The company temporarily shut down the job and
notified the Department of Environmental Protection. The
department inspected the site and worked with the company to
have the asbestos removed.

He said he did not know if the department was considering
imposing a penalty on his company for exposing the asbestos. "We
never heard back from them. We did a good job working with them
for a solution," he added.

Mr. Craffey was sentenced to two months in jail earlier this
year by the state of New Hampshire because of asbestos
violations during the reconstruction of the Mountain View Grand
resort and spa, a tourist attraction in northern New Hampshire.

Mr. Craffey said he had accepted responsibility as the head of
the company for mistakes made by his workers in disposing of
asbestos found in the 19th-century building. It was "the best
decision I could have made for the 550 employees that work with
me," he said.

Company Profile:

Craffey & CO Inc
427 Columbia Road, Hanover, MA 02339
Phone: (781) 829-0200

ASBESTOS ALERT: Fear Strikes Hospital at Former Hardie Dumpsite
Some sections of Sydney's Westmead Hospital, built on a dumpsite
formerly owned by James Hardie Industries, have been cordoned
off in an asbestos scare after months of dry weather caused
pieces of asbestos to rise up from under the site.

Staff working at the hospital found pieces of asbestos on a
pathway close to one of the buildings. As a result, the hospital
has commissioned an environmental impact study of its entire 10-
hectare site to determine the extent of the asbestos.

A hospital spokesperson said the EIS conducted in 1993 had found
asbestos throughout the hospital grounds, which used to be an
old demolition site, but declared it posed no risk because it
was about four meters underground.

Kevin Gillies, Westmead's deputy director human resources risk
management, said, "The previous EIS couldn't tell us whether the
asbestos came from the James Hardie site that was here, or if it
came from everything that was ploughed into the ground when
Westmead was built, or whether it came from the showground
buildings that were also here and were demolished . It's three
or four meters underground and because we've had a drought, some
of it has worked its way to the surface."

Mr. Gillies said the type of asbestos found posed no immediate
health risk. He points out that what the employees found was
fibro, a form of bonded asbestos, which isn't friable. If it's
not airborne then it's considered low risk. He said this was the
first time asbestos has been found on the ground surface and
stressed there was no asbestos inside the hospital.

A Health Services Union spokesperson said they've raised the
issue with management and are currently holding discussions with
the hospital about how to remove the asbestos. Mr. Gillies said
he had contacted several licensed contractors to remove the
asbestos and believes the matter will be dealt with within the

ASBESTOS ALERT: Marks & Spencer Admits Closure Due to Asbestos
High street giant Marks & Spencer admitted that a discovery of
asbestos had led to the closure of an entire floor in its
Birmingham store. The revelation sheds light on why the store
was closed and shoppers evacuated two weeks ago.

It has emerged that thousands of pounds worth of clothes and
carpet had to be destroyed after contractors disturbed ceiling
tiles, which were found to contain asbestos. The floor has only
just been cleared and had already reopened.

Shoppers who were evacuated said they had been informed by sales
assistants the length of time the floor would be closed would
"depend on what they discovered." The chain had previously not
only claimed there was nothing to worry about, but also stated
it was just connected to the revamp of the floor to house new

A Marks & Spencer spokeswoman stated, "Recently installation
tiles were disturbed by contractors working on the first floor
of our Birmingham High Street store. These tiles contained a
small amount of asbestos. Our health and safety asbestos
management process was immediately implemented resulting
initially in the closure of the store and then the first floor
alone to allow for an investigation.

"Investigations were completed and the floor has now reopened.
It was only really closed as a precautionary measure," the
spokeswoman said.  She apologized for any earlier confusion and
said its concern was not to cause alarm.

ASBESTOS ALERT: Aussie Kids Paid to Remove Asbestos from School
During a refurbishment of the science laboratory, an Australian
State Government contractor paid children to remove deadly
asbestos materials from a school worksite.

The Employment, Training and Industrial Relations Minister Tom
Barton confirmed that employed by a Q-Build contractor, students
from Monto High School, west of Bundaberg, removed vinyl tiles
containing the potentially fatal carcinogenic material outside
school hours in September 2002.

Opposition education spokesman Rob Messenger looked into the
illegal activity after a Monto resident, concerned the children
faced serious health problems because of potential asbestos
exposure, contacted him.  He stated, "I find this incredible
that these children were paid to remove asbestos from their
school. It's completely unacceptable. I don't want to cause the
kids or their families unnecessary worry or angst but they face
serious risk."

It is unknown how many students were involved or whether they
wore protective gear. It is also not known if they or their
parents were aware they were handling asbestos. Staff and former
students could not recall protective equipment being worn during
the renovations.

Sue Muller, who works at the school as a part-time scientific
assistant, helped clear the laboratory and watched the work take
place. She claims never to have seen anyone wearing protective
gear. She also raises the possibility of compensation for any
student exposed to asbestos.

Nathan Dederer, a 2002 graduate, could remember classmates being
paid to gut the laboratory, but also could not remember them
wearing any protection.

The Opposition believes some of the tiles may have been ripped
in the process, exposing the children to asbestos fibers. They
also believe the subcontractor may not have had the proper
accreditation required to remove asbestos.  The Government has
been unable to confirm or deny those claims but a spokesman for
Public Works Minister Robert Schwarten said the department would

In a letter to Mr. Messenger, Mr. Barton admitted Workplace
Health and Safety Queensland was unaware students were being
used at the time the work was done. He said he had since been
advised Q-Build visited the site after the removal of the tiles
and saw personal protective equipment in a trailer used to take
the tiles away. However he was unable to confirm whether the
students used the protective gear.

"Evidence available to Workplace Health and Safety Queensland
indicates that compliance to the removal method was most likely
followed and it would be difficult now to gather evidence to the
contrary," Mr. Barton wrote.

Company Profile:

Q-Build Industries
10 Oregon Street
Phone: (07) 3890 4426
Fax:   (07) 3890 4510
Employees     2,600

Q-Build is a commercialized business unit of the Queensland
Department of Public Works. Its core business involves the
provision of a range of building services to government agencies
and government funded organizations. The company holds a unique
position within the building and construction industry being
both a major employer and an industry partner. Q-Build has 42
staffed offices and depots that are strategically placed to
service every community in Queensland.

ASBESTOS ALERT: Dux Factory Workers Alarmed On Asbestos Removal
Workers from the Dux Hot Water factory at Moss Vale last week
became concerned when they saw contractors working on buildings
on the site wearing protective clothing and breathing apparatus.

A Dux employee said staff had not been warned about the work
being undertaken and they were not aware that work was in
progress until noon. They also complained of not being issued
protective clothing. Subsequently, the workers were sent home
while asbestos sheeting on the site was replaced.

Dux general manager Les Patterson said seven buildings on the
site formerly owned by James Hardie Industries were constructed
of Super Six sheeting.

Mr. Patterson said they have appropriately gotten the services
of a licensed asbestos removal contractor for this job, which
requires penetrating the Super Six sheeting and replacing it
with fiberglass.

Company Profile:

Dux Heaters Pty Limited
Collins Rd Moss Vale
Phone: (02) 4868 3177
Fax:   (02) 4868 2014


Dux have been making water heaters in Australia since 1915.
Design, development and manufacturing are carried out at a
modern facility in the Southern Highlands of New South Wales.
The company boasts of a comprehensive range of gas and electric
heaters for domestic and commercial applications alike. Today as
part of the GWA International Limited group of household brand
names including Caroma, Sebel, Dorf Clark and Rover, Dux is
marketed throughout Australia and overseas.

ASBESTOS ALERT: Crown Group Fined US$100T for Contempt of Court
A Deschutes County judge in Oregon found Crown Investment Group
in "willful contempt of court" for tearing down the 67-year-old
Brooks-Scanlon Crane Shed after asking the court to take
jurisdiction in the matter. The company must pay a US$100,000
penalty for having short-circuited the legal process when it
leveled the building without the permission of the city or the

As a way to offset the direct harm of the illegal demolition, he
added that the US$100,000 award would be used by the city to
construct a memorial to the crane shed with the funds controlled
by the city council and Deschutes County Landmarks Commission.

Jim Reckling, the sole representative for Crown to attend the
hearing, declined to comment on the decision but stated that he
and his partners have not decided whether they will appeal the

Landmarks Commission Chair Derek Stevens said he had expected
the court to issue a fine based on Crown's actions and said he
was pleased that Judge Adler saw fit to do that. He said he was
disappointed that the fine is restricted to a crane shed
memorial when the money would be better spent researching ways
to shore up the historic code to prevent a repeat of the crane
shed episode.

In explaining his decision, Judge Adler reminded Crown that the
company handed jurisdiction over the crane shed to the state
courts when the company filed a lawsuit against the city in
August. At the time, Crown was seeking to force the city to
issue a demolition permit that had been held up for months
during a series of hearings before the Deschutes County
Landmarks Commission.

He noted that the city put forth testimony that Crown had acted
specifically to avoid further delays in its project, which
contemplates a mixed-use redevelopment on the crane shed site.
In addition to the contempt fines, Crown also faces the
possibility of other civil penalties from the state.

Officials with Oregon Department Environmental Quality's
enforcement division said they are reviewing the case and
currently investigating a report that Crown failed to remove
asbestos from the building's roof before tearing it down.

Crown has since hired a licensed contractor to remove the
material from the piles of debris scattered around the crane
shed site. However, the company is still prohibited from
removing the bulk of the crane shed debris, under a stop work
order issued by the city of Bend after the demolition. City
Building Division Robert Mathias said he has no plans to lift
that order until he is instructed to do so by the court or the
city legal staff.

Mr. Abernethy said the case was about more than money. It was
important to show that the city wasn't going to stand by idly
while a developer operated outside the law.

Company Profile:

Crown Investment Group
95 Scale House Loop
Bend Oregon 97701
Phone: 541-317-3977

ASBESTOS ALERT: 90 Sydney Hospital Staffers Await Medical Tests
Around 90 workers from a maintenance workshop at the Royal
Prince Alfred Hospital are set to undergo medical tests, after
dust containing asbestos fibers was found on the site.

Building union CFMEU says the workshop at the hospital in
Camperdown has been shut down and the workers relocated, while
the asbestos is removed.  Union safety officer Dick Whitehead
says documents show that the health authorities became aware of
the potential problem several years ago but failed to act. He
says the workers are furious and extremely concerned for their

"Some of these workers have worked there for many, many, many
years and we don't know how long this exposure's been going on.
Central Sydney Area Health Service has clearly failed in its
duty of care to these workers and there's no excuse for it," he
said.  The union is also calling for an audit of all hospital
maintenance workshops across New South Wales.

                New Securities Fraud Cases

CONVERIUM HOLDING: Murray Frank Lodges Securities Lawsuit 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
Converium Holding AG securities ("Converium") (NYSE:CHR) during
the period between December 11, 2001 through July 20, 2004 (the
"Class Period").

The complaint charges Converium, Dirk Lohmann, and Martin Kauer
with violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More
specifically, the complaint alleges that the Company failed to
disclose and misrepresented the following material adverse facts
which were known to defendants or recklessly disregarded by

     (1) that Converium maintained inadequate loss reserves in
         its Converium North America subsidiary;

     (2) that the Company, contrary to representations, did not
         establish adequate loss reserves to cover claims by
         Converium North America policy holders;

     (3) that reserve increases announced by the Company during
         the Class Period were materially insufficient; and

     (4) as a consequence of the understatement of loss
         reserves, Converium's earnings and assets were
         materially overstated at all relevant times.

On July 20, 2004, Converium announced that second quarter
results would be impacted by a reserve strengthening for US
casualty business and subsequent asset impairments on the
balance sheet of Converium Reinsurance. News of this shocked the
market. Shares of Converium fell $11.12 per share, or 44.44
percent, on July 20, 2004, to close at $13.90 per share. On
August 31, 2004, Converium announced that the Company had
completed external actuarial review of Converium's reserves. On
September 2, 2004, Converium announced that following the
announcement of the external reserve review's outcome and
resulting capital measures, Standard & Poor's and A.M. Best have
lowered their ratings on Converium and its subsidiaries. On this
news, shares of Converium fell an additional $1.04 per share, or
10.51 percent, to close at $8.86 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 by E-mail:

INFINEON TECHNOLOGIES: Lasky & Rifkind Lodges CA Securities Suit
The law firm of Lasky & Rifkind, Ltd. initiated a lawsuit in the
United States District Court for the Northern District of
California, on behalf of persons who purchased or otherwise
acquired publicly traded securities of Infineon Technologies AG
("Infineon" or the "Company") (NYSE: IFX) between March 13, 2000
and July 19, 2004, inclusive, (the "Class Period"). The lawsuit
was filed against Infineon and certain officers and directors

The complaint alleges that Defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder. Specifically, the complaint alleges that
Defendants concealed a variety of adverse facts including that
the Company engaged in anti-competitive behavior to fix prices
of Dynamic Random Access Memory ("DRAM"). As a result, the
Company's shares traded at inflated prices, allowing the Company
to complete a $5.5 billion initial public offering as well as a
significant bond offering and numerous acquisitions.

On July 19, 2004, Defendants admitted the seriousness of the
Justice Department investigation when they announced a $190
million charge for anti-trust litigation.

For more details, contact Lasky & Rifkind, Ltd. by Phone:
(800) 495-1868 or by E-mail: investorrelations@laskyrifkind.com

INTEGRATED ELECTRICAL: Bernstein Liebhard Files Stock Suit in TX
The law firm of Bernstein Liebhard & Lifshitz, LLP initiated a
securities class action lawsuit on behalf of all persons who
acquired securities of Integrated Electrical Services Inc.
("Integrated Electrical" or the "Company")(NYSE: IES) between
November 10, 2003 and August 13, 2004, inclusive (the "Class

The case is pending in the United States District Court for the
Southern District of Texas, Houston Division against Defendants
Integrated Electrical, Herbert Allen, William W. Reynolds, and
Jeffrey Pugh.

The Complaint charges that Integrated Electrical and certain
officers and directors violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations
to the market during the Class Period, thereby artificially
inflating the price of Integrated Electrical's securities.
Specifically, defendants failed to disclose and/or
misrepresented the following adverse facts, among others that:

     (1) the Company allegedly failed to make timely and
         appropriate adjustments for a series of large contracts
         that were accounted for on a percentage of completion
         basis where the actual costs expected to be incurred
         exceeded original projected costs;

     (2) the Company had allegedly improperly accounted for
         general and administrative costs in a particular
         contract for costs that did not relate to that

     (3) the Company allegedly improperly recognized revenue on
         a particular contract;

     (4) the Company lacked adequate internal controls and was
         thus unable to ascertain the Company's true financial
         condition; and

     (5) due to these facts, the Company's net income and
         financial results were allegedly materially overstated
         during the Class Period.

The truth was revealed on August 13, 2004 when Integrated
Electrical revealed a number of previously undisclosed
accounting problems, including that its independent auditors had
discovered material weaknesses in Integrated Electrical's
internal controls, and disclosed that the Company may need to
restate its prior financial results. In response to this
announcement the price of Integrated Electrical common stock
fell approximately 40% in one day, from $6.58 per share on
August 13, 2004 to $3.93 per share on August 14, 2004.

For more details, contact Bernstein Liebhard & Lifshitz, LLP by
Phone: (800) 217-1522 by E-mail: IES@bernlieb.com or visit their
Web site: http://www.bernlieb.com

ST. PAUL TRAVELERS: Bernstein Liebhard Lodges MN Securities Suit
The law firm of Bernstein Liebhard & Lifshitz, LLP initiated a
securities class action lawsuit on behalf of former shareholders
of Travelers Property Casualty Corp. ("Travelers") Class A and
Class B common stock who exchanged their shares in Travelers for
shares of the St. Paul Travelers Companies, Inc. ("St. Paul")
(NYSE: STA) common stock pursuant to the April 1, 2004 merger of
St. Paul and Travelers.

The case is pending in the United States District Court for the
District of Minnesota, against Defendants: St. Paul Travelers
Companies, Inc. f/n/a the St. Paul Companies, Inc., Jay S.
Fishman, Thomas A. Bradley, John C. Treacy, Carolyn H. Byrd,
John H. Dasburg, Janet Dolan, Kenneth M. Duberstein, Lawrence G.
Graev, Thomas R. Hodgson, William H. Kling, James A. Lawrence,
John A. Maccoll, Glen D. Nelson, and Gordon M. Sprenger.

The Complaint charges that St. Paul and certain officers and
directors violated the Securities Act of 1933, by issuing
material misrepresentations to the market in connection with the
April 1, 2004 merger. Specifically, defendants failed to
disclose and/or misrepresented the following adverse facts,
among others: St. Paul utilized a markedly different method for
calculating insurance reserves than that utilized by Travelers
and that applying Travelers' methodology, as was required, would
result in the necessity of having to increase reserves on St.
Paul's insurance policies by over $1 billion -- approximately 12
percent of the value of St. Paul as determined by the merger

On June 17, 2004, news regarding this issue began to trickle out
to shareholders, and St. Paul stock began to decline, falling
from $41.10 on that date to $35.66 on July 23, 2004, the date
that the exact size of the needed reserve adjustment -- $1.6
billion -- was first announced. Then on August 5, 2004,
following the announcement that St. Paul reported a net loss for
the second quarter ended June 30, 2004 of $275 million, or $0.42
per basic and diluted share, compared to net income of $441
million or $1.02 per basic share and $1.01 per diluted share in
the prior year quarter, the price of St. Paul common stock
closed at $34.75, representing a 14.77% decline from its price
on August 1, 2004.

For more details, contact Bernstein Liebhard & Lifshitz, LLP by
Phone: (800) 217-1522 by E-mail: STA@bernlieb.com or visit their
Web site: http://www.bernlieb.com

STONEPATH GROUP: Mager White Lodges Securities Fraud Suit in PA
The law firm of Mager White & Goldstein, LLP initiated a
securities class action against Stonepath Group, Inc. (AMEX:
STG), Dennis L. Pelino, Bohn H. Crain and Thomas L. Scully.

The lawsuit, pending in the United States District Court for the
Eastern District of Pennsylvania, was filed on behalf of
purchasers of Stonepath securities during the period between May
7, 2003 and September 20, 2004 (the "Class Period").

The complaint charges that Stonepath and certain of its officers
and directors violated the Securities Exchange Act of 1934.
Specifically, the Complaint alleges that Stonepath failed to
disclose and misrepresented that it understated the Company's
expenses and liabilities, and overstated the Company's net
income and earnings before income, taxes, depreciation, and
amortization ("EBITDA"), resulting in materially false and
misleading Class Period financial statements by the Company. Due
to the above, Stonepath's reported financial results violated

On September 20, 2004, the Company reported that it planned to
restate its fiscal year 2003, and first and second quarter of
2004 financial statements. As a result of this announcement, the
price of Stonepath stock dropped 46% from the previous day,
closing at $0.86 per share on heavy trading volume of 4,830,200

For more details, contact Jayne A. Goldstein by Mail: One
Pitcairn Place, Suite 2400, 165 Township Line Road, Jenkintown,
PA 19046 by Phone: 866-274-8258 or by E-mail:

STONEPATH GROUP: Wolf Haldenstein Files Securities Lawsuit in PA
The law firm of Wolf Haldenstein Adler Freeman & Herz LLP
initiated a class action lawsuit in the United States District
Court for the Eastern District of Pennsylvania, on behalf of all
persons who purchased the securities of Stonepath, Inc.
("Stonepath" or the "Company") (Amex: STG) between May 7, 2003
and September 20, 2004, inclusive, (the "Class Period") against
defendants Stonepath and certain officers and directors of the

The complaint alleges that defendants violated the federal
securities laws by issuing materially false and misleading
statements throughout the Class Period that had the effect of
artificially inflating the market price of the Company's

The complaint further alleges that the Company failed to
disclose and misrepresented that it had understated its accrued
purchased transportation liability and related costs of
purchased transportation rendering the Company's financial
statements materially false and misleading because they
understated the Company's liabilities and expenses, and
overstated the Company's net income and earning before income,
taxes, depreciation, and amortization ("EBITDA"). As a result of
the above, the Company's reported financial results were in
violation of GAAP.

On September 20, 2004, the Company announced its intention to
restate its fiscal year 2003 and first and second quarter 2004
financial statements. As a result of this news, the price of
Stonepath stock dropped 46% from September 19, 2004, and closed
at $0.86 per share on heavy trading volume.

For more details, contact Fred Taylor Isquith, Esq., Gustavo
Bruckner, Esq., or Derek Behnke of Wolf Haldenstein Adler
Freeman & Herz LLP by Mail: 270 Madison Avenue, New York, NY
10016 by Phone: (800) 575-0735 by E-mail: classmember@whafh.com
or visit their Web site: http://www.whafh.com

ZIX CORPORATION: Goodkind Labaton Lodges Securities Suit in TX
The law firm of Goodkind Labaton Rudoff & Sucharow LLP initiated
a class action lawsuit in the United States District Court for
the Northern District of Texas, on behalf of persons who
purchased or otherwise acquired publicly traded securities of
Zix Corporation ("Zix" or the "Company") (NASDAQ:ZIXI) between
October 30, 2003 and May 4, 2004, inclusive, (the "Class
Period"). The lawsuit was filed against Zix and Ronald A.
Woessner, John A. Ryan, Daniel S. Nutkis, Steve M. York, Russell
J. Morgan, Wael Mohamed and Dennis F. Heathcote ("Defendants").

The complaint alleges that Defendants violated Sections 10(b)
and 20(a) of the securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder. Specifically, the complaint alleges that
during the Class Period, Defendants disseminated materially
false and misleading statements about its business and future
prospects. More specifically, Defendants concealed during the
Class Period that it was experiencing sluggish physician
adoption rates to its e-prescribing service, that it was not
even close to achieving its guidance of 1,000 deployed active
doctors by the end of Q4 2003, that its claim that it had 4,000
physician deployments already in place was false as it had not
surveyed physician sites to determine their wireless needs.

On May 2, 2004, Zix announced that its results for Q1 2004 would
generate a larger than expected loss. In reaction to the news,
shares of Zix fell nearly 50% in the following trading sessions
to eventually trade below $7 per share.

For more details, contact Christopher Keller, Esq. by Phone:
800-321-0476 or visit their Web site:


A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the Class Action Reporter. Submissions
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Each Friday's edition of the CAR includes a section featuring
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asbestos defendants that, according to independent researches,
collectively face billions of dollars in asbestos-related


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Class Action Reporter is a daily newsletter, co-published by
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Copyright 2004.  All rights reserved.  ISSN 1525-2272.

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