/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/050622.mbx C L A S S A C T I O N R E P O R T E R Wednesday, June 22, 2005, Vol. 7, No. 122 Headlines 4C PATENT: Handal & Associates Commences Amended Lawsuit in CA AMERICAN HEARING: MD AG Curran Forges Consumer Fraud Settlement AT&T: MN Attorney General Forges Consumer Fraud Suit Settlement AUTHENTIDATE HOLDING: Shareholders Launch Fraud Suits in S.D. NY AVS MARKETING: Agrees To Settle FTC Deceptive Advertising Suit BERKELEY PREMIUM: NC Attorney General Files Consumer Fraud Suit BIONICHE LIFE: Recalls BetacTM Due to Visible Particle Matter BOSTON COMMUNICATIONS: Shareholders File Securities Suits in MA CABLETRON SYSTEMS: Suit Settlement Hearing Set August 30, 2005 CANADA: Pension Groups Files Suit V. Michelin North America Inc. CARRIER ACCESS: Shareholders Launch Securities Fraud Suits in CO COUNTRY COACH: Recalls 9 Motorhomes Due To Incorrect Labeling CYBERONICS INC.: Faces Three Federal Securities Lawsuits in TX DREAMWORKS ANIMATION: Shareholders File Fraud Suits in C.D. CA EL PASO CORPORATION: To Distribute Payment in NV Antitrust Suit FEATHERLITE INC.: Recalls 110 Motorhomes For Defect, Fire Hazard FIBERTHIN LLC: Settles Charges V. Unsubstantiated Diet Claims FIFTH THIRD BANCORP: Suit Settlement Hearing Set August 18, 2005 FLORIDA: Hernando County To Hike Water Rates If It Loses in Suit FORD MOTOR: Recalls 78,675 Trucks, Vehicles Due To Fire Hazard FORD MOTOR: Recalls 180,104 Vans, Trucks, SUVs For Crash Hazard FOUR WINDS: Recalls 238 Motorhomes For Incorrect Tire Labeling HYTRIN LITIGATION: ME Consumers To Receive Refunds in Settlement HYTRIN LITIGATION: MS Consumers To Get Share in Antitrust Pact IGA MANAGEMENT: ME Attorney General Warns Against Lottery Scam INTERSTATE BAKERIES: Suit Settlement Hearing Set August 26, 2005 KELLOGG CANADA: Faces Consumer Suit For Misleading Advertising MICHIGAN: Judge Dismisses Patients' Lawsuit V. William Beaumont MIDWEST CANNON: Recalls 10T Votive Candles Due to Fire Hazard ORION BUS: Recalls 1092 2001-05 Buses Due to Structural Defect POSSIS MEDICAL: Shareholders Launch Securities Fraud Suits in MN RMS TITANIC: FL Court Certifies Investors Fiduciary Duty Lawsuit SPARTAN CHASSIS: Recalls 609 Motor Homes For Defect, Fire Hazard SPECIAL TOUCH: Inks Settlement For NY AG Spitzer's Overtime Suit SPRINT CORPORATION: Donates Phone Cards in MI Consumer Suit Pact TOBACCO: Time, Newsweek To Remove Ads in School Library Editions TRIUMPH MOTORCYCLES: Recalls 969 Motorcycles Due To Crash Hazard UNITED STATES: High Court Refuses to Review Rights of Way Suit UNITED STATES: Native Americans Offer to Settle Suit For $27.5B WAL-MART STORES: CA Federal Appeals Court Agrees to Hear Appeal WALGREENS CO.: 11 Workers File Race Discrimination Suit in IL YELLOW BOOK USA: Lawsuit Settlement Hearing Set August 26, 2005 Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases CYBERONICS INC.: Schatz & Nobel Files Securities Suit in S.D. TX DRDGOLD LIMITED: Marc S. Henzel Files Securities Suit in S.D. NY EASTMAN KODAK: Marc S. Henzel Lodges Securities Suit in S.D. NY EASTMAN KODAK: Schiffrin & Barroway Lodges Securities Suit in NY NAVARRE CORPORATION: Marc S. Henzel Files Securities Suit in MN NAVARRE CORPORATION: Lerach Coughlin Files Securities Suit in MN PEMSTAR INC.: Schatz & Nobel Lodges Securities Fraud Suit in MN ********* 4C PATENT: Handal & Associates Commences Amended Lawsuit in CA -------------------------------------------------------------- The law offices of Handal & Associates filed an amendment to its national class action lawsuit against the 4C Patent Group (formerly known as the 3C DVD Patent Group) consisting of Sony Corporation (NYSE: SNE), Philips Electronics (NYSE: PHG), LG Electronics of South Korea, and Pioneer Corporation (NYSE: PIO), in the United States District Court for the Southern District of California. The amended complaint has been expanded from seven to nine causes of action and is far more specific in its allegations of unlawful conduct by the 4C Patent Group. The latest causes include violations of the Sherman Act for acts in restraint of trade as well as the unlawful collection of mandatory royalties for expired or invalid patents. Among other allegations, the amended complaint states that the defendants are guilty of: (1) licensing invalid and unenforceable patents; (2) patents that are feature-specific but not necessary for the manufacture of a simple DVD player; and (3) patents that do not relate to DVD (such as VCD, karaoke, CD and parental controls). Since manufacturers are required to take a license to all-or- none of the patents, Philips and its co-conspirators are unreasonably fixing the price of DVD players by preventing manufacturers from licensing only those patents that are essential for use in their particular product. The amended complaint highlights the alleged nefarious dealings of the defendants in their quest to monopolize the DVD player business. The defendants are believed to have used the power of their patents to control the creation of DVD standards so that it would be virtually impossible for competing standards to emerge. The amended complaint describes how the defendants have eliminated competition between themselves in the area of licensing patents. It is alleged that if the defendants were pure competitors, they would advance new and different standards in competition with each other and offer them at lower prices in order to gain acceptance of their own technology. By combining horizontally, however, they eliminated competition between themselves, which ultimately causes market deficiencies that harm consumers. The plaintiffs also lay out how Philips used its market power to force IC manufacturers, Optical Pick Up manufacturers, and DVD player manufacturers as well as importers and distributors to enter into restrictive one-sided contracts. These contracts require those within the DVD player industry to relinquish to defendants any patents they have created which may compete with the defendants' patents. Those forced into these contracts are also prevented from suing the Defendants for patent infringement. In addition, these contracts preclude any licensee from doing business with any entity that is not licensed by the defendants, thus furthering their grip on the DVD industry. The amended complaint purports that these acts are done in furtherance of a conspiracy to monopolize the DVD industry. The plaintiffs warn that allowing the defendants to continue this anticompetitive behavior would result in the perpetuation of the monopoly into new technologies such as high definition DVD. "Not only are the defendants hurting consumers, they are also hurting the electronics industry as a whole," said Anton Handal, Plaintiffs' lead counsel. "Technological advances in the DVD player market have come to a virtual standstill as a result of the Defendants' dominance over the industry. They have so far been successful in keeping competing standards, like EVD, from finding a foothold. The Defendants' practices are not only against the laws of the United States, they shock all notions of fairness." The lawsuit was filed after the 4C Group refused to issue a license to Plaintiff Wuxi Multimedia, and the legal battle scored significant gains upon Orient Power (Wuxi) Digital Technology Ltd joining the suit. Damages are estimated to be in the several hundreds of millions of dollars and the Plaintiffs will request the Court to order a tripling of damages upon a finding of malicious conduct by the 4C Group. For more details, contact Anas A. Akel or Pamela C. Chalk of Handal & Associates, E-mail: aakel@handal-law.com or pchalk@handal-law.com, Web site: http://www.handal-litigation.com. AMERICAN HEARING: MD AG Curran Forges Consumer Fraud Settlement --------------------------------------------------------------- Maryland Attorney General J. Joseph Curran, Jr.'s Consumer Protection Division reached a settlement with American Hearing Centers, Inc., a now defunct chain of hearing aid stores that sold hearing aids to Maryland consumers from locations throughout Maryland. Under the settlement, American Hearing Centers, Inc.'s former owner, Mitchell Stein of Olney, Maryland, agreed to refund more than $20,000 to consumers who had cancelled their purchases of hearing aids and were not refunded their payments. Under the Maryland Hearing Aid Sales Act, consumers who purchase hearing aids have 30 days from the date of the delivery of their hearing aids to cancel their purchases and receive most of their money back. If a company offers a refund period that exceeds 30 days, the company must provide a refund if the consumer cancels within that longer period. The Division alleged that Stein and his company failed to pay refunds to consumers who lawfully cancelled their orders. The settlement requires Ms. Stein to make full restitution to all consumers who properly cancelled their hearing aid purchases, but have not received refunds of the payments they made for their hearing aids. The settlement also requires Ms. Stein to make full restitution to all consumers who made payments and had HMO coverage or insurance coverage that provided that American Hearing Centers, Inc. had to accept the insurance payment as payment in full, less any applicable co-pay or deductible. Also, for all consumers with insurance policies that allowed American Hearing Centers, Inc. to charge the consumer the difference between the amount of the insurance payment and American Hearing Centers, Inc.'s charge, the settlement requires Stein to make full restitution to consumers of amounts paid by them that exceeded that difference. The Division is aware of consumers who are owed refunds that total more than $20,000. Stein also agreed to post $20,000 in security for future claims before operating a hearing aid business and to pay the Division $1,000 for its costs. Stein also agreed to fully comply with the Hearing Aid Sales Act. "Buying a hearing aid can be difficult and expensive," Mr. Curran said. "Hearing aid sellers must honor consumers' cancellation rights and issue refunds promptly as required by law." Consumers who believe they are entitled to restitution under the Attorney General's settlement with Mitchell Stein may contact the Consumer Protection Division by Phone: (410) 528-1840. AT&T: MN Attorney General Forges Consumer Fraud Suit Settlement --------------------------------------------------------------- Minnesota Attorney General Mike Hatch forged a settlement agreement with AT&T earlier this month, resolving the consumer protection lawsuit filed against the long distance carrier. The settlement resolves the State's claim that the Company erroneously billed some 25,939 Minnesota citizens in 2004 for services never ordered or provided. Under the terms of the settlement, the Company has refunded or credited Minnesotans who were wrongly billed and has agreed to provide 300-minute long distance calling cards to Minnesotans adversely affected by its erroneous billing and to make a $200,000 payment to the State. Under the State's final settlement, the Company agreed to credit and refund all Minnesotans incorrectly assessed calling plan charges and to stop marketing to callers who had been billed in error. Over 25,000 Minnesotans have received credits to date for a total of $308,000. In addition, the 25,000-plus Minnesotans who received credits are also eligible for a 300-minute calling card. Eligible citizens will receive a letter in the mail detailing how to submit an application for a calling card. The consumer calling card restitution has a retail value of up to $780,000. The Company will also make a $200,000 payment to the State of Minnesota. The State's lawsuit was the result of an investigation that revealed that over 25,000 Minnesotans were erroneously billed on their local phone bill for long distance calling plan charges by AT&T beginning in January 2004. When the company started assessing a $3.95 monthly charge to its long distance "Basic Rate Plan" customers, AT&T billed not only customers on its "Basic Rate Plan" for the $3.95 and other associated fees, but also an additional 25,939 Minnesotans who did not order services from AT&T or who had other AT&T calling plans. In addition, when those citizens called AT&T to inquire about the charges, rather than helping consumers, AT&T placed Minnesotans on hold for extensive periods of time, transferred them to customer service representatives who tried to "hard sell" AT&T services, and, in some cases, the company told consumers they would had to sign up for an AT&T calling plan to get their money back or charges credited. A letter is scheduled to be sent by June 7, 2005 to those Minnesotans who were incorrectly billed by AT&T, directing those citizens how to receive their calling card. Eligible consumers will simply have to check a box on a claim form, fill in the claim number found on the letter, sign and mail the form back to the Minnesota Attorney General's Office by August 15, 2005, or send an email to the Office at phonecard.settlement@state.mn.us. The email must include the customer's name, address, the reason for requesting the calling card, and the claim number on the letter. For more details, contact the Attorney General's Consumer Assistance Line by Phone: (651)296-3353 or (800)-657-3787, or contact the Office of Minnesota Attorney General Mike Hatch by Mail: 1400 Bremer Tower, 445 Minnesota Street, St. Paul, MN 55101, Phone: (651) 296-3353 or 1-800-657-3787. AUTHENTIDATE HOLDING: Shareholders Launch Fraud Suits in S.D. NY ---------------------------------------------------------------- AuthentiDate Holding Corporation and certain of its officers and directors face several securities class actions filed in the United States District Court for the Southern District of New York on behalf of purchasers of the Company's securities from September 29,2003 to May 27,2005. The suits charge the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The company provides web-based content authentication services that address the verification of digital information in all business processes. Specifically, the complaints allege that during the Class Period, defendants made materially false and misleading statements regarding the Company's business and prospects, specifically about revenues to be derived from an agreement with the U.S. Postal Service. The Company also concealed certain internal control problems. These false statements caused Company stock to trade at artificially inflated levels, reaching as high as $18.69 per share in January 2004. Taking advantage of this artificial inflation, the Company completed a private placement of its stock in February 2004, raising $69 million in net proceeds. AuthentiDate's CFO and former CEO also took advantage of the inflation, selling 156,000 shares of their AuthentiDate stock for proceeds of $1.7 million. On April 13, 2005, AuthentiDate announced the dismissal of its accounting firm PricewaterhouseCoopers LLP. Later, on April 29, 2005, AuthentiDate filed a Form 8-K with the SEC disclosing it had hired a new accounting firm and also that on April 15, 2005, its CFO had sent a letter to certain members of the Company's Board of Directors, advising them of the existence of corporate governance issues. The Company hired special counsel to investigate the letter. The complaints further allege, on or around May 27, 2005, the Company issued a press release announcing that "its ongoing discussions with the United States Postal Service regarding the status of its Strategic Alliance Agreement had reached a critical stage with the receipt of a second notice from the Postal Service stating that it had failed to attain the performance metrics required by the Strategic Alliance Agreement during the period February 2005 through April 2005." On this news, AuthentiDate's stock collapsed to $2.94 per share on volume of 1.28 million shares. The first identified complaint in the litigation is styled "Eli Friedman, et al. v. AuthentiDate Holding Corp., et al.," filed in the United States District Court for the Southern District of New York. The plaintiff firms in this litigation are: (1) Abraham, Fruchter & Twersky, One Pennsylvania Plaza, Suite 1910, New York, NY, 10119, Phone: 212.279.5050, Fax: 212.279.3655, E-mail: JFruchter@FruchterTwersky.com (2) Brodsky & Smith, LLC, 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004, Phone: 610.668.7987, Fax: 610.660.0450, E-mail: esmith@Brodsky-Smith.com (3) Charles J. Piven, World Trade Center-Baltimore, 401 East Pratt Suite 2525, Baltimore, MD, 21202, Phone: 410.332.0030, E-mail: pivenlaw@erols.com (4) Dyer & Shuman, LLP, 801 E. 17th Avenue, Denver, CO, 80218-1417, Phone: 303.861.3003, Fax: 800.711.6483, E- mail: info@dyershuman.com (5) Law Offices of Brian M. Felgoise, P.C., Esquire at 261 Old York Road, Suite 423, Jenkintown, PA, 19046, Phone: 215.886.1900, E-mail: securitiesfraud@comcast.net (6) Lerach Coughlin Stoia Geller Rudman & Robbins (Melville), 200 Broadhollow, Suite 406, Melville, NY, 11747, Phone: 631.367.7100, Fax: 631.367.1173, E-mail: info@lerachlaw.com (7) Roy Jacobs & Associates, 350 Fifth Avenue Suite 3000, New York, NY, 10118, E-mail: classattorney@pipeline.com (8) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT, 06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail: sn06106@AOL.com AVS MARKETING: Agrees To Settle FTC Deceptive Advertising Suit -------------------------------------------------------------- AVS Marketing, Inc., and its President, William R. Heid, have agreed to pay $400,000 in consumer redress to settle Federal Trade Commission (FTC) charges that they deceptively marketed a purported weight-loss pill called "Himalayan Diet Breakthrough." According to the FTC, the defendants claimed the product causes rapid and substantial weight loss without the need to diet or exercise. The FTC alleged that the defendants' ads for the product used five of the seven bogus "Red Flag" weight-loss claims. The ads appeared in the Dallas Morning News, the Albuquerque Journal, Hair Cut and Style, the Cleveland Plain Dealer, the San Francisco Chronicle, and various other publications. The FTC's ongoing "Red Flag" education campaign provides guidance to assist media outlets and others in spotting false claims in weight-loss ads. In addition to paying consumer redress, the settlement prohibits the defendants from misrepresenting the efficacy or safety of any food, drug, dietary supplement, device, or health-related program. The FTC filed charges against the Illinois-based defendants in October 2004, as part of "Operation Big Fat Lie." The FTC alleged that the defendants made false and unsubstantiated claims for the "Himalayan Diet Breakthrough," a dietary supplement containing Nepalese Mineral Pitch, "a paste-like material" that "oozes out of the cliff face cracks in the summer season" in the Himalayas. The defendants claimed the product: (1) causes rapid and substantial weight loss without dieting or exercise; (2) causes users to lose substantial weight while still consuming unlimited amounts of food; (3) causes substantial weight loss by preventing the formation of body fat; (4) causes substantial weight loss for all users; and (5) enables users to lose as much as 37 pounds in eight weeks safely The stipulated final judgment and order prohibits the defendants from making false or unsubstantiated claims about weight-loss products or other products in the future. The order contains a judgment for more than $4.9 million, the total amount of sales for the product at issue. Based on a review of the defendants' financial information, it has been determined that they are unable to pay full redress. The order suspends the judgment upon payment of $400,000 to the FTC. If it is found that the defendants misrepresented their financial condition, the full $4.9 million will become due immediately. The Commission vote authorizing staff to file the proposed stipulated final judgment and order was 5-0. The stipulated final judgment and order was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, on June 10, 2005, and was signed by the judge on June 13, 2005. This stipulated final judgment and order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. The stipulated final judgment and order has the force of law when signed by the judge. Copies of the stipulated final judgment and order are available from the FTC's Web site at http://www.ftc.govand also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov.The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. For more details, contact Brenda Mack, Office of Public Affairs by Phone: 202-326-2182 or contact C. Steven Baker or Guy Ward, FTC's Midwest Region - Chicago by Phone: 312-960-5634 or visit the Website: http://www.ftc.gov/opa/2005/06/avsmarketing.htm. BERKELEY PREMIUM: NC Attorney General Files Consumer Fraud Suit --------------------------------------------------------------- North Carolina Attorney General Roy Cooper filed an action on June 15,2005 to stop a company from selling pills that it falsely claimed could improve a variety of health problems including boosting night vision, lowering cholesterol Attorney General Cooper filed the suit in Wake County Superior Court against Steve Warshak of Ohio and his firms Berkeley Premium Nutraceuticals, Lifekey, Inc., Boland Naturals, Inc., Warner Health Care, and Wagner Nutraceuticals for deceiving North Carolina consumers about its products. He is asking the court to permanently stop these companies from doing business in North Carolina and order them to pay refunds. "Consumers got lured in with the promise of a free trial offer but soon found themselves paying for shipments of pills they hadn't ordered," said Attorney General Cooper. "Just like the snake oil salesman of old these companies made claims about their pills they couldn't back up." Attorney General Cooper's suit claims that Mr. Warshak's companies, which have sold 15 different products around the nation, made unsubstantiated claims about their products' powers. Berkeley and the other companies described their products as "the best natural supplements to help improve your health" and called them "nutraceuticals." In reality, the companies did not have competent and reliable scientific evidence to back up their claims, nor had the dietary supplements been approved by the U.S. Food and Drug Administration As alleged in the complaint, Berkeley and the other companies hooked customers with advertisements promising "free" 30-day trials of their products. When consumers called the companies' toll-free numbers or visited their websites to order the pills they were asked to provide credit or debit card information to pay shipping and handling charges. The companies failed to tell consumers that they would automatically bill them for additional shipments of pills. When consumers tried to stop the automatic payments for what the companies called their "continuity program" or "home delivery plan," Mr. Warshak's companies often made it difficult for people to cancel their automatic shipments or get their money back. Attorneys General in Oregon, Ohio, Arkansas, Illinois, and Texas also filed suit against Berkeley and the other companies. In addition Berkeley's practices have caught the attention of federal authorities. In March, agents from the U.S. Postal Inspection Service, FBI, IRS and FDA raided Berkeley's headquarters and a federal judge has frozen $24 million in Mr. Warshak's bank accounts relating to a federal investigation. "Outfits that take advantage of consumers need to take their own bitter medicine," said Attorney General Cooper. "And consumers need to be wary of companies that make claims about their products they can't back up." BIONICHE LIFE: Recalls BetacTM Due to Visible Particle Matter ------------------------------------------------------------- Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, announced that the Canadian arm of its Pharma Division (Bioniche Pharma Canada Limited) is initiating a Class 1 recall of BetacTM, (NDC 62086-139-50/DIN 02245625), an injectable ascorbic acid product that is produced at the Bioniche Pharma Group Limited's sterile injectable manufacturing facility in Galway, Ireland. Approximately one-third of the product released to the market has been found to contain visible particulate matter (microbial in origin), which could potentially result in serious adverse health reactions. No such reactions have been reported to date, however, in the event of a reaction, health care professionals are encouraged to contact the Company or their regional regulatory authority. Contact information: U.S. health care professionals = Call Bioniche Life Sciences at 1-888-258-4199 or FDA's MedWatch program at 1-800-FDA-1088 Contact the FDA via the MedWatch website at www.fda.gov/medwatch, or by mail (using postage-paid form) to MedWatch, HFD-410, 5600 Fishers Lane, Rockville, MD 20857-9787. Canadian health care professionals = Call Bioniche Life Sciences at 1-888-258-4199 or the Adverse Drug Reaction Centre of Health Canada at 1-866-234-2345. Bioniche Pharma voluntarily recalled all lots of the product after learning about the issue. The product is sold to pharmacies and clinics, either directly or through distributors. All recipients have been notified by phone and fax. The Food and Drug Administration (FDA) and Health Canada were immediately apprised of this action, and Bioniche is working with these agencies to ensure that the recall is handled efficiently. Meanwhile, the Company's Quality Control staff and management have isolated all potentially affected product and are investigating the cause of the problem. Immediate corrective action will follow. BOSTON COMMUNICATIONS: Shareholders File Securities Suits in MA --------------------------------------------------------------- Boston Communications Group, Inc. and certain of its present and former executive officers face several shareholder class actions filed in the United States District Court for the District of Massachusetts, on behalf of purchasers of the Company's securities from November 15,2000 to May 20,2005. Several purported shareholder class action lawsuits were filed against the Company and certain of its present and former executive officers alleging 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 securities. Specifically, the complaints allege: (1) the Company had willingly infringed upon Freedom Wireless' patents; (2) the Company's successful business model was premised upon the willful infringements of the patents of Freedom Wireless; (3) the Company's financial statements failed to comply with Generally Accepted Accounting Principles by failing to record sufficient reserves (of not less than $100 million) because of the willful infringement upon Freedom Wireless' patents; (4) by reason of the failure to take adequate reserves, the Company's financial statements filed with the SEC overstated income, net profits and profits per share; (5) these failures of disclosure, directly impacted upon the Company's prospects for future growth and revenue. The first identified complaint in the litigation is styled "Rosenbaum Capital LLC, et al. v. Boston Communications Group, Inc., et al., case no. 05-CV-11165," filed in the United States District Court for the District of Massachusetts, under Judge William G. Young. The plaintiff firms in this litigation are: (1) Charles J. Piven, World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202, Phone: 410.332.0030, E-mail: pivenlaw@erols.com (2) Gilman & Pastor, Stonehill Corporate Center 999 Broadway Suite 500, Saugus, MA, 01906, Phone: 781.231.7850, Fax: 781.231.7840, (3) Marc S. Henzel, 210 West Washington Square, Third Floor, Philadelphia, PA, 19106, Phone: 215.625.9999, Fax: 215.440.9475, E-mail: Mhenzel182@aol.com (4) Wolf, Haldenstein, Adler, Freeman & Herz LLP, 270 Madison Avenue, New York, NY, 10016, Phone: 212.545.4600, Fax: 212.686.0114, E-mail: newyork@whafh.com CABLETRON SYSTEMS: Suit Settlement Hearing Set August 30, 2005 -------------------------------------------------------------- The United States District Court for the District of New Hampshire will hold a fairness hearing for the proposed $10.5 million settlement with accruing interest in the matter: Cabletron Systems, Inc. Securities Litigation, C.A.97-542JD (N.H.), C.A. 99-408S (R.I.) on behalf of all persons who purchased the common stock of the company or brought call options or sold put options in the company's common stock, during the period from March 3, 1997 through December 2, 1997. The hearing will be held before the Honorable William E. Smith, in the Federal Building and Courthouse, One Exchange Terrace, Providence, RI, 02903, at 10:00 a.m., on August 30, 2005. For more details, contact Cabletron Systems, Inc. Securities Litigation c/o Garden City Group, Inc., Claims Administrator, P.O. Box 9000 #6288, Merrick, NY, 11566-9000 OR Sanford D. Dumain, Esq. of of Milberg Weiss Bershad & Schullman, LLP, One Pennsylvania, New York, NY, 10119-0165, Phone: (212) 594-5300. CANADA: Pension Groups Files Suit V. Michelin North America Inc. ---------------------------------------------------------------- The Concerned Pension Group at Michelin (CPGM), a voluntary association of approximately 570 Michelin Pension Plan members, filed a lawsuit against Michelin North America (Canada) Inc. in the Supreme Court of Nova Scotia. The court application requests a ruling regarding Michelin's management and administration of its employee pension plan and determination of whether the trust plan has been compromised by surplus funds being diverted to meet required employer contributions rather than for the exclusive benefit of employees, former employees and beneficiaries. CPGM has learned that company mergers, pension plan mergers and Michelin's failure to maintain separate plan accounting have further compromised the benefits to both active and retired members. In 2003, as a result of various concerns over Michelin's management and administration of the Michelin Pension Plan, CPGM sought legal counsel to review plan documents. Lawyers from Cohen Highley LLP will argue that, contrary to the provisions of the original plan documents and current plan restatement, Michelin failed to make required annual employer contributions but instead funded such contributions through accruing plan surplus. The London, Ontario based law firm also acted for Royal Trust pensioners in a class action resulting in a $52 million settlement payout in 2004. Payment of the company contributions to the Michelin Pension Plan would result in a substantial surplus totaling over $350 million available for benefit enhancements and/or distribution to plan members. The pensioners are seeking a declaration of their interest in accruing plan surplus and requiring Michelin to pay to the pension fund the amount of contribution holidays taken by Michelin together with accrued interest and to maintain separate accounting with respect to the Michelin Pension Plan. Michelin North America (Canada) Inc. is a manufacturer of tires at its plant in New Glasgow (Granton), Waterville and Bridgewater, Nova Scotia with distribution and sales of tires throughout Canada and internationally. The vast majority of Michelin Pension Plan members and beneficiaries reside in Nova Scotia. The Michelin Pension Plan, established in 1972, currently has approximately 4,000 members with assets valued in excess of $500 million. A meeting with Cohen Highley legal counsel and CPGM members will be held on June 21, 2005 at 4:30 at the Sharon St. John United Church Hall, Stellarton, N.S. Media are welcome to attend. For more details, contact Iain Sneddon, Partner, Cohen Highley, LLP, Phone: (519) 672-9330 or (519) 636-4666. CARRIER ACCESS: Shareholders Launch Securities Fraud Suits in CO ---------------------------------------------------------------- Carrier Access Corporation faces several securities class actions filed in the United States District Court for the District of Colorado on behalf of purchasers of the Company's securities from October 21,2003 to May 20,2005. Several purported shareholder class action lawsuits were filed against the Company and certain of its present and former executive officers with violations of the Securities Exchange Act of 1934. Specifically, the Complaints allege that the defendants made materially false and misleading statements during the Class Period concerning the Company's financial results and business prospects. This allowed the defendants to: (1) acquire Paragon Networks using inflated Company stock, (2) sell 6 million shares of the Company to the public in January 2004, raising $78 million, (3) obtain listing on the Russell 3000 Index, and (4) enable the Individual Defendants to sell nearly 1.3 million personally held shares in the Company, reaping nearly $15.8 million. The complaints further allege that on or around May 5, 2005, the Company announced that it received a Nasdaq Staff Determination letter, indicating that the Company's stock was subject to delisting from the Nasdaq. On May 20, 2005, Carrier Access announced that it was reviewing revenue and cost recognition issues. The press release stated that "certain revenues and direct costs have been recorded in incorrect periods. The amounts that have been quantified to date are significant..." On this news, Carrier Access's share price fell to a close of $4.61 per share on May 20, 2005. Also included in this litigation are all shareholders who acquired Carrier Access stock as Paragon Networks shareholders or in the January 29, 2004 Carrier Access public offering. The first identified complaint in the litigation is styled "Jerry Croker, et al. v. Carrier Access Corporation, et al.," filed in the United States District Court for the District of Colorado. The plaintiff firms in this litigation are: (i) Brodsky & Smith, LLC, 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004, Phone: 610.668.7987, Fax: 610.660.0450, E-mail: esmith@Brodsky-Smith.com (ii) Charles J. Piven, World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202, Phone: 410.332.0030, E-mail: pivenlaw@erols.com (iii) Dyer & Shuman, LLP, 801 E. 17th Avenue, Denver, CO, 80218-1417, Phone: 303.861.3003, Fax: 800.711.6483, E- mail: info@dyershuman.com (iv) Federman & Sherwood, 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102, Phone: 405-235-1560, E-mail: wfederman@aol.com (v) Law Offices of Brian M. Felgoise, P.C., Esquire at 261 Old York Road, Suite 423, Jenkintown, PA, 19046, Phone: 215.886.1900, E-mail: securitiesfraud@comcast.net (vi) Lerach Coughlin Stoia Geller Rudman & Robbins (San Diego), 401 B Street, Suite 1700, San Diego, CA, 92101, Phone: 619.231.1058, Fax: 619.231.7423, E-mail: info@lerachlaw.com (vii) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT, 06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail: sn06106@AOL.com (viii) Schiffrin & Barroway, LLP, 3 Bala Plaza E, Bala Cynwyd, PA, 19004, Phone: 610.667.7706, Fax: 610.667.7056, E- mail: info@sbclasslaw.com COUNTRY COACH: Recalls 9 Motorhomes Due To Incorrect Labeling ------------------------------------------------------------- Country Coach, Inc. is cooperating with the National Highway Traffic Safety Administration (NHTSA) by voluntarily recalling 9 motorhomes, namely: (1) COUNTRY COACH / ALLURE, model 2005 (2) COUNTRY COACH / INTRIGUE, model 2006 These motor homes fail to comply with the requirements of federal motor vehicle safety standard no. 120 - `tire selection and rims for motor vehicles other than passenger cars.' The front and rear tire cold tire inflation pressures of 125 PSI exceed the manufacturer's recommended maximum cold inflation pressure of 120 PSI. This could possibly lead to premature rim failure. Such a rim failure could result in the loss of steering control and could result in a crash. The Company will issue replacement federal tire labels reflecting the corrected cold tire inflation pressure of 120 PSI for both the front and rear tires. This change will result in a reduction of the cold inflation tire pressure of each front and rear tire by 5 PSI. The recall is expected to begin on June 22,2005. For more details, contact the Company by Phone: 1-800- 547-8015 or contact the NHTSA's auto safety hotline: 1-888-327-4236. CYBERONICS INC.: Faces Three Federal Securities Lawsuits in TX -------------------------------------------------------------- At least three securities law firms launched federal suits against Houston-based Cyberonics, Inc., alleging that the company insiders sold about $2 million in stock last year while failing to disclose negative information to investors. Cyberonics, which makes and sells a pacemaker-like medical device to treat epilepsy, has been on a Wall Street roller coaster as it has tried in the last year to gain regulatory approval to market the so-called "vagus nerve stimulation" therapy to treat severe depression. The lawsuits, which were all filed in Houston, seeks class action status on behalf of investors. They all allege that Cyberonics officials didn't disclose known manufacturing and quality assurance problems at its plant between June 2004 and October 2004. According to the suits, during that time, officials sold over $1.98 million in stock, but in January the company disclosed that it had received a warning letter from the Food and Drug Administration citing those manufacturing and quality control problems. The letter came at a tumultuous time for Cyberonics. Last June an FDA advisory panel recommended approval of the VNS for treatment-resistant depression, sending the stock price soaring. In August the agency went against the panel's advice and rejected the company's application, causing the stock to take a nosedive. Then in February shares spiked again when the FDA reversed itself and issued an "approvable" letter. But, again they plunged last month when the company said the Senate Finance Committee was investigating the agency's handling of the VNS application for depression. Thomas Gunderson, an analyst with Piper Jaffray & Co. in Minneapolis, downplayed the significance of the lawsuit filings. He told the Chronicle, "In general, Wall Street plays very little attention to these things." Indeed, the price of Cyberonics stock actually rose 12 percent Monday to $44.28 per share. Cyberonics had previously said it was in a formal quiet period, during which it wouldn't make public comments until the FDA announced its ruling or the company had other material information requiring disclosure. DREAMWORKS ANIMATION: Shareholders File Fraud Suits in C.D. CA -------------------------------------------------------------- Dreamworks Animation SKG, Inc. faces several shareholder class actions filed in the United States District Court for the Central District of California, on behalf of purchasers of the Company's securities from October 27,2004 to May 10,2005. The suits allege that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of DreamWorks securities. The action names as defendants DreamWorks, its Chief Executive Officer and its Chairman of the Board. Specifically, the Complaints allege that starting on October 27, 2004 and continuing until May 10, 2005, defendants made a series of materially false and misleading statements regarding the about Dreamworks business and earnings. During the Class Period the Company filed its Form 10-K for its year ended December 31, 2004. In addition, the Company issued press releases on November8, 2004, March 17, 2005 and May 10, 2005. The suits allege that throughout the Class Period, defendants failed to disclose and misrepresented the following material adverse facts known to defendants or recklessly disregarded by them: (1) that sales of Shrek 2 DVD's were declining; (2) retailers were returning to the Company massive amounts of unsold Shrek 2 DVD inventory; (3) the Company was shipping products far in excess of the actual demand for those products; and (4) as a result of the foregoing, defendants' opinions and statements concerning the Company's current and future earnings lacked a reasonable basis at all times. The complaints further allege that on or around May 10, 2005, the Company announced that Shrek 2 did not meet the company's retail sales expectations for the first quarter. The Company reported for the first time that the "sales shortfall resulted in a higher level of returns than expected. As a result, DWA recorded no revenue from Shrek 2 in the quarter other than from licensing and merchandising." On this news the price of DreamWorks stock dropped from $36.50 to close at $32.05. The first identified complaint is styled "Beverly Pfeffer, et al. v. DreamWorks Animation SKG, Inc., et al., case no. 05-CV- 3966." The plaintiff firms in this litigation are: (i) Abbey Gardy, LLP, 212 East 39th Street, New York, NY, 10016, Phone: 212.889.3700, E-mail: info@abbeygardy.com (ii) Charles J. Piven, World Trade Center-Baltimore, 401 East Pratt Suite 2525, Baltimore, MD, 21202, Phone: 410.332.0030, E-mail: pivenlaw@erols.com (iii) Faruqi & Faruqi LLP, 320 East 39th Street, New York, NY, 10016, Phone: 212.983.9330, Fax: 212.983.9331, E- mail: Nfaruqi@faruqilaw.com (iv) Glancy Binkow & Goldberg LLP (LA), 1801 Ave. of the Stars, Suite 311, Los Angeles, CA, 90067, Phone: (310) 201-915, Fax: (310) 201-916, E-mail: info@glancylaw.com (v) Milberg Weiss Bershad & Schulman LLP, 355 South Grand Avenue, Suite 4170, Los Angeles, CA, 90071, Phone: 213.617.9007, Fax: 213.617.9185, E-mail: info@milbergweiss.com (vi) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT, 06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail: sn06106@AOL.com (vii) Schiffrin & Barroway, LLP, 3 Bala Plaza E, Bala Cynwyd, PA, 19004, Phone: 610.667.7706, Fax: 610.667.7056, E- mail: info@sbclasslaw.com (viii) Wechsler Harwood LLP, 488 Madison Avenue 8th Floor, New York, NY, 10022, Phone: 212.935.7400, E-mail: info@whhf.com (ix) Wolf, Haldenstein, Adler, Freeman & Herz LLP, 270 Madison Avenue, New York, NY, 10016, Phone: 212.545.4600, Fax: 212.686.0114, E-mail: newyork@whafh.com EL PASO CORPORATION: To Distribute Payment in NV Antitrust Suit --------------------------------------------------------------- Nevada Attorney General Brian Sandoval and Consumer Advocate Adriana Escobar Chanos, Chief of the Attorney General's Bureau of Consumer Protection, announced the distribution of the final payment from a multi-million dollar settlement reached with El Paso Corporation. The settlement resolved a lawsuit filed late last year in Clark County against several energy companies alleging the companies conspired to fix natural gas prices. This violated the Nevada Unfair Trade Practices Act. The lawsuit named several defendants, including El Paso Corporation, Sempra Energy, Southern California Gas Company and San Diego Gas and Electric. It alleged the energy companies engaged in an elaborate conspiracy to manipulate the supply of natural gas in Southern Nevada and refrain from competing against each other causing tremendous price spikes for both natural gas and electricity. Escobar Chanos said in a press release the settlement with El Paso allowed consumers to receive either payment over a 20-year period or an accelerated payment plan at a discount. El Paso chose to accelerate payments and has now distributed the final payment to the State of Nevada. This method maximizes efficiency and return for residential ratepayers. In total, Nevada's consumers have received more than $34 million from this settlement "Distribution of funds to Southern Nevada's ratepayers will be in the form of a credit to the deferred energy account balances of Southern Nevada's utilities," said Mr. Chanos. "This method is administratively efficient since it does not require the issuance of thousands of individual checks and crediting the deferred energy balances reduces the ongoing carrying costs of these accounts, resulting in an even greater return to Nevada's electricity and natural gas ratepayers." The settlement also requires El Paso to cooperate with other investigations and actions regarding market manipulation or other misconduct by energy companies. Additionally, El Paso must restructure its pipeline system in order to eliminate an artificial market constraint that currently contributes to higher natural gas prices. The restructuring costs are estimated to total $200 million. "Redesign of the pipeline system will provide a long term benefit to Nevada's consumers potentially of greater ultimate value than the direct cash distributions," Mr. Chanos said. The State Consumer Advocate represents the public interest before the Public Utilities Commission of Nevada (PUC), federal utility regulatory agencies, courts and all other forums with jurisdiction over Nevada public utilities. FEATHERLITE INC.: Recalls 110 Motorhomes For Defect, Fire Hazard ---------------------------------------------------------------- Featherlite, Inc. is cooperating with the National Highway Traffic Safety Administration by voluntarily recalling 110 motorhomes, namely: (1) FEATHERLITE / H3-45, model 2005 (2) FEATHERLITE / XL-II, model 2005 These motor coach conversions are built on Prevost Bus Chassis and equipped with Vehicle Systems' Aqua-Hot and Hydro-Hot Water heaters, which use Webasto burner tubes. The burner tubes do not meet specifications and could fail prematurely. The surface temperature of the exhaust tube exiting from the heater can increase and could potentially ignite combustible materials in or around the vehicle. Featherlite is working with Vehicle Systems to notify owners and have the repair performed on their vehicles. For more details, contact Vehicle Systems by Phone: 1-800-685-4298, the Company by Phone: 888-826-8273 or visit the NHTSA's auto safety hotline: 1-888-327-4236. FIBERTHIN LLC: Settles Charges V. Unsubstantiated Diet Claims ------------------------------------------------------------- The marketers of the dietary supplements FiberThin and Propolene have settled Federal Trade Commission (FTC) charges that their misleading weight-loss claims violated federal laws. The principal defendants, located in Encinitas, California, are barred from making false claims about any dietary product in the future and are required to pay $1.5 million in consumer redress. According to the FTC, the defendants used a television infomercial, short TV spots, and Web sites to market FiberThin and Propolene, two fiber-based dietary supplements they claimed would cause rapid, substantial weight loss without any need to diet or exercise. The supplements were marketed together with two purported metabolism enhancers, Excelerene and MetaboUp. FiberThin and Propolene purportedly contain glucomannan, while MetaboUp and Excelerene purportedly contain green tea, chromium, and bitter orange. The defendants charged $99.80 and $89.95, respectively, for 60-day supplies of FiberThin/MetaboUp and Propolene/Excelerene, and offered a "Take it Off, Keep it Off" automatic shipping program that would send consumers additional supplies for $29.95. The defendants advertised these products through a 30-minute television infomercial that aired on numerous television stations, including The Learning Channel, PAX Family Entertainment Network, Home and Garden TV, and CNBC. In December 2003, the FTC announced its "Red Flag" campaign to educate members of the media about different types of bogus weight-loss advertising claims. The FTC's complaint charged that the defendants made "Red Flag" claims in their ads, including that the product would cause rapid, substantial weight loss (more than 2 pounds per week) without the need to diet or exercise; that weight loss would occur no matter what the consumer ate; and that weight loss would occur in all users. The FTC also alleged that the defendants used "expert endorsers" on their infomercial and other TV ads to make "Red Flag" claims. The FTC's complaint named FiberThin, LLC and Obesity Research Institute, LLC; their owners, Henny Den Uijl and Bryan Corlett; and the "expert endorsers," James Ayres and Jonathan M. Kelley, M.D., as defendants. The stipulated final order permanently bars the defendants from making the challenged "Red Flag" claims and unsubstantiated claims for any weight-loss product, dietary supplement, food, drug, or device, or misrepresenting any scientific study for the purposes of marketing a dietary supplement. Defendants FiberThin, Obesity Research Institute, Henny Den Uijl, and Bryan Corlett are required to pay $1.5 million in consumer redress; the order contains a $41 million suspended judgment, which will become immediately due if it is found that the defendants misrepresented their financial situation. The order also contains standard recordkeeping provisions to assist the FTC in monitoring the defendants' compliance. The Commission vote authorizing staff to file the complaint and proposed stipulated final order was 5-0. The complaint and stipulated final order were filed in the U.S. District Court for the Southern District of California on June 14, 2005. The proposed stipulated final order requires the court's approval. The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court. This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge. Copies of the Commission's complaint and the stipulated final order are available from the FTC's Web site at http://www.ftc.govand also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll- free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. For more details, contact Brenda Mack, Office of Public Affairs, by Phone: 202-326-2182 or contact Matthew Daynard or Rona Kelner, Bureau of Consumer Protection by Phone: 202-326-3291 or 202-326-2752 or visit the Website: http://www.ftc.gov/opa/2005/06/fiberthin.htm. FIFTH THIRD BANCORP: Suit Settlement Hearing Set August 18, 2005 ---------------------------------------------------------------- The United States District Court for the Southern District of Ohio, Western Division (Dayton) will hold a fairness hearing for the proposed $17 million settlement in the matter: David Stone V. Fifth Third Bancorp, Consolidated Case No. 1:03cv211 on behalf of all persons who purchased the common stock of Fifth Third Bancorp during the period from September 24, 2001 through and including January 31, 2003. The hearing will be held before the Honorable Thomas M. Rose in the United States Courthouse, Federal Building, Courtroom 2, 9th Floor, 200 West Second St., Dayton, OH 45402, at 9:00 a.m., on August 18, 2005. For more details, contact Fifth Third Bancorp Securities Litigation c/o The Garden City Group, Inc., Claims Administrator, P.O. box 9000 #6307, Merrick, NY, 11566-9000, Phone: (800) 406-6205, Web site: http://gardebcitygroup.comOR David A.P. Brower, Esq. of Milberg Weiss Bershad & Schullman, LLP, One Pennsylvania, New York, NY, 10119-0165, Phone: (212) 594-5300. FLORIDA: Hernando County To Hike Water Rates If It Loses in Suit ---------------------------------------------------------------- Hernando County in Florida warned that water rates would likely be increased if it loses in a class action, charging it with inappropriately keeping regulatory fees collected from Florida Water Services when the Company served most of Spring Hill, Hernando Today reports. Spring Hill couple Nicholas and Ann Morana and their attorney Joe Mason filed the suit, alleging that the county should have given the money back to customers when it bought the water company in 2003. He even pointed out that previously, a local judge ruled the county should give back the money, but commissioners voted 4-1 (with Commissioner Robert Schenck voting against) to appeal the decision. Although county lawyers say they will win the case, county and utility officials warn that if they must give up the money, they would have to turn to ratepayers to make up the money earmarked for improving the system. According to Commissioner Nancy Robinson, "Either you do nothing and don't fix the system. Or you raise rates. That's the only source (for money) -- the ratepayers." Deputy Utility Director Chuck Lewis agreed that if the county lost the lawsuit, current and former customers would get some money but see rate hikes soon afterward. He tells Today, "If you lose the $3 million you have to make it back. We'd have to look at both raising user fees and connection fees." He pointed out that the county's plan is to spend about $20 million during the next five years for utility improvements within the Spring Hill area and a total of about $60 million throughout the entire county. Court documents show that the lawsuit seeks to direct the county to return regulatory fees to customers dating back to 1994, which according to Mr. Lewis would involve approximately 60,000 people. He also added that adding that many would be difficult to find because they have either moved or died. Budget Director George Zoettlein told Today that it could cost the county between $250,000 and $500,000 in salaries and operational expenses to get the money back to customers. The best way to serve customers would be to improve the system, he pointed out. Late last year, County Judge Peyton Hyslop ruled in the lawsuit that the county should have returned the regulatory fee to customers. Assistant County Attorney Kurt Hitzemann wanted Judge Hyslop's ruling reconsidered but Judge Hyslop, by then, had left office. Later, County Judge Jack Springstead took over the case and decided not to hear arguments again, saying the county's avenue was to appeal. County Attorney Garth Coller warned that if the county gave in after the first court ruling and did not appeal, it could open the floodgates for future lawsuits by those hoping the county was an easy financial target. "You do not want to be encouraging litigation on that scale," Coller told commissioners recently. "I believe it would be a problem that would get worse." However, not all the money would go to current and former Florida Water customers. According to Mr. Mason, who is the lawyer in the class action suit, he would get a third of the windfall as payment, which virtually infuriated some commissioners, because that would leave significantly less money for customers, if the county lost the case in court. FORD MOTOR: Recalls 78,675 Trucks, Vehicles Due To Fire Hazard -------------------------------------------------------------- Ford Motor Company is cooperating with the National Highway Traffic Safety Administration by voluntarily recalling 78,675 pickup trucks and chassis cab vehicles, namely: (1) FORD / F-250 SUPERDUTY, model 2005 (2) FORD / F-350 SUPERDUTY, model 2005 (3) FORD / F-450 SUPERDUTY, model 2005 (4) FORD / F-550 SUPERDUTY, model 2005 On these pick-up truck and chassis cab vehicles equipped with 5.4L or 6.8L gasoline engines, the fuel jumper line may have an incorrect end form. The fuel line may separate at the connection to the main fuel bundle. If the fuel line separates, an operator may notice a gasoline odor and/or fuel on the ground, loss of power and the engine will eventually stall. Fuel leakage in the presence of an ignition source could result in a fire. Dealers will install an external retention clip at the fuel jumper line to the main fuel bundle connection. The recall is expected to begin on June 20,2005. For more details, contact the Company by Phone: 1-800-392-3673 or contact the NHTSA's auto safety hotline: 1-888-327-4236. FORD MOTOR: Recalls 180,104 Vans, Trucks, SUVs For Crash Hazard --------------------------------------------------------------- Ford Motor Company is cooperating with the National Highway Traffic Safety Administration by recalling 180,104 vehicles, namely: (1) FORD / E350, model 2004-2005 (2) FORD / E450, model 2004-2005 (3) FORD / EXCURSION, model 2004-2005 (4) FORD / F-250 SUPERDUTY, model 2005 (5) FORD / F-350 SUPERDUTY, model 2005 (6) FORD / F-450 SUPERDUTY, model 2005 (7) FORD / F-550 SUPERDUTY, model 2005 (8) FORD / F250 SUPERDUTY, model 2004 (9) FORD / F350 SUPERDUTY, model 2004 (10) FORD / F450 SUPERDUTY, model 2004 (11) FORD / F550 SUPERDUTY, model 2004 These pickup trucks, sport utility vehicles and vans equipped with 6.0L Diesel engines may experience stalling without warning while driving and may or may not restart. Should the engine stall, a vehicle crash could occur. Dealers will upgrade the fuel injection control module (FICM) wire harness or replace and/or have a new injection control pressure (ICP) sensor connector installed. The recall is expected to begin on July 5,2005. For more details, contact the Company by Phone: 1-800-392-3673 or contact the NHTSA's auto safety hotline: 1-888-327-4236. FOUR WINDS: Recalls 238 Motorhomes For Incorrect Tire Labeling -------------------------------------------------------------- Four Winds International is cooperating with the National Highway Traffic Safety Administration by voluntarily recalling 238 motorhomes, namely: (1) FOUR WINDS / CHATEAU, model 2005-2006 (2) FOUR WINDS / CHATEAU CITATION, model 2005 (3) FOUR WINDS / CHATEAU SPORT, model 2005-2006 (4) FOUR WINDS / DUTCHMEN, model 2005 (5) FOUR WINDS / DUTCHMEN DORADO, model 2005 (6) FOUR WINDS / DUTCHMEN EXPRESS, model 2005 (7) FOUR WINDS / FOUR WINDS, model 2005-2006 (8) FOUR WINDS / FOUR WINDS 5000, model 2005-2006 (9) FOUR WINDS / FOUR WINDS SIESTA, model 2005-2006 (10) FOUR WINDS / FUN MOVER, model 2005 These motorhomes, built on Ford E-450 chassis fail to comply with the requirements of federal motor vehicle safety standard no. 120 "Tire selection and rims for motor vehicles other than passenger cars." The tire pressure is incorrectly listed on the label for the rear tires. At the incorrectly stated pressure, the rear tires are unable to support the gross axle weight rating (GAWR) for the rear axle. Owners and dealers will be mailed supplementary tire labels containing the correct rear tire inflation information. For more details contact Ford by Phone: 1-800-392-3673, Four Winds by Phone: 1-574-266-1111 or contact the NHTSA's auto safety hotline: 1-888-327-4236. HYTRIN LITIGATION: ME Consumers To Receive Refunds in Settlement ---------------------------------------------------------------- Consumers who purchased the brand-name prescription medication Hytrin are eligible for refunds from a $30.7-million settlement agreement, Maine Attorney General Steven Rowe announced in a statement, dated June 3,2005. The refunds to consumers and health plans in 18 states will be paid by two companies which, the complaint alleged, conspired to engage in anticompetitive conduct that delayed the availability of a more affordable generic version of the medication. Hytrin, which is used in the treatment of hypertension and enlarged prostate, is manufactured by Abbott Laboratories, and the generic version (called "terazosin") is produced by Geneva Pharmaceuticals. According to a federal lawsuit, Abbott wrongfully paid Geneva to delay introduction of its generic version of Hytrin and took other steps to delay competition from lower-priced generic versions of its product. This illegal activity harmed consumers. Under the settlement agreement, which is still subject to final court approval, Abbott and Geneva would provide $28.7 million for consumers and health plans in Maine and 17 other states. The most direct way for consumers to obtain claims forms is through the settlement website, http://www.terazosinlitigation.com. Claims forms must be mailed to the settlement administrator no later than July 15, 2005. The settlement will benefit consumers who purchased terazosin products between October 15, 1995, and March 7, 2005, and amounts of refunds will depend on how many consumers file claims against the settlement fund. The settlement applies to consumers and health plans in Alabama, California, Florida, Illinois, Kansas, Maine, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, South Dakota, Tennessee, West Virginia and Wisconsin. Between 1999 and 2001, a number of consumers filed lawsuits against Abbott and Geneva. The cases were consolidated into a single lawsuit in federal court in the Southern District of Florida. After conducting their own investigations, the states of Florida, Kansas and Colorado filed their own lawsuit in the same court. The settlement establishes a separate $2 million fund to reimburse state agency claims and litigation costs incurred by Florida, Kansas and Colorado. Consumers may obtain a claims form from the settlement website, http://www.terazosinlitigation.com;by calling the settlement administrator toll-free at 1-877-886-0283; or by writing to the settlement administrator at: In re Terazosin Hydrochloride Antitrust Litigation, c/o Complete Claim Solutions, Inc., P.O. Box 24607, West Palm Beach, FL 33416. HYTRIN LITIGATION: MS Consumers To Get Share in Antitrust Pact -------------------------------------------------------------- Mississippi consumers who purchased the brandname prescription medication Hytrin are eligible for refunds from a $30.7-million nationwide settlement agreement, state Attorney General Jim Hood announced in a statement released early this month. The refunds to consumers and third-party payers in 18 states will be paid by two companies who, the complaint alleged, had conspired to engage in anticompetitive conduct that delayed the availability of a more affordable generic version of the medication. Hytrin, which is used in the treatment of hypertension and enlarged prostate, is manufactured by Abbott Laboratories, and the generic version (called "terazosin") is produced by Geneva Pharmaceuticals. According to a federal lawsuit, Abbott wrongfully paid Geneva to delay introduction of its generic version of Hytrin and took other steps to delay competition from lower-priced generic versions of its product. This illegal activity harmed consumers. Under the settlement agreement, which is still subject to final court approval, Abbott and Geneva would provide $28.7 million for consumers and third-party payers in Mississippi and 17 other states. The most direct way for consumers to obtain claims forms is through the settlement website, http://www.terazosinlitigation.com.Claims forms must be mailed to the settlement administrator no later than July 15, 2005. The settlement will benefit consumers who purchased terazosin products between October 15, 1995, and March 7, 2005, and amounts of refunds will depend on how many consumers file claims against the settlement fund. The settlement applies to consumers and third-party payers in Alabama, California, Florida, Illinois, Kansas, Maine, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, South Dakota, Tennessee, West Virginia and Wisconsin. Between 1999 and 2001, a number of consumers filed lawsuits against Abbott and Geneva. The cases were consolidated into a single lawsuit in federal court in the Southern District of Florida. After conducting their own investigations, the states of Florida, Kansas and Colorado filed their own lawsuit in the same court. The settlement establishes a separate $2 million fund to reimburse state agency claims and litigation costs incurred by Florida, Kansas and Colorado. Consumers may obtain a claims form from the settlement website, http://www.terazosinlitigation.com;by calling the settlement administrator toll-free at 1-877-886- 0283; or by writing to the settlement administrator by Mail: In re Terazosin Hydrochloride Antitrust Litigation c/o Complete Claim Solutions, Inc. P.O. Box 24607, West Palm Beach, FL 33416. IGA MANAGEMENT: ME Attorney General Warns Against Lottery Scam -------------------------------------------------------------- Maine Attorney General Steven Rowe warned Maine residents against a Canadian lottery scam, doing business as "IGA Management Payment Systems. In a statement, Mr. Rowe said that the professional con artists are using the pretense of a Canadian lottery to bilk Mainers out of thousands of dollars, with a new twist - they send a cashiers check. "IGA Management Payment Systems," which claims to do business from Ottawa, is mailing letters to Maine residents announcing that they have won the "North American Prize Pool," the statement announced. "Recipients of the letter are told that they have won over three hundred thousand dollars in cash. Recipients are told that before the winnings can be sent to them, they must pay a certain amount for "taxes and charges." An authentic looking four thousand dollar "cashier's check" that appears to be drawn on a Texas bank is enclosed with an explanation that it is being sent to help the recipient pay for the "taxes and charges." The recipient is encouraged to "keep this award from public notice" and to call a "lottery claim agent" at an Ottawa phone number to "finalize the payment process." If the recipient calls, he/she is asked to provide identifying information and to provide his/her bank account and routing information so that the alleged "lottery winnings" can be deposited. The recipient is then instructed to deposit the check in his/her bank account and to wire transfer the remaining several thousand dollars in "taxes and charges" to IGA. Of course, the four thousand dollar check is worthless, but that news often comes only after recipients have disclosed their bank account information and may have sent money to IGA." Canadian law enforcement officials have received 45 complaints against the Company between April 15, 2005 and June 6, 2005. Of these 45 complaints received, 4 are victims with a total loss of $15,503. Canadian authorities also received 65 complaints about North American Prize Pool between May 3, 2000, and June 3, 2005. Of these 65, 13 are actual victims with a total dollar loss of $36,041. The Attorney General also recently learned of an identical scam operating out of Vancouver, British Columbia using the name Coral Management Payment Systems using fake checks that appear to be drawn on a Texas bank as well. "If you receive a mailing advising you that you have won a lottery prize but that you must pay a fee or disclose personal financial information such as bank account information before collecting the prize, don't be fooled," Mr. Rowe warned. "The letter and enclosed check may look real, but they are not. They are a sham, pure and simple. My advice is to throw them away." For more details, contact the Maine Office of the Attorney General by Phone: 1-800-436-2131 or by E-mail: consumer.mediation@maine.gov, or contact Canadian authorities by Phone: 1-888-495-8501 or by E-mail: info@phonebusters.com. INTERSTATE BAKERIES: Suit Settlement Hearing Set August 26, 2005 ---------------------------------------------------------------- The United States District Court for the Western District of Missouri, Western Division will hold a fairness hearing on the proposed $15 million settlement with a $3 million claim in the IBC bankruptcy estate in the matter: Walter E. Smith V. Interstate Bakeries Corporation, Civil Action No. 03-0142-CV-W- FJG on behalf of all persons or entities who purchased or otherwise acquired the company's common stock between April 2, 2002 and April 8, 2003. The haring will be held before the Honorable Fernando j. Gaitan, Jr. in Charles Evans Whittaker Courthouse, 400 E. 9th St., Kansas City, MO, 64106, at 8:15 a.m., on August 26, 2005. For more details, contact Steven G. Schulman, Esq. of Milberg Weiss Bershad & Schullman, LLP, One Pennsylvania, New York, NY, 10119-0165, Phone: (212) 594-5300 or Samuel H. Rudman, Esq. of Lerach Coughlin Stoia Geller Rudman & Robbins, LLP, 200 Broadhollow, Suite 406, Melville, NY, 11747-4806, Phone: (631) 367-7100. KELLOGG CANADA: Faces Consumer Suit For Misleading Advertising -------------------------------------------------------------- A mother filed a class action against Kellogg Canada, charging it with misleading consumers with "low sugar" advertising on its boxes of Frosted Flakes and Froot Loops cereals, the Montreal Gazette reports. Janie Bedard of Deux Montagne filed the suit, saying that the cereal maker's low-sugar marketing strategy leads consumers to believe the boxes contain "one-third less sugar" than the original cereals of the same brand. However, since the company replaced the sugar with starch, the buyer is actually getting a product that contains 7% more "sugars" in the case of Frosted Flakes and 4% more in Froot Loops. According to Mrs. Bedard, a mother of four children age 2 to 9, an equal portion of the low-sugar version cereal has more "sugar" and calories than the original. Her suit mirrors a similar class action demand that was filed in California in March. Should the Federal Court approve the cross-Canada class action, Mrs. Bedard will be asking Kellogg Canada for a refund for the 16 boxes of cereal she bought. Additionally, Mrs. Bedard will demand the manufacturer turn over profits from sales of the low-sugar cereals in Canada to children's health organizations. MICHIGAN: Judge Dismisses Patients' Lawsuit V. William Beaumont --------------------------------------------------------------- U.S. District Judge Avern Cohn of the Eastern District of Michigan dismissed a lawsuit that accuses William Beaumont Hospitals of shirking its duty to provide emergency care at a reasonable price for uninsured patients, The Detroit News Washington Bureau reports. Coming just as Beaumont faces a high-profile federal probe into its charity status, the ruling concerns a class action lawsuit brought by five patients who claimed that they had been overcharged after emergency room visits to Beaumont, which operates hospitals in Royal Oak and Troy. According to Judge Cohn, the plaintiffs were participating in a "nationwide attack on charity care." The judge also found that the patients had not proved any violation of federal or state law and that each patient had signed consent form promising to pay for their care. In addition, the judge found that the complaint "recites no facts leading to the conclusion that Beaumont charged 'excessive and inflated rates.'" Beaumont is one of 10 hospitals at the center of a federal inquiry into whether nonprofit hospitals are doing enough community service to qualify for tax-exempt status. That federal inquiry was made by the U.S. Senate Finance Committee, which had sent a letter on May 25 to the hospitals, asking for details about their charitable activities, patient billing and ventures with for-profit companies. Written responses are due by July 11. In a press statement, Sen. Charles Grassley, R-Iowa, chairman of the Finance Committee said that he was concerned about some charities abusing their tax-exempt status. The committee is also looking at other potential abuses. Last year, it tightened rules about donating a car to charity. The panel has also looked at excessive executive compensation at nonprofits and questionable tax breaks for land conservation, spokeswoman Jill Gerber said. Besides Beaumont, the Finance Committee is looking at hospitals in Ohio, New York, Illinois, Georgia, Mississippi, California, Minnesota and Arizona. Beaumont spokeswoman Colette Stimmel said the hospital is preparing its response to the committee. According to her, the hospital was most likely included in the inquiry because it is the country's second-leading provider of care for Medicare patients. She also pointed out that in 2003, the latest year that information is available, the hospital spent $95 million on community services, including $67 million in unreimbursed care for Medicare and Medicaid patients, $20 million for charity or unpaid care, $13 million on community programs and $500,000 on sponsorships or donations. MIDWEST CANNON: Recalls 10T Votive Candles Due to Fire Hazard ------------------------------------------------------------- In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Midwest Cannon Falls of Cannon Falls, Minnesota is voluntarily recalling about 10,000 Serenity Votive Candles. The candles' wax can catch fire, causing a high flame. This can cause nearby combustibles to catch fire and result in burns to consumers. Midwest has received one report of the candle wax catching fire. No injuries or property damage have been reported. The recalled candles consist of a glass votive cup surrounded by a silver holder with a standing angel figure attached. Each holder contains an engraved quotation. The angel stands about 3 inches tall. Each candle has a proverb engraved into the metal holder. Manufactured in China, the candles were sold at all gift stores nationwide from June 2004 to May 2005 for about $20. Consumers should return these candles to the place of purchase to receive a refund. Consumer Contact: For additional information, contact Midwest at (800) 776-2075 between 7:30 a.m. and 5 p.m. CT Monday through Friday, or go the company's Web site: http://www.midwestofcannonfalls.com. ORION BUS: Recalls 1092 2001-05 Buses Due to Structural Defect -------------------------------------------------------------- Orion Bus Industries Ltd. in cooperation with the National Highway Traffic Safety Administration's Office of Defects Investigation (ODI) is voluntarily recalling about 1092 2001-05 Orion VII buses due to structural defect. According to the ODI, on certain busses equipped with vapor door assemblies, the two-piece curved connecting rods when used as an element of the door actuation linkage in conjunction with a vapor medium pneumatic differential engine, may be subject fatigues failure resulting in bending or breaking of the connecting rod. A broken connecting rod can allow the door panel to move freely in an uncontrolled manner, leaving passengers inside the vehicle unprotected by the door panel and enabling protruding door panel to strike persons or objects outside the vehicle. As a remedy, Orion is working with Orion Bus International to notify owners and have the repair performed on other vehicles. The remedy consists of replacing the two-piece connecting rod with a one-piece connecting rod. NHTSA CAMPAIGN ID Number: 05V282000, Recall Date: JUN 14, 2005. For more details, contact Orion Bus by Phone: 905-403-7832 or the NHTSA Auto Safety Hotline: 1-888-327-4236. POSSIS MEDICAL: Shareholders Launch Securities Fraud Suits in MN ---------------------------------------------------------------- Possis Medical, Inc. faces several securities class actions filed in the United States District Court for the District of Minnesota on behalf of purchasers of the Company's stock from September 24,2002 to August 24,2004. Several purported shareholder class action lawsuits have been filed against the Company and certain of its executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. The Company develops, manufactures, and markets medical devices, including the AngioJet System - a non-surgical, minimally invasive catheter system designed to rapidly remove blood clots using a stream of water. Specifically, the Complaints allege that during the Class Period defendants failed to disclose and/or misrepresented material adverse facts, including that: (1) the AngioJet System, the Company's key product, was not more effective than existing alternatives, including competing drug therapies, nor did AngioJet reduce significant procedural complications or significantly increase positive benefits such as improved blood flow or other similar effects; (2) the AngioJet could not be expanded as a "technology platform" because AngioJet was not in the first instance effective for routine use in a broad range of heart attack patients to reduce the size of a patient's damaged tissue area; and (3) as a result of the foregoing problems, Possis could not maintain its projected revenue growth or achieve sustained revenue growth targets as high as 35%. The Complaints further allege that defendants were motivated to and did conceal the true safety and efficacy of AngioJet, and defendants' ability to expand and develop Possis' AngioJet technology, because it enabled defendants to artificially inflate the price of Possis shares and then allowed defendants and other Company insiders to sell more than 361,730 shares of their privately held Possis stock to the unsuspecting public for proceeds in excess of $7.07 million while in possession of material adverse, non-public information about the Company. On or around August 24, 2004, it was disclosed that AngioJet failed to demonstrate clinical superiority in the majority of heart attack patients, causing Possis' share price to plummet more than 38%. As a result, the Company lost almost 40% of its market capitalization after Possis shares traded down more than $11.75 per share, to $19.00 per share, as defendants lowered the Company's 2005 earnings and revenue guidance. The first identified complaint in the suit is styled "The Cornelia I. Crowell GST Trust, et al. v. Possis Medical, Inc., et al., case no. 05-CV-1084," filed in the United States District Court for the District of Minnesota under Judge James M. Rosenbaum. The plaintiff firms in this litigation are: (i) Brodsky & Smith, LLC, 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004, Phone: 610.668.7987, Fax: 610.660.0450, E-mail: esmith@Brodsky-Smith.com (ii) Charles J. Piven, World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202, Phone: 410.332.0030, E-mail: pivenlaw@erols.com (iii) Dreier, Bartiz & Federman LLP, 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102, Phone: 405.235.1560, E-mail: wfederman@aol.com (iv) Federman & Sherwood, 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102, Phone: 405-235-1560, E-mail: wfederman@aol.com (v) Glancy Binkow & Goldberg LLP (NY), 1501 Broadway, Suite 1416, New York, NY, 10036, Phone: (917) 510-000, Fax: (646) 366-089, E-mail: info@glancylaw.com (vi) Milberg Weiss Bershad & Schulman LLP (New York), One Pennsylvania Plaza, 49th Floor, New York, NY, 10119, Phone: 212.594.5300, Fax: 212.868.1229, E-mail: info@milbergweiss.com (vii) Murray, Frank & Sailer LLP, 275 Madison Ave 34th Flr, New York, NY, 10016, Phone: 212.682.1818, Fax: 212.682.1892, E-mail: email@rabinlaw.com (viii) Reinhardt, Wendorf & Blanchfield Attorneys at Law, E- 1000 First National Bank Building, 332 Minnesota Street, St. Paul, MN, 55101, Phone: 800.465.1592, Fax: 651.297.6543, E-mail: info@ralawfirm.com (ix) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT, 06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail: sn06106@AOL.com RMS TITANIC: FL Court Certifies Investors Fiduciary Duty Lawsuit ---------------------------------------------------------------- The United States District Court for the Middle District of Florida granted class certification to the lawsuit filed against RMS Titanic, Inc., seeking to recover damages to the plaintiffs and to all minority shareholders allegedly caused by alleged breaches of fiduciary duties by some of the Company's directors and officers in connection with an alleged hostile takeover in November 1999. David Shuttle and Barbara Shuttle filed the suit on March 22, 2004. On March 1, 2005, the court issued an order granting the plaintiffs' motion to certify this matter as a class action. The class is defined as all persons who owned shares of RMS Titanic, Inc. as of November 26, 1999 but who were not members of the group of shareholders who voted to remove previous officers and directors from their positions with the company. The suit is styled "Shuttle, et al v. Geller, et al, case no. 8:03-cv-02515-RAL," filed in the United States District Court for the Middle District of Florida, under Judge Richard A. Lazzara. Representing the Company are Victor Stephen Cohen and William J. Schifino, Jr. of Williams, Schifino, Mangione & Steady, P.A., One Tampa City Ctr., Suite 2600, 201 N. Franklin St., P.O. Box 380, Tampa, FL 33601, Phone: 813/221-2626, ext 237 Fax: 813/221-7335, E-mail: scohen@wsmslaw.com or wschifino@wsmslaw.com. Representing the plaintiffs are Richard M. Bales, Jr. of Bales & Sommers, PA, 601 Brickell Key Drive Suite 702, Miami, FL 33131, Phone: 305/372-1200, Fax: 305-372-9008, E-mail: rbalesjr@attglobal.net; and Steven G. Storch of Storch, Amini & Munves, P.C., 2 Grand Central Tower, 25th Floor New York, NY 10017, Phone: 212/490-4100, E-mail: sstorch@samlegal.com. SPARTAN CHASSIS: Recalls 609 Motor Homes For Defect, Fire Hazard ---------------------------------------------------------------- Spartan Chassis, Inc. is cooperating with the National Highway Traffic Safety Administration (NHTSA) by voluntarily recalling 609 Spartan/Mountain Master motorhomes, model 2005-2006. On these motor homes, the harness and cables were routed incorrectly. Sharp casting edges of the transmission lifting ear cut into the cables or the wire harness. Smoke may occur which may not be visible to the driver and an electrical short may occur which could result in a fire. Dealers will reroute the harness and cables away from the transmission lifting ear, avoiding the casted part which was the source of chaffing. The manufacturer has not yet provided an owner notification schedule for this campaign. For more details, contact the Company by Phone: 517-543-6400 or contact the NHTSA's auto safety hotline: 1-888-327-4236. SPECIAL TOUCH: Inks Settlement For NY AG Spitzer's Overtime Suit ---------------------------------------------------------------- New York Attorney General Eliot Spitzer reached a settlement of a lawsuit that was filed last year against Special Touch, a Brooklyn-based home health care agency, for failing to pay overtime wages to its home health care attendants. The lawsuit had alleged that the Company and its owner Steven Ostrovsky had failed to pay over $3 million in such wages to over 2,000 workers over a six-year period going back to 1998. According to the lawsuit, home health care attendants employed by the Company typically worked between 50 to 60 hours for an average wage rate of $6.50 per hour, without any enhanced rate as required by New York State law for hours worked over forty. These workers were entitled to additional compensation for overtime hours, with the amount dependent upon the applicable minimum wage. Under the settlement agreement an audit will be performed to determine the exact amount of unpaid overtime based on one and one-half times the minimum wage rate. The Attorney General's office estimates that at least $3,000,000.00 will be paid to the workers for the six year period prior to the filing of the lawsuit, which covers the entire period allowed by the statue of limitations. The settlement also takes into account the possible impact of a recent federal appellate court decision Coke v. Long Island Care at Home, that holds that home health care aides are entitled to an overtime rate of time and one-half of their regular hourly rate. Special Touch will put into escrow all additional monies that will be owed to the workers if the Coke decision stands upon further appeal. "Today's agreement will provide thousands of home health care aides who been employed by Special Touch since 1998 with the legally required overtime pay that they earned working long hours taking care of the ill and convalescent," Attorney General Spitzer said. "While we recognize home health care agencies face some difficulty interpreting the complicated federal and state wage and hour laws applicable in this industry, home health care aides must be provided the overtime premium that is afforded to them under state law." The investigation was handled by Assistant Attorney General Devin A. Rice of the Attorney General's Labor Bureau, which is under the supervision of Bureau Chief M. Patricia Smith. SPRINT CORPORATION: Donates Phone Cards in MI Consumer Suit Pact ---------------------------------------------------------------- Sprint Corporation donated $300,000 in Sprint telephone calling cards to Michigan's military and their families, as part of a settlement with Michigan Attorney General Mike Cox, the Attorney General announced early this month in a statement. The calling cards will be distributed to Marine and Army personnel serving overseas in Iraq and Afghanistan and to their families living here in the United States. Twenty-thousand cards will be distributed to the Army - 10,000 cards for soldiers overseas and 10,000 cards to their families. Another 10,000 cards will be given to the Marines, which will be evenly divided between Marines and their loved ones. "For our service men and women abroad, these phone cards can help bring a piece of home to their service overseas," said Attorney General Cox. "The phone cards demonstrate a small token of appreciation that will help keep our troops connected with their loved ones." He chose the troops to receive the calling cards as part of a settlement his office reached earlier this year with the Company. The settlement stemmed from consumer complaints that the Company switched their telephone long distance service from another carrier to the Company without their knowledge or approval, a practice known as "slamming." Under the terms of the settlement, the Company will pay $1.2 million in cash and donated products to the State of Michigan and charities selected by Mr. Cox. "We thank Attorney General Cox for supporting our troops and for this donation," said Marine Captain Jason Pace. "There is nothing more important to Marines than hearing from home while they are serving overseas." Army Staff Sergeant Delancie Horton also commended Mr. Cox for remembering the troops. "The Attorney General should be recognized for providing a voice for Michigan's fighting men and women," he said. During 2003 and 2004, the Consumer Protection Division collected more than $600 million on behalf of Michigan. In 2004, the Division stopped more than $400 million in utility rate increases and responded to more than 102,000 consumer complaints. For more information on the Consumer Protection Division, go to the Attorney General's Web site: http://www.michigan.gov/ag. TOBACCO: Time, Newsweek To Remove Ads in School Library Editions ---------------------------------------------------------------- The National Association of Attorneys General (NAAG) reached an agreement with two national magazine publishers to eliminate tobacco advertising from school library editions of four major magazines with high youth readerships, New York Attorney General Spitzer announced in a statement dated June 20,2005. The agreement was reached with Time, Inc. (which publishes Time, People and Sports Illustrated), and Newsweek, Inc. (which publishes Newsweek). This agreement is the latest step in a continuing effort by the Attorneys General to reduce youth exposure to tobacco advertising. In November 2003, the Attorneys General reached an agreement with the major tobacco companies to eliminate tobacco advertising from special "classroom" editions that the publishers create for use in school social studies classes, such as Time and Newsweek. In 2003, the tobacco companies agreed to arrange for "selective binding" of these editions, to ensure that all tobacco advertisements would be removed from these "classroom" copies. Numerous school libraries, however, subscribe to the regular editions of magazines, rather than the special "classroom" editions. As a result, many elementary and secondary school students are exposed to tobacco advertising when they read magazines in their school libraries. The agreement announced today will help eliminate such advertising from the school library copies of four magazines with very high youth readerships - Time, Newsweek, People and Sports Illustrated. "This is a major success in our continuing efforts to reduce the marketing of tobacco products to children," said Attorney General Spitzer. "I want to applaud Time and Newsweek for joining this effort and helping to remove tobacco advertisements from the school library editions of these magazines. " "This is another important step," said Iowa Attorney General Tom Miller, co-chair of NAAG's Tobacco Committee. "About 2,000 kids become newsmokers every day, and about a third of them will eventually die prematurely from smoking-related disease. Every step we take is important to reduce this terrible death toll." "I thank Time, Inc. and Newsweek, Inc. for the responsible way they have responded to our concerns about tobacco advertising in school library editions of their magazines," Idaho Attorney General Lawrence Wasden, co-chair of NAAG's Tobacco Committee said. "Reduced youth exposure to tobacco advertising is in the public interest and in the best interests of our children." The agreement announced today was aided by the efforts of youth working under the auspices of the New York State Department of Health Tobacco Prevention Program. These volunteers conducted a statewide survey of 223 middle and high schools in New York, and found that more than 70% of the school libraries had copies of Time, Newsweek, People and Sports Illustrated with tobacco advertising. Moreover, school librarians confirmed that all four magazines are among the most popular magazines read by children in the schools. Attorney General Spitzer then wrote to the major tobacco companies in March 2005, asking them to seek "selective binding" arrangements to remove their tobacco advertising from the school library editions of these magazines. At the same time, Attorney General Spitzer's office contacted the magazines' publishers, requesting that they permit this "selective binding" option. In response, Philip Morris reported that it had previously ceased all advertising in these four magazines, and two other tobacco companies - Santa Fe Natural Tobacco and U.S. Smokeless Tobacco Company - agreed to seek such "selective binding" arrangements. Meanwhile, Time, Inc. and Newsweek, Inc. both agreed to create a "selective binding" option for all tobacco companies, thereby ensuring that all tobacco advertisements will be removed from these four magazines. These arrangements will be in place this summer, prior to the commencement of the new school year. TRIUMPH MOTORCYCLES: Recalls 969 Motorcycles Due To Crash Hazard ---------------------------------------------------------------- Triumph Motorcycles (America) Ltd. is cooperating with the National Highway Traffic Safety Administration (NHTSA) by voluntarily recalling 969 motorcycles, namely: (1) TRIUMPH / DAYTONA 955I, model 2005 (2) TRIUMPH / SPEED TRIPLE, model 2005 (3) TRIUMPH / SPRINT ST, model 2005 (4) TRIUMPH / SPRINT ST ABS, model 2005 On these motorcycles, the lower by-pass coolant hose can rupture. A loss of coolant from the engine can result in the engine overheating and seizure, which could result in a crash. Dealers will replace the coolant hose. The recall is expected to begin on July 2005. For more details, contact the Company by Phone: 1-678-854-2010 or contact the NHTSA's auto safety hotline: 1-888-327-4236. UNITED STATES: High Court Refuses to Review Rights of Way Suit -------------------------------------------------------------- The U.S. Supreme Court refused to review whether a lower court properly overturned a class action settlement in which Sprint, Qwest, Level 3 and WilTel Communications had agreed to pay $142 million for railroad rights of way, the Rocky Mountain News reports. The refusal by the nation's high court in essence sends back the decades long property rights dispute between landowners and several telecommunications companies to settlement talks or the courtroom. Additionally, the rejection also intensifies efforts to resolve 42 lawsuits in 32 courts, which are now expected to proceed as a result of last year's Chicago appeals court ruling that scuttled a nationwide settlement providing $2 per foot to owners of land where the phone companies buried fiber-optic cables. Lead plaintiffs' counsel Nels Ackerson told Rocky Mountain News that the four telcos should get ready for trials unless they are prepared to offer a significantly higher monetary settlement than what was negotiated in the class action case two years ago. Sprint spokesman Scot Stoffel told Rocky Mountain News that the Overland Park, Kansas-based firm was disappointed by the Supreme Court's decision not to intervene, adding that the initial settlement had provided the most efficient way to resolve expensive litigation. Meanwhile, the two Colorado defendants, Denver-based Qwest Communications and Level 3 of Broomfield, declined to comment on the ruling. Of the four defendants, Sprint was the biggest fiber installer, on more than 36,000 miles of railroad rights of way, and thus faces the highest exposure, according to Mr. Ackerson, whose Washington, D.C., law firm is also representing plaintiff classes in several right of way lawsuits in state courts. The plaintiffs claim the companies ignored subsurface rights to landowners and that the cable was installed without permission. Mr. Ackerson also told Rocky Mountain News, "We are preparing for trial because the best way to get to a settlement is to proceed to a judge and jury when the parties can't agree among themselves." He adds that although going to trial state by state carries the risk of losing each time, a jury trial could return a potentially bigger payout for landowners. "If this was to go to trial there would be a multiple of that ($2 a foot settlement) figure," Mr. Ackerson said. The cases go back to the 1980s when phone companies were constructing fiber networks on railroad rights of way negotiated with the railroads. Two years ago, Judge Wayne Anderson, a federal judge in Chicago, gave preliminary approval to a national skeleton affecting as many as 360,000 landowners. However, as previously reported in the October 21, 2004 edition of the Class Action Reporter, the 7th U.S. Circuit Court of Appeals scuttled the proposed settlement in which Sprint and three other phone companies would have paid an estimated $142 million to owners of land where they have placed fiber-optic cables. Landowners in Tennessee and Kansas opposed the settlement due to a clause that would prevent them from taking class-action claims to trial in their states. According to the three-judge panel of the federal appeals court, the interests of the dissenting landowners were not adequately represented under the agreement with Sprint Communications Co., QWest Communications Corp., Level 3 Communications LLC, Wiltel Communications LLC and Union Pacific Railroad Co., thus it returned the suit to a lower court for further action. The phone companies had paid railroads to allow placement of fiber-optic cables along their tracks, only to find that the railroads did not own the land. The settlement, which would have given $2 per linear foot for those who could prove ownership, had an estimated total payout of about $142 million. During the hearing, the dissenting landowners successfully argued that they were in a much stronger position to win their suits than the landlords who agreed to the settlement, thus the appeals court majority agreed to scuttle the proposed settlement. UNITED STATES: Native Americans Offer to Settle Suit For $27.5B --------------------------------------------------------------- American Indians suing the interior department for more than a century's worth of lost royalties stated that they would settle for $27.5 billion if Congress agreed not to draw the money from other Indian Country programs, the News24, South Africa reports. The class action lawsuit, which has lingered in US District Court for nine years, was filed on behalf of 300,000 of American Indian plaintiffs in 1996, accusing the department of mismanaging oil, gas, grazing, timber and other royalties from American Indian lands dating back to 1887. During the past nine years, a federal judge has found both interior secretary Gale Norton and her predecessor, Bruce Babbitt, in contempt for failing to come up with an accounting of what the American Indians are owed. Elouise Cobell, the lead plaintiff, told News24 that American Indian leaders have agreed on 50 "principles" for a settlement, including a calculation that the royalties plus compounded interest totaling $176 billion. According to the interior department though, while American Indians have received payments periodically from the trust funds, it could take at least several years and require spending $12 billion to $14 billion to figure out what they still are owed. However, Ms. Cobell stated that a $27.5 billion settlement would acknowledge that some accounts were paid and is realistic in light of the accounting problems involved. She wants the money paid into the government's fund for paying judgments on legal claims. She adds, "It is discounted quite substantially, but I think we all understand that there's a lot of suffering in Indian Country. Many people will die before the money is approved." Dan Dubray, an interior department spokesperson though told News24 that the shifting strategy by the plaintiffs was perplexing. He also said that the department favors a settlement based on facts, not speculation without an accounting. He further adds, "They sued to achieve an accounting, and the department has spent $100m on an historical accounting. Now they're saying that's not the goal. It's an odd turn of events." WAL-MART STORES: CA Federal Appeals Court Agrees to Hear Appeal --------------------------------------------------------------- A federal appeals court in San Francisco stated that it would hear Wal-Mart Stores' appeal of a judge's order approving class action status for as many as 1.6 million current or former women employees who allege discrimination, The Associated Press reports. As reported in previous editions of the Class Action Reporter, the women's lawsuit claims that the Bentonville, Arkansas-based retail giant set up a system that frequently pays female workers less than their male counterparts for comparable jobs and bypasses them for promotions. The world's largest private employer said its 3,500 stores do not have a policy that discriminates against women and argued that the class of plaintiffs is so large that the case has become "unmanageable." Individuals, familiar with the case told AP that as it stands, the case would be the largest civil rights lawsuit against one company in U.S. history. WALGREENS CO.: 11 Workers File Race Discrimination Suit in IL ------------------------------------------------------------- Eleven black current and former Walgreens Co. workers in seven states initiated a lawsuit against the drugstore chain, accusing the company of discriminating against minority employees, The Associated Press reports. Filed in U.S. District Court in East St. Louis, Illinois, the suit claims that the company has a "pervasive policy" of steering black employees to work in stores in areas with mostly black or lower-income customers, using an internal system to categorize stores based on race and income. In addition, the suit, which seeks class action status, also alleges that black employees are denied advancement opportunities because the company directs them to its stores with lower profits, sometimes costing them bonuses often tied to store sales and gross profits. Walgreens spokeswoman Tiffany Bruce told AP that while the Deerfield, Illinois-based company does not comment on pending litigation, "we're surprised by the allegations because historically we've cared about equal opportunity for all of our employees." She added, "We absolutely have zero tolerance for discrimination of any kind and strong policies promoting diversity throughout the company." Alleging that Walgreens engages in "segregation" of its black workers, the suit seeks unspecified monetary damages and a permanent court order barring Walgreen from using the questioned employment practices. Tiffany Klosener, the Kansas City, Missouri-based attorney for the plaintiffs, which are from Illinois, Indiana, Missouri, Kansas, Florida, Texas and Michigan told AP, "We believe this is a nationwide pattern of discrimination in promotions, compensation and hiring" at Walgreens. "There are a lot more clients we have that are not named in the complaint." According to the lawsuit, Walgreens categorizes its stores based on racial, ethnic and income demographics and then uses that information to intentionally "segregate" black management workers at stores with large numbers of black or low-income customers. Walgreens is the nation's largest drugstore chain by sales. It has more than 4,800 stores in 45 states and Puerto Rico, and 2004 sales of $37 billion. YELLOW BOOK USA: Lawsuit Settlement Hearing Set August 26, 2005 --------------------------------------------------------------- The Superior Court of New Jersey, Bergen County will hold a fairness hearing in the proposed settlement in the matter: The Education Station Day Care Centers, Inc. v. The Yellow Book USA, Inc., BER-L-13657-04, on behalf of all persons who signed one or more contracts to purchase advertising in a Yellow Book Directory between May 7, 2003 and July 31, 2004. The Court will hold the hearing on August 26, 2005 at 9:00 a.m., before the Honorable Estela M. De La Cruz, Superior Court of New Jersey, Bergen County Justice Center, 10 Main St. Hackensack, NJ, 07601. For more details, contact Phone Directory Settlement Administrator, Phone: 1-800-406-6204, Web site: http://www.phonedirectorysettlement.com. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- June 2005 INTERNATIONAL ASBESTOS CONFERENCE Mealey Publications London, England Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 22-23, 2005 VIOXX LITIGATION CONFERENCE Mealey Publications The Intercontinental, New Orleans Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 20-21, 2005 REACT 2005 American Conferences Hyatt Regency Newport, Newport, Rhode Island Contact: http://www.americanconference.com July 21-22, 2005 ASBESTOS LITIGATION 101 CONFERENCE Mealey Publications The Ritz-Carlton Hotel, New Orleans Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com June 27-28, 2005 LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS 2005 Practising Law Institute New York, NY Contact: 800-260-4PLI; 212-824-5710; info@pli.edu July 28-29, 2005 CLASS ACTION LITIGATION: PROSECUTION & DEFENSE STRATEGIES 2005 Practising Law Institute New York, NY Contact: 800-260-4PLI; 212-824-5710; info@pli.edu August 18-19, 2005 PRODUCTS LIABILITY: PHARMACEUTICAL AND MEDICAL DEVICE ISSUES ALI-ABA San Francisco Contact: 215-243-1614; 800-CLE-NEWS x1614 August 25-26, 2005 CLASS ACTION FAIRNESS ACT OF 2005 AND OTHER EMERGING CLASS ACTION ISSUES ALI-ABA Chicago Contact: 215-243-1614; 800-CLE-NEWS x1614 September 8-9, 2005 CLASS ACTION LITIGATION: PROSECUTION & DEFENSE STRATEGIES 2005 Practising Law Institute Chicago, IL Contact: 800-260-4PLI; 212-824-5710; info@pli.edu September 19-20, 2005 NATIONAL ASBESTOS LITIGATION CONFERENCE Mealey Publications The Four Seasons Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 26-27, 2005 CONSUMER FINANCE LITIGATION & CLASS ACTIONS American Conferences New York Contact: http://www.americanconference.com September 26-27, 2005 REINSURANCE SUMMIT Mealey Publications The Ritz-Carlton Hotel, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 26-27, 2005 WATER CONTAMINATION CONFERENCE Mealey Publications The Ritz-Carlton Marina del Rey Los Angeles Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 26-27, 2005 BAD FAITH LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Philadelphia Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 27, 2005 ARBITRATION CONFERENCE Mealey Publications The Ritz-Carlton Hotel, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com September 27-28, 2005 PREPARING FOR THE FUTURE OF FINITE AND STRUCTURED RISK (RE)INSURANCE American Conferences New York Contact: http://www.americanconference.com October 2005 ASBESTOS LIABILITY FORUM Mealey Publications London, England Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 2005 LAW CLIENT DEVELOPMENT CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 6-7, 2005 ASBESTOS LITIGATION IN THE 21ST CENTURY ALI-ABA Chicago Contact: 215-243-1614; 800-CLE-NEWS x1614 October 7, 2005 REINSURANCE LAW & PRACTICE 2005: NEW LEGAL & BUSINESS DEVELOPMENTS IN A CHANGING ENVIRONMENT Practising Law Institute New York, NY Contact: 800-260-4PLI; 212-824-5710; info@pli.edu October 17-18, 2005 BENZENE LITIGATION CONFERENCE Mealey Publications The Ritz Carlton, Phoenix Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com October 27-28, 2005 RETAIL LIABILITY CONFERENCE Mealey Publications Mandalay Bay Resort & Casino,Las Vegas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 3-4, 2005 CONFERENCE ON LIFE INSURANCE COMPANY PRODUCTS ALI-ABA Washington DC Contact: 215-243-1614; 800-CLE-NEWS x1614 November 3-4, 2005 NATIONAL MANUFACTURING CONFERENCE Mealey Publications The Ritz-Carlton Coconut Grove, Miami Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 7, 2005 ALL SUMS: REALLOCATION & SETTLEMENT CREDITS CONFERENCE Mealey Publications The Ritz-Carlton, Boston Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 7-8, 2005 LEXISNEXIS PRESENTS: COPYRIGHT - FROM TRADITIONAL CONCEPTS TO THE DIGITAL AGE Mealey Publications Downtown Conference Center at Pace University, New York City Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 7-8, 2005 CONSTRUCTION DEFECT & MOLD LITIGATION CONFERENCE Mealey Publications The Ritz Carlton Phoenix, Phoenix Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 9, 2005 CONCRETE CONSTRUCTION DEFECT LITIGATION CONFERENCE Mealey Publications Four Seasons Resort, Santa Barbara Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 10-11, 2005 CALIFORNIA SECTION 17200 CONFERENCE Mealey Publications Four Seasons Resort Santa Barbara Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 14-15, 2005 SILICA LITIGATION CONFERENCE Mealey Publications The Ritz-Carlton, New Orleans Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 17-18, 2005 ASBESTOS LIABILITY FORUM Mealey Publications London, England Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com November 17-18, 2005 Mass Torts Made Perfect Seminar MassTortsMadePerfect.Com Las Vegas, Nevada Contact: 800-320-2227; 850-436-6094 (fax) December 5-6, 2005 ASBESTOS BANKRUPTCY CONFERENCE Mealey Publications The Ritz-Carlton New York, Battery Park Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 6, 2005 ASBESTOS INSURANCE CONFERENCE Mealey Publications The Ritz-Carlton New York, Battery Park Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com December 12-13, 2005 VIOXX LITIGATION CONFERENCE Mealey Publications Caesars Palace, Las Vegas Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com February 16-17, 2006 ACCOUNTANTS' LIABILITY ALI-ABA Coral Gables, Miami, Florida Contact: 215-243-1614; 800-CLE-NEWS x1614 September 28-30, 2006 LITIGATING MEDICAL MALPRACTICE CLAIMS ALI-ABA Boston Contact: 215-243-1614; 800-CLE-NEWS x1614 TBA FAIR LABOR STANDARDS CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA AIRLINE BANKRUPTCY LITIGATION CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com TBA FASTFOOD INDUSTRY LIABILITY CONFERENCE Mealey Publications Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com * Online Teleconferences ------------------------ June 01-30, 2005 HBA PRESENTS: AUTOMOBILE LITIGATION: DISPUTES AMONG CONSUMERS, DEALERS, FINANCE COMPANIES AND FLOORPLANNERS CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 01-30, 2005 CONSTRUCTION DISPUTES: TEXAS RESIDENTIAL CONSTRUCTION DEFECT LIABILITY CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 01-30, 2005 HBA PRESENTS: ETHICS IN PERSONAL INJURY CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 01-30, 2005 IN-HOUSE COUNSEL AND WRONGFUL DISCHARGE CLAIMS: CONFLICT WITH CONFIDENTIALITY? CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 01-30, 2005 BAYLOR LAW SCHOOL PRESENTS: 2004 GENERAL PRACTICE INSTITUTE -- FAMILY LAW, DISCIPLINARY SYSTEM, CIVIL LITIGATION, INSURANCE & CONSUMER LAW UPDATES CLEOnline.Com Contact: 512-778-5665; info@cleonline.com June 27-28, 2005 LITIGATING EMPLOYMENT DISCRIMINATION & SEXUAL HARASSMENT CLAIMS 2005 Practising Law Institute Contact: 800-260-4PLI; 212-824-5710; info@pli.edu July 28-29, 2005 CLASS ACTION LITIGATION: PROSECUTION & DEFENSE STRATEGIES 2005 (VIDEOCONFERENCE) Practising Law Institute Contact: 800-260-4PLI; 212-824-5710; info@pli.edu TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #1 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #2 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 TORTS PRACTICE: 18TH ANNUAL RECENT DEVELOPMENTS #3 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 TORTS PRACTICE: 19TH ANNUAL RECENT DEVELOPMENTS CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #1 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #2 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 21ST ANNUAL RECENT DEVELOPMENTS #3 CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 22ND ANNUAL RECENT DEVELOPMENTS CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 PUNITIVE DAMAGES: MAXIMIZING YOUR CLIENT'S SUCCESS OR MINIMIZING YOUR CLIENT'S EXPOSURE CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 EFFECTIVE DIRECT AND CROSS EXAMINAITON CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 STRATEGIC TIPS FOR SUCCESSFULLY PROPOUNDING & OPPOSING WRITTEN DISCOVERY CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CACI: CALIFORNIA'S NEW CIVIL JURY INSTRUCTIONS CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com EXPERT WITNESS ADMISSIBILITY IN MOLD CASES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES Big Class Action Contact: seminars@bigclassaction.com NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com PAXIL LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECENT DEVELOPMENTS INVOLVING BAYCOL Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECOVERIES Big Class Action Contact: seminars@bigclassaction.com SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com SHOULD I FILE A CLASS ACTION? LawCommerce.Com / Law Education Institute Contact: customerservice@lawcommerce.com THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com TRYING AN ASBESTOS CASE LawCommerce.Com Contact: customerservice@lawcommerce.com THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO SALES AND ADVERSTISING American Bar Association Contact: 800-285-2221; abacle@abanet.org ________________________________________________________________ The Meetings, Conferences and Seminars column appears in the Class Action Reporter each Wednesday. Submissions via e-mail to carconf@beard.com are encouraged. New Securities Fraud Cases CYBERONICS INC.: Schatz & Nobel Files Securities Suit in S.D. TX ---------------------------------------------------------------- The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking class action status in the United States District Court for the Southern District of Texas on behalf of all persons who purchased the publicly traded securities of Cyberonics, Inc. (Nasdaq: CYBX) ("Cyberonics" or the "Company") between June 15, 2004, through October 1, 2004, inclusive (the "Class Period"). Cyberonics is a company that designs, develops, and commercializes medical devices, which allegedly provide therapy, Vagus Nerve Stimulation (VNS), for the treatment of epilepsy and other debilitating neurological and psychiatric disorders. The complaint alleges that Cyberonics and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose that they were engaged in serious violative manufacturing and quality practices that would have a negative impact on prospects for the Company's VNC product approval. While well aware of true nature of the serious issues facing FDA approval of the VNC system for the depression indication, Company insiders sold over $1.98 million of Cyberonics stock during the Class Period. For more details, contact Wayne T. Boulton or Nancy A. Kulesa of Schatz & Nobel, P.C., Phone: +1-800-797-5499, E-mail: sn06106@aol.com, Web site: http://www.snlaw.net. DRDGOLD LIMITED: Marc S. Henzel Files Securities Suit in S.D. NY ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of DRDGOLD Limited (NASDAQ: DROOY), formerly known as Durban Roodepoort Deep, Limited, securities during the period between October 23, 2003 and February 24, 2005 (the "Class Period"). The complaint charges DRDGOLD and certain of its officers and directors with violations of the Securities Exchange Act of 1934. DRDGOLD is a gold exploration and mining company. The Company operates gold mines through its South African and Australasian operations. The complaint alleges that, throughout the Class Period, defendants made numerous statements regarding: (1) the successful restructuring of the Company's North West Operations in South America; (2) the Company's ability to reduce the negative impact of the increasing value of the South African Rand versus the U.S. Dollar; and (3) the increasing strength of the Company's balance sheet. In truth and in fact, the Company's problems with its North West Operations were never fully resolved and resulted in the Company being forced to record an impairment charge for the full value of its mining assets there. Moreover, despite representations to the contrary, the Company continued to be negatively impacted by the increasing value of the South African Rand. As detailed in the complaint, these problems resulted in the Company being forced to announce that it might not be able to operate as a going concern. When this information was belatedly disclosed to the public, shares of DRDGOLD fell more than 25%, on extraordinarily heavy volume. For more details, contact the Law Offices of Marc S. Henzel, 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA, 19004, Phone: 610-660-8000 or 888-643-6735, Fax: 610-660-8080, E-Mail: mhenzel182@aol.com. EASTMAN KODAK: Marc S. Henzel Lodges Securities Suit in S.D. NY --------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Eastman Kodak Company (NYSE: EK) common stock during the period between April 23, 2003 and September 25, 2003 (the "Class Period"). The complaint charges Kodak and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Kodak engages in the developing, manufacturing and marketing of traditional and digital imaging products, services and products for consumers, professionals, healthcare providers, the entertainment industry and other commercial customers. The complaint alleges that on April 23, 2003, the Company provided Q2 2003 guidance, stating that "second-quarter operational earnings could fall into the range of 60 cents per share to 80 cents per share." Though defendants continued to receive adverse information throughout the quarter confirming that the Company would fail to meet these estimates, defendants did not disclose until June 18, 2003 that the Company would badly miss its projections. On July 23, 2003, the Company backtracked on its previous bad news, stating the operating earnings actually came in for Q2 2003 at $0.39 per share. However, on September 25, 2003, defendants announced that the Company's attempt to continue operating under its then-existing business model had been failing throughout the Class Period. As a result of operating difficulties, the Company would be forced cut its historic dividend by 72%. On this news the Company's stock price plummeted by 18% to its 18 year-low on September 25, 2003. According to the complaint, as a result of the defendants' false statements, Kodak's stock traded at inflated levels during the Class Period, increasing to as high as $32 per share on June 17, 2003, permitting defendants to sell $550 million worth of debt at inflated prices, to justify the payment of extraordinary 450% increases in the cash portion of defendants' incentive compensation for fiscal 2002 and to prevent the Company's disgruntled institutional investors from taking steps at the 2003 annual meeting of shareholders to reign in years of excessive executive compensation at Kodak or to assume control over the Kodak Board of Directors. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (1) Kodak's unpaid accounts receivable had risen materially in Q2 2003; (2) the Company's operating income was coming in at 50% of defendants' projections; (3) the Company's restructuring charges were materially exceeding previously disclosed levels; (4) Asian consumer film and paper sales were being much more adversely affected by severe acute respiratory syndrome in the Company's Asian markets than Kodak had budgeted for or led investors to believe; (5) the Company's transition from silver halide based technology to digital technologies was having a dramatic adverse effect on its profitability by reducing high-margin film sales; (6) the Company was losing more ground to Fuji in U.S. film sales than defendants had previously led investors to believe, resulting in severe losses in market share; (7) competition with Fuji was requiring defendants to slash prices, cutting further into the Company's gross profit margins; and (8) the Company's internal controls were deficient, preventing it from formulating reliable forecasts. For more details, contact the Law Offices of Marc S. Henzel, 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA, 19004, Phone: 610-660-8000 or 888-643-6735, Fax: 610-660-8080, E-Mail: mhenzel182@aol.com. EASTMAN KODAK: Schiffrin & Barroway Lodges Securities Suit in NY ---------------------------------------------------------------- The law firm of Schiffrin & Barroway, LLP initiated a class action lawsuit in the United States District Court for the Western District of New York on behalf of all securities purchasers of Eastman Kodak Company (NYSE: EK) ("Kodak" or the "Company") between April 23, 2003 and September 25, 2003 inclusive (the "Class Period"). The complaint charges Kodak, Daniel A. Carp, and Robert H. Brust with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts, which were known to defendants or recklessly disregarded by them: (1) that the Company was experiencing significant pricing pressure from competitors; (2) that the Company's core film and paper business was declining; (3) that as a consequence of the foregoing, the Company was forced to make significant cuts to its dividend to pay for substantial restructuring expenses; (4) that the Company's future profits would decline due to the switch from the high-margin film products to the less profitable digital technology; and (5) that the Company's statements regarding its growth and progress lacked in all reasonable basis when made. On September 25, 2003, the Company unveiled its plans for future development. The discussion revealed that Kodak, in order to maintain profitability, would have to switch from the high- margin film and paper products to the less profitable digital technology. The switch would negatively impact Kodak's future earnings potential. Additionally, the restructuring of the Company would result in a substantial dividend cut. The truth about the Company's future prospects shocked the market. Shares of Kodak fell $4.84 per share, or 17.93 percent, on September 25, 2003, to close at $22.15 per share. For more details, contact Marc A. Topaz, Esq. or Darren J. Check, Esq. of Schiffrin & Barroway, LLP, Phone: +1-888-299-7706 or +1-610-667-7706, E-mail: info@sbclasslaw.com, Web site: http://www.sbclasslaw.com. NAVARRE CORPORATION: Marc S. Henzel Files Securities Suit in MN --------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a class action lawsuit in the United States District Court for the District of Minnesota on behalf of purchasers of Navarre Corporation (Nasdaq: NAVR) between July 23, 2003 and May 31, 2005, inclusive (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action is pending against defendants Navarre, Eric H. Paulson (CEO, President, Chairman) and James Gilbertson (CFO). The complaint alleges that throughout the Class Period defendants reported quarter after quarter of record results that were purportedly achieved by successful execution of the Company's strategy. As particularized in the complaint, defendants' class period representations concerning the Company's financial results and its business were materially false and misleading for the following reasons: (1) Defendants had materially inflated Navarre's reported income by failing to properly recognize expenses relating to executive deferred compensation; (2) Defendants' seeming success was attributable, in material part, to improper accounting; (3) The Company's financial results, reported in press releases and SEC filings were not, contrary to defendants' express representations, prepared in accordance with generally accepted accounting principles; (4) The certifications signed by defendants Paulson and Gilbertson in Navarre's SEC filings, attesting to the accuracy of the financial results included therein, were false because the financial results were artificially inflated through improper accounting; (5) during the third fiscal quarter of 2005, Navarre improperly recognized millions in deferred tax benefits as income; and (6) Navarre was experiencing a significant slowdown in demand for its anti-virus software products that was materially and negatively impacting its overall business. On May 31, 2005, Navarre issued a press release announcing that it would postpone release of its fourth quarter and fiscal year 2005 results pending an accounting review focused on the recognition of deferred compensation expense for payments made to defendant Paulson and the classification of fiscal 2005 tax items. In response to this announcement, the price of Navarre common stock dropped from $9.00 per share on May 31, 2005 to $8.02 per share on June 1, 2005, a one-day drop of 10.8% on unusually heavy trading volume. The complaint further alleges that defendants were motivated to commit the wrongdoing alleged therein so that Navarre insiders, including defendants Paulson and Gilbertson, could sell their personally held Navarre shares at artificially inflated prices. During the Class Period, insiders sold a total of 1,269,000 shares, for total proceeds of $16,183,254.58. For more details, contact the Law Offices of Marc S. Henzel, 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA, 19004, Phone: 610-660-8000 or 888-643-6735, Fax: 610-660-8080, E-Mail: mhenzel182@aol.com. NAVARRE CORPORATION: Lerach Coughlin Files Securities Suit in MN ---------------------------------------------------------------- The law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") initiated a class action in the United States District Court for the District of Minnesota on behalf of purchasers of Navarre Corporation ("Navarre") (NASDAQ:NAVR) common stock during the period between January 21, 2004 and February 22, 2005 (the "Class Period"). The complaint charges Navarre and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Navarre engages in the publication and distribution of various home entertainment and multimedia products, including personal computer software, audio and video titles, and interactive games. The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's business and financial results. On January 10, 2005, Navarre announced the acquisition of FUNimation for $100 million in cash and between 1.495 million and 1.827 million shares of Navarre stock. After this announcement, Navarre's stock reached its Class Period high of $18.77 per share. Defendants took advantage of the inflation in Navarre's stock during the Class Period, selling 994,362 shares of Navarre stock for proceeds of $13.8 million. On January 18, 2005, Navarre filed a registration statement with the SEC to raise up to $140 million through the sale of its common stock to fund the acquisition of FUNimation. On January 26, 2005, Navarre reported favorable third quarter fiscal 2005 results, which defendants said reflected "the continuing execution of our strategic plan." Then, on February 22, 2005, the Company suddenly withdrew its Registration Statement initially filed for the purpose of funding its acquisition of FUNimation. According to the complaint, this sudden withdrawal reignited rumors that the Company's accounting was problematic. On this news, the stock dropped to below $7 per share. Later, the Company announced that it would have to postpone the release of its fourth quarter and fiscal year 2005 financial results and that it was reviewing the recognition and classification of certain fiscal 2005 tax items. For more details, contact William Lerach or Darren Robbins of Lerach Coughlin, Phone: 800/449-4900 or 619/231-1058, E-mail: wsl@lerachlaw.com, Web site: http://www.lerachlaw.com/cases/navarre/. PEMSTAR INC.: Schatz & Nobel Lodges Securities Fraud Suit in MN --------------------------------------------------------------- The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking class action status in the United States District Court for the District of Minnesota on behalf of all persons who purchased the publicly traded securities of PEMSTAR, Inc. (Nasdaq: PMTR) ("PEMSTAR" or the "Company") between January 29, 2003 to January 24, 2005, inclusive (the "Class Period"). The Complaint alleges that PEMSTAR and certain of its officers and directors violated federal securities laws. Specifically, defendants misrepresented the Company's business condition. Throughout the Class Period, PEMSTAR suffered from extensive liquidity constraints that inhibited PEMSTAR's ability to achieve the necessary gross margin expansion that was required for the Company to create and sustain accounting profits. The Complaint alleges that defendants failed to disclose that the Company needed gross margins of at least 9% in order to achieve profitability, a level that defendants knew it was years away from attaining. Additionally, defendants understated the liabilities associated with its Mexican facilities and overstated the Company's accounts receivables which had become materially impaired. On January 24, 2005, PEMSTAR issued a press release announcing that it was revising its outlook for the fiscal 2005 third quarter, implementing additional cost-reduction initiatives and restating its financial results for its fiscal year ended March 31, 2004, due to accounting discrepancies at its Mexico facility. By the time PEMSTAR made this disclosure, its common stock had declined nearly 70% from its Class Period high. For more details, contact Wayne T. Boulton or Nancy A. Kulesa of Schatz & Nobel, P.C., Phone: +1-800-797-5499, E-mail: sn06106@aol.com, Web site: http://www.snlaw.net. ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Glenn Ruel Senorin, Aurora Fatima Antonio and Lyndsey Resnick, Editors. Copyright 2004. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *