/raid1/www/Hosts/bankrupt/CAR_Public/051021.mbx
C L A S S A C T I O N R E P O R T E R
Friday, October 21, 2005, Vol. 7, No. 209
Headlines
ALPINE MOUNTAIN: Stipulated Judgments Filed For Consumer Fraud
AVON PRODUCTS: 401(k) Participant Files Fiduciaries Suit in NY
BOSTON SCIENTIFIC: Shareholders Launch Securities Suits in MA
CLEAR CHANNEL: Faces Antitrust Lawsuits in NY, PA, FL, CA, IL
DHB INDUSTRIES: Shareholders Launch Securities Suits in E.D. NY
FAR EAST BROKERS: Recalls Jack 'O Lanterns Due to Fire Hazard
GENERAL MOTORS: Shareholders Launch Securities Suits in S.D. NY
GRANT THORNTON: Chief Says Firm Can Withstand Refco's Collapse
HOLIDAY INN: Settles AZ AG's Pregnancy Discrimination Complaint
HUTCHINSON TECHNOLOGY: Shareholders File Fraud Suits in MN Court
IMERGENT INC.: Investors File New Suit Over Bogus Earning Report
INTERNATIONAL COMFORT: Recalls Furnaces, AC Units For Fire Risk
LONG JOHN: Arbitrator Certifies Class in FLSA Arbitration Demand
MILLER ESTATES: OR Residents Get Free Mediation in Fraud Suit
MINNESOTA: Minority Businesses Withdraws Suit, Vows to Re-file
MP3DOWNLOADCITY.COM: CA Court Halts Deceptive Site Advertising
OHIO: Residents Near Warren Landfill Files Suit V. Several Firms
PACIFIC HEALTH: To Pay $1M Civil Penalties For Consumer Fraud
PIZZA HUT: Continues to Face Lawsuit For FLSA Violations in CA
SERONO INC.: Reaches Settlement For CA AG's Consumer Fraud Suit
TRAFFIX INC.: Qwest Files Indemnification Claim For MN Lawsuit
TXU CORPORATION: Shareholders Launch Securities Fraud Suit in TX
UNION PACIFIC: Lawyer Files Suit in TX Over Texarkana Derailment
UNITED STATES: Congress Approves Bill V. Fastfood, Obesity Suits
Asbestos Alert
ASBESTOS LITIGATION: Japanese Landlords to Eradicate Asbestos
ASBESTOS LITIGATION: Aussie Univ. Settles Claim With Ex-Student
ASBESTOS LITIGATION: Organization Creates AUD200 Mil Payout Fund
ASBESTOS LITIGATION: Removal Firm Could Pay Maximum US$2M Fine
ASBESTOS LITIGATION: Fiji Govt. Warns of Future Asbestos Danger
ASBESTOS LITIGATION: HON Ready for 20% Jump in 2 years, Analyst
ASBESTOS LITIGATION: Japan's Asbestos-Linked Deaths to Reach 15T
ASBESTOS LITIGATION: Ill. Man Files Asbestos Lawsuit v. 4 Firms
ASBESTOS LITIGATION: Hardie Urged to Clear Old Homes of Asbestos
ASBESTOS LITIGATION: UK Widower Fights to Claim for Wife's Death
ASBESTOS LITIGATION: Japan Govt. to Check Asbestos at 360 Sites
ASBESTOS LITIGATION: Widow Receives Overdue Payment From UK Firm
ASBESTOS LITIGATION: Metso Corp. Notes 124 Claims Still Pending
ASBESTOS LITIGATION: Congoleum Lawyers Had Conflict of Interest
ASBESTOS LITIGATION: UK Firm Fined GBP35T for Unlawful Disposal
ASBESTOS LITIGATION: UK Distillery Fire Blows Hazard to Vicinity
ASBESTOS LITIGATION: UK Pool Shut Down After Asbestos Discovery
ASBESTOS LITIGATION: Cape PLC Continues GBP40 Mil Claims Scheme
ASBESTOS LITIGATION: Owens-Illinois Inc. Maintains 33,000 Claims
ASBESTOS LITIGATION: Japan Govt. Studies Eased Eligibility Rules
ASBESTOS LITIGATION: Asbestos Sealants Offer Costly Replacements
ASBESTOS LITIGATION: Arizona Man Charged for Unlawful Abatement
ASBESTOS LITIGATION: NZ Group to Launch Campaign Against Hardie
ASBESTOS LITIGATION: Flytippers to Pay for Removal Costs, UK Law
ASBESTOS ALERT: UK Company Awards Widow GBP120,000 Compensation
ASBESTOS ALERT: US EPA Fines AK Hotel US$80T for CAA Violations
ASBESTOS ALERT: KY Paper Settles $75T for Air Pollution Breaches
New Securities Fraud Cases
ANDRX CORPORATION: DYER & Shuman Sets Lead Plaintiff Deadline
DHB INDUSTRIES: Beatie And Osborn Lodges Securities Suit in NY
DHB INDUSTRTIES: Glancy Binkow Files Securities Fraud Suit in NY
IMMUCOR INC.: Scott + Scott Lodges Securities Fraud Suit in GA
LIPMAN ELECTRONIC: Federman & Sherwood Lodges NY Securities Suit
LIPMAN ELECTRONIC: Jacob Sabo Lodges Securities Fraud Suit in NY
REFCO INC.: Lerach Coughlin Lodges Securities Fraud Suit in NY
REFCO INC.: Schiffrin & Barroway Lodges Securities Suit in NY
TAG-IT PACIFIC: DYER & Shuman Schedules Lead Plaintiff Deadline
*********
ALPINE MOUNTAIN: Stipulated Judgments Filed For Consumer Fraud
--------------------------------------------------------------
Two stipulated judgments were filed against the owner and
operators of a now defunct manufactured housing dealership in
Southern Oregon, who allegedly violated both the state's
consumer protection and civil racketeering laws by deceiving
customers with losses in the thousands and many with nothing to
show for it, state Attorney General Hardy Myers announced in a
statement.
Named in the judgments filed in Jackson County Circuit Court are
Gary A. Waggoner, formerly of Medford and now a resident of
Montana, owner and president of Alpine Mountain Homes, Inc. and
Brad M. and Deborah A. Blanchard of Rogue River, operators of
both the Medford and White City locations of the manufactured
housing dealership. The stipulated judgments do not admit any
violation of law.
In June 2005, the Oregon Department of Justice obtained a
temporary restraining order and filed a lawsuit against the
three defendants for allegedly violating state laws through a
pattern of wrongful activities such as thefts, an instance of
forgery, and violations of both Oregon's mortgage banker/broker
law and the Unlawful Trade Practices Act. The company had closed
its doors in April 2005 and filed for protection under the
federal bankruptcy laws a month later.
The stipulated judgments resolve the lawsuit for ORICO and UTPA
violations and require the defendants to be permanently out of
the manufactured housing industry and the mortgage banking or
brokering business in Oregon. The three also agree to not
violate the state consumer protection laws.
"The documented losses are in the hundreds of thousands with 30
victims losing from $100 to $80,000," Myers explained.
"Unfortunately, just before the enterprise closed its doors, the
company took large sums of money from trusting consumers on the
understanding their money would be safeguarded but the company
used their money to pay off other outstanding obligations.
Alpine reached the point where it was no longer possible to take
one consumer's money to pay off the flooring on another
consumer's home."
A flooring company, formerly Bombardier Capital of Vermont and
now GE Commercial Finance of Colchester, Vermont, allegedly lost
over $350,000 with approximately $266,000 representing "out of
trust" loans, where the homes which were the collateral for the
flooring loans left the dealership but Alpine didn't pay off
Bombardier. The Vermont company has sued Alpine in federal
court. Two consumers have filed private lawsuits against the
defendants in Jackson County Circuit Court.
Under the Blanchards' limited judgment, they are required to pay
Justice $33,000 for distribution to eleven consumers, who lost
$10,000 or more. Justice has been paid $9,000 and expects the
rest by operation of the judgment lien on the Blanchards' home
The stipulated general judgment signed by Waggoner reflects that
he has paid Justice $10,000 for its Consumer Protection and
Education Fund.
"Unfortunately, the company's recklessness with other people's
money leaves little for all the victims. The judgments are the
most that could be achieved under the circumstances," Myers
said. Justice has provided the victims and their lawyers with
detailed information on the bankruptcy case and various bonds
they might try to access.
Consumers wanting more information about the judgments and
consumer protection in general may call the Attorney General's
consumer hotline: (503) 378-4732 (Salem area only),
(503) 229-5576 (Portland area only) or toll-free at
1-877-877-9392, or visit the Website:
http://www.doj.state.or.us.
AVON PRODUCTS: 401(k) Participant Files Fiduciaries Suit in NY
--------------------------------------------------------------
A participant in Avon Products Inc.'s 401(k) initiated a lawsuit
on behalf of plan participants who invested in the New York-
based company's stock, alleging that plan officials breached
their fiduciary duties by making false and misleading statements
related to Avon's business, according to a recent SEC filing,
The Pension & Investments Online reports.
The suit, filed on October 7, 2005, with the U.S. District Court
in New York, alleges that plan fiduciaries "failed to protect
the plan from huge losses - even though they should have known
that investing in Avon stock was an imprudent investment for the
plan." Court papers revealed that Mr. Rogati filed the complaint
on behalf of individuals who participated in the plan from July
28, 2004, to the present. In addition, the complaint also names
Avon's retirement board and plan trustee JPMorgan Chase Bank as
a defendant.
The suit further alleges that the defendants issued "a series of
materially false and misleading public statements about Avon's
businesses, as well as its financial prospects and results,"
which allegedly caused the company's stock to trade at
"artificially inflated levels during the class period."
Avon's Personal Savings Account Plan had $656 million in assets
at the end of 2004, according to the company's Form 11-K for the
most recent plan year. The form listed 19 investment options for
the plan, including the Avon Stock fund.
The suit is styled, "Rogati v. Jung et al, 1:05-cv-08603-UA,"
filed in the United States District Court for the Southern
District of New York, currently no judge is assigned.
Representing the Plaintiff is Stephen John Fearon, Jr. of
Squitieri & Fearon, LLP, 32 East 57th St., 12th Floor, New York,
NY 10022, Phone: (212) 575-2092, Fax: (212) 575-2184, E-mail:
stephen@sfclasslaw.com.
BOSTON SCIENTIFIC: Shareholders Launch Securities Suits in MA
-------------------------------------------------------------
Boston Scientific Corporation faces several securities class
actions filed in the United States District Court for the
District of Massachusetts on behalf of the purchasers of the
Company's securities from March 31,2003 to August 23,2005.
The complaints allege that during the Class Period, Boston
Scientific, a company that engages in the development and
marketing of cardiovascular and endosurgery medical device
products, and certain individual defendants violated provisions
of the Securities and Exchange Act of 1934, causing its stock to
trade at artificially inflated levels. Specifically, the
complaint alleges that the Company provided highly explicit
false and misleading assurances of the Company's ability to
satisfy FDA regulations governing its medical device product
quality, as well as affirmative representations as to the
Company's knowledge and expertise regarding design, development,
marketing approval and sales of its medical devices. The
complaints further allege over $400 million sold in insider
trading.
The complaints further allege that on or around August 23, 2005,
based on the cumulative impact of three separate FDA Warning
Letters, investors learned of defendants' broad-based
concealment of its broken quality program and the risks the
Company faced. As a result, Boston Scientific's stock price
dropped $1.23, or 4.5% to $25.92, on volume of 15.8 million
shares -- nearly $19.89 or 43.4% from its Class Period high of
$45.81 on April 5, 2004.
The first identified complaint in the litigation is styled "PSY
Trading Incorporated, et al. v. Boston Scientific Corporation,
et al., case no. 05-CV-11912," filed in the United States
District Court for the District of Massachusetts. The plaintiff
firms in the litigation are:
(1) 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
(2) Law Offices of Charles J. Piven, P.A., World Trade
Center-Baltimore, 401 East Pratt Suite 2525, Baltimore,
MD, 21202, Phone: 410.332.0030, E-mail:
pivenlaw@erols.com
(3) Murray, Frank & Sailer LLP, 275 Madison Ave 34th Flr,
New York, NY, 10016, Phone: 212.682.1818, Fax:
212.682.1892, E-mail: email@murrayfrank.com
(4) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT,
06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail:
sn06106@AOL.com
(5) Scott & Scott LLC, P.O. Box 192, 108 Norwich Avenue,
Colchester, CT, 06415, Phone: 860.537.5537, Fax:
860.537.4432, E-mail: scottlaw@scott-scott.com
CLEAR CHANNEL: Faces Antitrust Lawsuits in NY, PA, FL, CA, IL
-------------------------------------------------------------
Clear Channel Communications, Inc. faces several class action
filed in various federal courts, alleging violations of federal
antitrust laws.
Melinda Heerwagen filed the first suit on June 13, 2002 in the
United States District Court for the Southern District of New
York. The plaintiff, on behalf of a putative class consisting of
certain concert ticket purchasers, alleges that anti-competitive
practices for concert promotion services by us nationwide caused
artificially high ticket prices.
On August 11, 2003, the Court ruled in the Company's favor,
denying the plaintiff's class certification motion. The
plaintiff has appealed this decision to the U.S. Court of
Appeals for the Second Circuit, and oral argument occurred on
November 3, 2004. A decision has not yet been issued.
Several other putative class actions were filed by different
named plaintiffs in U.S. District Court in Philadelphia, Miami,
Los Angeles and Chicago, styled:
(1) Cooperberg v. Clear Channel Communications, Inc., et
al., Civ. No. 2:05-cv-04492 (United States District
Court for the Eastern District of Pennsylvania)
(2) Diaz v. Clear Channel Communications, Inc., et al.,
Civ. No. 05-cv-22413 (United States District Court for
the Southern District of Florida),
(3) Thompson v. Clear Channel Communications, Inc., Civ.
No. 2:05-cv-6704, United States District Court for the
Central District of California, and
(4) Bhatia v. Clear Channel Communications, Inc., et al.,
Civ. No. 1:05-cv-05612, United States District Court
for the Northern District of Illinois
The claims made in these actions are substantially similar to
the claims made in the "Heerwagen" action, except that the
geographic markets alleged are local in nature and the members
of the putative classes are limited to individuals who purchased
tickets to concerts in the relevant geographic markets alleged.
The Company has been served in the Philadelphia action, but not
in any of the other three.
DHB INDUSTRIES: Shareholders Launch Securities Suits in E.D. NY
---------------------------------------------------------------
DHB Industries, Inc. faces several securities class actions
filed in the United States District Court for the Eastern
District of New York on behalf of purchasers of the Company's
securities from April 21,2004 until August 29,2005.
The suits charge the Company and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. DHB designs, manufactures and markets protective armor,
through its subsidiaries, Point Blank Body Armor, Inc. ("Point
Blank") and Protective Apparel Corporation of America ("PACA").
Specifically, the complaints allege that throughout the Class
Period, defendants issued numerous statements concerning the
quality of the Company's bulletproof vests. Recently, DHB
announced it would stop manufacturing and selling certain of its
vests due to their being decertified by a government agency and
took a write-off. Following this announcement, shares of DHB
stock declined in value.
The first identified suit is styled "Moussa Yeroushalami and
NECA-IBEW Pension Fund (The Decatur Plan), et al. v. DHB
Industries, Inc., et al., case no. 05-CV-4296," filed in the
United States District Court for the Eastern District of New
York. The plaintiff firms in this litigation are:
(1) Abbey Gardy, LLP, 212 East 39th Street, New York, NY,
10016, Phone: 212.889.3700, E-mail: info@abbeygardy.com
(2) Ademi & O'Reilly, LLP, 3620 East Layton Ave., Cudahy,
WI, 53110, Phone: 866-264-3995, Fax: 414-482-8001, E-
mail: inquiry@ademilaw.com
(3) Bull & Lifshitz, 18 East 41st St., New York, NY, 10017,
Phone: 212.213.6222, Fax: 212.213.9405,
(4) Chitwood Harley Harnes LLP, 2300 Promenade II; 1230
Peachtree Street, N.E., Atlanta, GA, 30309, Phone:
(888) 873-3999, Fax: (404) 876-4476, E-mail:
attorney@chitwoodlaw.com
(5) Faruqi & Faruqi LLP, 320 East 39th Street, New York,
NY, 10016, Phone: 212.983.9330, Fax: 212.983.9331, E-
mail: Nfaruqi@faruqilaw.com
(6) Kirby McInerney & Squire LLP, 830 Third Avenue 10th
Floor, New York Ave, NY, 10022, Phone: 212.317.2300,
(7) Klafter & Olson LLP, 2121 K St., NW Suite 800,
Washington, DC, 20037, Phone: 202.261.3553, Fax:
202.261.3533, E-mail: info@klafterolsen.com
(8) 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
(9) Law Offices of Charles J. Piven, P.A., World Trade
Center-Baltimore,401 East Pratt Suite 2525, Baltimore,
MD, 21202, Phone: 410.332.0030, E-mail:
pivenlaw@erols.com
(10) Law Offices of Marc Henzel, 273 Montgomery Ave., Suite
202, Bala Cynwyd, PA, 19004, Phone: 610.660.8000, Fax:
610.660.8080, E-mail: mhenzel182@aol.com
(11) Lerach Coughlin Stoia Geller Rudman & Robbins LLP
(Melville), 200 Broadhollow, Suite 406, Melville, NY,
11747, Phone: 631.367.7100, Fax: 631.367.1173, E-mail:
info@lerachlaw.com
(12) 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
(13) Murray, Frank & Sailer LLP, 275 Madison Ave 34th Flr,
New York, NY, 10016, Phone: 212.682.1818, Fax:
212.682.1892, E-mail: email@murrayfrank.com
(14) Paskowitz & Associates, Phone: 800.705.9529, E-mail:
classattorney@aol.com
(15) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT,
06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail:
sn06106@AOL.com
(16) Schiffrin & Barroway LLP, 3 Bala Plaza E, Bala Cynwyd,
PA, 19004, Phone: 610.667.7706, fax: 610.667.7056, E-
mail: info@sbclasslaw.com
(17) Scott & Scott LLC, P.O. Box 192, 108 Norwich Avenue,
Colchester, CT, 06415, Phone: 860.537.5537, Fax:
860.537.4432, E-mail: scottlaw@scott-scott.com
(18) Spector, Roseman & Kodroff (Philadelphia), 1818 Market
Street; Suite 2500, Philadelphia, PA, 19103, Phone:
215.496.0300, Fax: 215.496.6610, E-mail:
classaction@srk-law.com
(19) Stull, Stull & Brody (New York), 6 East 45th Street,
New York, NY, 10017, Phone: 310.209.2468, Fax:
310.209.2087, E-mail: SSBNY@aol.com
(20) Wechsler Harwood LLP, 488 Madison Avenue 8th Floor, New
York, NY, 10022, Phone: 212.935.7400, E-mail:
info@whhf.com
(21) 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
FAR EAST BROKERS: Recalls Jack 'O Lanterns Due to Fire Hazard
-------------------------------------------------------------
In cooperation with the U.S. Consumer Product Safety Commission
(CPSC), Far East Brokers and Consultants, Inc., of Jacksonville,
Florida, is warning consumers about 48,500 Jack `O Lantern
buckets containing eight tea lights.
The Halloween decoration is intended for use with a single tea
light candle. If all eight candles included with the unit are
lit at the same time, it can generate too much heat and pose a
fire hazard. The firm has received three reports of fires when
consumers lit the eight candles in the bottom of the bucket
decoration. The reports include damage to carpets and a table,
other minor property damage and one-second degree burn.
The Jack `O Lantern buckets are tea light candleholders sold in
three colors: orange, cream and black. The buckets are about
6.25 inches high and about 7 inches in diameter at the top. They
have item number 14609-00 or 14609-02 written on a sticker
located on the bottom of the buckets. Grocery and discount
stores nationwide sold these Halloween decorations beginning in
July 2005 for between $2 and $3.
Consumers with these decorations are urged to use only a single
candle at a time. Also, ensure the wick of the tea light is
trimmed according to the instructions on the bottom of the
bucket and follow the other burning instructions. For more
information, contact Far East Brokers and Consultants, Inc.
toll-free at (877) 332-9006 between 9 a.m. and 5 p.m. ET Monday
through Friday.
GENERAL MOTORS: Shareholders Launch Securities Suits in S.D. NY
---------------------------------------------------------------
General Motors Corporation, General Motors Acceptance
Corporation and certain of the Company's officers and directors
face several securities class actions filed in the United States
District Court for the Southern District of New York.
The suits allege, inter alia, that the defendants issued or
caused to be issued materially false and misleading statements
to the investing public with respect to the Company's financial
performance and condition during the relevant time. In addition,
during the fourth quarter of 2004 and the first quarter of 2005,
defendants, with knowledge or reckless disregard of facts then
in their possession, disseminated materially false and
misleading projections, lacking in reasonable basis, with
respect to GM's first-quarter and year 2005 revenues, earnings
and cash flow.
During the Class Period, when the Company's debt ratings were
materially inflated by defendants' materially false and
misleading statements and omissions, defendants caused GM to
issue more than $18 billion in debt securities. When the true
facts finally began to come out at the end of the Class Period,
the price of GM stock, which had closed at $32.71 on March 15,
2005, declined by $4.57 per share, or 14%, to close at $28.14
per share on March 16, 2005. The prices of the Company's debt
securities also declined in the market.
The first identified complaint in the litigation is styled
"Folksam Asset Management, et al. v. General Motors Corporation,
et al., case no. 05-CV-8088," filed in the United States
District Court for the Southern District of New York, under
Judge Richard M. Berman. The plaintiff firms in this litigation
are 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;
and Murray, Frank & Sailer LLP, 275 Madison Ave 34th Flr, New
York, NY, 10016, Phone: 212.682.1818, Fax: 212.682.1892, E-mail:
email@murrayfrank.com.
GRANT THORNTON: Chief Says Firm Can Withstand Refco's Collapse
--------------------------------------------------------------
Grant Thornton, the accountant facing a class action suit over
its role as auditor to Refco, Inc. is insisting that it had
ample resources to withstand the meltdown of the world's largest
futures brokerage, The Telegraph.co.uk reports.
Currently, Grant Thornton is the number five accounting firm
though it is attempting to position itself as an alternative to
the "Big Four", a strategy that could be damaged if it becomes
tainted by Refco.
In a recent interview, chief executive Edward Nusbaum said that
the firm was well capitalized and had liability insurance it
could tap to cover its legal expenses. He told Telegraph.co.uk,
"We anticipate the legal costs will be expensive, as they are in
every case. But Grant Thornton is very sound financially and we
anticipate any legal costs will be absorbed by the firm. We have
insurance if needed."
In addition, Mr. Nusbaum told Telegraph.co.uk, "We want to find
out exactly what happened. I think companies are judged by how
they deal with these situations, because, even with Sarbannes-
Oxley, there's no guarantee of catching all fraud."
In August, the firm noted Refco's poor accounting controls at
the time of the broker's IPO. It is also understood that it was
Grant Thornton accountants who first raised questions with Refco
in September that prompted executives at the brokerage to look
into transactions with hedge fund Liberty Corner. The questions
center on what appeared to be an unusually high level of
interest that Liberty owed Refco on a debt that had not been
closed out. Refco subsequently placed chief executive Phillip
Bennett on leave after uncovering the $430m debt to the company.
Since then Mr. Bennett has been charged with securities fraud.
HOLIDAY INN: Settles AZ AG's Pregnancy Discrimination Complaint
---------------------------------------------------------------
Tucson Holiday Inn Express hotel located on West Grant Road,
Tucson, Arizona reached a settlement for the complaint filed by
state Attorney General Terry Goddard, alleging the hotel
violated the civil rights of a former front desk clerk who was
fired after notifying her general manager she was pregnant. The
settlement was approved by Pima County Superior Court Judge John
Davis.
In April 2004, the employee informed her supervisor she was
pregnant, and was terminated days later. The Attorney General's
investigation found insufficient evidence to substantiate the
reason the hotel gave for firing the employee, and in September
2005 the Attorney General's Office issued a "Reasonable Cause
Determination" notice allowing the lawsuit to be filed.
"This case represents one of the more insidious forms of sex
discrimination," Mr. Goddard said. "The Arizona Civil Rights Act
is intended to prohibit this kind of practice."
The settlement also includes an injunction against the hotel
prohibiting any further discrimination against any employee on
the basis of sex. If the hotel violates this injunction any time
over the next three years, the hotel will be fined $20,000 for
the first offense, and $25,000 for any additional violations.
The consent decree also requires the hotel to:
(1) Pay the former employee back pay of $9,500.
(2) Adopt a sex discrimination policy within the next 30
days. The policy must prohibit sex discrimination and
should clarify that women affected by pregnancy,
childbirth, or related medical conditions shall be
treated equally for all employment related purposes.
The Arizona Attorney General's Civil Rights Division
must approve the policy.
(3) Train current managers and supervisors on the new sex
discrimination policy within the next 45 days.
(4) Pay the Attorney General's Office Civil Rights Division
$1,500 to monitor compliance.
The Arizona Civil Rights Act prohibits discrimination in
employment on the basis of race, color, religion, sex, national
origin, age and physical and mental disability. Any person who
believes he or she has been discriminated against may file a
charge with the Attorney General's Office. For more information,
visit the Attorney General's Web site: http://www.azag.gov.
HUTCHINSON TECHNOLOGY: Shareholders File Fraud Suits in MN Court
----------------------------------------------------------------
Hutchinson Technology, Inc. faces several securities class
actions filed in the United States District Court for the
District of Minnesota, under Judge Michael J. Davis. The suit
was filed on behalf of purchasers of the Company's securities
from October 4,2004 to August 29,2005.
The suits uniformly allege that the Company violated federal
securities laws. Specifically, the Company made positive
statements concerning its history of beating guidance issued by
the defendants and its success in manufacturing and marketing
its products. Defendants' statements were materially false and
misleading because defendants overstated the demand for Company
products, defendants failed to disclose that a shift in the mix
of products toward new, low-yielding products was negatively
impacting the Company's business and prospects, and defendants
failed to disclose that they had not implemented an adequate
system of internal controls.
As a result of the foregoing, defendants' statements that the
Company was operating according to plan, and their guidance
lacked any reasonable basis in fact. While, the price of Company
common stock was artificially inflated, defendants sold their
personally-held shares of Company stock for more than $12.1
million in proceeds.
The complaint further alleges that on or around August 30, 2005,
the Company issued a press release announcing lowered guidance
for the fourth quarter 2005. The Company stated that earnings
would be $0.05 per share, compared to previous guidance of
$0.65, and that the Company's gross margins would fall as low as
19%, significantly lower than the Company's previous estimate of
as high as 30%. On this news, Company stock fell $5.35 per
share, or 17%, from its closing price of $31.51 on August 29,
2005, to $26.16 on August 30, 2005.
The first identified complaint in the litigation is styled
"Robert J. Averdick, et al. v. Hutchinson Technology, Inc., et
al., case no. 05-CV-2095," filed in the United States District
Court for the District of Minnesota under Judge Michael J.
Davis. The plaintiff firms in this litigation are:
(1) Dyer & Shuman, LLP, 801 East 17th Avenue, Denver, CO,
80218-1417, Phone: 303.861.3003, Fax: 800.711.6483, E-
mail: info@dyershuman.com
(2) Federman & Sherwood, 120 North Robinson, Suite 2720,
Oklahoma City, OK, 73102, Phone: 405-235-1560, E-mail:
wfederman@aol.com
(3) 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
(4) Law Offices of Charles J. Piven, P.A., World Trade
Center-Baltimore,401 East Pratt Suite 2525, Baltimore,
MD, 21202, Phone: 410.332.0030, E-mail:
pivenlaw@erols.com
(5) Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San
Diego), 655 West Broadway, Suite 1900, San Diego, CA,
92101, Phone: 619.231.1058, Fax: 619.231.7423,
(6) Lockridge, Grindal, Nauen P.L.L.P., Suite 301, 660
Pennsylvania Avenue Southeast, Washington, DC, 20003-
4335, Phone: 202.544.9840, Fax: 202.544.9850,
(7) 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
(8) Schatz & Nobel, P.C., 330 Main Street, Hartford, CT,
06106, Phone: 800.797.5499, Fax: 860.493.6290, E-mail:
sn06106@AOL.com
(9) Schiffrin & Barroway LLP, 3 Bala Plaza E, Bala Cynwyd,
PA, 19004, Phone: 610.667.7706, Fax: 610.667.7056, E-
mail: info@sbclasslaw.com
IMERGENT INC.: Investors File New Suit Over Bogus Earning Report
----------------------------------------------------------------
Angry investors of iMergent, Inc. (AMEX: IIG) recently filed a
new lawsuit over four years' worth of recently unveiled bogus
earnings reports, The Salt Lake Tribune reports.
Filed in the U.S. District Court for the District of Utah, the
complaint claims that the Orem-based e-commerce company which
sells its Web business software and consulting services in
seminar settings, violated accounting standards and federal law
by issuing "materially inaccurate financial results" for fiscal
years 2002, 2003, 2004 and 2005.
According to the suit, those reports triggered trading of
iMergent shares at "artificially inflated levels," the suit
says. When the company issued a statement on August 19 admitting
the earnings were wrong, shareholders saw their stock - which
had fetched $26.50 in February - tumble 12 percent to $8.11.
The federal lawsuit, a proposed class action, named Grant
Thornton, iMergent's recently fired independent auditor as a
defendant, along with iMergent CEO Donald Danks and Robert
Lewis, chief financial officer.
Aside from accusations of fraudulent accounting practices and
reporting, the suit, which was filed before U.S. District Judge
Dale Kimball also alleges that iMergent repeatedly misled
shareholders about the company's fiscal health based, in part,
on improper and premature recognition of revenues. The suit
also claims Grant Thornton "knew or recklessly failed to take
steps [to] . fully and fairly disclose the situation to the
investing public."
The plaintiffs' Salt Lake City attorney C. Richard Henriksen Jr.
argues that had investors known iMergent's "true performance,
business practices, future prospects and true value," they would
not have bought the over-priced shares.
The suit is styled, "Hyman v. Imergent et al, Case No. 2:05-cv-
00861-DAK," filed in the United States District Court for the
District of Utah, under Judge Dale A. Kimball. Representing the
Plaintiff/s is C. Richard Henriksen, Jr. of HENRIKSEN &
HENRIKSEN, 320 S 500 E, SALT LAKE CITY, UT 84102, Phone:
801-521-4145, E-mail: hhlaw@sisna.com.
INTERNATIONAL COMFORT: Recalls Furnaces, AC Units For Fire Risk
---------------------------------------------------------------
In cooperation with the U.S. Consumer Product Safety Commission
(CPSC), International Comfort Products LLC, of Lewisburg,
Tennessee is voluntarily recalling about 28,700 certain Packaged
Gas Furnace and AC Units.
According to the manufacturer, the unit's control board can
ignite and, in certain units, can result in the ignition of
flammable material adjacent to the unit. The firm has received
three reports of minor property damage. There are no reports of
injuries.
The recall involves certain packaged gas furnace and air
conditioning units sold under the brand names Airquest,
Arcoaire, Comfortmaker, Heil, Keeprite, Kenmore, ICP Commercial,
and Tempstar. The recall includes configurations of "A" chassis
units with 3-ton or 5-ton cooling capacity, manufactured between
the 41st week of 2000 and the 26th week of 2003. The model and
serial numbers are printed on the unit's rating plate. The
rating plate is on the exterior of the unit, on the right side
(as viewed when facing an installed unit). Contact the firm to
check if your model and serial number of your unit is included
in the recall.
Manufactured in the United States, the units were sold at all
heating, ventilation, and air conditioning dealers and
contractors nationwide between October 2000 and September 2005.
As a remedy, consumers with recalled units will receive a free
replacement control board and capacitor installed.
Consumer Contact: For more information, contact ICP at
(800) 649-4706 anytime, or visit the ICP Web site:
http://www.icpusa.com.
LONG JOHN: Arbitrator Certifies Class in FLSA Arbitration Demand
----------------------------------------------------------------
The arbitrator in the proceeding filed against Long John
Silver's restaurant chain certified a class of the Company's
restaurant general managers (RGMs) and assistant restaurant
general managers (ARGMs) employed between December 17, 1998, and
August 22, 2004, on claims based on the Fair Labor Standards Act
(FLSA).
On December 19, 2003, a demand for arbitration was filed with
the American Arbitration Association (AAA) pursuant to the AAA
Supplementary Rules for Class Arbitrations on behalf of former
Company managers Erin Cole and Nick Kaufman, who reside in South
Carolina. Claimants in the Cole Arbitration demand a class
arbitration on claims that deductions from the salaries of RGMs
and ARGMs violate regulations issued pursuant to the FLSA, and
thus the RGMs and ARGMs should be treated as the equivalent of
hourly employees who are eligible under the FLSA for overtime
for any hours worked over forty. The complaint in the Cole
Arbitration subsequently was amended to add an additional
allegation of deductions in violation of the FLSA salary basis
test, and to add Victoria McWhorter, another former manager, as
an additional claimant.
The Company has denied the claims and it is their position that
the claims of Cole, Kaufman, and McWhorter should be
individually arbitrated, it stated in a disclosure to the
Securities and Exchange Commission.
On June 15, 2004, the arbitrator in the Cole Arbitration issued
a clause construction award, ruling that the LJS Dispute
Resolution Program (DRP) does not preclude class arbitration.
The Company moved to vacate the clause construction award in the
United States District Court for the District of South Carolina.
On September 15, 2005, the federal court in South Carolina ruled
that it did not have jurisdiction to hear the Company's motion
to vacate. The Company has filed a motion for reconsideration
of that ruling, which is pending.
On September 19, 2005, the arbitrator also issued a class
determination award, certifying a class of the Company's RGMs
and ARGMs employed between December 17, 1998, and August 22,
2004, on FLSA claims, to proceed on an opt-out basis under the
AAA Class Rules. That class determination award has been stayed
for ninety days effective as of September 19, 2005 to permit the
Company to file a motion to vacate the class determination
award. The Company intends to file a motion to vacate the class
determination award.
In a filing with the Securities and Exchange Commission, the
Company said it believes that the DRP provides for individual
arbitrations. The Company further said it also believes that if
the Cole Arbitration proceeds on a class basis:
(1) the proceedings must be governed by the opt-in
collective action structure of the FLSA,
(2) a class should not be certified under the applicable
provisions of the FLSA,
(3) each individual should not be able to recover for more
than two years (and a maximum three years) prior to the
date they file a consent to join the arbitration and
(4) any class should be confined to South Carolina.
MILLER ESTATES: OR Residents Get Free Mediation in Fraud Suit
-------------------------------------------------------------
Complainants in an Oregon Department of Justice case against a
Medford manufactured housing dealer will be provided free
mediation services as part of a settlement filed in Jackson
County Circuit Court, state Attorney General Hardy Myers
announced in a statement. Named in an Assurance of Voluntary
Compliance are Miller Estate Sales, Inc. and its president Brad
Miller of Medford. The agreement admits no law violation.
Miller Estate residents filed complaints with Justice over the
last year alleging that Miller and his company had made verbal
promises concerning lot lines, driveways, and structural details
that were never fulfilled. Numerous residents also complained to
Justice about the company failing to provide purchase agreements
as required by Oregon law and rule.
"Buying a manufactured home often is the largest purchase that
Oregon residents will make in their lifetimes," Myers said.
"This case clearly points out the necessity for consumers to get
promises in writing especially in complex and expensive
transactions."
Over the length of the investigation, a Justice attorney and
investigator met with representative complainants, who live in
the Miller Estate manufactured housing park in Central Point,
and with representatives of the Miller Estates Homeowners
Association. Justice also discussed the situation with
executives of the Manufactured Home Owners of Oregon, Inc. and
staff of the Manufactured Dwelling Park Community Relations
Program of the Oregon Housing and Community Services Department.
Under the agreement, the company and its owner must change its
past business practices to comply with the state's consumer
protection laws, honor all representations made to consumers
during the course of a sale of a manufactured dwelling, use
sales forms that comply with Oregon statutes, and pay Justice
$20,000 for its consumer protection and education fund.
The settlement also names ten couples and four individuals, who
if they wish, may enter into mediation with the respondents,
free of any charge. Others, not named in the court order, may
request mediation services by contacting Justice at 1-877-877-
9392; Miller Estate Homeowners Association attorney Doug Gard of
Medford, (541) 779-4588; or Miller Estates attorney William
Deatherage of Medford, (541) 779-2333 by Thursday, October 6,
2005.
Mediation will be provided by staff from the Oregon Housing and
Community Services Department. In addition, if either party
terminates mediation procedures, consumers may choose binding
arbitration. Justice will choose the arbitrator and the company
will pay the full cost of arbitration. Consumers wanting more
information about buying a manufactured home may call the
Attorney General's consumer hotline at (503) 378-4320 (Salem
area only), (503) 229-5576 (Portland area only) or toll-free at
1-877-877-9392. Two brochures, Agencies and Information You
Should Know About Buying a Manufactured Home and Your
Manufactured Structure-Important Information About Owning a
Manufactured Home are available upon request. For more details,
contact Jan Margosian by Phone: (503) 947-4333 (media line only)
or by E-mail: jan.margosian@doj.state.or.us.
MINNESOTA: Minority Businesses Withdraws Suit, Vows to Re-file
--------------------------------------------------------------
Several black business owners who initiated a lawsuit over St.
Paul's minority contracting program and recently withdrew it say
that they intend to file it again shortly, The Pioneer Press
reports.
Eric Larson, an assistant city attorney told The Pioneer Press
that the move is a sign that the case, which attacks the city's
handling of minority contracts, is baseless. St. Paul does not
engage in "purposeful" race discrimination, Mr. Larson said of
the suit's allegations. He adds, "In our judgment, after a case
has gone through 10 months (and then is withdrawn) that shows
that the case was nonexistent or extremely weak."
Michael Thomas, who owns Cornerstone Community Realty & Mortgage
Services on Selby Avenue and is one of very few minority real
estate agents registered with the city, disagrees pointing out
that no developer has ever asked him to bid on a city contract
even though city rules require such outreach. Mr. Thomas told
The Pioneer Press, "There's a lot of strength to our suit. We
will be refiling it."
Though U.S. District Chief Judge James Rosenbaum dismissed the
suit just last week, the two sides differ on why. Stephen
Smith, a plaintiffs' lawyer who sought to bring the suit as a
class action, told The Pioneer Press that the problems were
procedural. Mr. Larson countered that more than 150 boxes of
information have been turned over and that no evidence of
intentional discrimination was found. He told The Pioneer Press,
"We can argue over whether we're doing a good job or not, but
that's not purposeful race discrimination."
The suit came amid a continuing debate over city contracting
practices. In June, the City Council approved two studies that
would audit minority contracting and examine whether the numbers
reflected the community at large, which have yet to get under
way though. In April, a Pioneer Press analysis found that
minority firms last year won barely 1 percent of the contracts
issued by the city or by developers doing business with the
city.
In October 2004, Mayor Randy Kelly set a goal that all "city-
generated" developments include 15 percent minority- and women-
owned contractors. Mayor Kelly stated recently that the city met
that goal during the second quarter of 2005 and called it a sign
that the city's outreach efforts are working.
Mr. Smith, the plaintiffs' lawyer, faulted the city's record
keeping and told The Pioneer Press that it is difficult to tell
whether developers are complying with the city's vendor outreach
program. By certifying minority- and women-owned businesses and
setting annual benchmarks for their participation in city
projects, the program is intended to prevent discrimination.
Mr. Smith further told The Pioneer Press, "We believe the city
has engaged in discriminatory practices that are longstanding by
failing to enforce its vendor outreach program."
MP3DOWNLOADCITY.COM: CA Court Halts Deceptive Site Advertising
--------------------------------------------------------------
A United States District Court judge has halted the deceptive
ads of a Web operation that claimed that membership in
MP3DownloadCity.com would allow users of peer-to-peer (P2P)
file-sharing programs to transfer copyrighted materials without
violating the law. The FTC will seek a permanent bar on the
deceptive claims, redress for consumers, and a requirement that
the defendant notify consumers who signed up for membership that
the programs he promotes to share copyrighted files may subject
them to civil or criminal liability.
According to the FTC, the defendant markets and sells a tutorial
and referral service that promotes the use of P2P file-sharing
software programs to download digital music, movies, and
computer games. Unlike a licensed subscription service, the
defendant's service does not provide its paying customers with a
license to download and share copyrighted music, movies, or
games. Instead, for $24.95, the defendant instructs consumers on
the use of free P2P file-sharing software provided by others,
such as Kazaa. According to the FTC's complaint, consumers are
lured to become members by deceptive claims that subscribing to
the defendant's service makes P2P file sharing legal. Internet
ads for the service make claims such as "AND BEST OF ALL PEOPLE
ARE NOT GETTING SUED FOR USING OUR SOFTWARE. YES! IT IS 100%
LEGAL;" "Why Are We The #1 Free MP3 Music Download Site? .
Download and Watch DVDs and Movies Still in Theaters;" and "Rest
assured that File-Sharing is 100% legal."
According to the FTC complaint, the defendant's customers who
use P2P file-sharing programs to download copyrighted material,
or who make it available to others, without the copyright
owner's permission, are engaged in copyright infringement and
could face civil and criminal liability.
The FTC charged that the defendant violated the FTC Act by
falsely claiming that membership in its service made P2P file
sharing legal. The FTC has asked the court to order a permanent
halt to the deceptive claims, order the defendant to pay
consumer redress or to give up his ill-gotten gains, and notify
customers that they could face civil and criminal liability. A
hearing to extend the court's temporary ban on defendants'
deceptive claims is scheduled for October 21, 2005.
The defendant in the case is Cashier Myricks Jr., doing business
as MP3downloadcity.com, based in Los Angeles, California.
The Commission vote to authorize staff to file the complaint was
3-0, with Commissioner Jon Leibowitz not participating. The
complaint was filed in the U.S. District Court for the Central
District of California. The FTC has published a consumer alert,
"P2P File Sharing: Evaluating the Risks," that is available at:
http://www.ftc.gov/bcp/conline/pubs/alerts/sharealrt.htm"
The Commission wishes to acknowledge the assistance of The
Center for Democracy and Technology in this matter.
Copies of the complaint 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 Claudia Bourne Farrell,
Office of Public Affairs by Phone: 202-326-2181 or Matthew
Daynard, Bureau of Consumer Protection by Phone: 202-326-3291,
or Jennifer Brennan, Western Region Los Angeles by Phone:
310-824-4334 or visit the Website:
http://www.ftc.gov/opa/2005/10/mp3.htm.
OHIO: Residents Near Warren Landfill Files Suit V. Several Firms
----------------------------------------------------------------
Fourteen Ohio residents are suing more than half a dozen Ohio
trucking firms and a Portland trucking company for alleged
pollution at the local Warren landfill, endangering their health
through hazardous trash fumes, The Hartford Courant reports.
The class action was filed in the Court of Common Pleas in
Trumbull County, Ohio, on behalf of the Ohioans and all those
similarly impacted by the dump. The suit seeks more than $15,000
in damages for sicknesses that the residents say were caused by
the pollution, cleanup of their properties and an injunction to
prevent further hazardous dumping.
The neighbors of the landfill in Warren, Ohio, told The Hartford
Courant that it regularly discharges pollutants, air
contaminants, noise, dust, debris and noxious odors. The
landfill takes in construction and demolition debris and has
already been sued by other residents, according to an Ohio news
report.
The suit names as one of the defendants Mid-State Recovery, LLC
of 285 Airline Ave. Ted Vozzella, the company's manager, told
The Hartford Courant that the firm was sold last August to new
owners, and since then the company has not used the Warren, Ohio
landfill. Other defendants named in the suit include: Warren
Hills LLC, formerly operating the dump; Warren Recycling Inc.,
operating a transfer station for municipal waste there; the city
of Warren, where the facility is located; T&G Enterprises and
Waste Transfer Systems LLC, former facility property owners; New
York and Massachusetts waste companies; and a New York trash,
Waste Management Inc. of New York.
A spokesman for Warren Recycling told the Courant that Warren
Hills LLC is no longer operating the facility and is out of
business as well.
According to the suit, since February 2002, the Ohio
Environmental Protection Agency has received over 800 complaints
from residents concerning the contaminants emitted from the
dump. Two years ago, EPA records revealed, Warren Hills and
Warren Recycling agreed to pay a $30,000 civil penalty for
violations in emitting methane gas and hydrogen sulfide gas and
fumes from fires as well as leaching of pollutants. The suit
states that since at least 2004, Mid-State Recovery paid Warren
Hills to dispose of construction and demolition debris at the
landfill.
PACIFIC HEALTH: To Pay $1M Civil Penalties For Consumer Fraud
-------------------------------------------------------------
A King County Superior Court in Washington judge ordered Pacific
Health Center in Bellevue and its president, Monte Kline, to pay
$1 million in civil penalties for violating the Consumer
Protection Act by engaging in the practices of medicine,
acupuncture and naturopathy without a license, state Attorney
General Rob McKenna announced in a statement dated September
30,2005.
In addition to the civil penalties, Kline and Pacific Health
Center were ordered to pay more than $700,000 in restitution for
consumers and attorney's fees.
The order came after the Attorney General's Office and the state
Department of Health sued the defendants for engaging in the
unlicensed practices and for making unsubstantiated medical
claims about the effectiveness of "electrodermal testing" to
diagnose certain health conditions.
"This court order is a victory for consumers who were misled by
Monte Kline and his business, Pacific Health Center," Attorney
General Rob McKenna said. "Kline deceptively violated the law by
practicing medicine and naturopathy without a license. We
believe Pacific Health Center administered its 'electrodermal
testing' to at least 5,000 consumers since Kline began business
in Washington. Patients have a right to fully understand their
health care providers' qualifications and expect that they have
met state licensing requirements.
"Assistant Attorneys General Paula Selis and Cheryl Kringle and
the members of the Consumer Protection division who supported
them deserve praise for their outstanding work on this case,"
McKenna continued
The court order prohibits Pacific Health Center and Kline from
representing that they practice any form of medicine or other
licensed health care, but does not prohibit them from providing
nutritional advice.
A Court of Appeals commissioner has granted a partial stay of
the order pending appeal by Pacific Health Center and Kline, but
only if Pacific Health Center and Kline post a $200,000 bond to
cover any additional restitution payments or attorney fees
should their appeal be unsuccessful. The bond has not yet been
posted.
The court decisions address many of the allegations brought by
the Attorney General's Office lawsuit and the Attorney General
has moved to dismiss the remaining causes of action without
prejudice.
The Attorney General's Office Consumer Protection Division sued
Pacific Health Center and Kline in 2003 for violations of the
Consumer Protection Act. In addition to the unauthorized
practice claims, the office alleged that the defendants
misrepresented Kline's credentials to offer medical advice to
consumers and failed to substantiate the diagnostic capabilities
of the "electrodermal testing" device. Mr. Kline has heavily
advertised his health center and its services on the Internet,
radio broadcasts and seminars and made claims he can help those
suffering from high cholesterol, depression, hypertension,
allergies, arthritis, immune deficiencies and osteoporosis,
among other conditions.
Mr. Kline claimed "electrodermal testing" could identify
ailments such as allergies, nutrient deficiencies, energetically
weak organs, toxicities, and the root cause of disease.
According the Pacific Health Center's Web site, the procedure
involves taking "resistance readings" on the surface of the
skin. In addition to the "electrodermal testing," Mr. Kline
offered a treatment regimen that involved individualized diets
based on the test results. The regimen included health
supplement products that he sold. Mr. Kline, who has referred
himself as Dr. Monte Kline in his radio shows, does not have a
doctorate of medicine.
For more information contact Kristin Alexander, Public
Information Officer, by Phone: (206) 464-6432, by E-mail:
kalexander@atg.wa.gov.
PIZZA HUT: Continues to Face Lawsuit For FLSA Violations in CA
--------------------------------------------------------------
Pizza Hut, Inc. continues to face a class action filed in the
United States District Court for the District of California,
alleging violations of the United States Fair Labor Standards
Act (FLSA).
The suit, entitled "Coldiron v. Pizza Hut, Inc.," was filed on
August 13, 2003, alleging that the Company's current and former
Pizza Hut Restaurant General Managers (RGMs) were improperly
classified as exempt employees. There is also a pendent state
law claim, alleging that current and former RGMs in California
were misclassified under that state's law. Plaintiff seeks
unpaid overtime wages and penalties.
On May 5, 2004, the District Court granted conditional
certification of a nationwide class of RGMs under the FLSA
claim, providing notice to prospective class members and an
opportunity to join the class. Approximately 12 percent of the
eligible class members have joined the litigation as of June 29,
2005 (although a number were later stricken by the District
Court, as described below). Once class certification discovery
is completed, the Company intends to challenge the propriety of
conditional class certification.
On July 20, 2004, the District Court granted summary judgment on
Ms. Coldiron's individual FLSA claim. The Company believes that
the District Court's summary judgment ruling in favor of Ms.
Coldiron is clearly erroneous under well-established legal
precedent. Ms. Coldiron also filed a motion to certify an
additional class of current and former California RGMs under
California state law, a motion for summary judgment on her
individual state law claims and a motion requesting that the
District Court enter summary judgment on the damages that FLSA
class members would be due upon successful prosecution of the
class-wide litigation. The Company opposed all three motions.
On April 1, 2005, the District Court issued an order granting
Ms. Coldiron's motion to certify a California state law class.
On April 15, 2005, the Company filed a petition for review of
that order by the United States Court of Appeals for the Ninth
Circuit. On May 5, 2005, the District Court sua sponte filed an
order extending the opt-in cut-off date in the FLSA action until
September 1, 2005. On May 13, 2005, the District Court sua
sponte amended its April 1, 2005 order to identify the
California class claims and appoint class counsel. On May 27,
2005, the Company filed a petition for review of the amended
order by the Ninth Circuit. The Ninth Circuit has not yet ruled
on either petition.
On June 30, 2005, the District Court granted the Company's
motion to strike all FLSA class members who joined the
litigation after July 15, 2004. The effect of this order is to
reduce the number of FLSA class members to only approximately 87
(or approximately 2.5% of the eligible class members).
The suit is styled "Ann Coldiron v. Pizza Hut Inc., et al., case
no. 2:03-cv-05865-TJH-Mc," filed in the United States District
Court for the Central District of California under Judge Terry
J. Hatter. Representing the plaintiffs are Bicvan T. Brown, Rex
Hwang, Justian Jusuf, Gregory G. Petersen, and H. Ernie Nishii
of Castle Petersen and Krause, 4675 MacArthur Court, Suite 1250
Newport Beach, CA 92660, Phone: 949-417-5600, E-mail:
justian@cpk-law.com; and Catherine Starr of Catherine Starr Law
Offices, 24325 Crenshaw Blvd, Suite 211, Torrance, CA 90505
Phone: 310-539-4806, Fax: 310-539-2454.
Representing the Company are:
(1) Andra Barmash Greene, Layn R. Phillips, Henry Shields,
Jr. and Bruce A. Wessell, Irell & Manella, 1800 Avenue
of the Stars, Suite 900, Los Angeles, CA 90067-4276,
Phone: 310-277-1010, fax: 310-203-7199, E-mail:
lphillips@irell.com, hshields@irell.com or
bwessell@irell.com
(2) George A McNamee, III, Richard S. Ruben, Ellen Laguerta
Uy, Paula Maxine Weber, Pillsbury Winthrop, 725 S
Figueroa St, Ste 2800, Los Angeles, CA 90017-5406,
Phone: 213-488-7100
SERONO INC.: Reaches Settlement For CA AG's Consumer Fraud Suit
---------------------------------------------------------------
The maker of a drug approved to treat an AIDS-related syndrome
will pay more than $704 million to the federal and state
governments to resolve criminal charges and civil allegations in
connection with illegal schemes to promote, market and sell its
drug, Serostim, California Attorney General Bill Lockyer
announced in a statement.
The maker of Serostim is Serono Inc., a Massachusetts-based
company that entered into the settlement agreements with the
U.S. Department of Justice and the Attorneys General of 43
states, including California. The result of Serono's scheme was
that California's Medi-Cal program paid too much in
reimbursement for prescriptions of the drug during a period from
1997 to 2004.
Pursuant to the criminal component of the settlement, Serono
entered a guilty plea in federal district court in Boston to
criminal charges that the corporation conspired to violate
federal Food and Drug Administration restrictions and conspired
to pay kickbacks to physicians and pharmacies. Under the plea
bargain, Serono will pay $136.9 million as a criminal fine to
the federal government.
The settlement is the product of a false claims lawsuit
initially filed by a whistle-blower in federal court. Soon
afterward in September 2001, Lockyer began working closely with
federal prosecutors in reviewing voluminous medical records
submitted by Serono to obtain authorization for the drug,
interviewing witnesses and issuing subpoenas. California's share
of the settlement totals $215.7 million, of which $108.5 million
will be used to reimburse the federal government for its share
of the state's Medicaid funding.
"Instead of promoting the health needs of those diagnosed with
AIDS, Serono allowed greed to drive a business agenda that
fraudulently ripped off millions from California's Medi-Cal
program," Mr. Lockyer said. "This settlement tells
pharmaceutical companies that there is a serious price to pay
when they get caught putting the bottomline ahead of quality
healthcare."
Serostim is approved by the FDA to treat AIDS wasting syndrome,
which is marked by the involuntary loss of significant body
weight and chronic weakness; and other forms of cachexia, a
wasting away of body fat and muscle caused by disease. Serostim
prescriptions are quite expensive, with a Medicaid reimbursement
price of approximately $6,000 per month. The suggested course of
treatment is three months, but many recipients use Serostim for
much longer.
In his lawsuit, Mr. Lockyer alleged that Serono illegally
marketed Serostim by:
(1) Promoting Serostim for uses not approved by the FDA,
including for lipodystrophy and body cell mass wasting.
(2) Using unapproved software as part of tests to determine
if patients were appropriate candidates to use
Serostim. The states alleged the software resulted in
more patients being prescribed the drug than what was
appropriate.
(4) Engaging in illegal kickbacks to pharmacists and
physicians in an effort to increase prescriptions. The
kickbacks included payments and trips, including to
Cannes, France.
The civil settlements with Serono require the company to enter
into a Corporate Integrity Agreement with the Office of the
Inspector General in the U.S. Department of Health and Human
Services to ensure future compliance with the law. Serono is
also required to cooperate with California and other states in
any related investigations that may ensue.
Serono, Inc. and Serono Laboratories are U.S. affiliates of the
Swiss corporation Serono S.A.; both have their principal place
of business in Massachusetts. In addition to California, the
states of Florida, Maryland, Massachusetts, Missouri and New
York led the negotiations with Serono that resulted in the civil
settlement.
For more details, contact the Attorney General's office by
Phone: (916) 324-5500 or visit the Website: http://ag.ca.gov.
TRAFFIX INC.: Qwest Files Indemnification Claim For MN Lawsuit
--------------------------------------------------------------
Traffix, Inc. faces an indemnification claim filed by Qwest
Communications, Inc. relating to a class action filed against
Qwest in Minnesota, styled "Bindner v. LCI International Telecom
Corp. et al., District Court of Minnesota, County of Sibley,
Case No. C0-00-242."
In that action, plaintiffs claimed that from September 1998 to
July 1999, they were misled when they were solicited to change
their long distance carrier to Qwest. They asserted that they
were not told that they would have to stay at certain hotels and
pay their regular rates as part of a promotion involving free
airline tickets. The Company introduced the promotion ("Fly Free
America") to Qwest, and was retained by Qwest to operate the
telemarketing campaign pursuant to an Agreement between Qwest
and the Company. On May 2000, Qwest and the Company entered
into an agreement terminating the Agreement and settling the
amount due the Company (the May 2000 Agreement). The Agreement
and the May 2000 Agreement contain language that Qwest claims
obligates the Company to indemnify Qwest for the losses it
sustained by reason of this class action.
TXU CORPORATION: Shareholders Launch Securities Fraud Suit in TX
----------------------------------------------------------------
TXU Corporation faces a securities class action filed in the
United States District Court for the Northern District of Texas,
styled "Flaherty & Crumrine Preferred Income Fund Incorporated,
et al. v. TXU Corporation, et al., case no. 05-CV-01784." The
suit was filed on behalf of purchasers of the Company's
securities from September 15,2004 to October 13,2004.
According to a press release dated September 8, 2005, the
Complaint alleges that defendants violated Sections 10(b), 14(e)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, and common law fiduciary duties, by
purchasing certain Corporate Units (NYSE: TXU PrC) and PRIDES
(NYSE: TXU PrD) (collectively, "the Convertible Securities")
without disclosing its plan to dramatically increase the
dividend payout on TXU common stock upon completion of the
Tender Offer.
The complaint alleges that TXU in September 2004 made a self-
tender offer to purchase the Convertible Securities at a price
linked to the value of its common stock, without disclosing its
plan to dramatically increase the common stock's dividend payout
immediately following completion of the Tender Offer. Nine short
days after the Tender Offer expired, TXU adopted a 350% increase
in its common stock dividend, resulting in a 20% increase in the
common stock price. To keep the common stock price low during
the Tender Offer pricing period, however, TXU injected a false
air of uncertainty into the market concerning its plan to
increase the dividend, which enabled it to purchase the
Convertible Securities from Plaintiffs and other Class members
at a substantial and artificial discount.
The suit is styled "Flaherty & Crumrine Preferred Income Fund
Incorporated, et al. v. TXU Corporation, et al., case no. 05-CV-
01784," filed in the United States District Court for the
Northern District of Texas. Plaintiffs are represented by
Bonnett, Fairbourn, Friedman & Balint, P.C., 4041 N. Cental
Avenue, Suite 1100, Phoenix, AZ, 85012-3311, Phone:
602.274.1100.
UNION PACIFIC: Lawyer Files Suit in TX Over Texarkana Derailment
----------------------------------------------------------------
Attorney R. Gary Nutter of Texarkana, Texas initiated a lawsuit
against Union Pacific Railroad Company, alleging that a company
train operator fell asleep, causing a train derailment,
explosion and fire in which a woman was killed and hundreds of
homes were evacuated, The Associated Press reports.
At about 5 a.m. on October 15, Saturday, a Union Pacific train
coming from Chicago struck the back of another UP train coming
from Pine Bluff in a rail yard on the south side of Texarkana.
Eight cars derailed, and a tanker car containing propylene
exploded and fire broke out. Fearing more explosions and a toxic
cloud, officials evacuated residences and nursing homes in the
area and prepared to move up to 1,500 nearby jail inmates.
Police said the home of Pearlie Mae Marshall, 61, was destroyed
and Ms. Marshall died in the accident. In addition, 12 people
complained of respiratory problems. Residents were allowed to
return home late Saturday. The fire from the tank car burned
itself out by 1:30 a.m. Sunday, UP has said.
Though federal and local investigators have not speculated about
what caused the derailment, Mr. Nutter told The Associated Press
that his office learned "from word of mouth" over the last four
days that the train engineer fell asleep.
The suit, which seeks class action status, was filed in Miller
County Circuit Court on behalf of residents Troy H. Bradford and
Gloria Bradford and their business Books Etc. The suit charges
the Omaha, Nebraska-based company of negligence, trespass, and
causing a nuisance "in allowing toxic and hazardous chemicals"
into the community. The suit seeks an order requiring the
company to clean up any damage and pay unspecified monetary
compensation for personal injuries, evacuation and cleanup
costs, property loss, and lost income resulting from the
derailment.
Investigator Ted Turpin of the National Transportation Safety
Board told The Associated Press that the agency just finished
collecting data on the derailment and it would be nine months to
a year before releasing a probable cause. Mr. Turpin would not
comment on Mr. Nutter's claim.
UNITED STATES: Congress Approves Bill V. Fastfood, Obesity Suits
----------------------------------------------------------------
The Republican-controlled House of Representatives voted
recently to protect fast-food chains from lawsuits that blame
them for making people fat, The Associated Press reports.
Given the moniker, the "cheeseburger bill," or H.R. 554, the
measure stems from lawsuits accusing McDonald's of causing
obesity in tens of thousands of children. Congress and state
legislatures were asked by the food industry asked to protect it
from liability, and so far, 21 states have agreed.
In approving the measure, Rep. Mike Rogers, R-Mich. stated, "You
cannot litigate personal choices and lifestyles." In addition,
House Judiciary Committee Chairman James Sensenbrenner, R-Wis.,
pointed out that potential costs from the lawsuits threaten the
food industry and its 12 million employees and raise food prices
for consumers. "These suits would be laughable if they were not
so harmful," Rep. Sensenbrenner adds.
Winning approval through a 306-120 vote, the measure would
prevent class action lawsuits blaming restaurants and food
companies for weight gain or obesity. Though the House passed a
similar bill last year, the Senate ran out of time to act.
Government estimates revealed that two-thirds of American adults
are overweight, and nearly one-third are obese, while obesity
among children and teenagers more than doubled in the past 30
years. Critics of the bill contend that a better way to make
people responsible for how they eat is to require nutrition
information on menus and menu boards.
"But of course this silly legislative effort has nothing to do
with encouraging personal responsibility and everything to do
with pleasing a powerful and politically connected industry,"
Michael Jacobson, director of the Washington-based Center for
Science in the Public Interest told The Associated Press.
Food industry lobbyist, Hunt Shipman, though stated that
lawsuits against food companies are the wrong way to fight
obesity in America. Mr. Shipman, who is the executive vice
president of government affairs and communications for the Food
Products Association, told The Associated Press, "More energy
must be put into solving the problem of obesity, and less into
assigning blame for the purpose of collecting legal fees."
Courts have dismissed most obesity claims, but an appeals court
in New York reinstated one lawsuit against McDonald's earlier
this year, which till now is still pending.
Asbestos Alert
ASBESTOS LITIGATION: Japanese Landlords to Eradicate Asbestos
-------------------------------------------------------------
Officials of Japan's Ministry of Land, Infrastructure and
Transport will require landlords of residential buildings and
apartments to eliminate or contain sprayed asbestos, which is an
act that could influence sales and leases of secondhand homes,
The Asahi Shimbun reports.
At a Ministry meeting, officials drafted a report to revise the
law and clearly define the landlords' responsibility. The
proposed law will require owners of residential buildings to
remove or contain sprayed asbestos and asbestos-containing
sprayed rock wool that have been left exposed to people in rooms
and other areas.
Ministry Officials said that with the revised law, municipal
authorities will be able to ask residential building owners to
report on the use of sprayed asbestos, and can issue warnings
and even orders for the building owners to take preventive
measures. The revised law will also require landlords to include
information, which will be disclosed to the public, about
asbestos and preventive measures in their reports.
Under the existing Industrial Safety and Health Law, business
establishments such as offices and factories are required to
remove or contain the cancer-causing substance. However, laws
concerning asbestos use in existing residential buildings have
not yet been established.
In 1975, the use of sprayed asbestos was banned in principle
under regulations on preventing the spread of specified
hazardous chemical substances.
ASBESTOS LITIGATION: Aussie Univ. Settles Claim With Ex-Student
---------------------------------------------------------------
An unidentified Kew man, who claimed to have contracted
mesothelioma from asbestos exposure as a student at the former
Swinburne Technical College in Australia from 1972 to 1974,
reaches an out-of-court settlement with Swinburne University
worth hundreds of thousands of dollars, The Age reports.
Law firm Slater & Gordon sued Swinburne University in the
Supreme Court of Victoria on the man's behalf, seeking damages
for medical expenses, pain and suffering, and loss of income.
The 51-year-old man said that loose and pliable asbestos on the
ceilings of the Engineering Building, the Applied Sciences
Buildings and the canteen caused his illness.
In a statement, Swinburne University said although the case had
been settled, it hadn't conceded the plaintiff's condition arose
out of any asbestos exposure at Swinburne.
ASBESTOS LITIGATION: Organization Creates AUD200 Mil Payout Fund
----------------------------------------------------------------
WorkCover Queensland establishes an AUD200 million payout pool
to meet the dramatic rise in the number of workers claiming
compensation for mesothelioma and other asbestos-related
diseases, The Courier-Mail reports.
WorkCover CEO Tony Hawkins said he expected the number of claims
to surge past 300 this year and to keep rising. He added that,
in 2004, victims received a record AUD21.6 million in payouts.
WorkCover figures show that 225 sufferers received payouts last
financial year compared with 149 in 2003.
Mr. Hawkins said claimants were generally aged from 68 to 72,
although he related that a 53-year-old female teacher received
compensation.
Mr. Hawkins said the average mesothelioma payout was AUD375,000
compared with an average of AUD4000 to AUD5000 for other
WorkCover compensation claims. He said 85% of sufferers were
men. Around 70% of them had been employed in private industry.
The Company only keeps account of victims who contracted the
diseases in the workplace, such as the manufacturing and
building trades, power stations, hospitals, and the Qbuild
Department of Public Works. WorkCover does not insure hundreds
of others who have the disease, who breathed in asbestos dust
during home renovations.
Shirley White, president of the Queensland Asbestos Related
Disease Support Society, said the increase in the number of
people with the disease was "very scary," with the Society
gaining up to 10 new members a week.
ASBESTOS LITIGATION: Removal Firm Could Pay Maximum US$2M Fine
--------------------------------------------------------------
Elmira, NY-based Lambert's Asbestos Removal Service Inc, an
asbestos abatement firm, could receive a maximum fine of US$2
million and three years of probation if convicted for conspiracy
to violate the Clean Air Act, the Clean Water Act, and to commit
mail fraud, according to US Attorney Glenn Suddaby.
The indictment stated that the Company failed to notify the US
Environmental Protection Agency about asbestos removal work and
then completed the projects illegally.
No amount of exposure to asbestos, which can cause cancer and a
deadly lung disease, is safe.
As reported in the June 3, 2005 Class Action Reporter edition,
Lambert's General manager James Todd pleaded guilty in May 2005
to a similar conspiracy charge.
ASBESTOS LITIGATION: Fiji Govt. Warns of Future Asbestos Danger
---------------------------------------------------------------
Fiji's Ministry of Labor warns that thousands of residents in
Suva, the island nation's capital, could be at risk of suffering
from lung cancer in the future if no safety precaution is taken
in demolishing the roof of the Suva Municipal Market next year,
the Fiji Times reports.
Minister Kenneth Zinck said the market's roof contained
asbestos, a dangerous and lethal material used in building
insulation. He added, unfortunately, that many of Fiji's
structures constructed in the 1950s and early 1980s used the
asbestos-containing insulator because of its ability to resist
high temperatures and protect against any chemical reaction.
City Council Director Engineering Services Eroni Ratukalou said
the demolishing of the Suva Market was part of the Council's
redevelopment project. Mr. Zinck said it was good that the Suva
City Council was going to replace the asbestos roofing at the
Suva Market but those involved in the replacement process would
have to wear protective gear.
Those most at risk of getting lung cancer are those involved in
the demolition process of the roof because they are more exposed
to the toxic material, according to a Health and Safety Report
from the World Campaign against Asbestos.
However, City Council Director Health Nacanieli Kotoiwasawasa
said asbestos only became a risk when it was in dust form and
inhaled. He said the asbestos in the Suva Market Roof was still
intact and had shown no signs of old age or deterioration.
However, he agreed with Mr. Zinck that all precautionary
measures should be taken when demolishing the market.
ASBESTOS LITIGATION: HON Ready for 20% Jump in 2 years, Analyst
---------------------------------------------------------------
Goldman Sachs analyst Deane Dray thinks Honeywell International
Inc (NYSE: HON) is poised for a 20% jump in earnings over the
next two years, a sharp reversal from the steady declines of
2000 to 2003, Forbes reports.
In a note to clients, Mr. Dray said the Company has done a solid
job in bolstering its Specialty Materials business through
acquisition, while reorganizing Aerospace after missing out on a
set of Boeing 787 contracts.
"Two leading indicators, commercial jet deliveries and global
flying hours, indicate mid-to-high single digit organic growth
over the next several years," Mr. Dray said.
Mr. Dray thinks a strong aerospace market could kick start
Honeywell's lackluster share price, which is little changed
since early 2002. He also lauded the company's decision to sell
off most of its fiber production within the Specialty Materials
business, reducing exposure to big swings in raw materials
costs.
Mr. Dray sees ongoing litigation from asbestos and environmental
claims as the biggest threats to ground Honeywell's potential
takeoff. Reserves tied to those two legal issues, together with
ongoing restructuring costs, currently eat up about US$1 billion
annually, or about two-thirds of the company's cash flow.
Based in Morristown, New Jersey, Honeywell International Inc.'s
largest business segment, Honeywell Aerospace makes products
such as turbofan and turboprop engines and flight safety and
landing systems. Honeywell's Automation and Control segment,
includes home and industrial heating, ventilation, and
manufacturing process products. Through its Specialty Materials
segment, the Company also makes performance materials used in
semiconductors, polymers for electronics and fibers, and
specialty friction materials.
ASBESTOS LITIGATION: Japan's Asbestos-Linked Deaths to Reach 15T
----------------------------------------------------------------
In its first official estimate for asbestos, Japan's Environment
Ministry states that asbestos-related cancers will kill at least
15,000 people in the next five years, The Asahi Shimbun reports.
Ministry officials based their figure partly on studies that
indicated people dying of mesothelioma and other lung cancers
about 40 years after inhaling asbestos particles.
In 1995, the country's number of mesothelioma deaths was 500,
but the figure rose sharply to 953 in 2004. The Ministry expects
a further jump in the number of deaths, given the increase of
imported asbestos in the 1960s.
Officials stated that more than 1,000 people could die from
mesothelioma each year starting in 2006, including up to 1,500
in 2010. In total, 6,000 people could die of mesothelioma in the
next five years, the Officials added. The Ministry also
estimated about 4,100 deaths from other lung cancers by 2010,
about 70% of the figure for mesothelioma.
Based on studies by International Labor Organization
researchers, the Ministry said the number of lung cancer deaths
could actually be 1.6 times the figure for mesothelioma and came
up with a lung-cancer death figure of 9,600 by 2010. That means
that the total number of fatalities from mesothelioma or other
lung cancers in Japan by 2010 could reach 15,600, the Officials
said.
Ministry Officials said they will use the 15,000-figure for a
planned special measures law to cover medical costs for those
suffering from diseases caused by asbestos and offer payouts for
bereaved family members of asbestos victims. The figure will
also be used to determine a compensation fund scale to be
jointly set up by the Government and private companies that have
used asbestos.
ASBESTOS LITIGATION: Ill. Man Files Asbestos Lawsuit v. 4 Firms
---------------------------------------------------------------
Robert Blessing, a resident of Bloomington, Illinois who is
diagnosed with mesothelioma, files a civil lawsuit that blames
several companies for his contracting of the illness,
Pantagraph.com reports.
Mr. Blessing, who was exposed to asbestos in the 1950s when he
worked at the former Unarco asbestos plant on Bloomington's west
side, has sued Pneumo Abex Corp, Owens-Illinois Inc, Honeywell
International Inc, and the Metropolitan Life Insurance Co,
asserting they conspired to cover up asbestos' harmful effects.
Judith, Mr. Blessing's wife, is also a plaintiff in the case.
The lawsuit also alleges the Illinois Central Railroad Co of
negligence for failing to warn Mr. Blessing and other workers of
the dangers caused by asbestos transported in rail cars to the
former Unarco plant.
James Wylder, an attorney representing the Blessings, said
Blessing has an "aggressive tumor." He and his partner Jim
Walker of Walker & Wylder law firm have been filing asbestos
claims on behalf of former Unarco plant workers since 1975.
As mentioned in the October 7, 2005 Class Action Reporter
edition, Mr. Wylder and Mr. Walker represented the widow of a
former Unarco worker who was awarded more than US$5 million in
damages earlier in a case against Honeywell.
ASBESTOS LITIGATION: Hardie Urged to Clear Old Homes of Asbestos
----------------------------------------------------------------
Australia's Northern Territory communities want James Hardie
Industries NV, a building materials manufacturer, to shoulder
the cost of removing asbestos from old houses, ABC Financial
News reports.
Northern Territory's Local Government Association said some
regional communities want to renovate properties to be
demolished to deal with a chronic housing shortage. The
Association's Kerry Moir said community requests for funding to
remove the asbestos have already been considered by the Northern
Territory and Federal Governments.
"Rather than simply knock down houses that have got asbestos,
they're endeavoring to get some support from the Federal and
Northern Territory Governments to assist with funding to deal
with that asbestos problem, the removal of the asbestos
product," Mr. Moir said. "Now that isn't happening, so the next
step is to bring James Hardie in."
A James Hardie spokesman said the Company has not yet been
involved in asbestos products removal in communities before.
ASBESTOS LITIGATION: UK Widower Fights to Claim for Wife's Death
----------------------------------------------------------------
Widower Stewart Littlemore launched a desperate bid to claim
compensation after his wife of 34 years, Margaret, who died in
July 15 of lung cancer allegedly due to asbestos exposure,
Sunderland Today reports.
With support from 30-year-old son David and 20-year-old daughter
Natalie, Mr. Littlewood is appealing to anybody who knew or
worked with Mrs. Littlewood, or can confirm she was exposed to
asbestos dust, to come forward and help his family win justice.
Mr. Littlemore, 53, is certain that Mrs. Littlemore's death is
related to her job at Plessey Telecommunications, particularly
in factory four's assembly line, where she made telephone relay
switches in the late 60s and early 70s. The factory is now
closed for over a decade.
The couple had been planning an Italian dream holiday when 54-
year-old Mrs. Littlewood fell ill with chest pains and breathing
problems. Doctors at Newcastle's Freeman Hospital diagnosed her
with pleural mesothelioma, a fatal form of lung cancer related
to asbestos exposure.
Irwin Mitchell, a leading personal injury law firm, is helping
Mr. Stewart prepare a potential claim for compensation against
the Company. Solicitor Lucy Hindmarch said she is confident a
case can be brought if a source of asbestos exposure is found.
Plessey was established in the UK in 1917. The Company made its
presence known in South Africa in the early 1960s and listed on
the JSE in 1995. In 1998, after Dimension Data acquired Plessey,
Tellumat was established from former Plessey businesses as a
privately owned company.
ASBESTOS LITIGATION: Japan Govt. to Check Asbestos at 360 Sites
---------------------------------------------------------------
For the first time since 1995, Japan's Environment Ministry
declares that it will gauge airborne asbestos concentration
levels at 360 spots in 140 areas nationwide, The Japan Times
reports.
Ministry officials said that the findings would be used to
formulate steps to prevent the harmful fibers from spreading in
the air.
The areas of Amagasaki in Hyogo Prefecture, Oji and Ikagura,
both in Nara Prefecture are among the 140 areas in which health
problems are rampant among residents living near former asbestos
factories.
The Government stopped conducting asbestos surveys after the
1995 research indicated that concentration levels had fallen far
below set standards at 66 spots in 14 prefectures. The decision
to resume the surveys is a result of asbestos-linked health
problems recently becoming a major social issue.
ASBESTOS LITIGATION: Widow Receives Overdue Payment From UK Firm
----------------------------------------------------------------
Widow Olga Burton finally received engineering firm Chieftain
Group PLC's long overdue six-figure settlement for the death of
her husband, Charlie, due to asbestos exposure, the Evening
Chronicle reports.
The firm only paid out recently, following a three-year
compensation battle, after bowing to pressure from the Chronicle
and Mrs. Burton's lawyers Thompsons Solicitors.
A Newcastle County Court judge confirmed the settlement and
Chieftain was ordered to compensate Mrs. Burton by October 3.
Thompsons sent bailiffs to Chieftain on October 4 during an
inventory of the firm. The cash deadline was extended but again
Mrs. Burton did not receive payment. The bailiffs were set to
collect their cash from the firm but Chieftain was granted a
further 28 days to pay.
Helen Marr of Dickinson Dees, Chieftain's solicitors, said, "My
Client offers its deepest sympathy to Mrs. Burton in relation to
the death of her husband. I am pleased to report that settlement
has been made directly by our client's insurers. The payment has
been made well within the time frame allowed by the Court."
Mr. Burton died when he was just 46, only nine months after he
was diagnosed with mesothelioma. He worked for Chieftain from
1985 to 1988 as an asbestos stripper in which he did not realize
he was being exposed to the deadly asbestos fibers.
Mr. Burton started proceedings against Chieftain in 2002 after
he found out he was dying. The Company settled out-of-court on
September 18, 2002, a day before the case was due to go to
trial.
Established in 1979, Newcastle, UK-based Chieftain Group PLC
(London: CFT) is an industrial multi-service provider of
insulation, scaffolding, ship and offshore platform outfitting,
asbestos survey and removal, pipe fabrication and erection,
sheet metal and general fabrications, and power services for the
construction industry.
ASBESTOS LITIGATION: Metso Corp. Notes 124 Claims Still Pending
---------------------------------------------------------------
Metso Corp divulged that as of January 31, 2005, there had been
a total of 350 complaints alleging asbestos injuries filed in
the United States in which a Metso entity is one of the named
defendants, according to a report submitted to the Securities
and Exchange Commission.
Where a given plaintiff has named more than one viable Metso
unit as a defendant, the cases are counted by the number of
viable Metso defendants. Of these claims, 124 are still pending
and 226 cases have been closed. Of the closed cases, two were by
summary judgment, 168 were dismissed, and 56 were settled.
For the 56 cases settled the average compensation has been
US$539 per case. The outcome of the still pending cases is not
expected to materially deviate from the outcome of the previous
claims. Hence, management believes that Metso has no material
asbestos related liability in the United States.
Based in Helsinki, Finland, Metso Corp (NYSE: MX) makes fiber
and paper machinery, rock crushers, and automation and control
products for the paper and packaging, construction, and mining
industries. The Company also manufactures equipment for
processing fiber and making panel board and other products.
ASBESTOS LITIGATION: Congoleum Lawyers Had Conflict of Interest
---------------------------------------------------------------
The US Court of Appeals for the Third Circuit in Philadelphia
ruled that Washington, DC-based law firm Gilbert, Heintz &
Randolph, which represented Congoleum Corp (AMEX: CGM), had a
conflict of interest when it advised the flooring materials
manufacturer on resolving their asbestos claims, The New York
Times reports.
The Court concluded that Congoleum, which is in bankruptcy as a
result of its asbestos liability, should not have hired Gilbert,
Heintz & Randolph.
Gilbert, Heintz & Randolph, also called as GHR, also had worked
in other asbestos cases with one plaintiff law firm, New York,
NY-based Weitz & Luxenberg, which represented people with claims
against Congoleum.
The recent decision came two months into a separate New Jersey
state court proceeding in which insurance companies have argued
that they should not have to finance a US$500 million trust that
would be part of Congoleum's reorganization plan to put asbestos
liability behind it.
Tancred Schiavoni, a lawyer of O'Melveny & Myers that represents
several insurance companies, said the Court decision helped to
weaken Congoleum's reorganization plan and was a victory for the
insurance companies. He said that it was possible that GHR could
be forced to pay back the fees it received from Congoleum.
According to the decision, GHR was retained in February 2003 to
advise Congoleum in agreements with asbestos claimants as part
of what is known as a prepackaged Plan of Reorganization under
Chapter 11.
When a company tries to put together such a filing to cope with
asbestos liability, it essentially tries to reach agreement with
as many claimants as possible, in advance, on how much money
must be set aside to compensate claimants. The goal is to ensure
a quick reorganization.
A bankruptcy judge approved Congoleum's retention of GHR early
in 2004. However, the judge did not allow Congoleum to hire
Kenesis Group, a Washington company that had screened asbestos
claims against Congoleum, because the majority owner of Kenesis
was GHR.
In reversing the decision on the retention of GHR, the appellate
court wrote that the bankruptcy court should look carefully at
how prepackaged bankruptcy agreements are reached.
ASBESTOS LITIGATION: UK Firm Fined GBP35T for Unlawful Disposal
---------------------------------------------------------------
The Southern Derbyshire Magistrates' Court fined a skip hire
company GBP35,000 after an environmental health officer
discovered asbestos in one of its skips in a depot in Acton
Close, Long Eaton, the Evening Telegraph reports.
Prosecutor Patrick Howell said the Environment Agency officer
returned and found cement-bonded asbestos.
Cranmer Street, Long Eaton-based All Away Skip Hire, a one-man
business run by Rodney Beecham, pleaded guilty to disposing
special waste in a manner likely to cause environmental
pollution on or around January 28, 2005.
The Court also ordered the Company, which also admitted causing
or permitting controlled waste to be deposited and failing to
provide five consignment notes before the asbestos was moved to
pay GBP1,348.
Judith Armstrong, mitigating, on All Away Skip's action, said,
"It's been a matter of omission, not an intentional act."
ASBESTOS LITIGATION: UK Distillery Fire Blows Hazard to Vicinity
----------------------------------------------------------------
A major fire at the Warrington, UK distillery G&J Greenalls blew
potentially deadly asbestos fibers onto nearby homes and
gardens, thereby raising residents' fears, The Liverpool Daily
Post reports.
Abatement-specializing contractors have now been brought in to
clear debris. As a safety precaution, a 500-meter exclusion zone
was set up around the site on Loushers Lane, around a mile from
Warrington town center, with residents moving out of their
homes.
Bob Williams, Warrington Council's Head of Communications,
issued a warning to residents to avoid disturbing the dust,
which can be dangerous if inhaled.
A spokeswoman for Cheshire Fire Service said the factory had
suffered four separate fires, causing extensive damage.
Hotel chain De Vere Group PLC (London: DVR), which owns the gin
and vodka-producing plant, said the fire had caused "severe
damage," but that essential parts of the distillery remained
intact.
Company spokeswoman Margaret Henriksson said, "The site is still
in the hands of the fire brigade and the police. Some of the
site is still smoldering and they're making it safe. Some of our
operations team have been on site and the stillhouse where the
gin and vodka is made, and the watercoolers, appear at the
moment, to be unscathed."
ASBESTOS LITIGATION: UK Pool Shut Down After Asbestos Discovery
---------------------------------------------------------------
The detection of asbestos in the pipes of the Cascades Leisure
Pool and Health Suite Complex forced the temporary closure of
the Tewkesbury complex.
The Tewkesbury Borough council, which runs the complex, says
small traces of asbestos fibers have been found on paint peeling
off the ceiling above the pool.
While officers say there is no danger to the public, they need
to close the complex to allow a an asbestos-abatement firm to
deal with the GBP35,000 problem. The pool complex will remain
shut until at least mid-November.
Users will have to travel to pools in Pershore, Cheltenham or
Gloucester while the work is carried out at the 35-year-old
center.
ASBESTOS LITIGATION: Cape PLC Continues GBP40 Mil Claims Scheme
---------------------------------------------------------------
Thermal insulation and scaffolding specialist Cape PLC said it
has extended its GBP40 million asbestos claims scheme to
compensate claimants who worked for liquidated companies and
former subsidiaries of the group.
The Company said the decision, which was taken after
consultation with all interested parties, would not increase the
number of claims likely to come forward, but it will
"inevitably" increase the number of claims to be satisfied by
the scheme.
It said the scheme, which will run for at least 46 years, would
continue to be subject to independent review every three years.
Company chairman Martin May said, "the GBP40 million fund is an
initial figure, which we are committed to top up as and when
necessary."
In 2004, the Company reached an out-of-court settlement to
compensate its South Africa facilities' 7,500 workers who had
suffered asbestos-related diseases. The litigation, sparked
years earlier, was hailed as a landmark case for victims of
asbestosis.
Based in West Yorkshire, United Kingdom, Cape PLC manufactures
fire protection, insulation, and building products for the
construction industry.
ASBESTOS LITIGATION: Owens-Illinois Inc. Maintains 33,000 Claims
----------------------------------------------------------------
In its 2005-third quarter financial results, Owens-Illinois,
Inc. (NYSE: OI) reports that as of September 30, 2005, the
number of asbestos- related lawsuits and claims was about
33,000, compared with about 35,000 at December 31, 2004.
As of June 30, 2005, the Company revealed that the number of
asbestos-related lawsuits and claims pending against it was
about 33,000, down from 35,000 at December 31, 2004, according
to the July 29, 2005 Class Action Reporter edition.
The Toledo, OH-based Company believes that a significant number
of these pending cases have exposure dates after the Company's
1958 exit from the business, for which the Company takes the
position that it has no liability or are subject to dismissal
because they were filed in improper forums. The Company
anticipates that cash flows from operations and other sources
will be sufficient to meet its asbestos-related obligations on a
short-term and long-term basis.
Asbestos-related cash payments in the 2005-third quarter were
US$48.9 million compared with US$54.4 million for the 2004-third
quarter, a reduction of US$5.5 million, or 10.1%.
Established in 1903, Owens-Illinois, Inc. has market-leading
positions in the Americas, Europe, and the Asia-Pacific region.
The world's largest maker of glass containers also produces
plastic healthcare packaging, including prescription bottles,
tamper-proof closures, and plastic medical devices, but its
glass operations account for almost 90% of sales.
ASBESTOS LITIGATION: Japan Govt. Studies Eased Eligibility Rules
----------------------------------------------------------------
According the Japan's proposed eased eligibility rules for
mesothelioma, patients seeking workers' compensation will no
longer have to undergo painful medical procedures to link their
cancer with asbestos exposure, The Asahi Shimbun reports.
The Ministry of Health, Labor and Welfare stated that in the
past 10 years, 7,013 people have died from the cancer, but only
419 patients were covered by workers' compensation insurance
from fiscal 1995 through fiscal 2004.
Currently, mesothelioma patients seeking insurance coverage must
document that they worked a year or more with asbestos, as well
as get medical proof that their cancer is caused by asbestos
exposure. Patients must undergo open-chest surgery or
thoracoscopic surgery to explore the chest cavity in order to
prove that they have asbestos in their lungs.
"The tests are extremely painful, and it is best to basically
assume that mesothelioma is caused by asbestos," said Minister
Hidehisa Otsuji. He added that the Ministry would set up a panel
of experts to revise the current system.
Mr. Otsuji also said the Ministry plans to reconsider cases of
patients who were not given workers' compensation because they
could not establish exact proof that their illnesses were caused
by asbestos.
A Government report showing 2004 demographic data indicated that
953 people died of mesothelioma, about double the number in
1995, when the Government started keeping the statistics.
ASBESTOS LITIGATION: Asbestos Sealants Offer Costly Replacements
----------------------------------------------------------------
Japan's petrochemical producers, oil refineries, electric
utilities and other firms say that alternatives to asbestos
sealants are costlier, less reliable and harder to procure than
the current products, The Asahi Shimbun reports.
The country's complete asbestos ban by 2008 causes major
problems for businesses that currently use asbestos sealants, in
which asbestos is considered as the ideal material because of
its heat, pressure, and chemical resistance.
Asbestos sealants are often used at facilities where accidents
can be catastrophic. A recent series of accidents at factories,
caused in part by restructuring, has made businesses even more
cautious.
A list of 10 items for which the production and use of asbestos
were banned in October 2004 excluded asbestos sealants because
many alternatives fail to adhere under severe conditions and
that replacement is a difficult task. Few replacements can match
the 10-year life span of asbestos sealants.
Asahi Kasei Corp, which uses 700,000 sealants at its factories,
has gradually replaced asbestos sealants over the past decade,
in which only half of the job has been completed. The chemical
manufacturer has yet to find an alternative for a number of
sealants, including those required to withstand temperatures of
up to 800 degrees.
The Federation of Electric Power Companies of Japan says nuclear
power stations use 1.6 million asbestos sealants, with only 10%
of the previous total having been replaced.
According to the Petroleum Association of Japan, some 1.35
million sealants may have to be replaced at oil refineries. User
industry reports submitted to the health ministry last year show
that the petroleum industry expects full replacement to occur in
2009 and flat-glass manufacturers and the mining industry by
2013.
Yuji Kageyama, president of sealant processor Kageyama
Industrial Corp, said the "Kubota shock" changed the situation
this summer, referring to Kubota Corp's June announcement that
workers at its former Hyogo Prefecture plant, frequent visitors
and neighborhood residents had developed or died from asbestos-
related diseases.
ASBESTOS LITIGATION: Arizona Man Charged for Unlawful Abatement
---------------------------------------------------------------
Phoenix, Arizona resident Jeffrey L. Springer faces five years
in Federal prison and fines for the illegal asbestos abatement
from the buildings he owned.
In addition to the prison time, Mr. Springer faces fines
including US$70,000 to each of eight people exposed to the dust.
Federal prosecutors said Mr. Springer hired workers to do the
work between July and September 2000, but failed to do a site
inspection for hazardous materials. None of the workers wore
protective clothing or followed procedures for keeping dust
down.
Investigators determined that 25-hundred pounds of asbestos were
in the buildings when they were knocked down.
ASBESTOS LITIGATION: NZ Group to Launch Campaign Against Hardie
---------------------------------------------------------------
The New Zealand Council of Trade Unions is set to initiate a
campaign against multinational building material manufactures
James Hardie Industries NV.
CTU president Ross Wilson said they would take a proposal to the
Government. Mr. Wilson said they want the legislation amended so
that New Zealand victims could get the same compensation as
their Australian counterparts.
New Zealanders who have been exposed to Hardie's asbestos based-
products don't qualify for lump-sum compensation under New
Zealand Accident Compensation Corp laws.
The New Zealand Council of Trade Unions comprises over 300,000
New Zealand union members in 34 affiliated unions. The Group is
the united voice for working people and their families in New
Zealand.
ASBESTOS LITIGATION: Flytippers to Pay for Removal Costs, UK Law
----------------------------------------------------------------
Under the UK's Clean Neighbourhoods and Environment Bill,
councils enable force to fly-tippers caught in the act to pay
for the removal cost of garbage, from dead animals to asbestos,
Sheffield Today reports.
The laws came into effect as new figures show fly-tipping cost
councils in Yorkshire and the Humber GBP7.5 million a year to
clean up.
The majority of the rubbish dumped in Yorkshire and the Humber
region was household rubbish. Other items include animal
carcasses, asbestos and tires.
Environment Agency chief executive Barbara Young welcomed the
latest powers saying, "Fly-tipping is the work of those with no
regard for public health or the environment. But with the help
of these new powers we will be able to take the fight to these
waste cheats."
ASBESTOS ALERT: UK Company Awards Widow GBP120,000 Compensation
---------------------------------------------------------------
UK firms, William Nicholson & Son (Leeds) Ltd and William
Nicholson & Son Ltd, awarded to Yorkshire widow, Margaret
Gibbon, GBP120,000 as compensation for the death of her husband,
Philip, due to asbestos exposure, Leeds Today reports.
From 1966 to 1974, Mr. Gibbon worked as a shop fitter in the
Company's factory where asbestos sheets were machine-cut, hence
releasing clouds of airborne asbestos dust and fibers. As a
result he contracted mesothelioma, a cancer that destroys the
lining of the lung.
While research is ongoing in an attempt to find better treatment
methods and hopefully a cure for mesothelioma, for those
recently diagnosed victims the outlook is very bleak.
In 2004, over 3,500 people in the UK died from asbestos-related
diseases. Among them were 1,700 who died from mesothelioma. The
death toll is expected to increase every year until 2020.
In Yorkshire, the Ridings Asbestos Support and Awareness Group
helps asbestos victims and their families. Group spokesman Tom
Carden said, "We are seeing more and more mesothelioma cases in
workers like Mr. Gibbon, people who have worked in industries
such as joinery and shop fitting, which you wouldn't necessarily
associate with asbestos exposure."
ASBESTOS ALERT: US EPA Fines AK Hotel US$80T for CAA Violations
---------------------------------------------------------------
The US Environmental Protection Agency fined the owners of the
Best Western Landing Hotel and a demolition contractor
US$80,000, an amount subject to argument at later hearings, in
civil penalties for violating the Clean Air Act, the Ketchikan
Daily News reports.
Filed with an agency administrative law judge in Seattle, the
EPA complaint asserts violations by Landing owners Kay Denise
Sims and Terral Frank Wanzer and demolition contractor Bicknell
Inc. for the improper disposal of asbestos-containing pipe
insulation and cement board. The violations occurred in January
2005 during the demolition of two buildings at the Landing
complex in preparation for new construction, according to the
EPA.
EPA inspector John Pavitt said that the Landing owners hired an
environmental consulting firm to survey the buildings before
demolition and more than half of the asbestos-containing
materials were removed in an EPA-approved manner to an approved
disposal site. However, the remaining contaminated materials
were not recognized as such or treated in the same manner.
Instead, the material was placed at a landfill owned by Harlan
Heaton, he added.
In September, Ms. Sims and Mr. Wanzer hired Absolute
Environmental Services of Anchorage. The Company removed the
material and transported it to an approved disposal site in the
Lower 48, Mr. Pavitt said.
The EPA states that federal requirements mandate a thorough
inspection of a building before demolition, as well as advance
notice to EPA. If significant asbestos is found, certified
contractors are required to dispose of the material.
COMPANY PROFILE
Best Western Landing Hotel
3434 Tongass Avenue
Ketchikan, Alaska 99901
Reservations: 1.800.428.8304
Phone: 907.225.5166
Fax: 907.225.6900
Description:
Located in Ketchikan, Alaska, the 76-room Best Western Landing
is found right across the street from the Alaska Marine Highway
terminal and across the Tongass Narrows from Ketchikan
International Airport.
ASBESTOS ALERT: KY Paper Settles $75T for Air Pollution Breaches
----------------------------------------------------------------
The Courier-Journal agrees to settle US$75,000 for allegations
that it violated air pollution and asbestos regulations at its
downtown printing press and office building.
If signed by the C-J and the Louisville Metro Air Pollution
Control District's board, the order would resolve a dispute over
construction of the paper's new printing facility and another
incident, which occurred on November 14, 2002, involving alleged
unsafe removal of asbestos in the structure's basement.
In July, District officials fined the C-J US$121,000, saying it
had begun building its new printing plant without obtaining a
required air-quality permit, in addition to the unrelated
asbestos allegation. The paper had offered to settle both
allegations for US$90,750.
A notice claims the C-J allowed the removal of pipe insulation
containing asbestos without notifying the district and without
following safety rules. C-J officials have said the newspaper
was not responsible for the incident because it involved a theft
of copper piping.
District director Art Williams said that officials require
permits to be obtained prior to construction and operations so
they can help businesses identify the best types of pollution-
control technology.
In an August filing with the District, the paper asserted that
the allegations against it were erroneous and arbitrary. In
September, the C-J filed suit in Jefferson Circuit Court against
the district, Mr. Williams and all of the district's board
members and requesting a hearing.
George L. Seay, Jr., an attorney for the C-J said the paper
would drop that lawsuit after the agreement is signed.
Terms of a draft order were published in the Courier Journal's
legal notices and posted on the Louisville Metro Air Pollution
Control District's Web site: http://www.apcd.org/.
New Securities Fraud Cases
ANDRX CORPORATION: DYER & Shuman Sets Lead Plaintiff Deadline
-------------------------------------------------------------
The law firm of Dyer & Shuman, LLP, is encouraging persons who
purchased the common stock of Andrx Corporation (NASDAQ: ADRX)
between March 9, 2005 and September 5, 2005 ("Class Members") to
contact Kip B. Shuman of Dyer & Shuman, LLP at 1-800-711-6483 or
via email at KShuman@DyerShuman.com, or their counsel of choice,
concerning their rights and interests as potential class members
in the shareholder class action lawsuit recently filed in the
United States District Court for the Southern District of
Florida against Andrx Corporation. The lawsuit alleges that
Andrx Corporation violated federal securities laws.
The firm reminds investors that they have until December 12,
2005 to file for lead plaintiff in the case.
For more details, contact Kip B. Shuman of Dyer & Shuman, LLP,
Phone: 1-800-711-6483, E-mail: KShuman@DyerShuman.com, Web site:
http://www.dyershuman.com.
DHB INDUSTRIES: Beatie And Osborn Lodges Securities Suit in NY
--------------------------------------------------------------
The law firm of Beatie And Osborn, LLP, initiated a class action
lawsuit in the U.S. District Court for the Eastern District of
New York on behalf of all shareholders who purchased the common
stock of DHB Industries, Inc. (Amex: DHB) between April 21, 2004
and August 29, 2005 (the "class period").
The Class Action Complaint alleges that DHB violated the federal
securities laws by issuing a series of false and misleading
statements regarding its financial performance and business
operations that had the effect of artificially inflating the
market price of its securities.
Specifically, the lawsuit alleges that DHB and certain
executives made statements that were materially false and
misleading because they failed to disclose that:
(1) DHB's body armor products containing Zylon did not meet
the standards warranteed by the company;
(2) the defects in its products subjected DHB to
potentially ruinous liability from regulatory, criminal
or civil actions; and
(3) as a result of the problems with its body armor, the
demand for DHB's products would dramatically decline.
While the shares of DHB were artificially inflated and with
knowledge of the materially false and misleading statements in
the marketplace, certain DHB insiders sold millions of shares of
the company's securities.
On August 30, 2005, DHB announced that it discontinued the use
of Zylon in its bullet resistant products and that it was
implementing a Voluntary Replacement Program for customers that
owned Zylon containing body armor. DHB also announced that
because of the Voluntary Replacement Program, it expected to
record a charge to third quarter earnings of approximately $60
million. As a result of the announcement of the Voluntary
Replacement Program, shares of DHB common stock fell 23% from
$6.66 to $5.10.
For more details, contact Daniel A. Osborn, Esq. of Beatie And
Osborn, LLP, 521 Fifth Avenue, 34th Floor, New York, NY 10175,
Phone: 800-891-6305 or 212-888-9000, Fax No.: 212-888-9664, E-
mail: clientrelations@bandolaw.com, Web site:
http://www.bandolaw.com.
DHB INDUSTRTIES: Glancy Binkow Files Securities Fraud Suit in NY
----------------------------------------------------------------
The law firm of Glancy Binkow & Goldberg, LLP, initiated a Class
Action lawsuit in the United States District Court for the
Eastern District of New York on behalf of a class (the "Class")
consisting of all persons or entities who purchased or otherwise
acquired securities of DHB Industries, Inc. ("DHB" or the
"Company") (AMEX:DHB) between April 21, 2004 and August 29,
2005, inclusive (the "Class Period").
The Complaint charges DHB and certain of the Company's executive
officers with violations of federal securities laws. Among other
things, plaintiff claims that defendants' material omissions and
dissemination of materially false and misleading statements
concerning DHB's operations and prospects caused the Company's
stock price to become artificially inflated, inflicting damages
on investors. DHB is a holding company engaged in the
manufacture and marketing of protective body armors. The
Complaint alleges that defendants' Class Period representations
were materially false and misleading when made for the following
reasons:
(1) DHB's body armor products were unsafe and defective;
(2) the Company knew that DHB's body armor products were
unsafe and defective, but continued to falsely
represent that its body armor products were safe and of
high quality;
(3) defendants knew and/or recklessly disregarded that
continued sales of its unsafe and defective body armor
products could have a material adverse effect on DHB's
finances; and
(4) DHB lacked adequate internal controls and, as a result,
was unable to determine the true financial impact of
withdrawal of any of its products.
On August 30, 2005, DHB announced that it would take a third
quarter charge of up to $60 million to discontinue production of
certain bulletproof vests because of safety concerns. Following
this announcement, on that same day, August 30, 2005, shares of
DHB fell $1.56 per share, or 23.42 percent, to close at $5.10
per share on unusually heavy trading volume.
For more details, contact Lionel Z. Glancy or Michael Goldberg
of Glancy Binkow & Goldberg, LLP, 1801 Avenue of the Stars,
Suite 311, Los Angeles, CA 90067 Phone: (310) 201-9150 or
(888) 773-9224, E-mail: info@glancylaw.com, Web site:
http://www.glancylaw.com.
IMMUCOR INC.: Scott + Scott Lodges Securities Fraud Suit in GA
--------------------------------------------------------------
The law firm of Scott+Scott, LLC, initiated a securities class
action in the United States District Court for the Northern
District of Georgia against Immucor, Inc. ("Immucor" or the
"Company") (Nasdaq: BLUDE) and certain of its former and current
officers. Immucor securities purchasers between January 7, 2005,
and August 29, 2005, inclusive (the "Class Period") are putative
class members.
The complaint alleges that during the Class Period, Immucor and
certain of its former and current officers violated provisions
of the Securities Exchange Act of 1934 (the "Exchange Act") by
issuing a series of material misrepresentations. Specifically,
the complaint alleges that, among other things, defendants
misrepresented that Immucor's financial statements and
disclosures fairly and accurately reflected the Company's
results of operations as required by the Generally Accepted
Accounting Principles ("GAAP") and the Exchange Act. Further, it
is alleged that defendants' Sarbanes-Oxley certifications during
the Class Period were also false and misleading, as the Company
knowingly or with severe recklessness lacked adequate internal
controls and failed to keep proper books and records in
violation of their well-publicized Code of Corporate Conduct.
On August 26, 2005, the truth began to surface when Immucor
issued a press release announcing that the Securities and
Exchange Commission ("SEC") had issued a formal order as part of
its investigation related to payments made by the Company's
Italian subsidiary to individuals associated with government
medical facilities. Three days later, Immucor announced that
defendant Chief Executive Officer Steven C. Ramsey resigned.
Further, while the stock price was artificially traded, insiders
sold approximately $5 million of stock.
In response to this news, shares of Immucor dropped from a
closing price of $28.61 on August 25, 2005, to close at $24.00
per share on August 30, 2005. Yesterday, October 18, 2005,
almost two months after the market learned of the SEC's formal
order, shares again closed at $24.00.
For more details, contact Neil Rothstein of Scott + Scott, LLC,
Phone: 1-800-332-2259, ext. 22, +1-619-251-0887 (mobile), E-
mail: nrothstein@scott-scott.com, Web site:
http://www.scott-scott.com.
LIPMAN ELECTRONIC: Federman & Sherwood Lodges NY Securities Suit
----------------------------------------------------------------
The law firm of Federman & Sherwood initiated a class action
lawsuit in the United States District Court for the Eastern
District of New York against Lipman Electronic Engineering, Ltd.
(Nasdaq: LPMA).
The complaint alleges violations of federal securities laws,
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
and Rule 10b- 5, including allegations of issuing a series of
material misrepresentations to the market which had the effect
of artificially inflating the market price. The class period is
from October 04, 2004 through September 27, 2005.
For more details, contact William B. Federman of FEDERMAN &
SHERWOOD, 120 N. Robinson, Suite 2720, Oklahoma City, OK 73102,
Phone: (405) 235-1560, Fax: (405) 239-2112, E-mail:
wfederman@aol.com, Web site: www.federmanlaw.com.
LIPMAN ELECTRONIC: Jacob Sabo Lodges Securities Fraud Suit in NY
----------------------------------------------------------------
The Law Office of Jacob Sabo initiated a class action lawsuit in
the United States District Court for the Eastern District of New
York on behalf of a class (the "Class") consisting of all
persons or entities who purchased or otherwise acquired
securities of Lipman Electronic Engineering, Ltd. ("Lipman" or
the "Company") (Nasdaq:LPMA) (TASE: LPMA)on the Nasdaq National
Market and/or Tel Aviv Stock Exchange between October 4, 2004
and September 27, 2005, inclusive (the "Class Period").
The Complaint charges Lipman and certain of the Company's
executive officers with violations of federal securities laws.
Among other things, plaintiff claims that defendants' material
omissions and dissemination of materially false and misleading
statements caused Lipman's stock price to become artificially
inflated, inflicting damages on investors. Lipman maintains its
principal corporate offices at Rosh Haayin, Israel, and engages
in the development, manufacture, marketing and sale of
electronic payment systems and solutions worldwide. The
Complaint alleges that defendants issued public statements which
fraudulently created a false impression concerning the Company's
business operations and prospects following the acquisition of
Dione, Plc ("Dione"), a United Kingdom-based supplier of "smart
card" payment systems. Defendants claimed that the Dione
acquisition would add to Lipman's earnings within one year and
"provide important new customer relationships that would add
critical mass to our U.K. presences."
During the Class Period, defendants touted the Dione
acquisition, claiming it would provide "important new customer
relationships" and enable the Company to penetrate new markets,
among other things. Defendants' public statements, however,
misled the public concerning Lipman's ability to leverage
purported "operational and technological synergies that exist
between the two companies." The Complaint alleges defendants
knew or recklessly disregarded and failed to disclose that the
Dione acquisition would not provide an immediate boost to
Lipman's earnings or easily establish the Company's presence in
the United Kingdom and other European countries. Instead,
defendants' statements misled Lipman shareholders and
artificially inflated the Company's stock price. Additionally
during the Class Period, defendants' materially misleading
statements and omissions enabled to Company to complete a
secondary offering of 1,973,044 shares at $29.75 per share in
May 2005.
On September 28, 2005, less than one year after completing the
Dione acquisition, Lipman made a stunning admission that the
"weaker than expected performance of Dione" caused the Company
to slash its 2005 earnings estimates, from a previous forecast
of $1.39 to $1.42 per share, down to $0.88 to $0.98 per share.
The Company also announced that it had terminated the employment
of Dione CEO Shaun Gray and that the Company anticipated it
would take a non-cash impairment charge relating to goodwill and
other intangible assets in 2005.
Investor reaction was sharply negative to this news, causing
Lipman's share price to plunge nearly 22 percent following the
disclosure of the Company's inability to leverage the Dione
acquisition to expand Lipman's European market presence.
For more details, contact Jacob Sabo of The Law Office of Jacob
Sabo, The Tower No. 3, Daniel Frisch Street, 15th Floor, Tel
Aviv, Israel 64731, Phone: (011) 972-3-6078888, E-mail:
sabolaw@inter.net.il.
REFCO INC.: Lerach Coughlin Lodges Securities Fraud Suit in NY
--------------------------------------------------------------
The law firm of Lerach Coughlin Stoia Geller Rudman & Robbins,
LLP, initiated a class action in the United States District
Court for the Southern District of New York on behalf of
purchasers of Refco, Inc. ("Refco") (NYSE:RFX) common stock
during the period between August 11, 2005 and October 18, 2005,
including those who purchased the common stock of Refco pursuant
and/or traceable to the Company's initial public offering
("IPO") on or about August 11, 2005, seeking to pursue remedies
under the Securities Act of 1933 (the "Securities Act") and the
Securities Exchange Act of 1934 (the "Exchange Act").
The complaint charges certain of Refco's officers and directors
with violations of the federal securities laws. Refco provides
execution and clearing services for exchange traded derivatives;
and brokerage services in the fixed income and foreign exchange
markets in the United States, Bermuda, and the United Kingdom.
The complaint alleges that Refco went public via an initial
public offering ("IPO") in August 2005. A mere three months
later, on October 10, 2005, Refco announced that Phillip R.
Bennett, its Chief Executive Officer ("CEO"), Chairman and
controlling shareholder, was being placed on a leave of absence
and that the Company had discovered, purportedly through an
internal review, a receivable of $430 million owed by Bennett to
the Company. The Company also announced that based on the
undisclosed related-party transaction, its prior financial
statements should not be relied upon.
According to the complaint, on or about August 10, 2005, Refco
filed with the SEC a Form S-1/A Registration Statement (the
"Registration Statement"), for the IPO. On or about August 11,
2005, the Prospectus with respect to the IPO, which forms part
of the Registration Statement, became effective and 26.5 million
shares of Refco common stock were sold to the public, thereby
raising approximately $583 million. According to the complaint,
the Prospectus issued in connection with the IPO was materially
false and misleading for several reasons, including the fact
that in a section entitled "Certain Relationships and Related
Transactions," the Prospectus purported to detail all of the
related-party transactions concerning its business, but failed
to disclose the related-party loan of $430 million to an entity
controlled by Bennett. As detailed in the complaint, Refco has
now admitted that its financial statements as of and for the
periods ended February 28, 2002, February 28, 2003, February 28,
2004, February 28, 2005 and May 31, 2005 should no longer be
relied upon and will likely be restated. This amounts to an
admission that those financial statements were materially false
and misleading when issued. In response to these announcements,
the price of Refco common stock declined precipitously falling
from $28.56 per share to $15.60 per share on extremely heavy
trading volume.
On October 13, 2005, the Company issued a press release
announcing that it had hired advisors and imposed a 15-day
moratorium on all activities, including customer withdrawals, of
Refco Capital Markets, Ltd. In response to this announcement the
price of Refco common stock declined an additional $2.95 per
share to $7.90 per share on extremely heavy trading volume. On
October 17, 2005, Refco announced that the Company and certain
of its subsidiaries had filed for protection under Chapter 11 of
the United States Bankruptcy Code.
For more details, contact Samuel H. Rudman or David A. Rosenfeld
of Lerach Coughlin Stoia Geller Rudman & Robbins, LLP, Phone:
800/449-4900 or 619/231-1058, E-mail: at wsl@lerachlaw.com, Web
site: http://www.lerachlaw.com/cases/refco/.
REFCO INC.: Schiffrin & Barroway Lodges Securities Suit in NY
-------------------------------------------------------------
The law firm of Schiffrin & Barroway, LLP, initiated a class
action lawsuit was filed in the United States District Court for
the Southern District of New York on behalf of all securities
purchasers of Refco, Inc. (OTC: RFXCQ) (formerly NYSE: RFX)
("Refco" or the "Company") between August 11, 2005 and October
13, 2005, inclusive (the "Class Period"), including purchasers
of Refco stock pursuant or traceable to the registration
statement as amended on August 10, 2005 ("Registration
Statement"), and the prospectus dated August 11, 2005 issued in
connection with the Company's initial public offering on or
about August 11, 2005 (the "Offering" or the "IPO").
The complaint charges Phillip R. Bennett, Gerald M. Sherer, Leo
R. Breitman, Nathan Gantcher, David V. Harkins, Scott L.
Jaeckel, Thomas H. Lee, Ronald L. O'Kelley, Scott A. Schoen,
Grant Thornton LLP, Credit Suisse First Boston, Goldman Sachs &
Co., Banc Of America Securities LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Deutsche Bank Securities, Inc.,
J.P. Morgan Securities Inc., Liberty Corner Capital, and Refco
Group Holdings Inc. with violations of the Securities Exchange
Act of 1934. More specifically, the Complaint alleges that the
Company failed to disclose and misrepresented the following
material adverse facts known to defendants or recklessly
disregarded by them:
(1) that an entity controlled by defendant Bennett owed the
Company as much as $545 million in a scam designed to
hide bad debt;
(2) that the Company failed to account for the $545 million
in bad debt thereby materially inflating its financial
results;
(3) that the Company lacked adequate internal controls;
(4) that the Company's financial results were in violation
of Generally Accepted Accounting Principles ("GAAP");
and
(5) that as a result of the foregoing the Company's
financial results were materially inflated at all
relevant times.
On October 10, 2005, Refco shocked the market when it announced
it had discovered, through an internal review, a receivable owed
to the Company by an entity controlled by defendant Bennett in
the amount of approximately $430 million, that Bennett was
stepping down, and that Company financial statements issued
since 2002 could no longer be relied upon. After digesting this
news, the market acted swiftly and negatively. By the end of the
day on October 10, 2005, shares of Refco fell $12.96 per share,
or 45.3 percent, to close at $15.60 per share on heavy trading
volume.
Shares of Refco fell even further on October 11, 2005, when a
more than five-hour halt on trading was lifted at the New York
Stock Exchange ("NYSE"), following the additional disclosure
that the sum of $430 million receivable was largely comprised of
uncollectible debts dating as far back as 1998. By the day's
end, shares of Refco were down $1.75 per share, or 11.22
percent, to close at $13.85. On October 12, 2005, the United
States Attorney for the Southern District of New York announced
that defendant Bennett had been arrested and charged in a
criminal complaint with having defrauded investors in the
initial public offering of securities in Refco by hiding that
hundreds of millions of dollars owed to Refco was in fact owed
by a company Bennett himself controlled. At the close of trading
on October 12, 2005, shares of Refco fell an additional $3.00
per share, or 21.66 percent, to close at $10.85 per share on
heavy trading volume.
On October 13, 2005, trading of Refco shares was delayed at the
opening of the market pending news from the Company. At
approximately 11:30 a.m., Refco announced that in light of
recent events, the liquidity within Refco Capital Markets, Ltd.,
was no longer sufficient to continue operations. The Company had
therefore imposed a 15-day moratorium on all activities of Refco
Capital Markets, Ltd. Following this revelation, on October 13,
2005, the NYSE again halted the trading of Refco's shares. At
the time of the trading halt, Refco's stock was trading at $7.90
per share, which represented a loss of $2.95 per share, or 27.19
percent.
The final blow for Refco occurred on October 18, 2005, when
Refco filed for Chapter 11 bankruptcy protection after cutting a
deal to sell its primary business to a group led by hedge fund
J.C. Flowers & Co. LLC. Following this news, the NYSE lifted the
halt on trading. Shares of Refco plunged $7.25 per share, or
91.77 percent, to close at $0.65 per share on October 18, 2005.
For more details, contact Darren J. Check, Esq. or Richard A.
Maniskas, Esq. of Schiffrin & Barroway, LLP, 280 King of Prussia
Road, Radnor, PA 19087, Phone: 1-888-299-7706 or 1-610-667-7706,
E-mail: info@sbclasslaw.com, Web site:
http://www.sbclasslaw.com.
TAG-IT PACIFIC: DYER & Shuman Schedules Lead Plaintiff Deadline
---------------------------------------------------------------
The law firm of Dyer & Shuman, LLP, is encouraging all persons
who purchased the common stock of Tag-It Pacific, Inc. (AMEX:
TAG) between November 14, 2003 and August 12, 2005 ("Class
Members") to contact Kip B. Shuman of Dyer & Shuman, LLP at
1-800-711-6483 or via email at KShuman@DyerShuman.com, or their
counsel of choice, concerning their rights and interests as
potential class members in the shareholder class action lawsuit
recently filed in the United States District Court for the
Central District of California against Tag-It Pacific, Inc. The
lawsuit alleges that Tag-It Pacific, Inc. violated federal
securities laws.
The firm reminds investors that they have until December 15,
2005 to file for lead plaintiff in the case.
For more details, contact Kip B. Shuman of Dyer & Shuman, LLP,
Phone: 1-800-711-6483, E-mail: KShuman@DyerShuman.com, Web site:
http://www.dyershuman.com.
*********
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the Class Action Reporter. Submissions
via e-mail to carconf@beard.com are encouraged.
Each Friday's edition of the CAR includes a section featuring
news on asbestos-related litigation and profiles of target
asbestos defendants that, according to independent researches,
collectively face billions of dollars in asbestos-related
liabilities.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Class Action Reporter is a daily newsletter, co-published by
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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
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