/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/060712.mbx C L A S S A C T I O N R E P O R T E R Wednesday, July 12, 2006, Vol. 8, No. 137 Headlines AMERICAN INTERNATIONAL: Ex-CEO Files Defense in Investors Suit AWB LTD: Farmers File $1B Suit in Wash Over RICO Act Violations BEAR STEARNS: Reaches Settlement in Sterling Foster Litigation BEAR STEARNS: IPO Antitrust Suit Certification Motions Pending CALIFORNIA: Baseball Team Wants Suit Over Promo Giveaway Junked CATHOLIC HEALTHCARE: July 12 Hearing Set for "Dancer" Settlement CINGULAR WIRELESS: Refutes Suit Over AT&T Cell Phone System Deal EUROPEAN AERONAUTIC: Faces Shareholder Group Suit in Netherlands EXXONMOBIL CORP: Firms Get $303M From Fla. Petrol Stations' Suit FORD MOTOR: Lakin Employee Withdraws as Plaintiff in Paint Suit GENERAL MOTORS: N.Y. Court Denies Motion to Dismiss PCB Suit GENERAL MOTORS: Recalls Vehicles Unable to Meet Safety Standards GOOGLE INC: Security Expert Opposes Ark. Click Fraud Settlement ILLINOIS: Judge Continues Ban on Special-Purpose Funds' Transfer INSURANCE COMPANIES: Miss. Katrina Suit Remanded to County Court KUMHO TIRE: Recalls Light Truck Tires for Possible Crash Hazards MERCK & CO: Deluge of Osteoporosis Drug Suits In the Works MICROSOFT CORP: Vermont Schools to Receive $4.7M in Settlement MURPHY OIL: Suit Over La. Oil Contamination on "Fast Track" NEW JERSEY: Camden Pays $50T to Law Firm in Water Supply Suit SONIC AUTOMOTIVE: Reaches Settlement in Calif. Fraud Complaints THUMANN'S INC: Recalls Proscuitto Ham for Possible Contamination VIRGIN ISLANDS: Faces Motion for Contempt Over Jail Improvement WILD SIDE: Recalls Beef Stick Products with Incomplete Label Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals * Online Teleconferences New Securities Fraud Cases BROOKS AUTOMATION: Charles H. Johnson Files Stock Suit in Mass. HERLEY INDUSTRIES: Berger & Montague Files Stock Suit in Penn. TERAYON COMMUNICATION: Glancy Binkow Files Securities Fraud Suit ********* AMERICAN INTERNATIONAL: Ex-CEO Files Defense in Investors Suit -------------------------------------------------------------- The former chief executive of insurer American International Group filed a response on June 30 to a shareholder suit filed against him. Maurice Greenberg told a federal court in New York that the cutting of the company's profits by $3.9 billion in 2005 was unnecessary and designed to force him to retire. A second restatement later changed the amount to $3.4 billion. Last month, Delaware Chancery Court Judge Leo Strine denied Mr. Greenberg's and his co-defendants' motion to dismiss complaints saying he diverted millions from the company through payments to C.V. Starr & Co., an insurance agency he controlled. The case will decide whether C.V. Starr & Co. and Starr International Co., two companies with which Mr. Greenberg is involved, were legitimate firms, according to Reuters. Mr. Greenberg was ousted in March 2005 amid accounting probes by New York Attorney General Eliot Spitzer and U.S. regulators. The Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio, both of whose combined losses exceeded $150 million are lead plaintiffs in the shareholder suit in New York, according to Louis Gottlieb, one of the plaintiff lawyers (Class Action Reporter, Aug. 12, 2005). The suit is "In Re American International Group, Inc. Securities Litigation, Case No. 1:04-cv-08141-JES," filed in the U.S. District Court for the Southern District of New York under Judge John E. Sprizzo. Plaintiffs include: -- ll Ohio Public Employees Retirement System, -- San Francisco Employees' Retirement System, -- Public Employees' Retirement System of Mississippi, -- Ohio State Funds, -- Robert D. Jaffee IRA Rollover, -- Robet D. & Phyllis A. Jaffee Family Foundation Defendants include: -- Starr International Company, Inc., -- Maurice R. Hank Greenberg, -- Union Excess Reinsurance Co., Inc., -- Richmond Insurance Co., Ltd., -- PriceWaterhouseCoopers, LLP, -- C.V. Starr & Co., Inc., -- American International Group, Inc., -- General Reinsurance Corp., -- Wachovia Securities, Inc., Representing the defendants are: (1) George M. Garvey of Munges, Tolles & Olsen, 355 South Grand Avenue, Los Angeles, CA 90071, Phone: (213) 683- 9100; (2) Lewis E. Farberman of Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas, New York, NY 10019 Phone: (212)-373-3577, Fax: (212)-492-0577, E- mail: lfarberman@paulweiss.com; and (3) Nicholas A. Gravante, Jr. of Boies, Schiller & Flexner, 570 Lexington Avenue, New York, NY 10022, Phone: (212) 446-2300, Fax: (212) 446-2350, E-mail: ngravante@bsfllp.com. Representing the plaintiffs are: (1) Labaton Rudoff & Sucharow LLP, 100 Park Avenue, 12th Floor, New York, NY 10017, Phone: 212-907-0700, Fax: 212-818-0477, E-mail: tdubbs@labaton.com; (2) Louis Gottlieb of Labaton Rudoff & Sucharow LLP, 100 Park Avenue, 12th Floor, New York, NY 10017, Phone: (212) 907-0872, Fax: (212) 883-7072, E-mail: lgottlieb@labaton.com; and (3) Jason Samuel Cowart of Pomerantz Haudek Block Grossman & Gross LLP, 100 Park Avenue, 26th Floor, New York, NY 10017, Phone: (212)-661-1100, Fax: (212)-661-8665, E- mail: jscowart@pomlaw.com. AWB LTD: Farmers File $1B Suit in Wash Over RICO Act Violations --------------------------------------------------------------- AWB Ltd. and its U.S. subsidiary, AWB (USA) Ltd., were named as defendants in a purported class action filed by North American farmers, accusing the Australian wheat exporter of engaging in a worldwide campaign of racketeering, money laundering, fraud and bribery to corner grain markets. The suit, filed in a Washington, D.C. court, is claiming $1 billion in damages from defendants. Plaintiffs allege that the defendants' actions in Iraq and several other countries breached U.S. laws and hurt thousands of American and Canadian farmers. Farmers, including lead plaintiff Veryl Switzer, are basing their claims on the U.S. Racketeer Influence and Corrupt Organizations Act, which was designed to target the mafia and other criminal groups. They are also basing their claims on alleged breaches by defendants of the U.S. Foreign Corrupt Practices Act. Currently, the class action only names six farmers, however it does allow more than 20,000 to join in later. Reports indicate that American lobby group, U.S. Wheat Associates, would consider joining the action if it was approached. The Canadian Wheat Farmers Association is reportedly considering joining the class action as well. Last year, a U.N. investigative committee found that AWB paid $290 million in kickbacks to Saddam Hussein's regime to secure wheat contracts in Iraq. The Cole Inquiry in Sydney uncovered evidence about AWB's corruption of the U.N. oil-for-food program between 1999 and 2003, as well as subsequent cover-up attempts. The Cole Inquiry was an inquiry set up by Australia officials under the Royal Commissions Act 1902 in November 2005 to investigate the role of certain Australian companies in the systematic corruption of the Oil for Food program by Saddam Hussein. It was limited to investigating the role of three Australian companies in paying kickbacks to Saddam Hussein, according to http://en.wikipedia.org/wiki/Cole_inquiry. Its Royal Commissioner was the Honorable Terence Cole Q.C., a former Judge of Appeal of the New South Wales Supreme Court. John Agius S.C., Counsel Assisting, and three other barristers, Gregory Nell, Michael Wigney and Miles Condon, supported Mr. Terence in the inquiry. However, AWB's "fraudulent abuse" of the U.N. food program and "bribery" of Iraqi officials form only part of the "allegations of fact" in the class action. In the complaint, obtained by Australian news agency, The Age, AWB is also being accused of: -- bribing Yemeni Government officials to secure a wheat contract in 1999; -- bribing Pakistani officials for a contract to export wheat to Pakistan in 2000; -- sabotaging the Indonesian wheat market in 2002 to shut out U.S. rivals by fraudulently manipulating the U.S. Agriculture Department export-credit program; and -- committing perjury and obstructing justice in an effort to cover up the wheat board's corrupt Iraqi dealings. The complaint also states, "Certain AWB officials . intentionally and knowingly conspired to utilize illegal tactics such as wire fraud, bank fraud, bribery, money laundering and tortious interference with business opportunity in order to gain an unfair competitive advantage in certain wheat markets including, but not limited to, Iraq, Pakistan, Yemen and Indonesia." The complaint further claims, "AWB unfair advantage conspirators formed an ongoing criminal enterprise designed to implement tactics known to violate international laws and U.S. domestic laws to effect an unfair competitive advantage for AWB in specific international wheat markets." Attorneys are demanding a jury trial, tens of millions of dollars in compensation, the application of racketeering law provisions, which would allow the tripling of any damages and appropriate "additional or alternative relief." Several U.S. lawyers, including Washington attorney L. Palmer Foret and Atlanta-based lawyer Roderick E. Edmond, who specialises in medical negligence cases, are handling the lawsuit. For more details, contact: (1) Roderick E. Edmond of Edmond & Jones, LLP, Candler Building, 127 Peachtree Street NE, Suite #410, Atlanta, GA 30303, Phone: (404) 525-1080, Fax: (404) 525-1073, E-mail: http://www.edmondfirm.com/index.html;and (2) L. Palmer Foret, The Law Firm of Palmer Foret, PC, Two Wisconsin Avenue, Suite 660, Chevy Chase, MD 20815, Phone: (301) 656-1888, E-mail: lpforet@aol.com. BEAR STEARNS: Reaches Settlement in Sterling Foster Litigation -------------------------------------------------------------- Bear Stearns Cos. Inc. and Bear, Stearns Securities Corp. reached settlements in two purported class actions arising out of Bear Stearns' role as clearing broker for Sterling Foster & Co., Inc. A former officer of BSSC is also a defendant in one of the actions. Bear Stearns, BSSC, and the former officer of BSSC have entered into a settlement agreement with the plaintiffs and certain other defendants that would resolve all claims against them as defendants in both class actions, according to the company's quarterly report filed with the U.S. Securities and Exchange Commission on July 10. This settlement is subject to approval by the U.S. District Court for the Eastern District of New York, which has scheduled a hearing on the fairness of the proposed settlement's terms. Levitt et al. Suit Bear Stearns was named defendant in a class action, "Levitt, et al. v. Bear Stearns, et al.," filed in the U.S. District Court for the Southern District of New York on Feb. 16, 1999 (Class Action Reporter, Feb. 18, 2005). The purported class action was filed on behalf of all persons who purchased ML Direct, Inc. common stock or warrants through Sterling Foster & Co., Inc. between Sept. 4, 1996 and Dec. 31, 1996. The suit also named as defendant BSSC. The complaint alleges, among others, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder and committed common law fraud in connection with providing clearing services to Sterling Foster with respect to certain transactions by customers of Sterling Foster in ML Direct common stock and warrants. Compensatory damages of $50 million and punitive damages of approximately $100 million were sought Class Action Reporter, Feb. 18, 2005). On April 6, 1999, this action was transferred by the Judicial Panel on Multi-District Litigation to the U.S. District Court for the Eastern District of New York. On June 27, 2002, the court granted defendants' motion and dismissed this action in its entirety. On July 25, 2002, plaintiff filed a notice of appeal from the district court order dismissing the complaint in this action. On Aug. 13, 2003, the U.S. Court of Appeals for the Second Circuit vacated the district court order granting defendants' motion to dismiss and remanded the action to the district court. Rogers Lawsuit Bear Stearns and BSSC and a former BSSC officer were named defendants in a class action filed in the U.S. District Court for the Eastern District of New York as "Rogers v. Sterling Foster & Co., Inc." (Class Action Reporter, Feb 18, 2005) The action was brought on behalf of a purported class consisting of all persons who purchased or otherwise acquired certain securities that were underwritten by Sterling Foster. Named as defendants, in addition to the Bear Stearns defendants are: -- Sterling Foster; -- seven individuals alleged to have had an employment relationship with, or exercised control over, Sterling Foster; -- six companies that issued securities underwritten by Sterling Foster; -- seven individuals who were directors, officers and/or employees of these issuers; -- one individual who controlled a corporate investor in and selling shareholder in the issuers's IPOs; and -- Bernstein & Wasserman LLP and two of its partners. The second amended complaint alleged, among others, that the Bear Stearns defendants violated Section 10(b) of the U.S. Exchange Act and Rule 10b-5 promulgated thereunder and Section 349 of the New York General Business Law and committed common law fraud in connection with providing clearing services to Sterling Foster. Compensatory damages in an unspecified amount were sought. On June 27, 2002, the court granted defendants' motion to dismiss and dismissed the claims against Bear Stearns, BSSC, and the former officer of BSSC in their entirety. On Sept. 29, 2004, the court granted plaintiffs' motion to vacate the June 27, 2002 dismissal and granted plaintiffs' request to amend their complaint against Bear Stearns and BSSC with respect to two securities underwritten by Sterling Foster. The suit is "Rogers, et al. v. Sterling Foster & CO, et al., Case No. 0:97-cv-00189-ADS-MLO," filed in the U.S. District Court for the Eastern District of New York under Judge Arthur D. Spatt with referral to Judge Michael L. Orenstein. Representing the defendants are E. Kenly Ames and John R. Baraniak, Jr. of Choate, Hall & Stewart, Exchange Place, 53 State Street, Boston, MA 02109-2891, Phone: (617) 248-5000. Representing the plaintiffs are Peter Steven Linden and Lewis S Sandler of Kirby McInerney & Squire, LLP, 830 Third Avenue, New York, NY 10022, Phone: (212) 371-6600. BEAR STEARNS: IPO Antitrust Suit Certification Motions Pending -------------------------------------------------------------- The U.S. District Court for the Southern District of New York separately denied and postponed motions in two class actions filed against Bear Stearns Cos. Inc. The court denied a motion by plaintiffs in an issuer action for class certification and postponed a ruling on the class certification motion in a purchaser action. Bear Stearns Cos. Inc., along with numerous other financial services firms, is a defendant in several consolidated antitrust-related class actions currently pending in the district court. The first consolidated action purports to be brought on behalf of a putative class of purchasers of stock in initial public offerings. The second consolidated action purports to be brought on behalf of a putative class of issuers of stock in initial public offerings. Each suit alleges that Bear Stearns violated federal antitrust laws by fixing underwriting fees at 7% for initial public offerings with an aggregate issuance value of $20-$80 million for the time period 1994 to the present. The purchaser action currently involves only claims for declaratory relief, while the issuer action asserts claims for treble damages. On Sept. 16, 2005, plaintiffs in the purchaser action and the issuer action moved for class certification. By a Court Order dated April 18, 2006, the district court denied the issuer action plaintiffs' motion for class certification and postponed a ruling on the class certification motion in the purchaser action pending resolution of whether, in light of the court's ruling in the issuer action, the purchaser action plaintiffs nonetheless want to proceed with their action. CALIFORNIA: Baseball Team Wants Suit Over Promo Giveaway Junked --------------------------------------------------------------- The Los Angeles Angels of Anaheim filed a response on July 7 to a suit filed by a baseball fan who was denied a tote bag giveaway during a Mother's Day 2005 promotion. The baseball team asked the court to throw out the case, according to Justene Adamec of http://blogcritics.org/. It accuses the plaintiff's attorney of conducting a "widely known and ongoing scheme to extort money from California businesses who dare to give a gift to individuals." The lawyer has filed 40 similar lawsuits, the blog entry states. Michael Cohn, a Los Angeles psychologist, is suing the Angels for alleged sex and age discrimination after being denied the tote bag (Class Action Reporter, May 22, 2006). Mr. Cohn filed the suit on May 4 in Orange County Superior Court, the Los Angeles Times reported. It alleged that thousands of males and fans under age 18 were treated unequally with women at a "Family Sunday" promotion. It is seeking $4,000 in damages for each person whose civil rights were allegedly violated by being denied the giveaway granted to women more than 18 years of age. The suit names as plaintiff the team and the Corinthian Colleges. Corinthian oversees Bryman College, which has an Anaheim campus and sponsored the event. Mr. Cohn's is represented by San Diego-based lawyer Alfred Rava. CATHOLIC HEALTHCARE: July 12 Hearing Set for "Dancer" Settlement ---------------------------------------------------------------- Parties in the class action, "Dancer v. Catholic Healthcare West," which is pending in San Francisco Superior Court, reached a settlement in a suit over pricing and collection practices for uninsured patients at Catholic Healthcare affiliate hospitals, according to NewsRx.com. The settlement is to be considered for preliminary approval before Judge Richard A. Kramer on July 12, 2006. It will resolve claims against Catholic Healthcare and its affiliated hospitals. Under the settlement, class members will be entitled to make a claim for refunds or deductions from their prior hospital bills pursuant to discounted pricing and collections policies benefiting uninsured patients during the class period. In addition, Catholic Healthcare agreed to maintain its uninsured pricing and collections policies going forward for at least four years. Adrienne Dancer and Amber T. Howell filed the suit on behalf of themselves and hundreds of thousands of uninsured patients at Catholic Healthcare hospitals in California, Nevada and Arizona. Plaintiffs allege that the defendant charged uninsured patients excessive and unfair prices for medical treatment and services given at Catholic Healthcare-affiliated hospitals. They claim that the hospital also engaged in aggressive and unfair collections practices. The proposed class includes all persons who: -- received hospital services from a Catholic Healthcare West hospital between July 1, 2001 and the date of preliminary settlement approval; -- were uninsured at the time of treatment; and -- earned less than $250,000 in gross annual household income in the calendar year in which they received hospital services. Commenting on the deal, plaintiffs' attorney Kelly M. Dermody of Lieff Cabraser Heimann & Bernstein, LLP, said that it implements the goals of the lawsuit: a fair system of pricing for Catholic Healthcare's uninsured patients during the class period, along with the careful maintenance of policies and practices designed to help ensure that this vulnerable population is treated fairly going forward. For more details, contact: (1) Kelly M. Dermody of Lieff Cabraser Heimann & Bernstein, LLP, Embarcadero Center West, 275 Battery Street, Suite 3000, San Francisco, CA 94111-3339, Phone: (415) 956- 1000, Fax: (415) 956-1008, E-Mail: kdermody@lchb.com, Web site: http://www.lieffcabraser.com/chw.htm; (2) Sidney Backstrom of the Scruggs Law Firm, P.A., Phone: (662) 281-1212; (3) Dave Mohel, of the Consejo de Latinos Unidos, Phone: +1-703-548-1160. CINGULAR WIRELESS: Refutes Suit Over AT&T Cell Phone System Deal ---------------------------------------------------------------- Cingular Wireless Corp. has denied claims in a class action filed in the U.S. District Court for the Western District of Washington, in relation to its $41 billion acquisition of AT&T Corp.'s cell phone system in October, 2004. A general counsel for Cingular has said that the claims are without merit and that the wireless carrier is considering counter suing. AT&T Wireless Services Customers commenced a class action in the U.S. District Court for the Western District of Washington, against Cingular Wireless. The lawsuit was brought on behalf of all AT&T Wireless customers who were allegedly deceived or overcharged by Cingular's actions related to the merger. The class action is brought by a group of lawyers and law firms, including attorneys for the non-profit Foundation for Taxpayer and Consumer Rights, the law firm of Cotchett, Pitre, Simon and McCarthy, of Burlingame, California, and Stritmatter, Kessler, Whelan, Withey and Coluccio, based in Seattle. The suit charges that Cingular engaged in false advertising, breached the contracts with AT&T customers, and violated the consumer protection laws of each of the 50 states. Specifically, it alleges that: (1) prior to the merger, Cingular promised that AT&T Wireless customers would "continue to enjoy the benefits of their current phones, rate plans and features, without any service interruption"; (2) after the merger, Cingular implemented a deliberate scheme to dismantle the AT&T Wireless network in order to degrade the service provided to AT&T Wireless customers and induce them to "transfer" to the Cingular network; (3) AT&T Wireless customers have complained of increasing dropped calls, and poor or no reception; (4) dissatisfied AT&T Wireless customers are given the option to "upgrade" to Cingular; (5) AT&T customers who do not agree to such an "upgrade" are left with the choice of fulfilling their contract term with AT&T despite degraded or non-existent service, or paying an early termination fee of $175 to cancel service before the expiration of the 12- or 24- month contract term. The lawsuit stems from an investigation of numerous complaints received by the non-profit Foundation for Taxpayer and Consumer Rights, a California-based crusader for consumer rights. The class covers all AT&T Wireless customers who were customers as of October 26, 2004. A copy of the complaint is available free of charge at: http://ResearchArchives.com/t/s?d63 The suit is "Coneff et. al. v Cingular Wireless Corp. et. al., Case No. CV06-0944," filed in the U.S. District Court for the Western District of Washington. Representing the plaintiffs are: (1) Bruce L. Simon, Esther L. Klisura both of Cotchett, Pitre, Simon & McCarthy, 840 Malcolm Road, Suite 200, Burlingame California 94010, Phone: (650) 697-6000, Fax: (650) 697-0577, E-mail: bsimon@cpsmlaw.com; (2) Paul L. Stritmatter, Michael E. Withey, Kevin Coluccio all of Strimatter Kessler Whelan Withey Coluccio, 200 Second Ave., West Seattle, WA 98119, Phone: (206) 448- 1777, Fax: (206) 728-2131, Email: mike@skwwc.com; and (3) Harvey Rosenfeld and Pamela Presley both of The Foundation for Tax Payer and Consumer Rights, 1750 Ocean Park Boulevard, Suite 200, Santa Monica, CA 90405, Phone: (310) 392-0522, Fax: (310) 392-8874, E- mail: harvey@consumerwatchdog.org. EUROPEAN AERONAUTIC: Faces Shareholder Group Suit in Netherlands ---------------------------------------------------------------- Frederik-Karel Canoy, a lawyer and head of the Association of Active Shareholders, confirmed the filing of a class suit in a Haarlem, Netherlands court against European Aeronautic Defence and Space Co., over the recent drop in the company's share price, UPI Business News reports. The shareholders allege that due to the company's announcement earlier this month of new delays to the Airbus A380 superjumbo aircraf, together with a profits warning, its market value was down more than a quarter. The delays plunged EADS' shares 26%. It is expected that production hitches would erase US$2.5 billion of its profits over four years (Class Action Reporter, June 28, 2006). The suit further alleges "disastrous financial consequences" for shareholders and follows the decision by the French financial regulator, AMF, to investigate dealings in EADS shares made just before the A380 announcement. EXXONMOBIL CORP: Firms Get $303M From Fla. Petrol Stations' Suit ---------------------------------------------------------------- The law firms of Stearns Weaver Miller Weissler Alhadeff & Sitterson and Pertnoy Solowsky and Allen were awarded a combined $303 million in attorneys' fees in the settlement of a class action against ExxonMobil Corp., TheLawyer.com reports. The firms represented about 11,000 petrol stations in a federal class action against the company, which claims that it failed to pay discounts on petrol to offset increased credit card costs. The suit was settled for $1.08 billion after 15 years of litigation. In April, Judge Alan Gold of the U.S. District Court for the Southern District of Florida granted final approval to the settlement. Of the $303 million, Stearns Weaver will get $250 million while Pertnoy Solowsky will get the remaining $53 million. The award to Stearns Weaver represents about 75% of an overall fee award of $325 million that the court approved on behalf of five law firms. Besides the fees for lawyers, a share of the broader settlement goes to the nine gas-station owners who served as class representatives in the case, which was brought on behalf of more than 11,000 current and former Exxon gas-station owners. Judge Gold awarded the class representatives $15.9 million in incentive awards (Class Action Reporter, July 10, 2006). For more details, contact: (1) Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., Museum Tower, 150 West Flagler Street, Suite 2200, Miami, FL 33130, Phone: (305) 789-3200 and (954) 463-5440 Fax: (305) 789-3395; and (2) Pertnoy, Solowsky & Allen, PA, Museum Tower, Suite 2000, 150 West Flagler Street Miami, FL 33130, Phone: (305) 371-2223, Fax: (305) 373-2073. FORD MOTOR: Lakin Employee Withdraws as Plaintiff in Paint Suit --------------------------------------------------------------- Joyce Phillips, a former Lakin Law Firm employee, who filed a class action against Ford Motor Co. through her employer, asked to be excused from the case, according to The Madison St. Clair Record reports. On June 23, Lakin attorney Robert Schmieder, asked Madison County Circuit Judge Andy Matoesian for leave to amend the complaint. That motion forestalled a June 28 hearing on a company motion to dismiss. In seeking an amendment, Mr. Schmieder wrote that the new complaint would excuse Ms. Phillips and Joseph Gulash, another plaintiff. Norma Maag and Peter Yaciuk will replace both individuals. Current plaintiffs Daniel Schopp and Beverly Brede, though, would remain in the suit. The suit, which claims that the company failed to tell buyers that paint would "delaminate" and flake off cars, was already amended twice. The company plans to resist further amendment. In a June 29 letter to the court, attorney Joseph Whyte wrote that the company intended to oppose the motion. Ms. Phillips was working under an assignment from a temporary employment agency in the Lakin firm in 1999 when she heard about the possible suit over paint problems, according to her deposition in 2002. Brad Lakin filed Ms. Phillips' suit. Three months later the firm hired her as a legal assistant. In the 2002 deposition it was revealed that she had no training for the position. Company attorney Robert Shultz argued that Ms. Phillips was too closely connected to the firm to represent a class. He also pointed out that a class member could wonder where her loyalties lay. However, in 2003, Judge Philip Kardis certified Ms. Phillips as class representative. He found no conflict of interest between Ms. Phillips and the plaintiff class. The judge set trial for 2006, but he retired in 2005. For more details, contact Robert W. Schmieder, II, Lakin Law Firm PC, 300 Evans Avenue, P.O. Box 229, Wood River, IL 62095- 0229, Phone: (618) 254-1127, Fax: (618) 254-0193, Web site: http://www.lakinlaw.com. GENERAL MOTORS: N.Y. Court Denies Motion to Dismiss PCB Suit ------------------------------------------------------------ The U.S. District Court for the Northern District of New York refused to dismiss a class action brought by 40 Mohawks against General Motors Corp. and Alcoa, Inc., who claims that their health was affected by pollutants from the firms' plants, The Watertown Daily Times reports. Filed on Nov. 29, 2005, the suit alleges the companies' Massena plants negligently dumped polychlorinated biphenyls, or PCBs, into the Raquette and St. Lawrence rivers and put PCB-laden materials into landfills for decades. PCBs, a known carcinogen, were commonly used as industrial coolants and insulators before their use was banned by the Environmental Protection Agency in 1979. Plaintiffs claim that PCBs dumped from the General Motors and Alcoa plants made their way into the waterways, groundwater and soil on the Akwesasne reservation. They allege that that the contamination caused widespread health problems on the reservation, including thyroid problems, learning disabilities, reproductive abnormalities and liver cancer. Aside form denying the dismissal motion, Judge Hurd also ordered plaintiffs' attorneys to provide information about each person who will be part of the class action. The judge stipulated that the information would include when they were first exposed to PCBs, when they first had symptoms of an illness and when they first sought treatment. The suit is "George et al v. General Motors Corporation et al., Case No. 7:05-cv-01482-DNH-GHL," filed in the U.S. District Court for the Northern District of New York under Judge David N. Hurd with referral to Judge George H. Lowe. Representing the plaintiffs are Christopher A. Amato, Donald W. Boyajian and William J. Dreyer of Dreyer, Boyajian Law Firm, 75 Columbia Street, Albany, NY 12210, Phone: 518-463-7784, Fax: 518-463-4039, E-mail: camato@dreyerboyajian.com, dboyajian@dreyerboyajian.com and wdreyer@dreyerboyajian.com. Representing the defendants are: (1) Michael A. Duffy, Richard C. Godfrey, John F. Hagan, Mark S. Lillie and James T. McLaughlin, Jr. of Kirkland, Ellis Law Firm, 200 East Randolph Drive, Chicago, IL 60601, Phone: 312-861-2000, Fax: 312-861- 2200 and 312-660-0452, E-mail: maduffy@kirkland.com, rgodfrey@kirkland.com, jhagan@kirkland.com, mlillie@kirkland.com and jmclaughlin@kirkland.com; and (2) David R. Greene, Ronald W. Zdrojeski and David G. Hetzel of LeBoeuf, Lamb Law Firm, Phone: 860-293-3500 and 212-424-8000, Fax: 860-293-3555 and 212-424-8500, E-mail: dxgreene@llgm.com, david.hetzel@llgm.com and rzdrojes@llgm.com. GENERAL MOTORS: Recalls Vehicles Unable to Meet Safety Standards ---------------------------------------------------------------- General Motors Corp., in cooperation with the National Traffic Safety Administration, is recalling about 2,023 units of Chevrolet/Impala GMX 211 vehicles built in 2006. The company said certain vehicles are equipped with a manual passenger seat adjuster that failed to comply with the requirements of Federal Motor Vehicle Safety Standard No. 210, "Seatbelt Assembly Anchorages". The left floor mounting bracket may be mislocated. In a severe car crash, the seat adjuster may separate from the mounting bracket, increasing the risk of occupant injury. Consumers are advised to call Chevrolet at 1-800-630-2438 for inspection and, if necessary, replacement of the seat adjuster. GOOGLE INC: Security Expert Opposes Ark. Click Fraud Settlement --------------------------------------------------------------- Google Inc.'s $90 million settlement in a "click fraud" class action filed in Arkansas' Miller County Circuit Court by advertisers is being challenged, according to The Texarkana Gazette. Under the settlement, eligible advertisers in Google's network during the past four years will be granted an account credit that could be used toward future ads distributed by Google. In addition, it will extinguish any claims for overcharges that all U.S. Google advertisers might have. Google is the only company to agree to put an end to the lawsuit, which also named other Internet search sites. The settlement was reached earlier this year between Google and Lane's on behalf of Google's advertising clients. David Carter of Texarkana, an attorney for Joseph A. Kinney, a North Carolina security expert who operates the Web site SafeSpaces.com, whose company had ads on Google, argues that the settlement is unfair. Mr. Kinney ended his company's association with Google's advertising division in September 2005. Mr. Carter pointed out to Circuit Judge Joe Griffin, who is presiding over the case that plaintiffs attorneys have only obtained a negligible benefit for the class, which he said amounts only to "advertising credits with a value of less than a penny per dollar of injury suffered." Whereas, he said, attorneys are at the same time negotiating an enormous windfall for themselves: "an attorneys' fee of up to $30 million." Google says Mr. Kinney's motion is an attempt to derail the fairness hearing the court scheduled for July 24-25. It is expected to be the final hearing on Google's part of the case. According to the motion filed in court, Mr. Kinney didn't state a claim in his lawsuit on which he could seek relief. Google argues that Mr. Kinney's lawsuit did not make sense, since Judge Griffin does not have the power to reconsider his own ruling because no ruling exists. Mr. Carter further contends that Google elected to negotiate with plaintiffs in Arkansas who were facing an inevitable dismissal based upon lack of jurisdiction. The Google contracts provided for California as the mandated venue for claims for Google advertisers, he said. Mr. Kinney also argues that these four other actions in the settlement procedure are unfair in that: -- e-mail notice to inform potential claimants is inadequate because of spam filters and there is no means of officially notifying the class; -- Google's release includes claims for which no notice has been provided; -- the notice makes no mention of the class's waiver to their contractual rights to have the matter heard in California, the forum provided for in the Google Contracts; and -- notice deceptively advises the class that the court has "certified the class." Case Background Initially, the case was filed by Texarkana gift shop Lane's Gifts and Collectibles. Subsequently, in a suit filed on Feb. 4, 2005 by John C. Goodson and Dallas lawyer Joel Fineberg, other defendants were named, including: -- Yahoo! Inc., -- Overture Services Inc., -- America Online Inc., -- Ask Jeeves Inc., -- Looksmart Ltd., -- Lycos Inc., -- Netscape Communication Corp., -- Buena Vista Internet Group, -- Findwhat.Com Inc., and -- Time Warner Inc., (Class Action Reporter, May 17, 2006). The suit specifically alleged that defendants overcharged thousands of advertisers for bogus sales referrals through the "click fraud" strategy. The scheme involves sending fraudulent clicks to advertisers, effectively increasing their accounts (Class Action Reporter, March 10, 2006). According to the suit, defendants worked with one another in a conspiracy to create an online environment that harms advertisers. The search engine companies are being blamed for growing Internet pay-per-click advertising market, while failing to disclose they had routinely and systematically overcharged for PPC advertising revenue from their customers (Class Action Reporter, April 25, 2006). For more details, contact: (1) [Settlement Facilitator] George L. McWilliams of Patton, Roberts, McWilliams & Capshaw, LLP, 2900 St., Michael Drive, Fourth Floor Texarkana, TX 75503, Phone: 903-334-7000, Fax: 903-334-7007, E-mail: gmcwilliams@pattonroberts.com; (2) [Settlement Facilitator] Daralyn J. Durie of Keker & Van Nest, LLP, 710 Sansome Street San Francisco, CA 94111, Phone: 415-391-5400; and (3) [Settlement Objector] W. David Carter of Mercy, Carter, Tidwell, 1724 Galleria Oaks, Texarkana, TX 75503, Phone: (903) 794-9419, Fax: (903) 794-1268, Web site: http://www.mercylawfirm.com. ILLINOIS: Judge Continues Ban on Special-Purpose Funds' Transfer ---------------------------------------------------------------- Judge Leo Zappa of the Sangamon County Circuit Court has indefinitely extended a court order that blocks the state of Illinois from transferring about $344,000 out of two special- purpose funds and into the state's checkbook account, The Copley News Service reports The judge's decision was the latest development in a suit filed by A Brotherhood Aimed Towards Education (ABATE), an organization representing motorcycle enthusiasts, against Gov. Rod Blagojevich, Comptroller Dan Hynes and Treasurer Judy Baar Topinka. The ABATE suit, filed in June, contends that it is unconstitutional for the state to divert money from funds that are supposed to support motorcycle safety and off-road trail programs. State government has been using such "sweeps" of special-purpose funds to put more money in the general revenue fund and help pay for other expenses, according to the suit. ABATE is seeking a preliminary injunction to block the fund transfers and a trial to resolve whether the transfers are constitutional. Previously, ABATE attorneys sought to have the lawsuit declared a class action, which would delay or prevent the transfer of more than $34 million from dozens of other special-purpose funds. However, Judge Zappa only barred the state from transferring about $344,000 from two funds used to support motorcycle safety and off-road trail programs, while the more than $34 million from dozens of other special-purpose state funds were not blocked (Class Action Reporter, June 9, 2006). The two fundS that the judge's barred were the Cycle Riders Safety Training Fund and the Recreational Trails of Illinois Fund, which get money from fees that motorcyclists pay for licenses and vehicle titles. Judge Zappa pointed out that ABATE has no legal standing to get involved with special-purpose state funds that do not affect motorcyclists. His order lasts until July 10. ABATE attorneys plan to pursue efforts to make the order permanent after the temporary restraining order expires (Class Action Reporter, June 9, 2006). In the recent court hearing, ABATE attorney George Tinkham argued that transferring money from the two funds would cause "irreparable harm." He pointed out that the safety fund educates motorcyclists and results in fewer lost lives and less property damage. At that point, Judge Zappa told Mr. Tinkham that in his understanding the state government diverts money only from excess funds. However, Mr. Tinkham pointed out that Gov. Blagojevich's administration deliberately avoids spending money in the special-purpose funds, which creates "artificial surpluses." Assistant Attorney General Thomas Klein, who was in court representing the state, told Judge Zappa that the General Assembly, and not the governor, authorized the fund transfers. Mr. Zappa said his temporary restraining order from mid-June would remain in effect until he makes a ruling on ABATE's motion for a preliminary injunction. He did not set a date for the ruling though. Although the recent hearing focused on the two funds affecting motorcyclists, Mr. Tinkham told The Copley News Service afterward that he still hopes the judge will grant a preliminary injunction applying to other special-purpose funds as well. For more details, contact ABATE attorney George W. Tinkham, 423 W. Vine, Springfield, IL 62704-2932, Phone: (217) 753-2737 and (217) 789-1192, Fax: (217) 525-0823. INSURANCE COMPANIES: Miss. Katrina Suit Remanded to County Court ---------------------------------------------------------------- A suit by the state of Mississippi, which urges insurance companies to honor their policies and pay for damage caused by storm surge to policyholders, has been remanded back to the Chancery Court of Hinds County, Mississippi. Since the state is seeking injunction, the case will now be expedited, a March statement from Attorney General Jim Hood stated. The attorney general filed a civil action in the Chancery Court of Hinds County, Mississippi, First Judicial District on Sept. 15 against the insurance industry to protect Mississippi's property owners who incurred damage from Hurricane Katrina. The lawsuit seeks to make the insurance industry honor their contracts to pay for losses caused by Katrina, particularly their attempt to exclude damage caused directly or indirectly by water, whether or not driven by wind. The complaint asks the court to declare that certain insurance contract provisions are void and unenforceable as the same are contrary to public policy, are unconscionable, and are ambiguous (Class Action Reporter, Sept. 26, 2005). The provisions at issue attempt to exclude from coverage loss or damage caused directly or indirectly by water, whether or not driven by wind. The complaint states that these provisions should be strictly construed against the insurance companies who drafted the insurance policies and their exclusions. The complaint also states that the issuance of such insurance policies violates the Mississippi Consumer Protection Act. The complaint also asks the court, among other things, to enter a Temporary Restraining Order to immediately stop insurance companies from asking property owners to sign documents stating that their loss was caused by flood or water as opposed to wind, and to stop using water exclusions to deny or reduce coverage for hurricane damage or loss. The court is also being asked to enter a preliminary and permanent injunction with regard to these same matters. The suit is Civil Action No. G2005-1642 R1. Defendants are: -- Mississippi Farm Bureau Insurance, -- State Farm Fire and Casualty Company, -- Allstate Property and Casualty, -- Insurance Company, United Services, -- Automobile Association, Nationwide Mutual, -- Insurance Company, and "A" through "Z" Entities A copy of the Complaint and Motion for Temporary Restraining Order is at: http://ResearchArchives.com/t/s?d87 For more details, contact Jacob Ray of The Office of the Attorney General, P.O. Box 220, Jackson, MS 39205-0220, Phone: 601-359-3680, Telefax: (601) 359-2009. KUMHO TIRE: Recalls Light Truck Tires for Possible Crash Hazards ---------------------------------------------------------------- Kumho Tire, U.S.A., Inc., in cooperation with the U.S. National Traffic Safety Administration, is recalling about 78,321 units of Nanjing Kumho Road Venture. The recalls concern Nanjing Kumho Road Venture HT -- 824 and Road Venture -- KL78 light truck tires manufactured between Jan. 15 and Dec. 24, 2005. The company said these tires may develop a noticeable blister on the sidewall, which may eventually result in tire air pressure loss. Driving on an under-inflated tire could result in a vehicle crash. For more information on the recall, owners are advised to contact Kumho Tire at 909-428-3341. MERCK & CO: Deluge of Osteoporosis Drug Suits In the Works ---------------------------------------------------------- Trial lawyers are preparing to file additional cases against Merck & Co. over its second best-selling drug Fosamax, the Los Angeles Times, reports. According to Gary Wilson, a lawyer in the Minneapolis office of Robins, Kaplan, Miller & Ciresi, his firm is preparing to file about 20 cases against the pharmaceutical on behalf of potential plaintiffs who have taken the osteoporosis drug. Medical reports emerged linking long-term use of the Fosamax and similar drugs, known as bisphosphonates, to a condition, which causes patients' jawbones to rot and die. That disease is known as osteonecrosis. According to research, the incidence of osteonecrosis is relatively rare, but trial lawyers are organizing themselves and are getting in touch with patients who have taken Fosamax or the other drugs, for potential clients. Florida attorney, Timothy O'Brien, initiated a class action involving Fosamax in the U.S. District Court for the Middle District of Florida, on behalf of Boynton Beach resident Rochelle Kenig. He expects to file at least 300 more over the next few months. For more information on the emerging Fosamax litigation, contact Gary L. Wilson of Robins, Kaplan, Miller & Ciresi L.L.P., 2800 LaSalle Plaza, 800 LaSalle Avenue, Minneapolis, MN 55402, Phone: 612.349.8500, Toll Free: 1.800.553.9910, Fax: 612.339.4181, E- mail: glwilson@rkmc.com. The Florida suit is "Secrest et al.v. Merck & Co., Inc., Case No.2:06-cv-00191-VMC-DNF", filed in the U.S. District Court for the Middle District of Florida, under Judge Virginia M. Hernandez Covington, with referral to Judge Douglas N. Frazier. The defendant represented by Michael Joseph Corso of Henderson, Franklin, Starnes & Holt, P.A., P.O. Box 280 Ft. Myers, FL 33902-0280, Phone: 239/344-1170, Fax: 239/344-1200, E-mail: michael.corso@henlaw.com. The plaintiffs are represented by: (1) David F. Ennis of Ennis & Ennis, PA, 110 E Broward Blvd, Ste 1700, Ft Lauderdale, FL 33301, Phone: 954/315-3934, Fax: 954/315-3914, E-mail: david@ennislaw.com; (2) Timothy M. O'Brien of Levin, Papantonio, Thomas, Mitchell, Echsner & Proctor, P.A., 316 S. Baylen, Suite 600, P.O. Box 12308, Pensacola, FL 32502, Phone: 850/435-7084, Fax: 850-435-7019, E-mail: tobrien@levinlaw.com; and (3) Michael J. Ryan of Krupnick, Campbell, Malone, et al., 700 S.E. 3 Avenue, Courthouse Law Plaza, Suite 100, Ft. Lauderdale, FL 33316, Phone: 954/763-8181, Fax: 954/763-8292, E-mail: mryan@krupnicklaw.com. MICROSOFT CORP: Vermont Schools to Receive $4.7M in Settlement -------------------------------------------------------------- A total of 135 schools will share $4.7 million worth of computers and equipment in the settlement of a class action by Vermont consumers against Microsoft Corp., The Associated Press reports. The state is expected to start distributing vouchers to the eligible public schools this week. The vouchers will be used to buy the equipment in lieu of cash. A copy of the Notice of Settlement is available for free at: http://ResearchArchives.com/t/s?d97 Previously, the software giant was accused in an antitrust lawsuit of violating the state's consumer fraud act. A Windham Superior Court judge later approved a motion to make that case a class action. Under the terms of the settlement, reached in 2004, consumers and businesses that purchased certain Microsoft products both directly and indirectly between March 31, 1995, and Dec. 31, 2002, could apply for a reimbursement voucher to buy computer hardware and software and other technology from any manufacturer. The company agreed to pay as much as $9.7 million in vouchers to consumers and schools. The number of class members who claim vouchers, according to the company, determines the number of vouchers issued. The vouchers will be available to schools in which 40 percent of students are eligible for free and reduced lunch. The vouchers' value is based on enrollment and ranges from $1,500 for the Granville School to $168,000 for Brattleboro Union High School. A Microsoft spokeswoman pointed out that similar lawsuits have been settled in 16 states and dismissed in 13, while a handful are still pending. Back in 2000, the company faced a flurry of lawsuits for using its market power to force customers to pay higher prices for its Windows operating system. These suits allege that the company competed unfairly and unlawfully monopolized alleged markets for operating systems and certain software applications, and they seek to recover alleged overcharges for these products (Class Action Reporter, Feb. 6, 2006). Based in Washington, Microsoft Corp. -- http://www.microsoft.com -- provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, interactive television, and Internet access. The suit is "Elkins et. al v. Microsoft Corp., Docket No. 165-4- 01," filed in Windham County Superior Court, Newfane, Vermont under Judge Karen R. Carroll. Plaintiffs' counsel are: (1) Johnson & Perkinson, 1690 Williston Road, P.O. Box 2305 South Burlington, Vermont 05403, Phone 802-862- 0030 or (Toll Free) 888-276-5446, Fax: 802-862-0060, Website: http://www.jpclasslaw.com/contact.html;and (2) Potter Stewart, Jr. Law Offices, P.C., The Merchants Bank Building, 205 Main Street, Suite 8, Brattleboro, VT 05301, Phone: 802-257-7244, E-mail: khamilton@potterstewartlaw.com, Website: http://www.potterstewartlaw.com/contact.html MURPHY OIL: Suit Over La. Oil Contamination on "Fast Track" ----------------------------------------------------------- The lawsuit that accuses Murphy Oil Corp. of contaminating 6 miles of coastland in St. Bernard Parish, Louisiana, in the aftermath of Hurricane Katrina, is on a "fast track" to being possibly concluded, The New Orleans City Business reports. The suit was filed by property owner Patrick Joseph Turner on behalf of at least 500 property owners in St. Bernard Parish, who are claiming damages as a result of crude oil spillage from one of the company's storage tankers. The contaminated area in St. Bernard Parish included 6,000 households with at least 3,500 damaged families involved in the suit. According to Sidney Torres, head counsel of the 25 law firms for the plaintiffs suing the company over the contamination, they're setting some sort of record in going for a rapid means of concluding the cases. He adds, "Everybody agreed to fast track this. That never happens." Judge Eldon Fallon of the U.S. District Court for the Eastern District of Louisiana already slated an Oct. 6 trial date for the case. Payouts have already totaled $150 million, according to Mindy West, a Murphy Oil spokeswoman. The company paid nearly $80 million in settlements with about 3,000 households not involved in the suit. The company paid another $70 million in cleanup costs, which insurance will cover. Already, Mr. Torres won a request to start receiving 7 percent of the settlements the company is negotiating with the people who opt out of the suit to settle on their own. Judge Fallon sided with Mr. Turner, part of Mr. Torres' team, who argued the company expanded its settlement program to compensate residents outside the "settlement zone" it established in the fall 2005. The company already began to settle an unspecified amount of claims at $2,700 per household with residents who live outside the zone in a second map the Environmental Protection Agency defines as the "oil-plume perimeter." Though the Agency for Toxic Substances and Disease Registry declared that nearly all oil has been recovered or evaporated, eliminating any long-term effect, the EPA is still monitoring cleanup. The company is continuing soil remediation. To date, 117 homes have been excavated and 64 yards have been refilled with clean soil. A total of 8,097 interior and exterior sediment samples were collected from 4,859 addresses and the EPA is monitoring the area, according to Ginny Narsete, public information officer with the EPA in New Orleans. The suit is "Turner v. Murphy Oil USA, Inc., Case No. 2:05-cv- 04206-EEF-JCW," filed in the U.S. District Court for the Eastern District of Louisiana under Judge Eldon E. Fallon with referral to Judge Joseph C. Wilkinson, Jr. Representing the plaintiffs are: (1) Mickey P. Landry of Landry & Swarr, LLC, 1010 Common St., Suite 2050, New Orleans, LA 70112, Phone: 504-299- 1214, E-mail: mlandry@landryswarr.com; (2) N. Madro Bandaries of Amato & Creely, 901 Derbigny St., P.O. Box 441, Gretna, LA 70054, Phone: (504) 367-8181, E-mail: madro@att.net; and (3) Daniel E. Becnel, Jr. of Law Offices of Daniel E. Becnel, Jr., 106 W. Seventh St., P.O. Drawer H. Reserve, LA 70084, Phone: 985-536-1186, E-mail: dbecnel@becnellaw.com. Representing the defendants are, George A. Frilot, III and Patrick J. McShane of Frilot Partridge Kohnke & Clements, Phone: 337-988-5422 and (504) 599-8000, E-mail: gfrilot@fpkc.com and pmcshane@fpkc.com. NEW JERSEY: Camden Pays $50T to Law Firm in Water Supply Suit ------------------------------------------------------------- The Camden City Council approved an additional payment of $50,000 to the law firm representing it in a class action over allegations the city supplied contaminated water to its residents, the Courier Post Online reports. The payment to law firm Blank, Rome, Comisky & McCauley brings the total cost of the lawsuit to the city to $350,000, said City Council President Angel Fuentes. In 2002, a group of 3,500 residents of Camden, New Jersey joined a lawsuit against the city, neighboring Pennsauken and several companies that they say were responsible for contaminated water reaching the taps of two-thirds of the city's residents over a 24-year period, Associated Press Newswires reports (Class Action Reporter, June 6, 2002). Keith A. Walker, spokesman for Camden Citizens Against Contaminated Water, then said the group filed the lawsuit in Camden Superior Court. The citizens group wanted the defendants to provide medical monitoring for Camden residents south of the Cooper River, who received water from the Puchack Well Field in Pennsauken. The suit also asked for reimbursement of water bills. Blank, Rome, Comisky & McCauley on the Net: http://www.blankrome.com/. SONIC AUTOMOTIVE: Reaches Settlement in Calif. Fraud Complaints --------------------------------------------------------------- A settlement reached between the parent of a Honda dealership in Santa Monica, California and the Los Angeles District Attorney's Office is threatening to affect a pending class action, according to the Santa Monica Daily Press. Under a proposed settlement, customers of the dealership formerly owned by Kramer Motors Inc. are eligible for reimbursement for money fraudulently taken from them when they purchased vehicles from the dealer. The dealership is now owned by Sonic Automotive Inc. It has so far paid close to $400,000 to nearly 700 victims between 2000 and 2002, according Los Angeles Deputy District Attorney Dana Aratani. However, by signing the claim and receiving a reimbursement check, customers are waiving their right to pursue further litigation and cannot receive additional damages in the future, according to the report. A class action is currently pending over an alleged scheme of former employees of the dealership to charge false state taxes and fees, and wrong interest rates to customers wanting to buy or lease vehicles. The suit was filed in Sept. 25, 2002. Representing the plaintiffs in the class action is attorney Dan Hoffman of Ott & Hoffman, Upland, California (San Bernardino Co.). THUMANN'S INC: Recalls Proscuitto Ham for Possible Contamination ---------------------------------------------------------------- Thumann's Inc. in Carlstadt, New Jersey, in cooperation with the U.S. Department of Agriculture's Food Safety and Inspection Service, is voluntarily recalling approximately 664 pounds of boneless proscuitto ham that may contain Staphylococcus aureus enterotoxin. The product being recalled are cartons containing two half pieces of "Thumann's Boneless Prosciutto, Product Of Canada." Each label bears the establishment number "507" inside the Canadian seal of inspection and the lot code "00634." The proscuitto was produced on April 24, 2006. The product was shipped to distribution centers and retail establishments across the U.S. Picture of the product label: http://www.fsis.usda.gov/images_recalls/018_2006_Thumanns.jpg The problem was discovered through testing done by the Canadian Food Inspection Agency. FSIS has received no reports of illness associated with consumption of this product. Common symptoms of ingesting products with Staphylococcus aureus enterotoxin include nausea, vomiting, diarrhea and abdominal cramping. Consumers and media with questions about the recall are advised to contact Thumann's purchasing director Warren Lisa at (201) 935-3636 ext. 384. Consumers with food safety questions can phone the toll-free USDA Meat and Poultry Hotline at 1-888-MPHotline (1-888-674- 6854). The hotline is available in English and Spanish and can be reached from l0 a.m. to 4 p.m. (Eastern Time) Monday through Friday. Recorded food safety messages are available 24 hours a day. VIRGIN ISLANDS: Faces Motion for Contempt Over Jail Improvement --------------------------------------------------------------- The American Civil Liberties Union filed two motions with a district court in relation to the implementation a settlement of a class action charging inhumane conditions for mentally ill inmates in the Virgin Island Corrections Bureau. One motion is asking for a fourth contempt ruling against the state and another asking for the jail system to be placed under federal receivership. ACLU had claimed that Cluster 3 inmates are receiving almost no psychiatric attention, are taking medications on expired prescriptions and are not adequately protected from violent attempts by themselves or other inmates. The parties reached a settlement in 1994, which is currently being monitored by Senior District Judge Stanley Brotman. Judge Brotman has found the government in contempt of court in 1997, 2001 and 2003. Concurrently, Virgin Islands Attorney General Kerry Drue has asked a federal judge to transfer the custody of a violent and mentally unstable man jailed in the state's Justice Department to a civil guardian, according to the Virgin Islands Daily News. Jonathan Ramos, who has been an inmate at the Farrelly Criminal Justice Complex Jail since his arrest four years ago on suspicion of stealing a bicycle, was recently freed of grand larceny charges. He was absolved because he had spent prison time more than what prosecutors would recommend for his theft. Mr. Drue said that since the former inmate is no longer facing criminal charges his care and custody should be entrusted to a civil guardian under the supervision of the state Superior Court. Mr. Ramos has been diagnosed with paranoid schizophrenia and antisocial personality disorder. The attorney general's motion asks Judge Brotman to vacate an order he issued on March 22 instructing the Justice Department to move Ramos to a psychiatric facility by May 22. ACLU's motions came as a response to the state's failure to adhere to the order, said Eric Balaban, an attorney with the ACLU's National Prison Project. WILD SIDE: Recalls Beef Stick Products with Incomplete Label ------------------------------------------------------------ Wild Side Processing, LLC, in Saginaw, Minnesota, in cooperation with the U.S. Department of Agriculture's Food Safety and Inspection Service, is voluntarily recalling approximately 765 pounds of beef stick products because they were mislabeled. The products require refrigeration, which is not stated on the label. These products are subject to recall: -- "Maple Hill Smokehouse & Meats Pepperoni Beef Stick," Net Wt.: 0.16 or 0.32 lb. -- "Maple Hill Smokehouse & Meats Beef Stick," Net Wt.: 0.16 or 0.32 lb. -- "Maple Hill Smokehouse & Meats Jalapeno & Cheddar Beef Stick," Net Wt: 0.16 or 0.32 lb. -- "Maple Hill Smokehouse & Meats Red Pepper Beef Stick," Net Wt.: 0.16 or 0.32 lb. Each beef stick displays the establishment number "EST. 20495" inside the USDA seal of inspection. On the back of each beef stick is a small white date sticker. The products subject to the recall contain one of these codes: "03226," "04136," "05096," "05176," "05236" or "06096." Pictures of product labels: http://www.fsis.usda.gov/images_recalls/019_2006_Labels1.jpg http://www.fsis.usda.gov/images_recalls/019_2006_Labels2.jpg The problem was discovered by FSIS inspection program personnel. FSIS has received no reports of illnesses associated with consumption of these products. The beef sticks were produced between March 22 and June 9, 2006 and were distributed to retail outlets in northeast Minnesota and northwest Wisconsin. Consumers and media with questions about the recall are advised to contact company President Kevin Zegan at (218) 729-6859. Consumers with food safety questions can "Ask Karen," the FSIS virtual representative available 24 hours a day at the agency's Web site: http://www.fsis.usda.gov/Food_Safety_Education/Ask_Karen/index.a sp#Question. The toll-free USDA Meat and Poultry Hotline 1-888-MPHotline (1- 888-674-6854) is available in English and Spanish and can be reached from l0 a.m. to 4 p.m. (Eastern Time) Monday through Friday. Recorded food safety messages are available 24 hours a day. Meetings, Conferences & Seminars * Scheduled Events for Class Action Professionals ------------------------------------------------- July 19-20, 2006 LITIGATION MANAGEMENT GUIDELINES CONFERENCE Mealey Publications The Ritz-Carlton Battery Park, New York Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 19-20, 2006 CLASS ACTION LITIGATION 2006: PROSECUTION AND DEFENSE STRATEGIES Practising Law Institute Chicago, IL Contact: 1-800-260-4PLI; 212-824-5710; info@pli.edu July 20-21, 2006 LITIGATION MANAGEMENT GUIDELINES CONFERENCE Mealey Publications The Ritz-Carlton Battery Park, New York Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 27-28, 2006 CLASS ACTION LITIGATION 2006: PROSECUTION AND DEFENSE STRATEGIES Practising Law Institute New York, NY Contact: 1-800-260-4PLI; 212-824-5710; info@pli.edu September 26-27, 2006 REINSURANCE ARBITRATION American Conference Institute New York Contact: https://www.americanconference.com; 1-888-224-2480 September 28-30, 2006 LITIGATING MEDICAL MALPRACTICE CLAIMS ALI-ABA Boston Contact: 215-243-1614; 800-CLE-NEWS x1614 October 12-13, 2006 MASS TORTS MADE PERFECT SEMINAR Mass Torts Made Perfect Wynn, Las Vegas, Nevada Contact: 1-800-320-2227; 850-916-1678 November 16-17, 2006 CONFERENCE ON LIFE INSURANCE COMPANY PRODUCTS: CURRENT SECURITIES, TAX, ERISA, AND STATE REGULATORY AND COMPLIANCE ISSUES ALI-ABA Washington, D.C. Contact: 215-243-1614; 800-CLE-NEWS x1614 November 30-December 1, 2006 ASBESTOS LITIGATION IN THE 21ST CENTURY ALI-ABA New Orleans Contact: 215-243-1614; 800-CLE-NEWS x1614 March 2007 MASS TORTS MADE PERFECT SEMINAR Mass Torts Made Perfect Loews Hotel, Miami, Florida Contact: 1-800-320-2227; 850-916-1678 May 3-4, 2007 Accountants' Liability CM076 ALI-ABA Boston Contact: 215-243-1614; 800-CLE-NEWS x1614 * Online Teleconferences ------------------------ July 1-30, 2006 HBA PRESENTS: AUTOMOBILE LITIGATION: DISPUTES AMONG CONSUMERS, DEALERS, FINANCE COMPANIES AND FLOORPLANNERS CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 CONSTRUCTION DISPUTES: TEXAS RESIDENTIAL CONSTRUCTION DEFECT LIABILITY CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 HBA PRESENTS: ETHICS IN PERSONAL INJURY CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 IN-HOUSE COUNSEL AND WRONGFUL DISCHARGE CLAIMS: CONFLICT WITH CONFIDENTIALITY? CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 BAYLOR LAW SCHOOL PRESENTS: 2004 GENERAL PRACTICE INSTITUTE -- FAMILY LAW, DISCIPLINARY SYSTEM, CIVIL LITIGATION, INSURANCE & CONSUMER LAW UPDATES CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 HBA PRESENTS: "HOW TO CONSTRUE A CONTRACT IN BOTH CONTRACT AND TORT CASES IN TEXAS" CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 1-30, 2006 CONSTRUCTION DISPUTES: TEXAS RESIDENTIAL CONSTRUCTION DEFECT LIABILITY CLEOnline.Com Contact: 512-778-5665; info@cleonline.com July 11, 2006 PPA AND EPHEDRA Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 13, 2006 TEFLON LITIGATION TELECONFERENCE Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 20, 2006 ASBESTOS LEGISLATION - IS A SOLUTION TO THE CRISIS AROUND THE CORNER? Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 25, 2006 UNDERSTANDING HOW AN MDL WORKS Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com July 27, 2006 DISCRIMINATION AGAINST RETAILERS Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com August 9, 2006 HEARING LOSS CLAIMS Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com time August 10, 2006 SULFATES LITIGATION Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com August 15, 2006 VOLATILE ORGANIC COMPOUNDS Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com time August 16, 2006 ASBESTOS SCREENINGS Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com August 17, 2006 EMERGING DRUGS AND DEVICES Contact: 1-800-MEALEYS; 610-768-7800; mealeyseminars@lexisnexis.com time CACI: CALIFORNIA'S NEW CIVIL JURY INSTRUCTIONS CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 22ND ANNUAL RECENT DEVELOPMENTS (2004) CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 CIVIL LITIGATION PRACTICE: 23RD ANNUAL RECENT DEVELOPMENTS (2005) CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 EFFECTIVE DIRECT AND CROSS EXAMINATION CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 PUNITIVE DAMAGES: MAXIMIZING YOUR CLIENT'S SUCCESS OR MINIMIZING YOUR CLIENT'S EXPOSURE CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 STRATEGIC TIPS FOR SUCCESSFULLY PROPOUNDING & OPPOSING WRITTEN DISCOVERY CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 SUMMARY JUDGMENT AND OTHER DISPOSITIVE MOTIONS CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 TORTS PRACTICE: 19TH ANNUAL RECENT DEVELOPMENTS (2004) CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 TORTS PRACTICE: 20TH ANNUAL RECENT DEVELOPMENTS (2005) CEB Online Contact: customer_service@ceb.ucop.edu or 1-800-232-3444 ADVERSARIAL PROCEEDINGS IN ASBESTOS BANKRUPTCIES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com ASBESTOS BANKRUPTCY - PANEL OF CREDITORS COMMITTEE MEMBERS LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com EXPERT WITNESS ADMISSIBILITY IN MOLD CASES LawCommerce.Com/Mealey's Online Streaming Video Contact: customerservice@lawcommerce.com INTRODUCTION TO CLASS ACTIONS AND LARGE RECOVERIES Big Class Action Contact: seminars@bigclassaction.com NON-TRADITIONAL DEFENDANTS IN ASBESTOS LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com PAXIL LITIGATION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECENT DEVELOPMENTS INVOLVING BAYCOL Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com RECOVERIES Big Class Action Contact: seminars@bigclassaction.com SELECTION OF MOLD LITIGATION EXPERTS: WHO YOU NEED ON YOUR TEAM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com SHOULD I FILE A CLASS ACTION? LawCommerce.Com / Law Education Institute Contact: customerservice@lawcommerce.com THE EFFECTS OF ASBESTOS ON THE PULMONARY SYSTEM Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com THE STATE OF ASBESTOS LITIGATION: JUDICIAL PANEL DISCUSSION Online Streaming Video LawCommerce.Com/Mealey's Contact: customerservice@lawcommerce.com TRYING AN ASBESTOS CASE LawCommerce.Com Contact: customerservice@lawcommerce.com THE IMPACT OF LORILLAR ON STATE AND LOCAL REGULATION OF TOBACCO SALES AND ADVERSTISING American Bar Association Contact: 800-285-2221; abacle@abanet.org ________________________________________________________________ The Meetings, Conferences and Seminars column appears in the Class Action Reporter each Wednesday. Submissions via e-mail to carconf@beard.com are encouraged. New Securities Fraud Cases BROOKS AUTOMATION: Charles H. Johnson Files Stock Suit in Mass. --------------------------------------------------------------- Charles H. Johnson & Associates filed a class action in the U.S. District Court for the District of Massachusetts against Brooks Automation, Inc. and certain of its officers and directors, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded securities of Brooks between July 25, 2001 and May 22, 2006, inclusive. The complaint alleges that during the class period, defendants violated Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934 and Sections 11, 12 and 15 of the Securities Act of 1933 by publicly issuing a series of false and misleading statements regarding the company's business and financial results, thus causing Brooks' shares to trade at artificially inflated prices. The complaint alleges that on March 18, 2006, The Wall Street Journal published a story that identified Brooks as one of several companies "with wildly improbable option-grant patterns." On April 26, 2006, Brooks disclosed that its Board of Directors created a special committee to conduct an internal review of matters related to past stock option grants. On May 11, 2006, Brooks issued a press release which stated, "the cwill be required to correct certain U.S. Securities and Exchange Commission filings, including particularly its financial statements contained in filings for some or all of the periods commencing in fiscal 1999 and ending in fiscal 2005...(t)he company believes that it accounted for certain matters concerning stock options incorrectly..." On May 18, 2006, Amin J. Khoury and Roger D. Emerick reportedly resigned from the company's Board. The complaint also alleges that the SEC is conducting an informal inquiry concerning stock option grant practices to determine whether violations of the federal securities laws have occurred, and Brooks has allegedly received a grand jury document subpoena from the U.S. Attorney for the Eastern District of New York requesting records pertaining to the granting of stock options. The complaint further alleges that during the class period, certain company insiders sold approximately 320,000 Brooks shares at artificially inflates prices for proceeds of approximately $6.4 million. For more information, contact Neil Eisenbraun, Esq. of Charles H. Johnson & Associates, 2599 Mississippi Street, New Brighton, MN 55112, Phone: (651) 633-5685, E-mail: cjohnsonlaw@gmail.com. HERLEY INDUSTRIES: Berger & Montague Files Stock Suit in Penn. -------------------------------------------------------------- Berger & Montague, P.C. filed a class action on behalf of investors in Herley Industries, Inc. The suit is pending in U.S. District Court for the Eastern District of Pennsylvania. The suit seeks recovery on behalf of investors who purchased the publicly traded securities of Herley between Oct. 1, 2001 and June 14, 2006. According to the complaint, Herley and its top officers defrauded persons investing in Herley securities, violating the federal securities laws. On June 6, 2006, Herley revealed that the company and its chairman, Lee N. Blatt, had been indicted on multiple charges, in connection with excessive profits improperly "earned" by Herley on contracts with the U.S. Department of Defense. On June 13, 2006, the company announced that its operations in Lancaster, Pennsylvania, Woburn, Massachusetts, Chicago, Illinois, and a subsidiary in Farmingdale, New York had been suspended from receiving new contract awards from the U.S. Government. Government contracts had historically accounted for approximately 25% of Herley's business. In response to these disclosures, Herley stock plunged on very high volume, from $19.38 on June 2, 2006 to $9.21 on June 14, 2006. Lead plaintiff filing deadline is no later than Aug. 14, 2006. For more information, contact Sherrie R. Savett, Esq., Douglas M. Risen, Esq., Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103, Phone: 888-891-2289 or 215-875-3000. TERAYON COMMUNICATION: Glancy Binkow Files Securities Fraud Suit ---------------------------------------------------------------- Glancy Binkow & Goldberg LLP initiated a class action in the U.S. District Court for the Northern District of California against Terayon Communication Systems, Inc. on behalf of I.B.L. Investments Ltd. and other public investors who purchased the common stock of Terayon between Oct. 28, 2004 and March 1, 2006. Named defendants in the suit are: -- Terayon Communication Systems, Inc.; -- Zaki Rakib, company board chairman and secretary; -- Jerry D. Chase, chief executive officer and director; -- Mark A. Richman, senior VP finance and admin. and chief executive officer; and -- Edward Lopez, senior VP, general counsel. The complaint alleges that throughout the class period, defendants' representations concerning the company's financial condition, impressive income growth, and various other statements in the company's quarterly and annual financial results and SEC filings were materially false and misleading. It further alleges that defendants knew or recklessly disregarded the company's reported financial results and growth were attributable to improper accounting practices, including improper revenue recognition practices, which resulted in an overstatement of the company's revenues. Unknown to investors, the company's internal controls and procedures and, as a result, the company's projections and reported financial results were seriously flawed. Furthermore, the company's earnings were not increasing in the amounts that had been represented by defendants, and the company's reported earnings statements for the interim periods were in violation of Generally Accepted Accounting Principles. The complaint claims that on Nov. 7, 2005, after the market closed, Terayon announced that the company "is reviewing the recognition of revenue for certain transactions during prior periods." More specifically, an internal review was initiated after the company determined "that certain revenues recognized in the second half of fiscal year 2004 from a customer may have been recorded in incorrect periods." The complaint further alleges that on March 1, 2006, Terayon issued a press release announcing that the company's "consolidated financial statements for the year ended Dec. 31, 2004 and for the four quarters of 2004 and the first two quarters of 2005 should no longer be relied upon and will be restated." In response to these revelations, the next day, March 2, 2006, Terayon's stock price fell $0.37 per share-a more than 13% decline in the stock's value - on extremely heavy trading volume of more than four million shares. A copy of the complaint is available free of charge at: http://ResearchArchives.com/t/s?d80 The suit is "I.B.I. Investments LTD v. Terayon Communication Systems, Inc et al., Case No. 3:06-cv-03936-MJJ," filed in the U.S. District Court for the Northern District of California under Judge Martin J. Jenkins. Representing the plaintiffs is Lionel Z. Glancy of Glancy Binkow & Goldberg LLP, 1801 Avenue of The Stars, Suite 311, Los Angeles, CA 90067, Phone: 310-201-9150, Fax: 310-201-9160, E- mail: info@glancylaw.com. ********* A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the Class Action Reporter. Submissions via e-mail to carconf@beard.com are encouraged. Each Friday's edition of the CAR includes a section featuring news on asbestos-related litigation and profiles of target asbestos defendants that, according to independent researches, collectively face billions of dollars in asbestos-related liabilities. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Glenn Ruel Senorin, Maria Cristina Canson, and Janice Mendoza, Editors. Copyright 2006. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *