/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/090903.mbx C L A S S A C T I O N R E P O R T E R Thursday, September 3, 2009, Vol. 11, No. 174 Headlines ACCREDITED HOME: Committee Withdraws Objection to $22 Mil. Deal ACXIOM CORP: Fla. DPPA Settlement Notice Extended to DMV Offices ANADARKO PETROLEUM: Sept. 8 Is "Tronix" Lead Plaintiff Deadline BRITISH COLUMBIA: Charity Groups Consider Suing Over Budget Cuts BROADCOM CORP: $118 Mil. Settlement Will Stay Class Action Suit CINTAS CORP: Net Cost of Driver Overtime Settlement is $12 Mil. EXTENDICARE HEALTH: Wisconsin Court Tosses Class Action Lawsuit INTERNATIONAL GAME: Directors Sued for Securities Fraud in Nev. KERR-MCGEE: Sept. 8 Is "Tronix" Lead Plaintiff Deadline MARVEL ENTERTAINMENT: Shareholders Want More Money from Disney MERRILL LYNCH: Judge Approves Settlement of BofA Buyout Lawsuit MIDLAND CREDIT: Charged With Illegal Debt Collection Practices NEW YORK: 8% Parking Tax for Non-Residents Comes Under Fire PAYPAL INC: Merchants Sue Over Improper Handling of Disputes PEDERNALES ELECTRIC: Fee Fight Rages On, Texas Lawyer Reports PITNEY BOWES: Settles Blast-Fax Case for Coupons & Legal Fees R.L. POLK: Fla. DPPA Settlement Notice Extended to DMV Offices SAN DIEGO GAS: Inlanders Claim Utility Charging Improper Rates ST. PAUL, MINN: 27 Arrested Protesters Prepare to Sure City THELEN LLP: Plaintiffs' Lawyer Predicts Bankruptcy Filing WELLS FARGO: Calif. Court Certifies Minority Mortgagor Class New Securities Fraud Cases IMMUNOSYN CORPORATION: Shareholder Suit Filed in S.D. Tex. J.P. JEANNERET: Lowey Dannenberg Files Madoff Suit in S.D.N.Y. ULTRASHORT FINANCIALS: Pearson Simon Files Fraud Suit in D. Md. ********* ACCREDITED HOME: Committee Withdraws Objection to $22 Mil. Deal --------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Accredited Home Lenders Holding Co.'s cases has withdrawn its objection to the company's $22 million settlement in a securities class action, according to Law360. The Committee did not give a reason for the withdrawal of their objection to the settlement, the report says. In March 2007, AHLHC was served with a class action entitled Atlas v. Accredited Home Lenders Holding Co., et al., Case No. 07-cv-_____ (S.D. Calif.), alleging violations of federal securities laws by AHLHC and certain members of senior management. Accredited Home Lenders Holding Co. -- http://www.accredhome.com/ -- is a mortgage banker servicing U.S. markets for conforming and non-prime residential mortgage loans operating throughout the U.S. and in Canada. Founded in 1990, the company is headquartered in San Diego. The Company was acquired by Lone Star Funds for $300 million in October 2007. Lone Star also owns Bruno's Supermarkets LLC and Bi-Lo LLC, two grocery retailers in Chapter 11. Accredited Home and its affiliates filed for Chapter 11 on May 1, 2009 (Bankr. D. Del. Lead Case No. 09-11516). Gregory G. Hesse, Esq., Lynnette R. Warman, Esq., and Jesse T. Moore, Esq., at Hunton & William LLP, represent the Debtors as counsel. Laura Davis Jones, Esq., James E. O'Neill, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as Delaware counsel. Kurtzman Carson Consultants is the Debtors' claims agent. Andrew I Silfen, Esq., Schuyler G. Carroll, Esq., Robert M. Hirsch, Esq., at Arent Fox LLP in New York, and Jeffrey N. Rothleder, Esq., at Arent Fox LLP in Washington, DC, represent the official committee of unsecured creditors as co-counsel. Neil R. Lapinski, Esq., and Shelley A. Kinsella, Esq., at Elliott Greenleaf, represent the Committee as Delaware and conflicts counsel. At the time of its bankruptcy filing, Accredited Home's estimated its assets at $10 million to $50 million and its debts from $100 million to $500 million. ACXIOM CORP: Fla. DPPA Settlement Notice Extended to DMV Offices ---------------------------------------------------------------- In addition to providing notice by publication, the Honorable Jose E. Martinez directed the parties in Fresco, et al. v. R.L. Polk & Co. and Acxiom Corp., Case No. 07-60695 (S.D. Fla.), to deliver notice of their proposed settlement to each state's department of motor vehicles and request that the notice be posted in each public office. Project Manager Leslie Wissner at Garden City Group, Inc., the Notice Administrator in this class action proceeding, took charge of that, and distributed scores of notices to each state's DMV last month. A fairness hearing is scheduled for Dec. 7, 2009, at 10:00 a.m., to consider the proposed settlement. The suit alleges that R.L. Polk & Co. and Acxiom Corp. knowingly obtained, used, or disclosed personal information from motor vehicle records in violation of a federal law, the Driver's Privacy Protection Act. The Garden City Group, Inc., has established a Web site at http://www.dppasettlement2.com/to provide more information about the litigation and the proposed settlement. Representing the plaintiffs are: Tod N. Aronovitz, Esq. Aronovitz Trial Lawyers 150 W Flagler Street, Suite 2700 Museum Tower Miami, FL 33130 Phone: 305-372-2772 Fax: 305-375-0243 E-mail: ta@aronovitzlaw.com - and - Mark S. Fistos, Esq. James Hoyer Newcomer & Smiljanich 3301 Thomasville Road, Suite A-200 Tallahassee, FL 32308 Phone: 850-325-2680 Fax: 850-325-2681 - and - Lawrence Dean Goodman, Esq. Devine Goodman Pallot & Wells 777 Brickell Avenue, Suite 850 Miami, FL 33131 Phone: 305-374-8200 Fax: 305-374-8208 E-mail: lgoodman@devinegoodman.com - and - James Kellogg Green, Esq. 222 Lakeview Avenue, Suite 1650 Esperante West Palm Beach, FL 33401 Phone: 561-659-2029 Fax: 561-655-1357 E-mail: jameskgreen@bellsouth.net R.L. Polk & Co. is represented by: Christopher M. Mason, Esq. Nixon Peabody, LLP 437 Madison Avenue New York, NY 10022 - and - Scott J. Frank, Esq. Butler Pappas Weihmuller Katz Craig, LLP One South Harbour Island Boulevard Tampa, FL 33602 Acxicom is represented by: Juan C. Enjamio, Esq. Hunton & Williams, LLP Mellon Financial Center 1111 Brickell Ave., Suite 2500 Miami, FL 33131 ANADARKO PETROLEUM: Sept. 8 Is "Tronix" Lead Plaintiff Deadline ------------------------------------------------------- Barroway Topaz Kessler Meltzer & Check, LLP reminds all purchasers of Tronox, Inc. (Pink Sheets: TRXAQ, TRXBQ) securities between November 28, 2005, and January 12, 2009, inclusive, that September 8, 2009, is the lead plaintiff deadline in the class action currently pending in the United States District Court for the Southern District of New York. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Darren J. Check, Esq., or David M. Promisloff, Esq., at Barroway Topaz Kessler Meltzer & Check, LLP, toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com. For more information about Barroway Topaz Kessler Meltzer & Check, please visit http://www.btkmc.com/ The case is styled Barnes v. Kerr-McGee Corporation, et al., Case No. 09-cv-7116 (S.D.N.Y.). A copy of the Complaint filed in this action is available from the Court, or can be viewed at http://www.btkmc.com/ The Complaint charges Kerr-McGee Corporation, Anadarko Petroleum Corporation and certain of Kerr-McGee and Tronox's officers and directors with violations of the federal securities laws. Tronox is not named in this action as a defendant because it filed for bankruptcy protection in January 2009. Tronox is a producer and marketer of titanium dioxide pigment. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's reserves for environmental liabilities failed to include reserves for other identified, but undisclosed sites; (2) that the Company faced extraordinarily high exposure regarding its environmental liabilities, which it failed to fully disclose to its shareholders; (3) that the Company's reserves for environmental liabilities were wholly inadequate; (4) that the Company would face extremely high tort liabilities, particularly for wood treatment claims; (5) that the Company's financial statements and, specifically the methodology used to calculate the Company's environmental liabilities reserve, were not prepared in accordance with Generally Accepted Accounting Principles; (6) that the Company lacked adequate internal and financial controls; (7) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (8) that, as a result of the foregoing, defendants' statements about the Company's financial well-being and future business prospects were lacking in any reasonable basis when made. As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class Members have suffered significant losses and damages. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. If you are a member of the class described above, you may, not later than September 8, 2009, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Contact: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff, Esq. 280 King of Prussia Road Radnor, PA 19087 Telephone: 1-610-667-7706 E-mail: info@btkmc.com BRITISH COLUMBIA: Charity Groups Consider Suing Over Budget Cuts ---------------------------------------------------------------- Dirk Meissner and Terri Theodore at The Canadian Press report that the Canadian province of British Columbia has slashed grants to charity groups as they struggle with a large budget deficit, but the groups say the government won't get out of the red at their expense and they've threatened a lawsuit over axed money that had previously been promised. A spokeswoman for the B.C. Association of Charitable Gaming tells Mr. Meissner and Ms. Theodore that the group has contacted lawyers and is considering launching a class-action lawsuit. Cheryl Ziola says the group has a 1999 signed agreement with the provincial government that guarantees more annual funding. "It's not a good day for charities," said Mr. Ziola. "It's pretty bleak." She said the 5,000 to 6,000 charitable groups in British Columbia that receive gaming funds from the province have been hit with an 11-per-cent cut. The province has cut the overall budget to $139 million from $156 million. "Some organizations have phoned us and said they are faced with closing their doors or they are pursuing lines of credit," she said. "We've contacted lawyers." The Canadian Press' full story is at http://is.gd/2M4tN BROADCOM CORP: $118 Mil. Settlement Will Stay Class Action Suit --------------------------------------------------------------- Law.com reports that The National Law Journal reports that Broadcom Corp. has agreed to pay $118 million to settle allegations of stock options backdating in In Re Broadcom Corp. Derivative Litig., Case No. 06-cv-03252 (C.D. Calif.) (Real, J.). The proposed deal involves several current and former officers and directors of Broadcom, including former general counsel David Dull. The defendants have denied wrongdoing under the proposed settlement, which, if approved, would stay shareholder claims in a related class action against Broadcom. Amanda Bronstad's full story in The National Law Journal is at: http://www.law.com/jsp/article.jsp?id=1202433488143 Richard Heimann, Esq., at Lieff Cabraser Heimann & Bernstein in San Francisco, tells Ms. Bronstad the Broadcom settlement is the the second-largest such deal in a derivative action to date. The largest, reached in 2007 between several pension funds and former executives of UnitedHealth Group Inc., was estimated at $900 million. The Wall Street Journal's Law Blog Newsletter gives further insight into the economics underlying the settlement, explaining that Broadcom will receive $118 million from the issuers of D&O insurance policies and then shell out some $130 million to defense lawyers hired to represent the executives the company, technically speaking, was suing, given that it was a derivative action, plus $11.5 million to the plaintiffs' lawyers. CINTAS CORP: Net Cost of Driver Overtime Settlement is $12 Mil. --------------------------------------------------------------- Bruce Beggs at American Laundry News reports that Cintas Corp. will take a one-time $12 million charge, net of insurance proceeds and taxes, in connection with the $22.75 million settlement disclosed last month with hundreds of delivery drivers in Veliz, et al. v. Cintas Corp. et al., Case No. 03-cv-01180 (N.D. Calif.). Mr. Beggs says that Cintas also expects the court approval process will take several months. The Cintas drivers who pick up soiled uniforms, oily rags and other items and drop off a fresh supply were classified by the company as salaried workers instead of hourly workers, who would be entitled to overtime pay. The Fair Labor Standards Act (FLSA) requires workers to be compensated for all hours worked, unless they are specifically exempted. Executives and professionals are exempted and can be required to work more than 40 hours a week without being paid overtime. The drivers argued that their jobs driving trucks, delivering uniforms and servicing existing contracts do not make them exempt from being paid for hours worked over 40 hours. Representing the plaintiffs is: Scott A. Kronland, Esq. Altshuler, Berzon et al. 177 Post Street, Suite 300 San Francisco, CA 94108 Phone: 415-421-7151 Fax: 415-362-8064 E-mail: skronland@altshulerberzon.com Representing the company is: Cheryl A. Hipp, Esq. Squire Sanders & Dempsey LLP 4900 Key Tower 127 Public Square Cleveland, OH 44114 Phone: 516-479-8365 EXTENDICARE HEALTH: Wisconsin Court Tosses Class Action Lawsuit --------------------------------------------------------------- A judge in Milwaukee County Circuit Court ruled that a class action lawsuit brought against Extendicare Health Services, Inc., Extendicare Homes, Inc., and other related entities, wholly owned U.S. based subsidiaries of Extendicare Real Estate Investment Trust (TSX: EXE.UN), was improper and ordered the case dismissed in its entirety. The lawsuit was filed on November 14, 2008, in Milwaukee County Circuit Court as a copycat lawsuit to two other lawsuits that were similarly dismissed by federal courts in Washington and Minnesota. Like those, the suit asserted a claim under a state consumer protection statute and was premised upon an allegation that Extendicare had misrepresented the quality of its services to the residents of its Wisconsin skilled nursing facilities. The plaintiff brought the action on behalf of all current and former residents for the period 2005 through 2008. The Honorable Dennis Moroney rejected the class action claim, and like the federal court in Minnesota, held that that the plaintiffs' allegations were too general and unspecific to serve as the basis for a claim. Judge Moroney further prohibited the plaintiffs' attorneys from attempting to re-file the lawsuit with amended allegations because, given the weakness of the claim, it would be futile. Like the other suits filed against it asserting similar theories, Extendicare viewed this suit as an attempt by creative plaintiffs' lawyers to use costly, but ultimately baseless, litigation strategies as a means of forcing settlement and driving up attorneys' fees. Judge Moroney's ruling appears to vindicate Extendicare's position, the Company says. Extendicare is a leading North American provider of long-term and short-term senior care services through its network of owned and operated health care centers. Extendicare employs 37,900 workers, and its 264 senior care centers in North America have capacity for approximately 29,500 residents. INTERNATIONAL GAME: Directors Sued for Securities Fraud in Nev. --------------------------------------------------------------- Courthouse News Service reports that directors of International Game Technology inflated its share price through false and misleading statements, shareholders say in Las Vegas Federal Court. As reported in the Class Action Reporter in early-August, a complaint filed in International Brotherhood of Electrical Workers Local 697 Pension Fund v. International Game Technology, et al., Case No. 09-cv-00419 (D. Nev., filed July 30, 2009), charges IGT and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Pension Fund is represented by Darren J. Robbins, Esq., at Coughlin Stoia Geller Rudman & Robbins LLP. IGT is a global gaming company that specializes in the design, manufacture, and marketing of electronic gaming equipment and network systems, as well as licensing and services, in North America and internationally. KERR-MCGEE: Sept. 8 Is "Tronix" Lead Plaintiff Deadline ------------------------------------------------------- Barroway Topaz Kessler Meltzer & Check, LLP reminds all purchasers of Tronox, Inc. (Pink Sheets: TRXAQ, TRXBQ) securities between November 28, 2005, and January 12, 2009, inclusive, that September 8, 2009, is the lead plaintiff deadline in the class action currently pending in the United States District Court for the Southern District of New York. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq., or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com. For more information about Barroway Topaz Kessler Meltzer & Check, please visit http://www.btkmc.com/ The case is styled Barnes v. Kerr-McGee Corporation, et al., No. 09-cv-7116 (S.D.N.Y.). A copy of the Complaint filed in this action is available from the Court, or can be viewed at http://www.btkmc.com/ The Complaint charges Kerr-McGee Corporation, Anadarko Petroleum Corporation and certain of Kerr-McGee and Tronox's officers and directors with violations of the federal securities laws. Tronox is not named in this action as a defendant because it filed for bankruptcy protection in January 2009. Tronox is a producer and marketer of titanium dioxide pigment. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's reserves for environmental liabilities failed to include reserves for other identified, but undisclosed sites; (2) that the Company faced extraordinarily high exposure regarding its environmental liabilities, which it failed to fully disclose to its shareholders; (3) that the Company's reserves for environmental liabilities were wholly inadequate; (4) that the Company would face extremely high tort liabilities, particularly for wood treatment claims; (5) that the Company's financial statements and, specifically the methodology used to calculate the Company's environmental liabilities reserve, were not prepared in accordance with Generally Accepted Accounting Principles; (6) that the Company lacked adequate internal and financial controls; (7) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (8) that, as a result of the foregoing, defendants' statements about the Company's financial well-being and future business prospects were lacking in any reasonable basis when made. As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class Members have suffered significant losses and damages. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. If you are a member of the class described above, you may, not later than September 8, 2009, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Contact: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff, Esq. 280 King of Prussia Road Radnor, PA 19087 Telephone: 1-610-667-7706 E-mail: info@btkmc.com MARVEL ENTERTAINMENT: Shareholders Want More Money from Disney -------------------------------------------------------------- It didn't take Marvel Entertainment shareholders long to challenge Disney's proposed $4 billion buyout of the comic book giant, Courthouse News Service reports. On Monday, the day Marvel and Disney announced the deal, Marvel shareholders filed a state class action calling the roughly $50 per share stock-and- cash offer grossly inadequate. Marvel shareholders are offered $30 per share plus 0.745 shares of Disney for each Marvel share. They want more. The deal would give Disney rights to hundreds of Marvel characters, including Spiderman, the X-Men, the Incredible Hulk and the inexplicably neglected Silver Surfer. Marvel shareholders are represented in New York County Court by Anthony Vozzolo, Esq., at Faruqi & Faruqi. MERRILL LYNCH: Judge Approves Settlement of BofA Buyout Lawsuit --------------------------------------------------------------- Vice Chancellor John W. Noble of the Delaware Chancery Court gave final approval to a zero-dollar, additional disclosure settlement in County of York Employees Retirement Plan v. Merrill Lynch & Co., No. CA4066. The settlement also resolves In re Merrill Lynch & Co. Inc. Securities, Derivative and ERISA Litigation, Case No. 07-9696 (S.D.N.Y.). Bloomberg News relates that Bank of America's Merrill Lynch & Co. unit won final court approval of a settlement resolving a class action, or group, lawsuit that had sought to block its acquisition by the bank. The County of York Employees Retirement Plan sued the company last year claiming the deal with Bank of America was too low and denied shareholders maximum value. Both sides reached a settlement in November and the deal closed in January. Bank of America acquired New York-based Merrill on Jan. 1 for about $29 billion. Merrill agreed to the purchase on Sept. 15 after Lehman Brothers Holdings Inc. filed for bankruptcy, putting the company in danger. As part of the settlement, Merrill Lynch released additional information about the deal -- including Merrill's due-diligence investigation and discussions between the two firms on compensation for Merrill's senior executives. Vice Chancellor Noble also approved $950,000 in fees and expenses for shareholders' attorneys. MIDLAND CREDIT: Charged With Illegal Debt Collection Practices -------------------------------------------------------------- Courthouse News Service reports that Midland Credit Management violated collections laws by telling debtors it could inform third parties about the debts bought by its corporate parent, co-defendant Midland Funding, a class action claims in New Haven Federal Court. A copy of the complaint in Franklin v. Midland Credit Management, Inc., et al., Case No. 09-cv-1363 (D. Conn), is available at: http://www.courthousenews.com/2009/08/31/DebtCollect.pdf Shari Franklin, the named Plaintiff, is represented by: Joanne S. Faulkner, Esq. 123 Avon Street New Haven, CT 06511-2422 Telephone: (203) 772-0395 E-mail: faulknerlawoffice@snet.net The other defendants are Midland Funding LLC and Encore Capital Group, Inc., fka MCM Capital Group, Inc. NEW YORK: 8% Parking Tax for Non-Residents Comes Under Fire ------------------------------------------------------------ Barbara Leonard at Courthouse News Service reports that a federal class action claims that Manhattan discriminates against out-of- towners by charging them an 8 percent tax to park in the borough's garages while Manhattan residents can apply for an exemption. By charging the tax without limitation the city could raise up to $22 million, according to the complaint. The five named plaintiffs are residents of New Jersey, Long Island and Queens who commute to Manhattan and park their cars in garages at monthly rates. They pay 18.375 percent in state, city and borough taxes, while Manhattan residents with qualifying vehicles pay only 10.375 percent. Thousands of out-of-towners have paid the surcharge since Aug. 26, 2006, the class claims. The class seeks declaratory relief and an injunction to stop the discriminatory tax policies, which they say violate the commerce, privileges and immunities, and equal protection clauses of the Constitution. Named as defendants are the city and state of New York, former Govs. Eliot Spitzer and George Pataki, Gov. David Paterson, Mayor Michael Bloomberg, and the current and former commissioners of the state finance department and the taxation and finance department. Lead counsel is Brian Bromberg, Esq. PAYPAL INC: Merchants Sue Over Improper Handling of Disputes ------------------------------------------------------------ Maria Dinzeo at Courthouse News Service reports that online merchants accuse PayPal Inc. of selling them out in favor of buyers and credit card companies in a class action lawsuit. Appliance wholesaler The Weiler Group claims PayPal's "chronically understaffed" dispute resolution department sides with buyers without conducting legitimate investigations, leading to "chargebacks" and "reversals" against seller accounts. Ms. Dinzeo's full report is available at http://is.gd/2L9jNand a copy of the complaint in The Weiler Group, Inc. v. PayPal, Inc., Case No. 09-cv-03955 (N.D. Calif.), is available at: http://www.courthousenews.com/2009/09/01/Paypal.pdf The Weiler Group, Inc., is represented by: Kevin Ruf, Esq. Dale MacDiarmid, Esq. GLANCY BINKOW & GOLDBERG LLP 1801 Avenue of the Stars, Suite 311 Los Angeles, CA 90067 Telephone: 310-201-9510 Fax: 310-201-9160 E-mail: info@glancylaw.com PEDERNALES ELECTRIC: Fee Fight Rages On, Texas Lawyer Reports ------------------------------------------------------------- Mary Alice Robbins, writing for the Texas Lawyer, reports that the class action suit against Pedernales Electric Cooperative Inc. is over, but a fee fight rages on. On one side are Bill Ikard, Esq., at Ikard Wynne, LLP, and Graham Kerin Blair, Esq., at Baker & McKenzie, who represented class members and received a portion of $4 million in attorney fees that 250th District Judge John Dietz awarded last year in Worrall, et al. v. Pedernales Electric Cooperative Inc., et al., the suit that members of the cooperative brought against the PEC and others. On the other side is Christopher Bandas, Esq., at Bandas Law Firm, an attorney who claims he didn't get a $200,000 slice of those fees as promised. Ms. Robbins' complete report is at http://is.gd/2KzwU PITNEY BOWES: Settles Blast-Fax Case for Coupons & Legal Fees ------------------------------------------------------------- Law.com reports that Greg Land at the Fulton County Daily Report says business service and supply giant Pitney Bowes has agreed to settle O'Toole v. Pitney Bowes, No. 08-cv-01645 (N.D. Ga.) (Murphy, J.), a "blast fax" class action by giving $26 coupons to plaintiffs for each week they received an unwanted fax -- and $950,000 to the lawyers for the class. Under the terms of the $2.9 million settlement, Pitney Bowes admitted to no wrongdoing. The plaintiffs alleged violations of the Telephone Consumer Protection Act, under which a fax advertisement may be sent only with the recipient's permission or if there's an existing business relationship. Mr. Land notes that a similar case, Fox v. Pitney Bowes, No. 09- cv-01028 (N.D. Ga.) (Vining, J.), remains pending on the Court's docket. Mr. Land's full report is available at http://is.gd/2L5Pq R.L. POLK: Fla. DPPA Settlement Notice Extended to DMV Offices -------------------------------------------------------------- In addition to providing notice by publication, the Honorable Jose E. Martinez directed the parties in Fresco, et al. v. R.L. Polk & Co. and Acxiom Corp., Case No. 07-60695 (S.D. Fla.), to deliver notice of their proposed settlement to each state's department of motor vehicles and request that the notice be posted in each public office. Project Manager Leslie Wissner at Garden City Group, Inc., the Notice Administrator in this class action proceeding, took charge of that, and distributed scores of notices to each state's DMV last month. A fairness hearing is scheduled for Dec. 7, 2009, at 10:00 a.m., to consider the proposed settlement. The suit alleges that R.L. Polk & Co. and Acxiom Corp. knowingly obtained, used, or disclosed personal information from motor vehicle records in violation of a federal law, the Driver's Privacy Protection Act. The Garden City Group, Inc., has established a Web site at http://www.dppasettlement2.com/to provide more information about the litigation and the proposed settlement. Representing the plaintiffs are: Tod N. Aronovitz, Esq. Aronovitz Trial Lawyers 150 W Flagler Street, Suite 2700 Museum Tower Miami, FL 33130 Phone: 305-372-2772 Fax: 305-375-0243 E-mail: ta@aronovitzlaw.com - and - Mark S. Fistos, Esq. James Hoyer Newcomer & Smiljanich 3301 Thomasville Road, Suite A-200 Tallahassee, FL 32308 Phone: 850-325-2680 Fax: 850-325-2681 - and - Lawrence Dean Goodman, Esq. Devine Goodman Pallot & Wells 777 Brickell Avenue, Suite 850 Miami, FL 33131 Phone: 305-374-8200 Fax: 305-374-8208 E-mail: lgoodman@devinegoodman.com - and - James Kellogg Green, Esq. 222 Lakeview Avenue, Suite 1650 Esperante West Palm Beach, FL 33401 Phone: 561-659-2029 Fax: 561-655-1357 E-mail: jameskgreen@bellsouth.net R.L. Polk & Co. is represented by: Christopher M. Mason, Esq. Nixon Peabody, LLP 437 Madison Avenue New York, NY 10022 - and - Scott J. Frank, Esq. Butler Pappas Weihmuller Katz Craig, LLP One South Harbour Island Boulevard Tampa, FL 33602 Acxicom is represented by: Juan C. Enjamio, Esq. Hunton & Williams, LLP Mellon Financial Center 1111 Brickell Ave., Suite 2500 Miami, FL 33131 SAN DIEGO GAS: Inlanders Claim Utility Charging Improper Rates -------------------------------------------------------------- Elizabeth Banicki at Courthouse News Service reports that a class action accuses San Diego Gas & Electric of overcharging customers by billing them at its most expensive, coastal rate, though they live in the utility's inland, mountain, or desert zones. The class claims the false billings catapulted them into exponentially higher monthly bills. Ms. Banicki's full report is at http://is.gd/2L9TYand a copy of the complaint in Smythe v. San Diego Gas & Elec. Co., et al., Case No. 37-2009-00096975-CU-BT-CTL (Calif. Super. Ct., San Diego Cty.) (Hayes, J.), is available at: http://www.courthousenews.com/2009/09/01/SDG&E.pdf Sempra Co. and Enova Corporation are also named defendants. Richard Smythe, the Plaintiff, is represented by: Wayne S. Kreger, Esq. Sara D. Avila, Esq. MILLSTEIN, ADELMAN & KREGER, LLP 2800 Donald Douglas Loop North Santa Monico, CA 90405 Telephone: 310-396-9600 Fax: 310-396-9635 E-mail: wkreger@maklawyers.com savila@maklawyers.com ST. PAUL, MINN: 27 Arrested Protesters Prepare to Sure City ----------------------------------------------------------- Nicole Muehlhausen at KSTP.com reports that 27 citizens arrested a year ago as they tried to protest outside the Republican National Convention at the Xcel Energy Center plan to sue the city for action taken against them. The plaintiffs say the city had no probable cause to arrest them, and the police's use of chemicals and rubber bullets was excessive. "You can't take the wrongs of one person and use them as justification to arrest masses, that's simply illegal. That's the basis of this lawsuit," attorney Bob Kolstad tells KSTP. KSTP's attempts to contact the St. Paul Police Department and the Ramsey County Sheriff's Office for comment went unreturned. The full report is available on the Web at: http://kstp.com/news/stories/S1114737.shtml?cat=206 A separate report by Madeleine Baran at Minnesota Public Radio is available at: http://minnesota.publicradio.org/display/web/2009/08/31/rnc-lawsuit/ THELEN LLP: Plaintiffs' Lawyer Predicts Bankruptcy Filing --------------------------------------------------------- Nate Raymond at the New York Law Journal reports that Thelen LLP has agreed to a $1.12 million judgment favoring Schiff Hardin to settle a lawsuit on their sublease contract. The Law Journal notes that Schiff Hardin isn't likely to see the money anytime soon, as Thelen's accounts receivable are increasingly growing stale and it still owes millions of dollars to Citigroup Inc., its secured lender. Law Journal states that the settlement also suggested Thelen's possible bankruptcy filing, which will put Schiff Hardin in competition with other unsecured creditors for what is left. Bankruptcy Prediction The Law Journal quoted Steven Blum, Esq., at Blum Collins, LLP, who represents Thelen employees in the labor-related class action proceeding entitled Bergman, et al., v. Thelen LLP, et al., Case No. 08-cv-05322 (N.D. Calif.), as saying, "I would expect Thelen to file for bankruptcy within 89 days of any significant judgment or award. About a month from now you would expect Thelen to file for Chapter 11. That's our expectation." Schiff Hardin said in court documents that it signed a four-year agreement in 2007 with Thelen to sublease up to three floors at 900 Third Avenue, a space that had housed Brown Raysman Millstein Felder & Steiner before that firm merged with Thelen Reid & Priest in 2006. Citing Schiff Hardin, the Law Journal relates that when partners at Thelen voted to dissolve the Company in December 2008, it missed its last rent payment to its landlord -- the Paramount Group Inc. -- and defaulted on its lease for the floors at 900 Third that Schiff Hardin was subleasing. Schiff Hardin, the report states, said that to keep the space, it was forced to enter into a new lease with Paramount that carried higher costs. Additional cost over those in the Thelen sublease agreement was at $1.43 million, the report says, citing Schiff Hardin, which asked the Manhattan Supreme Court to order Thelen to make up the difference. According to the Law Journal, Thelen initially denied the accusations, saying that Schiff Hardin had failed to state a claim under which the court could grant relief, until the Company and Schiff Hardin agreed to settle on July 27. Schiff Hardin partner Carl Oberdier, Esq., in a letter dated August 3, asked Judicial Hearing Office Ira Gammerman to enter judgment "as soon as practicable," the Law Journal reports. Law Journal relates that the court entered judgment on August 18. The Law Journal notes that by obtaining a judgment, Schiff Hardin was able to fix the dollar amount of its claim before Thelen files for bankruptcy, but still remains an unsecured creditor. Peter Gilhuly Esq., at Latham & Watkins advises Thelen in its wind-down, the Law Journal reports. Thelen LLP, formerly known as Thelen Reid Brown Raysman & Steiner -- http://thelen.com/-- is a bicoastal American law firm in process of dissolution. It was formed as a product between two mergers between California and New York-based law firms, mostly recently in 2006. Its headcount peaked at roughly 600 attorneys in 2006, and had 500 early in 2008, with offices in eight cities in the United States, England and China. WELLS FARGO: Calif. Court Certifies Minority Mortgagor Class ------------------------------------------------------------ Austin Kilgore at HousingWire.com reports that a lawsuit filed in 2005 on behalf of minority mortgagors against Wells Fargo will proceed as a class action case after a Los Angeles Superior Court judge certified it as such. The suit alleges Wells Fargo discriminated against as many as 10,000 borrowers in minority communities by charging more for loans than borrowers paid in other parts of Los Angeles County. While Wells Fargo branches in some parts of the county were given access to a software product that allowed loan officers to provide discounts to customers, that same software, and in turn, the discounts, was not available to branches located in minority communities, according to a statement from the office of the law firm representing the class. "Well Fargo allowed some bank branches to use the program to price loans, and at the same time prevented other bank branches from doing so. The branches that were prevented from using the program were in predominately minority communities," said A. Barry Cappello, managing partner Santa Barbara-based Cappello & Noel law firm. "Those branches that could use the program were in predominately white communities." The plaintiffs are seeking $4,000 in damages for each of the loans allegedly affected. Mortgagors eligible to join the case must have obtained a first-lien mortgage for more than $150,000 from Wells Fargo Bank or Wells Fargo Home Mortgage branches in specific portions of Los Angeles County between May 2002 and December 2005. Leila Noel, Esq., another Cappello & Noel partner, said Wells Fargo loan officers asked to use the discount software, but upper management would not allow it. "A class action is the appropriate means to bring this type of discriminatory practice to light," Mr. Cappello said. "The majority of class members are not even aware that they paid or continue to pay extra for their home loans. And they never would have known if it weren't for conscientious former Wells Fargo employees who decided to speak out." Mr. Kilgore's calls seeking comment from Wells Fargo were not returned at the time this story was published. The Plaintiffs' lawyers can be reached at: A. Barry Cappello, Esq. Leila Noel, Esq. Cappello & Noel LLP 831 State St. Santa Barbara, CA 93101 Telephone: (805) 564-2444 New Securities Fraud Cases IMMUNOSYN CORPORATION: Shareholder Suit Filed in S.D. Tex. ---------------------------------------------------------- Stanford Law School's Securities Class Action Clearinghouse reports that a securities fraud lawsuit captioned Campbell v. Immunosyn Corporation, et al., Case No. 09-CV-00197 (S.D. Tex.) (Hanen, J.), was filed against Immunosyn Corporation on August 24, 2009. Argyll Biotechnologies LLC, James T. Miceli, Douglas A. Mcclain, Jr., Frank Morales, Argyll Equities, LLC, Stephen Ferrone and Doulgas A. Mcclain, are the other named defendants. Immunnosyn Corporation, Stanford relates, is a development stage company. The Company owns a worldwide license to market, distribute and sell a biopharmaceutical drug product, referred to as SF-1019, for multiple uses, including the treatment of any and all diseases, and pathological conditions. Under the terms of its license, the Company is further granted the rights to any improvement of SF-1019 and other compounds, which are developed under the same technology platform, and which are chemically similar to SF-1019. According to the complaint, the Defendants are in violation of 15 U.S.C. Sec. 78r and/or 17 C.F.R. Sec. 240.10b-5 by making false and misleading statements concerning Immunyson and SF-1019 in SEC filings, including but not limited to: a) failing to report income generated from the sale of SF-1019, b) claiming in a Form l0-QSB for the period ending Sept. 30, 2007, that Immunyson had the "exclusive worldwide license to market, distribute and sell . . . SF-1019," c) failing to timely report in its SEC filings a lawsuit brought by Salvatore and Frank Bramante against Immunyson, d) claiming that Argyll Biotech's only data regarding the safety and efficacy of SF-1019 is based on uncontrolled observations of a precursor to SF-1019 among a small group of individuals, not SF-1019 itself, e) failing to disclose that SF- 1019 was on clinical hold, d) misrepresenting the approvals obtained for SF-1019, 0 failing to disclose that SF-1019 was being sold through channels outside of Immunyson, g) failing to disclose the business relationship between Alan Osmond and Immunyson and/or Argyll Biotech, and h) selling a water/saline solution/and/or product without active agents as SF-1019. The plaintiffs are represented by: Andrew J. Tine, Esq. 251 Thames Street, 2nd Floor Bristol, RI, 02809 Telephone: 401.396.9002 Fax: 401.396.9002, Gershon D. Cohen, Esq. 1777 N.E. Loop 410, Suite 600 San Antonio, TX, 78217 Telephone: 210.826.7299 Fax: 210.826.7299, J.P. JEANNERET: Lowey Dannenberg Files Madoff Suit in S.D.N.Y. -------------------------------------------------------------- Lowey Dannenberg Cohen & Hart, P.C. has filed a class action lawsuit in the United States District Court, Southern District of New York, against defendants J.P. Jeanneret Associates, Inc., John P. Jeanneret and Paul L. Perry, Ivy Asset Management Corporation, Ivy Asset Management LLC, Lawrence Simon, Howard Wohl, Adam L. Geiger, Jeffrey R. Lindenbaum, John D. Rogers, Sean C. Simon, Kevin J. Bannon, Steven Pisarkiewicz, Robert Meschi, Susan Rabinowitz, Michael Singer, Alan Chuang, Gregory Van Inwegen, Sean Cumiskey, Stuart Davies, Peter Rose, Joseph Burns, Mark Santero, Peter D. Noris, Farzine Hachemian, Scott E. Wennerholm, Jonathan Little, Ronald P. O'Hanley, and Bank of New York Mellon Corporation, on behalf of all persons, other than Defendants, who, as a result of investment management and advisory services rendered by Jeanneret Associates and Ivy, invested directly with Bernard L. Madoff Investment Securities, LLC, from January 1, 1996, to the present, to recover damages caused by Defendants' violations of the Securities Exchange Act of 1934, Employment Retirement Income Security Act of 1974, Investment Advisors Act of 1940, and common law claims, including breach of fiduciary duties. The case is styled Plumbers & Steamfitters Local 267 et al., v. J.P. Jeanneret Associates, Inc., et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Lowey Dannenberg Cohen & Hart, P.C., Web site at http://www.lowey.com/ The Complaint alleges that during the Class Period, unbeknownst to Class members, Defendants failed to perform the necessary due diligence that they were being compensated to perform as investment advisors, managers and fiduciaries, and proximately caused millions of dollars in losses by placing the Class' investment assets in Madoff entities. Defendants either knew or were reckless in not knowing that assets placed with Madoff were at risk because his enterprise was a massive Ponzi scheme. Defendants ignored numerous red flags, including the abnormally high and stable positive investment results reportedly achieved by Madoff regardless of market conditions; inconsistencies between publicly available financial information and the purported amounts that Madoff was trading and managing for clients; and the fact that Madoff was audited by a small, obscure accounting firm. Jeanneret issued statements in, among other documents, investment management agreements, that were false and misleading because they stated that Jeanneret and Ivy would conduct thorough due diligence with respect to assets under Jeanneret's management. Plaintiffs allege that Defendant Ivy was Jeanneret's investment consultant and that Ivy shared in Jeanneret`s investment management fees in violation of ERISA. Defendants Jeanneret and Ivy failed to perform the represented due diligence and oversight, and abdicated their fiduciary duties to the investors by entrusting the Class` assets with Madoff. If you invested in Madoff as a result of investment management and advisory services rendered by Jeanneret Associates and/or Ivy during the Class Period, you may request that the Court appoint you as lead plaintiff by October 30, 2009. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery, however, is not affected by your decision on whether or not to seek appointment as a lead plaintiff. You may retain Lowey Dannenberg Cohen & Hart, or other counsel of your choice, to serve as your counsel in this action. Lowey Dannenberg Cohen & Hart has extensive experience in the prosecution of class actions in state and federal trial and appellate courts across the country. The firm has accomplished attorneys in various practice areas with offices in New York and Pennsylvania. The reputation and expertise of the firm in shareholder and other class litigation has been repeatedly recognized by the courts for its results in complex securities litigation. Please visit the Lowey Dannenberg Cohen & Hart Web site at http://www.lowey.com/for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact: Barbara Hart, Esq. Thomas M. Skelton, Esq. Lowey Dannenberg Cohen & Hart, P.C. White Plains Plaza One North Broadway White Plains, NY 10601-2310 Telephone: (914) 997-0500 Email: Bhart@lowey.com Tskelton@lowey.com ULTRASHORT FINANCIALS: Pearson Simon Files Fraud Suit in D. Md. --------------------------------------------------------------- Pearson, Simon, Warshaw & Penny, LLP, and Tydings & Rosenberg, LLP, filed a class action lawsuit on August 31, 2009, in the United States District Court for the District of Maryland on behalf of all persons who purchased or otherwise acquired shares of the UltraShort Financials ProShares Fund ("SKF"). SKF is an exchange-traded fund offered by ProShares Trust to investors pursuant to a materially false and misleading registration statement filed with the Securities and Exchange Commission. Persons who bought shares of SKF are members of the Plaintiff Class as defined in the Complaint. Plaintiff seeks to recover losses, on behalf of the Class, under Sections 11 and 15 of the Securities Act of 1933. If you are a member of the Class, you have the right to seek to be appointed by the United States District Court as the lead plaintiff in this class action on behalf of purchasers of SKF shares. Any request to be appointed as lead plaintiff must be filed with the United States District Court for the District of Maryland no later than October 30, 2009. As lead plaintiff, you would be required to act as the representative of all absent class members. Your right to share in any recovery obtained in this action is not affected by whether you seek to be appointed lead plaintiff. If you would like more information regarding the Complaint or your rights as a member of the Class, please contact George S. Trevor, Esq. at the Pearson, Simon, Warshaw & Penny law firm at (415) 433-9000, or via email at gtrevor@pswplaw.com. You may view a copy of the Complaint online at http://www.pswplaw.com/ You may also retain counsel of your choice to represent you in this action. The Complaint alleges that the registration statement filed by ProShares Trust, pursuant to which SKF shares were sold to investors, failed to adequately disclose that SKF shares should not be held more than a single trading day and were not an appropriate hedge against a decline in U.S.-based financial stocks. SKF is an inverse leveraged ETF that seeks investment returns that are two times the inverse performance of the Dow Jones U.S. Financials Index (the "DJFI"), which is a benchmark index for large U.S. banks and insurance companies. Defendants represented that SKF was an investment that provided a hedge against a decline in the stocks constituting the DJFI. Yet, as the DJFI declined substantially in 2008, SKF also declined contrary to the representations made by Defendants. For example, in a six week period from September 15, 2008 through October 31, 2008, the DJFI declined by over 17%. Despite a reasonable expectation based upon Defendants' disclosures that SKF would rise by up to 34% during this period, SKF actually fell by nearly 6%. The Complaint names as defendants ProShares Trust; ProShare Advisors, LLC; Louis M. Mayberg; Michael L. Sapir; Russell S. Reynolds, III; Michael Wachs; Simon D. Collier; and SEI Investments Distribution Co. The Complaint alleges that Defendants violated the Securities Act by filing a registration statement for SKF that contained materially false and misleading statements. As set forth in more detail in the Complaint, Defendants failed to disclose the following risks: (a) the mathematical probability that SKF's performance will fail to track the performance of the DJFI over any period longer than a single trading day; (b) that the greater volatility experienced by the DJFI will result in SKF underperforming the DJFI by a material amount; (c) that SKF is not a directional play on the performance of U.S. financial stocks, but dependent on the volatility and path the DJFI takes over any time period greater than a single day; (d) that SKF was not a simple investment that could be used over time to hedge against a downturn in U.S. financial stocks; (f) that based upon the mathematics of compounding, the volatility of the DJFI and probability theory SKF was highly unlikely to achieve its stated investment objectives over time periods longer than a single trading day. The law firm of Pearson, Simon, Warshaw & Penny has offices in San Francisco and Los Angeles, California. The firm's principle attorneys have represented institutions, public entities and individual investors in complex securities litigation, and collectively the firm's senior attorneys have over 50 years of experience in such cases. You may obtain more information about the firm at http://www.pswplaw.com/ Contact: Pearson, Simon, Warshaw & Penny LLP George S. Trevor, Esq. Telephone 415-433-9000 E-mail: gtrevor@pswplaw.com ********* 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. Gracele D. Canilao, Leah Felisilda and Peter A. Chapman, Editors. Copyright 2009. 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 * * *