CAR_Public/990402.MBX              C L A S S  A C T I O N  R E P O R T E R

              Friday, April 2, 1999, Vol. 1, No. 41

                            Headlines

ADP: Judge Approves Auto Recyclers and Repairers Settlement
CELLULAR TECHNICAL: Washington Securities Suit Settles
CHS ELECTRONICS: Scott & Scott File Complaint
COMPLETE MANAGEMENT: Stull Stull Files Complaint in New York
EMERGING MEXICO: Liquidation Depends on Class Settlements

ENGINEERING ANIMATION: Scott & Scott File Complaint
GILBERT, AZ: Airport Neighbors Sue Town for Property Values
NORTH FACE: Scott & Scott File Complaint
PATHOGENESIS CORP.: Milberg Weiss Files Suit in Washington
PATHOGENESIS CORP.: Savett Frutkin Files Complaint in Washington

RITE AID: Weiss & Yourman File Complaint
STAFFMARK, INC.: Milberg Weiss File Complaint in Arkansas
STAGE STORES: Milberg Weiss Files Complaint in Texas
SUN HEALTHCARE: Scott & Scott File Complaint
TORCHMARK CORP.: Cases Charge New Policies are Often Scams

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ADP: Judge Approves Auto Recyclers and Repairers Settlement
-----------------------------------------------------------
United Recyclers Group, L.L.C. (URG) announced today that the
Honorable Charles Weiner, Federal District Judge in Philadelphia
has approved the settlement of a class action suit against ADP.

The suit was originally filed in 1997 by attorneys Nicholas
Chimicles, Reginald Krasney and Jonathan Cuneo on behalf of
those Automotive Recyclers and collision repairers throughout
North America who used ADP's services. The Class Action followed
an action originally brought by the Federal Trade Commission
against ADP, but sought relief which that FTC action did not
achieve. The FTC and the class action lawsuit alleged that ADP
had created a monopoly with their acquisition of Auto Info,
which reduced competition in the market for computerized
recycling management systems.

URG worked closely with the anti-trust attorneys to negotiate
new licensing terms for ADP's interchange products and a link to
ADP's parts locating service called EDEN with URG's newly
developed Pinnacle(TM) Recycling Inventory and Trading System as
a part of the settlement. URG, a coalition of approximately 350
auto recyclers was created as a direct result of ADP's alleged
monopoly of computerized management systems. URG formed a joint
venture with Actual Systems of America and designed a new
computer system.

The settlement provides a fund of over $2 million dollars for
damages, as well as other types of relief. Sharon Kellum, URG's
Business Manager, says, "We are pleased to see this settlement,
following hundreds of hours of negotiations between URG's
Managers and Reginald Krasney, the lead counsel for the
plaintiffs." She adds, "The new interchange contract will
benefit all recyclers directly and the EDEN link will allow
recyclers on the Pinnacle(TM) to share info with ADP's
customers."


CELLULAR TECHNICAL: Washington Securities Suit Settles
------------------------------------------------------
States News Service reports that Cellular Technical Services
Company, Inc. Of Delaware has announced a stipulation of
settlement of the securities class action that began in July
1997 has been filed with the United States District Court for
the Western District of Washington. The stipulation, in which no
liability or fault is admitted by CTS or any of its executives,
provides for a settlement payment of $4.1 million that will be
paid by CTS' insurance carriers.


CHS ELECTRONICS: Scott & Scott File Complaint
---------------------------------------------
The law firm Scott & Scott has filed a class action suit against
CHS Electronics (NYSE: HS). The action was filed on behalf of
all stock purchasers from December 18, 1997 through March 22,
1999.

The complaint charges that CHS Electronics and certain of its
officers and directors violated the federal securities laws by
submitting false financial statements and false earnings. The
complaint alleges that: (a) Defendants' financial statements
were based, in large measure, upon forged documents and false
customer orders; (b) defendants had inaccurately described the
amount of its vendor rebates; (c) defendants had improperly kept
certain assets (primarily accounts receivable) off its balance
sheet; (d) CHS routinely shifted inventory from country to
country in Europe to avoid the 18% value added tax; (e) that a
CHS executive officer who was involved in CHS's scheme to avoid
value added taxes had fled the country under fear of indictment;
(f) that, as a result of the value added tax avoidance, CHS's
operating profit margins were overstated; (g) as a result of the
foregoing, CHS's assets and earnings were materially overstated;
and (h) as a result of the foregoing, CHS was performing far
worse than publicly represented and its operating performance
measures (particularly its accounts receivable/turnover ratio)
were materially overstated. When certain of this information was
disclosed on February 24, 1999 and March 22, 1999, the price of
CHS collapsed, and currently trades far below its recent highs.


COMPLETE MANAGEMENT: Stull Stull Files Complaint in New York
------------------------------------------------------------
The law firm of Stull, Stull & Brody filed a class action
lawsuit in the U.S. District Court for the Southern District of
New York on behalf of all those who purchased or otherwise
acquired the common stock or convertible debentures of Complete
Management, Inc. (OTC:CPMI) between May 1, 1996 and August 13,
1998.

The defendants include CMI, certain of its officers and
directors, underwriters and accountants. The Complaint charges
that defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10- b(5).

The complaint alleges that CMI improperly recognized revenue on
uncollectible receivables from its largest customer, Greater
Metropolitan Medical Services ("GMMS") in violation of Generally
Accepted Accounting Principles. As a result of this conduct, CMI
announced on August 13, 1998 that it would be writing off $28.9
million in management fees due from GMMS and would be severing
its relationship with them.

On November 18, 1998 CMI announced that it would be taking an
additional $17.5 million in charges. Most recently, CMI
announced that an event of default had occurred with respect to
its 8% Convertible Subordinated Debentures due August 15, 2003
as a result of the non-payment of the February 15, 1999
installment of interest and the end of the 30-day grace period
provided for in the debentures.


EMERGING MEXICO: Liquidation Depends on Class Settlements
---------------------------------------------------------
The Emerging Mexico Fund, Inc. (NYSE:MEF) announced that
stockholders approved the liquidation and dissolution of the
Fund pursuant to a Plan of Liquidation and Dissolution
previously approved by the Board of Directors.

However, the Fund previously announced that a federal judge
postponed a hearing to consider the fairness of settlements of
two class action lawsuits pending against the Fund and its Board
of Directors until April 6, 1999. The Fund's liquidation and
dissolution is conditional on court approval of the resolution
of the lawsuits.

If the settlement of the claims is approved by the judge on
April 6, 1999, it is anticipated that the Fund's shares of
common stock will cease to trade on the New York Stock Exchange
at the end of business on April 6, 1999. It is anticipated that
a liquidating distribution to stockholders representing
substantially all of the assets of the Fund will occur between
30 days and 90 days after court approval of the lawsuit
settlement.

The Fund also announced that it has discontinued the share
repurchase program announced by the Board of Directors on
September 21, 1998.


ENGINEERING ANIMATION: Scott & Scott File Complaint
---------------------------------------------------
The law firm Scott & Scott has filed a class action suit against
Engineering Animation (Nasdaq: EAII). The Engineering Animation
case is on behalf of stock purchasers between February 19, 1998
and February 17, 1999.

The complaint alleges that while the defendants artificially
inflated the price of the stock by issuing false and misleading
statements concerning the Company's financial results, insiders
dumped $20,800,000.00 of stock.


GILBERT, AZ: Airport Neighbors Sue Town for Property Values
-----------------------------------------------------------
In a story copyrighted by Phoenix Newspapers, Inc., the Arizona
Republic reported that more than 170 homeowners representing
nearly 100 properties have filed a $7.9 million claim against
the town for what they say are reduced property values resulting
from Williams Gateway Airport overflights.

The report states that Phoenix attorney Richard Mack filed the
claim Wednesday, and that  Mack also represents a group of U.S.
Home buyers near the airport that recently sued that builder.
"We tried to meet with the town and work this out, but they
turned their backs on us," resident Steve Urie reportedly said.

Claim documents are said to have cited the Gilbert council's
1995 adoption of a resolution that calls for special provisions
for construction within the airport influence area. Provisions
include public notification and home construction standards
designed to soften the impact of noise. The town failed to
enforce that resolution according to the claim.

The Arizona Republic reported that Both Urie and claim documents
cite a public admission in September 1998 by Town Manager Kent
Cooper that the town failed to enforce provisions of the
resolution until 1997. Cooper said the resolution is a policy,
not a law, and represents the council's efforts to protect
Williams airspace. He said the town had no legal responsibility
to inform home buyers about the airport, according to the
report. The resolution "was a good-faith effort to come up with
some way of informing future homeowners, and it wasn't
implemented as well as we'd have liked," Cooper said. "But it
was a voluntary action on our part. It certainly isn't our
responsibility under state statutes to notify anybody about
anything when we buy a home. We are not a party to those
transactions."

According to the story, Urie holds the town responsible for not
requiring builders to disclose the airport's use or to use
construction techniques that muffle flight sounds. "I was told
(by a sales agent) that the airport was closed, and it was going
to be an ASU East campus and low-income housing," he said. Urie
said he never would have bought his Superstition Highlands home
had he known it would be four miles from a commercial airport.

The Arizona Republic wrote that Town Attorney Susan Goodwin said
Gilbert has 60 days to respond to the claim, which has been
submitted to the town's insurance carrier for review. Under
state law, the residents are required to file a claim before
suing.

Urie reportedly said residents have asked town officials to
scale down airport operations, stop expansion or compensate
residents. He said if the claim is not paid, they will seek
others to join in a class- action lawsuit against the town.
However, the story noted that Mayor Cynthia Dunham said that the
town never tried to hide the airport and is supportive of an
airplane noise study for the area.


NORTH FACE: Scott & Scott File Complaint
----------------------------------------
The law firm Scott & Scott has filed a class action suit against
North Face Inc. (Nasdaq: TNFI). Purchasers of The North Face
Inc. common stock between April 25, 1997 and March 4, 1999 are
also represented in a securities lawsuit.

The complaint alleges that the defendants falsely reported North
Face's financial results and overstated its sales growth causing
stock price to trade at as high as $29. Ultimately, on March 5,
1999, North Face was forced to announce that its full year 1998
results were "delayed" and that, contrary to its repeated
assertions that its financials were properly stated, adjustments
to its 1997 results might be necessary. On this news, North
Face's stock price dropped to as low as $10-7/8.


PATHOGENESIS CORP.: Milberg Weiss Files Suit in Washington
----------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP announced that a
securities fraud class action has been commenced in the United
States District Court for the Western District of Washington on
behalf of purchasers of the publicly traded securities of
PathoGenesis Corporation (Nasdaq: PGNS) during the period
January 25, 1999 to March 22, 1999.

The complaint charges PGNS and certain officers and directors
with violations of sections 10(b) and 20 of the Securities
Exchange Act of 1934. Plaintiff alleges that defendants
participated in a fraudulent scheme to misrepresent the
Company's sales of its primary product, the antibiotic
Tobramycin ("TOBI"). Plaintiff alleges that defendants failed to
disclose that PGNS' increased sales of TOBI in the fourth
quarter of 1998 primarily resulted from wholesalers' overstock
purchases made to avoid PGNS' imminent increase in TOBI's price,
rather than the increasing market acceptance of or growth in the
patient base for the drug.

The complaint also alleges that defendants failed to disclose
their knowledge that sales of the drug in the first quarter
would be depressed as a result of its fourth quarter 1998 sales
program. The defendants' misrepresentations are alleged to have
caused PGNS shares to trade at artificially inflated prices
during the Class Period. When the truth about the failure of
TOBI to achieve the market acceptance claimed by defendants was
revealed, the price of PGNS stock plummeted by over $22 per
share or 70% per share to just $12 per share.


PATHOGENESIS CORP.: Savett Frutkin Files Complaint in Washington
----------------------------------------------------------------
Savett Frutkin Podell & Ryan, P.C. has filed a class action
complaint in the United States District Court for the Western
District of Washington on behalf of a Class of persons who
purchased PathoGenesis Corp. (NASDAQ:PGNS) common stock or call
options or who sold PGNS put options during the period January
26, 1999 through March 22, 1999.

The Complaint charges PathoGenesis and certain officers with
violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934. The Complaint alleges that defendants
issued a series of materially false and misleading statements
regarding the market for its principal product tobramycin
solution for inhalation (TOBI).

On March 22, 1999, the Company announced that sales for the
first quarter would be about $10 million, and that it expected
to report a net loss of $0.30 per share versus consensus
estimates of a $0.20 profit. In addition, the Company said sales
for the year would likely be in the $62 - $63 million range as
opposed to $90 - $100 million. As a result of this announcement,
the stock price fell on March 23rd by over 22 points, from
approximately $34 per share to $12 per share on volume of over
22 million shares.


RITE AID: Weiss & Yourman File Complaint
----------------------------------------
Weiss & Yourman has filed a class action lawsuit on behalf of
purchasers of Rite Aid Corporation (NYSE: RAD) securities
between November 17, 1998 and March 12, 1999 for violations of
federal securities laws. Defendants include Rite Aid and certain
of its officers and directors.

The Complaint charges that defendants violated Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10-
b(5) by, among other things: issuing false and misleading
statements regarding Rite Aid's financial condition as well as
its present and future business prospects.


STAFFMARK, INC.: Milberg Weiss File Complaint in Arkansas
---------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP, has filed a class
action in the United States District Court for the Eastern
District of Arkansas on behalf of purchasers of StaffMark, Inc.
(Nasdaq: STAF) common stock between October 8, 1998 and March 2,
1999.

The complaint charges StaffMark and certain officers and
directors with violations of the Securities Exchange Act of
1934. The complaint alleges that StaffMark senior management
reassured investors as late as February 24, 1999, that they were
confident about StaffMark's operations and that while December
98 and early January 99 business had been slow, StaffMark's
business was ramping up "as fast or faster than expected."

However, just five days later, StaffMark revealed that revenues
from its key Intellimark division had shown 0% growth in January
and 4-5% growth in February, (both well under budget), and that
as a result, StaffMark's earnings for the first quarter of 1999
and Year 1999 would fall dramatically below expectations.

The complaint further alleges that these disclosures caused
StaffMark common stock to collapse in price and that, just prior
to these revelations StaffMark's largest shareholder sold
250,000 StaffMark shares for $4 million and StaffMark had used
$140 million worth of its artificially inflated stock as a
currency to acquire Robert Walters plc.


STAGE STORES: Milberg Weiss Files Complaint in Texas
----------------------------------------------------
The law firm of Milberg Weiss Bershad Hynes & Lerach LLP has
filed a class action lawsuit in the United States District Court
for the Southern District of Texas on behalf of purchasers of
Stage Stores Inc. (NYSE:SGE) common stock during the period
between May 2, 1997 and Aug. 6, 1998.

The complaint charges Stage Stores, certain officers and
directors, and its underwriters and controlling shareholders
with violations of the Securities Exchange Act of 1934. The
complaint alleges that in order to artificially inflate Stage
Stores stock and facilitate its secondary offering at an
artificially inflated price, defendants made false and
misleading statements about Stage Stores' acquisition of the
chain of C.R. Anthony Stores. They also emphasized the success,
and indeed acceleration, of Stage Stores' rapid expansion and
growth plan of opening new stores, the exceptional profitability
of its small town, small store model, Stage Stores' state-of-
the-art merchandise mix and inventory controls, the strength of
Stage Stores' competitive position and the expertise and depth
of Stage Stores' management team. They represented that these
favorable factors made Stage Stores a unique company and an
exceptionally attractive investment and would result in Stage
Stores achieving strong earnings per share growth in F1998,
F1999 and F2000, with 15%-25% EPS growth going forward.

These representations artificially inflated Stage Stores' stock
to a Class Period high of $53-3/4 and allowed Bain Capital and
Acadia, who were Stage Stores' two largest and controlling
shareholders, to sell 6.22 million shares of their Stage Stores
stock, in a 7.1 million share secondary offering on 9/17/97 (the
"Secondary Offering"), for $208 million. This Secondary Offering
also allowed Stage Stores to sell 650, 000 new shares to the
public raising $21.7 million in equity capital. During this
period, Stage Stores' top officers also received over $7.4
million in proceeds, via open market sales of 224,071 shares of
their Stage Stores stock at prices as high as $52-1/4 per share.

Then, on 8/6/98, Stage Stores revealed a 5% decline in same-
store sales during 7/98, admitted its 2ndQ EPS would be only
$.02-$.05 and that Stage Stores would suffer very weak 3rdQ EPS
as well. Stage Stores' stock dropped, falling from $23-5/8 on
8/5/98 to $9-7/8 on 8/6/98, a one-day price decline of $13-3/4
or 58%, on volume of 5.3 million shares.


SUN HEALTHCARE: Scott & Scott File Complaint
--------------------------------------------
The law firm Scott & Scott has filed a class action suit against
Sun Healthcare (NYSE: SHG). The lawsuit was pled on behalf of
all stock purchasers from June 2, 1998 through February 1, 1999.

The complaint alleges that Sun Healthcare and certain of its
officers and directors issued false and misleading statements
concerning the impact of the changes in the Medicare
reimbursement system on Sun Healthcare's operating results and
business prospects.


TORCHMARK CORP.: Cases Charge New Policies are Often Scams
----------------------------------------------------------
The Fort Worth Star-Telegram reported on four lawsuits involving
Globe Life and Accident Insurance and United American Insurance,
both part of the Torchmark Corp. of Birmingham, Ala., that may
affect the sale of individual health insurance policies.

According to the report, Torchmark, formerly Liberty National,
settled one class-action in Alabama for around $55 million but
continues to contest three other suits, in Mississippi, Georgia
and Oklahoma. The fights involve hospital/surgical policies,
which pay fixed and limited amounts toward care. The story says
that these policies are generally bought by people who have no
employee coverage and can't afford comprehensive major medical
insurance.

The report warns:

     --If a new agent calls and wants to replace a policy you
own, insist on a point-by-point comparison between the old
policy and the new one. Don't go by the first (and probably
biased) comparison the agent brings. The new policy may be
inferior, benefiting the insurance company or new agent at your
expense.

     --If you have a health problem, and an agent offers you a
low-cost policy (individual, not group), something is wrong. The
policy won't stay low-cost very long. What's more, the insurer
may find excuses to deny your claims.

     --Even if you're in good health, the design of a low-cost
policy may cause your premiums to soar a few years down the
road.

The Fort Worth Star-Telegram writes that the customers' cases
are being handled by Dirk Hubbard of Klamann & Hubbard in
Overland Park, Kan. Among their complaints are:

     --Price deception. The Mississippi and Georgia lawsuits
allege that these policies were sold unfairly at low "teaser"
rates. The story noted that Carl Holcomb of Greenville, Miss.,
bought a policy in December 1989 for $86 a month. Just four
months later, the price went to $95, and then to $109. The
lawsuit alleges that Torchmark knew about the increases but
didn't disclose them when the policy was sold. Torchmark
spokeswoman Joyce Lane was reported to say the company has no
comment on this or any other of the allegations.

     --Death spiraling. When health policies show big percentage
increases in premiums, they may have entered a state known as
the "death spiral." According to the Fort Worth Star-Telegram,
here's how the spiral works: An insurer sells a certain number
of policies, and then closes that particular insurance pool. The
next group of buyers goes into a different pool. With no new
blood coming in, the first pool begins to age. Average claims go
up, and pretty soon premiums go up, too. The healthier members
of the pool switch to a cheaper policy. The people left behind
are sicker, so average claims go higher and premiums rise again.
Eventually, no one can afford the policy anymore.

The Fort Worth Star-Telegram reported that Robert Hunter, a
former Texas insurance commissioner, said Torchmark kept its
Globe hospital/surgical policies open for less than two years,
and then closed the pool and introduced slightly different
policies. The insurance regulators "turn a deaf ear" to the
problem, said Tim Ryles of Newborn, Ga., a former Georgia
insurance commissioner, in the story.


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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., Princeton, NJ, and Beard
Group, Inc., Washington, DC. Peter A. Chapman, Editor.

Copyright 1999. All rights reserved. ISSN XXXX-XXXX.

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