CAR_Public/990506.MBX            C L A S S   A C T I O N   R E P O R T E R

             Thursday, May 6, 1999, Vol. 1, No. 65

                          Headlines

* S. 353 Introduced to Limit Attorneys' Fees in Class Actions

ADVANCED TISSUE: Announces Voluntary Dismissal of Securities Suit
BLUE CROSS: Georgia High Court Limits Policyholder Count
COMPAQ COMPUTER: Abraham Firm Files Suit on Behalf of Employees
COMPAQ COMPUTER: Lowey Dannenberg Files Complaint in Texas
CURATIVE HEALTH: Denies Allegations Charged by Shareholders

CHARTER MUNICIPAL: Class Counsel Receives $6 Million in Fees
CORT BUSINESS: Deposits Key Pleadings with the SEC
CUSTOMS SERVICE: Black Women Allege Improper Profiling
FORD MOTOR: Stakes are High in Stalling Vehicle Litigation
IBP: Alabama Court Certifies Class Against Meatpacker

MCKESSON HBOC: HBO & Company Investors Included in Class Action  
MCKESSON HBOC: Bernstein Liebhard Intends to Expand Class
MCKESSON HBOC: Schubert & Reed Files Complaint in California
MCKESSON HBOC: Milberg Weiss Files New Complaint in California
MONY GROUP: Reminds Investors Insurance Case is Dismissed

NETWORKS ASSOCIATES: Keller Rohrback Files Suit in California
NETWORK ASSOCIATES: Shepherd & Geller Files Suit in California
OSICAM TECHNOLOGIES: Bashian Firm Files Complaint in California
PALM BEACH: Florida Suit Seeks to Change School Board Voting
PHILIP SERVICES: Preparing June 1999 Chapter 11 & CCAA Filings

PSS WORLD: Shepherd & Geller Files Complaint in Florida
RAINFOREST CAFE: Wolf Haldenstein Files Revised Complaint
RITE AID: Shepherd & Geller Files Complaint in Pennsylvania
SGL CARBON: Settles Antitrust Case with Justice Department
SUN HEALTHCARE: Klayman Firm Files Complaint in New Mexico

TRAK AUTO: Settles Employee Claims for $4.5 Mil Before Insurance
VIVUS, INC.: Settles Shareholder Lawsuits for $6 Million

                          *********

* S. 353 Introduced to Limit Attorneys' Fees in Class Actions
-------------------------------------------------------------
Legislation to curb abuses of class action lawsuits would prevent
attorneys from extracting exorbitant fees from their clients, its
Senate sponsors said Tuesday.  Unethical attorneys representing
large groups of plaintiffs sometimes arrange their cases so that
they receive fees so large clients are left with little or
nothing, Sens. Chuck Grassley, R-Iowa, and Herb Kohl, D-Wis.,
told a Senate subcommittee.  

"More and more people recognize that the class action  system is
being abused, and that the people who are supposed to be helped
by this process are instead getting used," Grassley said at a
hearing of the Senate Judiciary Committee's panel on
administrative oversight and the courts.

"Ultimately, the current system is benefiting lawyers, not your
average class member," Grassley said.

The bill introduced by Grassley and Kohl would set new rules for
class-action  suits and give federal courts a bigger say in how
they are conducted.  The Justice Department objected to the bill,
saying pushing a lot of cases from state courts to federal courts
would not necessarily solve any problems.  

"There's nothing magical about federal courts," said Assistant
Attorney General Eleanor Acheson. "We do not believe that federal
policy on class actions  is sacrosanct."

Also opposing the bill is Public Citizen Litigation Group, the
legal advocacy arm of Public Citizen, a consumer advocacy
organization.

The bill is "an unwise and ill-considered incursion by the
federal government on the jurisdiction of the state courts,"
Brian Wolfman, a group attorney, said in a written statement.

Grassley and Kohl said they were taking aim against attorneys who
mislead their clients into taking settlements that offer them
little of value or even cost them money, while their lawyers
pocket fees.

"We heard about settlements where plaintiffs receive coupons of
little value or redemption restrictions making them practically
useless, yet their attorneys receive millions of dollars in
attorneys' fees," Grassley said. "We heard about lawyers using
the state court system to get the lowest settlement amount
possible for defendants and the highest amount in attorneys' fees
for plaintiff class lawyers."

Kohl said one of his constituents won a little over $4 as her
share in a class-action lawsuit against her mortgage company.

A few months later, her lawyers charged her $ 80 for their work.
"In total, her lawyers managed to pocket over $ 8 million in
fees, but never explained to the court or to their own clients
that the class - not the defendant - would pay the attorneys'
fees."

The bill would:

     * Require that state attorneys general be notified of any
proposed class settlement that affects their residents so they
can object if the settlement terms are unfair.

     * Penalize frivolous class action  filings by requiring
courts to impose sanctions.

     * Require that attorneys' fees be based on a reasonable
percentage of damages paid to class members.

     * Allow more class-action  lawsuits to be moved from state
court, either by a defendant or unnamed class member, to federal
court, where class-action  rules are stricter.

     * Require that settlement notices be written in "plain
English" and include the amount of attorneys' fees.


ADVANCED TISSUE: Announces Voluntary Dismissal of Securities Suit
----------------------------------------------------------------
Advanced Tissue Sciences, Inc. (Nasdaq: ATIS) announced Tuesday
that the federal securities class action  filed against the
Company and two of its officers last year has been voluntarily
dismissed by lead plaintiffs' counsel.  No payment was made by
Advanced Tissue Sciences.  Voluntary dismissal terminates the
action.  The Company was represented in the case by the law firm
of Brobeck, Phleger & Harrison LLP.

Commenting on the dismissal, Arthur J. Benvenuto, Chairman of the
Board and Chief Executive Officer, stated, "We are pleased that
the action has been voluntarily dismissed after plaintiffs'
counsel completed a conscientious and thorough review of the
facts.  We look forward to concentrating exclusively on our core
business objectives."

Advanced Tissue Sciences, Inc. is a tissue engineering company
utilizing its proprietary core technology to develop and
manufacture human-based tissue products for tissue repair and
transplantation.  The Company, through its Dermagraft Joint
Venture with Smith & Nephew plc, currently has two products on
the market: TransCyte(TM), a temporary covering for second-degree
(partial-thickness) and third-degree (severe, full-thickness)
burns, and Dermagraft(R), a living dermal replacement for the
treatment of diabetic foot ulcers (currently available in Canada
and the United Kingdom).  The Company is conducting a multi-
center trial for Dermagraft for diabetic foot ulcers in the
United States, and is pursuing additional indications for
Dermagraft, including venous and pressure ulcers, through the
Dermagraft Joint Venture. The Company is also developing products
for cartilage and cardiovascular applications.


BLUE CROSS: Georgia High Court Limits Policyholder Count
--------------------------------------------------------
Andy Miller, a Staff Reporter for the Associated Press, relates
that the Georgia Supreme Court, reversing a lower court decision,
said Monday that only 70,000 policyholders would benefit from
Blue Cross and Blue Shield of Georgia's acquisition by
California-based WellPoint Health Networks.  The ruling removes a
major legal obstacle to the $ 500 million acquisition of
Georgia's largest health insurer, originally expected to close at
the end of last year.  

The 70,000 policyholders at the time of Blue Cross' 1996
conversion to a for-profit company will get about $ 4,000 or the
equivalent of WellPoint stock if the acquisition is approved, as
expected.  The transaction had been delayed by a December
decision by a Superior Court judge in Richmond County to double -
-- to 144,000 --- the number of policyholders entitled to five
shares of stock in Cerulean, the parent company of Blue Cross.

The Superior Court judge ruled in favor of a class of 74,000
plaintiffs in a class-action  lawsuit, who argued they should
receive shares, too --- although they failed to sign up for the
stock offer. If that ruling had been upheld, the value of the
benefit to shareholders would have slipped to about $ 1,850.  
About 144,000 policyholders originally received notice that they
were entitled to receive the shares because they had individual
policies or were members of employer plans that weren't self-
insured. But only 70,000 of them signed up. Blue Cross said it
filed an appeal to the Superior Court ruling to protect the
interests of those 70,000 policyholders.

Blue Cross said it was pleased by the Supreme Court's decision.
"The court said these people had several opportunities to
challenge the offering of shares in the conversion,'' said
Charlie Harman, a Blue Cross vice president. Monday's ruling
affirmed the conversion and Insurance Commissioner John
Oxendine's handling of it, Blue Cross added.  Blue Cross is
expected to file a motion in Richmond County to dismiss
plaintiffs' charges of misrepresentation on the original proxy
notice.

Oxendine must still approve the acquisition. No hearing date has
been set, an Oxendine spokesman said.

Blue Cross shareholders must approve the deal as well. A
shareholder meeting is now expected within six weeks, Harman
said. Blue Cross and WellPoint, based in Thousand Oaks, Calif.,
expect the deal to close this summer, he added.  The acquisition
would have a big payoff to several groups.

First, the deal would provide a windfall to private investors who
sank almost $ 50 million into Cerulean during the conversion.
They would earn a net profit of about $ 60 million on the
investment when the acquisition closes. The deal would also allow
about 280 Blue Cross employees to share in a $ 28 million
incentive bonus.  And the acquisition would lead to a payment of
about $ 80 million in WellPoint stock to a new Georgia health
care foundation.  That endowment stemmed from a settlement
between Blue Cross and several consumer groups that challenged
the insurer's conversion to a for-profit company.

The groups filed suit in 1997, claiming that Blue Cross, with
years of tax breaks as a non-profit, should donate its assets to
charity upon conversion.  

"Everything has been on hold, pending this court decision," Lynn
Thogersen of Let's Get Together, a disabilities advocacy group
that joined conversion lawsuit, told the AP.  "We're happy
because this will allow Healthcare Georgia to go forward on its
mission --- to advance health care for all Georgians."


COMPAQ COMPUTER: Abraham Firm Files Suit on Behalf of Employees
---------------------------------------------------------------
Law Offices of Jeffrey S. Abraham, representing a proposed class
consisting of former and current employees of Compaq Computer
Corporation (NYSE: CPQ) who purchased Compaq securities
including, without limitation, the Compaq Stock Fund, which were
issued pursuant to registration statements and prospectuses
during the period of January 27, 1999 through April 9, 1999,
inclusive, has filed a class action suit against Compaq.

The suit was filed in the United States District Court for the
Southern District of Texas where Compaq maintains its, names
Compaq, Eckhard Pfeiffer and Earl Mason as defendants and alleges
that they violated Section 11 of the Securities Act of 1933 by
making materially misleading statements or omitting to state
facts necessary to make other statements made in the relevant
registration statements and prospectuses not materially
misleading.

OPEN MARKET PURCHASERS OF COMPAQ SECURITIES ARE NOT REPRESENTED
IN THIS LAWSUIT and are instead part of the class defined in
previously filed actions seeking a recovery on behalf of such
open market purchasers. ONLY PERSONS WHO PURCHASED COMPAQ
SECURITIES PURSUANT TO A REGISTRATION STATEMENT AND/OR PROSPECTUS
DURING THE CLASS PERIOD ARE INCLUDED WITHIN THE CLASS WHICH IS
THE SUBJECT OF THIS NOTICE.  

For details, contact Jeffrey S. Abraham of the Law Offices of
Jeffrey S. Abraham, toll-free at 800-938-0015 or at
Jsalaw@aol.com via Internet e-mail or Gary S. Graifman at
Kantrowitz, Goldhamer & Graifman, P.C. toll-free at 800-660-7843
or at KGLAW1@aol.com via Internet e-mail.


COMPAQ COMPUTER: Lowey Dannenberg Files Complaint in Texas
----------------------------------------------------------
Lowey Dannenberg Bemporad & Selinger, P.C., has filed a class
action  lawsuit in the United States District Court for the
Southern District of Texas on behalf of purchasers of Compaq
Computer Corporation (NYSE:CPQ) common stock from January 27,
1999 through April 9, 1999, inclusive.  

The complaint charges Compaq and certain of its officers with
violations of the federal securities laws which artificially
inflated the market price of Compaq stock during the Class
Period.  The complaint alleges that during the Class Period,
defendants issued a series of false and misleading statements
regarding the Company's operating results, future prospects, and
demand for its products.  In advance of the revelation of the
truth regarding the reduced demand for Compaq's products, Company
insiders sold in excess of $ 48 million in Compaq common stock to
the unsuspecting investing public at artificially inflated
prices.  Following these disclosures, the market price of Compaq
common stock, which traded at over $ 51 per share during the
Class Period, closed at about $ 24 per share.  

Contact Vincent Briganti, Esq. Lowey Dannenberg Bemporad &
Selinger, P.C. The Gateway, 11th Floor One North Lexington Avenue
White Plains, NY 10601-1714 TOLL FREE TELEPHONE: 877-777-3581
FAX: 914-997-0035 EMAIL: ldbs@westnet.com


CURATIVE HEALTH: Denies Allegations Charged by Shareholders
-----------------------------------------------------------
CURATIVE HEALTH SERVICES, INC., and its officers and directors
acknowledge in a regulatory filing with the SEC that they have
been named as defendants in three class actions pending in the
U.S. District Court for the Eastern District of New York alleging
securities fraud claims under the Securities Exchange Act of
1934.  The three securities class action cases follow the
disclosure on April 9, 1999 that the U.S. Department of Justice
had joined in a "whistleblower" lawsuit charging the Company with
Medicare fraud.  The Plaintiffs essentially are asserting that
the Company materially overstated its earnings by knowingly
failing to disclose its purportedly improper contractual charges
to hospitals.

The Company, itself, is neither a provider nor a supplier
participating in the Medicare program.  The Company has entered
into contracts with more than 170 hospitals for its services in
managing Wound Care Centers.  The Company believes its charges,
to the hospitals, are fair market value for the services that it
furnishes.  The Company says it will defend itself vigorously in
the securities class actions.  The Company believes that it has
made appropriate and timely disclosure concerning the facts,
which are the subject of the "whistleblower" lawsuit.


CHARTER MUNICIPAL: Class Counsel Receives $6 Million in Fees
------------------------------------------------------------
As part of the settlement of class action litigation known as
Prudential Securities Inc. Limited Partnership Litigation, MDL
No. 1005 relating to CHARTER MUNICIPAL MORTGAGE ACCEPTANCE CO.'s
predecessor partnerships, counsel for the partners of the
Partnerships had the right to petition the United States District
Court for the Southern District of New York for additional
attorney's fees in the form of CharterMac's shares of beneficial
interest in an amount to be determined in the Court's sole
discretion and based upon a percentage of the increase in value
of CharterMac, one year after CharterMac's formation.

On February 18, 1999, the Court issued an Order and Stipulation
of Settlement which stated that Class Counsel is entitled to
receive 608,955 Counsel Fee Shares, representing Added Value of
$7,788,536.

In lieu of the issuance of shares, on April 15, 1999, Related
Charter, LP, on behalf of CharterMac, reached an agreement with
Class Counsel for a cash settlement of $6,089,955, to be paid on
or before April 30, 1999. Pursuant to the Agreement, the cash
settlement will be in full satisfaction of Class Counsel's
entitlement under the Order, and Class Counsel will have no right
now or in the future to receive any shares of CharterMac, or any
other consideration of any kind, from Charter.


CORT BUSINESS: Deposits Key Pleadings with the SEC
--------------------------------------------------
Under cover of Form 8-K, CORT BUSINESS SERVICES CORP. provides
the Securities and Exchange Commission -- and the public -- with
copies of three Delaware shareholder suits filed against it.  
Specifically, the Company deposited copies of:

     Exhibit 99.4 -- Complaint in the Court of Chancery of the
State of Delaware, naming Michael Sternberg, as Plaintiff, and
the Company, each of the directors of the Company, and Citicorp
Venture Capital Ltd., as Defendants.

     Exhibit 99.5 -- Complaint in the Court of Chancery of the
State of Delaware, naming Harbor Finance Partners, as Plaintiff,
and the Company, each of the directors of the Company, and
Citicorp Venture Capital Ltd., as Defendants.

     Exhibit 99.6 -- Complaint in the Court of Chancery of the
State of Delaware, naming Harold Shapiro, as Plaintiff, and the
Company, each of the directors of the Company, Bruckmann, Rosser,
Sherrill & Co. and Citicorp Venture Capital Ltd., as Defendants.

Full-text copies of these pleadings are available for free at
http://www.sec.gov/cgi-bin/srch-edgar?0000893220-99-000511via  
the Internet.


CUSTOMS SERVICE: Black Women Allege Improper Profiling
------------------------------------------------------
A black Tampa, Florida, woman has joined scores of others
nationwide who are suing the federal government over claims that
the U.S. Customs Service subjected them to unnecessary and
humiliating drug searches, reports the St. Petersburg Times.
Attorneys for Rhonda Larry, a 32-year-old mother of two, filed
suit Monday in U.S. District Court, seeking unspecified damages
for financial, mental and physical harm she said she suffered
when she returned from a weeklong vacation to Jamaica last
spring.  Larry, who could not be reached for comment Monday,
becomes the latest black woman to detail a harrowing experience
other women have compared to rape. Some women have said they have
even been forced to remove sanitary napkins during airport
searches.  

In a class-action suit involving nearly 100 women in Chicago,
black women or their attorneys said in the suit and in a Dateline
NBC program aired last week that the Customs Service is targeting
black women as suspected drug couriers.  The Customs Service has
responded to the criticism by appointing an independent panel to
find out if black women are being wrongly selected for searches.

Reached at his office Monday in Washington, D.C., Dennis Murphy,
director of public affairs for the Customs Service, said he does
not believe his agency targets black women.

"We don't profile by race," Murphy said. "That's clear. The
overall statistics do not imply that there's a problem. But there
are those suits out there, and there is perception."

Larry's suit claims customs agents at Tampa International Airport
went way beyond their jobs on April 16, 1998.

According to the suit, Larry arrived wearing a professional pant
suit and was questioned about her ticket by customs agents, who
then searched her luggage before ordering her into a small room
for a "pat down" search by a female agent.  Larry was in the room
for more than an hour, the suit states, before she was taken to
Tampa General Hospital "for a non-routine border search."  There,
the suit states, Larry was forced to consent to a blood and urine
test as well as an abdominal X-ray and an ECG and EKG.

Timothy Prugh, Larry's attorney, said he is not sure why Larry
was taken to Tampa General and given the tests. "I guess she was
a suspect," Prugh said.  According to the suit, Larry was led
through the hospital handcuffed, then was handcuffed to a bed and
was not allowed to call her family during the approximately three
hours she was detained at Tampa General.    The suit, which
includes claims of false imprisonment and negligent training,
supervision, retention and assignment of inspection agents,
states agents never found drugs on Larry or in her luggage

Months later, after the agency rejected an administrative claim
she filed, Larry's attorney said his client still has not
received an apology.

"They put her through the drill," Prugh said. "There was not so
much as a "Hi, bye, thank you, ma'am.' "

Customs officials at TIA referred questions to an agency
spokesman in Miami. The spokesman was out of town, but Jim
Moster, associate chief counsel for the agency's southeastern
region, said apologies in cases like Larry's might not always be
appropriate.

"I think certainly the agency can apologize for inconveniencing
people," Moster said. "I don't know that the agency can apologize
for doing something wrong because we may have done everything
right. They just might not have had drugs on them."

Instead of an apology, Dateline NBC's segment showed the agency
issued a form letter to people who were involved in searches
where no drugs were found. "To be frank," Dateline NBC quotes
from the letter, "we are not at all sorry. As a matter of fact,
we are pleased you have complied with our laws."

Murphy said the agency is considering issuing apologies in cases
where people have been unnecessarily searched.


FORD MOTOR: Stakes are High in Stalling Vehicle Litigation
----------------------------------------------------------
In the largest class-action lawsuit ever to go to trial against a
U.S. automaker, the Ford Motor Co. is accused of fraudulently
covering up a potentially dangerous stalling problem in 22
million cars and trucks.  The trial, set for May 11 in
California's Alameda County Superior Court, contends that Ford
withheld information about a defective ignition module from
federal regulators and the public.  

The lawsuit seeks $3-4 billion in damages. Ford could face
damages in five companion lawsuits filed on behalf of another 27
million past or present Ford owners.  Spokesman Jim Cain said the
$4 billion figure represented the estimated damages that Ford
could face if it lost on all counts.

About three million plaintiffs in California accuse the No 2 car-
maker of putting faulty ignition modules in 1.7 million 1983-95
cars and trucks that could cause the vehicles to stall. The thick
film ignition modules, which pass sparks to the distributor which
in turn sends them to the spark plugs, were intended to improve
engines.


IBP: Alabama Court Certifies Class Against Meatpacker
-----------------------------------------------------
Joe Whatley, Esq., of Whatley Drake, LLC, advises that, on April
29, 1999, the Court certified the class in Pickett v. IBP, CV 96-
A-1103-N (M.D.Ala.).  The case involves claims under the Packers
& Stockyards Act against IBP, the largest beef packer.  The class
includes all persons and entities who sold finished beef cattle
to IBP on the cash market at any time since February 1, 1994.  
Contact Mr. Whatley at JWHATLEY@whatleydrake.com via e-mail.


MCKESSON HBOC: HBO & Company Investors Included in Class Action  
----------------------------------------------------------------
Kaplan, Kilsheimer & Fox LLP intends to file an additional Class
Action  suit against McKesson HBOC, Inc. (NYSE: MCK) and certain
of its officers and directors on behalf of all purchasers of HBO
& Company securities between April 14, 1998 and January 12, 1999.

Kaplan, Kilsheimer & Fox LLP previously filed on behalf of all
shareholders who purchased or otherwise acquired common stock of
McKesson Corp. between October 18, 1998 and April 27, 1999,
including all holders of HBO & Company stock on January 12, 1999
(without regard to the date of acquisition).  

Contact: Frederic S. Fox, Esq.
         Janine Azriliant, Esq.
         Donald R. Hall, Esq.
         Kaplan, Kilsheimer & Fox LLP
         (800) 290-1952
         e-mail address: lawkkf@aol.com


MCKESSON HBOC: Bernstein Liebhard Intends to Expand Class
---------------------------------------------------------
Bernstein Liebhard & Lifshitz, LLP commenced a securities class
action  lawsuit on behalf of securities holders of McKesson HBOC,
Inc. (NYSE: MCK), intends to expand the class period in an
amended complaint.  The expanded class period will include all
persons who held McKesson securities as of April 27, 1999.

Contact Mel E. Lifshitz Esq., or Michael S. Egan, Esq., at
Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New
York, New York 10016, 800-217-1522 or 212-779-1414 or at
mckesson@bernlieb.com by e-mail.


MCKESSON HBOC: Schubert & Reed Files Complaint in California
------------------------------------------------------------
A class action securities complaint, Case No. C-99-2063-MMC, was
filed on April 29, 1999, in the United States District Court for
the Northern District of California on behalf of public investors
who purchased common shares of McKesson HBOC, Inc. (NYSE: MCK)
predecessor HBO & Company, Inc. between April 14, 1998 and
January 12, 1999, inclusive.

The Complaint is filed against McKesson HBOC, Inc., the company's
Chairman Charles McCall and the former HBOC's CFO Jay Gilbertson.
The claims arise under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The
Complaint alleges that defendants misrepresented and omitted
material facts in the public statements and financial reports
issued during the period, including the fact that McKesson HBOC,
Inc.'s reported financial results for the fourth quarter ended
March 31, 1999, were overstated by $26.2 million due to improper
revenue recognition practices violative of Generally Accepted
Accounting Principles, and that revenues from earlier periods
were similarly overstated by $16.0 million. When the market
learned the truth on April 28, 1999, McKesson HBOC, Inc. shares
lost nearly 50% of their value in a single day's trading, closing
at $34-1/2, down from the prior day's close of $65-3/4.  

The plaintiff is represented by the San Francisco law firm of
Schubert & Reed LLP. Contact Robert C. Schubert or Juden Justice
Reed of Schubert & Reed LLP, Two Embarcadero Center, Suite 1050,
San Francisco, CA 94111, by telephone at 415-788-4220, by fax at
415-788-0161 or at mail@schubert-reed.com by e-mail.


MCKESSON HBOC: Milberg Weiss Files New Complaint in California
--------------------------------------------------------------
Milberg Weiss Bershad Hynes & Lerach LLP yesterday announced that
a new class action  entitled Berman v. McKesson HBOC, Inc., et
al., Case No. C-99-2044-JL, has been commenced in the United
States District Court for the Northern District of California on
behalf of:

    -- purchasers of the common stock of McKesson between
       October 19, 1998 and January 12, 1999, inclusive;

    -- purchasers of the common stock of McKesson HBOC, Inc.
       (NYSE:MCK) between January 12, 1999 and April 27, 1999,
       inclusive;

    -- purchasers of the common stock of HBOC, Inc. (HBOC)
       between October 19, 1998 and January 12, 1999, inclusive;

    -- the former stockholders of US Servis ("Servis") who
       exchanged their Servis shares for the common stock of
       HBOC;

    -- the former stockholders of IMNET Systems, Inc. ("IMNET")
       who exchanged their IMNET shares for the common stock of
       HBOC; and

    -- the former stockholders of Access Health, Inc. ("Access")
       who exchanged their Access shares for the common stock of
       HBOC.

The complaint charges McKesson and certain of its officers and
directors with violations of the federal securities laws by
making misrepre-senta-tions about McKesson's business, earnings
growth and financial statements and its ability to continue to
achieve profitable growth. By issuing these allegedly false and
misleading statements, defendants artificially inflated
McKesson's stock price to a Class Period high of $ 89-3/4 in
January 1999, before the true facts about McKesson's troubled
opera-tions, diminished profitability and false financial
statements were revealed and McKesson's stock collapsed to as low
as $32 per share.

Contact William Lerach at Milberg Weiss Bershad Hynes & Lerach
LLP, 800/449-4900 by phone or wsl@mwbhl.com via e-mail.  


MONY GROUP: Reminds Investors Insurance Case is Dismissed
---------------------------------------------------------
On March 18, 1999, the Appellate Division  of the Supreme Court
of the State of New York unanimously affirmed the 1997 Supreme
Court dismissal of a national class action lawsuit involving
sales  practices against MONY Life Insurance Company (the
principal subsidiary of The  MONY Group Inc.).  The case involved
the "vanishing premium" concept in the sale of life insurance
policies in the 1980s and early 1990s.  Any further appeal
requires permission from the New York Court of Appeals.  MONY
reminded investors of this in connection with its earnings
announcement yesterday, reporting $46 million in net income
during the first quarter.


NETWORKS ASSOCIATES: Keller Rohrback Files Suit in California
-------------------------------------------------------------
Keller Rohrback L.L.P. has filed a new class action  lawsuit in
the U.S. District Court for the Northern District of California
against Networks Associates, Inc. and certain of its officers and
directors by IRA and Trust plaintiffs, which seek to recover
damages on behalf of a Class of all persons who purchased or
otherwise acquired common stock of Networks Associates
(Nasdaq:NETA) between January 20, 1998 and April 19, 1999,
inclusive. Excluded from the Class are NETA and its affiliates,
NETA's managers, officers, and directors, and immediate family
members of the individual defendants, and of NETA's managers,
officers, and directors.

The complaint charges that during the Class Period the
defendants, including NETA, violated the federal securities laws
by misrepresenting and/or failing to disclose material
information regarding Networks Associates' financial results and
business prospects, giving the false impression that the
Company's finances were accurately reported, that its business
was healthy, its prospects good, and that it would earn in the
range of $ 2.12 per share in 1999.  These alleged false
statements caused the price of the Company's stock to be
artificially inflated during the entire Class Period to levels as
high as $ 67-11/16 per share.  The Individual Defendants, all of
them senior executive officers of the Company, are also alleged
to have taken advantage of such inflated stock prices and their
insider knowledge of undisclosed adverse information, by selling
almost $ 33 million of their Networks Associates stock during the
Class Period.  When Networks Associates belatedly revealed, among
other things, that an SEC investigation had uncovered improper
accounting practices and that its first quarter 1999 earnings
would be substantially less than previously indicated by the
defendants and the First Call analyst consensus, the price of
Networks Associates shares plummeted, and investors who purchased
NETA were damaged thereby. Subsequently, the stock fell
precipitously again when full year estimates were sharply reduced
by NETA.  

Contact Lynn L. Sarko, Juli Farris, or Alex Perkins, of Keller
Rohrback L.L.P, toll-free at 800/776-6044, or at
aperkins@kellerrohrback.com via e-mail.  


NETWORK ASSOCIATES: Shepherd & Geller Files Suit in California
--------------------------------------------------------------
The Law Firm of Shepherd & Geller, LLC announced today that it
has filed, along with the law firm of Scott & Scott, LLC, a class
action  in the United States District Court, Northern District of
California, on behalf of all individuals and entities that
purchased NETWORK ASSOCIATES, INC. common stock (Nasdaq:NETA)
between January 20, 1998 and April 19, 1999.

The complaint charges that Network Associates, Inc. and certain
of its officers and directors violated the federal securities
laws by making numerous false and misleading statements about the
Company's financial results and business prospects during the
class period, causing the stock to trade at artificially inflated
prices as high as $ 67 per share. The lawsuit further alleges
that, during that time, certain company insiders sold off shares,
reaping millions of dollars in insider profits. On April 6, 1999,
the Company announced that it had overstated certain expenditures
and understated certain expenses, causing the stock price to
fall. On April 19, Defendants admitted that dealer inventory was
so enormous that sales would drop significantly.  

Contact  Paul J. Geller SHEPHERD & GELLER, LLC 7200 West Camino
Real, Suite 203 Boca Raton, FL 33433 561/750-3000 Toll Free: 1-
888-262-3131 E-mail: pgeller@classactioncounsel.com or Scott R.
Shepherd SHEPHERD & GELLER, LLC 117 Gayley St., Suite 200 Media,
PA 19063 610/891-9880 Toll Free: 1-877-891-9880 E-mail:
sshepherd@classactioncounsel.com


OSICAM TECHNOLOGIES: Bashian Firm Files Complaint in California
---------------------------------------------------------------
A class action lawsuit was filed in U.S. District Court in Los
Angeles against Osicom Technologies, Inc. (Nasdaq: FIBR) and
certain of its officers and directors by Law Offices of James V.
Bashian, P.C., on behalf of purchasers of Osicom Technologies,
Inc. securities between July 2, 1998 and April 21, 1999.  Contact
James V. Bashian, Esq., or Oren Giskan, Esq. at 800-556-8856 or
osgiskan@aol.com


PALM BEACH: Florida Suit Seeks to Change School Board Voting
------------------------------------------------------------
Democratic Representative Alcee Hastings filed a class-action
suit against Palm Beach County officials because they "haven't
endorsed" single-member school board districts.  Hastings'
attorneys said the suit was filed "on behalf of more than" 1K
black Palm Beach County residents "because all black community
members have the same problem in getting their feelings across at
election time."  The suit "asks a circuit judge to order a
referendum this fall so that voters can decide if they'd rather
be represented by school board members elected by voters only in
each member's district." Currently the seven board members, "who
are all white," are elected by voters county-wide.  Hastings:
"I'm tired of the fight to get white people to accept that black
people have rights" (Flannery, Palm Beach Post 03-May-1999)


PHILIP SERVICES: Preparing June 1999 Chapter 11 & CCAA Filings
--------------------------------------------------------------
In 1997, Philip Services Corp. implemented an acquisition program
designed to establish Philip as one of North America's leading
metals processing and industrial services providers. During 1997,
the Company acquired over 30 businesses at a cost of
approximately $1.3 billion. The Company commenced 1998 with the
objective of integrating the businesses it had acquired in 1997.
The integration was interrupted by a series of events which
occurred in 1998 that had a devastating impact on the Company and
resulted in it recording a fiscal 1998 loss of $1.6 billion
including special charges of $1.2 billion.

The first event was the discovery and announcement in January
1998 of a discrepancy between the book and physical inventory
values in the Company's yard copper business. The announcement of
the discrepancy raised serious questions about the integrity of
the Company's accounting and the effectiveness of its
control systems and had a significant negative impact on the
Company's business. After the announcement, numerous class action
lawsuits and related claims were commenced against the Company in
the United States and Canada.  An exhaustive examination of the
discrepancy was conducted by the Company, its auditors and
special counsel to a committee of independent directors of the
Company's Board of Directors. As a result of these
examinations, it was determined that, amongst other things,
unrecorded losses totalling $92 million arising from unauthorized
trading of copper outside the Company's normal business practices
had been incurred. The Company commenced a civil action against
the former president of its metals division and others
engaged in the trading in an effort to recover its losses and
reported the activities to criminal and other appropriate
authorities. As a result of the Company's findings, Philip
restated its previously reported financial results for 1997, 1996
and 1995. In addition, the staff of the Securities and Exchange
Commission is conducting a formal investigation of the
circumstances surrounding the 1997, 1996 and 1995 restatements of
the Company's financial statements.

To compound matters, starting in late 1997 and continuing
throughout 1998, there was a significant deterioration in the
Company's copper and ferrous processing businesses due to the
most significant decline in metals prices in over 20 years. The
Company's Industrial Services Group failed to achieve its cost
reduction objectives and its by-products business performed
weakly, reflecting industry wide competitive conditions. In
addition, declining crude oil prices, which resulted in deferred
maintenance spending by customers with petrochemical refinery
operations, negatively impacted the revenue and profitability of
the Industrial Services Group's operations. The Company
reported a first quarter 1998 loss of $565,000 and a second
quarter 1998 loss of $73 million. Various initiatives were
implemented throughout the year in an effort to improve the
Company's operating and financial performance. Management
changes were made, including the appointment of a new Chairman,
President and Chief Executive Officer, Chief Financial Officer,
Chief Administrative Officer and Presidents of the Company's
Metals Services and Industrial Services Groups.

The deterioration in its principal business segments impaired
Philip's ability to comply with the terms of its then $1.5
billion syndicated credit agreement.  In June of 1998, the
Company announced its intention to sell its ferrous and non-
ferrous operations and various non-core assets in order to reduce
and restructure its debt. The Company sold its steel distribution
business in July 1998 for $95 million. However, weak ferrous
market conditions lowered the value of the remaining assets and
the Company subsequently determined that it would not proceed
with the sale of its ferrous businesses.

By July of 1998, the Company was not in compliance with the terms
of its Credit Agreement and sought certain amendments from its
lending syndicate.  Philip did not reach an agreement with its
lenders and accordingly, as at June 30, 1998, $1.04 billion of
debt outstanding under the Credit Agreement was classified as a
current liability on the Company's consolidated balance sheet.

As the Company's operating results deteriorated, questions arose
as to its ability to meet its obligations under the Credit
Agreement and whether the Company had sufficient available cash
to satisfy its working capital and capital expenditure needs. In
the third quarter of 1998, a number of factors, including
a continuing downturn in metal markets, a permanent decline in
the value of investments held by the Company, and the decision to
exit certain activities or locations and to divest of the
Company's aluminum and US ferrous operations caused the Company
to take special charges of $357 million and report a net loss
of $645 million. The Company again made management changes
including the appointment in October 1998 of a new Interim Chief
Executive Officer and Chief Restructuring Officer.

In November 1998, the Company ceased making payments on various
debt obligations including the $1.02 billion outstanding under
the Credit Agreement. Thereafter, Carl Icahn, the Company's
largest shareholder and debt holder, together with another
lender, announced that they were considering utilizing
involuntary insolvency proceedings to protect their interests
unless the Company met with them to formulate a pre-packaged plan
to transfer the ownership and control of the business to the
Company's lending syndicate.  The Company commenced negotiations
with Mr. Icahn and entered into a standstill agreement with him
and the other lender on November 20, 1998. The agreement
contemplated a restructuring plan whereby the debt outstanding
under the Credit Agreement would be converted into $200 million
of new secured debt and the distribution of 90% of the equity of
the restructured entity to the syndicated debt holders. In
accordance with the terms of the standstill agreement, the
Company appointed two new directors nominated by Mr. Icahn to the
Company's Board of Directors. Also, in November 1998, the Company
replaced its then acting Interim Chief Executive Officer and
appointed its Executive Vice Chairman, Allen Fracassi, as Interim
Chief Executive Officer.

After discussions with its lending syndicate, the Company
determined that the restructuring plan contemplated by the
November 20, 1998 standstill agreement would not be approved by
the required number of lenders. The Company presented an
alternative debt restructuring plan to its lending syndicate on
December 15, 1998 which provided for the conversion of a smaller
portion of the debt outstanding under the Credit Agreement into
equity in an amount to be negotiated with its lending syndicate.

                        RECENT DEVELOPMENTS

On January 11, 1999, the Company announced that it had negotiated
a term sheet with a sub-committee of the steering committee of
its syndicated lenders.  The term sheet set forth the principal
terms of restructuring the Company under a pre-packaged plan of
reorganization. Under the January 11, 1999 term sheet, $550
million of debt outstanding under the Credit Agreement would be
restructured into $350 million of senior secured term debt and
$200 million of secured payment in-kind notes. The balance of the
debt outstanding under the
Credit Agreement of approximately $550 million would be exchanged
for 90% of the common shares of the restructured Company.
Throughout January and February and into early March 1999, the
Company continued negotiations with its lending
syndicate in an effort to obtain an agreement on a plan to
restructure the Company.

On January 12, 1999, the Company announced that it had closed the
sale of certain of its aluminum operations for $69.5 million.

On March 8, 1999, the Company announced that it had concluded
negotiations with the steering committee of its syndicated
lenders on the terms of a lock-up agreement.  Members of the
steering committee, who held in excess of 50% of the outstanding
syndicated debt, agreed to the form of Lock-Up Agreement. The
agreement provided for the conversion of approximately
$1.02 billion of secured debt outstanding under the Credit
Agreement into $300 million of senior secured debt, $100 million
in convertible secured payment in-kind notes and 90% of the
common shares of the restructured Company.

On March 26, 1999, the Company announced that it had entered into
a definitive agreement to sell its 68% interest in Philip
Utilities Management Corporation for net proceeds of
approximately $67 million in cash.  The proceeds of the
disposition will be used to pay down the Company's outstanding
debt under the Credit Agreement. Under the terms of the Lock-Up
Agreement, if the Company completes the sale of Philip Utilities
Management Corporation, the senior secured debt of the
restructured Company will be reduced from $300 million to $250
million.

On April 26, 1999, the Company announced that the terms of the
Lock-Up Agreement had been approved by its lending syndicate.  
The Company will now prepare, in conjunction with its lending
syndicate, a pre-packaged plan of reorganization.  The
Company expects to file the Plan in June 1999 under Chapter 11 of
the United States Bankruptcy Code and in Canada under the
Companies Creditors Arrangement Act, and to emerge from the
restructuring process within 60 to 90 days thereafter.  Key to
the Plan is the preservation of the value of the Company's
business through the protection of its employees, customers and
ongoing trade suppliers. There can be no assurance that the Plan
will be filed and if filed, that it will be approved by the
required stakeholders and the courts having jurisdiction over
such matters. If the Plan is not approved, there can be no
assurance that the Company will continue as a going concern.


PSS WORLD: Shepherd & Geller Files Complaint in Florida
-------------------------------------------------------
The law firm of Shepherd & Geller, LLC announced yesterday that
it has filed a class action  lawsuit in the United States
District Court, Middle District of Florida, on behalf of all
individuals and entities that purchased the common stock of PSS
World Medical, Inc. (NYSE:PSSI) between June 16, 1998 and March
10, 1999, inclusive.

The complaint charges that PSS World Medical, Inc. and certain of
its officers and directors violated the federal securities laws
by improperly accounting for certain merger acquisitions. The
Complaint alleges that Defendants' improper accounting
methodologies caused the price of the Company stock to be
artificially inflated during the Class Period. Then, when the
Company revealed that it was the target of an SEC investigation
over its accounting practices, the stock price plunged.  

Contact Paul J. Geller SHEPHERD & GELLER, LLC 7200 West Camino
Real, Suite 203 Boca Raton, FL 33433 (561) 750-3000 Toll Free: 1-
888-262-3131 E-mail: pgeller@classactioncounsel.com or Scott R.
Shepherd SHEPHERD & GELLER, LLC 117 Gayley St., Suite 200 Media,
PA 19063 (610) 891-9880 Toll Free: 1-877-891-9880 E-mail:
sshepherd@classactioncounsel.com


RAINFOREST CAFE: Wolf Haldenstein Files Revised Complaint
---------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP, as previously court
appointed lead counsel, announces that it filed a subsequent and
revised complaint in the United States District Court for the
District of Minnesota on behalf of investors who purchased the
common stock of Rainforest Cafe, Inc. (NASDAQ:RAIN) between
October 20, 1997, and January 6, 1998.

The revised complaint charges that Rainforest and certain
officers and directors of the Company violated the federal
securities laws and regulations of the United States.
Specifically, the complaint alleges that during the Class Period,
defendants failed to disclose material facts concerning declining
sales in the Company's restaurants and issued a series of
misstatements concerning the Company's future earnings prospects.  

Contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison
Avenue, New York, New York 10016, by telephone at (800) 575-0735
(Gregory Mark Nespole, Esq. or legal assistant Michael Miske),
classmember@whafh.com or whafh@aol.com via e-mail.  


RITE AID: Shepherd & Geller Files Complaint in Pennsylvania
-----------------------------------------------------------
Shepherd & Geller, LLC, announced that a class action  has been
filed in United States District Court, Eastern District of
Pennsylvania, on behalf of all purchasers of Rite Aid Corporation
common stock (NYSE:RAD) during the period December 14, 1998
through March 11, 1999.

The complaint charges that Rite Aid Corporation and certain of
its officers and directors violated the federal securities laws
by issuing false and misleading statements to the investing
public regarding the Company's financial results. When the truth
about the Company's financials was revealed, the price of the
stock collapsed.  

Contact Scott R. Shepherd SHEPHERD & GELLER, LLC 117 Gayley St.,
Suite 200 Media, PA 19063 (610) 891-9880 Toll Free: 1-877-891-
9880 E-mail: sshepherd@classactioncounsel.com or Paul J. Geller
SHEPHERD & GELLER, LLC 7200 West Camino Real, Suite 203 Boca
Raton, FL 33433 (561) 750-3000 Toll Free: 1-888-262-3131 E-mail:
pgeller@classactioncounsel.com


SGL CARBON: Settles Antitrust Case with Justice Department
----------------------------------------------------------
SGL CARBON AG (NYSE: SGG) announced today that it has entered
into plea agreements, settling the antitrust investigation by the
United States Department of Justice (DoJ) regarding graphite
electrodes.  As a result, the Company will pay a total fine of
US-$ 145 million, made up by US-$ 135 million for the Company and
US-$ 10 million, respectively, for the Chairman of the Board of
Management, Robert J. Koehler.  As a consequence, the DoJ has
agreed not to take any action against any of the Company's other
employees in connection with any related charges.  With these
agreements, the DoJ has concluded its investigation into the
business activities of SGL CARBON AG and its subsidiaries.

The amount of US$145 million will be payable in six annual
installments interest-free.  As a result, the net present value
of the agreements is significantly below the nominal value and
improves the cash flow position considerably.  

The Company stated that it has agreed to this settlement with the
U.S. authorities in order to resolve nearly two years of
antitrust investigations and to avoid potentially lengthy
litigation with further burdens on its employees and business.  
Also, the Supervisory Board who has been closely monitoring these
developments, fully supports this decision on the grounds that it
is in the best interest of the entire company, its shareholders
and all its employees and it allows to refocus full attention and
resources on its businesses.

With regard to the civil proceedings in North America, further
progress has been made.  The Company confirmed today that
settlements have been reached with all plaintiffs in Canada over
the past two weeks.  After reaching additional agreements in the
past weeks, SGL CARBON has now also settled a significant number
of outstanding claims in the USA.

With regard to the remaining open cases in the USA with the class
action and a group of plaintiffs, the U.S. subsidiary SGL CARBON
Corporation filed a voluntary petition under Chapter 11 on
December 16, 1998, in order to protect itself against
unreasonable demands.  On April 23, 1999, the judge responsible
for the Chapter 11 proceedings denied a motion to dismiss the
case.  Following this development SGL CARBON is still committed
to pursuing an expeditious and amicable resolution to these
pending cases.

With all these developments and since net present value
calculations cannot be considered in the formation of reserves
according to German accounting principles, SGL CARBON decided to
review the existing reserve of DM 410 million taken approximately
a year ago.  This became necessary mainly due to the insufficient
reserve for the DoJ fine, but also because of the recent
agreement with the Canadian plaintiffs and an updated assessment
of all remaining risks including those outside the USA.  As a
result, the overall reserve will be increased by DM 125 million
and booked in the second quarter of 1999.

With these agreements SGL CARBON has put behind it major parts of
the antitrust case and is committed to conclude the remaining
parts as soon as possible.


SUN HEALTHCARE: Klayman Firm Files Complaint in New Mexico
----------------------------------------------------------
The law firms of Lawrence L. Klayman, P.A. and Shepherd & Geller,
LLC today announced that a class action  has been filed in
Federal Court in New Mexico on behalf of all purchasers of Sun
Healthcare Group common stock (NYSE:SHG) during the period June
2, 1998 through February 1, 1999, inclusive.

The complaint charges that Sun Healthcare Group and certain of
its officers and directors violated the federal securities laws
by issuing false and misleading statements to the investing
public regarding the impact that changes in the Medicare
reimbursement system would have on the Company. When the truth
finally was revealed, the price of the stock collapsed.  

Contacts: Scott R. Shepherd
          SHEPHERD & GELLER, LLC
          Toll Free: 1-877-891-9880
          E-mail: sshepherd@classactioncounsel.com

          Paul J. Geller
          SHEPHERD & GELLER, LLC
          Toll Free: 1-888-262-3131
          E-mail: pgeller@classactioncounsel.com

          Lawrence L. Klayman
          LAWRENCE L. KLAYMAN, P.A.
          Toll Free: 1-888-997-9956
          E-mail: LLKSEC@aol.com


TRAK AUTO: Settles Employee Claims for $4.5 Mil Before Insurance
----------------------------------------------------------------
In January 1998, TRAK AUTO CORP. was named as a defendant in two
class action lawsuits (Amezcua v. Trak Auto Corporation, Superior
Court of the State of California, Action No. BC183900 and Tett,
v. Trak Auto Corporation, Superior Court of the State of
California, Action No. BC186931) involving former California
employees of the Company who alleged that the Company engaged in
improper wage-and-hour practices. The suits claimed that former
salaried employees should have been paid overtime.

The Company has entered into a settlement agreement pursuant to
which the Company's maximum exposure to members of the classes in
both class action lawsuits was $4.5 million, and that money has
been paid into an escrow account for payments to class members of
these lawsuits.

Trak anticipates recovering approximately $3.8 million of these
amounts from its insurance carriers,


VIVUS, INC.: Settles Shareholder Lawsuits for $6 Million
--------------------------------------------------------
VIVUS, Inc. (Nasdaq:VVUS) announced yesterday that it has reached
a settlement of the shareholder class action lawsuits pending in
the United States District Court for Northern District of
California and the Superior Court of the State of California for
San Mateo County. The aggregate settlement amount is $6 million.  
The settlement will be funded by insurance proceeds of $5.4
million and by the Company contributing 120,000 shares of VIVUS
Common Stock to the settlement fund.  The settlement is subject
to approval by the Court.


                          *********

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.

This material is copyrighted and any commercial use, resale or
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contained herein is obtained from sources believed to be
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