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/raid1/www/Hosts/bankrupt/CAR_Public/010620.mbx C L A S S A C T I O N R E P O R T E R Wednesday, June 20 2001, Vol. 3, No. 120 Headlines AUDIBLE INC.: Alleged Underwriter's Methods Lead To Securities Suits CENDANT CORPORATION: Faces Suits Due To Accounting Irregularities CHRONIMED INC.: Bernstein Liebhard Files Securities Suit In Minnesota CHUBU ELECTRIC: Nagoya Air Pollution Victims Drop Suit, Take Y1.5B DAIMLERCHRYSLER: Delaware District Court Urged Not To Dismiss Lawsuit DTM CORPORATION: Extends Tender Offer To Settle Antitrust Lawsuit ECI TELECOM: Schiffrin Barroway Files Securities Suit In E.D. VA GEORGIA POWER: Former Equal Opportunity Dtr. Backs Racial Bias Suit INTERVOICE-BRITE: Dreier Baritz Files Securities Suit In W.D. WA MONROE CITY: Disabled Woman Sues City For 'Parking Discrimination' NAB ASSET: Faces Several Suits For Breach Of Contract, Fiduciary Duty OXYCONTIN LITIGATION: Drugmakers, Two Doctors Face Suit In Virginia PARKER DRILLING: Believes Sub's In Texas Suit Have Ample Defense PFIZER INC.: Suits Filed Against Partner Won't Have Adverse Effect PFIZER INC.: Says Half Of Complaints Related To Trovan Drug Resolved RITE AID: Judge Dalzell Says $200 Million Settlement Has Great Merit SEAVIEW VIDEO: Marc Henzel Commences Securities Suit In M.D. Florida SLAVE REPARATIONS: Lawyers Group To File Lawsuit Early Next Year SYLMARK INC.: Sued For Illegally Sharing Confidential Customer Info WYNDHAM INTERNATIONAL: Decision On Motion To Dismiss CA Suit Pending * Ontario's College of Physicians And Surgeons Cancels Public Hearing ********* AUDIBLE INC.: Alleged Underwriter's Methods Lead To Securities Suits -------------------------------------------------------------------- Audible, Inc. (Nasdaq: ADBL) responded Monday to two securities class action lawsuits, which name certain underwriters of its July 1999 initial public offering, the Company and its current or former officers and directors. The lawsuits appear to arise out of alleged improper practices by its underwriters and were filed in the United States District Court for the Southern District of New York. The Company believes that the lawsuits against it have no merit whatsoever and, while the outcome of any litigation is inherently uncertain, the Company does not believe that these lawsuits should have a material adverse effect on its business. Audible intends to vigorously defend these lawsuits. Audible's management team is currently aware of approximately 40 other public companies that have been sued in nearly identical lawsuits. The complaints focus on alleged internal practices by certain investment banks in connection with initial public offerings. It appears that the companies, officers and directors are being sued because these companies had initial public offerings that were underwritten by these investment banks. The Company expects the two complaints to be consolidated into one case. Plaintiffs claim that defendants distributed a prospectus to investors and filed a registration statement with the Securities and Exchange Commission that contained material misstatements and omissions. They allege that the prospectus and registration statement should have disclosed that the underwriters had allegedly solicited and received excessive and undisclosed commissions from certain investors in exchange for allocations of stock in Audible's initial public offering, and that the underwriters allegedly obtained agreements from certain investors to purchase stock in the aftermarket in exchange for allocations in the initial public offering. "Each and every element of these claims against Audible and its directors is utterly preposterous," stated Donald Katz, founder and chairman of Audible, Inc. "The assertion of plaintiffs' lawyers that Audible had the ability to monitor the manner in which these well-known underwriting firms sold Audible's securities is patently ridiculous, and we are convinced that no one associated with Audible acted improperly in any way," Katz said. "The company will defend itself to the full limit of the law and seek any available redress against these baseless and frivolous claims," he said. CENDANT CORPORATION: Faces Suits Due To Accounting Irregularities ----------------------------------------------------------------- Cendant Corporation recently informed the Securities and Exchange Commission that aside from facing a stockholder class action litigation, the Company is also involved in suits asserting claims associated with the accounting irregularities discovered in former business units. "Cendant does not believe that it is feasible to predict or determine the final outcome or resolution of these unresolved proceedings. However, Cendant does not believe that the impact of such unresolved proceedings should result in a material liability to the Company in relation to its consolidated financial position or liquidity," the Company said in a latest regulatory filing with the Commission. CHRONIMED INC.: Bernstein Liebhard Files Securities Suit In Minnesota --------------------------------------------------------------------- Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf all persons who acquired Chronimed, Inc. (NASDAQ: CHMD) securities between October 27, 1999 and June 13, 2001. The case is pending in the United States District Court for the District of Minnesota. Named as defendants in the complaint are Chronimed and the following executive officers of Chronimed: Maurice R. Taylor, II, Henry F. Blissenbach and Gregory H. Keane. The complaint charges defendants with violations of sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants issued to the investing public false and misleading financial statements and press releases concerning the Company's publicly reported earnings, net income, and liabilities. Moreover, the Company failed to disclose material information necessary to make its prior statements not misleading. For additional information, contact: Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or by e-mail at CHMD@bernlieb.com. CHUBU ELECTRIC: Nagoya Air Pollution Victims Drop Suit, Take Y1.5B ------------------------------------------------------------------ Settlement plaintiffs in Nagoya, Japan, whose diseases caused by air pollution have been proven in the trial court, are expected to withdraw their appeal after accepting a 1.52 billion yen out-of-court settlement offered by the 10 defendants, including the Chubu Electric Power Co., according to a recent account in the Daily Yomiuri. The 291 plaintiffs, who suffered from diseases caused by air pollution, such as asthma triggered by compound pollutants from automobiles and factory emissions, or who were surviving relatives of deceased victims, had appealed an earlier court-awarded ruling of 290 million yen by the Nagoya District Court, asserting this amount was small compared with those awarded in similar pollution lawsuits. The defendant energy companies had also contested the award. The plaintiffs and defendants had been negotiating on the amount of compensation, an increase in funds to improve the environment and future measures to be company-implemented to reduce air pollution. Still to be resolved is the plaintiffs' demand for apologies from the energy companies. It therefore appears, for now, that the earliest date settlement will be decided is during the court hearings scheduled for July 2nd. DAIMLERCHRYSLER: Delaware District Court Urged Not To Dismiss Lawsuit --------------------------------------------------------------------- Lawyers for the plaintiffs in an $8 billion lawsuit against DaimlerChrysler urged Monday a US district court to shoot down attempts by the German-US automative firm to dismiss the suit, the Financial Times reported. Legal teams representing Trancinda Corporation, that used to be the largest shareholder in Chrysler, and other class action plaintiffs reasserted their allegations that DaimlerChrysler and several senior executives defrauded shareholders by claiming falsely that the 1998 transaction was a merger of equals, the Financial Times said. They told the US district court in Delaware that defendants including Jurgen Schrempp, DaimlerChrysler chief executive, and Hilmar Kopper, chairman of the supervisory board, had engaged in "a takeover on the cheap" with a plan to dupe Chrysler executives and shareholders including Kirk Kerkorian, the veteran entrepreneur behind Trancinda. "The action was based partly on comments made by Mr. Schrempp in separate interviews last autumn with the Financial Times and Barron's Magazine, in which he suggested Chrysler was always likely to become a division in the enlarged group," the Times report said. DaimlerChrysler has dismissed the case as being without merit. DTM CORPORATION: Extends Tender Offer To Settle Antitrust Lawsuit ----------------------------------------------------------------- 3D Systems Corp. (Nasdaq: TDSC) and DTM Corporation (Nasdaq: DTMC) announced Tuesday that they have agreed to extend the expiration date of the tender offer for all the outstanding shares of common stock of DTM until midnight Eastern Daylight time on Tuesday, July 10, 2001. The tender offer had been scheduled to expire at midnight Eastern Daylight time, on Monday, June 18, 2001. 3D Systems and DTM agreed to extend the tender offer in part to pursue a possible settlement of the civil action filed by the Antitrust Division of the U.S. Department of Justice on June 6, 2001. 3D Systems and DTM are actively pursuing these discussions. "We are working with the Justice Department in an effort to reach a settlement that will enable us to move forward and complete the proposed merger with DTM," said Brian K. Service, 3D Systems' president and chief executive officer. John S. Murchison, III, DTM's president and chief executive officer, stated, "We remain committed to a transaction with 3D Systems and are continuing to support 3D Systems in its efforts to obtain the necessary approvals." ECI TELECOM: Schiffrin Barroway Files Securities Suit In E.D. VA ---------------------------------------------------------------- Schiffrin & Barroway, LLP filed a class action lawsuit in the United States District Court for the Eastern District of Virginia, Alexandria Division, on behalf of all purchasers of the common stock of ECI Telecom Ltd. (Nasdaq: ECIL) from May 2, 2000 through February 14, 2001, inclusive. The complaint charges ECI and certain of its officers and directors with issuing false and misleading statements concerning ECI's reported revenue for the first, second and third quarters of 2000. Specifically, the complaint alleges that on February 14, 2001, the Company announced that it expected to move $38 million in revenue from its 1999 financial statement to 2000, and $61 million from 2000 to 2001. For additional information, contact: Schiffrin & Barroway, LLP through Marc A. Topaz, Esq. or Stuart L. Berman, Esq. by Mail: Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 by Phone: 1-888-299-7706 (toll free) or 1-610-667-7706 or by E-mail: info@sbclasslaw.com GEORGIA POWER: Former Equal Opportunity Dtr. Backs Racial Bias Suit ------------------------------------------------------------------- John Holly, a 44 year-old African-American, at one time the equal opportunity director at Georgia Power Co., recently stated in an affidavit filed by lawyers for seven workers who have sued the utility and its parent Southern Co., alleging racial bias, that he left Georgia Power six years ago because the company did not offer opportunities to African-American employees. His four-page affidavit was filed in the U.S. District Court in support of the seven employees seeking class-action status to represent more than 2,000 African-American workers. In a recent report appearing in The Atlanta Journal and Constitution, Holly detailed in his affidavit some of the problems he observed during the course of this employment: "Some of the systematic problems that are alleged in this lawsuit are similar to the problems I observed" at the company. Holly had had been equal opportunity manager and assistant to the vice president of human resources at Georgia Power in 1993 and 1994, and was employed in an important equal opportunity capacity at Southern Co. before leaving the company in 1995. "One of the primary reasons I left Southern Company was the company's systematic failure to provide development opportunities and/or promotions to African-American employees as compared to similarly situated Caucasian employees," Holly said. Laura Gillig, spokeswoman for Georgia Power, stated it was the company's position that the allegations in the lawsuit do not merit class action status. Additionally, as part of their case, Georgia Power lawyers filed an affidavit from John Holly in which he said he oversaw development of affirmative action goals at the company in compliance with a 1994 Labor Department conciliation agreement. But Holly, in his latest affidavit, said he had recommended in 1994 that the company form a diversity action council, but this step was not taken until after the lawsuit was filed six years later. INTERVOICE-BRITE: Dreier Baritz Files Securities Suit In W.D. WA ---------------------------------------------------------------- Dreier Baritz & Federman filed a class action lawsuit in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of InterVoice-Brite, Inc. (Nasdaq: INTV) during the period from October 12, 1999 through June 6, 2000, inclusive. The Complaint charges InterVoice-Brite, Inc. and certain of its officers and directors with violations of the Securities Exchange Act of 1934. For further details, contact: William B. Federman by Mail: DREIER BARITZ & FEDERMAN, 120 N. Robinson, Suite 2720, Oklahoma City, OK 73102 by Phone: (405) 235-1560/FAX: (405) 239-2112 or by Email: wFederman@aol.com MONROE CITY: Disabled Woman Sues City For 'Parking Discrimination' ------------------------------------------------------------------ Helen Jones, who has multiple sclerosis, has filed a class action lawsuit against the city of Monroe, Michigan in federal court, according to a recent report by the Associated Press. She says the city parking policies discriminate against disabled persons. The closest parking space Ms. Jones' office is nearly 600 feet away. "I want to be able to continue to park and be able to work in a place that is accessible to me, like the other people I work with," she told The Monroe Evening News. Since Attorney General Jennifer Granholme ruled two years ago that cars with handicapped placards must obey posted parking time limits, Ms. Jones has received two parking violations each day and amassed nearly $10,000 in fines. Downtown businesswoman and activist Mary Gail Beneateau testified that downtown parking spaces are at a premium because businesses need them for customers. NAB ASSET: Faces Several Suits For Breach Of Contract, Fiduciary Duty --------------------------------------------------------------------- NAB Asset Corporation has been named as a defendant in the following related lawsuits, all filed in or after December 2000 in the Superior Court for Los Angeles County, California: (i) Robert Schultz et al v. Stanwich Financial Services Corp., et al; (ii) Jerry Walls, et al v. Stanwich Financial Services Corp., et al; (iii) Martha Torbitt v. Merrill Lynch Settlement Services, Inc. et al; (iv) Robert A. Havlik, et al v. Morgan Stanley Dean Witter & Co., et al; and (v) Lawrence M. Gomes, et al v. Merrill Lynch Pierce Fenner & Smith Incorporated, et al. The plaintiffs in each of these suits, other than the Schultz suit, are structured settlement payees to whom Stanwich Financial is indebted. There are numerous defendants in these suits, including Stanwich Financial, Charles E. Bradley, Sr., Charles E. Bradley, Jr. and several major financial institutions, in addition to us. All of these suits arise out of Stanwich Financial's default on certain payments to the structured settlement payees. Although the claims made and the relief sought vary somewhat from suit to suit, in general: -- the suits allege breach of contract, breach of fiduciary duty, negligence, conversion, fraudulent conveyance, fraud and violations of certain statutes, and -- the relief sought includes compensatory and punitive damages, statutory penalties and attorneys' fees and costs. The plaintiffs in the Schultz suit, who are former owners of a predecessor of the Stanwich Financial business and current operators of a structured settlement business, also claim that their business and reputation has been damaged by Stanwich Financial's default in payments to the payees and seek damages for unfair competition. The Walls and Torbitt suits claim class action status and the plaintiffs in the Schultz suit purport to sue on behalf of the payees. The plaintiffs' theory of liability against the Company in these suits is based on the allegations that the Company are the alter ego of Stanwich Financial and Mr. Bradley Sr., who is the sole shareholder and director of Stanwich Financial, as well as the chairman of the Company's board of directors, and that the Company participated in the alleged actions and omissions. OXYCONTIN LITIGATION: Drugmakers, Two Doctors Face Suit In Virginia ------------------------------------------------------------------- A multibillion-dollar lawsuit has been filed against the makers of the painkiller OxyContin and two doctors, claiming they failed to warn patients that the drug was dangerously addictive, a report by Bridge Information Systems said Monday. The drug, intended for use by terminal cancer patients and chronic pain sufferers, has been linked to at least 120 overdose deaths nationwide, the report said. The suit was filed Friday in Lee County Circuit Court in Virginia by seven people who are former addicts or relatives of addicts. The suit, which seeks class action status for other victims, alleges the drug's makers aggressively marketed the painkiller while downplaying its risks. Named as defendants are Purdue Frederick Co., Purdue Pharma L.P. and Purdue Pharma Inc., all based in Stamford, Conn., and Abbott Laboratories Inc. and Abbott Laboratories, both based in Chicago. Also included in the suit are doctors Richard Norton and Shireen Brohi. Norton is a former emergency room doctor now serving a federal prison sentence in South Carolina for embezzling from a hospital, the report said. The plaintiffs are seeking more than $5.2 billion in compensatory damages from Purdue. PARKER DRILLING: Believes Sub's In Texas Suit Have Ample Defense ---------------------------------------------------------------- Two subsidiaries of Parker Drilling Company are named defendants in the lawsuit, Verdin v. R & B Falcon Drilling USA, Inc., et al., Civil Action No. G-00-488, currently pending in the U.S. District Court for the Southern District of Texas, Galveston Division. The plaintiff is a former employee of a drilling contractor engaged in offshore drilling operations in the Gulf of Mexico. The defendants are various drilling contractors, including the subsidiaries, who conduct drilling operations in the Gulf of Mexico. Plaintiff alleges that the defendants have violated federal and state antitrust laws by agreeing with each other to depress wages and benefits paid to employees working for the defendants. Based on the information obtained to date, certain of the defendants, known as the "Big 8", were alleged to be the principal parties engaged in actions for this purpose. The Subsidiaries are not a part of the Big 8. Plaintiff is seeking to bring this case as a "class action" on behalf of himself and a proposed class of other similarly situated employees of the defendants that have allegedly suffered similar damages from the actions of defendants. At the present time, the court has not ruled on the issue of whether the plaintiff has established the requirements for bringing this case as a "class action" on behalf of other similarly situated employees. At least six of the defendants have entered into settlement agreements pursuant to which they have agreed to pay settlement amounts although these settlements are a small fraction of the amount claimed by plaintiff. Other defendants may be negotiating settlement agreements with the plaintiffs. The Subsidiaries and certain other defendants have denied the plaintiff's claims. Based on consultation with legal counsel, management believes the subsidiaries have sufficient defenses to prevail in this case. PFIZER INC.: Suits Filed Against Partner Won't Have Adverse Effect ------------------------------------------------------------------ Drugmaker Pfizer, Inc. disclosed in a recent regulatory filing with the Securities and Exchange Commission that since Rezulin's withdrawal from the market, a number of suits and claims against merger partner Warner- Lambert (and in some instances against the Company) have been filed. As of April 13, 2001, the following suits were pending in various courts against Warner-Lambert: (i) 49 Federal and 18 state class action suits have been filed seeking medical monitoring; (ii) five Federal and five state class actions seek damages or restitution; (iii) individual Federal and state suits have been filed seeking damages or restitution for personal injuries on behalf of about 2,800 Rezulin patients; and (iv) claims on behalf of 565 Rezulin patients have been received. The cases filed in or removed to Federal courts have been consolidated for certain pretrial purposes in the U.S. District Court for the Southern District of New York by order of the Judicial Panel on Multi- District Litigation, and the class actions seeking medical monitoring have been consolidated under a single class complaint. Most of these cases are in early stages of discovery. The Company is defending these actions and, considering its insurance and reserves, is of the opinion that these actions should not have a material adverse effect on the financial position or results of the Company. PFIZER INC.: Says Half Of Complaints Related To Trovan Drug Resolved -------------------------------------------------------------------- Pfizer Inc. recently informed the Securities and Exchange Commission that it has received approximately 40 complaints and claims since June 1999 related to Trovan, alleging liver injuries due to ingestion of the drug. Approximately half of these matters have been resolved, the Company said in a recent regulatory filing with the Commission. Trovan is a broad-spectrum antibiotic, which have been reported recently to cause severe or adverse liver reactions. The cases are in early stages of discovery. The Company is defending these actions and, considering its insurance and reserves, is of the opinion that these actions should not have a material adverse effect on the financial position or results of the Company. RITE AID: Judge Dalzell Says $200 Million Settlement Has Great Merit -------------------------------------------------------------------- U.S. District Judge Stewart Dalzell of the Eastern District of Pennsylvania has issued an opinion on the proposed $200.0 million settlement of a shareholder class action lawsuit against Rite Aid. According to Judge Dalzell, the economic aspect of the settlement has "great merit" and deserves "unhesitating approval," however, he ruled that the provision wrongly barred certain legal claims that former chairman Martin L. Grass, former CFO Frank A. Bergonzi, and former president Timothy J. Noonan might make against the settling defendants and other parties. Reporters at F&D Reports recall that Messrs. Grass, Bergonzi and Noonan and former auditor KPMG were challenging the settlement on the basis that it deprived them of their ability to seek redress from the Company. The settlement also includes an agreement by Rite Aid to help shareholders pursue their claims in an ongoing class action lawsuit against Messrs. Grass, Noonan, Bergonzi and KPMG. This suit remains pending in Judge Dalzell's court. Rite Aid has until June 25 to submit a revised plan, F&D's review of the Court's docket shows, and any objections to the package must be filed by July 9. SEAVIEW VIDEO: Marc Henzel Commences Securities Suit In M.D. Florida -------------------------------------------------------------------- The Law Offices of Marc S. Henzel filed a class action lawsuit in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of purchasers of SeaView Video Technology, Inc. (OTC Bulletin Board: SEVU.OB) during the period between March 30, 2000 and March 19, 2001, inclusive. The complaint alleges that defendants SeaView Video Technology, Inc. and Richard McBride, President and Chief Executive Officer of SeaView during the Class Period, violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. According to the suit, the Company committed violations by issuing a series of material misrepresentations to the market concerning, inter alia, SeaView's expected revenue for 2000, its reported revenue for the second and third quarter of 2000, the demand for its products, and its ability to manufacture sufficient product to meet the purported demand. Specifically, the class alleges, defendants had led the market to believe SeaView would have gross sales of $46 million in 2000, yet gross sales ended up being slightly over $1 million. In addition, on March 19, 2001, the Company announced that it had determined that there were inaccuracies in its financial statements for the quarters ended June 30, 2000 and September 30, 2000 with regard to recognition of revenue as related to certain purchase orders. The restated revenue for those two quarters reduced revenue from $4 million collectively to approximately $550,000. For more details, contact: Marc S. Henzel, 210 West Washington Square, Third Floor Philadelphia, PA 19106, by telephone at (888) 643-6735 or (215) 625-9999, by facsimile at (215) 440-9475, by e-mail at Mhenzel182@aol.com or visit the firm's website at http://members.aol.com/mhenzel182. SLAVE REPARATIONS: Lawyers Group To File Lawsuit Early Next Year ---------------------------------------------------------------- The idea of demanding reparations for the wrongs committed by slavery has overtaken the African-American community's middle class; it is, as has been said from time to time in history, an idea whose time has come, according to a recent report in the Irish Times (Letter From America). A Harvard law professor, Charles Ogletree, has put together a coalition of lawyers to commence a class action early next year. He said, "It's important because a lot of nations worldwide are looking back on a lot of harm that has been done, and they have decided that it's time to do something about that harm." The star of the antiapartheid movement, Randall Robinson, who has written a bestseller, "The Debt: What America Owes to Blacks," which is greatly contributing to the debate. The book says that large amounts of reparations are required on the grounds that "no race, no ethnic or religious group, has suffered so much over so long a span as blacks, and do still, at the hands of those who benefited, with the connivance of the United States government, from slavery and the century of legalised American racial hostility that followed it." In Congress, Representative John Conyers from Michigan has offered legislation every year since 1989 seeking establishment of a commission to consider reparations. Today, he has the support of 48 House members. Further, the concept of reparations has moved away from the idea of offering an individual financial remuneration. "People are thinking of more permanent things that can be done: education, health care, job opportunities, housing -- things that are less tangible, but in the long run might really help make us whole." Conyers said. The subject has assumed an international dimension. A number of African nations want a special statement made at a UN conference on racism to be held in South Africa in September of this year -- something to the effect "that the slave trade is a unique tragedy in the story of humanity, particularly against Africans." The U.S. government has threatened to withdraw aid to African countries if the conference decides to debate the issue of reparations. SYLMARK INC.: Sued For Illegally Sharing Confidential Customer Info ------------------------------------------------------------------- Florida consumers Judith Jeselskis and Marcia Walter said no. The women declined high-pressure sales offers over the telephone. Both later found mystery charges on their bank statements. In Jeselskis' case, the unwanted charges left her penniless for weeks. The women filed three class action lawsuits Monday naming Sylmark, Inc. (Abslide), GoodTimes Entertainment, Inc. (Richard Simmons), Brylane, Inc., (Lane Bryant Catalog), national telemarketers MemberWorks, Inc. and Synapse Group, Inc. Jeselskis and Walter ordered items over the telephone. They were later billed for unwanted products and services after specifically refusing the other offers. Judith Jeselskis is a widow living in Sebring, Florida on a very modest income. She ordered a Richard Simmons product (GoodTimes Entertainment) by telephone in January 2001. Jeselskis received a high-pressure sales pitch for other products and services. She declined the other offers. Jeselskis later discovered a mystery charge on her Huntington Bank debit card statement. It was for $84.00 from MWI*Essentials. MWI*Essentials is a membership program marketed by MemberWorks -- a national telemarketer based in Stamford, Connecticut. Jeselskis' lawsuit claims GoodTimes Entertainment entered into an illegal marketing partnership with MemberWorks. The lawsuit charges GoodTimes Entertainment shared customers' names, account numbers and other private financial data with MemberWorks to bill Jeselskis' account for a membership without her knowledge or consent. Jeselskis also filed suit against Brylane (Lane Bryant Catalog) and the Synapse Group. She claims a Lane Bryant Catalog clothing purchase resulted in charges for magazine subscriptions of $55.00 and $12.00 on her Huntington account. The magazine subscriptions were from Synapse Group -- another Stamford, Connecticut telemarketing firm. Jeselskis' lawsuits claims Brylane entered into an illegal marketing partnership with Synapse Group. Brylane shared private financial information with Synapse Group. It claims Synapse Group charged Jeselskis' debit card for magazine subscriptions without her knowledge or consent. These unwanted charges left Jeselskis' account overdrawn. She was without funds for two weeks. Jeselskis was unable to pay for basic living expenses during that time. Lead Attorney Christa Collins said, "Judy Jeselskis was wiped out. These companies reached into her bank accounts without permission. She couldn't put food on the table. It's wrong." Meanwhile, Marcia Walter ordered an Abslide exercise devise from Sylmark of Los Angeles, California after her teenage son saw a television infomercial in August 2000. Walter was also hit with a barrage of high-pressure sales pitches for additional products and services including a health club membership. She declined the offers and only agreed to pay $49.90 for the Abslide. Walter got a surprise when her credit card statement arrived from Citibank in September. A $95.88 charge from MWI*ValueMax. Walter tracked the charge to MembersWorks. There was another mystery charge on Walter's October statement. An additional $47.80 from Sylmark (Abslide). Walter had no idea what this charge was for. A few days later she received a box of pills from Sylmark and realized the $49.90 must have been related to this delivery. She returned the box unopened. Walter's lawsuit claims Sylmark illegally shared confidential financial information with MemberWorks. The suit charges Sylmark entered into marketing partnerships with MemberWorks to provide customers' names, account numbers and other private financial data. The lawsuit claims that partnership allows MemberWorks to market membership programs to Sylmark customers. "Abslide is designed to work your abs," said Christa Collins. " But your wallet gets the real workout." "These deceptive and unfair business practices are taking money from the accounts of unsuspecting consumers in Florida and all over the country," Collins said. "Every consumer in America needs to beware. Always check your bank and credit card statements carefully. Challenge any charge you didn't make," she said. The lawsuits seek to represent all people who were billed without their knowledge and consent by these companies. The lawsuits were filed in Pinellas and Highlands County Circuit Courts and allege deceptive and unfair trade practices. For more details, contact: James, Hoyer, Newcomer & Smiljanich, P.A. by Mail: Tampa and St. Petersburg, Florida by Phone: 800-651-2502 or by Email: ccollins@jameshoyer.com WYNDHAM INTERNATIONAL: Decision On Motion To Dismiss CA Suit Pending -------------------------------------------------------------------- On May 7, 1999, Doris Johnson and Charles Dougherty filed a lawsuit in the Northern District of California against Patriot, Old Wyndham, their respective operating partnerships and Paine Webber Group, Inc. This action, Johnson v. Patriot American Hospitality, Inc., et al., No. C-99-2153, was commenced on behalf of all former holders of Bay Meadows stock during a class period from June 2, 1997 to the date of filing. The action asserts securities fraud claims and alleges that the purported class members were wrongfully induced to tender their shares as part of the Patriot/Bay Meadows merger based on a fraudulent prospectus. The action further alleges that defendants continued to defraud shareholders about their intentions to acquire numerous hotels and saddle Patriot and Old Wyndham with massive debt during the class period. Three other actions against the same defendants subsequently were filed in the Northern District of California: (i) Ansell v. Patriot American Hospitality, Inc., et al., No. C- 99-2239 (filed May 14, 1999), (ii) Sola v. Paine Webber Group, Inc., et al., No. C-99-2770 (filed June 11, 1999), and (iii) Gunderson v. Patriot American Hospitality, Inc., et al., No. C-99-3040 (filed June 23, 1999). Another action with substantially identical allegations, Susnow v. Patriot American Hospitality, Inc., et al., No. 3-99-CV1354-T (filed June 15,1999), also subsequently was filed in the Northern District of Texas. By order of the Judicial Panel on Multi-district Litigation, these actions along with other actions have been consolidated in the Northern District of California for consolidated pretrial purposes. On or about October 13, 2000, the defendants moved to dismiss the actions. The Court heard legal arguments on motions to dismiss the actions on December 14, 2000 but has not yet rendered a decision. * Ontario's College of Physicians And Surgeons Cancels Public Hearing --------------------------------------------------------------------- The decision to air concerns about the medical performance of Dr. Errol Wai-Ping, gynecologist/obstetrician in Whitby, Ontario, at a public hearing, had been made by the watchdog agency, the College of Physicians and Surgeons. New documents show, however, that the public hearing scheduled for a recent date for Dr. Wai-Ping, who faces a class-action lawsuit by hundreds of former patients, was secretly cancelled; the doctor, instead, will attend a closed door hearing for an assessment of his medical skills. A recent account of this story, appearing in the Toronto Star, said that former patient Lyn Logan, 42 years old, was told that her complaint warranted a full hearing at which she, the doctor and other witnesses would be called to testify. The College declined to answer questions on why it has cancelled the scheduled hearing before the discipline committee. However, its actions are now being investigated by the Health Professions Review Board after Logan appealed about the cancelled open hearing. The Review Board, in a recent letter, is asking Dr. Wai-ping to provide information "as to how a referral to the discipline committee became a referral to the quality assurance committee." More than 290 women are now seeking to join a class action suit, which still has to be certified by a judge and the allegations proven in court. Among the many allegations are some of the following: botched hysterectomies, deliveries and other gynecological procedures; missed diagnoses of subsequently discovered cancers and life-threatening infections. The allegations also involve the deaths of three babies and a 52-year-old Pickering woman. A Toronto Star investigation has questioned Dr. Wai-Ping's medical competence and the secrecy surrounding the College's complaints system. In documents obtained by The Star, it was learned that Logan was notified in a September 29, 1999 letter, after the 1998 filing of her complaint with the College, that the complaints committee was sending her case to a disciplinary hearing. Logan was informed the hearing would "determine whether the physician has committed an act of professional misconduct or is incompetent" and that a College lawyer would give testimony on her behalf." Later that year, she reached an out-of-court settlement for $250,000 in a malpractice civil suit against Dr. Wai-Ping. Approximately a year after being told that a disciplinary hearing would be held, Logan received a phone call from College lawyer Shaun Nakatsuru informing her that the hearing dates would be June 12 to 15, 2001. Two months ago Logan received another phone call telling her, without explanation, that the hearing had been cancelled. She learned that her complaint was sent instead to the quality assurance committee, where the goal is to remediate with, rather than punish, doctors. College lawyer Donald Posluns said the College's executive committee, comprised of four doctors and two citizens has the authority to alter a complaints committee referral under the Regulated Health Professions Act. Posluns said as "more information comes in, it gets more complex, sometimes different decisions are made at different times." The College has received since 1992 at least a dozen complaints against Dr. Wai-Ping, including Logans'. They were either dismissed, resulted in a caution to Dr. Wai-Ping or they have yet to be dealt with. Dr. Wai-Ping was referred to the college assurance committee in still another case and is now undergoing an assessment of his medical skills and knowledge. A report is expected to go from this committee to the College soon. Dr. Wai Ping is on voluntary leave from Ajax-Pickering Hospital; however, he continues to see patients in his office. ********* 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., Trenton, New Jersey, and Beard Group, Inc., Washington, D.C. Enid Sterling, Larri-Nil Veloso and Lyndsey Resnick, Editors. Copyright 2001. 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. 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