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/raid1/www/Hosts/bankrupt/CAR_Public/010626.mbx C L A S S A C T I O N R E P O R T E R Tuesday, June 26 2001, Vol. 3, No. 124 Headlines AREMISSOFT CORPORATION: Marc Henzel Joins Fray, Files Lawsuit In NJ AUDIBLE INC.: Cauley Geller Files Suit Over IPO; Underwriters Included AVENUE A: Cauley Geller Sues In S.D. NY Over Securities Violations CHRONIMED INC.: Milberg Weiss Files Securities Suit in Minnesota COMMERCE ONE: Cauley Geller Commences Securities Suit In S.D. NY DETROIT CITY: International School Demands Medical Monitoring For Kids DURATEK INC.: Berman DeValerio Takes Action In MD For Securities Fraud ECI TELECOM: Abbey Gardy Begins Securities Suit In E.D. Virginia EL SITIO: Milberg Weiss Files Suit In NY For Securities Violations FORD MOTOR: Faces Suit For Favoring Women, Minorities For Promotions HOBBS, NEW MEXICO: Police Department Settles Racial Bias Lawsuit INDIANA: State Supreme Court Orders Expanded Medicare To Disabled INFOSPACE INC.: Schiffrin Barroway Files Securities Suit In Washington IPRINT TECHNOLOGIES: Milberg Weiss Files Suit For Flawed Prospectus JOURNAL COMMUNICATIONS: Wisconsin Judge Revives Stock Sales Lawsuit NETWORK COMMERCE: Wolf Haldenstein Files Securities Suit In W.D. WA SAN FRANCISCO: Settles Suit Filed By Current, Former Disabled Students SARA LEE: Pleads Guilty To Charges Of Distributing Adulterated Meat SELECTICA INC.: Stull Stull Commences Securities Suit In S.D. NY STARNET COMMUNICATIONS: Settles DE Suit For 1.5M Shares, $100,000 Cash SUMMIT OF THE AMERICAS: Quebec City Residents Sue Event Organizers TELAXIS COMMUNICATIONS: Cauley Geller Files Securities Suit In S.D. NY TNUVA DAIRY: Israeli Attorney General Asks SC To Group Suits As Class TOBACCO LITIGATION: Ohio Suit Seeks Free Annual Test On Smokers TYSON FOODS: Schiffren & Barroway Files Action In DE Securities Suit UNDERWRITERS LITIGATION: Milberg Weiss Begins Securities Suit In NY UNDERWRITERS LITIGATION: Milberg Weiss Sues Intersil In S.D. New York VITAMINS LITIGATION: Foreign Vitamin Makers Settle Antitrust Suits WEIRTON STEEL: Officials Sued For Insider Trading Manipulations ********* AREMISSOFT CORPORATION: Marc Henzel Joins Fray, Files Lawsuit In NJ ------------------------------------------------------------------- The Law Offices of Marc S. Henzel filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of all persons who purchased AremisSoft Corporation (Nasdaq: AREM) securities from December 17, 1999 through May 14, 2001, inclusive. The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more details, contact: Marc S. Henzel, Esq. of The Law Offices of 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. AUDIBLE INC.: Cauley Geller Files Suit Over IPO; Underwriters Included ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action recently in the United States District Court for the Southern District of New York on behalf of purchasers of Audible, Inc. (Nasdaq: ADBL) securities during the period between July 16, 1999 and December 6, 2000, inclusive. The complaint charges defendants Audible, Credit Suisse First Boston Corporation, Lehman Brothers, Inc., Morgan Stanley & Co., Incorporated, Andrew J. Huffman and Andrew P. Kaplan with violations of Sections 11, 12(a) (2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For additional information, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com AVENUE A: Cauley Geller Sues In S.D. NY Over Securities Violations ------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action last week in the United States District Court for the Southern District of New York on behalf of purchasers of Avenue A, Inc. (Nasdaq: AVEA) securities during the period between February 28, 2000 and December 6, 2000, inclusive. The complaint charges defendants Avenue A, Morgan Stanley & Co., Salomon Smith Barney, Inc., Brian P. McAndrews, Nicolas J. Hanauer and Robert M. Littauer with violations of Sections 11, 12(a) (2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For further details, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com CHRONIMED INC.: Milberg Weiss Files Securities Suit in Minnesota ---------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit last week on behalf of purchasers of the securities of Chronimed Inc. (NASDAQ: CHMDE) between October 27, 1999 and June 13,2001 inclusive. The action is pending in the United States District Court for the District of Minnesota, against defendants Chronimed, Maurice R. Taylor, II (Chief Executive Officer and Chairman of the Board of Directors -- during part of the Class Period), Henry F. Blissenbach (Chief Executive Officer and Chairman of the Board of Directors) and Gregory H. Keane (Chief Financial Officer and Vice President). The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 27, 1999 and June 13, 2001. Specifically, as alleged in the complaint, Chronimed issued press releases announcing quarterly and yearly financial results -- which were repeated in quarterly and yearly SEC filings. The publicly disseminated financial results were favorable, and included several quarters of supposedly record revenues. On June 14, 2001, Chronimed issued a press release announcing that it would be restating its financial results for fiscal 2000, and the first three quarters of fiscal 2001, due to accounting irregularities. According to the press release, StarScript, a subsidiary of Chronimed, had been overstating revenues, earnings and accounts receivables throughout the Class Period. Immediately following this announcement, the NASDAQ halted trading in Chronimed stock, which was then trading at $9.35 per share. When trading resumed, on June 22, 2001, Chronimed's stock price plummeted by 49% to close at $4.75. For more information, contact: Milberg Weiss Bershad Hynes & Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: Chronimedcase@milbergNY.com or visit the firm's Website: http://www.milberg.com COMMERCE ONE: Cauley Geller Commences Securities Suit In S.D. NY ---------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed late last week a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Commerce One, Inc. (Nasdaq: CMRC) securities during the period between July 1, 1999 and December 6, 2000, inclusive. The complaint charges defendants Commerce One, Credit Suisse First Boston Corporation, BancBoston Robertson Stephens, Mark B. Hoffman and Peter F. Pervere with violations of Sections 11, 12(a) (2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For additional information, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com DETROIT CITY: International School Demands Medical Monitoring For Kids ---------------------------------------------------------------------- Retonia Knott-Smith filed a lawsuit seeking to force the health monitoring of children who may have been exposed to asbestos-laced dust at Detroit's Burton International School, according to a recent Associated Press report. Knott-Smith asked Wayne County Circuit Judge Amy Hathaway to include in a class action all children who attended classes at Burton International School during the period of time when the demolition of a six-story apartment building, owned by the Detroit School District, was taking place on the site next to the 528-student magnet school. The Detroit School District closed Burton International School early for the summer after learning that asbestos dust was blowing onto the school site from the demolition site. The lawsuit asks the court to immediately order the city, the school district and Adamo Demolition Company of Florida to establish a medical monitoring system or to pay for immediate care, treatment and testing of all students who might have been affected by dust from the demolition. "Our biggest concern, given the age and location of the building [being razed], is that not only asbestos but other dangerous substances such as lead could have been in there," Elizabeth Thomson, Ms. Knott-Smith's lawyer, told the Detroit News. Bob Francis, executive director of the school's construction program, said moderate amounts of asbestos had been found, but there were no tests done to measure particles in the air. John Adamo, Jr. said his company was not to blame because school district officials chose the starting date for the demolition. DURATEK INC.: Berman DeValerio Takes Action In MD For Securities Fraud ---------------------------------------------------------------------- Shareholders filed late last week a federal class-action lawsuit charging Duratek, Inc. (Nasdaq: DRTK) with securities fraud, the law firm Berman DeValerio & Pease LLP said. Filed in the United States District Court for the District of Maryland, the case is captioned Michael J. Svezzese, Jr. v. Duratek, Inc., f/n/a GTS Duratek, Robert E. Prince, and Robert F. Shawver, Civil Action No. MJG 01- 1830. It seeks damages against the defendants for violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Duratek common stock between March 9, 2000 and March 13, 2001. For additional information, contact: N. Nancy Ghabai, Esq., Sara B. Davis, Esq. or Jeffrey C. Block, Esq. of Berman DeValerio & Pease, One Liberty Square, Boston, MA 02109. You may contact them by Phone: (800) 516-9926 or by E-mail: bdplaw@bermanesq.com ECI TELECOM: Abbey Gardy Begins Securities Suit In E.D. Virginia ---------------------------------------------------------------- Abbey Gardy, LLP filed a securities class action lawsuit on behalf of all persons who acquired ECI Telecom, Ltd. (Nasdaq: ECIL) common stock between May 2, 2000 and February 14, 2001. The case is pending in the Eastern District of Virginia. Named as defendants in the complaint are ECI Telecom, Doran Inbar, ECI Telecom's President, Avi Ben-Assayaq, ECI Telecom's Chief Financial Officer and Jonathan B. Kolber, ECI Telecom's Chairman. The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges, among other things, that the defendants issued materially false and misleading information that misrepresented the Company's financial condition and prospects. The complaint alleges that starting on May 7, 2000, defendants portrayed ECI Telecom as a growing Company that would continue to have increased demand for its products. On August 2, 2000 defendants announced ECI Telecom's second quarter results, again touting demand for the Company's products. Defendants announced the Company's third quarter results on November 7, 2000 and again emphasized the demand for the Company's products. Again, on February 14, 2001 the last day of the class period, defendants announced that the Company's previously announced financial performance restatement was expected to move $38 million in revenue from 1999's financial statement to 2000 and $61 million from 2000 to 2001. ECI Telecom also announced that it anticipated an operating loss for the first fiscal quarter of 2001. Defendants' misrepresentations caused the price of ECI Telecom common stock securities to be artificially inflated throughout the Class Period. For further details, contact: Abbey Gardy, LLP through Maria Ciccia or Nancy Kaboolian by Phone: 800-889-3701 or E-mail: mcriscitie@abbeygardy.com or nkaboolian@abbeygardy.com or visit the firm's Website: http://www.abbeygardy.com EL SITIO: Milberg Weiss Files Suit In NY For Securities Violations ------------------------------------------------------------------ Milberg Weiss Bershad Hynes & Lerach LLP recently filed a class action lawsuit on behalf of purchasers of the securities of El Sitio, Inc. (NASDAQ: LCTO) between December 9, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court, Southern District of New York against defendants El Sitio, Credit Suisse First Boston Corporation, Lehman Brothers, Inc., Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Salomon Smith Barney, Inc., BancBoston Robertson Stephens, Inc., Roberto Cibrian-Campoy, Roberto Vivo- Chaneton, Horacio Milberg and Alfredo Jimenez De Arechaga. The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about December 9, 1999, El Sitio commenced an initial public offering of 8,200,000 of its shares of common stock at an offering price of $16 per share. In connection therewith, El Sitio filed a registration statement, which incorporated a prospectus, with the SEC. For additional details, contact: Milberg Weiss Bershad Hynes & Lerach LLP, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: elsitiocase@milbergNY.com or visit the firm's Website: http://www.milberg.com FORD MOTOR: Faces Suit For Favoring Women, Minorities For Promotions -------------------------------------------------------------------- Two white managers for Ford Motor Company are suing the automaker, alleging they were passed over for promotions in favor of women and minorities, according to a recent Associated Press report. The lawsuit, filed in U.S. District Court in Detroit, asserts that Ford demanded that managers either meet quotas for hiring and promoting women and minorities or risk losing lucrative bonuses. Ford Credit Manager John Kovacs alleges he was repeatedly passed over for promotions. He claims that when he sent a letter through his attorney to Ford Chairman William Clay Ford Sr., complaining about this state of affairs, he was placed on paid suspension. Guy Bertram, a 49-year-old management employee, also says he was passed over for promotion several times because he is a white male. Ford already faces at least two other lawsuits, filed by current and former employees, alleging that they were denied promotions or were terminated because of their age or for being white men. David Murphy, Ford's vice president of human resources, responding to these assertions, said that there are no quotas per se; but a manager's success at hiring and promoting women and minorities is a factor in their overall performance evaluation. "Certainly diversity is one of the performance issues for managers," Murphy observed. "It's definitely an impact on their bonus." But, he added that there is no specific bonus tied to diversity hiring or promotion. Among the internal Ford documents included in the plaintiffs' legal brief is one purporting to be the minutes of a human resources group meeting during which diversity is discussed. A summary of the discussion says: "We are not making the targets and that the LL2 bonus is at risk. Action includes delaying the hiring, promotion and referral of white males unless there is a good business case to bring them in before yearend." Commenting on Ford's diversity goals and how they were to be met, David Murphy said that the automaker is attempting to increase the number of women and minorities in management positions by about one percent per year and takes issue with the charge they are being promoted or hired solely on gender or race. "It's ridiculous to think women and minorities are being promoted only by color of skin or gender. They're promoted on merit," he declared. HOBBS, NEW MEXICO: Police Department Settles Racial Bias Lawsuit ---------------------------------------------------------------- U.S. District Judge Martha Vasquez approved the settlement of a class action lawsuit that alleged the Hobbs, New Mexico Police Department had engaged in "rampant discrimination against minority residents," including, among other things, use of excessive force, unwarranted searches and the malicious filing of false charges against residents, according to a recent Associated Press report appearing in the Albuquerque Journal. The Hobbs Police Department has agreed to pay $605,000 in damages, including $262,500 to the seven class-action plaintiffs. The total also includes $240,000 for legal fees, with the rest going to reimburse costs incurred by the state chapter of the American Civil Liberties Union, which supported the suit. The settlement agreement, which is to take effect immediately, requires the police department to improve its procedures regarding the use of force, detentions, searches, seizures and arrests. Police officers will be required to receive at least 40 hours of training a year on proper arrest procedures. Further, the police department is to engage in an effort to hire more minority officers, and racially derogatory remarks and conduct are prohibited in the workplace. Additionally, the police department is required to maintain statistics on the conduct of individual officers and the race of residents contacted by police in incidents such as field contacts and detentions. Police Chief Tony Knott said in a telephone interview that his department was not guilty of any wrongdoing and that "the things we have agreed to are, for the most part, things that we have always done, and we are agreeing to continue to do them." Carl Mackey, a Hobbs black community activist, said the settlement means "closure to a lot of sleepless nights." Mackey said that he and his family had been subjected to unwarranted police harassment and arrests for years. His father, Rosslee Mackey, was one of the seven plaintiffs who filed the lawsuit in federal court in 1999. Greg Biehler, an Albuquerque attorney representing the city of Hobbs, characterized the agreement as a "good settlement" for the Hobbs community. Under the settlement, Clarence Chapman, chief of the University of California at Los Angeles police department, will serve as an independent mediator and monitor of the settlement for three years. Biehler said that since Hobbs residents tend to view the police department as the enemy, Chapman "will have the opportunity to bring the police department and community together." INDIANA: State Supreme Court Orders Expanded Medicare To Disabled ----------------------------------------------------------------- The Indiana Supreme Court declined to consider the state's appeal of a ruling by the Indiana Court of Appeals that says the state must provide Medicaid benefits to people with disabilities that can be improved with medical treatment, according to a recent Associated Press report. This decision comes after an eight-year legal battle that started in 1993, when a Greene County woman, Petricia Day, sued the state as lead plaintiff in a class action lawsuit; her particular complaint being the state's denial of Medicaid coverage for knee-replacement surgery. The decision is the sixth time a court has ruled against the state in this case. State officials explained that they had persisted in fighting the lawsuit because it would cost at least $60 million a year to comply with the rulings ordering expanded Medicaid coverage. State Medicaid Director Kathy Gifford said recently that the annual cost could be as high as $90 million. Nonetheless, there was rejoicing by the plaintiffs in the class action: Jacquelyn Bowie Suess, the attorney who has been handling the class action lawsuit for the Indiana Civil Liberties Union, told Bloomington's Herald-Times that the Court's action is "going to help a lot of people." The class action lawsuit had challenged Indiana's policy of denying Medicaid coverage to disabled people who, with medical treatment, could overcome their disabilities and return to work. An appeals court panel ruled that "those who suffer from a disabling condition that could be treated, but do not receive treatment because of an inability to pay for the treatment, are disabled for purposes of Medicaid eligibility." This was the decision the Supreme Court let stand. INFOSPACE INC.: Schiffrin Barroway Files Securities Suit In Washington ---------------------------------------------------------------------- Schiffrin & Barroway, LLP filed last week a class action lawsuit in the United States District Court for the Western District of Washington, on behalf of all purchasers of the common stock of InfoSpace, Inc. (Nasdaq: INSP) from January 26, 2000 through January 30, 2001, inclusive. The complaint charges InfoSpace and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition concerning InfoSpace's actual FY 1999 and FY 2000 financial performance and Defendants' expectations concerning InfoSpace's FY 2001 revenue and earnings. For further 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 IPRINT TECHNOLOGIES: Milberg Weiss Files Suit For Flawed Prospectus ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit last week on behalf of purchasers of the securities of iPrint Technologies, Inc. (NASDAQ:IPRT) between March 8, 2000 and December 6, 2000, inclusive. The action, captioned Stoshak v. iPrint, Inc. et al., 01 CV 5748, is pending in the United States District Court, Southern District of New York against defendants IPrint, Credit Suisse First Boston Corporation, FleetBoston Robertson Stephens, Royal P. Farros and James P. McCormick. The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about March 8, 2000, iPrint commenced an initial public offering of 4,500,000 of its shares of common stock at an offering price of $10 per share. In connection therewith, iPrint filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse and Robertson Stephens had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse and Robertson Stephens allocated to those investors material portions of the restricted number of iPrint shares issued in connection with the IPrint IPO; and (ii) Credit Suisse and Robertson Stephens had entered into agreements with customers whereby Credit Suisse and Robertson Stephens agreed to allocate iPrint shares to those customers in the iPrint IPO in exchange for which the customers agreed to purchase additional iPrint shares in the aftermarket at pre-determined prices. For additional information, contact: Milberg Weiss Bershad Hynes & Lerach LLP, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: valueamericacase@milbergny.com or visit the firm's Website: http://www.milberg.com JOURNAL COMMUNICATIONS: Wisconsin Judge Revives Stock Sales Lawsuit ------------------------------------------------------------------- Circuit Judge John Ullsvik of Jefferson County, Wisconsin, ruled that former employees of Perry Printing, whose parent company is Journal Communications, may proceed with their class action lawsuit against Journal Communications, according to a recent Associated Press report. The plaintiffs contend that they lost money because they were not allowed to sell their stock over a decade when Journal Communications sold it in 1995. Journal Communications, an employee-owned company, requires workers who leave to sell their stock immediately, unless they retire. Retirees are permitted to sell their stock back over a decade. However, the company had waived the immediate stock sale requirement when it sold Perry Printing, allowing former employees to sell their stock over five years. The plaintiffs argue that they should have been considered retirees after the sale and permitted to sell their stock over ten years. Initially, Judge Ullsvik dismissed most of the lawsuit, saying the sale did not make the employees retirees. However, in his recent ruling, the judge said the lawsuit could go forward to settle whether they should have been allowed to sell their stock over ten years. NETWORK COMMERCE: Wolf Haldenstein Files Securities Suit In W.D. WA ------------------------------------------------------------------- Wolf Haldenstein Adler Freeman & Herz LLP filed late last week a class action lawsuit in the United States District Court for the Western District of Washington on behalf of persons who purchased Network Commerce Inc. (Nasdaq: NWKC) common stock during the period between Sept. 28, 1999 and April 16, 2001. The complaint charges that Network Commerce and its Chairman and CEO, Dwayne M. Walker, violated Sections 11, 12(2), and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants issued a series of materially false and misleading statements that were contained in various press releases, public statements and SEC filings, including several prospectuses and registration statements, which had the effect of artificially inflating the price of Network Commerce stock during the Class Period. For further details, contact: Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory Nespole, Esq. George Peters, or Fred Taylor Isquith, Esq.), via e-mail at classmember@whafh.com or visit the firm's website at www.whafh.com SAN FRANCISCO: Settles Suit Filed By Current, Former Disabled Students ---------------------------------------------------------------------- San Francisco State University has settled a class action lawsuit brought in federal court by some 200 current and former disabled students, faculty and staff, according to a recent report in the Los Angeles Times. San Francisco State agreed to spend more than $5 million to make the campus more accessible, stating it would adhere to a schedule of improvements -- many of which already have been made -- to restrooms, entrances, elevators and signage throughout the 91-acre campus. In addition, it agreed to remove physical barriers, make other renovations and purchase equipment to make the university accessible to people with mobility and vision disabilities. The university did not concede liability or wrongdoing in the settlement, but maintained that its facilities and programs already were accessible to all. "The university has always felt that it was in compliance [with federal law] and it has been making changes to improve access to the campus for more than 20 years," said Jack McCowan, attorney who represented San Francisco State. "This [settlement] will change the lives of hundreds of people, now and in the future," said Larry Paradis, an attorney with Disability Rights Advocates, an Oakland-based nonprofit organization that represented the plaintiffs. "One of California's major academic institutions will finally be more accessible to people with disabilities," he said. Paradis also pointed out that many of the expenditures to improve accessibility to which the university points to as already in place for the disabled, have come about only since the lawsuit was filed in 1997. "We think this [settlement] is a model that we hope the whole [California State] system will look at and act on." SARA LEE: Pleads Guilty To Charges Of Distributing Adulterated Meat ------------------------------------------------------------------- Kenneth B. Moll & Associates, Ltd. commend the U. S. Attorney General for the Western District of Michigan, the U.S. Department of Agriculture's Office of Inspector General and the Food Safety Inspection Service in their efforts to hold Sara Lee Corporation and its Bil Mar unit criminally responsible for producing and distributing adulterated meat and poultry products. On June 22, 2001, at a hearing before U.S. Magistrate Joseph Scoville in the United States District Court for the Western District of Michigan, Sara Lee pleaded guilty to producing and distributing adulterated meat and poultry products. As part of the plea agreement, Sara Lee is required to pay a fine of $200,000; has agreed to over $1.2 million in a civil settlement; and will pay $3 million to fund food safety research at Michigan State University. On December 22, 1998, Sara Lee announced a recall of 35 million pounds of hotdogs and deli meats after the Centers for Disease Control and Prevention (CDC) linked 101 illnesses and 21 deaths in over 22 states to a strain Listeria monocytogenes found in packages of the Sara Lee meat products. This is the largest recall in United States history. Kenneth B. Moll & Associates, Ltd. began the fight to hold Sara Lee responsible for these deaths and injuries; to require Sara Lee to establish an end product testing protocol to prevent future outbreaks, and to fully inform the public of the potential hazards of eating these contaminated meat products when, on December 30, 1998, they filed a nationwide class action lawsuit on behalf of all persons who consumed hot dogs and other meat products manufactured by SARA LEE and BIL MAR with establishment numbers P261 for poultry and 6911 for non-poultry. According to the May 27, 1999 report from Paul S. Mead, M.D., M.P.H. of the Foodborne and Diarrheal Disease Branch of the Centers for Disease Control and Prevention, Sara Lee company records of routine environmental monitoring revealed that for four months between 67% and 92% of the samples tested from equipment and surfaces were positive for psychrophilic organisms. According to Dr. Mead's report, "studies in other meat processing facilities have found that with further testing 42% of cultures positive for psychrophilic will yield 1/8Listeria monocytogenes 3/8." Listeria monocytogenes is a potentially deadly bacterium. "Dr. Mead's findings and his report clearly show that Sara Lee's conduct willfully and wantonly disregarded the safety of its customers," said Kenneth Moll. "If Sara Lee had rectified the contamination in its plant and conducted a recall months earlier, dozens of lives could have been saved." After 2 years of litigation, on September 15, 2000, Judge Jennifer Duncan-Brice entered an order approving a settlement agreement reached in the nationwide class action. Over 4,000 claims have been submitted by claimants seeking compensation of up to $50,000 plus medical expenses for claimants who were diagnosed with Listeria. In addition, Sara Lee will donate $25,000 to the Food Research Institute, University of Wisconsin-Madison, to be used for research on the prevention of Listeria in food products. In addition to the thousands of claims submitted in the settlement proceedings, over 70 individuals opted out of the settlement to bring individual claims against Sara Lee. SELECTICA INC.: Stull Stull Commences Securities Suit In S.D. NY ---------------------------------------------------------------- Stull, Stull & Brody filed last week a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Selectica, Inc. (NASDAQ:SLTC) common stock between March 10, 2000 and June 4, 2001, inclusive. The complaint alleges that defendants Selectica, Inc., Credit Suisse First Boston Corp., FleetBoston Robertson Stephens, Inc., Rajen Jaswa, Sanjay Mittal and Stephen Bennion violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about March 10, 2000, Selectica commenced an initial public offering of 4,000,000 of its shares of common stock at an offering price of $30.00 per share. In connection therewith, Selectica filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse and Robertson Stephens had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse and Robertson Stephens allocated to those investors material portions of the restricted number of Selectica shares issued in connection with the Selectica IPO; and (ii) Credit Suisse and Robertson Stephens had entered into agreements with customers whereby Credit Suisse and Robertson Stephens agreed to allocate Selectica shares to those customers in the Selectica IPO in exchange for which the customers agreed to purchase additional Selectica shares in the aftermarket at pre-determined prices. For more information, contact: Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. STARNET COMMUNICATIONS: Settles DE Suit For 1.5M Shares, $100,000 Cash ---------------------------------------------------------------------- Starnet Communications International, a subsidiary of World Gaming plc (NASDAQ OTC: WGMGY), a global pioneer in I-gaming technologies, has signed a Memorandum of Understanding to fully settle in all respects all class action lawsuits consolidated in the United States District Court for the District of Delaware that have been pending since late 1999. The settlement inked last Saturday is a major accomplishment that will have a positive impact on the company going forward. "I am glad to have it behind us," said Michael Aymong, CEO of World Gaming. "This settlement is not an admission of guilt or wrongdoing. It's about continuing our efforts to significantly grow the business and dramatically increase shareholder value." The Memorandum of Understanding was reached with Co-Lead Counsel for the plaintiffs and Class members. The settlement will see the issuance of 1,050,000 World Gaming shares, with a guaranteed minimum value of $1,050,000, together with payment of costs, not exceeding $50,000, and payment of administrative expenses, not exceeding $50,000. The settlement reflected in the Memorandum of Understanding is subject to formal notification to the class of shareholders and Court approval. "We believe that our ability to reach a share-based settlement is a strong vote of confidence in World Gaming and its current business direction," Aymong said. "We continue to strengthen our leadership position in the industry everyday and the elimination of this issue is one more powerful step forward," he said. SUMMIT OF THE AMERICAS: Quebec City Residents Sue Event Organizers ------------------------------------------------------------------ More than 9,000 Quebec City residents have signed on to a class action lawsuit filed in Quebec Superior Court against the organizers of April's Summit of the Americas, according to a recent Associated Press Report. Security at the Summit meeting, which brought together leaders of 34 nations to discuss trade matters, was promoted by building a fence that ringed part of the city. The fence, and other forms of security implemented, prevented many residents from reaching their homes and inflicted other traumas upon them, according to Daniel Petit, the residents' lawyer. Consequently, the residents who live inside what was the Summit's security perimeter are seeking compensation for their loss of civil rights guaranteed under the Charter of Rights and Freedoms. TELAXIS COMMUNICATIONS: Cauley Geller Files Securities Suit In S.D. NY ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action last week in the United States District Court for the Southern District of New York on behalf of purchasers of Telaxis Communications Corporation (Nasdaq: TLXS) securities during the period between February 1, 2000 and December 6, 2000, inclusive. The complaint charges defendants Telaxis, Credit Suisse First Boston Corporation, John L. Youngblood and Dennis C. Stempel with violations of Sections 11, 12(a) (2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more details, contact: CAULEY GELLER BOWMAN & COATES, LLP through its Client Relations Department: Jackie Addison, Sue Null or Charlie Gastineau by Mail: P.O. Box 25438, Little Rock, AR 72221-5438 by Phone: 1-888-551-9944 (toll free) or by E-mail: info@classlawyer.com TNUVA DAIRY: Israeli Attorney General Asks SC To Group Suits As Class --------------------------------------------------------------------- Israel's Attorney General Elyakim Rubinstein told Israel's Supreme Court that a lawsuit filed against dairy giant Tnuva should be accepted as a class action because of the number of consumers affected when the dairy added silicon to its long-life milk in the mid-1990s, according to a recent report in Israel's daily newspaper Ha'aretz. Responding to the Supreme Court's request for his opinion, the attorney general told the court that the consumers, as a class, should be compensated. He emphasized, however, that the Court should be the one to set the amount. The lawsuit was filed by the Israel Consumer Council and alleges that Tnuva put silicon into its 1-liter and half-liter cartons of one percent long-life milk between January 1994 and September 1995. Although the Health Ministry does not have any conclusive proof that silicon is a health risk, a possible long-term risk cannot be ruled out, especially when the milk is being consumed in large quantities. In March 1996, Tnuva Dairy confessed that it had added silicon to the milk and was convicted of not meeting official standards and misleading advertising. The Tel Aviv Distrtict Court fined the dairy NIS 28,000, the maximum amount set out under law. TOBACCO LITIGATION: Ohio Suit Seeks Free Annual Test On Smokers --------------------------------------------------------------- A landmark class action lawsuit aimed at mandating cigarette makers to provide free, annual medical tests for healthy smokers is moving forward in Ohio County Circuit Court, according to a recent report in the Charleston Gazette. Judge Arthur M. Recht recently heard arguments concerning the medical monitoring phase of the trial. The lawsuit covers people who have smoked the equivalent of a pack a day for five years but who have not become sick. If this lawsuit turns out to be successful, the cigarette makers would be forced to provide tests that the smokers say could lead to lifesaving early detection of lung diseases. The tobacco companies argue that the tests are experimental and unproven. The first attempt to try the case ended in a mistrial early this year, when witnesses referred to addiction and nicotine. Both words had been banned from testimony because the tobacco companies claimed they raised issues of individual behavior and reasons for smoking compromising the cohesion of the class. Judge Recht later ruled that the smokers' lawyers may argue that addiction increases their risk of disease, but individual reasons for smoking are irrelevant in what is essentially a product liability case. This ruling allows lawyers for about 250,000 W4est Virginians to argue that addiction is caused by the manufacturers and increases the health risks to any smoker, not a particular smoker. TYSON FOODS: Schiffren & Barroway Files Action In DE Securities Suit -------------------------------------------------------------------- Schiffrin & Barroway, LLP filed a class action lawsuit last week in the United States District Court for the District of Delaware on behalf of all sellers of the common stock of IBP, Inc. (NYSE: IBP) from March 29, 2001 through and including June 15, 2001. The complaint charges Tyson Foods, Inc., Don Tyson (the Company's founder and controlling stockholder), John Tyson (the Company's Chief Executive Officer) and Les R. Baledge (the Company's Executive Vice President and General Counsel) with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that on March 29, 2001, Tyson announced it would terminate a proposed merger between Tyson and IBP because Tyson purportedly relied upon misleading information furnished by IBP concerning an SEC comment letter and the financial results at an IBP subsidiary in determining to enter into the Merger Agreement. It was not until June 15, 2001, when, in an action brought by IBP shareholders, In re IBP, Inc. Shareholders Litigation, Consolidated Civil Action No. 18373 (Del. Ch., June 15, 2001), the Court concluded that Tyson's decision to withdraw from the Merger had nothing to do with the SEC comment letter or the problems at IBP's subsidiary. For additional information, contact: Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com UNDERWRITERS LITIGATION: Milberg Weiss Begins Securities Suit In NY ------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit on behalf of purchasers of the securities of Expedia, Inc. (NASDAQ: EXPE) between November 9, 1999 and December 6, 2000, inclusive. The action, captioned Wacaser v. Goldman Sachs & Company et al., 01 Civ. 5727, is pending in the United States District Court for the Southern District of New York against defendants Goldman Sachs & Co., Morgan Stanley & Co., Incorporated, BancBoston Robertson Stephens, Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about November 9, 1999, Expedia commenced an initial public offering of 5,200,000 of its shares of common stock at an offering price of $14 per share. In connection therewith, Expedia filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Expedia shares issued in connection with the Expedia IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Expedia shares to those customers in the Expedia IPO in exchange for which the customers agreed to purchase additional Expedia shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. For more information, contact: Milberg Weiss Bershad Hynes & Lerach LLP through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 by E-mail: expediacase@milbergNY.com or visit the firm's Website: http://www.milberg.com UNDERWRITERS LITIGATION: Milberg Weiss Sues Intersil In S.D. New York --------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit on behalf of purchasers of the securities of Intersil Holding Corporation (NASDAQ: ISIL) between February 25, 2000 and December 6, 2000, inclusive. The action, captioned Susan Smith v. Credit Suisse First Boston Corp. et al., 01 CV 5745, is pending in the United States District Court for the Southern District of New York against defendants Credit Suisse First Boston Corporation, Salomon Smith Barney, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and FleetBoston Roberston Stephens. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about February 25, 2000, Intersil commenced an initial public offering of 20,000,000 of its shares of common stock at an offering price of $25 per share. In connection therewith, Intersil filed a registration statement, which incorporated a prospectus, with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Intersil shares issued in connection with the Intersil IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Intersil shares to those customers in the Intersil IPO in exchange for which the customers agreed to purchase additional Intersil shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. For additional information, contact: Milberg Weiss Bershad Hynes & Lerach LLP, New York through Steven G. Schulman or Samuel H. Rudman by Phone: 800/320-5081 or E-mail: valueamericacase@milbergny.com or visit the firm's Website: http://www.milberg.com VITAMINS LITIGATION: Foreign Vitamin Makers Settle Antitrust Suits ------------------------------------------------------------------ Circuit Court Judge Charles King of Kanawha County, West Virginia, has given preliminary approval of a settlement involving antitrust lawsuits filed by at least 21 states, as well as numerous pending private class action lawsuits, all alleging price-fixing by six foreign vitamin companies, according to a recent Associated Press report. West Virginia will receive approximately $1.8 million from the settlement, according to the state's attorney general, Darrell McGraw, Jr. Settlements from each lawsuit must be approved by the appropriate state courts. The defendant vitamin companies involved are Hoffmann-LaRoche of Switzerland, BASF AG of Germany, Aventis Animal Nutrition, S.A. (formerly Rhone-Poulenc SA) of France, and Daiichi Pharmaceutical Co., Eisai Co. and Takeda Chemical Industries Ltd., all of Japan. The states alleged the six companies met secretly to conspire to fix prices of their products from 1989 to 1998 and that consumers were indirectly paying higher prices for fortified products that contained the vitamins. Under the terms of the settlement agreement, consumers and businesses in the states, the District of Columbia and Puerto Rico will receive more than $225 million in compensation, said Attorney General McGraw. Of this money, $107 million has been set aside for businesses to collect damages, he said. "The vitamin cartel caused more economic damage to consumers in the United States than any other illegal cartel in history," said Mr. McGraw. "This settlement has sent a strong message to companies contemplating violation of antitrust laws," he said. WEIRTON STEEL: Officials Sued For Insider Trading Manipulations --------------------------------------------------------------- A class-action lawsuit was filed against the Weirton Steel Corp., alleging that company officials took advantage of insider knowledge when they exercised stock options that resulted in millions of dollars in profits, according to a recent Associated Press report appearing in the Charleston Gazette. Lee Roy Edwards of Weirton filed the class action lawsuit on behalf of himself and "other similarly situated individuals." The lawsuit, which was prepared by Weirton attorney Ed Zagula, charges that company officials denied such profits to participants in the company's Employees Stock Ownership Plans by delaying the release of approximately 1,090,367 shares of common stock and 94,662 shares of preferred stock earned during the first quarter of 2000. Stocks earned through the ESOP were held more than eight weeks, until June 2, 2000, when they are normally released within four to five weeks. That delay, alleges the lawsuit, permitted top officials to exercise stock options on May 3, 2000 and to purchase the allowed shares at $3.88 each and to immediately sell them for $6.69 each. These circumstances caused the stock to rapidly lose value, driving prices down to $4.00 per share after June 3, 2000. Mr. Zagula commented that hundreds of people have been affected by "insiders dumping shares." It was not immediately clear, however, which Weirton Steel officials were named in the lawsuit, which seeks punitive damages. No hearing date has been set. ********* 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. 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