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/raid1/www/Hosts/bankrupt/CAR_Public/010727.mbx C L A S S A C T I O N R E P O R T E R Friday, July 27 2001, Vol. 3, No. 146 Headlines CALDERA SYSTEMS: Company Officials Sued For Misleading Statements DEERFIELD CITY: Lawsuit Over Township Board Legislations Dropped DEKALB COUNTY: Plaintiffs File Contempt Petition For Settlement Breach EXODUS COMMUNICATIONS: Lionel Glancy Files Securities Suit In N.D. CA KANA SOFTWARE: Milberg Weiss Commences Securities Suit In S.D. NY NETWORK PLUS: Bernstein Liebhard Begins Securities Suit In S.D. NY PEROT SYSTEMS: Cauley Geller Commences Securities Suit In S.D New York PRUDENTIAL INSURANCE: Sued In New Jersey Over Demutualization Plan SCIENTIFIC-ATLANTA: Cauley Geller Files N.D. Georgia Securities Suit STRATOS LIGHTWAVE: Cauley Geller Begins Securities Suit In S.D. NY TELSTRA CORPORATION: To Repay, Charge Half-Rates To ADSL Customers TUT SYSTEMS: Weiss & Yourman Sues Over Revenue Misrepresentations UNDERWRITERS LITIGATION: Milberg Weiss Sues StarMedia IPO Underwriters UNDERWRITERS LITIGATION: Milberg Weiss Sues Microtune IPO Underwriters UNDERWRITERS LITIGATION: Milberg Weiss Files S.D. NY Securities Suit VIANT CORPORATION: Milberg Weiss Files Securities Suit In S.D. NY ********* CALDERA SYSTEMS: Company Officials Sued For Misleading Statements ----------------------------------------------------------------- Caldera Systems Inc. revealed recently that three complaints have been filed in New York earlier this month against its officials for fraud in its initial public offering. According to a report furnished to the Securities and Exchange Commission, the plaintiffs filed the suit alleging that the prospectus for the IPO contained several misrepresentations. The plaintiffs are seeking class certifications and unspecified amount for damages suffered by the class members. As reported earlier in the Class Action Reporter, the law firm of Milberg Weiss Bershad Hynes & Lerach LLP has filed a suit in relation to the above matter. DEERFIELD CITY: Lawsuit Over Township Board Legislations Dropped ---------------------------------------------------------------- A circuit court has thrown out a purported class action suit filed against the City of Deerfield, Michigan for lack of merit, mLive.com reported. Lapeer Circuit Court Judge Nick Holowka threw out the suit after ruling that the two questioned legislations created by the city council were in fact legal. Two residents of the city brought the suit to challenge the legislations of the Deerfield Township Board as regard the city's millage rate and collection of fire assessment. But the judge ruled that the Board did not violate State laws when it changed the township's millage rate from 1.442 mills to 1.4755 mills during its first meeting last year following the general election. Holowka also ruled that it was within the city authority to levy the fire district special assessments even though a previous board discontinued such a levy. DEKALB COUNTY: Plaintiffs File Contempt Petition For Settlement Breach ---------------------------------------------------------------------- Lawyers for inmates at the DeKalb County Jail in Georgia will file a motion to hold the county in contempt for reneging on its obligation in the class action settlement inked last March. The Atlanta Journal-Constitution reported Wednesday that a recent report by a court-appointed doctor to monitor the conditions in the jail would be used as the basis for the contempt motion. The inmates sued the county in 1998 for poor health and medical care in the 3,000-inmate jail. The report prepared by Dr. Robert Greifinger indicates that not much has changed inside the jail since the settlement agreement was signed last March 26. The deal obliged the county to provide routine testing of inmates for sexually transmitted and communicable diseases, give prescribed medications to inmates in a timely manner, provide 24-hour emergency care and have regular weekday medical attention. The Greifinger report contained the following: (i) hundreds of requests for medical treatment had not been responded to, (ii) new inmates were not being properly screened as they entered the facility, and (iii) the county's interim health care vendor, the Healing Touch, ordered staff to "clean up" medication records in anticipation of the monitor's visit. "The consequences of these conditions do not solely lie on the inmates. These poor practices endanger staff working in the facility, and ultimately the community to which the staff and inmates return to," Greifinger said. EXODUS COMMUNICATIONS: Lionel Glancy Files Securities Suit In N.D. CA --------------------------------------------------------------------- Lionel Z. Glancy commenced a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class consisting of all persons who purchased securities of Exodus Communications, Inc. (Nasdaq: EXDS) between March 30, 2001 and June 20, 2001, inclusive. The Complaint charges Exodus and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Exodus's revenues and earnings caused Exodus's stock price to become artificially inflated, inflicting enormous damages on investors. For more details, contact: Lionel Z. Glancy or Michael Goldberg by Phone: 1-310-201-9150 or 1-888-773-9224 or by E-mail: info@glancylaw.com KANA SOFTWARE: Milberg Weiss Commences Securities Suit In S.D. NY ----------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed this week a class action lawsuit on behalf of purchasers of the securities of Kana Software, Inc. (NASDAQ: KANA) between September 21, 1999 and December 6, 2000, inclusive. The action alleges the following as defendants: (i) Kana, (ii) Goldman Sachs & Co., (iii) Lehman Brothers Inc., (iv) Michael J. McCloskey, (v) Joseph D. McCarthy and (vi) Mark S. Gainey, The suit is pending in the United States District Court, Southern District of New York. 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. For additional details, contact: Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: kanacase@milbergNY.com or visit the firm's Website: www.milberg.com NETWORK PLUS: Bernstein Liebhard Begins Securities Suit In S.D. NY ------------------------------------------------------------------ Bernstein Liebhard & Lifshitz, LLP filed a securities class action lawsuit on behalf all persons who acquired Network Plus Corp. (NASDAQ: NPLS) securities between June 30, 1999 and December 6, 2000. The case is pending in the United States District Court for the Southern District of New York. Named as defendants in the complaint are Network Plus and the following executive officers and directors of Network Plus: (i) Robert T. Hale, Jr., (ii) James J. Crowley, and (iii) George Alex. The complaint also names as defendants the following underwriters of Network Plus' initial public offering: Goldman Sachs & Co., Bear Stearns & Co., Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman Brothers, Inc., and Salomon Smith Barney, Inc. The complaint charges defendants with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 for issuing a Registration Statement and Prospectus that contained materially false and misleading information and failed to disclose material information. For additional details, contact: Linda Flood, Director of Shareholder Relations by Mail: 10 East 40th Street, New York, New York 10016 by Phone: (800) 217-1522 or 212-779-1414 or by E-mail: NPLS@bernlieb.com PEROT SYSTEMS: Cauley Geller Commences Securities Suit In S.D New York ---------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Perot Systems Corporation (NYSE: PER) securities during the period between February 2, 1999 and December 6, 2000, inclusive. The complaint charges the following defendants 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: (i) Perot Systems, (ii) Morgan Stanley & Co. Inc., (iii) Merrill Lynch, Pierce Fenner & Smith Inc., (iv) Warburg Dillon Read, LLC, (v) Bear Stearns & Co., Inc., (vi) Ross Perot and (vii) Terry Ashwill 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 PRUDENTIAL INSURANCE: Sued In New Jersey Over Demutualization Plan ------------------------------------------------------------------ U.S. No.1 life insurer Prudential Insurance Co. of America was recently sued in New Jersey Superior Court over its demutualization plans, the Wall Street Journal reported. The class action suit was filed by policyholders seeking to block or modify the company plan. They say the company is violating some policyholder rights in seeking to grant shares to policyholders who do not have an ownership interest in the company, the report said. The proposed share allocations apply to holders of variable life insurance sold through Prudential's Pruco Life unit -- a move that would water down the value of shares distributed to other policyholders. A spokesman for the company said it will "defend against the lawsuit vigorously," adding that the plan to convert to a publicly traded company was fair and equitable to all policyholders. SCIENTIFIC-ATLANTA: Cauley Geller Files N.D. Georgia Securities Suit -------------------------------------------------------------------- Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Northern District of Georgia on behalf of purchasers of Scientific-Atlanta, Incorporated (NYSE: SFA) securities during the period between April 19, 2001 and July 19, 2001, inclusive. The complaint charges Scientific-Atlanta and certain of its officers and directors with violating Sections 10(b) and 20(a) 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 STRATOS LIGHTWAVE: Cauley Geller Begins Securities Suit In S.D. NY ------------------------------------------------------------------ Cauley Geller Bowman & Coates, LLP filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Stratos Lightwave, Inc. (Nasdaq: STLW) securities during the period between June 27, 2000 and December 6, 2000, inclusive. The complaint charges the following defendants 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: (i) Stratos Lightwave, (ii) Lehman Brothers Inc., (iii) U.S. Bancorp Piper Jaffray Inc., (iv) CIBC World Markets, Inc., (v) Robert W. Baird & Co., Inc., (vi) James W. McGinley and (vii) David A. Slack For additional 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 E-mail: info@classlawyer.com TELSTRA CORPORATION: To Repay, Charge Half-Rates To ADSL Customers ------------------------------------------------------------------ In a gesture it claims is not related to an impending class action suit, Telstra Corporation announced recently it would repay tens of thousands of users for its faltering ADSL Internet Service, the Age.com reported. According to the Company, customers will be refunded for their July bills and will only be charged half-rates for August and September. More than 300 subscribers of the Company's high-speed Internet service are contemplating a class suit, the Class Action Reporter disclosed last week. Lawyer Michael King who will represent the would-be plaintiffs said many customers have complained the ADSL service has been unavailable for more than 300 hours during the past two months. King said he had been "swamped" with messages from disappointed customers, receiving up to 50 calls each day. The lawyer is not impressed with the recent gesture of the Company, promising to go ahead with the planned suit even if some subscribers decide to back out. He said the offer "gives nothing to businesses that have lost money." "Internet cafes are a classic example. When they are down, they can't charge money," he said. TUT SYSTEMS: Weiss & Yourman Sues Over Revenue Misrepresentations ----------------------------------------------------------------- Weiss & Yourman filed a class action complaint on behalf of all persons who acquired Tut Systems, Inc. (Nasdaq: TUTS) securities between July 20, 2000 and January 31, 2001, inclusive. The complaint charges that during the Class Period, defendants misrepresented the revenues that Tut was deriving from its sales to small competitive local exchange carriers. The Complaint alleges that as a result of the defendants' conduct plaintiff and other members of the class suffered hundreds of millions of damages. For more details, contact: Behram V. Parekh by Phone: (800) 437-7918 by E-mail: info@wyca.com or visit the firm's Website: www.wyca.com UNDERWRITERS LITIGATION: Milberg Weiss Sues StarMedia IPO Underwriters ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed Wednesday a class action lawsuit on behalf of purchasers of the securities of StarMedia Network, Inc. (NASDAQ: STRM) between May 25, 1999 and December 6, 2000, inclusive. The action is pending in the United States District Court for the Southern District of New York against defendants Goldman Sachs & Co., BancBoston Robertson Stephens, Inc., Salomon Smith Barney, Inc. and Morgan Stanley & Co., Incorporated. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For further information, contact: Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119- 0165 by Phone: (800) 320-5081 by E-mail: StarMediacase@milbergNY.com or visit the firm's Website: www.milberg.com UNDERWRITERS LITIGATION: Milberg Weiss Sues Microtune IPO Underwriters ---------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed a class action lawsuit on behalf of purchasers of the securities of Microtune, Inc. (NASDAQ: TUNE) between August 4, 2000 and December 6, 2000, inclusive. The action is pending in the United States District Court for the Southern District of New York against defendants Goldman, Sachs & Co., Bear, Stearns & Co. Inc., and Salomon Smith Barney Inc. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more details, contact: Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: microtunecase@milbergNY.com or visit the firm's Website: www.milberg.com UNDERWRITERS LITIGATION: Milberg Weiss Files S.D. NY Securities Suit -------------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed Wednesday a class action lawsuit on behalf of purchasers of the securities of iBeam Broadcasting Corporation (NASDAQ: IBEM) between May 17, 2000 and December 6, 2000, inclusive. The action is pending in the United States District Court for the Southern District of New York against defendants Morgan Stanley & Co. Incorporated, Bear, Stearns & Co. Inc., and FleetBoston Robertson Stephens Inc. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. For more information, contact: Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 by Phone: (800) 320-5081 by E-mail: ibeamcase@milbergNY.com or visit the firm's Website: www.milberg.com VIANT CORPORATION: Milberg Weiss Files Securities Suit In S.D. NY ----------------------------------------------------------------- Milberg Weiss Bershad Hynes & Lerach LLP filed Wednesday a class action lawsuit on behalf of purchasers of the securities of Viant Corporation (NASDAQ: VIAN) between June 17, 1999 and December 6, 2000, inclusive. The action alleges the following as defendants: (i) Viant, (ii) Goldman Sachs & Co., (iii) Credit Suisse First Boston Corporation, (iv) Lehman Brothers Inc., (v) Salomon Smith Barney Inc., (vi) Robert L. Gett, and (vii) M. Dwayne Nesmith The suit is pending in the United States District Court, Southern District of New York. 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. For additional information, contact: Steven G. Schulman or Samuel H. Rudman by Mail: One Pennsylvania Plaza, 49th fl. New York, NY, 10119- 0165 by Phone: (800) 320-5081 by E-mail: viantcase@milbergNY.com or visit the firm's Website: www.milberg.com ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., 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. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *